Personal Finance
Money Management

Can a loan company take a newly financed car in your name as collateral toward the balance of a loan for a car that was repossessed a few years ago?


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Wiki User
2011-09-12 14:51:18
2011-09-12 14:51:18

Nelson, they would have a couple of real goofy options.1. they could refinance the new car and include the balance of the old loan for a HUGE total.2. they could be the SECOND leinholder on the new car somehow. I guess they would have to loan you money to pay the old balance and take the new car as collateral.Neither of these options look realistic, but who knows??


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you cannot use it as collateral because you need to hold title of the vehicle however in this case the finance company has the ownership of the vehicle not you.............

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You still owe the finance company the balance owed.

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No. Absolutely not. Your driver's license cannot be suspended for not paying a loan or the balance of a loan, repossessed or not even if you get threats from the loan company.

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Advance Restaurant Finance is a great company to go through to help furnish your restaurant. The best part about this company is that they require NO collateral.

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