My friend has just moved out of state but before he moved he went and financed a car then made like 4 payments on it and he thinks now he has a car for like $500 and he will not have to make another payment on it is that true? (He got it from some run down car lot)

Of course it's not true -

Your friend DOES realize that non-payment will show up on his credit report, correct?

And your friend DOES realize that he'll have to register the vehicle with the VIN which is exclusive to that car and will continually show a lien until he pays it off in full and receives a lien release, correct?

And your friend DOES realize that if they repossess the vehicle, he still has to pay whatever the difference is between what he owes and what the dealership sells the car for, correct?

Hello:

I understand your friend. When I got my first checkbook, I thought the bank had just given me all their money. It really blew me away when they wanted it back.

Tell your friend, there ain't no such thing as a free lunch.

excon

Let me add to this, is that the "run-down" used car dealer did not finance this car. They worked with a lender to do so. Lower tier dealers often work with lenders that expect buyers to go deadbeat on them and are prepared to take action.

So it doesn't matter where he moves to. They will have an affiliate to repo the car.

Bottomline as the other said, this will ruin his credit. It may not be criminal unless they can prove he deliberately intended to do this, which is fraud. But his life will likely be ruined either way.