Question about co-signing for an auto loan?

if i co-sign for a friend for a car loan and he/she makes all payments on time but gets into (1) an accident or (2) god forbid dies...what happens then? and can u refinance after only 6 months to take me off as cosigner?

Question about co-signing for an auto loan?

If your cosigner is involved in an auto accident, in the said vehicle, then the insurance company should handle the repairs. If he/she is injured an unable to make payments, you will be liable to take over payments. You can refinance after 6 months, however you will need to qualify for the new loan and your cosigner will have to sign a power of attorney.

In the event of accidental death, you would assume payments and the possession of the vehicle. Good Luck.

Question about co-signing for an auto loan?

don't do it. don't sign your life away unless its for yourself. not only do you put yourself in uncontrollable risk te debt stands against your credit. if you're friend is old enough to drive then you're friend is old enough to find a way to get the car his/herself.

Question about co-signing for an auto loan?

This is taking on a huge responsibility and could run your credit. If someone needs a cosigner, they usually don't have good credit. Don't sign unless you are able to make the payments if your friend doesn't. Also I would want the car in both names until the loan is paid. You can buy insurance that will pay off a loan if the debtor dies.

Question about co-signing for an auto loan?

I would highly caution you to reconsider co-signing for a friend. It isn't even a good idea to co-sign for a family member. If he/she should default, guess who's credit rating goes down the dumper? Re-think it and explain to your friend that you value his/her friendship more than money, so you won't co-sign for an auto loan. Good luck!

Question about co-signing for an auto loan?

Only co-sign if you KNOW that your friend WILL pay the car off, always keep insurance on the car and you don't have to worry too much about an accident or death cause the insurance company will cover the car for the most part.

Question about co-signing for an auto loan?

For whatever reason they quit paying on the loan you are 100% responsible for the remainder of the balance. No questions asked, as this is the point of co-signing. In order to co-sign you need to be approved as if you were going to pay on the loan. The only recourse you have would be to take your friend to court if they quit paying. I would even think that you would need to take them to court to get the car from their possessions.

Question about co-signing for an auto loan?

If you want to ruin a friendship and your credit rating, then go ahead and co-sign. If not, then DON'T DO IT!!!!

At some point it will come up - if your friend is late on payments it puts a strain on your friendship. Better to just tell your friend you aren't comfortable with it, that you value the relationship to much to risk it over a stupid car loan.

Question about co-signing for an auto loan?

If you co-sign for your friend and one of the two things happens then you are liable for the note. That's why you have to sign your name too. Read the contract carefully and you will find out a lot of new things that you didn't know before. Yes, you can refinance the vehicle after six month and take you name of the loan as long as your friend can find a bank or financial institute to lend him the money. Rates might not be pretty though.

Question about co-signing for an auto loan?

If she gets into an accident that won't hurt your credit. However, make sure she's got HER OWN insurance, and is not piggy-backing on yours. If she dies - you're responsible for the loan. That's the purpose of a co-signer. They agree to take responsibility for payments in the event of death or just plain old flaky-ness.

Refinancing after only 6 months is tough. It's really more like 12 months and in some cases 18. Depends on the person you are co-signing for. If they are flaky and their credit is really, really bad then it might take more than 6 straight on-time payments to make a bank want to assume the loan.

If they have bad credit (or no credit) then here's some guidelines for you:

1. Buy USED. The interest rate is going to be high and used cars have already depreciated down (the biggest depreciation occurs the first year). This way when you try to refinance you won't be severely %26quot;upside down.%26quot; in the loan.

2. Try not to finance sales tax or other fees. This just ads to the amount you're borrowing and will make it harder to refinance.

3. Don't buy a lot of extra's. Get a nice extended warranty and definitely get GAP insurance. Other than that tell them you don't want anything else (this is critical if you want to refinance).

4. Try to get pre-approved for a loan so that you know what to shop for and don't get talked into buying more car than you really need.

If you want more information on car buying you are welcome to check out my site here:

http://www.1-800badcredit.com. I've got some good information on car buying and you can sign up for my newsletter and learn how to negotiate and not get ripped off by the dealerhsip.

Good luck to you!