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It makes financial sense for anyone cosigning an auto loan to require her name also be added to the title as co-owner of the vehicle. Otherwise, if the primary buyer defaults on the loan the cosigner may be stuck making payments on the vehicle to keep a repossession off of her credit report, even though she has no right to take and use the vehicle shes paying for. For the lender to release the cosigner from the loan, the loan must be paid off first.
Pay your auto loan off in full. Once the loan is paid off, the lender will you the clean title to your car. Or, if you are refinancing because you no longer need a cosigner, the lender will issue new loan paperwork with only your name listed as the party responsible for payment.
Sign the title and ask the cosigner to sign the title. This only is necessary if the title lists your name and the cosigners with an and between the names. If the title lists your names with an or between them, only one of you needs to sign the title before the DMV will reissue the title in your name alone.
Verify with your states DMV what documentation they require to reissue the title, in addition to the signed title or new loan agreement. Additional documentation may include multiple forms of identification or proof of loan payment. You also may have to fill out a form, available at the DMV office or online, requesting your title be reissued.
Take the signed title to the DMV. Or, if you have refinanced the vehicle and have a new loan agreement, take the new loan agreement to the DMV. Take any other paperwork required for reissuing the title as well.
Present either the signed title or the new loan agreement, as well as all other required documents, and ask for a new title that lists only your name as owner. Youll be required to pay a fee and may have the choice between a paper title or an electronic title.
Items you will need
- Title (with any required co-signer or lienholder signatures)
- Method of payment for any fees
- Proof of ownership (bill of sale in your name, tax payments)
- Proof of insurance
- Results of smog, emissions, or other vehicle tests required by your state
- Driver license
