With most auto loans,what is used as collateral?
A)Certificate of deposit
B)Stock
C)The purchased auto
D)No collateral is needed because of your outstanding credit.

Question

Quizplus · Accepted Answer

The purchased auto is used as collateral for most auto loans. This means that if the borrower defaults on the loan, the lender can repossess the vehicle to recoup some or all of their losses. This is standard practice for auto loans and ensures that the lender has a way to recover their investment in case the borrower cannot make their payments.

With Most Auto Loans,what Is Used as Collateral