Buy another car?

Question

if i go to the bank ask them for an autoloan to buy a 2008 honda accord, and i got approved for it. then if i went up to the dealership and buy a different car, lets say 2005 Lexus IS300, will the bank tow my car away?

Answer 1

Ask the lender before you make a deal on another car. They will consider the value of the second choice in deciding whether to loan you money on it.

Answer 2

If your bank approves you for the Honda, that means they believe according to your income and credit ratings that you can afford and make the payments on it, but not on a more expensive car like a Lexus.

I think you have to use that loan to buy the ocar for which you applied for the loan. But even if you could switch cars on them and get the Lexus, you're probably not going to be able to afford it.  Sooner or later, you will fall behind in the payments and yes, the bank will take it back, plus your credit will be ruined.

Then with bad credit you won't be able to get a car at all unless you go to one of those places like Drivetime, who really rip you off and will not only overcharge you, but make you give them $1,000 down payment, take the car back if you're one day late on you payment,and keep your $1,000 too!.

With  the price of gas now, if you have a decent car you're probably better off taking care of it and driving it a few more years unless it's a gas hog. But if you have no car or it's really not worth keeping, then the Honda will be a great car for you.  It will be very dependable, good on mileage and last a long time as long as you take care of it.

Take care of yourself, your credit and your car!

Answer 3

That particular approval was probably for the Accord, but the bank really does not care what type of car you get.  Granted, there are different rates and processes for new or used car loans.  You are still probably eligible for a loan on a used car that is comparable in value to the Accord.  Just call back and explain the situation.  I would also be willing to bet the dealership will be all too eager to shop around for a loan for you as well.

Answer 4

If you're approved for an 08 Honda you can't buy an 05 Lexus, that isn't what the loan is for.  They wouldn't tow it away, but they also wouldn't give the dealer the money.