Who owns the vehicle in a personal loan?

Study for the Specialist Automotive Finance Test. Use flashcards and multiple-choice questions with detailed explanations to get exam ready!

Multiple Choice

Who owns the vehicle in a personal loan?

You own the vehicle. When you use a personal loan to buy a car, the ownership of the car typically transfers to you, the borrower. The lender’s concern is repayment, so they may hold a security interest (a lien) on the vehicle to protect their money. That lien allows them to claim the car if you don’t repay, but it doesn’t mean they own the car. If the loan is unsecured, there may be no lien at all and you own the car outright. The dealer is simply the seller, and the government does not own your car because of your loan.

You own the vehicle. When you use a personal loan to buy a car, the ownership of the car typically transfers to you, the borrower. The lender’s concern is repayment, so they may hold a security interest (a lien) on the vehicle to protect their money. That lien allows them to claim the car if you don’t repay, but it doesn’t mean they own the car. If the loan is unsecured, there may be no lien at all and you own the car outright. The dealer is simply the seller, and the government does not own your car because of your loan.

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