When a Car Is Sold on Credit, What Legal Status

question 63

Multiple Choice

When a car is sold on credit, what legal status does the creditor generally have with reference to the automobile? ​

• A)The creditor retains legal title and thus holds a security interest in the vehicle, until it is paid for in full.
• B)The creditor is secondarily responsible to third parties injured by the driver of the vehicle.
• C)The creditor is obliged to carry collision and comprehensive automobile insurance on the vehicle to protect the security interest.
• D)all of the above

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Definitions:

Spending Variance

The difference between the actual amount of money spent and the budgeted or planned amount in a given period.

Budgeting

The process of creating a plan to spend your money, outlining proposed incomes and expenditures for a future period.

Planning Budget

A financial plan created for a future period, outlining projected revenues, expenses, and capital needs.

Refurbishing Materials

Materials used in the process of renovating or restoring products to 'like-new' condition.