Core Points - The situation involves a cosigned auto loan for a 20-year-old BMW that has developed mechanical issues, leading to a default on the loan [1][2] - The borrower, who is a relative of the cosigner, is demanding compensation for new tires purchased prior to the car's issues, despite the car's current state [3][5] Summary by Sections - **Loan Details**: The relative purchased a 20-year-old BMW with 160,000 miles, putting down $2,000 and borrowing the remaining balance, which is now $5,000 due to default [1][2] - **Mechanical Issues**: The car has experienced significant mechanical problems, including a failed water pump, and potential further damage from overheating [2][6] - **Financial Implications**: The cosigner is advised to pay off the loan to protect their credit and consider selling the car, as further repairs may not yield a return on investment [3][6] - **Borrower's Demands**: The borrower is requesting $1,500 for tires purchased on credit, raising questions about the fairness of this demand given the circumstances [3][7] - **Advice for Resolution**: Recommendations include negotiating a cash settlement with the lender and exploring options for selling the car through online platforms [6][7]