Does a Cosigner on an Auto Loan Affect the Interest Rate?

Get Car Financing
Even with poor credit.

November 9, 2016

When one offers to cosign an auto loan, it indicates that the co-signer has the personal creditworthiness to pay off the loan or take over the payments should the originator of the loan default. Since the co-signer is effectively the person the financial institution will be considering as the funding source for repayment of the loan, then yes the co-signer on an auto loan affects the interest rate. Because the bank, credit union or manufacturer's finance arm considers them the "real" owner of the vehicle, until the owner has established a positive track record of payments on his or her own. That period can take from a year to 24 months.

See what kind of interest rates you can get >>

Free Credit Score

Get your free credit score now! Get a copy of your most recent credit score.

Get Your Free Score

Auto Insurance

Get competitive quotes on insurance in your area.

Sell Your Car

We will buy any car, running or not, with or (in most cases) without the title.

Get My Price

Need a Car Loan?

It only takes a minute.
Search New Cars by Loan Payment »

View estimated loan payments based on local rebates and financing offers.

Loan approval is not guaranteed and is subject to credit application and approval of the lender. Individual loan terms may vary. Use of this website constitutes acceptance of CarsDirect.com's Terms of Use, Disclaimer, Privacy Policy, and Cookie Policy.

Privacy Policy|Terms of Use|Cookie Policy|Disclaimer
COPYRIGHT 1999-2019 MH Sub I, LLC dba CarsDirect.com