Financing a car

[volcano]

If I get a car loan from my bank to buy a car, ie 25,000 and if after a year for example I can't make the repayments and the car is repossessed am I liable also for the depreciation on that car, say 5,000?
What is the difference if any if I get finance from the dealership. Is the customer still liable for the depreciation on the car. How are costs recouped ie Is the car auctioned off for the best available price?

 

[peteb]

If you get a car loan from the bank, its not finance. Its an unsecured loan so they wouldnt be repossesing the vehicle.

If it was finance and the car was repossesed. Then yes of course you are responsible for the depreciation. You are responsible for the initial amount you borrowed and the car is only taken in an attempt to repay the loan. So if you borrowed 15k to borrow a car and then after a year its worth 10k and the balance of your finance agreement is 13k then you still owe the 13k!!!

 

[Rigoletto]

obviously.
if you get a loan you have the pay the value remaining on the loan not the value remaining on what you bought with the loan.

 

[vandriver]

If you are worried about defaulting on a loan you haven't even applied for yet,why not rethink your "need" for a new €25k car