What happens when you co-sign for a car and your friend can't make payments?

Question

I know that as a co-signer i am responsible for the car to be paid, but who would own the car if she pays down payment and 1 month and i have pay the last two month cause she can't keep up with it. I think it would be stupid for me if i keep paying and she is driving the car. The car loan is in both of our name but I co-signed for it because she didn't have the credit require, now i would hate to mess my credit up so i am making the payments. What should i do if she doesn't want to give up the car, or give me the car?

Answer 1

you are paying for the car so in other words you're the owner of the car she has to understand this or otherwise you have to make her understand by taking her to the court and then settling this matter and at the very 1st place you shouldn't have had mixed up your friend with any of this financial matter.

so good luck :)  

Answer 2

your credit gets pummeled...don't ever mix friends and money.

Answer 3

You are basically screwed!  you have to pay or YOUR credit will go down the s*****r.  It happened to me 7 years ago and I havent cosigned yet and I never will again.  If they need a co signer they obviously have money problems to begin with.  I think to get the car put entirely in your name he/she has to agree with it. if not, then you will have to take them to court.  either way.. see what money does to friendships? Consider it a lesson learned and move on

Answer 4

Unfortunately, that happened to me. Without knowing the amount of money you're talking about, its kind of hard to judge. And if "she" has made all the pmts but 2, I doubt "she" is going to give up the car to you. So, if you want to keep your credit intact, I'd say you're stuck with the 2 pmts. It's also up to you on how you handle getting your money back. If she won't give it voluntarily, then in some areas, there's a "Small Claims Court" for things exactly such as this. And, sometimes the mere threat of "taking someone to court" is enough of an eye-opener to have them see the light as far as making payments back to you. Be sure you document how you make the pmts, check,money-order,etc. as you will need these if you choose the Court route. And by "Co-Signing" for the car, you were telling the Dealership/Bank, "I know she has bad credit, but I can get the money from her no matter what". Good luck.

Answer 5

Rule # 1: NEVER EVER EVER co-sign for a friend.

Rule # 2: PAY or your credit will be screwed for 7 years

Rule # 3: If you are paying for something, it belongs to YOU.

If she didn't want to give the car to you, court is the answer.  

sorry that you are in this situation.

Answer 6

Now you see the wisdom (or lack thereof) in cosigning for a friend.

You have no leg to stand on in court as the car is probably registered in her name.

Answer 7

You get to make the payments. Co-signing is an acceptance of financial responsibility, but does not guarantee ownership.  

Answer 8

you have all the right to take the car from your friend, and keep it as your own and pay on it, but your screwed when they come get it if the payments are not made they will come after you and sue you in court for the money not your friend and your credit is going to go to pieces now dont ever co sign ever again i wouldnt ne ways

Answer 9

It seems stupid for you to have to pay for a car that she's driving because she's too irresponsible to pay the loan but that's how it works.  The bank probably wouldn't give her a loan because she didn't have enough credit showing that she makes payments on time.  You did.  I would pay the loan and get copies of the canceled check (after it has cleared your bank).  Maybe you can take her to court and get your money back.  Maybe not.  You could talk to her and let her know how you feel - that you think it is unfair for her to take advantage of you like that.  If it weren't for you she wouldn't be driving around that car would she!?  I would also never do it again if I were you.  

Hopefully next time she can get the loan on her own and when she doesn't make the payments, they will just repo it from her instead of making someone else make her payments.  Then she'll have a big mess on her hands.  Most of the time when you buy a car you buy it for more than the wholesale value.  Then you make payments on it which should pay it down but in the first few years you're paying a whole lot of interest so you don't pay that much off.  If the car is repo'd, it is usually sold at an auction for much less than what is owed on the loan.  And then guess who is responsible for that (as well as the repo man's fees)?  She is!  Payback is a b*tch.