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?

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

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.

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 want to 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

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

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.

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 believe 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 a lot of cars from them every year.

Normally like on my car, we bought it last year, even on a trade in on another 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

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.

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.

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

Hello again:

Ok, here’s a long shot, if she won’t sell on her own. Of course, I realize the liability you’re under, and given her behavior, you don’t want to be under it anymore. But, you should have thought of that before you signed the loan. I suggest that she didn’t just change.

I also get a sense that you want to punish her. Actually, if someone should be punished (financially), you’re on top of the list. Ok, I’ll stop.

Pay off the loan yourself, and TAKE the car. Sell it yourself, and give her back her down payment (or as close to it as you can).

She may try to stop you – probably will. If she calls the cops, it’s a civil matter. If she sues you, the legal position you take is that you acted as the MAJORITY owner, and you had the legal right to sell it. It may not work, but if she isn’t out anything, she won’t be awarded anything, and your problem will be solved.

excon

Hello, hopefully for the last time:

>>>Actually, if someone should be punished (financially), you're on top of the list.<<<

I'll bet you don't believe that. Ever hear the phrase, “Fool me once, shame on you. Fool me twice, shame on me”? You have, of course. That's a legal maxim. It means that if someone loans money and is not repaid, he's going to win in court. However, if that same someone, knows that the person he's lending money to, is a flake, or in legal terms, is put on notice, then the lender won't win in court.

Yes, your daughter acted irresponsibly. However, by your own admission that you've bailed her out before, you've been “put on notice” that she's a flake. Therefore, if someone is going to lose in court, it would be you.

So, I'm going to amend my recommendation. She should get back ALL her down payment. If there's a loser in the deal, it should be you, legally speaking.

excon

I suspect that dealer may be carrying their own financing. At least there is no pre-payment penalty on the loan, so the dealer feels that, given the down payment, the prinicpal balance on the loan is low enough so they think they can sell it again for more.

Whether you can sell it in a private sale for more is a possibility that you should explore before turning it back to the dealer. But you still have the problem that your daughter has to agree to the sale.