Hey there car-curious friends!
If you’re wondering whether you own your car even though you’re still making payments you’re not alone. This is a common question that pops up when navigating the world of car ownership and financing.
Let’s dive into the details and clear up any confusion
The Short Answer:
In theory, you won’t fully own your car until the loan is paid off. But as long as you make your payments on time, you do have equitable ownership, which gives you the freedom to use and keep the car.
Here’s the breakdown:
- Legal Ownership: The lender holds the legal title to the car until the loan is paid off. This means they have the right to repossess the car if you default on your payments.
- Equitable Ownership: You have the right to use and enjoy the car as long as you make your payments on time. You can also sell the car, but you’ll need to pay off the loan first.
Additional Considerations:
- State Laws: Some states have laws that allow you to register the car in your name even if you haven’t paid it off yet.
- Insurance: You’re responsible for insuring the car, even if you don’t own it outright.
- Maintenance: You’re responsible for maintaining the car in good condition.
Tips for Success:
- Make your payments on time. This will help you build equity in the car and avoid late fees.
- Consider making extra payments. This will help you pay off the loan faster and save on interest.
- Keep your car in good condition. This will help maintain its value and make it easier to sell if you need to.
Remember, owning a car is a big responsibility. By understanding the nuances of ownership and financing, you can make informed decisions and enjoy the freedom of the open road.
Please get in touch if you have any queries or require more information. We’re here to help you navigate the car ownership journey with confidence.
Happy driving!
P. S. See our other resources below for more details on financing and car ownership.
Additional Resources:
- TurboTax Community: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-don-t-own-my-vehicle-yet-i-am-buying-it-the-question-is-do-you-own-or-lease-your-vehicle-or-i-don-t-own-it-at-all-i-do-use-it-for-business-and-plan-to-enter-miles
- Quora: https://www.quora.com/If-someone-buys-a-car-and-someone-else-pays-for-it-who-owns-the-car
Disclaimer: The information provided in this article is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor for any specific financial decisions or guidance.
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Youll need to sign in or create an account to connect with an expert. 2 Replies
I don’t own my vehicle yet I am buying it. The question is do you own or lease your vehicle? Or I don’t own it at all? I do use it for business and plan to enter miles
You have the option to choose that you own your car if you are buying it and paying for it.
If you are required to return the car after a predetermined period of time and are making monthly payments for it, e. a lease), then you would select you “lease” the vehicle. I would choose “Own” since it seems like you will eventually “own” the car after you have paid for it in full.
What Should You Do if You Can’t Afford Your Auto Loan?
FAQ
Does the bank own your car until you pay it off?
What happens if my car died but I still owe money?
Do you own the vehicle at the end of a finance?
What if my car breaks down but I still owe money?
Should you sell a car if you’re making payments?
The only downside to selling a car while you’re making payments is you could be responsible for paying the difference between what you owe on the vehicle and what you sell it for. However, if you have equity in your vehicle, you could actually come out ahead, selling the car for more than the payoff amount.
Can you sell a car if you owe money?
Selling to a dealer or trading in your vehicle when you still owe money is an easier way to offload it than selling to a private party. Most dealers will handle the transaction and work with your lender to close out the loan.
Can you sell a car with a loan?
You can choose to sell your car to a private party or a dealer. Working with a dealer is the easier option, but you may get a better price if you sell to a private party. When you trade in a car with a loan, the dealer can handle the payoff process on their end. The dealer will appraise the car, call the lender and get a payoff amount, Gordon says.
Should you sell a car if you owe more than the payoff?
However, if you have equity in your vehicle, you could actually come out ahead, selling the car for more than the payoff amount. Setting a competitive price is important when trying to sell your car. If you owe much more than the car is worth, you may feel the urge to ask for the full payoff amount when selling the vehicle.