If I cosign on a Car Loan am I responsible?
Answer:
When you cosign any car loan, you are guaranteeing
payment. If the borrower doesn’t keep up with the payments, you are fully responsible for making them. You must also pay any late fees or collection costs.

Think very carefully before cosigning a car loan. You could end up owing the entire amount. If you cannot make the payments yourself, the car will be repossessed, which can seriously damage your credit rating. Also be aware that lenders are much more likely to take collection action against the cosigner than against the primary borrower. The reasoning behing this is because the lenders know the cosigner is usually in a better financial position.

Before you cosign a car loan for a friend or family member be sure they can make every payment.
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