Car Loan Question

[MingeyMatt]

What happens with a car loan if say I swap my car with somebody else??
Do I need to inform the bank? Don't tell them and just keep paying the loan??

[kcpwns]

id inform the bank?...
if you dont pay up they'll come take the car of whoever you swapped it with

[bogan_vk]

you should tell the other person before you swap, because if you default on the loan, the other person will be after blood when it gets reposessed on them.

[Not_An_Abba_Fan]

By law you can't dispose of an encumbered car. If you get found out, you will be charged and the person who has the car will get it reposessed, and you will still be stuck with the loan.

[dijm8]

isnt a car loan almost like a personal loan? where u can do whatever you like?

[ClairBear]

If the car is used as security for the loan then you need to payout the loan before you can sell it or swap it.

If you just took out a personal loan and bought a car with it (unsecured loan) then go for it.

[rb26dett]

Contact your financial institution, tell them what you want to do. they will give you a yes or no answer.

[Drawnnite]

talking about car loans (i dont want to make another thread)
buying an encumbranced car. how does one say go about it.
just for future reference so i dont have problems if i do buy another car

[bogan_vk]

my rule of thumb is simple stay away from anything encumbered its not worth the headache.

[Not_An_Abba_Fan]

When buying an encumbered car, generally, you will pay the finance company direct. If what you are paying is less than the loan amount, the current owner will have to make up the shortfall or the finance company will not release the car. You can do a REVS check to see if there is any money owed on the car. If there is, make sure you tell the seller you are aware of the debt and that you want to contact the finance company yourself to make sure they are kept fully in the loop. If the seller doesn't want you to contact the finance company, then I would steer clear as there is most likely something dodgy going on.

[Drawnnite]

good info to know