Can a cosigner just take over my car loan?
I don't have the cash to pay for my car due to some added expenses, and I don’t know what to do. Can a cosigner simply take over my loan?
I’m really sorry to hear about your added expenses; you’re definitely not the only person who’s struggling financially right now. While a cosigner can’t take over your car loan as the named borrower, they are still financially responsible for making car note payments.
In other words, if you stop making payments, the cosigner will have to pay for you. Otherwise, it will hurt their credit, as well as yours.
That said, you could come to a verbal or written agreement with your cosigner that says they’ll make the payments in exchange for payments from you in the future. In some cases, this could be a friendly agreement; in others, you may secure the deal with a promissory note.
If an agreement between you and the cosigner isn’t feasible, you may have to sell the car and pay off the loan. While this may be frustrating, it might be your best move for your financial future, even if it burdens your transportation needs at present.
If your cosigner decides to take over the loan, don’t forget that you’re still on the hook for the full coverage car insurance. If you want to make sure you’re getting the best deal on your coverage, check out the Jerry app. We’ll get you customized quotes from top providers, so that all you need to do is pick the plan that works best for you.
Best of luck with your loan!
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