We all know that cars are high priced ticket items. Even if you are buying second hand and getting a bargain, these machines cost a lot of money no matter how you look at it.
Some people are not able to afford a car on their own but have the need to own one, which means they would need assistance.
Perhaps you find yourself in a situation where the joint income you share with a spouse or friend allows you to afford a car because you can financially support each other or maybe you don't have the best credit record and you need to have a co-debtor sign your agreement to help you to get your loan.
Will the banks offer you car finance if you have a co-debtor?
The simple answer is yes! You can have another party co-sign your loan agreement but one must note that the car can only be registered in one person's name.
Who would be liable for the payments?
Both parties who co-sign will become equally liable for the repayment of the loan. The person who is registered as the owner of the vehicle will become the principal debtor. The co-debtor will only become liable should the principal debtor fail on their monthly payments.
Who can drive the car when the finance is shared?
Both parties who share the financial obligations of a new car are able to drive the vehicle. However, both parties will need to be insured to drive the car.
Is it the best decision to share a car loan?
The biggest risk of sharing a car loan is that no one is in complete control of the future. It is always difficult to know what it might hold and sharing a car loan always runs the risk of affecting two people's lives should things go wrong.
It is advised that if you do require assistance, you try and seek help from family or people you trust. They should understand your financial and life situations as they run the risk of becoming liable for something that you possibly can't continue to pay for, especially when you drive the vehicle.
Make sure you are always aware of your legal obligations when entering into any finance agreement for a vehicle.
Shop for your new ride with Auto Mart today.