Does an auto loan co-borrower have shared equity in the vehicle?

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Does an auto loan co-borrower have shared equity in the vehicle?

I signed an auto loan with someone as a co-borrower roughly 6 months ago as a favor to them. Unfortunately, they’ve stopped holding their end of the agreement. The lender has informed

me that as a co-borrower I have equal rights to the car and that my name is on the title. However, my name is not signed on the physical title of the vehicle that was signed at the

dealership after we completed signing

the loan paperwork. My question is

what legal recourse do I have, if any, to

access the equity I have in the vehicle?

And being a New York State resident,

are there any New York laws specific to

this? Thank you in advance for any

information you are able to provide.

Asked on February 26, 2018 under Business Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If your name is not on the title, you are not an owner of the car and do not have an interest in the equity. You are a co-borrower or guarantor of the loan only: you are obligated under the loan, to ensure it is repaid, but are not entitled to the equity. A loan does not, by itself, give an interest in property, such as a car.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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