Pros of adding both names to an auto loan:
* Both spouses will have equal ownership of the vehicle. This can be important in the event of a divorce or death.
* Both spouses will be able to build their credit histories. This can be helpful if one spouse has a lower credit score than the other.
* It may be easier to get approved for a loan. Having two incomes can make it easier to qualify for a loan, especially if one spouse has a lower credit score.
* Both spouses will typically be able to drive the vehicle. There will not be any complications with usage due to name on title issues.
Cons of adding both names to an auto loan:
* Both spouses will be liable for the debt. If one spouse defaults on the loan, the other spouse will still be responsible for paying it.
* It may be more difficult to get approved for a loan. Lenders may be hesitant to lend money to a couple that has a lot of debt.
* If the spouses get a divorce, both spouses remain tied to the loan and responsible for paying it off. This can be complex and lead to disagreements on how to split payment of the debt.
* It may be difficult to trade in or sell the vehicle. If only one spouse's name is on the title, that spouse will need to be present to sign the paperwork for the sale or trade-in.
Overall, there are both pros and cons to adding both names to an auto loan. Married couples should carefully consider all of the factors involved before making a decision.
