A co-signer is someone who agrees to be legally responsible for a debt if the primary borrower defaults.
In the case of a car loan, the co-signer would be responsible for making the payments if the primary borrower fails to do so. However, this does not give the co-signer any ownership rights to the vehicle.
The primary borrower is the only person who has legal ownership of the vehicle.
Here are some additional points to consider regarding co-signers and vehicle ownership:
- A co-signer can only be held liable for the debt if the primary borrower defaults. If the primary borrower makes all of the payments on time, the co-signer will not have to pay anything.
- A co-signer cannot take possession of the vehicle if the primary borrower defaults. Only the primary borrower can legally drive and use the vehicle.
- A co-signer can be released from their obligation if the primary borrower refinances the loan without a co-signer.
- A co-signer can be added to the vehicle's title as a joint owner, but this does not give them any additional legal rights to the vehicle.
If you are considering co-signing a car loan, it is important to understand your rights and responsibilities. You should also make sure that you are comfortable with the risks involved before you agree to co-sign.
