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Owning a car means eventually having to pay for car repairs. The costs of repairing a car can range dramatically, depending on such factors as the type of car you own, the specific repair job that needs to be done, and the cost of labor in your area. According to AAA, the average cost of common repairs is $792 a year, but the prices can run significantly higher than that. In fact, you might be looking at a bill for well into the thousands of dollars.

Read on to learn about the most expensive car repairs and how to pay for them.

Which Cars Cost the Most to Repair and Maintain?

Some cars cost more to maintain than others. They may have parts that are expensive to replace and require specialized mechanics to work on them.

According to a recent study by Motor1.com, Porsche and BMW are the most expensive car brands to repair.

Recommended: Luxury Cars With the Lowest and Highest Maintenance Costs

The Most Expensive Types of Car Repairs

What are the most expensive car repairs? Below are the repairs that are typically the highest. The price you’ll pay for the most expensive car repairs can vary greatly. The final bill depends on such things as the make and model of the car, the type of mechanic required to do the job, and the cost of labor in your area.

Recommended: Car Make and Model Explained

The Engine

You might expect engine repair to be a significant cost and it is. If several parts of the engine need to be repaired, you may need a whole new engine. An engine replacement cost could start at $4,000 and go much higher. Checking and changing the oil regularly may help maintain the life of your engine.

The Head Gasket

The head gasket seals your car’s engine cylinders so that coolant and oil don’t leak. If the head gasket isn’t functioning properly, the engine can overheat, resulting in serious damage to the car. A head gasket repair cost can be more than $2,000. Check the seal on your head gasket on a regular basis to make sure it’s in good shape, and take it in for service if you notice any issues.

The Transmission

The transmission moves power from the car’s engine to its wheels, so repairing it is critical if problems arise. A transmission repair can cost between $400 and $1,400. However, the transmission replacement cost can range from about $2,000 to $7,000, making it one of the most expensive repairs on a car

To help keep your transmission healthy, change the transmission fluid as directed by your car’s manufacturer. If you have a car with a manual transmission, don’t ride the clutch too hard or too often when shifting.

The Brake Line

The brake lines are what make your brake pedal operate properly to bring the car to a stop. Over time, brake lines can rust and even disintegrate. If you need to replace them, the brake line replacements cost is about $1,000. To help prevent the brake lines from rusting, you can coat them with an anti-rusting agent.

The Camshaft

The camshaft opens and closes the engine valves so that air and fuel can go in and out of your car’s combustion chambers. Typically, this part rarely needs to be replaced, but if dirt buildup causes the camshaft to break down, repairing the camshaft can cost at least $3,000. Taking your car in for regular service and oil changes can help keep the camshaft operating the way it should.

The Catalytic Converter

A catalytic converter is part of your car’s emission system, and helps lower the amount of harmful substances released into the air. A catalytic converter cost can vary widely, ranging from $200 to $2,000, depending on the vehicle’s make, model, and year.

The Suspension

A car’s suspension stabilizes and controls the car, helping it drive over bumps and dips in the road. Rust or hydrogen can weaken the suspension springs, causing them to collapse. Repairing a car’s suspension costs approximately $1,000 to $5,000.

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Airbags

Once these crucial pieces of safety equipment are deployed in a crash, they need to be replaced. Replacing the airbags in your car will cost between $1,000 and $6,000, depending on the severity of the crash.

Air Conditioner Compressor

This is the heart of your car’s air conditioning system. It pressurizes and pumps refrigerant into the condenser to help cool the car. If your air conditioner compressor breaks, it typically costs around $800 to $1,500 to repair it.

Hybrid Car Battery

Hybrid car batteries power the car’s electric motor, which propels it at lower speeds and allows it to use less fuel. A hybrid car battery pack lasts, on average, 80,000 to 100,000 miles. Replacing hybrid car batteries cost between $2,000 and $8,000. This is another one of the most expensive repairs on a car.

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Fuel Pump

This crucial part pumps fuel from the gas tank to the engine to power your car. Repairing a fuel pump can cost around $1,000.

Alternator

If your car’s alternator breaks, your car’s electrical system will give out. Alternators generally need to be replaced every 50,000 to 100,000 miles. A new one costs approximately $350 to $900.

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5 Ways to Cover Car Repair and Replacement Costs

Now that you know what the most expensive car repairs are, you might be wondering how to pay for them. There are a few different payment options you can consider for covering car repair and replacement costs. These include:

Cash

You could take cash from your savings or checking account to pay for car repairs. You might even have an emergency fund set up to cover sudden and unexpected expenses like this. And, of course, you won’t have to pay any interest if you use cash for the repairs. However, if the repair is expensive, it could deplete your savings reserves, which isn’t ideal.

Credit Card

You might opt to use a credit card as an easy and convenient way to pay for a car repair. Some credit cards have added benefits like credit card rewards and the ability to earn points on your payment. However, credit cards often have high interest rates, so it’s smart to pay off the balance as quickly as you can.

Using a Personal Loan

You can take out a personal loan to pay for your car repair. Personal loans can be used for a variety of purposes, including car repairs. Once you’re approved for a car repair personal loan, you’ll receive a lump sum of money, typically within several days, and you’ll repay the loan over time with interest.

The higher your credit score, the lower the personal loan interest rate you may qualify for.

Auto Loan Refinancing

Getting an auto refinance loan is another way to pay for expensive car repairs. As long as you have enough equity in your car, an auto refinance replaces your existing loan with a new, possibly larger, loan. You can use the additional money to pay for the car repairs. Plus, you might be able to get a lower interest rate and more favorable terms. Again, a higher credit score may help you qualify for a lower interest rate.

However, be aware that lower monthly payments might extend the length of the loan, which could cost you more in interest overall. You can use a car loan refinancing calculator to help determine if auto loan refinancing makes sense for your situation.

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The Takeaway

The most expensive car repairs can cost thousands of dollars and put a major dent in your budget. Getting your car serviced regularly, and maintaining it as directed by the manufacturer, may help keep it running smoothly.

When the need for repairs does crop up, there are a number of different methods you can use to help cover the cost, including cash savings, a credit card, a personal loan, and refinancing your current auto loan.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

What is the hardest repair on a car?

Repairing or replacing an engine might be one of the toughest repairs on a car. However, it depends on the type of car, the mechanic, and the level of repair needed.

What car parts fail the most?

The car parts that fail the most often include the brakes, shock absorbers, timing belts, alternator, battery, and water pump. These parts tend to get worn out over time.

What is the longest thing to fix on a car?

The engine and the transmission typically take the longest to fix on a car. Replacing these components can take a mechanic approximately 10 to 12 hours of work and may require your car to be in the shop for a couple of days or longer.

Photo credit: iStock/Kunakorn Rassadornyindee

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOALR-Q325-098

If you fail to make your auto loan payments, your lender can repossess your car. While repossession can feel pretty final, you may still have responsibilities to your lender. In fact, you may still owe them money in the form of a deficiency balance.

Keep reading to learn more on auto loan deficiency balances and what your obligation is to repay the lender.

How Does a Deficiency Balance Work?

When you take out an auto loan, your lender will use your vehicle as collateral. If you fail to pay off the loan, they can repossess the vehicle and sell it to recoup their losses. Unfortunately, selling the vehicle doesn’t always cover the balance of the loan, and you may be on the hook for paying the difference, otherwise known as the deficiency balance on an auto loan.

Repossession of Car

Your lender holds on to possession of your vehicle title until you have paid off your auto loan, at which point the title is turned over to you. In the meantime, your lender allows you to use the vehicle as long as you’re making on-time payments. If you are delinquent on your loan, your lender can begin taking steps to repossess your vehicle — though repossession generally doesn’t take place until a loan has been in default for 90 days.

Lenders will usually let you know when you’re in default and that your car is at risk of being seized. However, they can repossess vehicles without notice, and they don’t need to have a court order to do so.

Repossession Sale

Once a lender has repossessed your car, it’s unlikely you’ll be able to recover it, though some states allow a certain period of time during which you can reinstate your car loan. This usually involves paying your lender’s repossession expenses on top of past-due loan amounts.

If your state doesn’t offer this option or you choose not to take advantage of it, your lender will sell your former car to recover the money you owe, usually at auction. By law, lenders must put a “commercially reasonable” amount of effort into the sale of the vehicle. However, those attending the sale are often car dealers whose incentives lie in keeping prices as low as possible. That means a car could easily sell for much less than it’s worth.

Once a sale goes through, your lender subtracts the sale price from the balance of the loan. They’ll then add the costs of repossessing, storing, and selling the vehicle. The resulting amount is the deficiency.

Generally speaking, your lender must send you a notice that the car will be sold, including the date, time, and place of the sale. They must also let you know if you’ll be liable for any deficiency after the sale and provide contact information you can use to find out how much you owe.

Recommended: Can You Refinance Your Car Loan After Repossession?

What to Do If You Owe A Deficiency Balance

Some states place restrictions on whether or not you’ll need to pay a deficiency. For example, balances under a certain dollar amount may be exempt. Other states have no such rules.

In some cases, you may be able to negotiate with the lender to modify the deficiency balance. Otherwise, you’re required to pay it in full.

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What Happens If You Can’t Pay A Deficiency Balance?

If you can’t pay a deficiency balance in full, contact your lender immediately. You may be able to work out either a settlement with them or a repayment plan:

•  Settlements: Settlements are often a smaller percentage of what you owe. Generally, you’ll need to be able to prove some financial hardship, such as being laid off, disabled, or unemployed. Settlements, when accepted by the lender, typically must be paid in full.

•  Repayment plans: These may allow you to pay off the debt in regular, more manageable increments.

If you refuse to pay off the balance, lenders may sell the debt to a collections agency or they may file a lawsuit against you. This might result in a lien or wage garnishment.

Should you get sued, you may have legal recourse. You may not have to pay off a deficiency balance if you live solely off federal benefits, for instance. You also may defend yourself against a suit if you can prove that the lender did not make a commercially reasonable effort to sell your former vehicle.

In some extreme cases — especially if this isn’t the only debt you’re struggling to pay — you may consider filing for bankruptcy. This may allow you to discharge unsecured debts, including deficiency balances.

Recommended: Can You Refinance a Car Loan With Bad Credit?

How Long Do You Have to Pay a Deficiency Balance?

If you owe a deficiency balance, your lender will typically contact you immediately and let you know the date by which the balance must be paid.

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Does a Deficiency Balance Affect Your Credit?

A deficiency balance does not bode well for your credit score. In fact, you can face repercussions at multiple points along the way.

For one, the circumstances leading up to the delinquency balance will typically harm your score. That’s because your track record of paying your debts on time is the biggest factor in calculating your credit score. As such, late payments will have a negative impact on your score.

Your score will take another hit when you default on the auto loan, and again when the car is repossessed. A repossession will stay on your credit score for seven years. A voluntary repossession of the vehicle may have a less severe impact.

If you refuse to pay your balance and the debt is sent to a collections agency, your credit score can take another negative hit. The collections account will also stay on your credit report for seven years.

Recommended: Which Credit Bureau Is Used Most for Auto Loans?

Avoiding a Deficiency Balance

The best way to avoid a deficiency balance on an auto loan is to be sure to make your auto loan payments on time and in full. If you’re having trouble making payments, talk to your lender immediately — they may be able to help make the debt more manageable.

Other ways to manage debt include debt consolidation loans or refinancing your auto loan.

The Takeaway

If you default on your auto loan and your lender takes back your car, a deficiency balance is an unfortunate probability you may have to contend with. A deficiency balance is the difference between the sale price of the car after repossession and what you still owe on an auto loan. Except in rare circumstances, you’ll likely have to pay off this balance right away. Doing so can help protect your credit score from further damage.

To avoid this ramification of defaulting on your loans, it’s important to stay on top of managing your debt and do everything you can to make on-time payments.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

How long does a deficiency balance last?

An auto loan deficiency balance lasts until it is fully paid or resolved, as lenders can pursue collection indefinitely in many states. However, some states impose a statute of limitations, typically ranging from three to 10 years, after which the lender may no longer legally enforce collection actions.

What happens after you’ve paid a deficiency balance?

Once you’ve paid off your deficiency balance, you’re under no further obligation with your lender.

How do you negotiate a deficiency balance?

Call or write to your lender and ask them to settle for a lower amount that you can reasonably repay. Be prepared to prove financial hardship if your lender asks. If you’re uncomfortable negotiating the debt yourself, you may want to engage an experienced attorney.

Photo credit: iStock/Pla2na

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOALR-Q325-097

Your car’s radiator helps keep your engine cool and functioning. Overheating can damage an engine, which can eventually lead to engine failure. If you notice your radiator is failing, it’s critical to the health of your vehicle that you repair or replace it as soon as possible.

The average cost to replace a car radiator can range from $750 to $1,850, depending on car make and model. Radiator repair is often far cheaper, costing $250 to $750, on average.

Here’s a closer look at what a car radiator does, the factors that affect the cost of repairing or replacing a radiator, and how to pay for the fix.

Car Radiator Repair and Replacement Cost Breakdown

The cost of radiator repair or replacement will depend on the cost of parts and the cost of labor.

On average, auto mechanics in the U.S. charge $75 to $130 per hour, though rates will vary depending on where you live. A mechanic in a big city will likely charge more than one on the outskirts of town to help cover the increased cost of things like real estate, utilities, and labor.

An experienced mechanic should be able to replace a radiator in two to three hours. On the high end, you could expect labor to replace a radiator to cost nearly $400. It may take much less time to have a repair done, such as replacing a radiator hose.

The rest of the cost of repair or replacement comes from the cost of parts. Replacing an entire radiator is more expensive than replacing worn out parts.

The cost of parts is determined by the make and model of your car. For example, the price of parts for work on a relatively common vehicle, like a Toyota Corolla, will likely be much less than on high-performance luxury vehicles.

The type of part that’s required by your vehicle will also have an impact on price. Single core radiators are the most common radiators used in vehicles, but double- and triple-core radiators are more expensive if your vehicle calls for them.

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Getting an Estimate

When getting an estimate for a replacement or a repair, start by looking up average cost in the U.S. This will serve as a baseline that you can compare with estimates you receive.

Next, consider online resources, such as Kelley Blue Book’s Repair Pricing tool, that allow you to input the year, make, and model of your car and the repair you need. It will then tell you the price range you can expect in your area.

Finally, contact a handful of local mechanics, let them know the make and model of your vehicle, and ask them for a quote. Look for reputable mechanics by seeking recommendations from friends and family, and look up local shops with the Better Business Bureau to see if there are any complaints or shops you should avoid.

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What Does a Radiator Do?

When your engine is running, the temperature inside the cylinder can reach more than 260 degrees Fahrenheit. With temperatures so high, the engine must be cooled so that it doesn’t overheat.

This is where the radiator comes in. The engine in your car has what’s known as a cooling jacket. Radiator fluid circulates through the cooling jacket and is pumped to the radiator where it is cooled down before circulating again.

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Why Do Radiators Fail?

Radiators fail for a variety of reasons. For example, there could be corrosion or buildup that blocks the cooling system and eventually causes the radiator to malfunction. Drivers can work to avoid this by flushing their radiator system and coolant every year.

In addition, radiator seals can become brittle over time and crack, which can cause coolant to leak. Or, faulty temperature sensors can cause the radiator itself to overheat, which can potentially cause failure.

Signs of a Bad Radiator

Look out for the following signs that your radiator is in need of repair or replacement:

•  An overheating engine. This may be caused by low coolant or a blockage in the radiator system.

•  Coolant leaking on the ground. This may be a sign of a cracked or punctured component of the radiator system.

•  A sweet smell. A sickly sweet smell coming from the front of your car may be coming from leaking radiator fluid.

•  Dashboard warning. There may be a light on your dashboard that warns of low coolant.

•  Sludgy buildup. The coolant in your radiator should be bright in color. If it’s rust-colored or thick like a milkshake, it may be a sign that your radiator is failing.

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Can I Drive With a Bad Radiator?

Your radiator is what cools your engine. If your engine overheats, other important parts of your engine, such as the cylinder, can get damaged and eventually there could be catastrophic engine failure. As a result, it’s not safe to drive your car with a failing radiator and you should have the problem taken care of immediately.

Recommended: Car Make and Model Explained

How to Cover the Costs of a Radiator Replacement

With car radiator replacement costing nearly $2,000 in some cases, it can take some strategizing to figure out how to cover costs. You may consider the following options:

Pay With Cash

Cash is the least expensive way to cover the cost of an auto repair. On average, radiators need to be replaced once every 80,000 miles. While there’s no guarantee that your radiator won’t fail before then, as the 80,000-mile marker approaches, you may want to set money aside in a savings account to cover future radiator repairs.

If you don’t have cash on hand, you may turn instead to credit.

Use a Credit Card

Credit cards can be used to finance the cost of a new radiator. However, if you carry a balance from month to month, you’ll owe interest, and interest rates can be very high — up to 20% or more. What’s more, if you continue to carry a balance, you’ll start to owe interest on your interest, which can send you deeper into debt.

As a result, it’s best to only rely on credit cards when you know you’ll be able to pay them off at the end of each billing cycle.

Take Out a Loan

If you know you won’t be able to pay your credit card bill off right away, a personal loan for car repairs may be a cheaper alternative, offering lower interest rates. Personal loans allow you to borrow a lump sum of money that can be used for most purposes, including auto repair. You agree to repay that loan in monthly installments with interest.

Refinance Your Auto Loan

You may also consider refinancing your auto loan. When you refinance your loan, you pay off your old loan with a new loan, preferably one with a lower interest rate, which can save you money over the life of the loan. You can use these savings to help fund auto repair.

A car loan refinancing calculator can help you determine how much you might save.

The Takeaway

If you think something may be wrong with your radiator, it’s best to get it handled as soon as possible. Signs of a faulty radiator include your car overheating, a sweet smell coming from the hood, leaking coolant, and the warning light on your dashboard turning on.

With the cost of radiator replacements being close to $2,000, this is not an expense to be taken lightly. If you can pay cash, that will be the best option. If not, you can consider using a credit card, taking out a personal loan, or refinancing your current car loan to a lower interest rate or opting for a cash-out refinance, where you get cash out of the loan and can use that money to pay for car repairs.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

Can I continue driving my car with a damaged radiator?

Driving with a damaged radiator should be avoided as it can cause your car to overheat. Have it fixed as soon as possible to avoid further damage to your engine.

Are there different types of radiators for different car models?

Yes, there are different types of radiators for different car models. For example, single-core radiators are most common, but some cars will use double- or triple-core radiators.

Can a car radiator be repaired, or does it need to be replaced entirely?

In some cases, damaged parts of a car radiator, such as radiator hose, may be replaced without the need to replace the whole component.

How long does it take to replace a car radiator?

Replacing a car radiator may be completed by a skilled mechanic in two to three hours.

Photo credit: iStock/Evgenii Palitsyn

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOALR-Q325-096

You can remove a cosigner from your car loan. Whether you’re in a better financial situation or you simply want the cosigner off of the loan, it is possible to refinance your vehicle in your own name as long as you meet the qualifying criteria on your own.

Keep reading to learn more on what a cosigner is and how to remove a cosigner from your auto loan.

What Is a Cosigner?

A cosigner is someone who signs a loan with you and will be held responsible for paying it off if you stop making the payments.

When taking out a loan, lenders will look at your credit and financial history to determine the level of risk you present. If your credit score is low, it will likely seem to them that there’s a high risk that you might not be able to pay back the loan. In that case, potential lenders may turn you down for a car loan if you’re applying on your own.

However, a cosigner can help you qualify for the loan. They usually are someone who has better credit than you and who agrees to be responsible if you’re not able to make a payment. This lowers the risk to the lender that your loan won’t be paid off.

Recommended: Can a Cosigner Become the Primary Borrower?

Who Can Be a Cosigner?

Many times, younger adults in need of a car loan may ask their parents to be their cosigners. Someone married might ask his or her spouse. You could even ask a good friend to cosign your loan.

Whoever you choose for your cosigner, that person must have good credit and stable income. Bear in mind that your potential lender will likely run a credit check on both of you as it makes its decision.

Cosigners and Credit

When you’re considering getting a cosigner, it’s important to be aware of how cosigning your loan will impact that person’s credit.

When a cosigner cosigns a loan with you, the loan appears on that person’s credit report. If you aren’t able to pay the loan and your cosigner doesn’t, either, both of your credit scores may drop. Also, having your loan on record may impact your cosigner’s ability to get other financing.

However, if all goes well and you pay back your loan on time every month, your cosigner could potentially build their credit as a result. Paying a loan on time each month could positively impact both of your credit histories.

What’s the Difference Between a Cosigner and Co-Borrower?

Before trying to remove a cosigner for your auto loan, you need to make sure that the person was actually a cosigner on the loan and not a co-borrower, as there are distinct differences between the two.

Cosigners Are Responsible Only for the Loan

When you ask a friend or family member to cosign your loan, you are still the primary borrower. You’re going to use the funding and you’re going to pay back that loan. Your cosigner is more of an “in case of emergency” person. If you aren’t able to make a payment one month, the responsibility would fall on your cosigner to cover it.

Co-Borrowers Are Responsible for the Loan and the Car

A co-borrower, on the other hand, is just as responsible as you are for paying the loan back. As with a cosigner, you’ll both probably be expected to undergo a credit check when applying for the loan.

But the main difference here is that a co-borrower has just as much right to ownership of the vehicle you’ve financed as you do. The title will be in both your names and you both, in theory, can use the vehicle.

If you’re trying to figure out how to remove a cosigner from your car loan, you may want to start by finding out if you have a cosigner or a co-borrower. There may be different processes for removing a co-borrower.

Can You Remove a Cosigner from a Car Loan?

Yes, you can remove a cosigner from a car loan.

There are a few ways to go about doing this. Your course of action may depend on why you want to remove your cosigner and whether the cosigner is willing to work with you or not. If you’re divorcing your cosigner, for example, it may be challenging to get your spouse to sign paperwork if things are contentious. Depending on the situation, plan accordingly for the time the process is likely to take.

Recommended: Car Lease Acquisition Fee

How to Get a Cosigner Off a Car Loan

If you have a strained relationship with your cosigner, you may want to emphasize how being taken off your car loan will help that person. He or she won’t be tied to you financially and may find it easier to take out new financing. Plus, your ex-cosigner won’t be responsible for your car payment any more.

Here are a few different methods for getting your cosigner off your car loan.

Refinance the Car Loan to Get the Cosigner Off

If you initially took on a cosigner because you didn’t qualify for a good rate on your own, your situation may have changed. Perhaps now you could get a car loan on your own with no problem.

In this case, refinancing your car could be the easiest and most beneficial way to remove your cosigner. You may even end up paying less in interest on a refinancing loan than on your original loan.

Just be aware of the cost of refinancing a car. Your current lender may charge you an early termination fee, and your old and new lenders might charge transaction fees. If you owe more than the car is worth, it may be challenging to find a lender at all.

If you’ve already refinanced your car, you may be wondering how many times you can refinance your car. There’s technically no limit, but it’s a good idea to be smart about it. Each time you refinance, there should be a financial benefit for you.

See If You Have a Cosigner Release Option

Another option is to talk to your lender and ask whether you can remove a cosigner from your car loan, as some lenders offer a cosigner car loan removal option.

This option agrees to release the cosigner if certain criteria have been met. For instance, a cosigner might be released after a certain number of payments have been made on time or a portion of the debt has been paid off. If this is an option, your cosigner may have to sign a form to exercise it.

Pay It Off

Not everyone can afford to do this, but if it’s possible, you could also pay off the loan. This will release your cosigner from responsibility on the loan, plus you’ll have the added benefit of being done with your monthly car loan payments.

Recommended: Guide to Voluntary Repossession of a Car

The Takeaway

When you’re ready to remove a cosigner from your car loan, go about it strategically. Talk to your cosigner about the removal and decide which option seems like the most practical choice. You may be able to choose between such paths as executing a cosigner release, paying off the loan, or refinancing.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

What is the role of a cosigner?

If you don’t have good credit, having a cosigner on your auto loan may help you qualify for loans you wouldn’t otherwise qualify for. Your cosigner is responsible for paying the loan if you cannot.

Can you refinance a car to remove the cosigner?

Yes. By refinancing to a loan taken out under just your name, you remove the cosigner from the previous loan.

Can a cosigner be removed from a car loan?

Yes. A cosigner can be removed from a car loan by refinancing, paying off the loan, or taking advantage of a cosigner release option.

What is a cosigner release option?

Some auto lenders have options in their loans that will release a cosigner if certain conditions are met. Those might include a certain number of payments being made on time, for example.

Photo credit: iStock/anyaberkut

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Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re buying or selling a motorcycle, the first step you’ll need to take is to determine its value. If you’re the seller, you’ll need to know how much you can charge. If you’re the buyer, you’ll need to know whether or not you’re getting a fair deal.

There are also other reasons why you may need to know the value of a motorcycle, such as when you’re putting through an insurance claim or refinancing.

Read on to learn how to determine what a bike is worth, including the various factors that can have an impact on value.

Why Is Knowing the Value of a Motorcycle Value Important?

Anyone who is looking to either buy or sell a motorcycle can benefit from knowing a motorcycle’s “blue book value,” which is often sourced from Kelley Blue Book, or KBB, data (more on that below). However, there are other scenarios where knowing the value of a bike can be important.

One is if you’re thinking about refinancing your motorcycle loan. Similar to refinancing a car loan, refinancing a motorcycle loan involves taking out a new loan — ideally one with better terms and/or a lower interest rate — and using it to pay off your old loan. Your loan will be secured by the motorcycle itself, so your lender will need to know its value before offering a loan.

Knowing the value of your bike can also be important for insurance purposes. If your motorcycle is damaged in an accident or gets stolen, knowing what its market value was before the incident can help you negotiate with your insurance company, especially if you believe the payout they are offering is low.

If your bike is totaled, for example, you can compare what your insurance company claims the market value for your motorcycle is to its blue book value. If the valuation you find is more than what your insurance company is offering you, you can bring this to their attention.

How the Value of Your Motorcycle is Determined

There are a number of factors that affect the value of a motorcycle. These include:

•  Make and model: Some motorcycle makes and models are more valuable than others due to their reputation for quality, safety, and aesthetics.

•  Age: Just like cars, the value of motorcycles depreciates over time. In the first year of ownership, a motorcycle can lose up to 20%-30% of its value. The depreciation rate slows down after that, but the bike will continue to lose its value as the years go on.

•  Condition: A motorcycle that’s in good working order will generally fetch a higher price than one that needs work. For this reason, it can be a good idea to carry out all regular maintenance on the bike to help preserve its value. If you’re thinking about putting your bike up for sale, you may want to consider replacing components, such as worn out brake pads, that are in need of repair.

•  Mileage: The more a motorcycle has been driven, generally the lower its value. However, mileage isn’t as big a factor as it is with cars. Road conditions and an owner’s riding style generally have a larger effect on a bike’s value than the number of miles clocked on the odometer.

•  Extras: Bells and whistles, like cruise control or an engine guard, can raise the value of a motorcycle.

Recommended: What Is the Average Credit Score to Buy a Car?

How to Find Motorcycle Value

There are several ways you can appraise your motorcycle. One is to hire an independent appraiser who will examine your bike and assess its value based on the criteria above, as well as the local market.

Another option is to take your bike to a motorcycle dealership. They’ll often appraise it based on trade-in value — or, in other words, how much they’re willing to buy it for. This type of appraisal is likely to be free, but keep in mind that the trade-in value of a motorcycle is generally lower than its fair market value. The reason is that the dealer needs to leave some room for profit when they re-sell the motorcycle to a customer (at market value).

Finally, you can also do a self-appraisal. This is free and simply involves looking up the bike’s book value online. Just keep in mind that different sites use different methodologies, which can result in somewhat different book values.

Recommended: Ways to Increase the Value of Your Car

Motorcycle Blue Book Value

A motorcycle’s blue book value is sometimes a generic term for its market value. The term originated from the Kelley Blue Book (KBB), which is one of the most well-known pricing guides not only for cars but also for used motorcycles.

A motorcycle’s blue book value may simply refer to how much it is worth in the private market, and there are two main sites where you can find this out. Here’s a look at how each one works.

Kelley Blue Book

As you might guess, since the term blue book value originated with Kelley Blue Book, that resource can be a great place to start. To get the blue book value of a motorcycle using Kelley Blue Book’s site, you simply need to provide the bike’s make, model, and year. You are then asked to select either “Trade-In Value” or “Typical Listing Price.”

The former is the amount you might expect to get when trading in a used motorcycle in good condition with all of its original standard equipment. The latter is what a dealer would likely ask you to pay if you were looking to buy a used motorcycle in good or better condition.

Additional equipment for a motorcycle, such as an engine guard, may also be included as a separate value.

KBB also gives you the option of checking a used motorcycle’s accident history by entering its vehicle identification number (VIN) into a box.

To come up with its values, KBB uses data from auctions, dealer sales reports, and dealer surveys, as well as motorcycle listings and sales transactions nationwide. They also take into account current market and economic conditions.

Recommended: What Are the Steps to Financing a Motorcyle?

NADA

The other major motorcycle pricing resource is the National Automobile Dealers Association, or NADA. Similar to the KBB site, you’ll need to choose a year, model, and make. You’ll also be asked for your ZIP code and any special options.

The site offers four prices on motorcycles:

•  The manufacturer’s suggested retail price (which includes only standard equipment)

•  The suggested list price (the manufacturer’s highest suggested list price when the motorcycle was new)

•  The low retail price (for a vehicle that may show extensive wear and tear)

•  The average retail price (for a vehicle that is clean and without obvious defects and average mileage)

NADA uses data from more than 1.5 million vehicle transactions a month to help determine values, including wholesale, retail, and auction sales. It also considers asking prices posted on classified listing sites and Autotrader.

Motorcycle Value and Refinancing

You may decide that you want to refinance your motorcycle loan if the original financing was at a high interest rate, you’ve built your credit score, or you’re looking to make your monthly payments more manageable.

The way motorcycle loans work is that a better credit score can translate into a lower interest rate. Another benefit of refinancing is that you may be able to lower your monthly payments by extending your loan term. It’s important to note, however, that a longer loan term may mean you pay more in interest overall.

Lenders will look at the value of your motorcycle before they offer you a loan to refinance. They’ll want to be sure that, should you default on the loan, they’ll be able to recoup their losses by seizing and selling your vehicle.

If your motorcycle is worth less than the value of your previous loan, a situation commonly known as being “underwater” or “upside down” on your loan, you may have trouble finding a lender willing to offer you a refinance.

Recommended: Using an Auto Loan Refinance Calculator

The Takeaway

You can find the fair market value of a bike on your own by looking up the year, make, and model online at Kelley Blue Book or NADA. Or, you can turn to a professional appraiser or dealer. Understanding the value of a motorcycle is important if you plan to buy or sell a bike, make an insurance claim, or refinance your motorcycle loan.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.

FAQ

How can you find the value of your motorcycle?

You can find the market value of your motorcycle through online resources such as Kelley Blue Book and NADA. Other options include hiring a professional appraiser and having it valued by a dealer for a possible trade-in.

Do you need to know the value of your motorcycle?

It’s useful to know the value of your motorcycle even if you don’t plan on selling it anytime soon. It may come in handy, for example, if you ever have to put through an insurance claim or should you decide you want to refinance your motorcycle loan.

Who determines the value of your motorcycle?

The value of a motorcycle is ultimately determined by what someone is willing to pay for it on the open market. Factors that impact a bike’s value include the popularity of its make and model, along with its age and condition.

Photo credit: iStock/bymuratdeniz

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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