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Can you go to jail? Maybe. It's not 100% impossible, but that wouldn't be a standard result. I strongly advise against bank fraud of any sort. Especially since that is a federal offense and getting charged with a federal crime is no fun.
As for crashing the car, if you have a loan on the car you must have insurance on the car and the insurance will pay off the loan, and you will no longer have a car.
Yes, you can take out a car loan and use the money to buy a business. As long as the bank knows in advance what you want the money for, they don't care. They give you the loan and it is secured by your car. Note: in order to get a car loan, your car is going to have to be free and clear, or else you have to refinance the existing loan plus take out more money. Since most cars are upside down, that isn't going to usually work. You are not going to get a "second mortgage" on a car.
I've used my car to take out a $15,000 loan to do home improvement to get a house ready to sell. The bank was happy to do it. Their loan was extremely well secured, since the car was worth a lot more than $15,000 and I have excellent credit so they were confident of getting their money back. The interest rate was pretty good and it was lot easier than taking out a loan secured by the house.
The car is going to not only have to be free and clear but it is going to have to be nearly new if you are going to get a loan big enough to buy a business. Banks don't generally loan the full value of the car and they won't loan on older cars that don't have a lot of value left in them.
Adding if the plan is to get a loan on the car and then crash the car for the insurance, you'll end up without a car, so why not just sell the car in the first place to get the money and save yourself a lot of trouble. You'll get more money by selling the car than you'll get by taking a loan out on it.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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When a car is repossessed and the value is less than the balance due they can and will sue for it plus tow and legal fees. When the court issues a judgement and you don't pay they normally don't arrest, they just attach wages and/or bank accounts. Someone I knew years ago did in fact "arrange" to have his car stolen for the insurance money and never got caught, but that is fraud and average penalty is 3 years in jail.
if it really is a title loan against a car title that exists and is not totaled out i agree .
but somehow i think this title is against a car that is a wreck and not what is being claimed to the bank . .....there are to many missing bits of information here.
i wonder if the car actually has to be inspected first by the lender or they just accept your word the car is in fine shape ?
I note a lot of fishy questions on the finance forum. LIke how to buy something without your name.
They'd be stupid if they didn't require some kind of verification ... and I don't think they're stupid.
I obtained an auto loan without proof of buying the vehicle, (yes I used it to actually buy a vehicle).
All the bank did was give me X amount of months to give them proof, or they would turn my auto loan into a personal loan with a much higher interest rate.
Yesterday I read an article on this meter and it got me thinking. I've checked around the internet and the info differs. As far as I understand you can't face a lawsuit for not paying off car title loans. The lender only has the power to take possession of your vehicle. But no one tells what happens if the lender cannot get access to the vehicle. For example - if I crash the vehicle, will I face the lawsuit from the insurance company or from the lender in order to cover up the expenses to repair it?
My main plan is to take a car loan right now and invest n a small business. The citation with the pandemic is getting worse with every day and it looks like my current employer will be forced to lay off some people. I need to act in advance. I've also checked this locator https://directloantransfer.com/blog/...loans-near-me/ and there is a bunch of different lenders with different measurements and interest fees. I've never done this before so I'm looking for some quality advice on the subject. Maybe someone even did this before and could share his experience or at least lender name. It would be much appreciated
If you have collision insurance, the insurance would pay the loan company.
Any company lending against a car will require collision and comprehensive coverage in addition to the liability coverage required by law. If you somehow manage to cancel coverage and avoid having the lender force you to get insurance, and then crash the vehicle while uninsured, they will take the vehicle and auction or junk it for a very low price, and file a civil suit against you for the difference. It can become a criminal issue if you submit false information (including fake documents) to the lender, deliberately destroy the vehicle, or attempt to take the vehicle back after the repo truck has hooked it. But generally speaking if you do not act with malicious intent, it will be a civil matter, and you won't go to jail. However, the creditor can come after your income and assets in addition to taking the car, until they have been fully repaid. Once the debt, and all costs and fees, has been paid off, the creditor cannot legally take any further action. If you can't pay, the only way to protect your income or assets is bankruptcy (Chapter 7 means you give up assets but protect income, while Chapter 13 is the reverse - give up some income, but keep your assets.) . You will face several years of difficulty obtaining credit, and very high interest rates if you manage to do so. You may, in many states, also face difficulty obtaining a job and difficulty renting an apartment.
In addition, note that crashing a car without insurance can lead to unpaid judgments if you cause injury or property damage to another, and this can also lead to a seizure of your assets and income. Furthermore, your driver's license may be suspended (depending on the state). If you drive anyway despite the suspension, you could be arrested, but the likelihood of actual jail time will also depend on the state and on your history.
Last edited by ncole1; 03-27-2024 at 06:06 AM..
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