auto

7 tips for taking a car loan from family

Plan for defaults
Next
5 of 8
Back
text

All parties should agree on what should happen if the borrower is unable to repay the car loan, and it should be documented in the loan agreement, Kresh says.

Could the lender have the right to take ownership of the car and sell it to repay the auto loan? Will the debt be forgiven? These are difficult questions, but it's easier to face them and be on the same page before money changes hands, he says.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CAR & MONEY NEWSLETTER

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Cheap gas boosts holiday travel

With gas prices at the lowest they have been for Thanksgiving in five years, holiday travel this year will be up significantly, says AAA.  ... Read more


Connect with us