Can a cosigner take away a car from you???

Question

I had my now former boss co sign on a loan for me a couple years ago. I was fired from there and he is asking that I surrender the car to him because I am late on a payment. Is there anyway that he could do this? I am going to make the payment but since the loan is technically in my name I would have to agree to do this correct? He couldnt just come in and have the bank take it from me??? I do owe him money in addition to this, does that have any affect on this situation?

Answer 1

my suggesting would be getting as much information as you can before taking any action,here is a good place for that purpose.http://car-loan.online-frees.info/approv...

Answer 2

If the loan is over 30 days late, yes, he has that right. I had to repo a car that I co-signed on, but they willingly gave it up. To save my credit, I had to refinance the loan with my credit union & pay off the bank. The loan is in both names, not just yours.

Answer 3

If the co-signer is called on to make payment, and he actually does make payment, he is "subrogated" to the rights of the secured party. This means that he can, legally, tow the car and auction it, just as if he were the lienholder.

In practice, he would not do so unless (a) he purchased the entire loan from the bank or (b) he has a deal with the bank to enforce the loan.

Before surrendering the car, make sure the bank knows what you are doing and agrees to it.

The right thing to do would be to refinance the car and take your ex-boss's name off the loan and the derogs on his credit report.

Answer 4

Auto finance is what I do for a living and first of all the loan is in both of your names equally.

As long as the payment is not over 30-days late he really doe's not have any right to ask for the car since it has not hurt his credit yet.

As long as you can make the payments and not be over 30-days late you have not violated your contract and therefore your co-signer has no legal right to demand that you turn the car over to him.

Answer 5

Spifiman answer is so on  the one, If you can, and you still want the car, you need to make the payment or either make some type of arrangement with the car company, so that you won't be late or go into default.