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
advertisement
advertisement

Blog

Tara Baukus Mello

GM earnings soar, and so might air-bag recalls

GM announces strong second-quarter earnings and says it may have to recall millions more cars for air bags.  ... Read more


Connect with us