I cosigned on an auto loan with our daughter. The car title and loan are in both of our names. She is going to move out and has been unreliable in making payments. I have had to bail her out more than once. I want her to either get the loan and title in her name alone or turn in her car. She is unable to get the loan in her name alone as her income is not high enough. She is opposed to turning in the car. What are my legal options? Can I turn in the car without her signature or agreement?

excon

Hello abycassie:

Turning in the car will ruin both of your credit ratings so I don't know why you would consider doing that.

Whether the payments were made on time or not, the car is equally owned by the two of you, so any solution will have to be negotiated. YOU can't act arbitrarily.

Those are your legal options, which aren't many. Beyond the legal problems, I really have no idea how you can solve the personal problem that remains.

excon

abycassie

I should have explained that the car dealership is willing to take the car back in and pay the loan off if full. Nobody's credit rating will be ruined.

excon

Hello again:

>>>I should have explained that the car dealership is willing to take the car back in and pay the loan off if full. Nobody's credit rating will be ruined.<<<

You should have.

So, where is this car dealership? I wanna buy a car from them. You’re telling me, that they are going to give you back every cent you spent for a car, that they sold for retail, is even more used than when they sold it to you, paid a salesman a commission on it (that they won’t get back), paid another “finance manager” a commission on it (that they won’t get back), and aren’t ever going to sell it again for the same price they sold it to you for? PLUS, they are going to pay the bank off in full (who for sure are going to make their profit)?

Now THAT, I find strange. Why would a dealership take such a bath for you? I think you have more “splainin” to do.

excon

excon

Hello again:

Nope. No dealership is going to do that.

Of course, IF there was a large down payment made on the car, that isn't going to be returned, that would explain why the dealership is "willing". Whose down payment was it? Yours? I doubt it; otherwise you wouldn't be so cavalier about losing it.

Have I got it right yet?

excon

talaniman

The only thing I can suggest is to pay off the loan. If it is returned the original note is modified to show the depreciated value of the car and you will still be responsible for the difference and any accrued interest and fees. If it is sold you are credited with the selling price and still owe any difference. She will probably need a loan to payoff the original and get you off this note.

Fr_Chuck

Get the payment notice to be mailed to your house, have her pay you each month on the loan, then you will know if it is being paid.

I also just can't beleive any dealership will buy back a car without you having to pay some. As excon said perhaps if you put 1/2 down on it and have not had it long, Or if you are wealthy and buy alot of cars from them every year.

Normally like on my car, we bought it last year, even on a trade in on anohter car they don't offer what is owed on it.

Also since her name is on the loan and the title, she has to agree 100 percent on anything you do, as long as she wants to keep it, you are stuck also

Dr D

I agree with the advice offered by the previous posts. Since you are a co-owner of the vehicle, you could save repo costs by turning the vehicle in to the lender. Then that would show on your credit as a voluntary repo - not good. Another consideration that no one has mentioned: Since your daughter is a bit on the flighty side; she may someday take out a schoolbus full of little kids with your jointly owned car. Guess who the next of kin would sue. Pardon me for seeing the negative side of too many situations.

abycassie

Okay, she paid a down payment, the car really keeps its value, so the dealership will buy the car from us for exactly what is owed on it. We have had the car for about 15 months. The schoolbus full of little kids with our jointly owned car is what we are concerned about. Thanks everybody for your input.

excon

Hello again, abycassie:

You're welcome. But, I'm not going anywhere. Since I now have the facts (it's like pulling teeth), I might now be able to offer a solution.

Remember that bath I was talking about. You want your daughter to take it instead of the dealership. She doesn't want to. Duh!

What do you think the dealership is going to do with it? They're going to sell it again at retail for a lot more than they're going to pay her, because as you say, the car keeps it's value.

Why don't you suggest that your daughter sell the car herself at retail, so that she can get back her down payment? She may not, and you can't force her. But, you have a much better shot at making this deal, rather than one where you and the dealership win and she loses.

excon