Question

Carl makes a $0 down payment on a 0% interest loan for a new car. What may occur if Carl cannot make payments?

a) Repossession
b) Interest charges
c) Credit score improvement
d) Nothing, it's a 0% interest loan

Answer 1

If Carl cannot make payments on his 0% interest loan for a new car, repossession may occur.

Step-by-step explanation:

If Carl cannot make payments on his 0% interest loan for a new car, repossession may occur. Repossession is the process where the lender takes back the car because the borrower has failed to make the required payments. In this case, even though the loan has a 0% interest rate, the borrower can still lose the car if they are unable to make the payments on time.