Q: Can a car dealership hold a title and accept payments on a vehicle without financing through a bank or loan company
A: Many car dealerships hold titles and have payments made directly to them. This is more common when purchasing a used car than a new car. There is nothing illegal or improper with the car dealer holding the title and taking payments provided that the dealer has properly registered his loan business with the proper agency.
Usually, when a car dealer holds the title and takes payments, the interest rate is much higher than from a bank or credit union.
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