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Car Co-Ownership – Should Two Friends Co-Own a Car?

f you have two friends, you may have discussed how to share car ownership, but there is a lot of uncertainty in this area. Whether you’d be better off with a shared car or a single one, here are some things to consider. Co-ownership can be a great idea if you’re close and can’t imagine doing without a car. However, you should make sure that you’re able to get along with the other person before moving forward.

The first thing to do is set up the agreement. If you’ve always lived together, you might have agreed to split insurance costs 50-50. Then, you may have discussed how much each of you will contribute to repairs. This way, each of you is paying a higher portion of the costs related to the car. If you’re planning to co-own a car with someone, however, make sure you get their consent before letting them drive your car.

Before purchasing a car, make sure that the other person has no existing debts or liens on it. If you have a car loan, the financing loan company might have a lien on it and repossess the vehicle if you’re not able to make payments. If you see a lot of liens, it’s a red flag of serious financial instability and irresponsibility on their part.

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