Do I have to keep paying off a car loan if the car dies?
"I've had a car for some time, but it's on its last legs. When the car inevitably dies, do I have to keep paying the car loan?"
Answer provided by
Answered on Jul 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“You definitely have to keep paying the car loan. Just because your car dies doesn’t mean that the loan is null and void. Your legal obligation to repay the loan remains in place.
To avoid a similar situation in the future, conduct all necessary mechanical inspections to ensure that your car lasts for at least the life of the loan.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Can a creditor open an old car loan and send it to collections?
"I paid off a car loan three years ago. In the past week, I've received calls and letters about this loan, saying that I still owe money on it. How is this possible?"
Jul 27, 2021
What is a Texas temporary liability insurance card?
"I just moved to Texas and I was given this card by my insurance company. I'm worried about the "temporary" part. I purchased insurance, so I should be covered, right?"
Jul 27, 2021