In QC, what should I know about using a co-signer for car loans?

In Quebec, using a co-signer for a car loan means a financially strong individual agrees to share full legal responsibility for the debt alongside you. This arrangement is particularly beneficial in the current 2025 lending environment, where higher interest rates and stricter approval criteria often make it challenging for applicants with limited credit history or lower income to secure favourable terms. A strong co-signer can significantly improve your chances of approval and help you qualify for lower interest rates, potentially saving you thousands over the life of the loan.

However, it is critical for the co-signer to understand their profound commitment under the Civil Code of Quebec: they become *solidairement* (jointly and severally) liable for the entire loan amount. This means if you, the primary borrower, default on even a single payment, the lender can pursue the co-signer directly for the full outstanding balance, including any fees or penalties, without first having to exhaust remedies against you. Their credit score will also be negatively impacted by any missed payments, just as yours would be, affecting their future borrowing capacity.

Why this matters: While a co-signer can be a vital key to accessing necessary financing and better terms, it places a substantial financial and credit risk on that individual. Both the primary borrower and the co-signer must fully comprehend the legal obligations and potential long-term consequences before signing, ideally seeking independent legal advice to protect their financial well-being and their relationship.