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Can my grandma cosign my car loan?
Can a grandparent be a cosigner on a car loan? I've been working and saving money for a while, and I'm finally in the position to buy a car. I don’t have credit yet, and my parents aren't comfortable cosigning a loan for me because they have low incomes wouldn't be able to take on the loan if I was unable to pay. My grandma is fairly well-off, though, and would be able to cosign no problem.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Your grandma can legally cosign your car loan, but you should both think hard about whether or not it’s a good idea.
Here’s why:
When an applicant requires a cosigner to buy a
car
, the lender will verify that the cosigner is creditworthy and financially stable since the applicant doesn’t yet qualify on their own. That being said, some lenders will include a clause that will force the car buyer to pay the loan in full if the cosigner passes away.If your grandma is over 65 or otherwise in poor health, it might be safer for you to pick a different cosigner in case the unthinkable happens.
Pro tip: If you don’t have anyone else to cosign your loan, you could try to find a used car that you can afford to buy outright. Just be careful and check the car over thoroughly to make sure it
functions properly
before you make the purchase.View full answer
- Gregory R.
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