03-18-2009 09:25 AM
03-18-2009 01:03 PM
Unless the co's name is on the title/registration, they are simply along for the risk of the loan and have no claim to the car/loan unless you quit making payments. And then they are on the hook for the amount owing, and still cannot claim/control the car.
A finance department at a dealership will structure the co on the deal in the way that makes the most sense to get the deal done.
Your co can demand to be on the title/registration just so they can take the vehicle if you quit making payments.
As I have said if they do not do this they are on the hook for payments and have little say on the disposition of the vehicle.
And this is for the length of the loan. you can make perfect payments for 36 months on a 5 year loan, get unelployed and all of a sudden people are calling the co wanting them to pay- and trashing their credit.
This is how many people get "burned" being a co and why many people will not be a co.
03-19-2009 08:47 AM
03-20-2009 05:53 PM
I need a car and my credit is not so good. I currently have a score of 533 Equifax. I have someone with very good credit who would co-sign for me. If I were to list that person first on the application would I run into problems ? Could the payments be made using my checking account for instant payment. Would I run into problems registering the car ? or do both signer and co signer have the same responsiblity and ownership of the vehicle.? Thanks
Who ever has the better credit between the two is the primary and the the co-signer. The names can be different on the forms but from the banks perspective they give the loan to the one with better credit. Also it really does not matter, because both parties are equally responsible for the loan.
As far as ownership of the vehicle, as long as one of the parties is on the loan that's all the finance company cares about. If I was cosigning for anyone I would make sure my name was on both the title and the registration, for reasons mentioned above.
03-21-2009 06:17 PM
Sometimes it will depend on what state you are in also as well as the individual lender. Here in California most lenders require the person who will be driving the vehicle to be first .... regardless of score.
If the credit is bad enough then score will not matter for the Co-signer .. you very well can have a 800+ cosigner and a 490 primary buyer and the bank will not want anything to do with that loan based on the primary buyers credit.
This is especially true in the case of first time buyers with derogatory credit trying to buy a car with their parent or other cosigner ...most credit unions will make the first time buyer go on line one since they will be driving and the cosigner on line two .... too many coll or derog for the primary buyer and no car loan ...
One thing that will make a big difference in approval is the amount being borrowed ... the amount of down payment...and the length of term .... shorter the term the easier to get the loan as long as the payment is affordable.
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