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Can I Modify A Car Under Finance In Lincoln?

Can I Modify A Car Under Finance In Lincoln?

Can you modify a car under finance in Lincoln?


We don’t see so many modified cars around anymore but there is still a tightknit group of enthusiasts who can to amazing things to standard cars. One question our Lincoln auto loan team were asked recently was about modifying a car with outstanding finance.


Modifications come in all shapes and sizes. While we immediately think of body kits, lowering kits, big wheels and garish colours, a simple tow hitch or stereo upgrade can also count as modification.


Can you modify a car with outstanding finance in Lincoln?




Modifying a financed car


Much depends on the type of finance you have on the car. If you’re using a personal loan or unsecured auto loan, you can modify your car. If you’re using manufacturer or dealer finance or use a secured car loan, you usually cannot modify the car.


It all comes down to ownership.


For unsecured loans, you own the car. You’re paying back the loan but the car is yours and your property to do with as you want. You can modify it or do anything you like with it.


When you pay for the car, you become the registered owner. This entitles you to full rights over the car. A lender may still be able to repossess the car if you default on the loan but if you keep up payments, it’s yours.


Car ownership and modification


With most manufacturer and dealership finance and secured loans, you are not the legal owner of the car. You only become the owner once the finance is paid off in full. You are not the registered owner in the eyes of the law so have to abide by any limitations within the loan agreement.


Most finance packages like this will include limitations on how you can customize your car until you own it. Some Lincoln car loans even include things like changing car mats or wheels as unacceptable modifications!


Whatever you plan to do with your car, you should check your auto loan paperwork first. Even if you used an unsecured loan, a quick scan of the loan agreement should tell you in no uncertain terms whether you can modify it or not.


You can then use your judgement as to whether you change the mats or upgrade the audio system!


Modification and value


If you do plan to modify your car, always have an eye on future value. Not only for trading in or selling but also in case of repossession. If you lower the value of the car and repossession isn’t enough to settle the finance, you could be on the hook for the remainder.


While not something to stress about day to day, it is something to consider when you begin any plans for modification.


There is a lot to understanding Lincoln auto loans and the various conditions. If you need help, contact our team.


We will use all our skill and experience to deliver the lowest possible Lincoln car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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