Rights of Co-Buyer: The co-buyer generally has as much right to the vehicle as the primary borrower. They are equally obligated to pay the loan and, in the eyes of the law, have equal ownership rights unless there's another agreement in place that states otherwise.
Co-owning means both parties have equal ownership and financial responsibility for the car. Both co-signing and co-owning can significantly impact credit scores, both positively and negatively.
A co-borrower can take the car, but not without your permission. For example, if the co-borrower wants to take the car, sell it, or trade it in, you will need to sign off on it before the co-borrower can proceed. When it comes to signing the title to sell or trade in a car, there might be exceptions.
Cosigners can't take possession of the vehicle they cosign for or remove the primary borrower from the loan since their name isn't on the vehicle's title.
The Bottom Line
One of the risks of cosigning a loan is that at some point you may no longer want to have your name on the loan. Fortunately, you can have your name removed, but you will have to take the appropriate steps depending on the cosigned loan type.
You have a few options if you've co-signed for a loan and the primary borrower is behind on payments. It's most important to understand that you do not have the right to repossess the car yourself. Instead, you'll need to either work something out with the primary borrower or continue making the payments to the lender.
If you co-signed for a loan and want to remove your name, there are some steps you can take: Get a co-signer release. Some loans have a program that will release a co-signer's obligation after a certain number of consecutive on-time payments have been made.
Rights on Joint Auto Loans
On a joint car loan, co-borrowers have equal rights and responsibilities to the loan and the vehicle. This means: You can't sell the car without their permission and vice versa. The lender can ask either co-borrower to make payments, regardless of the payment arrangements made between you.
Removing a cosigner or co-borrower from a mortgage almost always requires paying off the loan in full or refinancing by getting a new loan in your own name. Under rare circumstances, though, the lender may allow you to take over an existing mortgage from your other signer.
Co-borrower: Also known as a co-applicant, the co-borrower shares financial responsibility and ownership of the car from day one. Their name will likely appear on the car title with the other borrower. Both borrowers typically contribute toward monthly payments.
A co-borrower is a co-owner of the property. The co-borrowers name would be on the title of the home, right alongside yours. Beyond having their name on the title, co-borrowers' assets, credit history, employment history, and debts are assessed as they are also applying for the home loan with you.
When you work with a co-borrower, lenders will view their financial details alongside yours, giving both equal weight. Once your mortgage application is approved, your co-borrower will have the same legal rights to the property and the same mortgage responsibilities as you..
The terms co-borrower, co-buyer, co-applicant and joint applicant all basically refer to the same role — someone who shares in equal ownership of the loan and car. They are also equally responsible for making car payments from the start. A co-borrower is often a spouse or partner.
A co-buyer, also called a co-borrower, is usually a spouse who signs the car loan documents with the primary borrower. Being a co-buyer means both the primary borrower and their spouse share equal rights to the vehicle, and they can combine incomes to qualify for an auto loan.
And while the terms are similar, a co-borrower — or joint applicant — shares ownership of the loan and assumes responsibility for payments from the start. On the other hand, a co-signer is only liable for the loan if the primary borrower fails to make payments.
To get your name off of someone's car loan you have the option to request a co-signer release. Selling or trading in the vehicle is another way to remove a co-signer from a car loan. If these aren't options, you can ask them to refinance the loan without you.
If you and your significant other purchased the car together and both of your names are on the title (and on the lease), you may need to sell the car or have one owner buy out the other's share. Otherwise, you still legally share ownership of the car and must work together on splitting its use.
THE BANK AND THE COURTS DO NOT CARE. All they care about is that YOU signed the loan, so as far as they are concerned YOU owe the money and you owe ALL of the money to the bank, and the only way to change that is to pay the money back. The buyer can get another cosigner or you can sell the car to pay off the loan.
If the vehicle is solely titled in your name and you have a key and can peacefully enter it, you may have a right to get it. Now, it is a civil matter, if the police will not get involved and another option would be to file a civil lawsuit against him, for a replevin action and sue, to recover it.
The answer is no, the cosigner has no legal right to take possession of the car. As a cosigner, you don't have legal ownership rights to the vehicle. In other words, a cosigner is on the vehicle's note (making them liable for the payments) but not the car title (which indicates ownership).
Being a co-signer doesn't give you rights to the property, car or other security that the loan is paying for. You are the financial guarantor, meaning you must make sure the loan gets paid if the primary borrower fails to do so.
A repossession typically stays on credit reports for seven years. However, you can take steps to improve your credit before the seven-year period ends. Making consistent smart financial decisions over time, such as responsibly using credit cards, can help steer your credit in the right direction.