You may have seen some cool modified cars driving around and wondered if you could do the same to your own car. After all, it is your car, and you should be able to do what you want. Well, the answer isn’t quite that simple.
You must get permission from the lender before making any modifications. The lender technically owns the car until you have paid off the personal loan. That means they have a say in what happens to the car and how it is used.
Now, this doesn’t mean that you can’t ever modify a financed car while being the legal owner. It means you will need to get permission first and ensure that the modifications don’t put the loan at risk.
In this blog, you can find out about the pros and cons of a modification of a financed car.
Why Is Car Modification Not Allowed In A Financed Car?
Car modification is generally not allowed because it could affect the value of the car, making it more challenging to sell if you need to before the loan is paid off. Well, there are a few reasons for it.
- If you make changes that decrease the car’s value (such as by adding aftermarket parts that are not covered by the warranty), the lender may require you to pay back more money than you originally borrowed.
- Modifications can also affect the insurance on the vehicle. If you make changes that result in a higher car insurance premium, the lender may require you to pay for this increase.
- Some lenders simply do not allow modifications to be made to financed cars as they see it as an unnecessary risk.
If you’re interested in modifying your car, it’s best to wait until after you’ve paid off the loan. That way, you can do whatever you want to your vehicle without worrying about the repercussions.
What Are Considered As Aftermarket Modifications?
There are a few key things you should know about aftermarket modifications before making any changes to your car.
- First, any modification not part of the original manufacturer’s specifications is considered an aftermarket modification. This can include anything from custom paint jobs and decals to performance-enhancing modifications like suspension upgrades or engine tunings.
- Secondly, any modification that is not part of the original manufacturer’s warranty is also considered an aftermarket modification. It means that if you make any changes to your car that void the manufacturer’s warranty, you will be responsible for all costs associated with repairing or replacing any parts that are damaged due to modification.
- Finally, it’s important to keep in mind that your insurance company may consider any aftermarket modification to be a high-risk change that could impact your coverage. This is why it’s always a good idea to check with your insurer before making any changes to your car.
Key Takeaway: With all of this in mind, there are still plenty of great reasons to make aftermarket modifications to your car. Just be sure to do your research and understand the potential risks before making any changes.
How Can I Modify A Car While In A Loan?
If you’re considering making modifications to your car while it’s still on a car loan, there are a few things you should keep in mind.
- First and foremost, you’ll need to get approval from your lender. Depending on the nature of the modification, the finance provider may be receptive or they may not. If they do approve the modification, they may require you to increase your loan amount or extend the loan term in order to cover the cost of the modification.
- If you’re not able to get approval from your lender, there are still a few options available to you. You can either try to find another lender who may be more receptive to the idea of a car modification, or you can modify the car yourself and hope that your lender doesn’t object. Keep in mind, however, that if you do modify the car without approval, you may be violating the terms of your car finance agreement and could end up in default.
Ultimately, whether or not you’re able to modify your car while it’s still on a loan will come down to your individual situation. If you have the approval of your lender, go ahead and make the modifications you desire. If not, you’ll need to weigh the risks and benefits of doing so before proceeding.
What Happens If You Mod A Financed Car?
When you’re thinking about making some modifications to your financed car, it’s important to know how this could affect your loan. Depending on the type of modification, it could either increase or decrease the value of your vehicle.
Some modifications, like a new paint job or upgraded tires, may actually increase the value of your car. But other modifications, like installing a powerful stereo system or adding racing stripes, could actually decrease the value of your car.
If you reduce the value of your car with modifications, you may end up owing more on your loan than your car is actually worth. This is called being “upside down” on your loan, and it can put you in a difficult financial position if you ever need to sell or trade-in your car.
Check Out Should You Mod a Car You Do Payments on?:
Can You Modify Your Car But Return To Its Original State?
The answer is yes; in most cases, it is possible to modify your car and then return it to its original condition later on down the road.
Of course, some modifications will be permanent, such as repainting the car or adding new decals. But for the most part, the majority of modifications can be undone relatively easily. So if you’re thinking about making some changes to your car, don’t worry – you can always change your mind later on and return the car to its original state.
FAQs
Can you paint a car that has been financed?
Yes, you can paint a financed car. There are a few things to keep in mind, however. First, your lender may not approve of the change. Secondly, painting a car may affect its resale value, so be sure to factor that into your decision.
Can you make changes to a leased car?
Yes, you can typically modify a leased car as long as you get approval from the leasing company first. Be sure to check with your specific leasing finance company for their guidelines on modifications.
Generally, most companies allow simple modifications such as adding window tinting or aftermarket wheels. However, more extensive modifications, such as engine swaps or body kits, may not be permitted or may void your lease agreement. So be sure to check with your leasing company before making any significant changes to your leased vehicle.
Final Considerations
So, can you modify a financed car? Well, check with your lender to see if there are any restrictions on modifications. Any changes you make could potentially affect your car’s resale value.
Before making any modifications to your financed car, it’s important first to take approval. They may have specific restrictions on what types of modifications are allowed, and they can help you understand the potential risks involved.
With all that being said, there’s no reason you can’t enjoy a little customization with your financed car.
