When a car loan is charged off as bad debt and purchased by another lender, the original lender has decided to sell the debt to another financial institution after determining that the debt is unlikely to be repaid. Instead of continuing to pursue collection efforts, the original lender sells the charged-off debt to another financial institution. This is a common practice in the lending industry. The ownership of the debt shifts from the original lender to the new lender who purchased it. The new lender now has the right to collect the outstanding balance from the debtor, and the new lender will likely make efforts to collect the debt from the debtor. They may employ their own collection department or outsource the collection to a third-party agency. It's important to note that even with the debt being purchased by another lender, you must repay the outstanding balance. Be sure to contact the new lender and discuss repayment terms. Because car loans are secured by your vehicle, you don't want to deal with the possibility of the new lender attempting to repossess the vehicle.