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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.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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.”
View full answer
- Gregory R.
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