"Can my employer cosign on a car loan for me? "

"I am working full-time for a small business owned by a family friend. I need a car, but I don’t have any credit. Could my boss cosign on a car loan for me? I am 17 years old and have been working for this business since age 15.

"

Answer
“First and foremost, it is not legal for you as a minor to sign a legally binding contract. Therefore you cannot get a car loan, whether you have a cosigner or not.
Now, as for getting your boss to cosign on a car loan, mixing personal financial agreements and business is a huge mistake. When someone agrees to cosign on a loan, they are saying to the lender, “If this person fails to pay you on time, I will.”
That means that if you are late on a payment, the negative mark will affect both your and your boss’s credit scores, which will in turn limit your boss’s buying power and possibly cost them business.
And no matter how good of a friend your boss is, there’s a good chance that they could flat-out reject you if you ask them to be a cosigner.”
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Johnny Puckett
Answered on May 05, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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