Understand the responsibility
A co-signer adds their credit and financial information to support an application and takes on responsibility for repayment. It is more than providing a reference for the borrower.
Discuss the difficult scenario
Agree how payments will be monitored and how quickly the co-signer will learn about a problem. Consider whether the co-signer could afford to pay if the borrower could not.
Read before signing
Ask the lender about access to statements and any release process. Do not assume co-signing gives ownership rights or that removal from the loan will be automatic.
Is a co-signer only responsible if they drive the car?
No. Responsibility comes from the loan agreement, not from who uses the vehicle.
Go to the official source
Requirements and lender terms can change. Use the source below for current details.
CFPB: Should I co-sign a car loan?