A joint auto loan is a loan with another person, known as a co-borrower. You both share the loan, the car, and all the responsibility that comes with it. Let's take a look.

Co-Borrowers Defined

What Is a Joint Auto Loan?Because co-borrowers are in a joint auto loan, the lender combines your income with one another in order to help you qualify for a loan. For this reason, a co-borrower is typically required to be a spouse or a life partner – you can't comingle your income with just anyone.

When you're a co-borrower with someone else, you both split the property equally in the eyes of a lender. Lenders hold both parties responsible for making timely payments, and for keeping up with all the necessary parts of auto financing, like having full coverage insurance.

Joint Auto Loan Requirements

Getting a joint auto loan can help you increase the amount of financing you're eligible for because lenders are taking both of your incomes into account.

However, since you're only applying for one loan, the credit score requirement can still stand in the way for some borrowers. Most lenders only look at the lower of the two credit scores on a joint car loan to determine things like loan terms and interest rates.

Additionally, you must both meet all the other requirements of a loan on your own. This means you must both be able to prove your income, residence (typically at the same address), and employment, as well as be able to provide personal references and a combined down payment.

Is a Joint Auto Loan for You?

A joint auto loan can be helpful if you're struggling to come up with enough income to take on a loan by yourself. But, if you need help getting a loan and don't want someone to share the car with you, a co-borrower may not be right for you.

There's another kind of help that you can get when you're having trouble qualifying for a car loan, called a cosigner. Cosigners aren't on your vehicle title as a joint auto loan holder, but they do agree to help make any payments if you fall behind.

Cosigners help in the event that your credit is too low, by lending you their good credit score to qualify for financing. However, they must also be able to qualify for the loan on their own, and your income can't be combined.

Know that anything that happens to a loan both good and bad affects both you and your cosigner, just like it would affect both of you on a joint auto loan.

Ready to Find Auto Financing?

If you're ready to take on a car loan, but you don't want to go it alone, you have options. No matter if you need a bad credit auto loan, a cosigner, or are looking for a joint car loan, we want to help. At Auto Credit Express, we have the nationwide network of dealers you need. They're signed up with subprime lenders that can help in many types of situations.

To get started now, simply fill out our fast, free, car loan request form, and we'll get to work connecting you with a local dealer.