A car loan cosigner agrees to repay the loan if the primary borrower defaults. If you lose your job and cannot make your car payments, the cosigner may be responsible for the debt. The cosigner may take possession of the car to protect their interest in the loan. However, the cosigner is not required to take the car. They may also choose to make the payments themselves or allow the car to be repossessed.
If you are facing job loss, it is important to communicate with your lender and cosigner as soon as possible. You may be able to work out a payment plan that allows you to keep the car.
