The most common reasons a cosigner is needed are if the primary buyer has credit issues that are too recent to qualify on their own, if their income is not adequate for the amount of financing requested or if the overall credit profile doesn’t meet the lender’s guidelines. With a well-qualified cosigner, someone who would otherwise be turned down for an auto loan will often obtain a favorable approval. Often, many people will use a cosigner, even if they can get approved on their own, as the approval with the cosigner may be at a much lower interest rate saving the primary buyer hundreds or even thousands of dollars in interest over the course of the loan.