Selling a Vehicle With a Child Support Lien on the Title

If a debt is unpaid, such as a credit card debt or past-due child support, the creditor has a right to enforce that debt. Enforcing a debt can mean garnishment, repossession or even filing a lien against property. In order to enforce a debt, the creditor must file legal paperwork against the debtor and obtain a judgment from a judge.

Creditor Liens

Once a creditor obtains a judgment for a debt, that creditor can obtain a right to enforce the debt against the person who owes it. Child support debt is particularly enforced. A creditor has the right to repossess a vehicle in order to sell it to get money. But if the vehicle already has other liens on it, such as a car loan, it may not make sense to repossess the vehicle, and the creditor may elect to file a creditor lien against the property.

Recording Liens

When a creditor has a lien on property, it becomes a "secured" creditor, meaning the debt is secured by collateral; in this case, a vehicle. In order to have a valid lien, a creditor must file or record that lien with the state's department of motor vehicles. The state will then put a note on the title to the vehicle that the vehicle cannot be sold unless all liens are paid off.

Paying off Liens

When selling a vehicle, all recorded liens on the vehicle must be paid off before the vehicle can be sold. If the vehicle is sold for less than the liens, the amount remaining on the liens must be paid out of pocket to satisfy the liens. If liens are not paid off, such as a creditor lien, the creditor can elect to repossess the vehicle to sell at auction.

Selling a Vehicle with Liens

In order to sell a vehicle with liens, the seller must show that he owns the vehicle in "clear title." This means that there are no debts secured to that vehicle that will be taken over by the next buyer. Once a lien is secured to a vehicle, the only way to remove the lien is to pay off the debt. A vehicle with an unclear title cannot be sold until the debt is paid off.

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What If I Can Not Pay My Car Loan?

When buying a car, you may have trouble paying for your car payment at some point throughout the process. If you cannot afford to make your car payment, you must deal with the consequences that come with this situation. Eventually, you may end up losing your car and damaging your credit.

Collection

Once you are late on your car payment, your auto lender will typically start trying to contact you immediately. This could happen as soon as one day late or it could happen a few weeks after missing your first payment. You should start receiving phone calls from the lender and you may also receive some letters in the mail. It is usually in your best interest to talk to the caller to let them know that you are having some financial trouble, but you hope to make the payment as soon as possible.

Repossession

After a certain length of time of missed payments, your lender will typically try to repossess the car. This involves hiring a repossession agent to come and take the car from you when you are not around. You may walk outside your house and find that your car is gone. This can make your situation very difficult because you may not be able to get to and from work to pay your other bills. If you can work out a payment arrangement before this point, it is to your advantage.

Damaging Your Credit History

Besides losing your car, this process can also significantly damage your credit. When you start to miss payments or make late payments, the lender will start to inform the credit bureaus. When you default on the loan and have your car repossessed, this will be reported as well. The damage that this causes to your credit history can make it difficult to obtain any other kind of financing in the future. Your score will be lowered, but with some careful planning, you can build it back up again.

Avoiding Problems

In this situation, you have a few different options to consider if you want to avoid problems. For instance, you might try to refinance your auto loan with another lender. This would allow you to pay off your loan that is late and start a new payment schedule. Your current lender might offer you a repayment plan or a loan extension. If the lender extends the term of the loan, it can help you get a more affordable car payment.

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How to Determine the Payoff for a Vehicle Lease

You can pay off a leased vehicle at any time. Some people believe there is no way out of a lease until the term is up, but you can actually buy the vehicle from the bank for an amount that is usually equal to any payments due and the balloon payment stated on your contract. You can then finance the remaining amount or trade the vehicle into a dealership towards another purchase. Getting your leased vehicle payoff amount should take you less than 10 minutes.

Instructions

1

Gather your lease payment paperwork. You need the phone number of the bank through which you lease the car and your account number. Check your vehicle's exact mileage, as it will be requested.

2

Call your leasing institution. Follow the voice prompts to reach the customer service department.

3

Tell the bank representative that you want your lease payoff amount. If you want to buy the car or trade it in, ask for the "buyout" amount, and if you want to end your lease early, ask for the "early termination" amount.

4

Give the representative your personal identifying information, including your account number, Social Security number and date of birth, which are usually requested.

5

Write down the amount that the representative gives you and the date until which it is valid. The amount should be good until your next payment is due.

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Can You Remove a Co-signer's Name From a Car Loan?

When you take out a car loan, the lender approves the loan based upon the creditworthiness of both the applicant and the co-signer. The loan contract amounts to an agreement between both you and the co-signer to pay back the car loan proceeds. Generally, you cannot remove a co-signer from a loan unless you actually pay off the loan and replace it with a new loan that does not involve a co-signer.

Underwriting

People with poor credit or limited income often have to involve a co-signer in a car loan application in order to gain approval. If you have good credit but insufficient verifiable income to make the monthly payments, the lender cannot approve your application unless you include a co-signer who has sufficient income to pay the debt. Loans are based upon your ability to qualify for the loan at inception, and the lender does not check whether your income or credit improves or deteriorates after the loan takes effect. Therefore, you cannot remove a co-signer from the loan simply because your income increased and you wish to make payments yourself.

Refinancing

You can refinance a car loan to remove a co-signer if your have sufficient equity in the vehicle to qualify for a refinance. Lenders classify cars as depreciating collateral because cars lose value with age and eventually become obsolete. Very often, the value of a car decreases more quickly than the balance on a car loan. Generally, you can only refinance a car loan if the loan amount does not exceed the car's value. If you owe more than the car costs at the time you plan to refinance, you must pay cash to settle the difference; otherwise, you cannot refinance.

Ownership

Some lenders do not allow co-signers without an ownership stake to sign on loans secured by a piece of collateral such as a car. Consequently, many people who use car loans to purchase vehicles have to add the co-signer not just to the loan but also to the title of the vehicle. When this occurs, in order to refinance the loan into your own name, you must first transfer the title from joint ownership to sole ownership, and you cannot do that until you payoff the existing lien.

Considerations

Most people want to remove co-signers from car loans after they have established credit. However, credit scores involve many different factors and having a good enough score to qualify for a loan by yourself and having a credit score good enough to qualify for a loan with a low rate are two different things. If you used a co-signer who had a very high credit score on a loan, the rate on the loan reflected the co-signer's score. If you refinance the loan and have a good but much lower credit score, you may end up with a significantly higher rate.

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Can I Pre-Qualify for an Auto Loan?

If you can pre-qualify for an auto loan before you walk into the dealership, you will be in a better position to negotiate a deal. When you have money in hand, you can usually get a better deal, according to the website CarsDirect.

Significance

Even if you want to get financing through the dealer, you should try to get pre-approved for a car loan through your bank or credit union, recommends Jesse Toprak of Edmunds.com. You can negotiate knowing that you always can go with the bank or credit union if the dealer can't beat your pre-approved loan.

Strategy

You can get an idea if you can pre-qualify for a car loan by looking at your credit report. You can get a free copy of your credit report from each of the three major credit-reporting agencies -- TransUnion, Experian and Equifax -- once every 12 months. Request this through AnnualCreditReport.com. If your score is higher than 720, you likely will qualify, according to CarsDirect.

Considerations

Don't just look at the number on your credit report. Read the information. Many times credit reports contain inaccurate information. If you find any errors on your credit report that makes your score appear lower than it should be, contact the credit bureau in writing, explaining what the error is and requesting that the credit bureau remove it.

Potential

Another way to determine if you can pre-qualify for an auto loan is to use a loan pre-qualification calculator, such as the one on the Bankrate.com website. If you qualify based on the loan calculator, you are not guaranteed a loan, but you can get an idea how good your chances are. Enter information such as your total income after taxes, your total monthly debt, your credit card limit and how many dependents you have.

Types

Besides trying to pre-qualify for an auto loan through your bank or credit union, try using an online lender. Some of these organizations used to loan through car dealers but have since pulled out and started lending directly to consumers. Find online lenders on your own or go to a site such as Edmunds.com to apply with one of its partners.

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How to Cancel a Car Loan After the Papers Are Signed & the Bank Approved the Loan

Unfortunately, a "cooling off" period does not apply to a vehicle purchase, according to the Federal Trade Commission. You may only return your vehicle to a dealership if the dealer offers a vehicle buyback program or a grace period that allows you to return a vehicle after purchase. However, if you haven't taken the vehicle, even if you've signed purchase paperwork, you can cancel your car purchase. If you have already taken possession of the car, you must return it before the dealer processes your paperwork, which is usually within one or two days.

Instructions

Before Taking the Vehicle

1

Contact your dealership immediately by phone. A dealer will not process your signed paperwork until you take ownership of the vehicle or drive it off the lot. Ask to speak to the finance or sales manager.

2

Explain to the manager that you are unable to purchase the vehicle and why. Your dealer may tell you that you cannot cancel the purchase, in hopes that you'll still pick up the vehicle, but this isn't so. Be firm about your decision not to purchase and tell the manager that you aren't going to take possession of the car.

3

Call your state's motor vehicle department to find out where to complain about the dealership if a manager claims that you can't cancel your purchase or refuses to return your deposit or down payment. Before doing so, let the dealer know that you plan to file a complaint with the proper state department, and it will likely return your money.

After Taking the Vehicle

4

Call the dealership immediately following your vehicle purchase. You may return your vehicle the same or the next day of purchase. The dealer will not immediately process your loan or motor vehicle paperwork, as the paperwork must be delivered or mailed to the proper establishments.

5

Speak directly to the sales manager. Salespeople or other dealer personnel do not have the authority to cancel your vehicle purchase. Tell the manager you are bringing your vehicle back and do not want to purchase it.

6

Return the vehicle to the dealership promptly, even if the dealer tells you otherwise. Bring all vehicle items with you, such as extra keys and Owner's Manual.

7

Park the vehicle in front of the dealership. Return vehicle items to an employee inside of the dealership. Leave the vehicle and depart with a pre-arranged ride.

8

Keep your purchase paperwork and wait to see if the dealer contacts you. If you returned the vehicle promptly, the dealer will not process your purchase paperwork in hopes of avoiding a complaint, a problem with its lender or reputation issues. If the dealer or lender contacts you to pick up the vehicle, you must do so, as your paperwork has likely already been processed.

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What Is Blue Book Value?

If you're in the market for a car, whether it's new or used, you'll do yourself a lot of good by first determining how much your car is worth before you buy it. Sellers can also learn a lot by consulting sources like the Blue Book and other publications that track car values and routinely publish and update them.

Kelley Blue Book

It didn't take long after the first mass-produced cars started appearing for the used car market to come into existence. Determining a price for a used car was sometimes difficult to determine. Since 1926, the Kelley Blue Book, commonly just called the "Blue Book," has been available to car consumers. This guide lists the estimated value of nearly any used car. The so-called "Blue Book" value of a car arose because the company published the guide with a blue cover. Today you can find Blue Book values both in printed form and online.

Factors

If you want to find out the Blue Book value of a car, you can go to the Kelley Blue Book website or find the newest version of the published guide at your local bookstore or library. To find the car's value, you have to know certain information, such as the car's make, model, year and mileage. For example, according to the Kelly Blue Book website, a 2009 Audi A3 2.0T Quattro Wagon with 25,000 miles and standard options and in excellent condition has a trade-in value of $23,175, as of April 7, 2011.

Uses

Knowing the Blue Book value of a car can be invaluable to anyone interested in buying or selling a car. Whether you're trading in a car to a dealer and want to ensure you get a fair price or if you want to know what price you should list your car at if you sell it privately, using an objective measurement like the Blue Book gives both the buyer and the seller common ground for beginning negotiation.

Other Valuation Methods

Auto buyers and sellers don't have to rely on the values determined by the Blue Book. Other evaluation methods are readily available and can also help you determine what the fair market value of a car is. The NADA guide, created by the National Automobile Dealers Association, has been around since 1993 and provides similar information. The NADA values are available online and in published book format.

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What Is Tier 1 Credit in Auto Financing?

When an individual purchases a new car, most often he needs an auto loan to pay for the vehicle. The purchase price and interest rate determine the amount of the monthly payment.

Interest Rate

A borrower's credit score determines the interest rate. The tier a borrower falls into is based on a credit score provided by the Fair Isaac Corp. A FICO score ranges from 300 to 850, and the higher it is, the better the interest rate a borrower will receive on the loan.

Tier One

A tier one credit score allows a borrower to receive the best rate when purchasing a car. According to Edmunds.com, a tier one borrower would have a FICO credit score of 720 or higher.

Tips

A borrower should compare the interest rates available through lenders such as auto dealerships, banks and credit unions. Before applying for a loan, a car buyer should check her credit score to know what tier she falls into and to be sure she is receiving the best rate available.

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What Is an Assumed Lease?

A lease assumption allows a consumer to take over a lease from another lessee who is no longer able to satisfy the conditions of a contract. Assumed leases are common for rental properties and vehicle contracts. Lease assumption brings several advantages to a consumer, such as money savings and a shorter leasing contract.

Low Upfront Costs

A lease usually requires upfront costs, such as a down payment for a vehicle or a security deposit for a property, that may be as much as several thousand dollars. When a consumer assumes a lease, the original lessee has already paid all the required fees and deposits. A new lessee saves this money, as many of the fees are assessed with the initial lease contract and do not apply, when another individual takes over a lease.

Incentives

Lessees may offer incentives to consumers who take over their leases. They may offer a cash payment upon a successful completion of a lease transfer. Such incentives are common for car lease transfers. When transferring a property lease, a new lessee may get to keep a security deposit as long as he follows the contract obligations and leaves the property in a proper condition at the end of the lease term. If a property lease is paid ahead, a new lessee may occupy the property for free in exchange for maintaining the property and paying the utilities.

Advantages

Along with financial incentives, a consumer has other advantages of assuming a lease. Consumers may lease a vehicle to see if they like it before purchasing it. A new lessee gets to enjoy a newer vehicle and a lower monthly payment, as leases usually offer lower payments than loans. He also may have an option to buy the vehicle at the end of the lease term. A consumer may take over a short-term property lease to see if he likes the property and the area or if he needs a temporary housing arrangements.

Considerations

Lease assumptions may become costly for a new lessee if he does not follow the lease contract. Vehicle leases often have mileage limits and other restrictions. A consumer may have to pay substantial end-of-lease charges if he does not follow the conditions of the lease contract. A property landlord may charge penalties if a lessee does not follow the conditions of a lease contract. A new lessee should read the contract carefully and try to negotiate more favorable terms before signing it.

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How to Stop an Auto Repo

If you have fallen behind on your car payments the creditor may repossess the vehicle. Many creditors repossess the vehicle after as little as one late payment. The creditor may repossess the vehicle from the home or the registered owner's place of business. Although the creditor may repossess the vehicle, you still have rights as a consumer. It is best to research the repossession laws in your state to ensure that the creditor is following them. If you fear that your vehicle will be repossessed, it is best that you act immediately and contact the creditor and negotiate a payment.

Instructions

1

Contact the bank that financed the vehicle. Consult with a finance specialist regarding refinancing the vehicle's loan. Inquire about other options, such as, doubling payments or adding extra money to the current payment to help you catch up the deficiency.

2

Place the vehicle for sale. Locate a buyer who may be willing to buy the vehicle or take on the payments. Place an advertisement in a local newspaper or online auction to ensure that the ad will gain a lot of exposure. Consider offering an incentive to help sell the vehicle quickly, such as no money down and the buyer can simply assume your monthly payments.

3

Consult with an attorney. Inquire about filing bankruptcy. Review a plan with the bankruptcy court that will prevent the repossession and allow a feasible repayment plan. Ensure that all negotiations and repayment plans are properly documented to ensure your protection.

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How Long After Repossession Does a Creditor Have for Resale?

If you default on a car loan, the bank or other financial lender has the right to repossess the vehicle. In other words, a creditor has the right take back possession of the vehicle and sell it to satisfy all or a portion of the debt. After repossession, a creditor has 90 to 180 days to resell or auction the car. The exact time limit varies by state.

Compulsory Sale

If a debtor has paid 60 percent or more of the cash price of the car at the time of repossession, the car must be sold at auction. This is known as a compulsory sale. Although how soon a creditor has to sell the car at auction varies by state, most states require the compulsory sale occur within 90 to 180 days of repossession.

Right to Redeem Repossessed Vehicle

Once a car has been repossessed, a debtor has a set limit of time where he has the right to redeem the vehicle before the creditor can sell it at auction. Although the amount of time the debtor has to redeem the car varies by state, generally a debtor has a minimum of 10 days. However, a debtor continues to have the right to redeem up until the car is put up for auction or otherwise disposed of.

Redemption

To redeem the repossessed vehicle and prevent resale, auction or disposal of the vehicle, the debtor must become current on the loan and pay all reasonable costs associated with repossessing the vehicle including reasonable attorneys fees, if any.

Creditor's Right to Repossession

Secured creditorshave the right to repossess that vehicle when the debtor defaults on his loan, unless other arrangements are specified in the sale or loan contract. A secured creditor is a creditor whose name appears on the title for the vehicle. Essentially, a secured creditor for a car is what a bank or mortgage lender is with respect to a house and the creditors right to foreclose for nonpayment.

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Car Refinance Information

Refinancing an auto loan is often overlooked as a way to reduce monthly bills. Since a car is usually a consumer's second-largest purchase next to his home, refinancing to a lower interest rate can result in substantial savings over time. To obtain the best rate available, it is best to get quotes from several different lenders.

Need

Auto refinancing should be considered by anyone who has a high interest rate, especially in the 21 percent to 25 percent annual percentage rate (APR) range. It is also important for those who have low credit scores to attempt to refinance, which can often be accomplished despite the belief that there are no lenders that will accommodate them.

Doing the Homework

It is quite possible that your credit has improved since you took out the original car loan, or that the lender did not offer the best interest rate for which you were qualified. It is important to obtain a current credit report and clear up any inaccuracies that may appear. For access to credit information, see Resources.

Preparation

To be considered for refinancing, you will need to have a principle of at least $7,500 in order for the loan to be cost-effective for the lender. You will need to provide the new lender with accurate, up-to-date information about your current loan, and about your vehicle, such as mileage and vehicle-identification number.

Process

Refinancing an auto works much the same as refinancing a home. Consumers seek out lenders who offer interest rates lower than their current loan, then complete an application process. Once the loan is approved, the new lender will pay off the existing loan and set up the borrower with a new payment schedule.

Example

By refinancing a $16,500 car loan borrowed at a 21 percent interest over a period of five years, the payment can be reduced by more than $100 per month with a new interest rate of 7 percent. This can result in a savings of nearly $7,000 over the life of the loan. The earlier a loan is refinanced, the more the potential savings, since more of the payment goes toward interest in the beginning.

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How to Refinance a Classic Car

If you have a classic car that you are paying on, you may be able to free up some money by refinancing that car loan. Refinancing your car loan will usually lower your monthly car payments as well as save you interest costs over the life of the loan. Typically, refinancing provides the most benefits if you are only a couple of years into your loan and your credit has improved since getting the loan.

Instructions

1

Contact the current lender to get the pay off amount of the car loan, the interest rate and to ask if there is a penalty for paying the loan off early. Typically there is not a penalty for doing so, but ask to be certain.

2

Get rate quotes from some specialty lenders, such as Motor Cars Financial, JJ Best Banc & Co. and Woodside Credit (see Resources). Banks typically do not offer loans for classic cars, which means you must use a lender that specializes in classic or collector cars. After you get the quotes, you can review them to see which lender is offering you the best refinancing rate.

3

Complete an application with the lender you have decided to go with. For the application, you typically need the year of the car, make of the car, model of the car, car VIN, car mileage reading, engine size, transmission, your employment information, loan term requested, current loan pay off amount and current lender. As part of the loan, there will be a fee to transfer the lien, which usually ranges between $15 and $25.

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How Much to Budget for a Car Payment?

For people who are in the market to purchase a vehicle, thoughts concerning the actual amount the car will take out of the monthly budget are likely to come up. While there isn't a set amount of money that will be sufficient for this, there are some guidelines you can follow to ensure that the actual cost of owning a vehicle won't completely wreck your budget.

Financing

When you are purchasing a vehicle, the amount you will have to budget for that vehicle can fluctuate according to your credit score because the interest rate you pay on your car loan is affected by your credit rating. According to DriversEd.com, a person with a good credit rating can expect to pay around 4 percent in interest, while a person with bad credit can expect to pay around 21 percent in interest. It goes on to state that an applicant with bad credit would pay $464 as the monthly payment on a $15,000 car and a person with good credit would pay $339. That being said, when you start to prepare your budget for a vehicle purchase, consider taking the time to improve your credit score, if needed, so you can get the most for your money. Your credit score also may determine the down payment you will have to put down to finance your vehicle. According to MorningCall.com, the total of all your car payments should be no more than 15 percent of monthly take-home pay. If you don't have good credit, you may have to pay cash for your vehicle. You can save the money by placing the amount you would make for a car payment into a savings account. The advantage to this method is that you can often get a discount by paying cash for a car.

Immediate Costs

With the exception of buyers who are able to get sales tax, licensing fees and registration costs financed, you will have to ensure that you have money available to pay these items when you drive your car off the lot. In some states, such as Arkansas, you will receive drive-off tags that give you 30 days to register your vehicle. Even if you live in a state that does this, you should be realistic about your ability to come up with the funds within the allotted time. Many states have severe penalties for not tagging a car within the specified time.

Long-Term Costs

Your car-payment budget should also include other expenses. Include insurance costs, which will be higher for more expensive vehicles, younger drivers and people with less than stellar driving records. Include maintenance costs, such as regular oil changes, tire rotation and balancing, and windshield wiper changes. Money Under 30 suggests paying yourself a car-maintenance premium every month and placing the funds into a high-yield savings account so the money gains interest and you have the peace of mind knowing that you can pay for maintenance on your vehicle.

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How to Borrow on a Car Title

Borrowing on a car title is a short-term loan option for those holding a clear title to a vehicle. Loan amounts depend on the fair market value of the vehicle, with a loan period of usually no more than 30 days. During this time lender places a lien on the car, giving them the right to repossess the vehicle in case of default. While there is much debate regarding lender practices and risk factors involved with this type of loan, they can provide an option to those who may not qualify for a loan in any other way.

Instructions

1

Get information. Check to see if your state allows car title lending (See Resources). Not all states allow for these types of loans, while others allow them, but with limitations. Know the laws in your state regarding allowable fees, interest rates and repayment periods before making the decision to apply for a car title loan.

2

Get a fair market estimate for your vehicle. Get an idea of what your vehicle is worth by getting an appraisal in writing from a car dealership. Take the written appraisal with you to your appointment.

3

Investigate individual agencies. Comparison shop, just as you would for any other type of loan. Get answers to questions, such as vehicle appraisal criteria and methods, interest rate, additional fees, loan amounts and payment options. If possible, arrange for the lender to appraise the vehicle before filling out any paperwork.

4

Choose a lender and gather required documentation. If the lender has a website, you may be able to download the application form and fill it out before scheduling an appointment. In addition to the application form and clear vehicle title, information typically required includes an extra set of keys, proof of insurance in an amount acceptable to the lender, proof of income, proof of residence and personal references. Once you have this information, schedule an appointment.

5

Go over all loan paperwork, sign and add the lender as a lien holder to your vehicle title. Read the contract and any additional clauses carefully before signing. Most lenders will make your loan check available immediately or within 24 hours.

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Arizona Statute of Limitations on Auto Loans

Arizona restricts the number of years creditors have to collect unpaid auto loans. Such restrictions are mandated to protect debtors from worrying about old debt. According to Arizona debt collection laws, creditors must start the clock ticking on debt as soon as a payment is received.

Identification

Arizona allows creditors to collect unpaid auto loans up to six years from the last date of activity on the loan. Compared with other states, Arizona's statute of limitations is neither the longest nor shortest in the country. As of May 2011, Washington D.C. and 15 states mandate shorter statutes of limitations. The remaining states are either equal to or exceed Arizona's statute of limitations.

Enforcement of Auto Loans

A creditor seeking a civil judgment for an unpaid auto loan must file a lawsuit in a state court. The creditor must provide an original written contract and show proof of payment to establish a breach of contract took place. State courts only enforce auto loan contracts that are valid, meaning the last date of payment must have occurred no later than six years before.

Considerations

Months before the statute of limitations runs out on a written contract, creditors may contact you demanding immediate payment of the delinquent amount. Because creditors seeking a civil judgment against a debtor must file in the debtor's home state, creditors are prone to settle debt or agree to installment payments to avoid involving the court system. Demand written notification of the terms and conditions of any arrangement to which you agree.

Consequences

Failing to repay an auto loan hurts your consumer credit score. Under the Fair Credit Reporting Act, creditors and lenders are allowed to report payment history to the three major credit bureaus --- TransUnion, Experian and Equifax --- for up to seven years. Judgments can be reported for five years. Arizona allows judgments to be renewed indefinitely.

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Tips to Sell Your Car Fast

Whether you are looking to buy a new car, or you just need the money for something else, knowing how to sell your car fast can come in handy. When you start thinking about selling your car, questions about price and how to market your vehicle start crossing your mind, according to car sales expert Vlad Samarin writing on Samarins.com. Organize your approach and use some tips to sell your car fast.

Price Your Car Fairly

In order to sell your car fast, you need to sell it at the right price, says Vlad Samarin. If you price your car too high, then potential buyers may not take a look at your ad, or they may not see it because it falls outside the price range they are looking for. If you price it too low, then people may feel there is something wrong with your car. Use trusted guides such as the Kelly Blue Book or NADA Guides to establish the selling price of your car. Take a look at similar cars for sale in your area, with similar features and in a comparable condition, and use that information to help you come up with a fair price.

Clean It

Selling your car is like selling your home. In order to get the most value from it, you need to make a good first impression, according to the auto sales experts at LeaseGuide.com. Clean the car inside and out, or have a professional detail the car for you. Make any minor repairs that need to be done, and see about getting minor body work done as well. If the tires are bald, then consider replacing them. It will add value to your vehicle. Replace the windshield wipers, and clear out the trunk completely before you begin showing the car to buyers.

VIN Report

You can make a positive impression on prospective buyers when you have the VIN report for the vehicle available to them. The VIN number is the vehicle identification number. You can use free Internet VIN search websites to pull up the report for your vehicle. It will show any major repairs the vehicle has had, how many owners it has had, what states the car was registered in and how many miles it had at each registration. Supplying a prospective buyer with the vehicle's VIN report shows you have nothing to hide, and that kind of honesty can help you to sell your car fast.

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Refinance Car Vs. Purchase Car

Refinancing, or transferring your loan to a new bank, may benefit you financially more so than purchasing a different car. The amount of benefit depends on your current interest rate, amount you owe and any loan transfer benefits. Before deciding which avenue to pursue, you should compare several long-term cost variables.

Pricing

Call your bank to get your vehicle's loan payoff amount. Once you have it, decide if you want to spend more on a car or get one of equal value. If you don't want to pay more than you already owe, you might have to purchase a vehicle with equal or higher miles than the car you own. If you plan to downsize your current vehicle, such as from a minivan or sport utility vehicle to a compact, you might be able to get a newer vehicle with less miles.

Interest Rate and Term

One of the reasons people refinance a car loan is because of lower interest rates. If you can obtain a better interest rate for the same or a longer term than you have, you can save a substantial amount per month or over the term of your loan. New vehicles have better rates than used, so look at your overall payback costs before deciding.

Warranty

A vehicle warranty, whether provided from the factory or extended warranty purchase, can save you money during your term of ownership. Since no car is guaranteed reliable, you can face unexpected and expensive repairs at any time. Compare the warranty of a car you might purchase to the one you have now. Basic warranties start about $1,000, worth consideration if your car already has a warranty.

Vehicle History

If you've maintained your car well, you probably already know its service history and what work you need to do in the future. If you're considering a used car, take it to a mechanic for a proper inspection. However, if you know your car does need repairs, purchasing a different car may prove a good decision if a mechanic ensures its maintenance history. Repair and maintenance items can add up quickly, so compare service costs of your current car to a potential purchase before deciding which to pursue.

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North Carolina Auto Statute of Limitations on Auto Loans

North Carolina has some of the most consumer-friendly debt collection laws in the country. Auto loan contracts are classed as written contracts and have a statute of limitations of three years. As long as the statute of limitations has not run out, creditors are permitted to take action to collect unpaid auto loans. However, certain circumstances will cause the clock on the statute of limitations to reset.

Identification

An auto loan contract is a legally binding agreement between a payee and a payer. The contract identifies the names of the parties involved as well as the terms and conditions of the auto loan. Other key information included in the contract is the origination date of the loan and the date of the first scheduled payment. The clock starts ticking on an auto loan on the date of the last activity on the contract, such as a payment. To find the date your last payment was received or the discharge date of your auto loan, check your consumer credit report. Written contracts remain on your consumer credit report for up to seven years.

Time Frame

In North Carolina, the statute of limitations on written contracts is three years, which is the shortest in the country. Only five other states have a similar statute of limitations, including Mississippi, Delaware and New Hampshire. Some of the states with the highest statute of limitations in the country include Rhode Island, Missouri and West Virginia.

Considerations

According to North Carolina debt collection laws, a creditor must bring legal proceedings against a debtor before the statute of limitations expires or forfeit the right. In other words, if a creditor fails to sue a debtor for the repayment of an auto loan before the statute of limitations expires, it forfeits it's right to do so in the future.

Judgment

If a creditor sues in court for an unpaid auto loan and wins a judgment for the remaining money owed on the contract, the judgment will remain on your consumer credit report for up to 10 years. The clock starts ticking from the issue date of the judgment. To win a judgment, the creditor must provide the original signed auto loan contract and any cancelled checks to prove breach of contract.

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Does it Make Sense to Lease a Vehicle?

Leasing is an alternative to financing that restricts mileage and ownership term, but offers a lower payment than financing. Leasing is not for everyone, as some people drive too many miles per year or prefer to own their cars outright. Learn if leasing makes sense for you based on your driving habits and lease requirements.

Benefits

Leasing a vehicle allows you to drive a new vehicle every few years. Most leases run for a term of 36 or 39 months, which is usually the time the vehicle is under the manufacturer's bumper-to-bumper warranty. While you are responsible for maintaining the vehicle, you won't have to worry about expensive and unexpected repairs, as the warranty should cover any mechanical issues. You can also walk away from the lease at the end of the term, as the bank assumes future market values, so you don't have to worry about trading in or selling on your own. You pay for depreciation only, which results in a cheaper payment than financing, sometimes over $100 per month cheaper.

Restictions

Leasing is ideal for those who drive 15,000 miles per year or less. You may have the option to choose a higher mileage, but if you do, the payments are very similar to financing. At the end of your term, you must have less than the mileage you chose at the beginning of your contract, as fees for going over that mileage can prove expensive. The lessor can charge anywhere from 10 to 18 cents per mile over your allowance. You must also maintain your car and repair it so it is in good condition before returning it. You cannot modify the leased vehicle while you have it; you cannot put stickers on the body of the car or remove or replace the radio. The bank owns the vehicle you lease, which is important to keep in mind while you drive it.

Options

Most leases are advertised for up to 39 months and 15,000 miles per year. You can choose a term as low as 24 months or as high as 60 months, although doing so may not prove financially beneficial. The leases you see advertised are usually the cheapest option available, meaning any changes will raise the low, advertised payment. Advertised money down is not necessary. You must make your first payment to lease a car, but you don't have to pay taxes, fees or a down payment, although this will cause your payment to rise. Payments are cheaper than financing, and before you sign your contract, leasing offers some options and flexibility.

End of Term

You can purchase the vehicle at the end of your lease or walk away from it. Even if you have gone over your mileage or damaged the car, the amount you can buy the vehicle for at the end of the term is specified in your contract. This may prove sensible for some, especially as the risk of leasing includes lifestyle changes that cause you to go over the contracted mileage. You are not stuck paying over-mileage or excessive-wear-and-tear fees if you purchase the car. You can also use the vehicle as a down payment, as you can trade it in toward another vehicle if the buyout amount is in line with equity.

Warning

It makes sense to lease a vehicle during the time the car is under the manufacturer's bumper-to-bumper warranty; otherwise, you may find yourself shelling out a lot of cash for unexpected repairs. For example, if the DVD player breaks in the car, you are expected to fix it before you return the vehicle. If you are unsure if you can stay under 15,000 miles per year during the lease term and don't plan to buy the vehicle at the end, then leasing is probably not for you. While the lower monthly payment is attractive, fees at the end of the lease or from an adjusted lease term can cost you more than a traditional financing would, which defeats the purpose of leasing. Read the contract over fully before signing.

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What to Do When Your Car Lease Is Up

A car lease is a contract between a leasing company affiliated with a dealership and you, in which you agree to several terms and conditions, including monthly payments, in exchange for the use of a new or used car. In addition to all the decisions that normally go into buying or leasing a car, certain additional factors must be considered when a car lease is up.

Basics

Basic lease concepts include capitalized cost, residual value, lease length and the money factor. The vehicle price is the capitalized cost and the residual value is the car value at the end of the lease. The money factor multiplied by 2,400 is the lease interest rate. Most leases are closed-end leases or "walk-away" leases where your obligations end once the lease ends except for certain additional costs such as excess mileage and wear and tear.

Facts

Most lease terms limit the number of miles driven per year. According to Automotive.com, this can range from 12,000 to 15,000 miles per year. Miles over the limit are charged an excess mileage rate of about 10 to 15 cents per mile. The dealer will also inspect the vehicle for wear and tear and may charge additional fees. Measures such as washing and detailing the car, servicing it regularly and staying within the mileage limit can save additional charges when returning a vehicle at the end of a lease.

Decision

You have to decide at the end of a lease -- buy vs. lease, new vs. used. Used cars cost less, but new cars under warranty do not require major repair expenses. Leasing usually means lower monthly payments, but lease terms place restrictions. A car owner has no restrictions, although the value of the car is still affected by mileage and wear and tear. Examine your own financial situation: For example, if your credit scores are impaired for whatever reason, you may not be able to obtain lease financing, so your only option might be to buy a used car. If budgets are tight, waiting for dealer lease or purchase promotions, such as zero down or zero interest, might be the preferred option. If you are using the car for business purposes, leasing might offer certain tax advantages in terms of allowable deductions. If the residual value is low enough and the car is in good shape, buying the car at the end of the lease might represent the best value for both you and the dealer.

Considerations

Getting out of lease contracts is not easy, but it is possible. For example, Philip Reed of Edmunds.com suggests that you find a creditworthy person to assume the remainder of your lease contract. Several fee-based websites, such as LeaseTrader.com, match people looking for short-term leases with those wanting to get out of leases. You can also try to sell the car and pay off the leasing company. However, simply walking away from a lease is not a good option because it is a negative on your credit report.

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Buying a Car With No Credit Check

You can buy a car with no credit check through dealerships that offer in-house financing. These businesses are commonly referred to as Buy Here, Pay Here dealerships. A BHPH dealer makes this possible by allowing you to make payments on a car you want to buy, while in traditional finance circumstances, by paying the lender, typically a bank, that provides your loan directly. You can expect to make payments weekly or monthly, depending on the dealer's requirements.

Instructions

1

Save money for a down payment or gather funds before shopping at a BHPH lot. For most cars at BHPH dealers, you can expect to put a minimum of $1,000 down toward a vehicle. This money should be available to you before you begin car shopping.

2

Gather your last paystub, driver's license and proof of residency. While these dealers do not require a credit check, they do require that you have verifiable income and a permanent address. Electric, water, cable or cell phone bills will provide dealers with proof of residency.

3

To find a local BHPH dealership, do an Internet search for "bad credit dealers" or "buy here, pay here dealers" along with your town and state. You may have to search outside of your area, depending on where you live, so try neighboring towns or the closest large city for more results.

4

Many BHPH dealers put the required money down and monthly payments on the window of inventory cars, but you can speak to representative to find a car within your budgets. Shop until you find a car you like.

5

Agree on amount of money down and monthly payment for the car you pick, but keep in mind that BHPH lots are often non-negotiable unless you're paying cash. Set up insurance on the car you choose, which is a requirement of any dealership before you can complete a purchase. Your salesperson should set up your insurance for you, making sure you list the proper loss-payee, which is the dealership until the loan is satisfied. Proof of insurance should be faxed to the dealership.

6

Sign any paperwork required by the dealership. Read the fine print, so you are aware of your interest rate, length of payment term and penalty fees. The dealer will provide and handle your motor vehicle paperwork along with temporary registration and license plates.

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If I Face a Hardship, Can I Modify My Auto Loan?

Don't panic if you can no longer afford to pay your auto loan. You may see yourself in the midst of a financial crisis, but by keeping a level head, you can find your way out. Although it may take some time for you to rebound, consider solutions to the problem that will do the least damage to your credit.

Loan Modification

Talk to your lender if you are having trouble paying your car loan. Loan modification may be an option if you expect to have only temporary money problems. Your lender may offer various alternatives to lower your payments. One option is to allow you to skip a few payments, and then add the deferred amount to the end of the loan. Another option is for you to make lower monthly payments for a specified time. If you don't expect your finances to improve over the short term, ask your lender if you can negotiate a new payment plan. You are more likely to get a positive response if you go prepared by showing what amount of monthly payments you can afford. Talk to your lender as soon as you realize that you face a financial dilemma. Ask for help before you get behind.

Refinance

Your lender may be willing to refinance your auto loan once you explain your financial difficulty. The steps are similar to refinancing any other loan. Once a lender approves you for a new loan, you pay off the old loan. You don't have to get a loan from the same lender that financed your first loan if you can find a better deal elsewhere. Refinancing your auto loan can lower your monthly payments. Shop around for a lower interest rate than what you currently pay. If you can't get a lower rate, see about extending the number of months you will have to pay off the existing loan. Check whether your existing loan charges a prepayment penalty before paying off the loan. In some cases, your original lender may willingly extend the term of your existing loan without you having to take out a new one.

Sell the Vehicle

If you cannot refinance your auto loan or negotiate new terms with the lender, you can try to sell the vehicle. By selling it yourself, you might get more money than if you take it to a dealership. Even if you sell the car, you will still likely owe money to the bank or finance company. You may need a personal loan to cover the difference you owe and buy a cheaper car. Although you will then have this loan debt to repay, it will be less than your original car loan.

Voluntary Repossession

If your financial situation is extremely bad, and you owe a lot more money than the car is worth, your only option may be voluntary repossession. By giving the car back, you save the lender charging you the repossession fees, including the costs of towing and storage. Talk to your lender before choosing this route, because voluntarily handing over the keys will hurt your credit. If you prove your financial hardship, the lender may be sympathetic and willing to reduce the balance you still owe. It's not likely that he will forgive all of the remaining loan debt, but you might work out a deal that lowers the final payoff amount. Even after you turn in the keys, unless you get any terms you negotiate in writing, the lender can come after you for the difference between what you owe and what the car sells for at auction.

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What to Do if You Are Upside-Down on an RV Note & Need to Sell It

To transfer the title of your RV, you must pay off your loan and obtain a lien release or proper title signature, depending on your state's requirements. You may use the proceeds of your sale to pay off your lender, but you'll have to provide the rest of the money yourself to satisfy the loan.

Lender Payoff

Call your lender to find out how much you owe on your RV loan. Also ask for your loan's per-diem amount, which is the amount of interest charged to your loan daily. You'll have to add the per-diem amount to your payoff each day until your sale. This is a good time to ask about the loan pay off process so that you can communicate better with your buyer during the selling process; your buyer will want to know when he can take ownership of the RV. If the lender is local, you can likely arrive in person to pay off the RV loan and obtain a title or lien release to give to your buyer the same day.

Valuing Your RV

The more you can get for the RV, the less you will have to pay out-of-pocket, so you want to make sure you get a fair price. Access online RV appraisal guides and use a median value among the different guides, as values will vary. Keep in mind that values will differ by area. You might find you can get more or less than online appraisal values. Checking RV classifieds will help determine how much similar RVs are selling for in your area.

Buyer Payment

Once you have an idea of how much you can expect to get for your RV, budget accordingly to satisfy your loan. You'll need to have your money ready before you find a buyer. This way, you and your buyer can go to your lender (if it is local) to satisfy the loan. If the lender isn't local, you can arrange a conference call with the buyer and lender to verify the amount due on the loan. Make the excess payment before your buyer so that he can verify that his payment satisfies the loan amount. Your buyer can pay you or your lender for the remaining balance due on your loan after you make your payment.

Trade Option

A dealer can take your RV for trade toward another purchase. The excess value that you owe on your loan goes toward your new purchase or loan amount. Many states offer a tax deduction for RV trade-ins. Since you already paid tax on the RV you want to trade, you can reduce the selling price of the new RV by the dealer's appraisal value before applying sales tax. Depending on your RV's value and your area's tax rate, you can save thousands of dollars in tax charges.

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California Liability Law on Used Vehicles

In California, the Car Buyers Bill of Rights protects consumers that purchase new and used vehicles. Under the state's consumer protection law, used car buyers have rescission periods to cancel their purchases. California further protects used car buyers with mandatory disclosure laws that dealers must comply with prior to completing the invoice or sales transaction. These used car consumer protection laws generally apply to transactions between a used car dealer and car buyer.

Song-Beverly Consumer Warranty Act

The Song-Beverly Consumer Warranty Act is California's lemon law. Under the state's lemon law, manufacturers that cannot remedy a defect under their express car warranties must replace the vehicle or refund the owner for the cost of the transaction. The law covers both buyers and lessees leasing new cars. Under the law, buyers or lessees have the sole discretion to determine whether they would like a replacement car or refund of their fees, including purchase price, taxes, registration fees and incidental damage and repair fees the owner incurred. However, dealers may deduct fees for reasonable use determined by the state's calculation for deduction rules.

Exceptions to the Song-Beverly Consumer Warranty Act

Generally, California's lemon law applies to only new vehicles. However, it applies to used vehicles still covered under an express warranty. For example, car dealers that sell used cars still covered under the general warranty period are bound by the state's lemon law.

Car Buyer's Bill of Rights Rescissions

To provide used car owners with some consumer protections against dealers that sell "lemons," California enacted a rescission law allowing used car buyers with an option to cancel their purchases during a two-day cooling off period. Buyers purchasing used cars for less than $40,000 can cancel their transactions. The rescission rights do not apply to buyers who buy luxury vehicles exceeding $40,000 or buyers who buy cars from private sellers. The rescission rights do not extend to consumers buying RVs, ATVs, commercial-use vans or trucks.

Two-Day Timing

Car dealers can charge a contract cancellation fee up to a limited amount depending on the car's sticker price. Car buyers that buy the option must return their vehicles to their dealers by the end of the second rescission day unless the terms of their agreement provide otherwise. Purchasers have at least 250 miles to drive the car, but dealers can charge reasonable fees for restocking in addition to the charge for the rescission options. Buyers must provide the dealers with all of their original receipts and may not have altered the vehicle or have used it as collateral. Buyers that do not comply with the two-day rescission allowance must receive a nonacceptance letter from the dealer of its refusal to provide a return.

Invoice and Odometer Fraud

Under California law, dealers must provide car buyers with price accounting itemizations for all charges. Dealers must also provide buyers with an inspection report certifying the car's odometer reading and certifying the vehicle did not previously suffer any damage or accident. Dealers that do not comply with these disclosure laws are guilty of violating California Civil Codes by committing odometer fraud or inspection fraud punishable by imprisonment or fines.

Considerations

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

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How to File a Motorcycle Lien

An improperly filed lien leaves a creditor with no avenue to its collateral. The owner of a motorcycle does not truly own the vehicle until his financing is paid. The creditor's information is printed directly on the title at the time of acquisition. When the debt is settled, the state's Department of Motor Vehicles issues a new title without the creditor's name. If the creditor doesn't correctly file the lien, the creditor lacks the recourse needed to repossess the motorcycle.

Instructions

1

Read the title to get the motorcycle's year, make, model and vehicle identification number. Include this information on all paperwork.

2

Obtain financing paperwork, which varies by state and transaction. Typical documents include a promissory note and a security agreement. The promissory note is the agreement to repay the loan. The security agreement offers the motorcycle as collateral.

3

Acquire a motor vehicle financing statement from your state's Department of Motor Vehicles. The form must be specific to the state in which the motorcycle is registered. Complete and sign the financing statement along with the motorcycle's registered owner.

4

Attain a written statement from the vehicle owner specifying that he grants you permission to encumber the title to the motorcycle. Ensure that he identifies the vehicle using make, model and vehicle identification number.

5

Bring the motorcycle title, the financing statement, the owner's statement and a photo ID to your state's Department of Motor Vehicles.

6

Pay the registration fee. The amount varies by state.

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Why Do Dealers Ask for More Than the Kelley Blue Book Retail Price?

The Kelley Blue Book has grown into one of the more reliable resources for consumers looking to price an automobile away from the dealership. The source is so trusted by consumers, an auto dealer who prices his vehicles outside of the Blue Book's suggested range may raise eyebrows and lose customers. Despite this, there are some viable reasons a dealer may price his vehicles higher than Kelley Blue Book price.

Kelley Blue Book Doesn't Sell Cars

The Kelley Blue Book is a tool for measuring the average price of an automobile in certain circumstances and market conditions. The Kelley Blue Book has never sold a car, however, and does not take into account the facts on the ground at a dealership like the popularity of models in a given year or the location of the dealership. For example, if market conditions in a certain area show a car is selling well at a certain price, dealers are going to price those vehicles to match the successful selling price regardless of the Kelley Blue Book suggested retail.

Cetified Parts and Servicing

Kelley Blue Book's suggested retail pricing does not factor dealership-certified parts for used vehicles into its quotes to consumers. Certified used vehicles undergo stringent dealership inspections and often carry limited warranties which protect the vehicle for up to a certain mileage after purchase. A dealership typically charges more for these vehicles because they are less of a risk for premature failure than a used vehicle which has not undergone such thorough testing and replacement of potentially faulty components.

The Manufacturer Sets the Retail Price

For new cars, the manufacturer's retail price allows very little wiggle room for a dealership to price a new car. Since Kelley Blue Book suggests a "fair retail price" for a given new vehicle it can give consumers the notion that dealerships are charging an unfair price, when in reality they're simply charging the price required by the manufacturer. The belief that a consumer can haggle over the price of a new vehicle in the modern world is largely a myth.

It's Only a Suggestion

The price listings available through Kelley Blue Book's website and its print publications are only suggestions, not requirements. A dealer is free to charge whatever he likes for a new or used vehicle. You, as a consumer, are free to look elsewhere if you believe the price a given dealership is charging is too high. If a dealer continually prices his vehicles out of what the market will pay for them, he most likely won't be in business for long.

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Can You Purchase a Car Mid-Lease?

You can purchase a vehicle in the middle of a lease contract or trade it to a dealership to pursue another purchase. Financing or trade obstacles may exist because of the vehicle's equity. Consider the benefits and disadvantages of purchasing a car in the middle of its lease so you can decide if it is financially beneficial.

Buyout Price

Call your leasing bank to find out your leased vehicle's buyout price. The price is often equal to the number of monthly payments you have left and the lease buyout amount, which is stated in your lease contract as the last payment. A dealership can do the same if you plan to trade the car toward another purchase. In the event that you trade the car, you can transfer negative equity to your new car's purchase price. If you owe less than the vehicle's purchase price, you can put the credit toward your new purchase as a down payment.

Value

Purchasing the lease may not prove worthwhile if you owe significantly more than the vehicle's current value. Depending on the vehicle's negotiated price when you initially leased it, the amount of payments you made and your leasing term, you may have too much negative equity in your car to finance it or trade it in. After you have the car's purchase price, check retail values. Edmunds.com or the Kelley Blue Book website offers vehicle appraisal tools. Use the guides to access your vehicle's suggested retail pricing.

Financing Issues

If you are upside-down in your car, you may have difficulty obtaining a loan for the lease purchase price. In this event, you likely have to offer a down payment to decrease the car's negative equity. If you apply to finance the leased car, make sure you note all of the vehicle's options. Banks decide vehicle lending amounts based on value, which increases when the vehicle has more features. Be sure to note vehicle features such as leather, a sunroof, alloy wheels, a navigation system or DVD player before you pursue financing.

Disadvantage

Depending on the current market value of your vehicle, it may not make sense to purchase it. Most lessees initially pursue a lease based on its monthly payment, not the vehicle's overall price. Because it is likely you leased the vehicle at or close to its sticker price, a down payment is likely necessary. Checking the sales price of other like vehicles can help you to determine if the purchase is worthwhile. Most states do not charge tax on the total price of a leased vehicle, so expect to pay taxes on your purchase price as well.

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How to Apply for Vehicle Finance

Many people finance to own a reliable vehicle that they may not be able to afford otherwise. If you're buying from a dealership, they can handle your financing, as most dealers use a variety of banks. Once you choose your car, the process of applying for a loan is rather straightforward. Know which information you should have on hand to apply for a vehicle loan.

Instructions

1

Gather information for the vehicle you want to purchase. If buying from a dealership and applying for a loan elsewhere, ask for a buyer's order, which will list the information needed for an application. Otherwise, have the vehicle identification number (VIN), year, make, model, level, odometer reading and selling price ready to provide to the bank.

2

Check the vehicle over for extra options, as bank values depend not just on the basic vehicle information, but how well it is equipped. Note the following options: alloy wheels (not hubcaps), leather, sunroof, spoiler, DVD player, navigation system, power windows and any additional options you find. If using a dealer and applying elsewhere, ask for vehicle options to be listed on your buyer's order.

3

Get your paperwork ready to provide with your application. Bring your driver's license, proof of income (most recent pay stub or tax forms) and proof of residency (a recent electric, water or cable bill in your name). If planning to purchase from a dealer, you'll also need this information.

4

Go to the bank or dealer you plan to apply to. Speak with a representative, who will take your application. Give the representative all of your vehicle information (not necessary at a dealership) and let her know that you have your proof of income and residency ready.

5

Fill out the credit application, providing your name, address, phone number, date of birth and Social Security number. Provide your address, how long you've lived at it, and your monthly rental or mortgage payment, if any. State your employer, time on the job, business phone number and gross annual income.

6

Sign your credit application. Let the representative know if you plan to put money down toward your loan.

7

Go over your options with your potential lender. Decide on the best term that both fits your budget and your plans to pay off the car. You can take out as little as a 12-month loan or as much as an 84-month loan at some banks -- have the representative run different monthly payments.

8

Wait for your notification of approval. If using a dealership, this process is either instant or can take up to an hour. Under special financing circumstances, such as poor credit issues, the process can take days. If using an outside bank, your approval will either be instant, or can take up to several days for official approval.

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How to Downsize a Car With a Loan

Many people struggle with their car payments because of the downturn in our economy. It is possible to downsize their vehicle and reduce their payment. The current vehicle needs to be appraised by a reputable dealer and paid off to remove the lien on the title. By purchasing a smaller and more fuel efficient vehicle, money will be saved in the long run.

Instructions

1

Arrive at the dealership prepared with the bank name, account number and payoff amount. Time will be saved with this necessary information needed for the dealership to pay off the loan.

2

Drive your current vehicle to the dealership to be appraised. Have the vehicle in clean and good working condition for maximum trade value. Money will be deducted for any damage or obvious mechanical defects. By researching the trade in value on one of the many web sites on the Internet there is more bargaining power. Be educated on the trade in value and pricing on new vehicle

3

Choose a less expensive vehicle that meets your needs.The less the replacement vehicle costs, the lower the payment is going to be. Downsizing to a smaller and fuel efficient vehicle will help accomplish the goal of reducing the cost of ownership.

4

Prepare yourself for the facts. Salesperson will calculate the numbers after the replacement vehicle is chosen and present the new payment. If there is inequity between what the trade is worth and what is owed, the payment may not go down much. Evaluate the situation and decide if downsizing is the best move. If there is equity in the trade, it is very possible payment will be reduced. Overall costs will go down and mission will be accomplished.

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