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Cosigner on auto loan

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Cosigner on auto loan

Hello, just looking for some advice...

 

I made a stupid mistake and co-signed for an auto loan for a friend.

 

Now, halfway through the term my friend is having trouble making the payments and I got hit with a 30 day late before I found out. The account has been made current. Is there any hope of getting the lender to get rid of the 30 day late?

 

My name is not on the title of the truck. If my friend is unable to or stops paying, do I have any recourse to take possession of the vehicle?

 

Thanks in advance!

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Re: Cosigner on auto loan


js84 wrote:

Hello, just looking for some advice...

 

I made a stupid mistake and co-signed for an auto loan for a friend.

 

Now, halfway through the term my friend is having trouble making the payments and I got hit with a 30 day late before I found out. The account has been made current. Is there any hope of getting the lender to get rid of the 30 day late?

 

My name is not on the title of the truck. If my friend is unable to or stops paying, do I have any recourse to take possession of the vehicle?

 

Thanks in advance!


Lots of people get into this bad situation. A cosigner has obligations, not rights. As cosigner you're basically taking on risk that a professional lender wouldn't take. And that's all you're taking on is the risk.

 

Bottom line: The only thing you can do if your friend unable to pay or stops paying is: make the payments yourself. That's what you signed up to do, guarantee the payments. But you still wont be entitled to any ownership of the car. 

 

At least you now know its a mistake to cosign for almost anybody. Try not to let it ruin the friendship, I think that's more important.

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Moderator Emeritus

Re: Cosigner on auto loan

Offer to buy the car from the friend for the balance owed... You can do a refinance and purchase of the vehicle in your name only. You can also offer to take over payments in exchange for him signing over the title to you.   Otherwise, you'll have to make payments and/or be responsible for a deficiency balance if the car gets repo-ed

 

Unfortunately, with your name not being on the title, you have no recourse.  This is why co-signing is a bad idea, and especially since your name is not on the car


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