Here pretty soon my good friend will be co-signing for me on an auto-loan.

Since I have never financed anything before in my life I have no clue how these things work.

The sportsbike Im getting, will it be in my name? His name? Maybe it stays in the dealers name until I payoff the loan?

Does the payments come in my friends name or mine? Anyways any and all information about this subject is appreciated, we are going tomorrow and Id like to know a bit about this before I get into it.

Thanks in advance.

If he is co signing a loan for you then it's going to be under his name and the payments included.

The payment responsibility is for both you and your friend (in case you won't be able to pay). So if it happened that you have no money, he will be responsible to pay for you. It's some kind of backup what financial institution practise. If you have a stable situation, you and your friend have nothing to worry about.

I see. Well what about the title for the bike? Whos name will it be under?

No the payments don't go to the friend unless you default on the loan. If you default on the loan the co signer will be responsible for paying off the balance in full immediately. Until that point everything will be going to you. it's still in the bank's name until it's payed off so they can repo it if. After that your name will be in the owners slot. The only way your friend will be on that title is of he asks to be a co owner but if he is his name will be listed second and all correspondence will still be going to you

I see, ok thats good.

Pretty much everything I needed to know. Thanks guys.

Oh ya one more thing lol..

I plan on paying off this bike quickly. Probably in less than one year because I can over to make the monthly payments and pay more.

Will this better both our credit? Just his or what?

Anyways thanks again.

nah the more payments you make the better your credit will improve. so if you're making large payments and clear it in a year its likely it wont improve your credit much or at all. not sure about affecting both of the users in the contract, I would assume so.

The fact that he's co-signing will make it so that your credit will improve, but not by much.. simply because you aren't handling it yourself.

The longer you take to pay it off, the better your credit will be.. It's basically them seeing how long you can keep up solid monthly payments for.