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You owe $2,300 on your motorcycle. What type of debt is this?

2 Answers

1 vote

Answer:

An Auto loan

Step-by-step explanation:

An Auto loan is a type of loan/debt incurred by an individual or a group or even an organization or Government used for the purchase of Automobiles such as cars, buses, motorbikes and other kinds of automobiles in the market for the purpose of useage.

Auto loans a re been issued by Financial institutions licensed by the Government to carry out such functions to its customers and also to the general public especially to people who are qualified for such loans. in some cases a collateral is required before such loans can be issued out.

User Vidit
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The type of debt when "You owe $2,300 on your motorcycle." would be a perfect example of an auto loan. To add up, an auto loan takes place when a lender lets you borrow a specific amount of money for you to buy a motorcycle, a car, or any vehicle, provided that you will pay the money you borrowed at a monthly rate including the interest.
User MCollard
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