Should I co-sign for relative?

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nguy44
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Re: Should I co-sign for relative?

Post by nguy44 » Mon Oct 29, 2018 2:25 pm

No way. Run away screaming from this. $900/month is a WANT, not a NEED. For a NEED, I might give someone money as a gift (in fact we have gifted or helped a couple of relatives get older used cars which were very functional for transportation), but I still would not co0sign. And I would NEVER co-sign for a WANT. Trust me, you WILL end up having to pay for some of that.

stimulacra
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Re: Should I co-sign for relative?

Post by stimulacra » Mon Oct 29, 2018 2:54 pm

I can't imagine what reasonable vehicle leases for $900 a month. Maybe a Mercedes S-class AMG for a fledging limo service or a fully loaded class 3 pickup truck?

In either event I would run fall away.

RobertD
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Re: Should I co-sign for relative?

Post by RobertD » Mon Oct 29, 2018 5:11 pm

Definitely no.
I did something similar, didn't pay attention until I got a credit alert on my credit monitoring service that the account went 90 days delinquent.
Ended up having to pay it off myself and ruined a relationship because of it and how it was handled. Wish I could go back in time and just say no to the original request.

The one upside is the experience has made it easy to always quickly and politely say no to family, in-laws and friends who want to borrow $, get a co-signer, get an investment in their business idea, etc. Even if its a small amount its not worth messing up the relationship if it goes sour. If they can't get a bank to loan them $ for it, then it's rather likely they shouldn't be doing it.

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dm200
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Re: Should I co-sign for relative?

Post by dm200 » Mon Oct 29, 2018 5:14 pm

I can say, however, I have known a lot of folks who have successfully cosigned for others.

pennylane
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Re: Should I co-sign for relative?

Post by pennylane » Mon Oct 29, 2018 5:36 pm

Thanks everyone for the input.

Texgal17
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Re: Should I co-sign for relative?

Post by Texgal17 » Mon Oct 29, 2018 5:38 pm


I did this for a relative and yes it went south...ended up paying it off myself.....But I also did this for my only child as she was getting started after high school. But it was a used car with small payments and she did pay it off herself eventually. So, NO way, NO how in this case.....Big red flags....My mortgage is around that much!!!!!

Dottie57
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Re: Should I co-sign for relative?

Post by Dottie57 » Mon Oct 29, 2018 5:46 pm

frugalecon wrote:
Mon Oct 29, 2018 11:11 am
If a "close relative" were a young adult child, or potentially even a niece or nephew I was particularly close to, I might be willing to co-sign for vehicle financing (generally wouldn't encourage a lease) if that was an important way for them to build a credit history and the vehicle was needed for getting to a job. And if I wouldn't have hard feelings if I ended up paying for the vehicle. And definitely only if the vehicle was modest, something like a Civic or Fit. $900/month for a leased car sounds like a "nice to have," not a "need to have." I would explain very nicely that you can have extravagant toys when you can afford to pay for them yourself.
+1. Only a child for me - cheaper reliable car. Not 900 a month.

My dad helped me with a Honda Civic Hatchback in 1982. He bought the car and he created a payment table. It was plain jane, manual transmission, no A/C. The payment was due on the first of the month. I paid it off.
Last edited by Dottie57 on Mon Oct 29, 2018 6:02 pm, edited 1 time in total.

smackboy1
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Re: Should I co-sign for relative?

Post by smackboy1 » Mon Oct 29, 2018 6:01 pm

pennylane wrote:
Mon Oct 29, 2018 11:00 am
A close relative of mine has asked me to co-sign for them, lets assume defaulting was not a big risk but the necessity for a co-signer is due to unestablished credit. Would you co-sign this?

The co-sign is for a vehicle lease of about $900/month
By co-signing you are guaranteeing the contract. If it were me I would only co-sign if my relationship with the relative is that I would be OK with accepting 100% of the financial liability - no regrets, no tears. I would be OK if it were my child or my spouse or my parent. Anybody else I would probably decline.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

TRC
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Re: Should I co-sign for relative?

Post by TRC » Mon Oct 29, 2018 6:12 pm

pennylane wrote:
Mon Oct 29, 2018 11:00 am
A close relative of mine has asked me to co-sign for them, lets assume defaulting was not a big risk but the necessity for a co-signer is due to unestablished credit. Would you co-sign this?

The co-sign is for a vehicle lease of about $900/month
Not a chance. If you feel compelled to help, gift the person money.

If they bank won't take a chance to loan this person money, then neither should you. $900 for a car payment (presumably their firs?) is crazy.

stimulacra
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Re: Should I co-sign for relative?

Post by stimulacra » Mon Oct 29, 2018 6:19 pm

Give the relative $500 and wish them the best of luck. Any way you cut it, it’ll be a bargain. Win win.

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Watty
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Re: Should I co-sign for relative?

Post by Watty » Mon Oct 29, 2018 6:21 pm

A few things that might not have been mentioned.

1) The lease WILL show up on your credit report and it could prevent you from being able to get credit if you want to buy a house or refinance.

2) You could be on the hook for a lot more than $900 a month if the car is returned at the end of the lease in poor condition.

3) If he or she is in a car accident and someone is killed or badly injured then you can expect to be named in the lawsuit since you enabled them to buy the car. Often when there is a lawsuit anyone even slightly related to the situation will be named. Being found liable in that lawsuit is probably unlikely but you would need to pay for a lawyer to defend you.

4) His or her credit score may be used by the insurance company in setting the rates for car insurance. I can't imagine how much it would cost to insure a car like that.

CedarWaxWing
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Re: Should I co-sign for relative?

Post by CedarWaxWing » Mon Oct 29, 2018 7:49 pm

No.

Not for my brother, my sister, any offspring, nor any nieces or nephews, nor my best friends.

If someone of those needed a car I would let them use my car, or give it to them before I signed for such a lease.

I would however have a serious heart to heart talk about the best way to solve the transportation problem in a fiscally sound, rational way that may facilitate financial health and decision making.

I would not think about it for more than about 5 seconds before going into the educational part of the discussion.

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BolderBoy
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Re: Should I co-sign for relative?

Post by BolderBoy » Mon Oct 29, 2018 9:50 pm

daheld wrote:
Mon Oct 29, 2018 11:01 am
Not. A. Chance.
+1. I'd become estranged from someone forever before I'd co-sign a loan with/for her.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

denovo
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Re: Should I co-sign for relative?

Post by denovo » Mon Oct 29, 2018 9:58 pm

pennylane wrote:
Mon Oct 29, 2018 5:36 pm
Thanks everyone for the input.

What did you decide to do?
"Don't trust everything you read on the Internet"- Abraham Lincoln

pennylane
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Re: Should I co-sign for relative?

Post by pennylane » Tue Oct 30, 2018 6:19 am

denovo wrote:
Mon Oct 29, 2018 9:58 pm
pennylane wrote:
Mon Oct 29, 2018 5:36 pm
Thanks everyone for the input.

What did you decide to do?
Haven’t decided yet

Silk McCue
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Re: Should I co-sign for relative?

Post by Silk McCue » Tue Oct 30, 2018 6:53 am

pennylane wrote:
Tue Oct 30, 2018 6:19 am
denovo wrote:
Mon Oct 29, 2018 9:58 pm
pennylane wrote:
Mon Oct 29, 2018 5:36 pm
Thanks everyone for the input.

What did you decide to do?
Haven’t decided yet
There are so many details that we simply don't know about the relative asking you to cosign. Besides the risk to you financially and the risk to a lifelong relationship if something goes sideways I have a real concern that the relative is making an unwise decision in deciding that they need to lease a car for $900 that they can't qualify for (whatever the reason). Self control and a head screwed on straight would not look to you to solve this,at best nice, to have luxury. What is their employment track record, what are their earnings, do they have a budget, do they have a real on paper financial plan to get from here to there? If you enable them to live beyond their means you are unfortunately enabling a potential lifelong trail of impulse and unsound financial decisions. Once again I don't know your relative but regardless of how wonderful they are, how sincere they are, how .... they simply don't need help that will cause them to march down a path of financial responsibility. Better that they be disappointed that you won't cosign than to cause permanent damage to a relationship.

Cheers

bada bing
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Re: Should I co-sign for relative?

Post by bada bing » Tue Oct 30, 2018 7:18 am

I don't have any kids, but I have 7 young adult nieces and nephews. For all seven of them,
I jump started their credit scores. I sponsored them into Navy Federal Credit Union (family
military history required for membership) and I seeded a "shared secured loan". I also put
each of them as authorized users on 2 of my +25 year high limit credit cards (without giving
the actual card or charging permission). This results in jump starting a credit score to ~720
FICO within a couple months. The cost and risk to me is negligible, it just involves a little
effort.

You could do something similar if you wanted to help.I wouldn't do anything more and I probably
wouldn't do even that if the purpose was to obtain a $900 monthly car lease.

If I was to do that for the purpose of assisting qualifying for a $900 monthly lease payment,
I would also have a long serious talk about the stupidity of putting money you don't have into
things that depreciate as fast as new cars do. Truly urinating money down a rat hole. It doesn't
matter whether you can afford it, it isn't smart and a really poor habit to develop.

Grt2bOutdoors
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Re: Should I co-sign for relative?

Post by Grt2bOutdoors » Tue Oct 30, 2018 7:24 am

Only if you are able and willing to gift your relative $900 a month. Otherwise, NO!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

money_bunny
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Re: Should I co-sign for relative?

Post by money_bunny » Tue Oct 30, 2018 7:35 am

Hello:

1. Nope not co-signing for a Maserati.

2. I'm a big fan of being "Supportive not enabling." Ok you need a ride to get to and from work. I'll help you out with the down payment for a used Corolla, Fiesta, Accent, or Mazda 2. Guy wants a "rock star" car, but can't really afford one. See #1. Around where I used to live 3 series were the "Entry level status car" with many 20 year olds driving VW's with big monthly payments. I would love for you to follow up with what happens if you challenge that thought process.

3. People who like the "Finer things" without being able to actually afford them is a large red flag in my book. Especially when they need other people to help them out. Their family so you are stuck with them.

To paraphrase Rich Dad Poor Dad, this person want's their toys first before earning the money.

magicman
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Re: Should I co-sign for relative?

Post by magicman » Tue Oct 30, 2018 7:38 am

Don't do it

JonSharpe
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Re: Should I co-sign for relative?

Post by JonSharpe » Tue Oct 30, 2018 7:44 am

I'm going to jump on the bandwagon here and say no way, not for an expensive car lease. He should be able to to figure out how to get by with a cheaper car or other alternative until he can save up enough money or otherwise shore up his situation so he doesn't need a co-signer.

It could end very badly.

Thegame14
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Re: Should I co-sign for relative?

Post by Thegame14 » Tue Oct 30, 2018 8:15 am

no, heck no. You could end up with a lease of $900 for a car that has lost 30% of its value once driven off the lot and be stuck with taking a big loss, or this will become your new car with the car payment.

TN_Boy
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Re: Should I co-sign for relative?

Post by TN_Boy » Tue Oct 30, 2018 8:19 am

pennylane wrote:
Tue Oct 30, 2018 6:19 am
denovo wrote:
Mon Oct 29, 2018 9:58 pm
pennylane wrote:
Mon Oct 29, 2018 5:36 pm
Thanks everyone for the input.

What did you decide to do?
Haven’t decided yet
I'm curious, is the lease indeed for a luxury car? If the situation is that simple, I'm with most the posters here -- why on earth would you co-sign for something a person cannot afford?

If it is more complicated (a lease for some sort of a work vehicle, as part of starting a business or something??), can you give us any more details?

Pobre
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Re: Should I co-sign for relative?

Post by Pobre » Tue Oct 30, 2018 8:20 am

pennylane wrote:
Mon Oct 29, 2018 11:00 am
A close relative of mine has asked me to co-sign for them, lets assume defaulting was not a big risk but the necessity for a co-signer is due to unestablished credit. Would you co-sign this?

The co-sign is for a vehicle lease of about $900/month
No

tim1999
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Re: Should I co-sign for relative?

Post by tim1999 » Tue Oct 30, 2018 8:23 am

pennylane wrote:
Mon Oct 29, 2018 5:36 pm
Thanks everyone for the input.
Come on, tell us what kind of car it is, us car guys and gals here want to know...

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HomerJ
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Re: Should I co-sign for relative?

Post by HomerJ » Tue Oct 30, 2018 8:52 am

TN_Boy wrote:
Tue Oct 30, 2018 8:19 am
If it is more complicated (a lease for some sort of a work vehicle, as part of starting a business or something??), can you give us any more details?
This would make more sense, and would be more reasonable.

But co-signing is dangerous, not just because you'd owe the money, but it could damage your credit rating as well.

Is there a way where one can co-sign, and get a copy of the statements each month? That way you'd know if the person was falling behind. If it goes to collections, it's too late. They will come after the OP for the money, AND the OP's credit rating will nosedive as a deadbeat.
The J stands for Jay

pennylane
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Re: Should I co-sign for relative?

Post by pennylane » Tue Oct 30, 2018 9:37 am

Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.

KlangFool
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Re: Should I co-sign for relative?

Post by KlangFool » Tue Oct 30, 2018 9:42 am

pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
Just say no. Why do you think someone that lease a luxury vehicle has good financial sense?

KlangFool

Silk McCue
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Re: Should I co-sign for relative?

Post by Silk McCue » Tue Oct 30, 2018 9:49 am

pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
Your liability in case of a car accident needs to be fully explored. A quick Google search suggests that you are not liable in case of an accident if judgement exceeds insurance coverage and other sources suggest you might be. I certainly don't know the answer but you absolutely must know that answer.

For me personally I can't imagine asking a relative to co-sign for me so that I could spend more money than necessary on a car just to drive status. I would be embarrassed to do so. This is an excerpt of what I posted earlier this morning and I think it is a very important point.
What is their employment track record, what are their earnings, do they have a budget, do they have a real on paper financial plan to get from here to there? If you enable them to live beyond their means you are unfortunately enabling a potential lifelong trail of impulse and unsound financial decisions.
Cheers

MichCPA
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Re: Should I co-sign for relative?

Post by MichCPA » Tue Oct 30, 2018 10:00 am

1. This car is more than I pay for housing.

2. Also, if the lessor has decided that the relative can't pay, why have you decided the situation is different?

3. Over a 3 year lease, this would be $32,400. Consider that at 3 years a car will be worth half of its new value. Is the car really worth 60k or are you getting hosed by the fact that its a lease?

student
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Re: Should I co-sign for relative?

Post by student » Tue Oct 30, 2018 10:01 am

pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
For me, it is simple and the answer is no. I am driving a 10 years old Toyota and I am not going to co-sign a luxury vehicle.

stoptothink
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Re: Should I co-sign for relative?

Post by stoptothink » Tue Oct 30, 2018 10:11 am

pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
:oops: I assume that this relative is going to pay you the difference if you are willing to co-sign? You can't possibly be actually considering this, at least without them providing something to you for taking on a huge risk.

realmad
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Re: Should I co-sign for relative?

Post by realmad » Tue Oct 30, 2018 10:15 am

my 2 cents , if you are compelled to help out then may be gift $1000 or $1200 so it will cover first 5-6 months of the difference.

Jags4186
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Re: Should I co-sign for relative?

Post by Jags4186 » Tue Oct 30, 2018 10:21 am

6 months from now

“I co-signed a $900/payment for a relative and now the car company is coming to me for payment. What should I do?”

Jags4186
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Re: Should I co-sign for relative?

Post by Jags4186 » Tue Oct 30, 2018 10:23 am

pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
It doesn’t take much to have “top tier” credit. Just don’t miss payments. If after 3 years of steady payments on this car and presumably on other things your relative isn’t “top tier” then I’m afraid that he hasn’t been paying all his bills on time or his debt to credit ratio is too high.

pennylane
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Re: Should I co-sign for relative?

Post by pennylane » Tue Oct 30, 2018 10:24 am

MichCPA wrote:
Tue Oct 30, 2018 10:00 am
1. This car is more than I pay for housing.

2. Also, if the lessor has decided that the relative can't pay, why have you decided the situation is different?

3. Over a 3 year lease, this would be $32,400. Consider that at 3 years a car will be worth half of its new value. Is the car really worth 60k or are you getting hosed by the fact that its a lease?
Vehicle has an MSRP of $84,000.

RickBoglehead
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Re: Should I co-sign for relative?

Post by RickBoglehead » Tue Oct 30, 2018 10:29 am

pennylane wrote:
Mon Oct 29, 2018 11:00 am
A close relative of mine has asked me to co-sign for them, lets assume defaulting was not a big risk but the necessity for a co-signer is due to unestablished credit. Would you co-sign this?

The co-sign is for a vehicle lease of about $900/month
Not even when hell freezes over. No. Never. Not happening.
pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
The relative has two options:

1) Spent way more than they should for a car they can't afford, as evidenced by their poor credit.

2) Lease/purchase a car they can afford, build their credit, and then blow their money on a car they shouldn't get when they improve their credit.

Image

RickBoglehead
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Re: Should I co-sign for relative?

Post by RickBoglehead » Tue Oct 30, 2018 10:33 am

RickBoglehead wrote:
Tue Oct 30, 2018 10:29 am
pennylane wrote:
Mon Oct 29, 2018 11:00 am
A close relative of mine has asked me to co-sign for them, lets assume defaulting was not a big risk but the necessity for a co-signer is due to unestablished credit. Would you co-sign this?

The co-sign is for a vehicle lease of about $900/month
Not even when hell freezes over. No. Never. Not happening.
pennylane wrote:
Tue Oct 30, 2018 9:37 am
Apologies for the lack of details:

This is for a personal vehicle, not a work vehicle.

Relative is currently leasing a luxury vehicle that is due back in a few days the current payment on it is $600/month which was paid for ontime for the past 3 years and is being given back in perfect condition.

The vehicle in question is a Range Rover

The reason I was asked to co-sign was because the relative could get the vehicle for $700/month (aggressive deal for this car) if they had a co-buyer. If they took the vehicle on without a cobuyer then they fall into a higher risk tier and the payment jumps to $900/month.

Hope this clears up any questions.
The relative has two options:

1) Spent way more than they should for a car they can't afford, as evidenced by their poor credit.

2) Lease/purchase a car they can afford, build their credit, and then blow their money on a car they shouldn't get when they improve their credit.

Image
Jags4186 wrote:
Tue Oct 30, 2018 10:21 am
6 months from now

“I co-signed a $900/payment for a relative and now the car company is coming to me for payment. What should I do?”
Yup.

JediMisty
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Re: Should I co-sign for relative?

Post by JediMisty » Tue Oct 30, 2018 10:45 am

Did anyone mention that the 900 shows up as if you're making the whole payment for purposes of determining how much you can borrow should you need to?

That, plus what everyone else has said. No. Nyet. Nope. Never. Co-sign. Seriously. You may also be liable in the case of an accident, since your name will be on the title. Then you will be sued right along with the relative. Happened to me when my son was driving his car, which was titled to me to reduce insurance costs.

Arrrrrgh. Insurance company settled out of court, but I had some sleepless nights.

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Clever_Username
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Re: Should I co-sign for relative?

Post by Clever_Username » Tue Oct 30, 2018 11:03 am

Were there no used sedans the relative could get at a far more reasonable rate?
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

Nissanzx1
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Re: Should I co-sign for relative?

Post by Nissanzx1 » Tue Oct 30, 2018 11:12 am

I wouldn't consider it for even a second.

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Doom&Gloom
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Re: Should I co-sign for relative?

Post by Doom&Gloom » Tue Oct 30, 2018 11:40 am

pennylane wrote:
Tue Oct 30, 2018 10:24 am
MichCPA wrote:
Tue Oct 30, 2018 10:00 am
1. This car is more than I pay for housing.

2. Also, if the lessor has decided that the relative can't pay, why have you decided the situation is different?

3. Over a 3 year lease, this would be $32,400. Consider that at 3 years a car will be worth half of its new value. Is the car really worth 60k or are you getting hosed by the fact that its a lease?
Vehicle has an MSRP of $84,000.
Good grief!

I'm still a solid "no" vote, but your other post implied the relative can afford (and get financing for) something cheaper but you are attempting to save him money? Just give him the $200/mo cash difference and feel good about it. Or, even better, allow him to drive whatever he can afford.

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dm200
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Re: Should I co-sign for relative?

Post by dm200 » Tue Oct 30, 2018 11:41 am

Maybe I missed it, but I don't think we have heard any more details from the OP?

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greg24
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Re: Should I co-sign for relative?

Post by greg24 » Tue Oct 30, 2018 11:42 am

pennylane wrote:
Tue Oct 30, 2018 10:24 am
Vehicle has an MSRP of $84,000.
I'm extremely surprised you are considering this.

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tyrion
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Re: Should I co-sign for relative?

Post by tyrion » Tue Oct 30, 2018 11:44 am

Has he offered to give you half of the monthly savings?

You are taking on all the risk here, there might as well be some reward involved too. Although honestly, I wouldn't do it even if he gave me the full monthly savings.

Silk McCue
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Re: Should I co-sign for relative?

Post by Silk McCue » Tue Oct 30, 2018 11:53 am

dm200 wrote:
Tue Oct 30, 2018 11:41 am
Maybe I missed it, but I don't think we have heard any more details from the OP?
You missed it from 10:37am today above.

viewtopic.php?f=2&t=262607&start=50#p4189914

Cheers

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dm200
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Re: Should I co-sign for relative?

Post by dm200 » Tue Oct 30, 2018 12:04 pm

Silk McCue wrote:
Tue Oct 30, 2018 11:53 am
dm200 wrote:
Tue Oct 30, 2018 11:41 am
Maybe I missed it, but I don't think we have heard any more details from the OP?
You missed it from 10:37am today above.

viewtopic.php?f=2&t=262607&start=50#p4189914

Cheers
Thanks..

KlangFool
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Re: Should I co-sign for relative?

Post by KlangFool » Tue Oct 30, 2018 12:17 pm

pennylane wrote:
Tue Oct 30, 2018 10:24 am
MichCPA wrote:
Tue Oct 30, 2018 10:00 am
1. This car is more than I pay for housing.

2. Also, if the lessor has decided that the relative can't pay, why have you decided the situation is different?

3. Over a 3 year lease, this would be $32,400. Consider that at 3 years a car will be worth half of its new value. Is the car really worth 60k or are you getting hosed by the fact that its a lease?
Vehicle has an MSRP of $84,000.
pennylane,

Why in the world that you think someone has any good financial sense to lease such a car? It is cheaper and safer for you to give the person the savings ($200 X 36) = $7,200.

KlangFool

psteinx
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Re: Should I co-sign for relative?

Post by psteinx » Tue Oct 30, 2018 12:25 pm

Given additional details by OP, this is an easy hard no.

$84K vehicle is not a need.

Co-signing is not a need. Relative can get lease on their own, but just wants to save a buck or two. Better would be to save many bucks with a reasonable vehicle. The lessor obviously sees real credit risk in the relative, or would not be boosting the price by $200/mo absent a co-signer.

fposte
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Re: Should I co-sign for relative?

Post by fposte » Tue Oct 30, 2018 12:37 pm

Clever_Username wrote:
Tue Oct 30, 2018 11:03 am
Were there no used sedans the relative could get at a far more reasonable rate?
Yeah, I'm seeing used Range Rovers in the 20s and 30s.

I think responders are generally operating on the same principle, but I haven't seen it clearly articulated yet: I might put myself on the line to help a relative with a need, like a car for necessary transport or tractor for farming. I wouldn't put myself on the line to help a relative get the expensive toy of their dreams. This seems very much to be the latter.

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