Does an auto loan co-borrower have shared equity in the vehicle?
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Does an auto loan co-borrower have shared equity in the vehicle?
I signed an auto loan with someone as a co-borrower roughly 6 months ago as a favor to them. Unfortunately, they’ve stopped holding their end of the agreement. The lender has informed
me that as a co-borrower I have equal rights to the car and that my name is on the title. However, my name is not signed on the physical title of the vehicle that was signed at the
dealership after we completed signing
the loan paperwork. My question is
what legal recourse do I have, if any, to
access the equity I have in the vehicle?
And being a New York State resident,
are there any New York laws specific to
this? Thank you in advance for any
information you are able to provide.
Asked on February 26, 2018 under Business Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If your name is not on the title, you are not an owner of the car and do not have an interest in the equity. You are a co-borrower or guarantor of the loan only: you are obligated under the loan, to ensure it is repaid, but are not entitled to the equity. A loan does not, by itself, give an interest in property, such as a car.
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