What Happens When You Default on a Car Loan Where

question 53

Multiple Choice

What happens when you default on a car loan where your Title is held as collateral?

• A)You damage your credit history but you keep the car.
• B)You lose the car and damage your credit history.
• C)You face liability under the deficiency payments clause.
• D)Only choices B and C are correct.
• E)All of the above choices are correct.

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Definitions:

Incongruent

Referring to situations or elements that are not consistent or in harmony with each other.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Information

Data that has been processed, organized, or presented in a given context to make it meaningful or useful.

Belief

An acceptance that something exists or is true, especially without proof.