Asked by j
A year ago, Tony purchased his first car. He was so excited and could not wait to drive it around and show all of his friends. Today, he still loves his car, but the excitement has worn off. Lately, he has been late on his payments, and he even missed one due to carelessness.
What will most likely happen if Tony continues to make late payments? Check all that apply.
The bank might take his car.
The bank will charge late fees.
His credit history might be damaged.
He might be charged a down payment.
He might have to add an asset to the loan.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answers:
- The bank might take his car.
- The bank will charge late fees.
- His credit history might be damaged.
Why: An auto loan is typically secured by the car, so continued missed payments can lead to repossession. Lenders assess late fees and report delinquencies to credit bureaus, which harms credit scores. He would not be "charged a down payment" (down payments are made at purchase), and lenders don’t normally force you to "add an asset to the loan" — they might demand a cosigner or pursue other remedies, but they don’t simply add an asset to the loan.
- The bank might take his car.
- The bank will charge late fees.
- His credit history might be damaged.
Why: An auto loan is typically secured by the car, so continued missed payments can lead to repossession. Lenders assess late fees and report delinquencies to credit bureaus, which harms credit scores. He would not be "charged a down payment" (down payments are made at purchase), and lenders don’t normally force you to "add an asset to the loan" — they might demand a cosigner or pursue other remedies, but they don’t simply add an asset to the loan.
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