Co-Sign For Daughter to Help Her Get an Auto Loan?

Q: What if the dealership wants to put me as the main applicant but I want to be the co-signer but they keep telling me that it’s the only way that my daughter can get a car?

Monica – Sacramento, California

A: It really doesn’t matter who is first or second on a contract because you’re both equally responsible for the loan. If the dealer is trying to do it in your name only and the car’s for your daughter, then that is fraud and called a straw purchase.

Angela Slaton – Dealer Development Rep., Equity Auto Finance