co-signer on a car that is about to be repossessed?

Question

ok i co-signed on a car with someone and they have been behind on payments for about 8 or 9 months and when i say behind i mean not making a pament at all for that period of time, now the finance company has a reposesion out for the car and they have been calling and harassing me about payments and keep wanting to know where the car is so they can pick it up, i keep telling them that if i knew where it was i would be more than happy to tell and i dont think it is fair for me to make payments on a car that i never see let alone drive, after all im not the primary owner i just co-signed (i know, i made a big mistake and since i put my name on the car lone the finance company sees it as i have a partial obligation to keep the car up to date with payments, but like i said i never see the car and have never even driven it so i cant waist my money on payment for something i have absolutly no controlle over,expecially since i am stretched with money and im having a hard time making my own car

payments, so my question is how much does the repossesion and lack of payments made on this care effect my credit vs. the primary owner's credit?

Answer 1

heres how it works if you co sign that is a binding contract that says if the primary borrower does not make the payments on time in full YOU are then liable for that money and you agreed to that by signing. Your credit will be ruined because after reposession the bank tries to sell it for what they can get out of it depending on howmany miles your friend put on it and if he ragged it out or not it goes on your credit as a reposession and a charge off which is very bad i know this from experience you will not be able to get a loan for anything for 7- 10 years until it falls off your credit. so heres your options 1: find the car take it have his name removed from the loan catch the payments up then take him to civil court for all this money you will have to put out and sell it to pay it off. or 2: let them repo it and have it on your credit, but NO judge is going to take your name off of it because you signed that bank note in the terms listed

Answer 2

The money you will spend for a lawyer to sue for a down payment (so that you could have what should have been affordable monthly payments for you) should be going towards the defaulted car payment itself. If they repo the car they will never get what it is actually worth if they sell it since cars depreciate enormously. The car will be sold at an auction and if, for example, you owe $10,000 and they only get $5000 at the auction, guess what??? You will still owe them $5000 because that is what they expected to get from you when you bought it. The company loans you the money to make money and they will stop at nothing until they get what is at least owed to them. Your credit will go right to the porcelain goddess and you will still have to pay the $5000 owed debt which will now be on your credit report for the repo. BTW- This WILL affect the cosigners credit as much as it will yours which is why intelligent people don't cosign on loans for people that have the bad credit situation in the first place. Bad credit means that you are unreliable to pay it back. I wish you the best of luck but I would just try to work it out with the lender and see what you have to do to get the car back, if it's not too late already!

Answer 3

You no longer have a partial responsibility, you have primary responsibility as the other person has defaulted. You should have considered this scenario when asked to co-sign. Even if they do recover the car, your responsibility continues because you will wind up paying the difference between what it sells for at auction and the remainder of the loan amount. You did not actually ask a question, but you now know what will happen.

Answer 4

Partial obligation ? No, /yYou took FULL responsibility for making the payments if the other person does not make the payments.

Since you, by co-signing, guaranteed the loan payments for the other person, not paying up will trash your credit just as badly as it will trash the other person's. If you don't cough up the money, you will find yourself facing a lawsuit for a judgment.

Think about what you do next time BEFORE you do it.

Answer 5

wow the company let them go that long without making a payment, usually it is 30-90 days .It will go on your credit and if it boils down to it you may have to get a warrant for the car. You also can write to the credit bureau and explain the situation .9 out of 10 times when they repo it they will sell it and you will still owe money ,that too goes on your credit .Some people just give you their butt to kiss even if you try to help them but legally you are responsible

Answer 6

It's your responsibility too! You are also part of the loan! Now your credit is screwed unless you can pay the 8 or 9 months of payments! I never would or will co sign for someone!

Answer 7

this will hurt your credit very much,its the same thing as being the one that owes on it ,when you signed as a co-signer on it you took on the responsibility of being responsible for also seeing that it got paid for,i made the same mistake with my step son,it took me a year to get it off my credit,but it will go against your credit,if you can even find the car and turn it in it will still get you on your credit record,there's no way to avoid that unless you just catch the payments up or pay it off,i hope it works out for you,good luck and merry x-mas.

Answer 8

I've got news for you - you ARE a primary owner if you co-signed on the loan. having a repo on your credit is bad.

Answer 9

Your bud screwed his and your credit beyond belief!!
As co-signer you are as responsible as he is.
By the way, after they get the car, they will be after you for more money.

Answer 10

yep - you are on the hook

once they repossess it - it will be sold at auction (literally
given away) and they do NOT care how much it sells for

BECAUSE

you have signed and the other winner - - -
- - - will STILL owe the BALANCE



guess we won't do that again, huh

education IS expensive