What does a co-signer on a car loan do?
A co-signer on a car loan assumes equal responsibility for any debt or default incurred by the primary person signing the loan on the car. In other words, any payments that the primary loan holder can’t make become the responsibility of the co-signer.RisksThe co-signer of a loan is subject to the same consequences of defaulting on the loan as the primary loan holder. This can include your credit rating being affected, being sued by the lender and even being forced to sell your own property to pay off the primary loan holder’s debt, according to Lawyers.com.RightsAs the co-signer of a car loan, you may have rights to the vehicle but this will depend on the specific terms of the loan agreement.ConsiderationYou should never co-sign a car loan unless you are absolutely sure you can make the payments or meet other terms of the loan if the primary loan holder cannot.CircumstancesPeople with bad credit generally will need a co-signer to get their loan approved. Co-signers are also often neede
