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Is a guarantor (aka co-signer) of a car loan required to be on title by the DMV in the State of California?

6 views 2 answers
I have been taking to banks/credit unions about my father co-signing my car loan. Everyone was referring to him as the co-signer when in fact they meant "co-borrower", meaning he would be on loan AND on title. (I was told most banks use co-borrowers only now). My dad does not want to be on the title of the vehicle due to liability/asset purposes. I finally found an out of state credit union who assured me my dad would be a guarantor/co-signer only and would not be co-owner or on title/registration. The dealership "claimed" that was not true and in California the DMV puts the co-signer on the registration and the title as an owner. Who is correct...the credit union or dealer? Can he be a cosigner and not be on title in California? Or will the DMV insist on it for just a guarantor?

Attorney Answers

2
Dana Shultz ·
It appears that the dealer's representative may be confusing co-signers and co-owners. The application form at the link below requires that all co-owners be listed. However, there is no requirement - indeed, no proper way - to include a co-signer who is not a co-owner. This makes sense. The DMV wants to record (a) who owns the vehicle and (b) as applicable, who has a security interest in the vehicle (i.e., the lender). The fact that some third party may be obligated to pay a loan secured by the vehicle is of no interest to the DMV.
0 upvotes
Kevin Sullivan ·
a co-owner would be on title. A co-signer is simply a guarantor of payment if the borrower flakes out and does not pay.
0 upvotes

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