My question is...would I be responsible in any way if he was in an accident? I realize I would be responsible if he didn't pay his payment but if he lost his job and had it reposessed would my credit be affected?
2007-10-23 17:42:28 · 12 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
I am no attorney or insurance adjustor.. but I thought of a few scenarios. If there is a car accident & the insurance (declares the car TOTALED) & pays you less than the amount owed on the car, the signers of the loan will be responsible for paying the loan in full.
When you allow someone to share your credit (co-signing) yes your credit will be affected by his payment history. Good news.. he pays it on time & in full your credit looks GREAT! He is late or it is re-possessed your credit reflects that as well. I am not certain how long this stays on your credit history.
I know (we) parents enjoy helping our children, especially when they are growing into their adult lives.
I proudly bought my first car with money I had saved for quite awhile. It was a used 68 Impala, and I am still proud of that fact 32 years later!!
I have owned one new car since & yes someone who knew me well, trusted my past history (as far as money managment & responsibility) did co-sign for my (first ever) loan. I paid every payment myself each month before it was due no matter what was going on in my life.
When I had my children I truly wanted them to learn how to manage their lives by the time they reached adulthood. I always told them I would support them in their ventures, to the best of my ability.
Both of my daughters have their own cars. I did not purchase them or co-sign for them and because of this they have alot more than a car. They have the same realization I still have after 32 years! I have CELEBRATED their accomplishment as car owners with them!
You said in your question your son wants you to co-sign for his car. What do you want for him & your credit?
I know decisions are not always as simple as they seem. I wish you the best in making your decision.
2007-10-23 18:32:28 · answer #1 · answered by Secret Agent 2 · 0⤊ 0⤋
On the accident thing, can't say for your state but my state for a minor (under 19) or a family member co-owner adult, you could be liable, as in sued, only if say you knew he had DUIs or was really proven bad driver, or no license etc. and with knowledge (or should have known) you allowed him to drive car. As to your insurance rates, I don't know. You are helping him establish a credit rating by co-signing so that's great. But you are responsible/it will go on your credit if he doesn't make a payment so I would call the company and check up on him occasionally.
FYI if you buy a junker..guess who gets to pick him up when it breaks down? That's riggghhht. Look at used rental cars, they are not that bad.
2007-10-23 17:57:51 · answer #2 · answered by fantagirl 4 · 0⤊ 0⤋
If you co-sign for him - YES your credit will be effected if he fails to make the payments.
What I did, when my children were driving age, I gave them money for a down payment but I NEVER co-signed for them.
The best thing you can do his give your son money for a down payment (providing it's NOT a new car - children do NOT need new cars) and let him pay the rest. Find a used car from a family member or neighbor - this would be the best way for him to start off. Once he shows responsibility, like a job and making good money, then he can buy a new car himself.
2007-10-23 17:51:25 · answer #3 · answered by David G 3 · 0⤊ 0⤋
You are on the line if for ANY reason they don't get paid. They zap you before they repo. If your son had any serious driving offenses like DUI, reckless driving, you could be sued as a facilitator if he got in an accident and hurt someone.
By the way, if you co-sign your credit rating goes down as more debt.
2007-10-23 17:56:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Of course it will, you need to tell your son to work, save his money, and pay cash for a used car, and bill his credit up in other ways, so he can get a new car on his own, without a co-signer, that's the wrong thing to do for someone of his age....
2007-10-23 18:11:00 · answer #5 · answered by Kas-O 7 · 0⤊ 0⤋
yes your credit would be affected because as a co signer you are just as responsible for the payment as he is, as for him getting in an accident iam not sure about that i think u might be responsible in some small way but not totally, he is an adult now and since the car was financed in his name also then he would be held responsible for the accident, i guess the best thing i could ask u is "is your son responsible enough to make the payments"? (do u trust ur son enough to keep his job or is he going to be responsible to make the payments on time or if he looses his job is he going to be resposible enough to quickly find another job)
2007-10-23 17:58:12 · answer #6 · answered by michaeljustussvcc 1 · 0⤊ 0⤋
Yes, if you co-sign a contract, which you did, then you would be held accountable.
I would advise against co-signing on a vehicle with any person 18 years old. Tell him to buy a junker.
2007-10-23 17:47:53 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Once you co-sign that loan you are responsable for the loan as well as your son.It will affect your credit.
My son asked me to co-sign once but I didn't feel he was stable enough in his job history so I refused.
2007-10-23 17:50:13 · answer #8 · answered by nbreakdown1 1 · 1⤊ 0⤋
When you co-sign, you are agreeing to be totally, 100% liable for the repayment of that loan, no matter what the reason for his nonpayment.
As long as the loan is satisfied, by him or by you, it doesn't matter who, both of you will have a good credit record of it.
2007-10-23 18:07:39 · answer #9 · answered by Marc X 6 · 0⤊ 0⤋
As a co-maker of any contract with your son, you are solidarily liable in case he incurs any obligation.
2007-10-23 17:47:04 · answer #10 · answered by FRAGINAL, JTM 7 · 1⤊ 0⤋