Car loan rules
First of all, car dealers do not have to provide a loaner vehicle to a customer if their vehicle is being repaired which can take anywhere from a few hours to a few days. When car dealerships provide a loan, it is usually a courtesy service. The only exception to this rule is if your car is relatively new and under a warranty agreement that states that a loan will be provided by the dealership during repairs.
However, some dealerships will work with a car rental company and help close a deal that will keep you on the road until your car is fixed. Keep in mind that you need to be sure of the terms and conditions of the rental, as it will likely be your responsibility and not the car dealership‘s if you find yourself scammed by the rental car company.
If you’re lucky, however, the dealership may have an additional vehicle on hand that they use as an occasional loan. You are good to go, but you should understand that there are certain rules that you must follow, such as:
â¢ Have transferable insurance and a driver’s license.
â¢ Do not exceed mileage limits.
â¢ Keep the lender in the state.
â¢ No smoking or the transport of pets or livestock.
â¢ Be subject to rental charges if not returned when specified.
â¢ Charges could be billed to the driver when, on his return, the courtesy vehicle has a lower fuel level than that which he had when he was checked.
â¢ Parking tickets, toll violations, etc. are the sole responsibility of the person signing for the vehicle loan which will be charged to a credit card plus processing fees.
â¢ No abusive conduct (some lenders have GPS and accelerometer tracking devices to catch violators)
Loan stories involving bad clients and accidents
Previously, we have discussed some auto dealer scams and a variety of unsavory business practices implemented by dealerships. In all fairness, it’s worth mentioning that not all dealers are bad or sketchy — there are dealers who are genuinely honest and care about their customers.
That said, it’s when it’s the customer who does the wrong thing or has an accident with a loaner vehicle that we learn about some of the issues that auto dealers face every time they take a chance and deliver a vehicle. loan to a client.
The following is a recent video from “Car maintenance nutâYouTube channel, hosted by a mechanic that has an entertaining insight into car loan stories that might make you understand why a dealership might not offer loaner cars to their customers.
Crazy Inside Dealer Stories: Loan Edition
If you have a car loan history, be sure to let us know in the comments section below.
For additional articles related to the topic, be sure to check out the following related articles “A Dealer Horror Story That Could Happen To You”; and “Scam Alert: What Dealers Don’t Want You To Know About Used Car Inspections.”
Timothy Boyer is a Cincinnati-based Torque News automotive reporter. Experienced in early car restorations, he regularly restores older vehicles with engine modifications for better performance. Follow Tim on Twitter at @TimBoyerWrites for daily automotive related news.
Photo by Mick Haupt on Unsplash