Can my co-signer sell my car?

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If you’ve asked a co-signer to help you qualify for a car loan, they don’t have any ownership rights in the vehicle, which means they can’t legally sell it.

Co-signers and your property rights

While a co-signer helps you qualify for a car loan by “lending” you their good credit rating, they don’t get their name on the title, which means they don’t have any ownership interest in it. the vehicle. The co-signer may have an obligation to the loan and the lender may ask them to pay, but they cannot take possession of your car and sell it.

To legitimately sell a vehicle, the registered owner must cede title to the buyer. If your co-signer somehow collects your car and tries to sell it to someone else, the buyer cannot register the vehicle in their name.

It is a form of jumping titlethat is, when you sell a car to someone else without registering it in your name first. If the co-signer takes your vehicle, doesn’t get their name on the title, and tries to sell it to someone else, it’s a felony in the 50 states.

If your co-signer is trying to sell your car, calmly inform them that they have no ownership rights in the vehicle and cannot sell it. If the tensions grow strong between you and your co-signer, it may be time to take them out of the car loan.

Withdrawal of a co-signer from an auto loan

There are two ways to withdraw a co-signer from an auto loan: sell the vehicle or refinance the loan.

If you can sell the car or trade it in for an amount equal to or greater than your loan balance, you can pay off your loan. Once you’ve paid off the loan, you and the co-signer are both off the hook for the balance. You also don’t need permission from the co-signer to sell the vehicle, but it’s probably a good idea to let them know you’re selling the car since it’s tied to the loan.

If you want to keep the vehicle, then consider refinancing. Refinancing is replacing your auto loan with another, and you can remove a co-signer this way if you can qualify. When you first took out the car loan and had a co-signer, it was probably because your credit was not at its best. But to refinance, many lenders who offer it don’t require that your credit score be perfect, just that it improves. If you’ve made all of your payments on time and managed your credit, chances are your credit rating has improved and you are eligible for refinancing.

Besides removing the co-signer from the loan, you can also get a lower interest rate. Or, you can try to qualify for a longer loan term to lower your monthly payment. Lowering your interest rate and extending the term of your loan may reduce your car loan payment, but simply extending the term of your loan means paying more interest charges, so be aware of the extra cost if you go this route.

If you want to get started in the refinancing process, Click here for more information and refinancing resources.

Auto loans for bad credit

Many borrowers who bring co-signers do so because they are struggling to meet credit score requirements. But not everyone has someone who can help them, or they just want to take out a car loan on their own. For bad credit borrowers who need a car loan without a co-signer, risk financing could be the answer.

Subprime lenders don’t stop at your credit score, while traditional auto lenders place great importance on your credit rating. These lenders are registered with special financial dealers and they often work with borrowers in difficult credit situations such as bankruptcy, no credit, and those with tarnished credit histories.

Here has Auto Express Credit, we match borrowers with dealerships in their area who are equipped to help borrowers in need of vehicle financing. Start the search for a dealer by filling out our auto loan application form, and we will look for one in your area without obligation.

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