Yes, you can remove a cosigner from a car lease, but it is not a simple or guaranteed process. The most common and often the only way to do it is through a lease assumption, where the primary lessee applies to take over the lease solely in their name. This requires the leasing company's approval, which involves a hard credit check to ensure you can afford the payments alone. If your income and credit score have improved significantly since the lease began, your chances of approval are higher. Alternatively, you could refinance the lease into a solo auto loan, but this is complex and often not cost-effective.
The leasing company has no obligation to remove a cosigner because the cosigner's signature legally shares the risk. They agreed to the terms for the entire lease term. Simply making a request without a formal process will not work.
Before proceeding, contact your leasing company directly to inquire about their specific lease assumption policy. Be prepared for potential fees, which can range from a few hundred dollars. If approval is denied, the only other option is to wait until the lease ends or explore a lease transfer to a third party, but that also requires the lessor's consent.
| Consideration | Key Details | Potential Outcome |
|---|
| Lease Assumption | Formal application and solo credit check required by the lender. | Approval if the primary lessee's credit and income are sufficient. |
| Refinancing | Paying off the lease with a new auto loan in your name only. | Often expensive due to new loan terms and possible early termination fees. |
| Lender's Policy | Varies by company (e.g., Honda Financial Services, Toyota Financial Services). | Some lenders explicitly prohibit cosigner removal; always check your contract. |
| Associated Fees | Administration or processing fees for the assumption. | Typically $200-$500, but can be higher. |
| Credit Impact | A hard inquiry will temporarily lower your credit score. | Short-term dip, but successful assumption can build credit long-term. |
