Does the bank or the dealer have all the risk on a car loan?

Just out of curiosity, who has all the risk on the car loan: the lender or the dealer? I'm buying a car from a dealer, but they're arranging the loan for me from a lender.

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Eric Schad
Answered on Jul 03, 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.
“Unless the dealer is doing in-house financing, 100% of the risk of the loan lies on the lender. They’re the ones giving you the money for the purchase, so if you don’t pay, they’re the ones that are out the money.
Dealers are pretty much absolved from any other interaction following the new car loan, unless you bring the vehicle in for servicing.”
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