My legal liability on being the only one on a car loan application

[mmcgovern]

OK, I hope this is the right area for this. My friend has bad credit so for her to get a lease on a car I need to be the sole person on the credit application. My issue is not the money but the legal ramifications since she will take out her own insurance for the vehicle. First, since I am the one only on the credit I would need to take insurance out under my name and have her as a driver to protect myself. What if she took out insurance under her name? Outside of the fact that she didn't pay for insurance and would be unregistered what other legal issue can you see me having if she pays her insurance ontime? Would you or would you not do this and why? Thanks in advance.

 

[Theresagail]

You need to be listed ( like you said) on the insurance if this person fails to keep full coverage insurance you will be the first one to be notified. So long as she pays for the payments, and keeps her insurance she must also keep the miles low for the turn in and she must take very good care of the car- other wise when you turn it back in you will have to pay some seriuos $$ to get this car back in line w/ your residual amount. I dont see what other issues you may have. No I would never do this, because it is you and only you on the dotted line if she messes up.

 

[mmcgovern]

I am trying to get it where I am only the co-signer of the credit application because to make this somewhat easier I was going to pay in advance the 3 year lease and have her pay me back on a monthly basis. That way I am only financially liable and since I have paid this off all that we need to worry about is the mileage (lease is for 12K per year).