Responsibilities of Auto Lease Co-Signers

Co-signing for a car is just like buying or leasing a car for yourself. Co-signers share the same responsibilities car buyers or those who lease have, but co-signing is probably even more risky than buying or leasing a car for yourself. There are various points to take into consideration before you put that pen to paper and co-sign an auto lease.

Mileage

Most leases have mileage restrictions associated with them. For example, some leases only allow 12,000-15,000 miles per year to be put on the car. If the person leasing the vehicle goes over the allowed mileage, there's usually a fee associated with that, which must be paid at the end of the lease. Co-signers are responsible for mileage, as well. If the person leasing the vehicle doesn't pay the additional mileage costs, the co-signer will be responsible for paying them.

Default

If the person leasing the vehicle defaults on the lease, he's responsible for paying what's still owed on it. This is very similar to purchasing a car. If the borrow defaults on the loan, he's still responsible for paying the balance. This is also the case for co-signers. If the person leasing the vehicle defaults, the co-signer will become responsible for paying the balance on the lease as well as any additional fees owed. Defaulting on a lease will affect the borrower's and co-signer's credit rating.

Liability

Co-signers on leases are also liable in the event that the person leasing the vehicle gets into an auto collision. If that person gets sued, the co-signer will most likely be sued as well because he's listed on the lease. Anything that happens to the vehicle is the shared responsibility between the person leasing the vehicle and the person who's co-signed the lease.

Maintenance

Both those leasing a vehicle and those who've co-signed the lease are responsible for the vehicle's maintenance. In addition, both parties are responsible for returning the vehicle in excellent condition. If the vehicle is returned after the lease and something is found to be wrong with it, either mechanically or cosmetically, the person leasing and the co-signer will be responsible for paying for repairs. This shouldn't be a problem for the co-signer, as long as the person leasing the vehicle acknowledges responsibility and pays the costs. However, if the person leasing the car doesn't pay for repairs, it's up to the co-signer to do so.