Co-signer

A co-signer is an additional person (often a family member) who signs the auto loan contract along with the primary borrower, agreeing to take equal responsibility for the debt. In dealership financing, a co-signer is typically used when the primary buyer has insufficient credit history or a low credit score to qualify on their own. The co-signer’s stronger credit can help secure approval or better interest rates. Canadian dealerships must ensure co-signers understand their obligations: if the buyer fails to make payments, the co-signer is legally required to pay. Proper identification and credit checks are done for co-signers, and all parties are informed of the commitment involved.