Do I need a co-borrower on a car loan?

Man and woman co-borrowers looking into new car


If you plan to share a vehicle, or you’d like to maximize your chances of approval and a larger loan amount, applying for a car loan with a co-borrower could be the right choice for you.

A co-borrower is part of a joint auto loan in which each party has equal rights to the use and ownership of the vehicle, and responsibilities for the loan. As such, the details of both borrowers are required on the financing application, and will be included on the car’s title.

So how does a co-applicant actually help your application? Lenders will take a range of criteria into account, but an increase in the available income to repay a loan, which improves the debt-to-income ratio, is usually significant. Applying with someone who has a good credit score is important in most cases, too.


Co-borrower vs. cosigner

It’s useful to know that a coborrower and cosigner are two different things. An auto loan cosigner is like a guarantor for the note who agrees to make any missed payments and even repay the full loan amount if needed. Unlike a co-borrower, they have no rights to the vehicle.

You may want a cosigner if you don’t intend to share the vehicle but would still like the support a creditworthy parent, family member or friend can offer your application and potential repayments.


Apply for a car loan with co-borrower online

If you’ve been declined for an auto loan, would like a larger loan amount, or co-owning a vehicle simply makes most sense, RoadLoans may be able to help.

Our online application lets you to apply with a co-applicant in just minutes, and we provide instant decisions. All we ask for are a few basic pieces of information from each applicant including contact details, date of birth, Social Security number and income. If approved, you’ll receive multiple loan offers to give you options. Select the best one, download your loan packet and visit the dealer ready to shop.

Apply for a car loan with a co-borrower online.


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