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My husband thought that he was co-signing for his son's car. It turns out that they made my husband the primary loan holder but the dealership only put his son's name on the title.

His son is now in legal trouble and he will be unable to make the payments. We are now responsible for the loan on a car that we can't drive. Is this legal?

I am not asking about the difference between primary and co-signer. I was asking if anyone knew if the dealership has a legal obligation to put the primary loan holder on the title because in Ohio only the owner of a vehicle can purchase the yearly tags. I am fully aware that the loan is our responsibility. I

margaret
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It is a common misconception that a co-signer is not in the same bind as the loan taker - it is simply wrong; they are both fully responsible.

As a co-signer, you have full responsibility for the full loan, at any given time. The only difference to the loan taker is the courtesy that they ask the loan taker first for payment. Simply don't ever co-sign (unless you are willing to pay it all and get nothing for it).

Also, the loan company is not responsible for the physical ownership of the car. If your son (or whomever you co-signed for) has possession, or trashes the car, or doesn't give it to you, that's between you and him. With your co-signing, you committed to pay the loan back to them, including interest, period. No relation to the possession or usability of the car.

Aganju
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The legality of them assigning borrowers to titles would depend on your location, so I would suggest seeking legal advice if you plan to fight the lender or try to get out of the contract that was signed.

Another option is to check with your lender to see if they would approve a transfer of title from your husband's son, to your husband. Since he is the primary borrower, it's possible that they would have no problem allowing the title to be transferred to your husband while a lean exists on the car title. For this I would check with your local government to determine what documents would be required for this.

This would at least open up additional options in the future. You could then work on refinancing, selling, or using the car as you see fit.

curt1893
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