What happens if I cosign for a car loan?

My son is 24 years old and he just graduated from grad school. He wants a car, but he doesn't have any income quite yet. I was going to cosign for him, but I'm not sure how the process works. What do I need to do as a cosigner?

Answer
That’s great that your son has graduated! I’m sure you’re very proud.
Cosigning for a car loan is a great way to get your son the transportation he needs while he is starting out.
When you cosign for the loan, you’re basically saying that you’re responsible for the payments if your son fails to make the car note payment on time. If he defaults, the lack of payment can damage your credit, and lenders and collectors may come after you or your assets to make the payments.
Along with cosigning, you also need to budget or discuss a budget with your son for car insurance. Car loans require full coverage car insurance per the stipulations of the loan.
To get quotes from up to 50 providers, use the Jerry app. Sign up in minutes, and you and your son can peruse the options for coverage so you get the best policy for your needs. Jerry will even take care of the paperwork for you!
Eric Schad
Answered on Oct 21, 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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free