What happens to my loan if the dealer goes out of business?
What happens to my loan if the dealer goes under? I got a loan from a small, local used car dealer. However, I drove by and they're having a "going out of business" sale.
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Answered on Jul 01, 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.
“If you have a loan with a small car dealer, chances are they’ll sell your loan before they go out of business to recoup some of their money.
This is a common and legal practice, although it happens with mortgages far more often.
If they sell your loan, you should get notification in the mail of your new lender, as well as information on payments and contact information.”
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