What happens if a co signer on a car lease doesn’t get approved?
In the scenario the borrower has perfect credit and everything but still has a co signer anyways and is not required to. The co signer does not get approved then what happens. The borrower is approved by the way.
- TheRealLv 54 weeks ago
It's very easy: If one person can't be approved, they simply cannot be on the loan. Either they buy the car, or they don't. If they insist that both people are on the loan, then the loan application will be denied. One other thing of note: The applicant who was denied will have no legal rights to the vehicle. They cannot insure it, as they have no "insurable interest", nor register it, as it's not theirs to register. Last but not least, they cannot be on the title. There may be those here who argue that, but it is the truth. The reason for this is simple, and there is legal precedent for this. In the past, this was a common occurrence. One person would buy, and they'd add another (a spouse, for instance) to the title. There was a case where a buyer defaulted on the loan, and the car was repossessed. However, the second person on the title sued, claiming that the lender could not take the vehicle, as they were not in default, only the buyer was. Since then, financed vehicles are titled only in the name(s) of the buyer(s).Source(s): 20 years retail auto sales experience.
- Anonymous4 weeks ago
Nobody has a cosigner if they are approved without one.
- JetDocLv 74 weeks ago
If you don't NEED a cosigner to obtain a loan, then WHY would you want one?
- Anonymous4 weeks ago
If the borrower is "approved", then they do not need and shouldn't use a cosigner UNLESS they can get better terms on the loan, such as a substantially lower interest rate. A cosigner with worse credit usually not going to qualify better terms.
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- thebax2006Lv 74 weeks ago
People with good credit don't need a cosigner so your point is moot.
- champerLv 74 weeks ago
The deal goes through, with no mention of the co-signer.
- Kid MohawkLv 44 weeks ago
If the borrower has perfect credit, then such a scenario is very, very unlikely. In this case it would strongly benefit the lender to approve the lease, as the co-signer would terrible credit would make it so the lender could justify a higher APR than what the borrower would of gotten on their own.
But, to answer your question, the co-signer's name would be left off the lease.