Question Never taken out an auto loan, what should I know?

[Carol]

I am thinking about taking an auto loan out on my car to help pay off a few things. What should I know before taking this step? I don't want to take out too much, as I don't want to risk being stuck paying off too much either.

 

[Jerry80]

Just let it be known, that if you cannot pay off your loan, they will take your car. The point of auto loans, is that they use your vehicle as collateral in case you cannot pay the loan back. Only take out what you know you'll be able to pay back.

 

[bomb]

I am thinking about taking an auto loan out on my car to help pay off a few things. What should I know before taking this step? I don't want to take out too much, as I don't want to risk being stuck paying off too much either.

First, only go for it if the vehicle will be an asset rather than a liability. What i mean is, if the vehicle will save you some commuter or rental costs, then that is a good bet.

But if it will come and eat up more into your resources, you better avoid it.

 

[Andrew]

Check out this YouTube video.