Anyone with information as to why car dealers are reluctant to allow a co-signer when extending credit? I have a friend with stellar credit (I hate him! j/k) that is willing to co-sign for a car loan, but the dealers I have dealt with shy awayfrom the topic with no explanation why. Any assistance is would be welcomed.
RE: "Co-signer informatio I just co-signed a car loan for my mom. The dealer told me that the banks tend to feel better when there is more than one person responsible. Maybe it is a local problem for you. You might try approaching where you bank, or join a credit union if that's an option for you. If Auto Solutions is in your area you might be able to get a loan on your own, they handle people with credit problems.
RE: "Co-signer informatio I've found that they are usually reluctant if the co-signer IS NOT a relative for whatever reason.
RE: "Co-signer informatio This doesn't relate directly to mortgage lending but I've found that auto lenders shy away from co-signers unless they live at the same address as the borrower, family member or not. Why that is a distinction I don't know. Dave LandMark Mortgage
could be the reason You and Renae are probably right. Being a blood relative and in close proximity must be the criteria. My mom's car was my first experience in co-signing.
RE: could be the reason This could vary according to the lender or your state may have a tendency to lean one way or another, but I am inclined to believe that it has more to do with being a relative than the same address. My mom co-signed for me a few years ago for a car loan and she lives in another state.
RE: could be the reason I work for a major financial institution and our definition of co-signer is someone who must directly receive benefit from the loan. If a friend wants to co-sign a loan, we would question that because the friend seems to not have a direct benefit from it.
