My 42 year-old son is still in recovery from a bad divorce after more than a decade. He has yet to get his credit repaired. I have put him off any number of times when he asks me to cosign an auto loan for him. I have outright bought him some form a transportation at least twice. He is lucky to have a job and a life partner who is also working at this point. I would rather spot him a substantial downpayment then have my name on a loan as a cosigner--too many horror stories about this. Alternatively I could, once again, get a loan in my name and gift him the truck, if it won't cause liability and insurance issues. Any advice?
Hello and thank you so much for reaching out to us. Based on the feedback you've provided we would recommend doing whichever option makes you feel most comfortable with when it comes to purchase of the vehicle for your son. Just consider the consequences and the liability if you put your name on a loan as a joint applicant which could impede your ability to borrow if your son defaults on the loan. I will forward this post to our insurance team as well to address your concerns regarding liability and insurance issues. Thank you!
Hi Bunbun69 . . . as far as the cosigning; you've answered it yourself . . . "not have my name on the loan as a cosigner" . . . I wouldn't do it. If his bad divorce is over a decade ago then his credit ought be "somewhat" better since negative information only remains on the file for 7 years. At age 42, he should be more responsible rather that falling-back on you as a continued financial supporter. If you get a loan in your name, you will still be responsible for anything that he does in the vehicle, anything that he carries in the vehicle and/or you will be fully liable from an insurance and financial standpoint. So, I wouldn't cosign and/or place the loan in my name and would stop being an enabler and demand that he be responsible . . . unless he has some disabilities (physical or mental) that you haven't mentioned. Best wishes!