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I am the primary signer for a car loan consigned and being paid now by my son. Is there any way I can get my name removed from this loan?

  • 4
    This is getting close to a legal question and the answer will depend on the exact wording of the loan agreement. Even if your son is paying off the loan because you cannot afford to do so, you are still legally responsible for payment of the loan and you still presumably have title to the car. So, the only way to get your name off the loan would seem to require the cooperation of your son in taking over the loan and the title of the car (effectively buying the car from you and taking out a new loan in his name only for the balance still due on your loan.) – Dilip Sarwate Aug 1 '13 at 22:52
  • Does your son have enough income for the bank to approve the loan based on his income, debts, and credit score alone? – mhoran_psprep Aug 1 '13 at 23:21
  • Pay the loan off. – Pete Becker Sep 21 '14 at 12:50
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I believe that your son will need to get a new loan for the car in his name only and use the proceeds of that loan to pay off the one you co-signed on. The only way that will happen is if he can find a lender willing to loan him the money based on his credit only.

From the current lender's perspective, if your son isn't a good credit risk, then why would they let someone out of the loan who might be able to pay if your son defaults? If he is a good credit risk, then they, or someone else, should be willing to lend to him without you as co-signer.

Also, as Dilip Sarwate mentioned, you might have to do something with the title, depending on whose name it is in.

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The wording of this question is very confusing because "primary signer" would, in ordinary parlance, mean the person borrowing the money and the co-signer (not consigner) would mean the one who is guaranteeing the repayment of the loan: if the borrower does not pay, the co-signer is liable for making the payments.

  • Whose name is on the title of the car?

  • Who borrowed the money to buy the car? Is the loan in your name and your son co-signed the loan to induce the bank to loan you money to purchase the car, or is it the other way around, that your son borrowed the money and you co-signed the loan in order to induce the bank to loan your son the money?

  • If the car title and the loan are in your name, are you defaulting on the loan and so your son is making the loan payments that should have come from you? Or is it that your son borrowed the money to buy the car, his name is on the title, he is making the payments, and you are no longer interested in backing him up in case he defaults and the bank comes after you for the money?

  • Primary, co-signer. It really doesn't matter. If this thing does not get paid both credit scores will get hammered. – Mark Monforti Jul 27 '16 at 19:37

protected by Community Jul 27 '16 at 18:35

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