There are a couple reasons it may be better to get an auto loan with a co-signer. If you have not yet established a credit history, you may want to have someone co-sign for you. If you have recently filed bankruptcy or have really bad credit, this may be another reason to get an auto loan with a co-signer.What is a co-signer? A co-signer is a second party that takes on the same responsibility for the auto loan as the person who is buying the car. This may be a parent, other family member or a friend who agrees to sign the car loan papers with you.The co-signee, by law, has full ownership and responsibility for the loan should you as the auto owner default on the loan in any way. If you fail to make the payments, the co-signer will have to make them to avoid damaging their own credit.A co-signee should have an excellent credit rating, along with a high debt to income ratio. A debt to income ratio is a number that the lenders use to determine if the co-signer has enough financial room in their budget to pay all there other bills in addition to your auto loan if necessary.Your auto loan will appear on the co-signer’s credit report just as if it were a loan they took out for themselves. Therefore, to preserve the relationship between you and the co-signer,it is important to communicate and make all the payments faithfully and in a timely manner.Everyone has to start somewhere. If you have never established credit, using a co-signer to get an auto loan can help you begin creating your financial history by building a positive credit score, as well as a strong credit history.Another situation to use a co-signer may be because of a recent bankruptcy. There are times when life hands us situations that take us off our financial track and bankruptcy is necessary. Using a co-signer to get an auto loan may help give you a fresh new start toward rebuilding your credit.It is a good idea in both situations for both you and the co-signee to sit down and go over a few things before making the agreement. Review your financial situation and reveal everything for the co-signer to see. Pull out your check stubs and all your bills for your current financial obligations.Allow the co-signee to be fully aware of this information so he can make a wise choice and possibly help guide you to make better financial decisions. In addition, they can help you decide how much you can reasonably afford for an auto loan. This way, all the cards are on the table and you begin this transaction in an honest and up-front manner.Another great idea will be to include the co-signer on all correspondence pertaining to the auto loan. If there is a website available to track payments, balances and fees, give the co-signer access to this website.Whether you are establishing new credit or rebuilding after a bankruptcy, a co-signee can be a wise choice for your next auto loan.