To remove a cosigner from a car loan and title, you have to handle two separate things in the right order: get them off the loan first, then update the title with your state motor vehicle agency. The loan is your contract with the lender. The title is the ownership record held by the state. Because the lender holds a lien on the title until the financing is resolved, no one at a DMV counter can strike a name off while that lien is still in place.
Deal With the Loan Before the Title
A cosigner’s name usually sits in two places: on the loan agreement and on the vehicle title. The lender’s lien has to be cleared or transferred before the state will issue a new title in your name only. That gives you three practical routes on the loan side: a cosigner release, a refinance, or paying the loan off (including by selling the car).
Ask the Lender About a Cosigner Release
Some auto loan agreements include a cosigner release option. If yours does, this is the least disruptive path because your existing loan stays in place and only the cosigner’s obligation ends. Not every lender offers it, so check your loan documents or call and ask.
Where release programs exist, lenders typically want to see 12 to 24 months of on-time payments before they’ll consider the request. Expect a fresh credit check and proof of income showing you can carry the payment alone. Accounts with that lender usually need to be current, with no late payments in the past year. The lender is re-evaluating you without the cosigner’s credit backing you up, and approval isn’t guaranteed even when you meet the stated benchmarks.
Refinance the Loan in Your Name Only
When a release isn’t on the table, refinancing is the most common alternative. You take out a new auto loan in your name, use it to pay off the joint loan, and the cosigner is done. The old loan closes and the lien moves to the new lender.
To qualify, your credit and income have to meet the new lender’s standards on their own. Scores in the 700s tend to get the best rates, though many lenders will work with borrowers at 600 and above. Shorter loan terms generally carry lower rates.
Watch the costs. Some lenders charge origination, application, or document fees; others charge none. Your state may require you to re-register the vehicle or pay a title transfer fee when the lien holder changes. Most auto loans don’t carry prepayment penalties, but read your current loan terms before you assume that. Some states prohibit prepayment penalties on certain loans; others leave it to the contract.
Pay Off the Loan or Sell the Car
If you have the cash, paying off the balance is the cleanest ending. Ask your lender for a payoff quote, which is the exact amount needed to close the loan on a given date. Once it’s paid, the lender releases the lien and both you and the cosigner are done with the financing.
Selling the car works the same way. If the sale price covers the loan balance, the proceeds go to the lender and both parties are released. If you owe more than the car is worth, you’d have to cover the difference at closing. This route only makes sense if you’re willing to part with the vehicle.
Check How the Names Read on the Title
Before you go anywhere near the motor vehicle office, look at how the names appear on your current title. The small word between them changes what you can do.
If the title reads “Owner A and Owner B,” both people must sign to transfer or modify the title. Neither can act alone, so you’ll need the cosigner’s cooperation even after the loan is settled.
If it reads “Owner A or Owner B,” either person can sign independently. That gives you flexibility if the cosigner is hard to reach. Exact rules vary by state, but this general principle holds across most jurisdictions.
Update the Title at Your State Motor Vehicle Agency
Once the loan is resolved, go to your state’s DMV or motor vehicle agency to get a new title in your name only. Forms vary by state, but you’ll generally need to bring:
- The current title, signed by the cosigner in the appropriate section (unless you have a court order or other legal document authorizing the change without their signature).
- A lien release from the paid-off lender, either signed on the title itself or provided as a separate letter on lender letterhead showing the owner’s name and the vehicle year, make, and VIN.
- A title application on your state’s standard form.
- An odometer disclosure. Federal law requires a written mileage disclosure whenever vehicle ownership transfers, so most states will ask for the reading on the title or on a separate form.1Office of the Law Revision Counsel. 49 U.S. Code 32705 – Disclosure Requirements on Transfer of Motor Vehicles
- Payment for title fees, which vary by state and generally range from about $10 to over $100.
Some states require signatures to be notarized, particularly when a lien is involved or when one party isn’t present. Call your local office ahead of time and confirm exactly what they need. Showing up short a document is a wasted trip.
When the Cosigner Won’t Sign
If the title has “and” between the names and the cosigner refuses to sign, the DMV counter can’t help you. You need legal intervention.
In a divorce, the decree can serve as the key document. If the court awards the vehicle to you, a certified copy of the decree that identifies the car can substitute for the other party’s signature in most states. The decree must be certified by the clerk of court. If it doesn’t include the full vehicle description, you may need a certified amendment specifying year, make, model, and VIN.
Outside of divorce, you may have to file a civil lawsuit asking the court to order the title transferred. These cases are typically filed in county or district court. The order needs to identify the vehicle by make, model, and VIN, and declare who owns it. An order that omits the VIN may not be accepted by the motor vehicle agency. This route costs money and takes time, but it is sometimes the only way forward when a cosigner has disappeared or simply refuses.
When the Cosigner Has Died
If your cosigner passes away, the loan doesn’t vanish. You remain responsible for the payments and you still need to update the title. Contact the lender with a certified copy of the death certificate. The lender will use it to update their records and release the deceased cosigner from the loan, assuming you can show you can continue making payments.
For the title change, bring the death certificate to the motor vehicle agency along with the current title and a title application. If the title listed both names with “or,” the surviving owner can usually transfer without additional probate documents. If the title used “and,” some states may require probate paperwork on top of the death certificate. Your DMV can confirm what applies in your state.
Update Insurance and Watch the Credit Reporting
When the title changes to your name only, your auto insurance policy should match. If the cosigner was listed on the policy, call your insurer to remove them and confirm your coverage stays intact. In some cases, you may need a new policy rather than an amendment. Handle this quickly, because a mismatch between the title and the policy can create problems if you file a claim.
On credit, the auto loan appears on both your report and the cosigner’s. Once the cosigner is removed through refinancing or a release, the original loan’s history stays on both reports, but new activity under the refinanced loan appears only on yours. Getting off the loan can also improve the cosigner’s debt-to-income ratio, which helps them qualify for their own borrowing later. Federal consumer guidance also notes that a cosigner can be held responsible for the full loan balance if the primary borrower falls behind, so removing them ends real financial exposure on their side.2Federal Trade Commission. Cosigning a Loan FAQs