Mark purchased a very expensive automobile on credit. Within a week, Mark discovered that a tune-up was necessary, for he was in the habit of driving at an excessive rate of speed. When the car was repaired, the bill was more than $1,000. Mark does not have the money to pay for the car repairs or the monthly car payments. The credit company as well as the repair shop are concerned over who has priority of repayment. Who has priority and why?

Question

Peter Bright

Business

30 November, 00:08

Mark purchased a very expensive automobile on credit. Within a week, Mark discovered that a tune-up was necessary, for he was in the habit of driving at an excessive rate of speed. When the car was repaired, the bill was more than $1,000. Mark does not have the money to pay for the car repairs or the monthly car payments. The credit company as well as the repair shop are concerned over who has priority of repayment. Who has priority and why?

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Answers (1)

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Nehemiah Wang · Answer 1

The Credit Company had priority of payment as the car was bought on credit. And since purchase is on credit all the legal documents of the car ownership are hypothicated in credit company's name.

Also, the Repair shop has done tuning of the car but does not have any legal documents related to car's ownership.

Therefore, Credit company should have priority of payment.