Legal Question in Credit and Debt Law in Texas
Auto cosigner/coowner defn and liabilities
What's the difference between being a cosigner and co-owner on an auto loan? My intent is to cosign. Is it just based on whether you are listed on the title? Does the order you are listed on the note matter (first or second)? I understand the liability I have on the loan; do I have liability with regards to insurance, etc? If the car is involved in an accident, could I be sued? Does this (possible) liability relate to whether I'm on the title or not (or whether I'm a cosigner or co-owner)?
2 Answers from Attorneys
Re: Auto cosigner/coowner defn and liabilities
See Ms. Campbell's answer concerning being a cosigner.
A co-owner also means co-equal right and access to the vehicle, as well as all the responsibilities and liabilities of ownership. You are listed on the title, as a co-owner.
Re: Auto cosigner/coowner defn and liabilities
If you co-sign, you are equally as liable as the person you are signing for and are potentially on the hook for everything. If the person you are signing with is late in making payments, it can be reported on YOUR credit report. You should think about this long and hard before you do this.
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