Couple finances $35,000 vehicle together with good credit, then woman calls dealership asking to do something that’s ‘impossible’

A couple bought a brand-new 2022 Volkswagen Atlas Cross Sport together in 2022. Less than two months later, they broke up and left the car abandoned outside the dealership. A car salesman named Mike shared this story as a warning about the risks of co-signing an auto loan with a romantic partner.

The couple had good credit scores, so buying the $35,000 vehicle was easy. According to Motor1.com, they added guaranteed asset protection coverage and a warranty to the purchase. After paying $3,500 down, they got a 72-month loan with about 9% APR, which gave them a monthly payment of $565.

But their relationship didn’t last as long as the loan term. Less than two months after buying the car, the woman called Mike. She asked if he could remove her ex-boyfriend’s name from the vehicle’s title. Mike had to tell her this wasn’t possible. He explained on his TikTok video that you cannot remove someone’s name from a title while the car is still being financed.

Removing a co-signer from a car title requires refinancing the entire loan

The only way to do it is through a new financial transaction. “Okay that’s impossible, unless you go to your local bank,” Mike told the woman. He said she would need to go to the bank with her ex and refinance the loan in only her name. She refused to do that and said she would just return the car to the dealership.

Mike explained they couldn’t take the car back either. She would need to call her bank and arrange a voluntary surrender. Despite this, she brought the car back anyway and left it sitting in front of the dealership. Some dealerships have strict parking rules for certain vehicles to avoid situations like this.

After a few days, Mike called her to pick up the car. She said no. He then called the ex-boyfriend, who also refused to take the car or remove his name from the title. This decision would badly damage both of their credit scores.

Mike warned the man that he was setting himself up for a repossession on his credit report. The ex still wouldn’t take the car. Mike called the woman one last time and tried to convince her to keep making payments or tell the bank she wanted to give up the vehicle. Her answer stayed the same: “I want the car but I want his name off it.” Since that wasn’t possible, she did nothing and let the vehicle get repossessed, ruining both of their credit histories.

Mike’s advice is clear: think carefully before signing a car loan with a partner. “If you’re gonna go on a car loan with somebody, make sure that 72-month loan, you’re gonna be with them for 72 months. That’s all I’m saying. You cannot take somebody’s name off of the title when you’re financing it, unless you go refinance it,” he said.

Financial experts also warn against co-signing loans. Co-signing can hurt your credit score and damage your relationship. If the other person can’t make payments, you become fully responsible for the entire debt. Car buyers sometimes return their new vehicles over missing features, but returning a financed car with a co-signer is far more complicated.

The Consumer Financial Protection Bureau says co-signing an auto loan is a lose-lose situation. Co-signers don’t always have the same rights to the vehicle as the primary borrower. However, you are equally responsible for paying back the loan. If the car gets repossessed, both people on the loan get a hit to their credit.