Do you have a car loan or own outright?

[MissEm]

We own both cars outright. Ford Territory 2010 and Toyota Camry 2008. Personally we wouldn't ever take out a loan to buy a car. An example why:
My brother took out a loan to buy a car, then sold it when he wasn't around to use it. He doesn't have the car but is still paying off 3/4 of the loan.

[Miss.September]

We own both cars outright. Ford Territory 2010 and Toyota Camry 2008. Personally we wouldn't ever take out a loan to buy a car. An example why:
My brother took out a loan to buy a car, then sold it when he wasn't around to use it. He doesn't have the car but is still paying off 3/4 of the loan.

I'd say that he had a personal loan for this, as opposed to a car loan. We wanted to roll over the loan from one car to the other, and we were told by both the bank and the car yard that it's illegal, because the car is the security. If you sell a car that has money owing on it, then the bank can't claim the car if the loan is defaulted on. We had to pay out one loan, then sell the car, then get the loan for the second car. So we still rolled it over as such - the amount didn't change, we just had to pay one out.