Paying off your auto financing is a big milestone, but it doesn’t always mean you're the sole legal owner of the vehicle. If you had a cosigner when you financed your car, you may be wondering how to remove the cosigner from the car title after payoff, leaving the sole legal possession of the vehicle to you.

The process is straightforward, but how you proceed depends on whether your cosigner simply helped you with the financing or is also listed on the car’s title as a co-owner. Below, we’ll take you through how to determine the difference, and what to do next to ensure the title is in your name alone.

Cosigner vs. co-owner: What’s the difference?

It’s important to distinguish between a cosigner and a co-owner. A cosigner agrees to be responsible for repaying the financing should the primary borrower default. This commitment doesn’t automatically give them ownership rights to the vehicle, though. In most cases, cosigners aren’t listed on the title. A co-owner, on the other hand, is listed on the title and legally shares ownership of the car.

Start by checking your title document. If your name is the only one that appears or you financed with no cosigner, you don’t need to take any action. However, if the cosigner is listed as a co-owner on the title, you’ll need to go through a formal title transfer process to remove their name.

How to transfer the title to sole ownership

After confirming your cosigner is also a co-owner, follow these steps to have the title updated in your name only:

1. Confirm the title details and state requirements

Look at how the names are on the title. If the names are joined by “and,” both parties must sign to release ownership. If the names are joined by “or,” you should generally secure the signature of the party being removed to relinquish their interest legally. This action prevents future disputes and ensures the state fully recognizes the transfer. Always confirm the signature requirements for removing a co-owner with your state's DMV or tax office.

2. Obtain proof of your financing payoff

Request a lien release from your lender. This document verifies that the financing has been paid in full and that the lender no longer holds any interest in the vehicle. You’ll need this when updating the title.

3. Collect the required documents

You’ll need several to complete the title transfer:

• The original title showing both owners

• A valid photo ID

• The lien release from your lender

• A completed title application form (varies by state)

4. Sign and seek power of attorney (if needed)

If both parties are available, they can sign the title together to release the co-owner’s interest. If the co-owner isn’t available, you may be able to use a limited power of attorney form. This document often requires notarization, so double-check your state’s rules. In cases where the co-owner refuses or is unable to sign, a court order may be required.

5. Submit a new title application and pay any fees

Bring your documents to the local DMV or county tax office and apply for a new title. Most states charge a title transfer fee, typically ranging between $28 and $33. In some locations, you may also be eligible to complete the transfer electronically.

6. Receive your new title

Once your application is processed, you’ll receive a new title listing you as the sole legal owner. Processing times can vary based on whether your state issues digital or paper titles. It can take just a few days up to six weeks.

Does your current vehicle no longer fit your lifestyle?

If you’re looking to trade up vehicle-wise once you have an updated title, Credit Acceptance can assist you in a couple of ways. First, we can match you with any of the 15,000+ dealerships in our nationwide network through our dealer finder.

Additionally, we can help you get pre-qualified for auto financing through our website. This will help you understand how much you may be approved for, in terms of a maximum pre-qualified monthly payment.