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7 tips for taking a car loan from family

Consider a co-signer
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If a relative co-signs a car loan with you at a bank, then the relative still assumes financial risk, but the funds would initially come from the financial institution instead of the relative's savings, Frazier says.

"I don't normally recommend that relatives co-sign a loan, but I understand parents or other close relatives may be more likely to do it because of the love factor," she says. As long as the co-signer knows that this will be a part of their debt, too, it could be a solution for obtaining an auto loan.


 

 

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