Co Signer For a relative.... (tips on getting a used car?)

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nismoZtuner
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Co Signer For a relative.... (tips on getting a used car?)

Postby nismoZtuner » Fri Mar 21, 2014 2:42 pm

Is there really a benefit for being someones co signer- my uncle wants a used truck and has been shopping around and I guess he was finally able to pick one out. If he signs the paper work for him self his Interest rate will be 7% or 7.9% since he doesn't have any credit history but his score is in the high 700s. He has the score but not the history. He has never cared about credit before. The only way he was able to get a score was because i was able to convince him on getting a credit card.

The car sales guy told me if I cosigned him that his Interest rate may go down.

I know that he has a year round job for Fresh Express and doesn't like to owe anyone money- but who knows what can happen later on.The truck he wants to get is a 2011 GMC Sierra with 30k miles at $25k with a 5k down payment.

I have never bought a used car nor new car from a dealership.
My credit score and history is only based on my credit cards(oldest is about 2 years now).

Besides being careful about cosigning someone is there a benefit for me?
I know i`m swiping my CSP once i receive it next week and bang $5k on that card!
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Postby cashback » Fri Mar 21, 2014 3:38 pm

Can you make the payments on the loan yourself?

If you cannot financially do that. Then do not co sign.

It may help your credit if you don't already have a car loan on it. But that benefit is vastly outweighed by the risk you are taking if you sign.
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Postby nismoZtuner » Fri Mar 21, 2014 3:41 pm

cashback wrote:Can you make the payments on the loan yourself? I could

If you cannot financially do that. Then do not co sign.

It may help your credit if you don't already have a car loan on it. But that benefit is vastly outweighed by the risk you are taking if you sign.


Yeah I have never had an auto loan- that is why I have a slight interest in this.
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Postby cashback » Fri Mar 21, 2014 3:44 pm

nismoZtuner wrote:Yeah I have never had an auto loan- that is why I have a slight interest in this.


I still would not do it unless you can make the payments on the loan yourself and REALLY trust your uncle.

And with your stated short credit, you co signing would probably not make a difference in the rate. The car guy is right, it may drop the rate of the loan, but he is just trying to sell a car.
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Postby nismoZtuner » Fri Mar 21, 2014 3:54 pm

cashback wrote:he is just trying to sell a car.


Exactly..

hmm not sure what do to its like I want to and at the same time I don`t.

Say I do cosign- will it really help me out credit wise after everything has been paid off.
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Postby cashback » Fri Mar 21, 2014 3:56 pm

nismoZtuner wrote:Exactly..

hmm not sure what do to its like I want to and at the same time I don`t.

Say I do cosign- will it really help me out credit wise after everything has been paid off.


It will be on your report as a loan satisfactorily paid.

On the other hand, you could be stuck paying a 20K car loan without the vehicle.

Don't do it. The risk is not worth the reward.
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Postby nismoZtuner » Fri Mar 21, 2014 4:02 pm

okay, let him do it him self..


I`m still swiping my sapphire card for the 40k bonus!

I will at least try and help deal the truck!
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Postby daniel2304 » Fri Mar 21, 2014 4:23 pm

You just got approved for a CSP with 5.8k and want to put 5K on it? Are you sure?
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Postby Dr.Mark » Fri Mar 21, 2014 4:39 pm

I would sell a kidney to be able to get a CSP from here in the UK.
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Postby augiedog » Fri Mar 21, 2014 4:55 pm

Wouldn't having an auto loan decrease your chances of getting a good loan yourself if you decide on purchasing a car in the future? Once he pays it off it can help your credit, but in the meantime if you decide to get a car I'm sure the bank will ask you how you expect to pay off two cars.

You're taking on a large liability. I've started building my credit to become credit worthy by the time I decide to buy a car. Save your credit since the auto loan will affect your ability to request CLIs and apply to new CCs as well.
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