Auto Loans and Financing
Repossession
Co-signing

When you cosign can you send the car back and pay the depreciation value so it won't reflect badly on your credit?

Answer

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Wiki User
02/02/2007

No. When a vehicle is repossessed either voluntarily or by the lender, it must be sold at public auction for the fair market value or as close to that amount as possible. Any deficiency between the sale price and the loan balance will be the responsibility of the primary borrower and/or cosigner.