Lessor vs. Lessee of a Vehicle

A vehicle lessor is a dealership or leasing company that leases its vehicles to individual lessees. State laws establish the contractual requirements that lessors must comply with when leasing their vehicles to lessees. Vehicle lessors must also comply with federal laws, including federal loan disclosure laws and the Federal Consumer Leasing Act. The Federal Trade Commission administers the federal consumer protection laws, while state regulatory agencies administer state laws.

Consumer Leasing Act

According to the federal Consumer Leasing Act, vehicle lessors who lease automobiles to consumers for personal use are required to disclose their leasing terms in their advertisements and in their written contracts. Vehicle lessors must provide consumers with disclosures of their capitalized loan costs and their financing rates. Attorney Generals in most states protect consumers against deceptive auto leasing practices. To further protect residents, state laws strengthen the existing federal consumer protection statutes and impose additional penalties on leasing companies who violate the federal or state consumer protection laws.

Types of Leases

The two main types of lease agreements are open-end leases and closed-end leases. Lessees subject to closed-end leases can return their vehicles and are not responsible for other fees, except for excessive mileage or usage fees. Lessees subject to open-end leases pay diminution fees, or the difference between their vehicle's fair market value at the beginning of their leases and end of their leases. Under both types of leases, lessees also pay inception fees, or down payments, acquisition expenses and tag and title fees. Lessors may also charge early termination fees if lessees prematurely end their vehicle leases.

Mandatory Federal Disclosures

Federal law requires lessors to use written leases when leasing their vehicles. Their written leases must include mandatory disclosures. Vehicle lessors must state whether they are offering vehicle warranties, require routine maintenance and whether lessees are responsible for regular maintenance or repairs. Lessors must also include any insurance requirements and whether lessees are responsible for insuring their vehicles.

Regulation M

The Federal Reserve Board requires lessors to comply with Regulation M. The regulation requires lessors to include a written disclosure of their financial lease terms by showing annual compound interest charges and annual percentage rates. Regulation M does not apply to lessors who lease vehicles valued at more than $25,000.

State Laws

Many states have passed additional statutes requiring lessors to provide additional disclosures. For example, the New Jersey Consumer Protection Leasing Act gives consumers a 24-hour right of rescission, or "cooling-off" period. Under this act, consumers can rescind their agreements within 24 hours without paying early termination fees.

Read More

How Much Money Does a Dealer Make on Financing a Car Loan?

Dealers often make less profit in car sales because of the widespread availability of invoice pricing and incentive information, but they make up for some of this by getting money from things, such as financing, insurance and warranties, according to Cars.com writer Joe Wiesenfelder. The amount a dealer makes on car loans depends on various factors.

Process

Most dealers do not directly finance their customers' vehicles. They act as middlemen, shopping around with various banks and finance companies, communicating the results and handling the loan paperwork. This process allows them to add additional points to the interest rate. The dealer can retain the entire additional amount as profit or share it with the lender, and the law does not require disclosure to you. There is no standard added amount, but "The Wall Street Journal's" Smart Money column explains that it is common to add two percentage points.

Prevention

Save money by arranging your own financing before you start car shopping. Start with the bank or credit union where you currently have your accounts and check out loan shopping websites. You save money with a pre-approved loan direct from the lender because no one is boosting the interest rate to get extra profit.

Warning

Some car dealers are especially likely to wring profit out of vehicle buyers with bad credit because they have fewer options. These sellers know you cannot readily get a loan on your own, which makes you more likely to accept the financing they offer, even if the rate is very high. "The Wall Street Journal" Smart Money column warns that some even claim the lender requires you to buy an extended service plan, even though that is untrue. You may be able to get pre-approved and avoid the hassle if you save up a large down payment and select a modestly-priced car. Otherwise, consider asking a family member or friend to co-sign the loan. You qualify based on the other person's good credit record, but he is equally responsible for the loan, so you destroy his credit rating if you default.

Considerations

Bad credit puts you in a difficult position for getting car loans, but you can offset some of this by repairing your credit before car shopping, according to Edmunds editor Warren Clarke. Order free credit report copies from TransUnion, Equifax and Experian through AnnualCreditReport.com, which provides one free copy from each bureau annually. Find mistakes that hurt your credit score, such as incorrectly dated delinquencies or inflated balances, and dispute them. According to the Federal Trade Commission, credit bureaus are obligated to research your claims and remove mistakes within a month. Start the loan-hunting process once the bad items are erased from your credit reports.

Read More

Financial Responsibility & Autos

Buying a car is one of the biggest investments most people will make in life. Financial responsibility with regard to cars includes a number of considerations. Much of your financial responsibility with car purchases centers on the actual purchase process and often associated financing, along with buying and maintaining insurance. Well-planned purchases can save you a lot of money and hassle with cars.

Financing Basics

For many people, home loans and car loans are a common way of life. When buying a car, you can usually finance a loan through the dealership, or by obtaining financing ahead of your car purchase. While dealership financing is convenient, and often produces a reasonable loan rate and terms, shopping around or arranging financing ahead of time may offer better opportunities. Car loans are usually paid off in periods of time ranging from 36 to 72 months through monthly payments of principal and interest.

Additional Insights

Home equity loans are lines of credit allow you to tap into your home's financing to borrow funds. Since your loan is secured by your real estate property, you usually get a much better rate than you would from an unsecured loan. Independent lenders may also make sense if you already have financial relationships with them. Paying off extra principal each month can expedite the repayment of your loan and save you on interest.

Insurance Basics

Liability car insurance is required in some form in 48 states, as of April 2010, according to the "Truth About Insurance Website." Wisconsin and New Hampshire are noted as not having liability insurance requirements, but drivers are required to show the ability to pay for damages to a third party in an at-fault accident. Liability pays benefits for bodily injury and property damage to another party. Along with the financial responsibility of carrying liability insurance, you may also consider comprehensive and collision benefits. Collision coverage pays benefits when you are in an accident; comprehensive covers other common causes of damage.

Insurance Breaks

One of the best ways to save money on insurance is to drive responsibility and to prove your worth. Many insurance providers offer discounts for good grades and advanced safety features, along with a proven history of safe driving. Defensive driving and avoiding accidents can save you extensive increases to your premiums and insurance costs. Making on-time payments to your carrier avoids late payment penalties. Additionally, by paying in full (every six or twelve month), you can usually get a price discount.

Read More

How to Calculate the Car Payment with a Trade-In Vehicle

When you are purchasing a new car, you can greatly reduce the amount of your monthly payments by trading in another car. The amount you get for your trade-in vehicle depends on the value of that car. You can calculate the amount of your monthly car payments with a trade-in vehicle by making a few decisions about your loan length and what type of car you are purchasing.

Instructions

1

Determine the amount your new car costs, including taxes and fees, the amount you are granted for your trade-in vehicle, the interest rate of your loan per month and the number of monthly payments you want to make. Your dealership or bank can tell you the cost of your new car and your interest rate per month. You can determine your monthly interest rate by taking your annual interest rate and dividing that number by 12 months. Typical car loans last from 36 to 60 months, but there are exceptions.

2

Subtract the amount you will receive for the trade-in vehicle from the amount you owe for the new car, including taxes and fees. This is the total amount of the principal of your car loan.

3

Calculate your monthly car payment with a trade-in vehicle using the Amortization Calculation Formula (see Resources). You should use the formula under the "Calculating the Payment Amount Per Period" section of this web page, where the principal P is the total amount from Step 2, interest rate R is the total interest rate per period from Step 1 and the number of car payments is indicated by N. Multiply the interest rate per period R by "1 plus R to the Nth degree." Divide that figure by "1 plus R to the Nth degree" minus 1. Multiply the total by the total amount of the principal P.

The result is your monthly car payment with a trade-in vehicle.

Read More

How to Determine the Payoff of a Car Loan

An auto loan is one of the biggest loans you will take out in your life. Your auto loan depends on the amount of money that you paid down on the car and your interest rate, and can cost you as much as several hundred dollars every month. Paying off an auto loan is often a big relief and means extra spending money with every paycheck. Only a few simple calculations are needed to figure out how much you need to pay off your auto loan ahead of time.

Instructions

1

Determine the principal amount of your loan. This can be found on the loan contract or your bill stub. It is the amount of money that was loaned.

2

Determine the annual percentage yield (APY) of your car loan. This can be done by subtracting your monthly rate from one and then multiplying this total by the number of years of your loan minus one. In other wods, APY=(1 - rate per period)(number of periods in a year - 1). This is the total interest of the loan.

3

Add your answer from Step 2 to your answer from Step 1.

4

Add the total amount of payments you have made thus far. Subtract this number from your answer in Step 3.

5

Add onto the answer from Step 4 any prepayment fees included in your contract. This figure equals the payoff for your car loan.

Read More

How to Buy a Car at 17 Years of Age

Although many states allow you to obtain a driver's license at the age of 16, it may surprise you to learn that you might not be able to purchase a car legally by yourself until you reach 18 years of age. This is generally because a juvenile or minor cannot enter into a legal contract. Laws do vary from state to state, however, so you may find that with a consent form signed by your parents you can still purchase a car, or your parents may agree to purchase and let you pay for the car, but you will not have full ownership of it until you have another birthday.

Instructions

1

Check with your local Department of Motor Vehicles to find out the minimum age requirement for the state in which you live. Inquire about whether your state allows you to purchase a vehicle if your parents sign a consent form.

2

Determine how you will pay for the car. Remember to add in the cost of insurance, the vehicle registration and the title. Your parents will be more likely to consider your request to have them help you purchase a car if you can show them that you have thoughtfully planned how to pay for it.

3

Talk to your parents about signing the legal documents for the car you wish to purchase. If you wish to finance a vehicle, you may find that you can be listed as a co-owner. Your parents, however, will still be the legal owners of the vehicle.

Read More

Can Your Car Be Repossessed Because You Don't Have Insurance?

It is unlikely that your lender would repossess your vehicle if you aren't maintaining your insurance policy. However, repossession reasons differ by lender; if your contract states your vehicle will be repossessed for lack of insurance coverage, the bank will collect the vehicle. Further details about repossession and insurance requirements are outlined in your loan contract.

Your Loan Contract

Review your loan contract. Reasons for repossession are stated within your paperwork. Many lenders do require a full coverage policy on vehicles with active loans, but repercussions often include adding an insurance policy to your vehicle's loan instead of repossession. Otherwise, your insurance provider must notify your lien holder of policy cancellation, in which case the lender can pursue repossession. Your lender may try to contact you first, but it does not have to if the contract clearly states otherwise.

Contact Your Lender

Your lender may contact you if it hasn't received notification of an active insurance policy or if your insurance company fails to properly update your lender of your policy renewal. Call your lender or respond to any correspondence to correct the insurance matter. If you plan to purchase another policy, let your lender know immediately. If you are maintaining a full coverage policy on your vehicle, provide proof of insurance to your lender to stop the repossession process.

Lender-Added Policy

Instead of repossession, your lender may add an insurance policy to your loan, which increases your monthly payment. Check your contract over to determine if your lender will pursue its own insurance policy. If so, your vehicle will not be repossessed, but expect your car payment to increase. Insurance policies obtained by lenders are not cost competitive; most policies are short term and exceed $1,000. An individual policy is lower priced. Additionally, if you do not pay your new car payment amount, late payments are reported to the credit bureaus, which affect your credit standing.

Maintaining Insurance

Do not let your insurance lapse. State rules vary, but many require active insurance policies for registered vehicles. Unless you turn in your license plates, you may also face fines or license suspension from your state's motor vehicle department. Your insurance company must also notify your state if your insurance lapses or cancels. If you do want to take your vehicle off the road, you may be able to purchase a comprehensive policy if your lender allows it. A comprehensive policy is cheaper than full-coverage insurance and may allow you to save money until you can afford proper insurance coverage again.

Read More

Auto Refinancing Information

Auto refinancing can result in paying a better rate on a car loan. Lower rates can reduce your present auto loan payment and free up cash to use on other expenses. But before meeting with an auto lender to refinance your loan, understand how the process works and consider the pros to refinancing.

Definition

Auto refinancing is the process of completing an application for an entirely new auto loan, wherein the new loan pays off the original auto loan. You can refinance with your existing auto loan lender, or choose to refinance with a different bank or loan company to acquire a better rate and loan terms.

Reason to Refinance

Modifying the terms of the original auto loan and getting a better interest rate on the loan is a key reason to refinance an auto loan. Some consumers have bad credit when applying for a loan, which results in a higher finance rate and payment. But if their score improves a year later, they can refinance and hopefully qualify for a lower rate. Paying a reduced rate saves money each month, and consumers pay less interest over the life of the loan.

Considerations

While getting a lower interest rate on an auto loan is a logical reason to refinance, certain situations do not justify refinancing. Let's say you're about to pay off the auto loan within two or three years. Refinancing often results in extending the auto loan, perhaps for another five years. Even though an extension can significantly lower monthly payments, you'll pay more money in interest over the life of the loan.

Present Balance

Refinancing an auto loan has certain limitations. For example, auto lenders check the balance on your present car loan, and if you owe less than $7,500 on the vehicle, the lender may not refinance the car loan.

Credit History

Boosting your credit score before speaking with an auto lender can improve your odds of refinancing. Lenders check your personal finances and credit history to see if you meet the qualifications for an auto loan. A good payment history and few debts help you qualify. And the higher your credit score, the lower the interest rate on the auto loan. Applicants with a poor credit history often qualify for higher interest rates and pay higher car payments.

Read More

Low APR Vs. Cash

Consumers shopping for a new automobile may find a range of financing alternatives from which to choose. They may, of course, pay cash, but for many if not most the choice involves consideration of the annual percentage rate and a "cash back" incentive.



Cash back is a popular enticement that automobile manufacturers and dealerships offer in order to encourage people to buy a new vehicle. While these offers may seem like---sometimes actually are---a good deal, potential car buyers should weigh other factors to determine if the cash-back incentive makes financial sense.

Cash-Back Program

Cash-back incentives typically work like this: The car manufacturer offers a cash-back reward for people who buy a new car, let's say $5,000. A consumer goes to buy the new car from a car dealer, agrees to a financing plan and uses the $5,000 as part of the car's down payment.

APR

A new car is a major purchase, and few people pay cash for it. Most consumers obtain a loan to buy a new car, sometimes financing the purchase through the manufacturer or the associated financing department. A car loan, like all loans, comes with the interest rate expressed as an annual percentage rate, or APR. As of April 2, 2011, according to Bankrate, the average APR for a 48-month new car loan was 4.38 percent.

Low APR or Cash Back

Some car manufacturers offer a combination cash back and a low interest rate. Some of these offers are either/or, meaning the consumer may choose either the cash-back reward or the low interest rate, while others offer both cash back and low interest.

Calculation

If you're faced with a choice between purchasing a car with a cash-back incentive or a low APR, you must perform a few calculations. There are several automobile websites that offer calculators that help with this task. For example, if you're offered $5,000 cash back or a 1.0 percent APR on a 48-month loan for purchase of $24,230---with no trade-in or cash down---you'll save $13 per month by choosing the low financing over the cash-back offer.

Cash Purchase vs Low APR

Another option for car buyers is to skip financing altogether and pay for a car in cash. Buying a car in with cash saves you money in the long run as you don't have to pay interest, but it also takes a lot of money out of your pocket. As long as you aren't taking money out of your emergency funds or selling other assets to purchase the car, buying a car with cash is often a good option.

Read More

Can You Refinance a Vehicle Without a Co-Signer?

Refinancing essentially involves getting a new loan with different terms. It's possible to refinance an auto loan without a co-signer, even if your payments aren't up-to-date. However, it's important to determine if refinancing will improve your financial situation before you sign on to a new loan to avoid taking on more debt than you can afford.

Affordability

Some lenders will allow you to refinance your auto loan without a co-signer to lower your monthly car payment if the payment is no longer affordable for you. However, you must give your lender details about your financial situation, including the reason you can no longer afford the monthly payment. Lenders sometimes prefer to refinance loans to prevent borrowers from falling behind on payments. The refinanced loan may include a lower interest rate, especially if your credit rating has improved since you originally took out the loan. A lender also may extend the loan period for the remaining balance of the loan to lower your payments.

Repossessions

You may be able to refinance an auto loan without a co-signer even if you're at risk of having your vehicle repossessed. The Better Business Bureau notes that auto repossession often costs lenders several thousand dollars, so your auto lender may be willing to refinance your loan even if you're already behind on payments to avoid a repossession. This option will likely work best if you contact the lender to explain your financial situation instead of accruing late payments and avoiding the lender's collection calls.

Removing Co-Signers

Refinancing is usually required if you want to remove a co-signer from an auto loan. Your chance for getting your lender to agree to remove the co-signer is greater if you have made payments on time each month since taking out the loan. Contact other lenders to find out if they will refinance your loan based solely on your creditworthiness if your current lender refuses to do so. Watch out for interest-rate changes in this scenario that could make monthly payments on your new loan unaffordable. Some lenders may only agree to refinance your loan without a co-signer if you pay a higher interest rate on the new loan.

Considerations

It's worth the trouble to shop around for a lender who will refinance a co-signed auto loan if its unaffordable. Your lender could require you to pay off the balance on your loan along with other fees if the lender has to repossess your vehicle. In such cases, you would continue to pay for a vehicle you no longer own, and the repossession would damage your credit score as well as your co-signer's score. The lender also could require your co-signer to pay off the loan.

Read More

Will My Car Still Be Repossessed Even If I Make Payments?

It's unlikely that your lender will repossess your vehicle while you're making payments as agreed upon. Reasons for repossession are outlined in your bank contract, so read it over for details or contact your bank. If you're unable to make your total monthly payment, call your bank immediately.

Regular Payments

Read your contract over to review the amount due and your payment's due date. If you make your scheduled payment on time every month, you aren't defaulting on your contract. Your bank contract likely also states that you must maintain a continuous, full-coverage insurance policy during your loan. If your payment has went up because the bank had to apply a full-coverage policy itself, call the bank immediately to rectify the situation. If you have insurance on your vehicle, you can submit proof and your payment will return to normal.

Late or Partial Payments

If you're unable to pay your entire car payment, call your bank right away. Pay as much you can only if you can pay the remaining due before your next due date. Your bank must agree to any payment arrangements. Until you have an agreement, the bank can still repossess your vehicle and you'll lose the money you sent in. Before you call your bank to discuss payment options, figure out your budget. Determine the dates and amounts you can pay until you're caught up. This way, you won't agree to a payment plan that you cannot afford.

Payment Agreement

If your bank is willing to work with you, ask to have the agreement in writing. Having the agreement documented protects you from repossession. Although the bank representative can likely update your account to reflect a payment plan, collection calls or repossession can still occur if you can't prove your agreement. After signing the document, keep a copy of it until your loan is paid off. Late or incomplete payments may affect your interest charges, resulting in a higher loan payoff amount.

Deferment

If your payment history with your lender is satisfactory, it may allow you to defer one or several car payments. A deferment allows you to skip payments without defaulting on your loan. Your loan term will then be extended by the amount of payments you miss. Your bank won't repossess the vehicle during the deferment period. You can use the time to get your finances back in order, find another job or catch up on other bills if you're struggling.

Read More

What Is Needed to Refinance a Car?

The process for refinancing a car loan is similar to when you applied for your original car loan. Expect to provide your credit and vehicle information. Once your loan is approved, your loan provider may ask for additional information, such as proof of income or residency. Prepare yourself for the loan application process by having your information ready.

Loan Pay Off Amount

To determine the amount to apply for when refinancing, call your lender to obtain your car's payoff amount. Ask your lender to also provide you with your loan's per diem amount, or the amount of interest charged to your account daily. Unless you have a 0 percent loan, your per diem charges can exceed $10 each day. Discuss any loan payoff procedures with your lien holder, such as its process for lien or title release. Also ask if your lender charges any penalty fees for paying off the loan early.

Vehicle Information

Your new lender requires your vehicle information to determine how much you can borrow. Have your vehicle identification number (VIN) ready, which you can find on an insurance card or title. Also have your car's year, make and model information ready. Check your car's current odometer reading, which affects the loan value of your vehicle. Check your car for add-ons or additional features, such as a sunroof, advanced audio system, leather or heated seats, side-steps, a roof rack or DVD player; these items increase your car's value.

Credit Information

Expect to provide detailed personal and employment information for your credit application. Have your employer's name, address and contact information ready to provide your loan representative. Figure your gross annual income based on your most current pay stub; your lender likely requires a copy of your pay stub, known as proof of income. You'll also provide your name, time at current address, social security number and date of birth. Some lenders require references, so have at least three people's names, addresses and phone numbers ready to offer.

Proof of Insurance

Once your refinance loan is approved, expect to provide your lender with proof of adequate insurance coverage. Your lender should provide further information regarding your limits and deductible requirements. Most auto loan providers require full-coverage insurance, so you may not have to make a change to your policy coverage because of your previous lender's requirements. Obtain your new lender's name and address to provide to your insurance company, as your new lien holder must be listed as the policy holder's loss payee.

Read More

What Happens When Car Is Repossessed & Does Not Sell for What You Owe?

When your vehicle's value exceeds your loan payoff amount, you can sell it to pay off your loan balance and avoided repossession. Unfortunately, distressed borrowers often owe more than their vehicle's loan balance. You must satisfy the remainder of your loan balance with your lender, as you promised in your loan contract.

Understanding the Resale Process

Once your lender has the vehicle back in its possession, expect a letter stating the amount you can pay to retrieve your vehicle and the date the lender intends to sell it if you don't make payment. Your lender will likely sell the vehicle at auction for wholesale value, which is similar to the trade-in value offered through online appraisal guides. The car's sale amount is then subtracted from your loan balance, which includes late fees. If the lender had to hire a repossession company to seize the vehicle, it also adds repossession fees to your loan.

Correspondence and Payment Arrangement

Once the vehicle sells and the lender determines the amount you owe, the lender will send you a letter stating the balance due and where to remit payment. Even though you no longer have the car, you're still responsible for paying the debt, as you agreed to when signing your lending contract. Call your lender to set up a payment arrangement if you can't pay the balance in full. Otherwise, the lender will likely transfer your account to a collection company, which will try to collect the outstanding debt.

Settling the Balance or Paying in Full

You might be offered a settlement by your lender or the collection company to satisfy the balance on your car loan. If so, the collection company or lender may require payment in full or it may allow a payment arrangement. If you decide to settle the balance, meaning you'll pay less than you actually owe, you'll satisfy your account and owe nothing more to your lender. The Internal Revenue Service considers the unpaid balance on your loan as taxable income. Expect to report the profit on your tax statement and pay taxes on the unpaid balance.

Consequences of Ignoring the Debt

Ignoring your debt may cause further damage to your credit report and score. A repossession alone significantly decreases your credit score. The lender may also sue you at a later date to collect the balance due on the loan. If the lender wins, it may pursue a judgment to garnish your wages, which is also reported to the credit bureaus. Unless you claim bankruptcy, expect the lender to make attempts to obtain the unpaid balance, even if years later.

Read More

How to Remove an Ex-Spouse From a Car Title in Pennsylvania

Obtaining a divorce requires splitting assets obtained during marriage, such as a home or an automobile. In Pennsylvania, a court order is required if you are awarded a vehicle in a divorce and want to remove your ex-spouse from the title. Since the vehicle is already registered in Pennsylvania, the only fee required is the fee for issuing a new title.

Instructions

1

Get the original Pennsylvania car title. Use the title to complete the form required to remove an ex-spouse's name from the title. Also, obtain a copy of the court order granting your divorce and the rights to the vehicle.

2

Visit your local Pennsylvania Department of Transportation (DOT) office. Go to the motor vehicle title department.

3

Give the clerk a copy of your current Pennsylvania car title. Explain that you are removing your ex-spouse's name from the car title and have a court order.

4

Complete the MV-1 form supplied by the Pennsylvania DOT. This is the "Application for Certificate of Title." This is the required form since a new title must be issued in your name.

5

Provide a copy of your photo identification. Pennsylvania requires a current driver's license or photo identification card issued by the state, or a U.S. Armed Forces Common Access Card as proof of ID.

6

Give the clerk your completed application, a copy of your court order or divorce decree, and a check or money order payable to the Commonwealth of Pennsylvania for the $22.50 title fee required. This fee was accurate as of October 2010.

Read More

Rules for Buying a Car

When you set out to buy a car, you need to have a plan in place that will help you get the best deal and the highest value from the transaction. There are rules for buying a car that every consumer should become familiar with and use during the purchasing process. The sales professionals and lenders all have rules that they follow, so you should even the playing field and have some rules of your own.

Sell Your Old Car

The temptation to use your old car as a trade-in on your next car purchase is high. But to get the best value for your old vehicle, you should sell it yourself, according to consumer expert Des Toups, writing for the MSN Money website. If your old car still runs and is not in need of major repairs, try to sell it for the Kelley Blue Book value, which is more than the dealer would give you for a trade-in. Even if your old car cannot run, it still may be worth more in scrap than the dealer would be willing to give you on a trade-in. Contact a local auto salvage or scrap metal yard and ask what the scrap value is for your vehicle.

Saying No

One of the tools a car buyer has in getting the deal she wants is the right to walk away from a deal, according to car-buying expert Philip Reed on Edmunds.com. Whether you are planning on buying a new or used car, research the prices that other dealerships are offering so you know what price you can expect to pay. Use the Kelley Blue Book value as the maximum amount you would consider paying for any vehicle. Do not let the salesperson talk you into a deal you are uncomfortable with. If you do not feel a deal is fair, say no and walk away.

Watch for Deals

Do not settle for paying full price for any vehicle when there are always terms for negotiating a better deal, according to financial expert Amanda Gengler on the CNN Money website. The financial hardships of auto manufacturers can be your invitation to ask for a lower price from dealerships. Keep a look out for lease vehicles that get returned without being purchased. A dealership will offer an extended warranty on a lease vehicle that may not be available with any other used cars. Take advantage of the deals available on the car lot before you allow a sales professional to talk you into something you may have to special order.

Read More

Can I Transfer My Car Loan to My Son's Name?

Transferring an outstanding loan to another individual is not something most lenders are willing to do. There are, however, ways to pass on a loan to another person and no longer be legally responsible for payments.

The Facts

Any individual who plans to take over a loan must have an exemplary credit score for the lender to consider the transfer. It is not in the lender's best interests to hand over a loan to someone who may not make the payments.

Purchase

If your bank will not approve a loan transfer, an individual can take over your loan by obtaining financing in his own name for the outstanding amount on the loan.

Considerations

There is no guarantee that an individual purchasing your vehicle to take over your loan will qualify for the same interest rate that you currently have.

Options

You can allow another person to take over payments and leave the car in your own name, but you are responsible for the payments---whether the car is in your possession or not.

Warning

If you currently owe more on your car than it is worth, no bank will approve financing for another individual to buy the car at that price. A car can be financed at its fair market value and you will need to make up the difference to your lender.

Read More

Can I Sell My Car Before I Finish Paying Off the Loan?

You can sell your car before you finish paying off your loan. However, if you owe more than the vehicle's sales price, you must pay your lender for amount still due on the loan to release the vehicle's lien. If you can sell your vehicle for more than its loan balance, you may keep the profit.

Budgeting for the Sale

Check your vehicle's value at Edmunds.com and the Kelley Blue Book website to determine a fair selling price for your car or the car's private sale value. Call your lender for your loan's exact payoff amount including its per-diem, which is the amount of interest added to your loan balance daily. If your target selling price is more than your loan's payoff amount, you must have the rest of the money required to satisfy the loan. Before you advertise your car for sale, have your funds ready to satisfy the loan if needed.

Arranging for the Loan Payoff

Whether you owe excess money toward your loan balance or not, find out about your lender's payoff process before selling your car. This way, you can efficiently work a buyer to sell your vehicle. If your bank is not local, for example, you may find that it takes up to two weeks to obtain a lien release or title for your vehicle. If your bank is local, you may be able to obtain a lien release immediately and transfer ownership to your buyer the same day. Otherwise, your buyer will want to know when he can receive his purchase paperwork.

Working With a Buyer

You don't have to advertise that your vehicle still has a loan balance when trying to sell your car. Once you have an interested buyer, explain the payoff and title transfer process that your lender described to you. Some buyers may not want to wait several weeks to obtain a car's title. If your lender is local, bring the buyer with you to complete the loan payoff. This way, the buyer can receive the necessary lien release to transfer ownership. Include the buyer in the payoff process by allowing him to pay your lender directly.

Significance of a Lien Release

Some states allow title transfers while a lien exists on the title. When you pay off your auto loan, the lender will supply you with an original lien release printed on bank letterhead. It is also signed in ink by a bank representative. You must provide the buyer with the original copy to release the title's lien. In states that don't allow title transfers when a lien exists, the lien release is a requirement. Make a copy of the letter before you give your buyer the original.

Read More

Arkansas Car Title & Repo Laws

In any state, a lender has a right to repossess your collateral if the lender has a valid loan agreement you signed and a perfected security interest in the collateral. This is no exception in Arkansas, where a lender can repossess your car if they have a car title with their lien on it. While lienholders have the right to repossess a car as soon as the account is delinquent, it is usually at least 60 days delinquent before a leinholder will repossess a car because lenders are usually not able to obtain all the money you owe from the sale of your car. Check your loan agreement to determine the time frame that is considered delinquent with the lienholder before they will repossess your car.

Right to Cure

In Arkansas, a lienholder does not have to notify you that you car loan is delinquent by mailing you a right to cure letter. A right to cure letter is required in some states to give you a grace period to catch up your car loan without the worry that your car will be repossessed. Since Arkansas does not require a right to cure, you have no notice that the lienholder is considering repossession of your car. A lienholder can automatically repossess your vehicle if you have violated your loan agreement by not paying your car loan as agreed.

Ten Day Letter

The lender must allow the borrower 10 days to pay the amount the borrower owes plus repossession costs or make satisfactory payment arrangements with the lender. If the borrower does so, he can take possession of his car again. If not, the lender has the right to sell the car after the ten days. The lender may take private bids on the car or sell it at auction.

Requirements to Sell a Repossessed Car

To sale a repossessed car in Arkansas, the lienholder must provide the buyer of the car with a certified copy of the contract that defaulted, title with the lienholder's lien, repossession affadavit and a title application in the lienholder's name. The lienholder's lien must have been recorded with the Department of Motor Vehicles, which will search to ensure the lien was recorded. The DMV search is $1, which must be paid at the time the new title is recorded.

Read More

How to Sell a Vehicle Before It Is Paid Off

You must pay off your car loan in full before you can sell your car to another person. If you can sell your vehicle for more than your loan payoff amount, you can keep the profit. If you sell the vehicle for less than you owe, expect to provide the remaining balance to your lender before you can transfer ownership. Lenders may differ slightly on the payoff process, so be sure to inquire about your lender's rules and process before selling your car.

Instructions

1

Contact your auto loan provider to obtain your loan payoff amount. Ask for a 10- or 15-day payoff quote that includes the interest added to your loan daily, known as the per-diem.

2

Ask a lending representative about the payoff process. Find out if you can complete the loan payoff and obtain your title or lien release immediately or if you have to wait for the lender to process the paperwork. If the lender will mail your lien release or title after receiving funds, ask for an accurate timeframe so you can better communicate with your buyer.

3

Advertise your vehicle for sale and meet with prospective buyers until you sell your car. You don't have to advertise that the vehicle still has a loan, but once you meet with buyers, explain the payoff process and how long it takes to provide appropriate paperwork to transfer ownership.

4

Pay your lender. If you sold your car for less than your loan's payoff amount, pay the excess balance at the same time as your buyer. Bring your buyer to your lender to complete the payment and obtain paperwork if the lender is local.

5

Provide your buyer with a properly signed title and lien release, depending on your state. Check your state's motor vehicle rules if you're unclear on the title transfer process. Some states require lien holders to sign the title and others require an original lien release to supplement a signed vehicle title.

6

Remove your license plates from the vehicle before the buyer takes your car. Cancel your car insurance policy immediately.

Read More

California Laws for Leasing a Motor Vehicle

Each state can pass vehicle consumer protection laws to help consumers guard against deceptive and unfair commercial practices. In addition to the Federal Trade Commission's consumer protection laws, a state's consumer protection agencies and attorney general serve this purpose. In California, the state attorney general and the Department of Motor Vehicles regulates the state's vehicle lease transactions.

Moscone Vehicle Leasing Act

Section 2987 of the California Civil Code is the Moscone Vehicle Leasing Act. The act governs transactions between vehicle lessors and lessees. Under the California Code, vehicle lessees have a legal right to terminate their vehicle lease agreements before the scheduled date of expiration. However, lessees can charge them reasonable fees for early termination of their vehicle leases.

Limited Liability

For early termination, a vehicle lessor cannot charge a lessee more than the amount of lease payments paid before termination plus any wear and tear damages, reconditioning fees and disposition fees. The lessor's legal right to assess early termination charges must be set forth in its lease agreement and itemize the allowable fees. Vehicle lessors are legally obligated to act in a commercially reasonable manner and in good faith. Additionally, leases in California allowing lessees the option to purchase at a later date are subject to different rules, but require lessors to act in a commercially reasonable manner.

Lemon Law

In addition to the Moscone Vehicle Leasing Act governing the financial implications of vehicle leases, the California Song-Beverly Consumer Warranty Act covers the commercial condition of leased vehicles. Under the California Song-Beverly Consumer Warranty Act, also known as the California Lemon Law, vehicle buyers and lessees have legal rights against lessors or automotive dealers who sell them defective cars. Both lessees and vehicle owners have a right to receive a replacement vehicle or refund if their cars are defective "lemons." To pursue lemon law recourse, a consumer must have leased or purchased a new car from a licensed California dealership or leasing company. Furthermore, she must provide the leasing company or dealership a reasonable number of attempts to fix the defect.

Leases and Lemon Law

A consumer who leases a lemon from a leasing company or dealership has the right to demand a refund and terminate her lease without penalty. A consumer may also demand a replacement vehicle, at his sole option. Regardless of the option a consumer chooses, the seller or lessor is responsible for paying incidental towing charges, finance charges, rental car fees and taxes. However, California law allows lessors to charge lessees a reasonable use fee limited to a fraction of the lease or purchase price.

Considerations

Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.

Read More

Are There Problems With Buying a Car in Another State Than Which You Live?

Whether you are buying a new or used automobile, occasionally that perfect car or deal is located in another state. You can usually buy it out-of-state and bring it home, however there are several factors to consider. The steps you must take will differ depending on your state, whether you are buying from a dealership or private party and whether you are financing or paying cash. You can have your bases covered, however, by considering a few things.

Financing

If you've found your perfect ride, chances are that you already have a plan to pay for it. If you are getting a loan through a financial institution, talk with your loan officer about their ability to handle an out-of-state transaction. Most banks and credit unions will be able to meet your needs, but may want certain documentation up-front before they will issue a check or wire funds to the seller or dealer. At a minimum, they will likely ask for a copy of the title to ensure that it's in the seller's name and is not salvaged. They may want to some additional guarantee, such as a signed purchase order or bill of sale including verbiage regarding the seller's obligation to release the title upon acceptance of payment.

Titling

Each state has different titling paperwork, such as a bill or sale and odometer disclosure forms. Your financial institution typically will educate you on the required documentation and may even submit it on your behalf. If you are purchasing your vehicle with cash, contact your state's department of licensing to find out what documentation is required. If you are planning a trip to complete the transaction and pick up the vehicle, be sure to bring the paperwork with you as some states require original signatures on title paperwork.

Taxes and Fees

Some states charge sales and other taxes and fees on vehicles, while others do not. If you are purchasing out-of-state through a dealership, you may be able to pay your taxes and fees up-front at the time of purchase. More than likely, however, you will need to pay at the time of titling by making a check out directly to your department of licensing. Be sure to clarify this in advance of the purchase, especially if you are getting a loan. Many financial institutions will allow you to include taxes and fees in the cost of the loan, but this usually needs to be coordinated before the transaction is complete. Depending on the state and the type of car, these amounts can be quite high.

Emissions and Inspections

Consider the condition and year of the vehicle before purchasing. Some states such as California and Oregon have strict smog and emission requirements that a vehicle must pass in order to be titled. Other states, like Texas, require an overall inspection of the vehicle before proper documentation will be issued. Newer cars that have been well-maintained are the safest bet.

Read More

What Are the Pros & Cons of Refinancing a Car Loan?

Refinancing your auto loan is essentially paying off your current auto loan and taking out a new loan. It might make sense for you to do this, but you should learn all the pros and cons first.

Considerations

If interest rates are down from when you purchased your car or if your credit score is better, you might want to refinance to get a better interest rate. You could save hundreds or thousands of dollars in interest charges, depending on how much lower your interest rate is, according to the Cars Direct website.

Benefits

If you owe less than what the car is worth, you could get cash back when you refinance. The lender loans you money for what the car is worth. You can pay the amount you owe, keep the leftover cash and begin making your new monthly payments.

Warning

The downside of refinancing is that because you are essentially beginning a new loan, you are paying mostly interest again and little principal. In some cases, by starting a loan again, you might put yourself in a negative equity position, whereby you owe more on the car than what it is worth. You can opt to refinance for a short term to avoid this from happening.

Read More

Can I Buy My Car Before the Lease Is Up?

You've fallen in love with the car you're leasing and want to buy it. Most lease contracts allow you to buy the car at the end of the lease or through an early buy-out. Before buying the car, consider its residual value. This is how much the car is worth to the lease company and most likely the amount you will pay to own the car.

Residual Value

When you enter into a lease, the lender estimates the car's worth at the end of the lease term. This amount is the residual value of the car or the unused portion of the car's value. A high residual value means lower monthly payments. Conversely, a low residual value equates to higher payments. The residual value is negotiable depending on the lease company's policies.

Early Buyout

You have the option of buying the car at the end of the lease or through an early buyout before the lease ends. Check your lease contract. Some lease policies have restrictions on early buyouts. Assuming no early buyout restriction, you pay the residual value of the car either with cash or financing. If you finance, the lender simply cuts a check to the leasing company and you make monthly payments under the loan agreement.

Considerations

The best case scenario is if the car's residual value equals its market price. A high residual value relative to its fair market price means you pay more for the car than what it's currently worth. The market price of the car is based on how much the car is worth if you bought it from an individual or dealer. Another way to look at residual value is how much the car is worth wholesale or its trade-in value. The wholesale price is the car's worth to the lease company when you return it.

Negotiation

In many cases, you can negotiate the residual value of a car lease, but it's probably best to do this up front. The residual value is pretty much set in stone once you sign the lease agreement. When negotiating residual value, come prepared. Do your research by finding out the fair market price for the vehicle and its value as it depreciates over time. Start by visiting dealerships. Secondly, conduct an online search. Get to know the car's retail and wholesale price. The lease company is more likely to accept your offer if you make an argument based on well-researched fair market prices.

Read More

Closed End Car Leases Vs. Open End

The difference between a closed-end car lease and an open-end car lease comes down to who bears ultimate financial responsibility for the decline in value of the leased automobile. In a closed-end lease, the responsibility remains with the dealer. In an open-end lease, the person who leases the vehicle assumes the responsibility.

Function

In a typical auto lease, you sign a lease agreement and drive away in a new car. You drive the car for the length of the lease term, paying a monthly fee for the privilege of doing so. That fee is based in part on how much the car can be expected to depreciate -- that is, how much of its value will be lost -- during the lease. After all, a 3-year-old car is worth substantially less than a brand-new one, no matter how well it has been cared for. The expected value at the end of the lease is called the "residual value," and it's determined at the inception of the lease. The lower the residual value relative to the original price of the car, the higher your monthly payments will be. At the end of the lease, you have the option of buying the car for the residual value or returning it to the dealer.

Significance

When the lease ends, there's a chance that the car's actual market value will be less than the expected residual value. This could be because you drove it more than you expected it to, or just because there's no demand for 3-year-old versions of that particular model. Regardless, someone is going to have to "eat" the cost difference between the actual value and the residual value.

Types

In a closed-end lease, if you don't want to buy the car, you simply drop it off. The dealer -- actually, the leasing company that handles the transaction on behalf of the dealer -- has to absorb the difference between actual and residual value. That's why closed-end leases are commonly called "walk-away leases." Lease agreements generally have mileage limits, so you may have to pay a fee for each mile you went over, and you'll also have to pay for any damage. But you're not responsible for the difference if the car ends up worth less than the residual value.

In an open-end lease, the risk lies with you. If the car's market value is worth less than the pre-determined residual value at the end of the lease, then you must pay the leasing company the difference.

Benefits

Closed-end leases make the most sense for consumers. Not only do they gain protection from having to pay for low market value, most consumers also have relatively predictable driving patterns that allow them to stay under the mileage limits, meaning their out-of-pocket costs at lease end are minimal. Open-end leases make sense mostly for commercial businesses. Not only are their driving needs more variable, but any extra costs can be written off as a business expense.

Consideration

According to the Federal Reserve Board, the "three-payment rule" may limit the amount of money you have to pay at the end of an open-end lease. Under this rule, the car's pre-determined residual value is assumed to be "unreasonable" if it exceeds the market value by more than three times the amount of the monthly payment. So if your monthly payment is $450, the leasing company cannot require you to pay more than $1,350 for a deficiency between market value and residual value, unless it can demonstrate in court that the residual value was in fact reasonable.

Read More

What Is an Average Car Loan?

The amount of the average car loan in the United States is affected by where borrowers live. The interest rates on loans and the down payments required for vehicle purchases also are impacted by consumers' credit scores. The overall cost of the average auto loan can vary significantly among banks and credit unions as well.

National Average

A quarterly analysis of trends in the auto industry by the TransUnion credit-reporting company shows the size of the average U.S. auto loan rose to $12,602 in the fourth quarter of 2010. According to TransUnion, that's $102 more than the average auto loan the company documented in the third quarter of the same year. TransUnion pulled the data for its analysis from 27 million consumer credit files the company says were chosen randomly.

State Averages

The TransUnion analysis indicates the largest auto loans are in Washington, D.C., where consumers borrow an average of $15,693. The second-largest amount borrowed is in Wyoming, where residents seek an average loan amount of $14,217. Nebraskans borrow the smallest amount to finance their vehicles at $10,998. TransUnion also found that auto-loan delinquency rates increased in 32 states since the third quarter of 2010. The company's delinquency data are based on the ratio of borrowers who are at least 60 days behind in making their car payments.

Subprime Borrowers

People lenders consider to be subprime borrowers usually need to come up with larger down payments to buy cars no matter what amount they're seeking to borrow. A 2011 article on the Edmunds auto-information website reports that subprime borrowers have low credit scores of 619 or lower, and will likely need at least a 20 percent down payment to buy a vehicle. Therefore, subprime borrowers may need about $2,520 for a down payment based on TransUnion's national average for auto loans.

Prime Borrowers

Borrowers with high credit scores can qualify for lenders' teaser rates on auto loans, which are the lowest interest rates that lenders usually advertise to attract customers with excellent credit histories. Edmunds reports that those low rates are given to people classified as prime borrowers who have at least a 680 credit score. Low interest rates may allow prime borrowers to take on auto loans that exceed the national average because low rates result in lower monthly payments. According to Edmunds, people with high credit scores on average received interest rates as low as 4.08 percent at some credit unions in December 2010. The lowest average rate was higher at banks, at 4.28 percent.

Read More

How to Depreciate a Used Vehicle

A vehicle loses 15 percent to 20 percent of its value every year. If you plan to drive a car until it no longer works, this doesn't pose a problem. If you plan to sell or trade the car sometime in the future, you need to calculate depreciation. Depreciation is the amount an asset decreases in value each year. For vehicles, depreciation begins the moment you take ownership and lasts until the end of the car's useful life.

Instructions

1

Determine the useful life of the car, which is five years for a business vehicle and eight years for a personal vehicle.

2

Divide the purchase price of the vehicle -- minus sales tax, delivery fees and discounts -- by the useful life. A $17,000 vehicle with a useful life of eight years depreciates by $2,125 every year.

3

Multiply the depreciation by number of years you've used the car. If you've had the car for three years, the car has depreciated $6,375, resulting in a current value of $10,625.

4

Subtract the depreciation from the current value each year until you reach the end of the vehicle's useful life.

Read More

Car Financing Tricks

Buying a car can be a stressful experience, especially when you do not know if you are getting a good deal. While dealerships will employ a variety financing measures to put you in the car of your dreams, it is important to remember that they are in the sales business and working to turn a profit. It is helpful to know what to expect at the dealership to ensure you walk away feeling good about your purchase.

Credit

Always check your credit score before heading to the dealership. Auto loans are based on credit scores, and knowing yours in advance can help you avoid surprises. While dealers will run your credit, it is rare that they will let you see the report, and unscrupulous dealers may lead you to believe that your score is lower than it actually is. When you know what they know, you can use the information as leverage. Research average interest rates for your credit score bracket so you know what to expect and can rebut rate propositions that are higher than the average. If you have poor credit, you may want to look into outside financing options that are intended to help buyers build or rebuild credit instead of financing through the dealer. Prequalifying for a loan with your banking institution can also eliminate the need to negotiate financing with the dealer.

Price

The price of a vehicle and the sum of your payments are two very different numbers. While the total payment price will be higher due to interest, be wary of dealers who steer your attention toward the monthly price instead of the big picture. Low monthly payments often correspond with large down payments or extended loan terms, both of which may not match your financial situation. Know the total price that you want to pay for a vehicle and stick to it. Read the fine print of your financing agreement; additional fees and charges are sometimes buried in the pages. Be sure that the contract matches the payment plan and agreed-upon retail price before you sign.

Extras

Once you are done negotiating with the salesman, it becomes time to negotiate with the financing office. Your interest rate and price may be agreed on before entering the credit manager's office, but additions such as GAP insurance, warranties, clear coating or credit life insurance are often pushed by the credit department instead of the sales team. These add-ons are not legally required, and if you choose to participate, it is not necessary to purchase any of these options from the dealership. You might be able to find less expensive optional coverage from outside lenders. If the dealership pressures or suggests that interest rates must increase if you decline these coverages, be prepared to walk away.

Read More

Indirect Lending for Credit Unions

Credit union members are often fiercely loyal and prefer to do as much business as possible through these nonprofit financial institutions. This can be inconvenient at times, however, as credit unions are typically much smaller than rival for-profit banks. This may mean that credit unions have limited resources or less flexible hours, especially on weekends. Many credit unions participate in indirect lending in order to serve their members conveniently at a single stop, even outside of normal business hours.

What is Indirect Lending?

The most popular form of indirect lending involves a relationship between a credit union and a merchant. The credit union agrees to allow the merchant to originate loans at the merchant's place of business. The most common arrangement involves credit unions partnering with local car dealerships to offer loans from the dealer's lot. Because of this relationship, members can drop by a dealership on a Saturday or Sunday and typically have a loan approved on the same day.

Benefits

Aside from the obvious advantage of member convenience, the credit union also benefits by increasing and diversifying its membership base. While current members often make use of such services, new members can learn about the credit union through the dealership. New members must qualify for membership in order to participate in indirect lending. Most credit unions have either open membership for an entire community or are exclusive based on employment with certain employers or other group memberships.

Who Pays?

Just as the members and the credit union benefit, the question turns to how the dealership benefits. Dealers may receive new or repeat customers based on the fact that they partner with specific local credit unions. In addition, dealers often receive a small commission that is paid by the credit union. There are some organizations that also coordinate the relationship between dealers and credit unions.

Risks

While there may be minimal risks for credit union members using indirect lending, the National Credit Union Administration has identified some potential hazards for credit unions themselves. The NCUA warns that if an indirect lending program becomes popular too quickly and proper controls are not in place, it could increase the risk of the organization's loan portfolio. Potential warning signs of such issues can include delinquencies and inadequate loan documentation.

Read More

Can You Privately Sell a Vehicle You Owe On?

Privately selling a car you're still making loan payments on without your lender's involvement is difficult to impossible. This is because you don't technically own your vehicle until you make that last loan payment and can treat the vehicle as your sole property. Involving your lender in the sale can help limit your liability on your existing loan and make transferring the car's title to the new owner much easier.

Lender Approval Requirements

Selling a vehicle with an existing loan requires the lender holding the title to approve the new buyer to assume the outstanding amount on the loan. You can't simply elect to transfer the vehicle's loan on your own because the lender has the legal right to a creditworthy debtor to make payments on the auto loan. The potential buyer must submit credit information -- including Social Security number, current employment status and proof of income -- to the lender. If the lender approves of the new debtor, the lender will transfer the remaining balance of the loan.

Lender Cash Sale

If the prospective buyer has sufficient cash to cover the remaining loan balance, you may choose to involve your lender in finalizing the business transaction. According to Cars.com, the transaction may take place at the lender's place of business with the new owner paying the lender the full amount outstanding on the auto loan. Once the payment finalizes, the lender will release the title to the new owner provided the new owner can show proof of proper auto insurance, valid driver's license and vehicle registration.

Vehicle Trade-In

Trading in a vehicle you still owe money on isn't a completely private sale since you're involving an auto dealership in the transaction. The dealership pays off the amount you owe on your existing loan and adds that amount to any new loan you take out to purchase your new vehicle. If the appraisal amount on your trade-in vehicle exceeds your previous remaining loan balance, the dealership applies this remaining balance to your new loan. This helps lower the cost of rolling your old auto loan into the loan for your new car.

Selling Without Permission

Selling your vehicle with an existing lien without your lender's permission is technically illegal since you don't hold the title to the car and therefore do not own it. Additionally, a prospective buyer will probably be hesitant to simply give you cash for your car in the hope that once you use the money to pay off the loan, you'll transfer the title in good faith. Always consult your lender to obtain permission to sell the vehicle. This way you can make sure to involve your lender in the selling process and ensure you receive enough money to pay off your auto loan without being responsible for an outstanding balance.

Read More