If I finance a vehicle through a loan company not affiliated with the dealership, can I finance the remainder with the dealership?
How do 3rd party auto loan companies work? Do you get the money first?
If I get say 8000 from a 3rd party loan company, can I use that toward a down payment on a car at a dealership, and finance the remainder of the car with the dealership?
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Car Financing Question?
Posted on June 1, 2012.
No you cannot in fact thats a felony! I just asked that question at the car dealer today. The reason that the loan has to be all from one place is so that in the event you dont pay the loan, the single company giving you the loan can take the car as payment. If there are 2 loans, how do you pay them both if you default on the loan ya know?
No lender is going to offer 2 loans on one car. Only one loan can be secured with the car as collateral.
You can try this but if either lender finds out about the other, both can cancel your loan agreement and force you to pay them in full. Both lenders will place liens on the car, and two liens on one car is a huge red flag.
This “might” work if the 8k comes from a credit card cash advance, or a personal unsecured loan. But making 2 monthly payments to 2 banks for one car seems….. not smart.