If a co-signer removes their name from a car loan, it does not necessarily mean that the car will be repossessed. However, it does mean that the primary borrower will now be solely responsible for making the loan payments. If the primary borrower is unable to make the payments on their own, the lender may have the right to repossess the car.
There are several ways to remove a co-signer from a car loan, including a cosigner release or refinancing the loan. A cosigner release allows the co-signer to be released from their obligation after a certain number of consecutive on-time payments have been made. Alternatively, the primary borrower can refinance the loan in their own name, which would remove the co-signer from the loan altogether.
It's important to note that if a co-signer removes their name from a car loan, it does not necessarily mean that they are no longer legally responsible for the debt. If the primary borrower defaults on the loan, the co-signer may still be held liable for the balance. Therefore, it's important for both parties to carefully consider the risks and benefits of co-signing a loan before entering into the agreement.