Dear Driving for Dollars,
I co-signed for a car loan for my grandson. He was making the payments. Then, he defaulted on the payments after getting into an accident where he did not have enough coverage and couldn’t get the car repaired. I made the payments for seven months and finally made a settlement with the bank. I now want to sell the car for parts, but he will not sign the car title, which is in my hands. He feels he is entitled to half of what I get for the parts, but he has put out roughly $6,000 and I have put out $14,000. I just want to recoup some of my losses. What are my options?
It’s lousy to be in this type of situation, particularly with a family member. If you were listed as the primary person on the loan with your grandson as the secondary, then the bank may be able to change your loan paperwork to reflect your name alone if you haven’t yet finalized your agreement with them. If you have and the car title is in your possession with both your names listed, then you are stuck unless you can get your grandson to sign it. Perhaps you can get him to agree to a 70/30 split of the amount you receive for the parts since he has paid approximately 30 percent of the total outlay for the car while you have paid 70 percent.
If you have a car question, e-mail it to us at Driving for Dollars.