Co-signing for a Car

You may be asked to co-sign if the person buying the car has bad credit, or no credit at all. Think twice before you co-sign for someone else.

If you co-sign, you are responsible for the entire loan amount. This means that you will have to pay the full amount of the loan if the other person doesn’t pay. You are responsible for the loan, even if you don’t have possession or use of the car.

If the other person does not pay the loan, you can be sued and your wages and property may be taken. The lender does not have to try to collect from the other person before going after you. You may also have to pay late fees and collection costs. If the loan is not paid on time, it will go on your credit report.

Written notice

Before you co-sign for someone other than your spouse, the dealer must give you a written notice telling you that you are responsible for paying the loan if the other person doesn’t pay.

Other languages

If the transaction is conducted in a language other than English, the written contract and the notice you are given must also be in that language.

County of Los Angeles Department of Consumer and Business Affairs. Last change: Dec. 1, 2013