Is It Better To Get An Auto Loan With A Co-Signer Or Not?
There are a couple reasons it may be better to get an auto loan with a co-signer. If you have not yet established a credit history, you may want to have someone co-sign for you. If you have recently filed bankruptcy or have really bad credit, this may be another reason to get an auto loan with a co-signer.What is a co-signer? A co-signer is a second party that takes on the same responsibility for the auto loan as the person who is buying the car. This may be a parent, other family member or a friend who agrees to sign the car loan papers with you.
The co-signee, by law, has full ownership and responsibility for the loan should you as the auto owner default on the loan in any way. If you fail to make the payments, the co-signer will have to make them to avoid damaging their own credit.