What’s the difference between a cosigner and a co-buyer when financing a car?

I've heard these terms used before, but from what I understand, they're not interchangeable. What's the difference here?

Answer provided by
avatar
Johnny Puckett
Answered on Apr 08, 2021
“A key difference is that a cosigner does not have any ownership rights to the vehicle, whereas a co-buyer usually has equal rights to the car. Co-buyers are often spouses, which means their income can be added to the loan applicant’s income to meet lending requirements or qualify for better terms.
Another difference? Co-buyers assume responsibility for payments from the start of the loan, while cosigners are only liable for the loan if the primary borrower can’t or won’t make their payments. “
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.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies