Categories: Lifestyle

10 Things You Should Know Before Getting a Car Loan

Paying Off the Loan is the Only Way Out

Unlike other items, making a return for full credit just cannot happen with a car. Cars are not returnable items, and deciding to give up the vehicle to get rid of the loan only results in a repossession. Make sure you are willing to commit for the entirety of the loan.

What typically happens when a car is repossessed is the company will resell the car. You are still responsible for any deficiency left on the loan amount, plus any additional repossession costs. It would be very rare in a repossession situation that the sale of the car would forgive the remaining balance of the loan, plus the repossession costs. You will almost always still owe something on the loan.

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