a friend of mine is going to purchase a new car within a week or so but has no credit. He is going to finance the car and has a co-signer with good credit. My question is, when he goes in and makes a deal for the car, could he use the co-signers credit to finance the car? Cause theres no doubt that using his own credit will end up with a apr thats above 8%.

 

I think the bank will find a happy medium between good and bad rates. If they're too bad, then your buddy will find business elsewhere. Bankers are also sometimes willing to work with you.

 

Co-signer better watch out. Any problems with the payments go directly to his credit report. Our son screwed up ours when we co-signed his loan for his car and he missed payments.