If you are paying up 2 car loans and then can’t afford one of them, which one gets repossessed?
Robyn T asked:
I have a loan on a car from 4 years ago, then I took a loan out on another car 3 years later. Now I have 2 loans on 2 different cars. But now I can’t afford both of them so I am going to have to give one up. The loans are with the same lending company. Do I have a choice on which one they will repossess or do they choose?
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I have a loan on a car from 4 years ago, then I took a loan out on another car 3 years later. Now I have 2 loans on 2 different cars. But now I can’t afford both of them so I am going to have to give one up. The loans are with the same lending company. Do I have a choice on which one they will repossess or do they choose?
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Comments
Yes you have a choice its the one you stop making the payment on. Take the best one and dont miss a payment on it.
You need to read your loan agreement. You could loose both cars.
Many lending companies have a clause in their loan agreement where if you default on ANY loan you have with them they can repossess any collateral from ANOTHER loan you have with them
If you quit paying one of the loans they will repossess the car for the loan you quit paying on.
If they cannot sell that car for what you owe on it, and this clause is in the agreement, they will repossess the other car too.
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They repo the one you are not paying on.