My grandpa decided to be a co-signer on my used automobile loan, but I guess this means that he is going to be the co-owner also. Is there a way to get it so I am the owner and he is only the co-signer? I guess he wants to make sure that he is not at fault if I get into an accident or to make sure he is not on the insurance policy.
this is very vague and sorry for that.
Related posts:
- What happens to my car loan if my co-signer files bankruptcy?
- threatening to refinance the auto loan but we are both on the loan and title of the car!?
- I am in need of advice. I was the co signer on an automobile loan?
- car finance?
- Can I get an auto loan without a source of income but with a co-signer?
{ 4 comments… read them below or add one }
A co-signer is responsible for the payment if the loan is defaulted on. It is not required for the co-signer to be on the title or on the insurance policy. The co-signer can opt to be on these and become a co-owner to help protect themselves; ie. if the loan is defaulted on they would be able to try and sell the property etc so they wouldn’t be forced to make the payments or negatively impact their credit. The driver is always at fault for the accident so they wouldn’t go after the co-signer; unless they were the one’s driving the vehicle at the time of the accident in which they become liable.
A co-signer is not a co-owner.
Co-signer is guaranteeing that if you fail to payback the loan that he will pay it. He neither owns the car nor required to be on your insurance policy.
The co-signer guarantees the payment of the loan.
He is NOT the co-owner and therefore is NOT responsible for anything except the loan, should you NOT make the payments.
He has no other liability.
The co-signor is not a co-owner. All the co-signor does is guarantees the loan. They make sure the loan will not go into default if the owner stops making the payments. They are not on the insurance and are not responsible for any aspect of the car other than the loan payments if you stop making them.