My policy has always been that to co-sign for someone, including family, it needed to be a short term loan, where I held collateral that could easily be sold for a large portion of the loan amount.
Even though they are family, and they have full intention to pay it back, you should get legal protection in the case that they are totally unable to repay it. For example, they cannot work due to serious injury, or they die, or any number of random events out of their control.
If it was me, I would put a lien on the car for the total amount, or tell her that if she can't afford to do it herself, 20k is a bit much to be spending on a car.
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