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Car Loan Question...
My sister has ZERO credit and wants to buy a used car for somewhere around $8500. She has $1000 as a downpayment and she wants me to cosign the loan for her which I really don't want to do. Does she have any other options right now? Dealer financing? Credit Union? I don't want to cosign on this loan if there is another option....
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Re: Car Loan Question...
Don't cosign as that doesn't help her at all. Her interest rates will suck because of her credit rating. You have absolutely no rights to the car. Her insurance rates will suck because she has bad credit. She will have to have a low deductible because it is financed.
If you want to help, your best approach ... if you could afford it, would be to buy the car and have her make payments to you. At least you would have the car if she can't make payments.
NEVER COSIGN
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Re: Car Loan Question...
Agreed that with today's wave of 'subprime' loan delinquencies (which includes mortgages, car loans, credit cards etc.) the terms that will be available on any loan for a person with a s#!tty credit rating and less than 20% down are going to be ugly. Also agreed that, as a cosigner, you would be taking most of the risk with essentially zero recourse.
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Re: Car Loan Question...
Her options will be paying a high finance rate. She might even have to put more money down.
Unless, you truly believe she is stable and will not default on her loan, I don't see why not. But if she did, would it cause problems for you two if you did have to make payments?