A solidarity car loan is a loan with another person, called a co-borrower. You both share the loan, the car and all the responsibilities that go with it. We will take a look.
Since the co-borrowers have taken out a joint car loan, the lender combines your income together to help you qualify for a loan. For this reason, a co-borrower usually needs to be a spouse or life partner – you can’t combine your income with just anyone.
When you’re a co-borrower with someone else, you both share ownership equally in the eyes of a lender. Lenders hold both parties responsible for making timely payments and keeping up with all necessary parts of auto financing, such as full coverage insurance.
Joint auto loan requirements
Obtaining a joint car loan can help you increase the amount of financing you are eligible for, as lenders consider both of your incomes.
However, since you are only applying for one loan, the credit score requirement may still be a barrier for some borrowers. Most lenders only look at the lower of the two joint car loan credit scores to determine things like loan terms and interest rates.
Plus, you both have to complete all other loan requirements yourself. This means that you must both be able to prove your income, residence (usually at the same address) and employment, as well as being able to provide personal references and a combined down payment.
Is A Joint Auto Loan Right For You?
A joint auto loan can be useful if you’re struggling to find enough income to take out a loan on your own. But, if you need help getting a loan and don’t want someone to share the car with you, a co-borrower may not be right for you.
There is another type of help you can get when you are having trouble qualifying for a car loan called a co-signer. Co-signers do not appear on your vehicle title as the holder of a joint car loan, but they do agree to help you make all payments if you fall behind.
Co-signers help you in the event that your credit is too low, by lending you their good credit rating to qualify you for financing. However, they must also be able to qualify for the loan on their own, and your income cannot be combined.
Be aware that whatever happens to a loan that is both good and bad affects both you and your co-signer, just as it would affect both of you on a joint car loan.
Ready to find auto financing?
If you’re ready to take out a car loan, but don’t want to go it alone, you have options. Whether you need a bad credit car loan, need a co-signer, or are looking for a joint car loan, we want to help. TO Auto Express Credit, we have the nationwide network of dealers you need. They are registered with subprime lenders who can help in many types of situations.
To get started now, simply complete our quick and free auto loan application form, and we’ll get to work connecting you with a local dealership.