I purchased a vehicle this past weekend and due to my income was recommended to get a co-borrower for loan approval. When I picked up the check from my financial institution my name was the only name listed on the auto draft check to bring to the dealership, no co-borrower was listed. Is the co-borrower still financially responsible for anything having to do with this vehicle loan? Nothing was ever signed by co-borrower, an auto draft check has cleared purchase is finalized. Since the purchase the bank has called to issue paperwork in the mail to have co-borrower sign financial responsibility. Co-borrower is not connected to vehicle title but will still be on the bank loan. Does this make sense?

2 Answers 2


It is likely that if you do not have the cosigner sign the paperwork the bank will rescind the loan. They have issued the check, so you can purchase the car, with the thought that you will follow through with all necessary signature for the purposes of your convince and providing good customer service.


The cosigner is not responsible until they sign the paperwork.

In order for you to acquire this loan and the car, they will need to also sign the paperwork (I assume you already have).

If they do not sign, the bank will rescind the loan and you will be required to return the car to the dealership.

Editorially, not signing would be a great option for you and the cosigner. Why, if you have such low income, would you strap yourself with car payments? The bank has told you (by requiring a cosigner) that getting a loan is a bad idea. Listen to them. They fully expect, and it will likely occur, that the cosigner will have to make payments for you at some time in the future. Why would you do that to a person who cares for you?

  • Thank you for your response Pete. The funds are not of issue, it is the time of employment with the new company that has the income in question. The co-borrower is completely comfortable with signing, just was unsure of legal responsibilities due to lack of signature on initial paperwork. Thank you again, everything that you said makes sense in perspective. Commented Feb 28, 2018 at 14:27

The name on the check is generally unrelated to who is responsible for the loan.

When purchasing cars over the years I have been in 3 different situations:

  • Almost all loan, I paid a 5% down payment.
  • Very little loan, I only needed to borrow 25% of the price
  • No loan.

In all three situations the check was made out to Car Dealer X or Me. This way if there is a problem I can redeposit the money. The lender does care how the title is handled because they have to protect their interest. But the dealer doesn't need to know how many people are on the loan, or how much is loan.

As to the presence of the co-borrow on the title that is up to the lender. My credit Union has been flexible on this. They have not cared if the co-borrower was listed on the title. They were only concerned about everybody signing the loan documents, before they contributed money to the deal.

  • Great info, Thank you for the input. It's been 20 years since I've been through this process, I feel a little rusty LOL this all makes perfect sense. Thanks again for the clarification. Commented Feb 28, 2018 at 15:35

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