<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by questioner:
Is the co-signer on an auto loan automatically a co-owner of the car? If something happens to the person buying the car, does the co-signer get the car? I am in California and am concerned about my son possibly being "ripped off."<HR></BLOCKQUOTE>
My response:
You may want to co-sign for the loan but, that in and of itself does not make you a co-owner. If co-owning the vehicle is your wish, you need to have your name placed on the Title of the vehicle; e.g., "John Doe and/or Jim Doe, owners".
This is the only way Title and ownership can automatically pass to you in the event of a death. Without co-ownership, you get the debt, but the actual vehicle will only pass to the "estate" of the deceased owner, and not directly to you. This has other implications but, suffice it to say, without your name on the Title, you may never see the car again if it should be seized or sold to satisfy a decedent's debts. Again, you would only get the debt if the car isn't paid off.
However, there are other implications to placing your name on the Title of the vehicle, so you may want to think twice about that also. For example, in the event of an accident, and depending on the situation, if your name is on the Title, you may also be held liable for damages. You need to check your State's laws in this regard in order to determine if, or to what extent, there may be liability in the co-ownership of a vehicle.
If you finally decide to place your name on the Title of a vehicle being driven by someone with little to no driving experience, it's always a good idea to make sure there is heavy insurance coverage and perhaps, an "Umbrella Insurance Policy".
Good luck.
IAAL
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