Question about being a lease cosigner.
12-08-19, 03:20 PM
#16
Lead Lap
12-08-19, 03:32 PM
#18
Lexus Fanatic
I’m still astonished somebody would do this to a friend that was so magnanimous as to co-sign on their lease. Wow.
12-08-19, 04:44 PM
#20
Lexus Fanatic
It may not have been deliberate. One cannot always know in advance if one's job is going to be suddenly lost. I was fortunate enough to have a well-paying job and career where major layoffs were rare, and job security is almost taken for granted. But that is not the case with everyone, particularly in today's economy, which essentially treats labor as a commodity.
No excuse for that
12-08-19, 05:21 PM
#21
Lexus Fanatic
Sure, but he should have contacted Och before he missed a payment so he could preserve his credit by making the payment himself. The issue is not that he lost his job, the issue is he let the lease default before he bothered to give his co-signer a heads up.
No excuse for that
No excuse for that
Agreed....I wasn't trying to imply otherwise.
That's also not he only problem here. Late on the notice or not, his friend is also out of a job, and needs to find employment. That, ultimately, of course, is not Och's problem....his friend, not him, has to find a job. But, the sooner his friend finds new employment (particularly if he gets a comparable or better job) the sooner he can start to help compensate Och for any lost money and hit to his credit-rating. That's only fair.
You, yourself, of course, went through something similiar recently with your relatives and their attempts to sell their house.
Last edited by mmarshall; 12-08-19 at 05:30 PM.
12-08-19, 05:27 PM
#22
Pole Position
Sure, but he should have contacted Och before he missed a payment so he could preserve his credit by making the payment himself. The issue is not that he lost his job, the issue is he let the lease default before he bothered to give his co-signer a heads up.
No excuse for that
No excuse for that
12-08-19, 07:58 PM
#24
Lexus Fanatic
12-08-19, 08:03 PM
#25
Lexus Champion
Back in May or June of 2017 I acted as a lease cosigner on a BMW for a friend. He didn't have enough credit to get approved for a lease, so he asked me to cosign and I did. He called me today saying that he lost his job and did not pay for his car for the last two months and wont be able to pay for it going forward. His insurance is expiring next week and he is not renewing it, and will return the plates to DMV. His lease however is only expiring in May or June of next year.
Am I likely to be on the hook for the rest of the payments? Also, he will have to return the plates to the DMV, and has nowhere to keep the car. If something happens to the car while its not insured, am I likely to be on the hook for it as well?
Bad situation and a lesson for me.
Am I likely to be on the hook for the rest of the payments? Also, he will have to return the plates to the DMV, and has nowhere to keep the car. If something happens to the car while its not insured, am I likely to be on the hook for it as well?
Bad situation and a lesson for me.
12-08-19, 08:05 PM
#26
Lexus Champion
A real "friend" would never have asked for a co-sign at all. A real friend would not put someone in that awkward situation to have to say "no", and would have leased a car he could actually afford.
12-09-19, 06:05 AM
#27
Lexus Fanatic
iTrader: (20)
sounds like you haven't had friends or relatives in tough situations. one loved one in my fam became memory impaired and could no longer drive. Had a leased vehicle... no way out. Another fam member drove it until the lease was up so it sort of worked out, but was a challenge. Other fam members are broke now and then and need 'loans'. What do you do? Loan once and if they don't pay back that's it, no more? People definitely need to learn lessons but some times the right thing to do is help.
as for Och and his friend... maybe a lease wasn't the best thing to co-sign on, but it may have been the cheapest option although friend possibly could have gotten a beater used car for less probably.
12-09-19, 06:46 AM
#28
Lexus Test Driver
Why would your friend who has poor credit need a BMW?
I’m not against supporting friends in need but i sure as hell would not cosign on a new BMW, whats wrong with Kia Rio for $99 month while fixing your credit.
You have 2 options at this point.
1) make remaining payments and turn in car asap so at least you are not wasting $$$ on insurance.
2) sell the car outright and hope sales price covers buyout price. This is highly unlikely as BMWs usually have inflated residuals.
I’m not against supporting friends in need but i sure as hell would not cosign on a new BMW, whats wrong with Kia Rio for $99 month while fixing your credit.
You have 2 options at this point.
1) make remaining payments and turn in car asap so at least you are not wasting $$$ on insurance.
2) sell the car outright and hope sales price covers buyout price. This is highly unlikely as BMWs usually have inflated residuals.
Last edited by RNM GS3; 12-09-19 at 06:49 AM.
12-09-19, 07:53 AM
#29
Lexus Fanatic
I dont think the issue was POOR credit, it was NO credit.
12-09-19, 08:34 AM
#30
Lexus Test Driver