Should I cosign for a friend's $12,000 car loan?

"My friend wants me to cosign for a $12,000 loan. However, I'm also looking to get a car loan for myself soon.

Are there any reasons why I shouldn't cosign? I'd love to help him out."

Answer
“As the old adage goes, the only thing that gets between friends is money.
Cosigning for a car loan is the same ordeal, especially when you consider that you might be on this loan for five, six, or even seven years.
Several years is a long time to be on someone else’s loan, and doing so puts you on the hook for payments if your friend loses their job or stops paying.
Be polite, and suggest that maybe they ask a family member to cosign on the car loan. This will protect your assets and your credit in the future, even if you two have a falling out (which hopefully you don’t).”
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Eric Schad
Answered on May 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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