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Can the cosigner of a leased car take full responsibility of the vehicle during a loan repossession?
My mom signed as the primary borrower on a car lease for my husband because he didn’t qualify. My husband made the payments, had the insurance, and we all knew it was his car, but it’s now repossessed. Is there any way my mom can remove herself from being liable for it and my husband take on full responsibility instead of my mom?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Having your vehicle repossessed can be burdensome both financially and mentally, and I’m sorry you’re all caught up in such an unfortunate situation.
The rights your mother and husband have to the car vary based on how they signed. The primary on the loan is the person who needs the car but can’t get it on their own. The cosigner is the person whose credit is being used to qualify for the loan.
- They cannot take over the ownership responsibilities of the primary borrower.
- They have no legal rights to, or ownership of, the car they’ve cosigned for.
- They cannot be the sole or primary driver.
- They cannot have the insurance for the car in their name.
- They are strictly used to offer financial security in the event the primary borrower defaults on payment.
- Has the same financial responsibility as the primary borrower.
In this situation, the role of your husband and mother should have been reversed. If your husband did not qualify on his own, having your mom as the cosigner should have made him eligible. Typically, the cosigner has better credit than the primary borrower or leaseholder, which is why they help high-risk borrowers get approved.
Additionally, leased cars are only repossessed for missed payments or breach of contract, meaning either your mother and husband failed to keep up with payments, or the lender learned they were misled about who the primary borrower was.
I wish you the best in resolving this situation, and once settled, your best course of action is to shop around and find a lender who will approve your husband on his own, or with a cosigner.
Like many aspects of car ownership, leases can be confusing, but I hope this helps clarify. Once he’s set up with a vehicle that’s under his name, you can take the confusion out of purchasing
car insurance
and find the best rate by comparing quotes from over 50 different insurance companies, including Nationwide, Allstate, and Travelers, for free by using the Jerry
app. View full answer
- Gregory R.
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