Co-sign with parents vs just myself when buying a new car?

[LOLyourFace]

I'll spending sub-$20K on a brand new car by the end of this month.

I test drove mazda 6 v6 & accord LX 2000. The dealer asked if I was gonna co-sign with my parents. What's the benefit of doing that? I'm 21 and have a very good credit history (just got a free one from experian thanks to hotdeals!). So I probably wouldn't need that at all right? Just how exactly does co-signing with parents work?

 

[notfred]

You may be able to get a lower interest rate if your parents co sign. (depends on your credit and thier credit)
You also gain the ability to get your parents to whine and moan and threaten to take your car away.

 

[LOLyourFace]

Originally posted by: notfred
You may be able to get a lower interest rate if your parents co sign. (depends on your credit and thier credit)
You also gain the ability to get your parents to whine and moan and threaten to take your car away.

But my credit is good. Credit score is all that matters right? I'm in the high 700s I believe. Are you saying that I could get even lower APRs if I co-sign with parents?

 

[Atrail]

Originally posted by: LOLyourFace

Originally posted by: notfred
You may be able to get a lower interest rate if your parents co sign. (depends on your credit and thier credit)
You also gain the ability to get your parents to whine and moan and threaten to take your car away.

But my credit is good. Credit score is all that matters right? I'm in the high 700s I believe. Are you saying that I could get even lower APRs if I co-sign with parents?

Yes,
How old are you? You will probably get lack of history unless your 30 or something, even with your good score...

 

[notfred]

Originally posted by: LOLyourFace

Originally posted by: notfred
You may be able to get a lower interest rate if your parents co sign. (depends on your credit and thier credit)
You also gain the ability to get your parents to whine and moan and threaten to take your car away.

But my credit is good. Credit score is all that matters right? I'm in the high 700s I believe. Are you saying that I could get even lower APRs if I co-sign with parents?

If your score is in the high 700s, there's probably no advantage to having your parents co-sign. Most 21 year olds don't have credit scores that high, and that's probably why the salesman asked. If yours had been 550 and your parents is 750, then having them cosign would have lowered your rates.

 

[LOLyourFace]

Originally posted by: Atrail

Originally posted by: LOLyourFace

Originally posted by: notfred
You may be able to get a lower interest rate if your parents co sign. (depends on your credit and thier credit)
You also gain the ability to get your parents to whine and moan and threaten to take your car away.

But my credit is good. Credit score is all that matters right? I'm in the high 700s I believe. Are you saying that I could get even lower APRs if I co-sign with parents?

Yes

so basically co-sign is always better than by yourself, even if you have good rating & as long as parents have good ones.