A frustrated car owner is facing a financial and legal nightmare after co-signing a car loan with their now ex-partner. The relationship is over, but the consequences of sharing financial responsibilities are just beginning, and they may be international.
Car Is In One Name, Loan In Two
According to his recent post in r/personalfinance, the couple bought the car together in 2021 and still owe about $14,000 on the loan. The original poster says their ex took possession of the vehicle in October and hasn’t made any payments since.
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What makes the situation worse is that the ex has threatened to take the car across the border into Mexico to avoid repossession. “She has done this before where she took a car out from a lot and took it to Mexico where they illegally plated the vehicle with a fake bill of sale,” OP wrote.
While the auto loan is in both their names, the vehicle registration is solely under their name, a detail that sparked hundreds of comments and legal theories from the community.
Who Actually Owns The Car?
“The loan is irrelevant. Whose name is on the title? Just yours or both of yours?” one commenter asked. That question quickly became the focus of the entire thread.
Many pointed out that ownership is determined by the name(s) on the car’s title, not the loan or the registration. “Registration does not confer ownership,” another commenter clarified. “It only confirms that the car may be driven, and identifies legal responsibilities in various situations.”
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Some recommended that if OP is the only person on the title, they should take swift action: “Go get the car. It’s yours. Sell it and pay the difference on what is owed (assuming you owe more than it’s worth). Cut your losses, and don’t co-sign anymore loans.”
Others suggested hiring a private investigator or locksmith to retrieve the car, especially if the ex has already crossed the border. One person said, “Honestly, it may be cheaper to hire a private investigator, find the car, ‘steal' it back, and sell it for whatever you can get.”
If It’s Gone, You’re Still Stuck
OP fears the car may already be in Mexico, making recovery difficult and legal options murky. While some debated whether Customs and Border Protection or Mexican authorities would stop the car from crossing, the consensus was that regardless of where the car ends up, OP is financially responsible.
“You’re unfortunately looking at this the wrong way,” one person said. “You now owe $14K to allow your ex to drive that car. That's what you signed up for when you became a co-signer on the loan.”
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Others echoed the same tough love: “You co-signed. This is 100% your problem.”
While some encouraged OP to report the car as stolen, others warned that might not work if the ex is listed on the title, a detail OP has not clearly confirmed. Still, many felt that if OP is the sole registered owner, law enforcement might take a report.
A Cautionary Tale
Beyond the specific legal strategies, the thread became a masterclass in why co-signing loans, especially with romantic partners who aren’t legally bound through marriage, can have devastating consequences.
“The banks want a co-signer because they did the math and won't lend that person money,” one comment read.
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