What happens to a car loan if the borrower dies before paying it back?

My aunt is very ill and she may not make it. If she passes away, what will happen to her car loan? She still has about $5,500 left to pay off.

Answer
“I’m sorry to hear your aunt is ill. An auto loan is a secured loan, which means that the lender will repossess the car if the payments are not made. If the borrower passes away before paying off the loan and the borrower’s heirs wish to keep the car, those heirs can take over the payments by default. “
avatar
Johnny Puckett
Answered on Apr 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.