Overhaulin'

Do I have to use the whole amount of my loan to buy a used car?

Just got a car loan for $7,500. Do I have to use the whole amount to buy a used car or can I find a car for less (say $6,500) and use the difference for other things (like insurance, license, etc).

Public Comments

1. DEPENDING ON THE LOAN INSTITUTION SOME REQUIRE YOU TAKE OUT ENOUGH FOR TAGS AND INSURANCE
2. If it was a strict auto loan, then yes, but if it is just a basic loan that you are using to use on your car, then no. On your loan, there will be guidelines for uses for your money. Read it over, and see if it talks about it, if not, have fun with it. Hope this helped :)
3. the loan you have is for a max of 7,500 and the value of the car had better be worth more so the lending place wont lose money if they have to repo the car
4. To be on the safe, side just use all the money to buy a car