Robert
Irvine,#2Consumer Comment
Sun, September 04, 2011
When you get a co-signer BOTH are EQUALLY responsible for the loan. If you co-sign BOTH borrowers will be on the title. It really does not matter who is listed first.
As for the interest rate they did use his Credit score to get the lower rate. Because you are still a risk it would not be as low as if he got one on his own, but lower than you could have gotten if you tried on your own. However, YOU are the one taking advantage of it because you still get "credit" for making the payments, but at a lower rate than you could have gotten.
Now, you can not take his name off the title until the vehicle is paid off. That would be the same regardless if he was first or second on the loan. When your Grandfather does pass away, it would be handled just like anything else in his Estate. Basically once you go to sell the car you would need to show proof of his death and then you would be able to get a clean title in your name only to sell it.