Carbuyer Alert: Co-signer Scam

When customers don't qualify on their own for financing, some dealerships often suggest that they get a friend to co-sign. Often, however, a salesperson will tell the co-signer that he/she is only signing as a reference to help the primary buyer. This is false. If you are thinking of co-signing for someone, you should know that the co-signer is equally responsible for paying the debt and can be sued if the primary buyer doesn't make payments.

What you should do:

• In most cases, it is not a good idea to be a co-signer for any type of loan.

• Only co-sign if you are prepared to make the payments for the car