Legal Question in Civil Litigation in New York
Car Loan Co-Signee
I co-signed on a car loan for my daughter. She later sold the car to a second party for $5,000. She defaulted on the loan and the car was repossessed by the loan company from the second party. Do I have any legal obligation as the cosignee of the loan to repay the second party the $5,000 he paid my daughter. I was never a part of this sale or had any knowledge of it.
Thank you
1 Answer from Attorneys
Re: Car Loan Co-Signee
Your guarantee and obligation was/is to repay the loan company, in the event your daughter did not. It is unfortunate that the purchaser was screwed by your daughter. But, provided YOU did not participate or "cooperate" in effecting the sale, (and your daughter is not a minor), since the "second party" had the obligation to verify that the "purchased" vehicle, had clear title and was unencumbered by debt; you are very unlikely to be held liable to your daughter's purchaser.
Good luck,
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