What does it mean to cosign for car?

Answer 1

You have good credit. Your kid just graduated from high school. You gave her $500.00 for a graduation present. She just got a new job. She needs a car to get to work. She takes the money you gave her and some money she saved. She wants to use that for the down payment on a car. She has no credit. She puts the money down and you sigh the loan along with her. You cosigned the loan. She signed the loan. She will pay it. If she can not pay it, Then they will ask you for the money. If the main signer can not pay the loan, the cosigner is then responsible for the loan.

Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer) who may be called primary signer). No difference.

EXCEPT that the cosigner frequently does NOT have possession or legal control of any property involved in the loan, so using it (say selling it) to pay for the loan can be much more difficult, if not impossible.

So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also.