What are the risks of being a car loan guarantor?
(A) the risk of a permanent guarantor
When you sign the money and debt guarantee, you are personally responsible for repaying the debts of the lending institution. Even if the relationship between the guarantor and the debtor changes, such as the husband's guarantee for his wife's house purchase loan, and the two eventually divorce, the guarantee will not be affected by the dissolution of the marriage relationship and will still be valid. In other words, once the guarantor signs as a guarantor, he will always become a guarantor unless the borrower is approved by the lending institution to cancel the guarantor qualification.
(2) The risk that the loan amount affects the guarantor.
Under normal circumstances, the borrower repays the loan by himself, and the guarantor need not worry, but the loan amount and monthly payment borrowed by the borrower will generally be displayed in the credit record of the guarantor. When the guarantor needs to apply for any loan by himself, the debt he guarantees will be regarded as his own debt, and usually the lending institution will include it in the debt, which may affect the loan amount of the guarantor.
(3) The guarantor voluntarily guarantees the debt and bears the debt risk.
When lending institutions promise to act as guarantors, they often ask guarantors to sign independent legal consultation documents in law firms or notary offices, referred to as ILA for short. When signing this document, the guarantor can't sign in the same law firm of the borrower, but must find another lawyer to sign and testify, which proves that the legal responsibility of the guarantor has been explained to the guarantor, and the guarantor also understands that he has to bear the debt personally and voluntarily act as the guarantor without any pressure.
Conditions for guarantor of auto loan:
(1) 18-60 years old natural person with full capacity for civil conduct:
(2) Having a local permanent residence and address;
(3) Having a stable and lawful occupation and economic income;
(4) Good personal credit, no bad credit record, and the ability to repay the loan principal and interest;
(5) Other conditions stipulated by the guarantee company or the loan bank.
So the guarantor depends on whether it is a general guarantee or a joint guarantee. If it is a joint and several liability guarantee, it is best to first verify whether the lender has sufficient repayment ability and willingness to repay, so as not to implicate himself.