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Friend has asked me to be a guarantor

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  • Fiddlestick
    Fiddlestick Posts: 2,339 Forumite
    shygirl54 wrote: »
    She has said that I will not be liable for the money if they default as it will go to the first guarantor who is their son but then said the lenders would just take the car back.

    Of course you will be liable! That's the point of a guarantor!

    Why would they take the car back when they can come after YOU for the money?

    I was concerned as I do not want to be liable to pay for the loan

    Then do not sign.
    I feel obliged to be a guarantor has she has helped me with things in the past, although certainly nothing as large as a £5000 loan over 3 years.

    Ask yourself this: why do they want a guarantor?

    Why are they not willing to lend without one?
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    You can get cars for less than 5k these days !
  • patanne
    patanne Posts: 1,286 Forumite
    Unless you can say "Oh well it's only £5000", then I beg you please do not do this. Better to lose a friend than land up with a debt for no reason (personal that is). Because you are going to spend the next few years worrying if they are paying on time & resenting them for causing you the worry. Let them find another 'friend' to bail them and then their son out of the proverbial. Don't let it be you who lands in aforementioned proverbial. Guaranteeing anything should come with a health & safety warning
  • RichGold
    RichGold Posts: 1,244 Forumite
    1,000 Posts Combo Breaker
    meer53 wrote: »
    You can get cars for less than 5k these days !
    Why get a cheaper one when there's very little likelihood of paying anything back? I'm surprised they haven't gone for £10 grand.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    RichGold wrote: »
    Why get a cheaper one when there's very little likelihood of paying anything back? I'm surprised they haven't gone for £10 grand.

    Or £15k or £20k
  • tell_it_how_it_is
    tell_it_how_it_is Posts: 555 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Nice to see someone come on here and ask before the event.

    You can be pleased you have turned them down, thankful that the hassle of that task is far less than the hassle of the loan company coming after you for thousands in the coming months!

    Well done!
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • LovelyLeeds
    LovelyLeeds Posts: 584 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    tell_it_how_it_is wrote: »
    Nice to see someone come on here and ask before the event.
    Agree. The loans forum gets a lot of gyp for being too harsh on posters. Thankfully the opening poster had the foresight to post up her dilemma before the damage was done.
    A thread with a rare 'happy' ending on the loans forum :T.
  • glasgowsaver2011
    glasgowsaver2011 Posts: 426 Forumite
    I took a car out on finance for my best friend.

    She died.

    the car was still under the finance agreement

    In law the car was mine

    But I had to go to expense and hassle to get a new v5 new keys and to tow the car, all because the family thought the car was theirs.

    How could it be, it was not paid off
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    1,000 Posts Combo Breaker
    shygirl54 wrote: »
    I will not be liable for the money if they default

    Of course you will. A guarantor who is not liable is not a guarantor.
    as it will go to the first guarantor who is their son

    Who is clearly not creditworthy in the eyes of the lender or they would not insist on another lender.

    Furthermore guarantors are jointly and severally liable - in other words the lender can simply pick the easiest target.
    rhen said the lenders would just take the car back.

    They can only do that if it is a hire purchase agreement or the car is formally assigned to them.

    Furthermore, if it was not comprehensively insured and written off the debt would be outstanding with no corresponding asset.
    I feel obliged to be a guarantor has she has helped me with things in the past

    I wouldn't. Suggest they buy an older car while they save up.
  • Debt_Robot
    Debt_Robot Posts: 344 Forumite
    LovelyLeeds wrote: »
    Agree. The loans forum gets a lot of gyp for being too harsh on posters. Thankfully the opening poster had the foresight to post up her dilemma before the damage was done.
    A thread with a rare 'happy' ending on the loans forum :T.
    Totally agree about this happy ending.

    Thank goodness the OP has not lent the money. At all times, try and keep friendships and personal money separate and I think most people will be 'richer' in that regard.
    Credit Card paid back in Full (June 2011): :j £500 in the clear -

    Part of the £11,000 in 2011 challenge: £3,284 done so far.
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