A vehicle co-signer is someone who helps a borrower with little to no credit get a vehicle loan. Many young buyers have to use a parent co-signer because they lack credit history. The rights of the co-signer depend on his role in the process. If your co-signer agrees only to take over the payments if you can't repay the loan, his name typically doesn't have to appear on the title.

Co-Signer versus Co-Owner

A co-signer simply guarantees your payments to help you to get financing to purchase a car. This typically affords him no rights to your vehicle. A co-owner or co-borrower, by contrast, is someone you purchase a vehicle with. In this scenario, the other person buys the car with you, and he usually has the right to take possession of the vehicle if you can't make the loan payments and he take them over.