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I Cosigned on My Wife’s Car But Now I Can’t Get One. – Peter

“Dear Steve,

I cosigned on my wifes car so she could get one and now i want to get my own car and cant because i cosigned for her and im not able to get a second car loan for myself, and her credit is not good enough to refinance in her own name, the dealership said if i can get out of the loan then i can get my own loan and into my own car.

How can i get out of this loan and into my own loan other then refinance or paying thousands of dollars?

Peter”

Dear Peter,

You can’t. The reason they looked for a cosigner to begin with was because her credit was crappy. By cosigning you promised to be responsible for the loan. The lender does not want to let you off the hook and be left with someone with worse credit.

The only way out of this mess is for her to payoff the loan or for you to buy a used car for cash. If she pays off the loan it will release you from any liability for the loan. Probably what the car dealer finance manager is saying about your loan request is that your income and credit score does not support the extension of even more credit you would be responsible for.

If either of you are looking for a place to potentially borrow money to use to either payoff the current loan or buy you a used car, consider LendingClub.com. LendingClub is a network of people that lend to other people. Not a bank.

As far as cosigning goes, never ever cosign a loan ever again. It will almost always come back to bite you in the ass. Lesson learned,

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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