Why are car loans always secured with collateral?

Car loans build the depreciation of the car's value into the total cost of the loan.

Banks are unwilling to give out car loans unless the buyer has a big savings account.

Drivers are required to carry collision insurance on leased cars.

The car can always be repossessed if the owner stops paying off the loan.

Question

Why are car loans always secured with collateral?

Car loans build the depreciation of the car's value into the total cost of the loan.

Banks are unwilling to give out car loans unless the buyer has a big savings account.

Drivers are required to carry collision insurance on leased cars.

The car can always be repossessed if the owner stops paying off the loan.

Pixel · Answer

A or C

Timmyspu · Answer

I would say c

Isry · Answer

Collateral has to do with a companies ability to repossess a vehicle that has not been payed on.

zbz · Answer

I don't think it's either A or C...

XioGonz · Answer

I would say it's D......

Pixel · Answer

Oh you right, i was thinking collision, not collateral, brain is working against me

zbz · Answer

I agree with it being D

justus · Answer

Sorry to interrupt, may I ask which class this is for? I am taking business law and legal environment and we learn similar things.

Pixel · Answer

it's just your average Economics class for Seniors in HS

justus · Answer

Oh I see, good luck !!

justus · Answer

Would my powerpoint slides help?

justus · Answer

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