Found an issue on this page? Let us know and we will look into it as soon as possible.
WHAT IS THE DIFFERENCE BETWWEN CO-BUYER and OTHER OWNER
Anonymous4 views1 answers
Im a fiance manager at an auto dealership in NJ. A generic retail installment contract has a line on the contract which says "co-buyer" and another line says "other owner". On the contract it defines other owner as "a person whose name is on the title to the vehicle but does not have to pay the debt. The other owner agrees to the security interest in the vehicle given to us in this contract. I have had some lending institutions tell me they do not accept "other owners" as it is considered a "straw" purchase. My question is assuming the buyer is credit worthy and approved can the dealer use the "other owner" to insure title and register the car in NJ, or is it at the descretion of the lender. Thanks
The lender is just that, the lender. It is the lien holder, whether the car is leased or purchased. The driver is the buyer, and a co-buyer would be a spouse, or if a young adult without a credit history can not qualify for the loan, the parent may have to be a co-buyer, or may be merely a guarantor of the loan. In lieu of being a guarantor, and facing a battle regarding who the lender may proceed against in the event of a default, I can see the lender requiring the use of the term "other owner."
The dealership if given a Power of Attorney, among the many documents signed, that authorizes the dealer, on behalf of the lender and/or driver, to register the vehicle and get plates from the NJMVC.
