Guaranteeing someone's car payments

[khaepmu]

I have a close friend who guaranteed his relative's car payments. Meaning if they don't make their monthly payments he is responsible. But he no longer wants to carry this burden and wants to get out of it. The finance company told him he is responsible until the

relative gets a new person to  guarantee her. A local policeman said that that is not entirely  true but did not give him  any details. Is  there an easy legal way for him to get out being responsible for the payments  should  his sister fail to make them he wonders. He is, according to him, not really worried but they have had serious arguments about family matters. Any reasonable advice would be appreciated. 

 

Please, no sermons about taking on these kinds of responsibilities.

[stevenl]

He signed a contract, he is stuck now. As the finance company said, finding someone else to take over they find acceptable is his only option.

[quandow]

I went through this with my son. I cosigned on an auto loan so he could get a lower interest rate. THEN he started exhibiting VERY irresponsible behavior, a DWI being one of them, and if he ever got in a serious accident they would have come after me. The only way for your friend to get out from under this situation is for the other person to refinance the loan with no cosigner.

[Andycoops]

Get some legal advice. 

[lordblackader]

6 hours ago, stevenl said:

He signed a contract, he is stuck now. As the finance company said, finding someone else to take over they find acceptable is his only option.

Correct answer. You sign up as a guarantor, it's for the entire period of the contract you signed up for. 

[BritManToo]

8 hours ago, khaepmu said:

Is  there an easy legal way for him to get out being responsible for the payments

Yes, he can pay off the entire loan himself.

[Cyclone88]

The answer is in the word...

GUARANTOR...

 

Your friend guaranteed to make full payment if the buyer defaulted.

He can't all a sudden tell the bank that he will no longer be responsible.

 

If he could, what would be the point of a guarantor? 

 

He signed on the dotted line, now be needs to honour his word like a true  gentleman. 

 

[1FinickyOne]

They would not have given the car without a guarantor... until the car is paid off - or a guarantor is replaced, the responsibility is his..

[Searat7]

In the USA the co-signer is not only responsible for missed payments but very often the bank can demand payment in full from guarantor if the payments are not made as scheduled. My brother in law once told me “ A co-signer is an A-hole with a pen”.  

[tryasimight]

3 hours ago, Searat7 said:

In the USA the co-signer is not only responsible for missed payments but very often the bank can demand payment in full from guarantor if the payments are not made as scheduled. My brother in law once told me “ A co-signer is an A-hole with a pen”.  

What do you mean? 

The guarantor is an a hole? 

Usually the guarantor is your mum or dad. 

[smotherb]

12 hours ago, Searat7 said:

In the USA the co-signer is not only responsible for missed payments but very often the bank can demand payment in full from guarantor if the payments are not made as scheduled. My brother in law once told me “ A co-signer is an A-hole with a pen”.  

The co-signer has been taken advantage of by the person he tried to help. I think the A-hole is the person who reneged on his promise to the co-signer.

[Rimmer]

A post suggesting an illegal course of action has been removed also replies.

 

Apart from anything else the OP asks about an:

easy legal way

[mrwebb8825]

Your friend can just "buy" the contract (if he has the money) and then if she defaults, he owns the car at a cheaper cost which could then be resold to recoup the money. In the mean time, she is making the same payments to him.