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Can I Modify A Car Under Finance In Milton?

Can I Modify A Car Under Finance In Milton?


It’s customer question time again. This time, something a little different from the usual questions we receive. No less interesting though. The question was ‘Can I modify a car under finance?"


The answer is yes, sort of. But should you?


Car modifications and finance


The legality of whether you can modify a car under finance depends on the type of auto loan you have.


If you have a secured loan, you are not usually permitted to modify the car in any way that will reduce its value. This is because the lender will want to sell the car if you default on the loan and anything you do to reduce its value will not go down well.


If you have an unsecured auto loan, the car is yours to do with what you want. You can modify it as much as you like as the loan is not secured on the car.


Direct financing from a dealership is more like a secured loan. Most will have clauses in the loan contract preventing you from customizing the car.

Should you modify your car?


This is a wider question and has as much about taste as it does about finance.


If you own the car outright or have an unsecured loan, you can do whatever you like with it. However, you need to make sure you can keep up repayments and that the modifications you do won’t reduce its value.


You also have to make sure that whatever you do to your car won’t reduce the chances of you being able to sell it or trade it in.


Trading in modified cars


Many dealerships don’t like taking modified cars as trade ins. They are something of an unknown quantity and can require remedial work to bring them back to stock. As dealerships tend to resell used cars on their lot, any work they have to do will be reflected in the price they offer.


Selling modified cars


The custom car scene is a thriving one but it is also a relatively small one. If you have made serious changes to your car, you may find it difficult to sell when you want to change.


While that shouldn’t necessarily influence your decision, you should bear it in mind if you don’t plan on keeping the car for a significant length of time.


Whatever you do to your car, keep at least half an eye on future value and resale potential. Bear in mind that many serious customizations will put a dealer off accepting it as a trade in.


If you have already customized your car, you may be better off selling it yourself and using the cash as a down payment. The path to a new car would be a lot smoother that way!


For those of you who know that you have a challenging credit situation, please visit Car Nation Canada Direct where we have a team of credit specialists ready to help you get approved for a car loan today!


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