MY RIGHTS AS A CO-BUYER??

Question

I am known as the Buyer and then there is a co-Buyer, the Co-Buyer has the vehicle. He is the only one on registration, but I am in process of getting that fixed. Once I am on the title as a (or), do I have the right to pick up the vehicle. He is not making payments but yet he is driving the vehicle. Also, can I take the vehicle in the dealership and turn it in without his signature. If we are on the title as a (or). I have a small claims case with him already for monies owed to me, but I need to get the vehicle. This is all on my credit because he has no credit. I don't want to get in trouble and want to do things legal. But he dosen't care and I just want to turn the vehicle in dealership. This is a Lease Vehicle so he is putting lots of mileage on and dosen't care. I have tried to pick up the vehicle once, but since i wasn't on the title at the time, I had to return it even though he sighed a promissary note with me and I have been making the payments. This is the worse situation I have ever been in, and if you ever think about co-signing for someone DON'T. What do you think I should do? Would a Judge grant me the vehicle? or just the judgement he owes me. Should I just take the vehicle once on title?? Or should I have a tow truck pick it up? I want to do the right thing, but helping people sometimes SUCKS!!

Answer 1

I'm going through something similar at the moment. Here's what I have found.

There is a difference between co-buyer, co-signer and co-owner. In general, a co-signer is responsible for payment of the vehicle loan, but has no ownership rights. A co-owner is just that - owns an equal share of the vehicle. A co-buyer is tricky, but at least in the case of a GMAC car loan means the same as co-signer.

You need to get hold of the title and check to see if your name is on it. If it is, you are a co-owner. If your name and that of the other person are joined by 'or', then you can act independently - for example you can sell the vehicle with only your signature on the title. If your names are joined by 'and' then you have to act jointly - they need to sign and so do you, in order to sell the vehicle. The good news is that you are due half the proceeds, the bad news is you could be jointly liable if there are legal problems. If you aren't on the title but can get on - that's your best bet, so long as your names get joined with 'or'.

You also need to get hold of the finance plan or whatever they call the document you and they signed to lease the car. If you are listed as a co-owner, you should be on the title. If you are only listed as co-buyer or co-signer, look for a definition of that term on the document itself. If you are unlucky, it will say you are 'responsible for paying the entire debt' or something similar. That means you have no ownership rights, but you have agreed to pay the debt even if the owner defaults. If that happens, there isn't much you can do; call the lease company and ask what your options are to get out of the lease early - and be prepared to pay for the privilege.... but at least you might get out with decent credit.

Answer 2

You have to be on title, and it has to be "or" not "and".  Be careful about that.  Once you are on title, you have the right to repossess it and to do anything you want with it, because the title will show that you have that legal capacity.  I'm afraid you're going to get stuck with a hefty bill when you turn in the vehicle, but if you can prove what you lost, a small claims court will most likely give you a judgment for that amount.  The downside is whether or not the judgment will be collectable.  

Answer 3

You trusted your friend at one time.  What changed so fast. Maybe you are worrying too much.  Maybe it will all be fine.  If you are co-buyer you can do whatever is necessary to protect your credit and your legal rights. You can take the car and stop the co-buyer from damaging the car or exceeding the mileage limits.  .