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"Can I spend the leftover money from an unsecured car loan to repair my car? "
"I recently took out an unsecured loan to purchase a used car. The final cost ended up being less than the loan amount by over $1,000. Do I need to return that money to the bank or can I use it to fix up the car?
"
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“You do not have to return the leftover money to the bank because it is an unsecured loan. You can use it to fix up the car or to cover your first few payments—or you can use it to buy something completely unrelated.
That being said, it is probably not very wise to spend the money on anything but the car, and the best option would probably be to return the money to the bank when you make your first payment. This would shorten the length of the loan and benefit you in the long run.
“
View full answer
- Gregory R.
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