What happens if I get caught lying on a car loan application?

I want to buy a new BMW. I’m not sure if my income is high enough, although I don’t have many bills and I believe I can afford the car. I was thinking about lying about my income on my loan application, but I don’t want to get in trouble. What would happen if I lied and got caught?

Answer
Don’t lie to your spouse, your friends, or your potential car loan lender. In fact, lying to anyone can bring you negative consequences down the road.
Light humor aside, fibbing on your car loan application will have long-lasting effects.
If (or more likely, when) you’re caught, the lender can charge you with fraud, and a conviction could get you anything from fines to jail time.
Your car will almost always be repossessed, leaving you without a ride. Moreover, your credit score will drop by at least 100 points, and it will take seven years before the credit penalty expires.
Instead of putting your financial future on the line, find something that’s more in your price range. Used or certified pre-owned BMWs are often lightly driven, so it’s possible for you to get the luxury experience for less.
Another thing to think about when buying a luxury car like a BMW is your car insurance rates, which will probably be high. Use Jerry to compare dozens of competitive quotes and make sure you’re not overpaying for the coverage you need.
Eric Schad
Answered on Nov 15, 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.
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