Co-signing vs. co-owning a vehicle: Which is better? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by offering interactive tools and financial calculators that provide objective and unique content. We also allow you to conduct research and compare information for free and help you make informed financial decisions. Bankrate has agreements with issuers including, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are displayed on this site are from companies who pay us. This compensation may impact how and where products are displayed on this site, including for instance, the sequence in which they be listed within the categories of listing, except where prohibited by law for our loan products, such as mortgages and home equity and other products for home loans. But this compensation does have no impact on the content we publish or the reviews appear on this website. We do not cover the vast array of companies or financial deals that could be available to you. FG Trade/Getty Images

2 minutes read. Published 28 October 2022

Expert verified How is this page an expert?

At Bankrate We ensure the accuracy of our content very seriously. “Expert verified” signifies that our Financial Review Board thoroughly evaluated the article for clarity and accuracy. This Review Board comprises a panel of experts in finance whose goal is to ensure that our content is neutral and fair. Their reviews ensure that we are publishing quality and reliable content.

Written by Bankrate Written by Bankrate. This article was written using automation technology and thoroughly verified and edited by an editor from our editorial team. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the beginning of 2021. They are committed to helping readers feel confident to manage their finances by providing concise, well-researched and clear facts that break down complicated topics into digestible pieces. Review by Mark Kantrowtiz by Nationally recognized expert in student financial aid Mark Kantrowitz is an expert on financial aid for students as well as the FAFSA and 529 plans, scholarships, educational tax benefits, as well as student loans. The Bankrate promises

More details

At Bankrate we aim to help you make smarter financial decisions. We are committed to maintaining strict journalistic integrity ,

This post could contain some references to products offered by our partners. Here’s a brief explanation of how we make money . The Bankrate promise

In 1976, Bankrate was founded. Bankrate has a long history of helping people make wise financial decisions.

We’ve maintained our reputation for more than 40 years by simplifying the process of financial decision-making

process, and giving people confidence about the actions they should follow next. process that is rigorous and precise.

So you can be sure that we’ll put your interests first. All of our content is created with and edited ,

who ensure everything we publish will ensure that our content is reliable, honest and trustworthy. The loans reporter and editor concentrate on the points consumers care about most — the various kinds of loans available, the best rates, the top lenders, the best ways to pay off debt and more — so you can feel confident when making a decision about your investment. Editorial integrity

Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors, reporters and editors provide honest and trustworthy information to help you make the right financial choices. The key principles We respect your confidence. Our mission is to offer readers accurate and unbiased information. We have established editorial standards to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is correct. We keep a barrier with our advertising partners and the editorial team. Our editorial team doesn’t receive direct compensation by our advertising partners. Editorial Independence Bankrate’s editorial team writes on behalf of YOU the reader. Our aim is to provide you the best advice that will assist you in making smart personal finance decisions. We adhere to strict guidelines in order to make sure that the content we publish is not affected by advertisements. Our editorial staff receives no directly from advertisers, and all of our content is verified to guarantee its accuracy. So, whether you’re reading an article or a report you can be sure that you’re getting credible and reliable information. How we make money

There are money-related questions. Bankrate has answers. Our experts have helped you understand your money for over four years. We are constantly striving to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is truthful and precise. Our award-winning editors, reporters and editors provide honest and trustworthy content to help you make the best financial decisions. The content created by our editorial team is factual, objective and uninfluenced through our sponsors. We’re honest about the ways we’re capable of bringing high-quality content, competitive rates and helpful tools to you , by describing how we earn money. is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and services or through you clicking certain links posted on our site. So, this compensation can influence the manner, place and in what order products appear within listing categories, except where prohibited by law. This is the case for our mortgage home equity, mortgage and other products for home loans. Other factors, like our own website rules and whether or not a product is available within the area you reside in or is within your personal credit score could also affect the manner in which products are featured on this site. Although we try to offer the most diverse selection of products, Bankrate does not include information about every financial or credit product or service. Co-signing and co-owning cars are two approaches to applying for a with an additional borrower. In both situations, the secondary borrower needs to have sufficient credit and earnings to pay for the loan on their own. However, each comes with advantages and drawbacks, based on the kind of thing both parties want. There are some differences between a co-signing or co-owning of car. A co-signer an individual who is responsible for repaying the loan but does not have any legal ownership of the car. Co-owners have equal rights to it. Co-signing on the purchase of a car loan In the case of a car co-signer, the co-signer is required to make monthly repayments if the borrower can’t make them. It’s a huge decision that must be made and it will . Benefits of co-signing on a car loan Assistance in qualifying: A co-signer can apply for an auto loan which they wouldn’t otherwise be eligible for. Build credit: In the event that the borrower can keep up with payment, the credit of co-signers as well as the co-signer could be impacted positively. Reduce costs: If the cosigner is a good to good credit score then the primary borrower will be eligible for a lower fee and interest rate. Risks of co-signing on an auto loan Responsibility for payments In the event that the borrower is in default on a loan, the co-signer has the responsibility for all loan repayments. No legal claim: The co-signer is not listed on the title and does not have any legal right to the car. Co-ownership of a car is a legal option. In the case of a car, both the owner and the co-owner are on the title. The fact that a co-owner is listed doesn’t change the fact that the primary borrower has the title to the property. Based on the way in which the vehicle is registered and the primary borrower might require permission to sell the car. Benefits of co-owning a car Safety for co-owner A co-borrower is protected by the security of having their name listed on the title. Better terms: If both borrowers have credit that is strong the primary borrower could be extended better terms than if they applied alone. The risks of co-owning a vehicle Equal Rights: Each co-borrower is granted the same rights to the vehicle as the primary borrower. This means the co-owner must take part in transfer or sale of the car. Insurance: Even if the co-owner does not use the car, they will likely have to be covered by the insurance policy. This means higher cost for the two parties concerned. How to choose between co-signing and owning an automobile The most significant distinction between co-signers and co-borrowers is the amount of investment of the loan. Co-borrowers are more accountable and have greater control over the loan than cosigners. Co-borrowing is a good option for those with excellent credit scores and wish to have equal rights to the vehicle -like a couple that wants to buy a car together. However, it is not recommended co-borrowing is for those who doesn’t meet the requirements for the loan even if they is in need of assistance to qualify for a larger amount or low interest. How to prepare for co-signing or co-owning a car To be co-signer on an loan you must have a stable income and meet the credit score requirement set to be met by the lender. The same is required for co-ownership, as the credit score of both co-borrowers is considered. If you do meet the requirements, an open dialogue should be conducted between the two parties. Co-signing and co-owning both come with significant credit risk. Make sure there is a plan in place in case the principal borrower is unable to pay. The bottom line There are many reasons you may choose to co-sign the car with another individual. In any event it is crucial that both parties are on the same page regarding what the relationship entails and what’s expected of each of you. Find out more


The article was written by produced using automation technology, and was thoroughly checked for accuracy and quality by an editor from our editorial team. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are enthusiastic about helping readers gain confidence to manage their finances through providing clear, well-researched information that breaks down complex topics into manageable bites.

Auto loans editor

Reviewed by Mark K. Kantrowitz Reviewed by Nationally recognized student expert in financial aid Mark Kantrowitz is an expert on financial aid for students, the FAFSA, scholarships, 529 plans as well as tax benefits for education along with student loans.

Nationally recognized student financial aid expert

Related articles Loans 4 min read on Oct 12, 2022. Auto Loans 3 min read Oct 5, 2022 Automobile Loans three minutes read Sept 20, 2022 Auto Loans 3 min read Jun 17 2022

Here is more regarding payday loans online same day south africa,, visit our own web-page.