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7 tips for taking a car loan from family

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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.


 

 

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