May 2012 ~ Managing a Car Loan

Thursday, May 31, 2012

Ways to Find Out How Much Campers Are Worth

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Determining the value of a camper can be difficult for a number of reasons. Unlike cars, the market for campers is relatively small, making finding comparable campers offered for sale difficult. The price of campers also fluctuates greatly between various areas of the country based upon demand. There are a number of resources available, however, to determine the value of both new and used campers whether any individual is interested in buying, selling or insuring a camper.

Determining the value of a new camper will require contacting a variety of camper dealers to ascertain their selling price. As with automobiles, the selling prices and the amount of negotiation room will vary between dealers and geographic locations. Individuals should contact both local dealerships and those in other areas to gather prices from a wider area. Some camper manufacturers will sell direct to the public. The prices direct from the manufacturer will be significantly less than dealer prices, which can help an individual determine the value of the camper.

Dealers and individuals sell used campers in a variety of ways including camper-specific newsletters, classified ads and online auction sites. The Internet is a useful tool to finding the selling prices of used campers from a variety of sources. The asking price of a used camper can be much higher or lower than the actual value. By finding numerous listings and taking the average, however, an individual will have a good estimate of a particular camper's value.

Price guides such as those published by the National Automobile Dealers Association (NADA) are another option for determining the value of a camper. These guides will show prices for campers made by various manufacturers. Users simply identify the model and year of the camper and look up the price. Price guides use various formulas to account for the impact of the camper's condition on its value. When determining price using a guide, it is important to use an accurate assessment of the camper's condition.

Another way to estimate the value of a used camper is to offer it for sale to a camper dealer. Before doing so, clean the camper inside and out and make any needed repairs. Camper dealers will offer a low price as they need to resell it at a profit. For those interested in selling a camper, however, selling to a dealer is often the quickest route to a sale. Some dealers also sell used campers on consignment and will provide an estimate of the selling price. Dealers may also offer appraisal services for insurance or estate purposes.

How to Sell My Wrecked Car Without the Title Paperwork

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Though many people are fortunate enough to escape physical harm after experiencing a vehicular accident, it can still be a stressful and costly experience wondering what to do with your wrecked car. This can be particularly true when the title paperwork has been lost, misplaced or destroyed with the vehicle. The good news, is that you might still be able to recoup some of your losses by selling your wrecked car. In some cases, you might have to obtain alternative paperwork. But it is sometimes possible to sell a totaled car without any title at all.

If you are financing the car, you'll need to pay off the loan before you can legally sell it. The finance company generally holds the title to a vehicle until all final payments have been made. In some instances, your insurance policy may cover the cost of paying off your debt to the loan company, in which case you will receive the title and be free to sell the totaled vehicle. Sometimes -- though hard to accomplish with a wrecked car -- you might find a buyer who can take over the payments or fulfill the balance in full in exchange for the vehicle.

Depending on the amount of damage to the vehicle, you may have to obtain a salvage title. To obtain a salvage title, your car must be written off by your insurance company as a total loss, meaning that the cost of repairs will exceed the actual value of the vehicle. The car must be also inspected by state highway patrol officials. If it is agreed that the car is a total wreck, a salvage title will be issued by your local department of motor vehicles or state titling agency. Once you have received your salvage title, you are free to sell the vehicle.

One way to avoid the hassles and expense of towing and storing your wrecked vehicle and the salvage titling process, is to just junk the car. Professional auto wreckers are quite familiar with the legalities of auto salvaging and take care of most of the red tape for you. They are capable of checking vehicle identification numbers -- to prove ownership -- and process salvage title applications on a daily basis. In most cases, a tow truck will come to the location of the car with all appropriate paperwork to make you an offer on the vehicle. If you accept, simply show identification, sign any applicable agreements and accept your payment.

Auto wreckers typically pay minimally for totaled, nondrivable cars. But if you have a place to store the vehicle for extended periods and are handy with auto mechanics, you sell it piece by piece without any paperwork at all. Just because a car is totally wrecked doesn't necessarily mean that each and every part is ruined. If you are capable of taking the vehicle apart, you may be able to sell part of the interior such as seats, door panels and dashboard components. Some of the engine, motor and body parts may also be intact and suitable for sale. Stripping the car for parts might help you considerably recoup your losses.

How Long After Filing Bankruptcy Can I Get a New Car?

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Bankruptcy is a drastic action, according to the Federal Trade Commission, because it is usually the last option for escaping debt. It can show up in TransUnion, Experian and Equifax credit files for 10 years, but its effects are particularly strong in the first few years. Some creditors avoid recently bankrupt borrowers, but MSN Money financial columnist Liz Pulliam Weston explains that it is possible to get loans shortly after bankruptcy with credit improvement strategies.

Pulliam Weston advises rebuilding good credit immediately after the bankruptcy. Secured credit cards are a good option because they are easy to get. Banks require a deposit of $300 or more, which is held as security. They issue a card with a credit limit equivalent to that deposit and share account activity details with the credit bureaus. Six months to a year of on-time payments increases the chance of getting a new car loan because lenders see the applicant is making a sincere credit rebuilding effort.

The loan approval process can be accelerated by cleaning up credit reports, according to the Cars Direct car buying website. The Federal Trade Commission (FTC) explains that all consumers are entitled to free credit reports at 12 month intervals from annualcreditreport.com. Those who apply for car loans and get turned down also get no-cost copies. There may be invalid negative entries in addition to the bankruptcy. Dispute all mistakes through the web forms provided by each credit bureau. This may improve the credit records enough to qualify for a new car loan, even with the bankruptcy.

Lenders are more likely to make new car loans to bankrupt people with large down payments. This reduces the potential loss because it lowers the amount financed and the monthly payments, Cars Direct explains. Car buyers with long-term employment histories have an easier time getting post-bankruptcy loans because they have reliable income.

Bankrupt consumers can get immediate new car financing if they find someone with an excellent credit record to co-sign the loan. MSN writer Mary Rowland cautions that co-signers are fully responsible for loans in case of default. Lenders can pursue them if the primary borrower stops paying, and the delinquencies go on their credit reports.

Beware of dealer financing, which often includes a large mark-up that channels profit to the seller, Edmunds automotive website editor Warren Clarke warns. Talk to other lenders before car shopping, including banks and credit unions, and get a pre-approved loan. A car buyer's current financial institution may give a new car loan shortly after bankruptcy if that person is a long-time customer with otherwise good records. Lenders often charge steep interest rates to recently bankrupt borrowers, but Clarke advises that refinancing is possible in a year or two for people who rebuild their credit.

Anatomy of an Auto Lease Contract

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Car leasing is a form of financing a new or used vehicle, where the person leasing the vehicle pays for the expected depreciation over the terms of the lease. The lessor does not does not build any equity in the vehicle, nor does she have any ownership interest in the vehicle. Leasing contracts have some specific components that make them significantly different from a financing contract.

A leasing contract will specify the up-front costs associated with acquiring the vehicle. Leases, much like purchase contracts, often require a down payment. This reduces the lease payments due to a smaller amount being paid over the term. Many leases also have a security deposit, which is collected to make certain that the vehicle is returned in good condition. A lease may also have a lease ending fee, which is usually equal to the security deposit.

A lease contract has provisions for the vehicle to be returned in the same condition that it was in when the lease was originated, less normal wear and tear. The contract should specify what normal wear and tear consist of, because different people have different ideas about this. The contract may specify the amount of tire tread that must be left on the tires and may require that the vehicle passes your state's inspection when turned in. Many lease contracts also specify the maintenance schedule that you must use while driving the car. The contract may also require you to pay for any maintenance that you missed.

Because a vehicle decreases in value as it is driven more miles, a lease contract will specify the vehicle will be driven less than a certain number of miles per year. Common mileage amounts are 12,000 to 15,000 miles per year. The contract will probably specify a penalty per mile for every mile that you go over the limit. If the mileage offered at lease origination is not sufficient for your needs, you can generally purchase additional miles at the beginning of the term for much less money than if you exceed the mileage at the end of the lease.

Your leasing company will usually notify you when your lease is almost over. It will want to arrange for a place to drop the vehicle off or make arrangements to pick it up. The contract will detail many of these terms. You will also have the option to purchase the vehicle for the residual value. This purchase price is specified in the contract when you originate your lease. You may also be able to extend your lease for a limited amount of time, or re-lease your vehicle as a used car lease.

How to Sign Over a Company Car Title to a Buyer

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Signing over the title to a company car is similar to the process for a vehicle owned by an individual. The only exception is that in some cases the car is registered to a business instead of a person. The process is about the same as when a dealership signs over the title of a car, which is registered to the dealership, to a buyer.

Instructions

Review the title to confirm if it is titled in the name of someone at the business or the business itself. In some cases, the title shows the business name and the business contact's name.

Identify the official representative of the business, whether it is you or another party at the company. This is either the owner in the case of a sole proprietorship or an official named in your corporate documents in the case of a corporate entity. If someone's personal name is listed on the title, that is the person who should sign over the title.

Agree on a selling price for the company car with the new buyer. Review the odometer reading on the vehicle. Include both details on your bill of sale, which simply transfers ownership from your company to the new buyer.

Ask the owner or company representative to sign the back of the title. Enter the business name, representative name and contact address where requested. Enter the selling price and mileage. Ask the buyer to fill out his section of the car title and sign. Provide him with the title so that he can now register the company vehicle in his own personal name.

How to Use Principle Reduction on Car Loan

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The amount you borrow for a car loan is the principal balance. Interest is charged on the unpaid balance. When you quickly reduce your principal your loan is paid off faster and you save on this finance charge. The additional amount you pay can vary, depending on what you can afford. Use an auto loan calculator to see the effect extra payments have on your car loan.

Instructions

Get a car-loan calculator. A car-loan calculator is an online tool used to compute different schedules and terms for auto financing. When you have all of the terms of your loan keyed into the loan calculator, you will be able to see how much you will pay in finance charges. A ca- loan calculator also helps you determine how much you can save in finance charges, and how many months or years will be reduced from the term, by reducing your loan balance.

Find out the terms and conditions of your loan. Take the interest rate, balance, term and monthly payment and enter them into the loan calculator. Hit the calculate button. Now click on the Show/Recalculate Amortization table button to see how much will be paid in finance charges during the term of your loan. For example, a car loan in the amount of $15,000 with an interest rate of 7 percent, for 60 months, and monthly payment of $297.02 will have finance charges of $2,821.20.

Determine how much extra you will pay to reduce your car loan. Once your standard monthly payment is made, a portion goes toward interest and a portion goes toward the principal balance. Any amount included with the standard payment will go entirely towards the principal balance. You can pay the extra amount weekly, monthly or some other time period that fits your budget.

Enter the additional amount to be paid with each monthly car payment into the loan calculator. When the amount has been entered, hit the Show/Recalculate Amortization table" button to see the new finance charges to be paid. In our example, if the amount you decide to pay is $250 you will now pay $1,392.91 in finance charges, which is a savings of $1,428.29. The loan term will be reduced by 18 months.

Car Loans With Credit Problems

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Getting a car loan with a bad credit history is not always easy. Each lender sets its own standards for who qualifies for a loan, but lenders with bad credit face fewer options than those with good credit. Having bad credit doesn't necessarily mean you'll never get a car loan. It just means you may have fewer options and may have to wait until your credit improves.

Your credit report contains the details of your credit history, such as how many credit cards you have and how often you pay your bills on time. A person with a troubled credit history usually has several negative events on his credit report, such as a credit card charge-off, bankruptcy or foreclosure. These negative items hurt your credit score, a number based on your credit report, and hurt your chances of getting new forms of credit.

There is no one single credit score that means you have good or bad credit. Each lender sets its own guidelines for determining what constitutes good or bad credit. In general, however, a person with a FICO credit score of 700 or higher has good credit, while those with 600 or below have bad credit, according to the Federal Citizens Information Center. The lower your score, the harder it will be for you to get a car loan.

Not only will a bad credit score make it harder for you to get a loan, but it will also end up costing you more in interest fees. For example, as of March 30, 2011, Community America Credit Union offered new vehicles loans ranging between 3.75 percent to 12.25 percent APR, and used vehicle loans of between 3.75 and 15 percent APR. Borrowers with bad credit are more likely to receive higher interest rate terms than those with good credit.

While low credit may not disqualify you from getting a car loan, your credit isn't the only factor lenders use to determine if you're qualified for a loan. Creditors typically take into consideration how much money you make. If you don't have a steady income or are self-employed and cannot provide a history of income, for example, you will have additional difficulty getting a car loan even if you have a good enough credit score.

Does the Person Financing a Vehicle Have to Be the Primary Driver?

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The person financing the purchase of a vehicle doesn't have to be the primary driver. The person financing the loan is simply the one who owns the vehicle and takes on the contractual obligations outlined in the loan agreement. Primary driver considerations are more important to auto insurers.

The primary driver is the person who uses a vehicle most often. Car insurance providers ask about the primary driver when you arrange coverage on a new vehicle. Many insurers build car rates by matching vehicles with the primary driver. Vehicles are usually classified as "commuting," for work use, or for pleasure use.

Most buyers finance car purchases just as they do homes. These are typically the two most expensive major purchases people make. Financing a car means getting a loan from a third-party bank or lender, or getting financing directly through the dealership. When you purchase your vehicle, you either inform the dealer that you have a pre-approved loan through another lender or you ask the dealer to explore financing options through its lender network.

The person financing a vehicle is simply the buyer. Couples, or more than one person, can jointly buy a car and get an auto loan. However, the car's buyer becomes its owner. The owner can drive the car, let someone else drive it, or park it in the garage and never drive it. The dealership and lender are only concerned that you can repay your loan. Insurers want to know the primary driver to understand the risks associated with insuring the vehicle.

Jamie Page Deaton points out in her June 2009 Yahoo! Finance article, "How to Finance a Car and Get a Car Loan," that many car buyers falsely assume dealers always have the lowest loan rates. This is not always the case. Deaton suggests buyers go car shopping with a loan approval in hand to compare against the rates offered by the dealer's lenders. "Buy Here Pay Here" is relatively new lender financing alternative whereby the dealer reviews your credit upfront before shopping for cars that meet your buying potential.

Is it Necessary to Put Money Down When Financing a Car?

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Depending on your credit and your bank or credit union, you may be required to provide a down payment toward your auto loan. However, you might optionally choose to provide a down payment to meet a monthly payment budget, save money on interest charges or increase equity in your vehicle.

Your auto loan provider may require that you provide a down payment based on your loan-to-value ratio. Depending on your credit, you may obtain an approval for up to 120 percent of the vehicle's value as determined by your lender, which allows you to finance your taxes or aftermarket items without a down payment. Borrowers with poor credit might obtain an approval for as low as 60 percent of the vehicle's value. If you try to carry over money from another loan or add aftermarket items into your car loan, you may exceed the lender's loan-to-value ratio and have to provide a down payment.

If you need to stick to a budget for your monthly payment amount, then providing a down payment might be necessary if you're not willing to choose a vehicle better suited for your price range. When you obtain your loan approval, you may want to put at least your tax and fees down toward the loan to avoid increasing your monthly payment. Otherwise, every $1,000 that you finance equals about $20 per monthly payment. Depending on your area and the price of the vehicle you purchase, your taxes can substantially raise your monthly car payment.

Philip Reed, a consumer advice editor for Edmunds.com, suggests putting 20 percent of the vehicle's price down toward your loan to increase vehicle equity. Unless you plan to increase your monthly payments to pay off your loan early, you may find yourself in a negative equity position, meaning you'll owe more than your car is worth. This may create issues if you plan to trade or sell your car in the future, as you'll owe more than your vehicle's value and have to provide a down payment to get out of your car loan.

If you obtained a loan approval with a high interest rate, consider putting as much money down toward your loan as possible. You may spend thousands of dollars over the course of your loan depending on your interest rate. Some states allow as much as 29 percent financing for subprime loans. The less you finance, the less you'll pay in interest charges. If you choose to put minimal money down toward a high interest rate loan, try to pay it off as early as possible.

Debt to Income When Buying a Car

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Despite good credit, you might be declined for an auto loan if your debt isn't properly proportioned with your income, this is known as your debt-to-income ratio. The Home and Finance Family Resource Center reports that a debt-to-income ratio under 36 percent is ideal for loan approval. Loan providers determine your debt-to-income ratio from information obtained from your credit report and credit application.

Your credit report lists your debts, such as loans, mortgages and credit cards. Lenders review your monthly payment requirements to calculate your debt responsibility. Your credit application lists additional responsibilities, such as renting a home. If you cosigned a loan, the monthly payment responsibility is also included in your debt-to-income ratio even though you don't make the monthly payment. Only minimum monthly payment requirements listed on your credit report and application, such as rental payment, are used to calculate debt. Living expenses, such as insurance policies, food or car maintenance, aren't used to calculate your debt.

Lenders use the income you earn each month before taxes to determine your debt-to-income ratio. Unless you earn a salary, meaning you earn the same amount every pay period, you'll have to calculate your monthly income yourself to submit with your credit application. To do so, divide your year-to-date earnings by the number of weeks passed in the year. For example, if your pay stub states that you've earned $35,000 this year and 20 weeks have passed, divide $35,000 by 20. Multiply your answer by 52, and divide the answer by 12. The result is your monthly income, which you can divide by your monthly payment responsibility to determine your own debt-to-income ratio.

Your auto loan provider might allow you to include additional sources of income, such as child support, alimony, Social Security or a pension. Expect to prove any additional sources of income you add to your employment income on your credit application. If you're self-employed, your lender will likely require at least a two-year tax return history to verify income. If you've been self-employed for less than two years, you might find it difficult to obtain an auto loan.

If you were declined for an auto loan based on your debt-to-income ratio, the lender doesn't believe you can afford to make your requested monthly payments. If you earn money elsewhere but can't prove so, you can't use the income as a basis for repaying your loan. Using a co-signer might help you obtain an auto loan approval. If you have excellent credit, you might choose a co-signer with fair credit, as long as his income and debt-to-income ratio are satisfactory. If you have poor credit and little income, you'll need a co-signer with a strong credit score and debt-to-income ratio for loan approval.

How to Finance a Harley Davidson

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The Harley Davidson was first built in 1903, powered by a 1-cylinder combustion engine. It was initially built for racing. Today, many of the Harley Davidsons have engines of 850cc or more, but they are more commonly used for street riding. Considered a luxury motorcycle because of the familiar name, slick appearance and innovative engine technology, financing a Harley Davidson is often compared to purchasing a luxury car, but owning one is so much cooler.

Instructions

Obtain a copy of your credit report. Check your credit report to make sure there are no credit issues or discrepancies that could prevent you from getting a loan for a Harley Davidson. If you discover there are errors or debts that were paid off on your credit report, have these items corrected before you apply for a loan.

Talk to your loan officer to find out if you can qualify for a loan. Prepare to supply him with information about your current income as well as the amount of any debts that you have.

Ask what kind of interest you will pay and whether the loan rate is fixed or variable. Ask the loan officer how long the loan is for and whether there are any administrative fees or early payment penalties you should know about.

Prorate the amount of insurance and the tag registration for your Harley Davidson and add the amount to your monthly loan payment. This will allow you to know how much money the motorcycle will cost you each month.

Shop for your Harley Davidson. Beware of special financing deals offered by the dealership. Although the deal may initially sound better than the original loan you set up at the bank, you may discover that once the promotional rate is over, the amount you repay on the loan is significantly higher.

The Effects of Car Financing

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For many people, financing a vehicle may be the only way to afford the purchase. Instead of having to come up with a large lump sum, the buyer can make a small or possibly even no down payment while paying the balance over time. Financing a vehicle can have several financial effects, which may be positive or negative.

If you've experienced financial difficulties which ultimately resulted in bankruptcy, obtaining an auto loan is a way to help re-establish your credit. Some used-auto dealers specialize in providing financing to people with poor credit histories, but you may pay an interest rate in excess of 20 percent to start. However, making timely payments will improve your credit score, and you may be able to refinance to a lower rate after a year or two.

You'll likely end up paying more for a vehicle when you finance as opposed to paying cash because of paying interest. The only possible exception is if you are able to secure zero-interest financing, which some manufacturers offer to well-qualified buyers as an enticement to purchase a vehicle. In general, the longer the financing term, the more you pay in interest over the course of the loan, although stretching out payments may result in a lower monthly outlay.

The fact that vehicles begin to depreciate as soon as they're driven off the dealer's lot, as well as the tendency for some car buyers to roll an old car loan into a new one can result in owing more than the vehicle is worth, a condition known as being "upside down." One danger of being in an upside-down loan is that if the vehicle is totaled in an accident or stolen, you could end up having to pay the difference between the car's insured value and what you owe out of your own pocket. You may need to purchase a product called gap insurance to protect you against this situation.

By financing a vehicle instead of paying cash, you won't use up a large chunk of your cash reserves. As a result, you'll stand a better chance of having enough cash on hand to cover financial emergencies, and you may be able to avoid excessive credit card use. You can also help to solidify your financial future by investing some of the money to build a nest egg or by using the cash to make a down payment on a home.

How to Finance a Vehicle During Bankruptcy

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Bankruptcy can be a tough thing. Depending upon the type of bankruptcy, you may lose just about everything. Financing a vehicle may not seem like the best thing to do at this point in your life, but it just might be. After all, rebuilding your credit score after a bankruptcy is vital. In addition, you may have had to sell your car to qualify for the bankruptcy. This may leave you in need of a reliable mode of transportation, and unless you live in a big city with good public transportation, the only way to go is with a car.

Instructions

Plan for rejection. When financing a vehicle during a bankruptcy, you will most likely be turned down by a fair number of creditors. Do not become discouraged if you are rejected for financing due to your bankruptcy. There are steps you can take that will assure creditors you are a good candidate for financing.

Have a significant down payment. If you can pay a significant amount of the total car price through your down payment, the creditor will feel more secure about the lease. In addition, if there is a significant amount down, the creditor can request that a portion of that down payment goes to purchasing insurance against the possibility of defaulting on the loan.

Buy from a dealer that guarantees credit approval. Banks who work with dealers that guarantee credit approval are used to handing situations where the buyer does not have perfect credit or is going through bankruptcy. Dealers know which banks to contact to give each customer the best chance of obtaining financing. In addition some of these locations will finance the vehicle themselves, increasing your chance of obtaining a vehicle.

Buy a used car instead of a new one. A used vehicle may be a better option because they are often cheaper than new cars. A vehicle that is slightly used often costs thousands less than vehicles that are new. This can help to ensure that the payments can be made in a timely manner. It is important to get a vehicle history report with any used vehicle that is purchased. This helps to ensure the quality of the vehicle being purchased.

How to Lease a Car for a Month

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People lease cars for reasons such as business or leisure travel. Most cars are leased for longer periods of time, sometimes even as much as five years. However, leasing a car for a month requires less paperwork and money. There are ways to lease a car for month and save money.

Instructions

Decide on your automobile preference. Find out if you need a basic sedan or a sport utility vehicle. Depending on the situation, look into renting an economy car to save on cash. Rent at the end the month to gain access to a free vehicle upgrade. When leasing companies fail to fulfill rental quotas, they will often offer incentives to potential customers. List the options you may want, such as multiple adapter outlets, power mirrors or sun roof.

Consult reputable dealers at car dealerships and leasing agencies. Search online for travel sites that offer deals for monthly packages. Use a corporate discount or automobile discount to slash prices. If renting month to month, speak to the location manager about a customer rewards rebate.

Calculate the average costs of renting the vehicle, insurance fees and gas mileage. Compare the current rates to cars in different classes. Decide if you will use your own car insurance or find out if your credit card has travel insurance to help lower insurance rates.

Vehicle Lease Return Tips

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Returning your lease can be stressful, as you may be unsure if you'll have to pay fees or what the leasing bank may consider damages excessive and beyond natural obsolescence or wear and tear. You should return your vehicle in good to excellent condition. As per your contract, you are responsible for maintaining your vehicle during the time you have it, even if at the end of your lease.

Most leasing banks offer an optional inspection several months prior to the lease return, providing you with enough time to complete necessary repairs. Leasing wear-and-tear allowance amounts differ, so check your leasing contract to determine how much the bank will cover before you become responsible. Your bank should send you an end-of-lease packet to go over several months prior to the end of the term. If you do not receive the packet, call your leasing bank for instruction. You can call either the dealer or the bank to set up a time to have your vehicle inspected and should do so to allow enough time for repairs.

Return any maintenance or repair paperwork with your lease to prove you have taken care of it. If you serviced at the same dealership, you should be able to ask for a printout of your service records to provide with the return. If not, make copies of your receipts and file the originals with your turn-in paperwork, keeping the copies for yourself. Doing so can protect you from any leasing charges for repairs you have already paid for and completed. If the vehicle had body work done, provide a copy of the repair receipt with your return paperwork, as well. This is usually noted in your lease-end agreement, but find the receipts and make your copies before the lease ends so you do not have to rush to find the papers when time is short. When you do drop off your leased vehicle, ask for a copy of all paperwork that you fill out or sign. Keep this information just in case the leasing bank charges you incorrectly for mile overage or vehicle item replacement, such as for keys or the owner's manual.

Clean your vehicle completely before returning it. Because the bank owns the car and you do not, it should be returned in immaculate condition. If you put stickers on the body of the vehicle, have them professionally removed. You can expect to be charged if the bank has to remove the stickers for resale. If you have the inspection completed before the lease-end period, have any recommended repairs completed as soon as possible. Leased vehicles require a full-coverage (collision, comprehensive, in addition to liability) insurance policy for this reason, so do not hesitate to have body damage repaired, whether you pay for it out of pocket or go through your insurance company. Otherwise, you can expect to pay out of pocket after the bank has inspected the vehicle.

Car Financing Laws in South Carolina

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In South Carolina, the Fair Debt Collection Practices Act governs lending and collection practices of automobile loan lenders. When car buyers sign loans to purchase their vehicles, their lenders have certain legal duties. The South Carolina Department of Consumer Affairs administers the South Carolina Consumer Protection Code. The Consumer Protection Code was enacted in 1974 and protects consumers from unlawful lending and deceptive trade practices.

When consumers default on their vehicle loans, their lenders must provide them with a written default notice and give them at least one 20-day opportunity to pay their debt before they can demand a return of their vehicles or reclaim it through an involuntary repossession. Lenders must also comply with the Fair Debt Collection Practices Act when attempting to collect their debts.

The Fair Debt Collection Practices Act prohibits predatory conduct intended to mislead or harass consumers. Under the South Carolina consumer protection law, a lender or a third-party collection agency may not contact the consumer if he defaults on his loan during unreasonable hours. Generally, it is illegal for lenders to contact consumers before 8 a.m. or after 9 p.m. Furthermore, lenders may not contact consumers if issued a request to stop contact from the consumers. With the exception of attorneys represented to hire the borrowers, collection agencies and banks cannot call any other parties in an effort to collect their debts.

After the debt collector or financing agency contacts a borrower who has defaulted on her loan, it must send her a written notice within five days after contact notifying her of the amount due and what she may do to contest the default. Lenders cannot garnish a borrower's wages in South Carolina. Garnishment is limited to child support orders, government debts and garnishment orders entered in other states. However, lenders have repossession rights and may remove vehicles from driveways or streets if they do so peacefully.

Spot credit loans are legal in South Carolina, but the lender must comply with the same consumer protection law when issuing spot credit loans. A spot credit loan allows the consumer to immediately take possession of the vehicle before a lender actually approves her application. After he takes possession, the lender can immediately require him to return the car if it denies his loan. The lender can conduct a credit check following possession, and according to the South Carolina Department of Consumer Affairs, often consumers were not aware their loans were contingent upon a pending credit check.

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.

How to Get a Low Interest Rate When Buying a Car

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Get a low interest rate when buying a car and lower your monthly car payment. The interest paid on a car loan (or any type of loan) directly influences the monthly payment obligation. Auto lenders determine interest rate using different variables, and car buyers looking to keep their payments within a specific range typically use methods to get the best interest rate.

Instructions

Fix credit issues to qualify for a low interest rate when buying a car. Bad credit auto loans do exist, but people with poor credit pay higher interest rates. Monitor your credit beforehand and check your report for errors. Pay all bills on time and lower debt to help improve your FICO score. Apply for a car loan when your score is 700 or higher.

Budget for a down payment. An auto lender will approve you without a down payment, but having cash on hand can help you negotiate a cheaper interest rate on your auto loan, and ultimately save you money on the loan. Save at least 10 percent.

Pay off the car loan in less time. Skip 60-month or five-year financing and plan for a three or four-year auto loan term. Reduced terms typically result in lower interest rates. Compare monthly payments with a shorter and longer term, and choose the shorter term if you can afford the payment.

Negotiate a low interest rate when buying a car with a co-signer. When your credit score doesn't justify a low rate, use a co-signer to help bring down the auto loan rate. The co-signer will come with you to the bank or dealership and sign the loan papers. The auto loan appears on their credit report as well, and they agree to make the loan payment if you fall behind.

Request auto loan quotes. Check with your bank or credit union to see if they can offer a better rate on the auto loan. Dealerships offer car financing, but they may not offer the lowest interest rate on the auto loan, which can costs you more money in interest over the life of the loan.

What to Know Before Buying a New Car

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You can save thousands of dollars on your new car purchase by taking the time to research vehicle and pricing information before you arrive at a dealer. Pricing and discount offers are readily available online at the manufacturer's website. Learn as much as possible about the vehicle you want to buy to prevent spending unnecessary cash at the dealer.

The manufacturer's suggested retail price is affixed to each new car window. These window stickers list the car's specifications, safety ratings and price with added features. Some new car dealers add an addendum sticker next to the window sticker, which serves to increase profit. Know your vehicle's MSRP before you go to the dealer's lot so you can easily identify bogus fees or vehicle add-ons that increase dealer profit. Go to the manufacturer's website to virtually build the vehicle you want and print out your results. Bring the price sheet with you and ensure your negotiations begin at MSRP, not addendum price.

Learn which discounts are available to you. This way, your salesperson does not convey that you're getting a "deal" when you're actually paying the price you should. Manufacturers advertise discounts online. You can review interest rate offers, rebates and lease offers. Determine the vehicle's correct starting price with applicable discounts. For example, if a new vehicle costs $25,000 and the manufacturer offers $3,500 off in rebates, your vehicle's price is $21,500. Unless you can negotiate a larger discount, this is the amount that all buyers should pay for the specific vehicle.

Research your vehicle on your own before you visit a new car dealership. This way, you can avoid spending too much money for a vehicle with options that you don't need. For example, if you want a sunroof, your dealership may have one on its lot that has unnecessary features, such as leather or a navigation system. If you research the vehicle online, you may find that you can get a base model with a sunroof, which can likely save you thousands. Research standard vehicle features and additional add-ons so you know which vehicle you want to test drive when you arrive at the dealer.

Even after carefully researching price and vehicle options, you can still spend more money than you intended to at a dealership. Expect to visit the finance office of the dealership to sign your purchase paperwork. During this stage of the purchase, the finance manager will offer you an array of aftermarket items, such as an extended warranty or gap insurance. Prices in the finance office are also marked up, so decline any offers until you can further research pricing.

Can I Buy a Brand New Car If I Filed for Bankruptcy?

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Filing bankruptcy doesn't stop difficulties in other areas of your life, just one of which may be the need for a new vehicle. When you've filed bankruptcy, you'll probably have a harder time getting a new car than you would if you didn't file. Even so, your bankruptcy doesn't have to mean you are left without the transportation essential to you.

When you approach a dealer about getting a new car, the dealer looks at your credit score and history, which will reflect your bankruptcy. However, this is only part of the auto financing picture. Your dealer also checks your debt-to-income ratio, which is the amount of debt you have divided by the money you have coming in. Another point of consideration is your employment status. All three of these factors help the dealer determine how likely you are to default on an auto loan.

Some dealers opt to use bankruptcy as a pre-screening tool; if you filed bankruptcy, you can't apply for a loan. Others are more forgiving because they understand that you can't file bankruptcy again for at least seven years, and that people make mistakes and sometimes need a second chance. Whether you can get a new car may thus depend on which dealer or auto lender you approach.

Although bankruptcy stays on your credit report for up to 10 years, lenders may disregard the bankruptcy if you show proof of financial rehabilitation. For example, you should be able to show items such as statements from other providers that show you've been paying everything in full and on time, a certificate of completion from a debt counseling program, paystubs and other documents from your employer's HR department indicating you're working at a specific pay rate. Some people are able to show this rehabilitation in as little as two years after filing. If you didn't just file your bankruptcy case and can show improvement in your situation, your dealer may work with you.

Typically, it's difficult to get a new car immediately following bankruptcy because you have not had enough time to rebuild your credit. However, if you wait at least two years and can prove you're on the right financial track, you may be able to find a dealer who will work out a deal with you and who has experience in bad credit financing. Tara Baukus Mello of Bankrate.com suggests that you build some savings as you rebuild your credit score so you can put a larger down payment on the vehicle. This way, you appear as less of a risk to the dealer. However, even if you can get a dealer to work with you, you should expect a higher interest rate than if you hadn't filed.

Can You Trade in a Vehicle You Are Financing?

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When trading in an automobile, you have many options. You can trade in a vehicle you own out-right, with the trade-in value applied toward the purchase of a new vehicle, or you can trade in a car you are financing. If you are "upside down" in your loan, you will need to pay off the difference between what you owe and what the vehicle is currently worth, or in some cases, you may be able to roll the overage of the loan balance into the loan for a new vehicle.

Before trading in a vehicle you're currently financing, ask your finance company exactly how much money is left on your note, then determine the current fair market value of your vehicle and calculate the price difference. It can be a bit subjective determining the value of a vehicle, as several factors are taken into consideration, including the model, year, mileage and condition of the vehicle. Kelley Blue Book is the most commonly used guide for determining the fair market value of a used car or truck. Available as a free, online tool, the Kelley Blue Book calculator allows you to input the specifics of your vehicle to determine a fairly accurate estimated value.

Once you know how much your car is worth and what you owe on your loan, you'll have a figure to work with. For example, if you owe $5,000 on a car that has a trade-in value of $3,000, you will be responsible for the remaining $2,000 balance. You can pay off the loan amount, trade in the fully paid-off vehicle and secure a new loan, or you can roll the extra $2,000 into a new loan. Using this same example, if you want to purchase a new vehicle worth $25,000, with the outstanding $2,000 you own on the first loan, your new loan will be $27,000.

In some instances, you may find it worthwhile to trade in a financed vehicle for a new one, even if the result is a higher new loan amount. If you are able to obtain a better interest rate, purchase a new vehicle with high gas mileage or unload an under-performing, high-maintenance vehicle, the extra cost may be more beneficial in the long run.

If you trade in a financed vehicle with a substantial loan balance, move into a higher interest rate than you previously held or take on a new loan with longer terms, you may be spending much more than you realize over the life of the new loan. For best results, take into consideration your loan balance, interest rate and loan term and weigh the variables before making a final decision.

Florida Laws Regarding Canceling an Auto Lease in Three Days

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In Florida, there is no grace period when it comes to your auto lease, which is a binding contract. The three-day Florida law applies to gym or health spa memberships, and home- or phone-solicitation purchases under $25. If you want to cancel your auto lease at any time, however, you may seek cancellation through Florida's lemon law.

The Florida lemon law allows consumers to return a leased vehicle if there are manufacturer defects that both the dealer and original manufacturer could not fix on multiple attempts. Under the law, only new and leased vehicles less than two years old are eligible, and the defect must impair the safety, use or value of the vehicle. Once the buyer discovers the defect, he must give the dealer three chances to fix the problem. The lemon law covers manufacturer defects that fall under the warranty but not defects caused by neglect, modification or accidents.

If you suspect that your leased vehicle is a lemon, you must request that the dealer send the vehicle to the original manufacturer. You must write your request using a Motor Vehicle Defect Notification form and send it via certified mail. You can download a copy of the Motor Vehicle Defect Notification form at the Office of the Attorney General of Florida. Once the dealer receives this form, they have 10 days to fix the problem.

If both the dealer and manufacturer cannot fix your leased vehicle's defect, your next step is to participate in the manufacturer's state-certified arbitration hearing. If the manufacturer does not have a state-certified arbitration hearing, you must take your case to the Florida New Motor Vehicle Arbitration Board, a panel of three arbitrators that will hear your case and provide a final verdict. For a list of all manufacturers that provide a state-certified hearing, visit the Office of the Attorney General of Florida.

Make sure to keep all of your repair and maintenance receipts, which will help you prove your case during arbitration. If you are not familiar with the lemon law, consider hiring a consumer rights attorney. If the dealer offers you a settlement, you do not need to take it, but you have the option. If your arbitration hearing does not favor your case, you have 30 days to appeal the decision. Florida's arbitration program is for English-speaking consumers, but translators are welcome.

Forms for Selling a Car to Another Person

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Depending on the state you live in, different forms may be required to transfer vehicle ownership from one party to another. The most common form is your vehicle's certificate of title, which is required in most states. But, no matter where you live, it's necessary to make sure you have the right forms for such an important transaction, so make it a point to call your department of motor vehicles.

Your signed vehicle title officially transfers ownership to a buyer, although it may not be the only document necessary. If you do not have your title and do not know where it is, you can apply for a new one through your state's motor vehicle office. Some states offer an instant method for acquiring a new title and some do not, so leave enough time to order your title before you sell your car. The title must be signed by all owners. Some state titles leave a space for the seller and co-seller, or co-owner. Both owners must sign just as their names appear on the front of the title, using the middle initial or suffix listed on the document.

In many states, a lien release is required to transfer vehicle ownership. Even if it is not, many buyers are educated on the matter, meaning that your buyer will likely back out of the car deal if a lien is listed on the title and you cannot provide a lien release. You'll know if a lien holder is listed on your title because a space is provided for noting the lien holder and lists the name of the bank which you owe or owed money to. A lien release is an official bank document printed on bank letterhead listing the vehicle information and that the loan has been satisfied. The release is also signed by a bank representative. Provide the original document when you sell your car and keep a copy if you feel it's necessary. Do not keep the original.

The bill of sale protects the buyer and the seller, and it is required in some states for the transfer of ownership. You should make one regardless. The bill of sale, or receipt, should list the vehicle identification number (VIN); the year, make and model of the car; the odometer information; and the selling price. In addition, it should be dated and signed by both the buyer and the seller, along with each party's name, address and driver's license number. The seller should state that the vehicle is being sold "as is," as most used vehicles are. The buyer can use the bill of sale to find the seller should any problems arise at the motor vehicle office when trying to register and title.

The odometer statement is separate from the title in some states. Usually, if the vehicle is less than 10 years old and the title shows no space for the odometer reading information, your state most likely requires an official odometer statement form. The bill of sale sometimes serves this purpose, but not in all states. You should find out if your state requires the form before you sell because you'll have to sign it before the buyer can register or title the car.

Comparison of Vehicle Finance

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Under most circumstances, auto loan terms are flexible. Some borrowers may have to provide a down payment or face a restricted term with poor credit. Otherwise, with good-to-excellent credit you can adjust your term and down payment amount to fit your budget. Consider your rate, term and down payment options to ultimately save money over the term of your loan or afford a lower monthly payment.

Compare the rates of different auto loan providers to determine where to apply for you loan. Manufacturer banks may offer lower interest rates than you can get elsewhere, but you must have good-to-excellent credit for approval. Check manufacturer websites for rate or lease specials. New car interest rates, offered by credit unions, banks or online auto loan providers, are usually lower than those offered for used cars. Unlike manufacturer banks, traditional lenders offer more flexibility; you may obtain an approval even with poor credit. Sub-prime lenders offer high interest rate loans to risky borrowers, or people with poor credit.

Once you determine which lender to apply to, use an auto loan calculator to determine the differences in your loan options. If considering a rebate or rate incentive for a new car, an auto loan calculator allows you to review which option offers a cheaper payment or the lowest overall payback amount. Edmunds.com offers several calculators. Also consider your tax rate, dealer and state fees when comparing your financing options. Adjust your calculations to review how term or down payment amount affects your loan payment and payback amount.

Most auto loan providers advertise rates on their websites, but you may have to call for details. Read the fine print; advertised rates are often for new cars, not used. Rates are adjusted by term, as well. Many lenders offer the same interest rate for terms up to 60 months. So whether you apply for a 36- or 60-month loan, the interest rate won't change. Some lenders offer loans in excess of 84 months, which may offer a lower payment, but also expect to pay a higher interest rate. To ultimately determine your interest rate, apply for a pre-approval.

Your term may have the biggest impact on your loan's total payback amount. For example, if you take out a $10,000 loan for 60 months with a 6.99 percent interest rate, you'll pay back an extra $1,880 over the term of the loan. If you took out the same loan for 36 months, you'd pay back $1,124 instead. Consider the effect your down payment has on your payback amount and monthly payment. Also be aware that some term offers may exceed your budget. For example, a zero-percent loan for 36 months may sound advantageous, but without a down payment, your monthly payment can easily exceed $500 for a new car.

How Do Banks Make Money on 0% Interest on Car Loans?

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Technically, banks do not offer zero-percent financing. In fact, the low rate is usually an incentive offered by the manufacturer in lieu of rebates, or money off the vehicle's MSRP (manufacturer's suggested retail price). The cash discount you could have received goes to the lender to buy down the rate instead.

The amount a bank might make in profit for a vehicle purchase depends on the borrower's credit and the overall cost of the loan. Zero-percent financing is usually offered for a particular model and price with good to excellent credit required. In order to achieve zero-percent financing, the manufacturer of the new vehicle pays the cost of interest charges to the lending bank. The bank is usually a preferred new-car lender, or the manufacturer's bank, so some rate of discount for the manufacturer exists.

Zero-percent financing is offered in lieu of cash back, or rebates. Often, the rebate savings and the cost to buy down the rate from the bank are the same. To fully gauge the overall cost of a loan and how much it may cost the manufacturer to buy down the rate, use an auto loan calculator, such as the one offered by Edmunds.com. Input your vehicle's selling price along with a standard rate to determine the amount paid back over the loan term. It is likely that the optional rebate offers the same discount.

Dealers make the most profit when the manufacturer offers zero percent or rebates. Manufacturers reimburse dealerships for any rebates or rate incentives. Many customers choose the rebate or zero percent instead of negotiating vehicle pricing. If a customer does not negotiate with the dealer to reduce the car's selling price, the dealer makes full profit on the vehicle's sale. The same goes for rebate discounts. Zero-percent offers also increase business for dealerships.

Smaller dealers do not commonly offer zero-percent financing. The ones that do must have enough profit in a vehicle's price to cover the cost of buying down the rate. Check the value of the vehicle before you purchase it; prices are likely marked up. Buy-here, pay-here lots that offer zero-percent financing may make the most profit of all. Vehicles at this type of lot are cheaper, so the dealer likely requires that you provide half of the vehicle's price as a down payment. Because prices are not competitive at a buy-here, pay-here lot because of buyer credit issues, the dealer may make as much as 100-percent profit from its zero-percent offer. Buy-here, pay-here lots extend their own financing.

Laws Concerning Repossession of a Car

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When you are making car payments, it's important to not fall behind. When someone becomes delinquent on his auto loan, the creditor has many rights, depending on the contract and the state resided in, and one may be the right to repossess the car.

All states have different specific laws related to vehicle repossession so it's important to know your own state's regulations. A reliable reference for such laws is the state attorney general's office. (see reference 2)

While some states may require the creditor to give notice, many do not require any forewarning that an auto is to be repossessed. If your state allows it, and the terms are written in the contract, often a creditor doesn't have to go to court or provide any notice before taking back the car.

Typically, once a person defaults on an auto loan, the creditor has the right to repossess the car and is allowed onto personal property to do so, sometimes even coming into a garage to repossess the vehicle.

However, in repossessing the car, the creditor may not commit a "breach of the peace." What constitutes a breach of the peace varies by state, but may include verbal threats, physical force or coming into a closed garage without permission. Every state has different stipulations, so it's important to know the specifics of your state. (see reference 2)

Once a creditor has seized a car, it may be sold to recoup the debt or be kept by the creditor as credit toward the debt. The creditor must sell the car in a commercially reasonable manner if it is sold. That generally means that it must be sold for a price within fair market value.

Any personal property in the vehicle at the time of the repossession still belong to the owner, not the creditor. In some states the creditor must make an accounting of personal property found in the car, take reasonable means to keep those items safe, and provide a means for the items to be returned. If personal items are not returned or accounted for, a person may have cause for compensation. (see reference 2)

When someone's car is repossessed, he is liable for the deficiency or the difference between what was owed on the car contract and what the seller got for the repossessed car. Additionally, there may be fees for the repossession and any termination fees that the debtor may owe.

However, if the creditor is guilty of breaching the peace in repossessing the car, the debtor may have grounds to contest the deficiency judgment.

Also, before the sale of the repossessed car, the debtor may be allowed some means to regain possession of the car. This may be by paying back the full amount owed as well as costs associated with the repossession, or possibly by bidding on the car at auction. (see reference 2)

If the debtor was pursuing a bankruptcy in court, the repossession may or may not be allowed under the terms of the bankruptcy. An attorney should be consulted to determine what is allowed in the case. (see reference 2)

Problems When Buying a Car

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Buying a car can be an act of necessity or a symbol of freedom. Whatever your situation, buying a car is likely complicated by a number of factors that can all have very real impacts on how much you pay, how safe you are and whether you end up regretting your decision.

Cost is one of the biggest problems that buying a car involves. Other than the car's cost, you need to add in the cost of fuel, maintenance, registration and inspections. There's also the decision of whether to pay cash, finance or lease. A lease allows you to have a new car every few years for less than the price of buying, but you never build up equity, and the cost to buy your vehicle once the lease ends is usually more than it's worth. Financing means your cost will depend upon the size of your down payment, the price you negotiate and the interest rate a lender offers. Dealership promotions and manufacturer rebates all play into the car buying process and can serve as tools to get the best deal possible.

Selecting an appropriate car for your needs is another problem. Your budget may limit you to a certain type of car, such as a used car of a certain age. Even so, you'll need to select between styles such as trucks, SUVs, compact cars, sedans and sports cars. If you have a family, the car's safety rating is likely a top priority. Reliability ratings, the likelihood of theft and the presence of convenience features all play into your ultimate decision. If you can't find a car that meets your expectations, you can either wait or compromise in one or more areas, which means you need a sense of what is most important in a car.

With many alternative fuel vehicles on the market, both as new and used models, car buyers at all price points can take the environment into consideration. Choosing a car with a good environmental record complicates the decision-making process, but it can also mean lower fuel costs while you own the car and a higher resale value in the future. Even among cars with conventional engines, technologies such as displacement-on-demand and advanced aerodynamics give some vehicles a much higher efficiency rating than others in the same class. The Environmental Protection Agency and independent automotive publications list environmental records for buyers to use in their research.

Every state makes it a law for drivers to have some form of car insurance or financial protection. You may be able to purchase temporary insurance to drive home from the dealership, but part of the car buying process is getting an insurance package you can afford that offers adequate coverage. With a new vehicle, optional coverages such as collision and comprehensive are especially important, and may be required if you finance your car. Buying insurance at your state's minimum levels or with a high deductible will save you money, but might not cover you in full if you cause an accident. Compare rates from different companies and look into discounts that an insurance company offers to find the best coverage for the best price.

Can You Trade in a Vehicle Under Repo Status?

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When you get behind on your auto loan payments, it is only a matter of time until repossession becomes a very real possibility. If you are faced with this scenario, you may try to trade the car in at a dealership for another vehicle. In most cases, this option will not work and the car will be repossessed.

The primary reason that this will not usually work is because you still owe money on the car. When you try to trade in a car that you owe money on with a dealer, the dealer will have to pay off your loan for you to make the process work. The amount you still owe is then added to the amount that you borrow on the new vehicle. If you owe money, the dealer will have to contact your lender and will then find out that the car is in repo status.

When you trade in your old vehicle, unless you have enough money to pay cash, you will have to finance the new vehicle purchase. If you are in a situation where your current vehicle is about to be repossessed, you most likely do not have enough cash sitting around to pay for a new car. In this case, you will have to depend on the lender to still give you a loan for the car even after it finds out that you are in default on your current loan.

Your main hope in this scenario is that the dealer you are working with wants to work with you even though the repo is in process. If you can find a dealer that desperately wants to make a sale, it may be able to work out an arrangement with your auto lender to stop the repo. For example, if the auto dealer will pay off the loan for you, this could stop the repo and help you get another car. It may be difficult to get a dealer to do this for you, since the dealer will see that you have financial troubles.

The worst-case scenario in this process is that the dealer could alert the lender of your whereabouts. If you have successfully evaded the repo man up until this point, the lender will be looking for you. When the dealer calls the lender to inquire about the loan balance, the lender will know where you are. If the dealer cannot work out a deal on your behalf, then the repo man might come take your car on the spot.

Missouri Lemon Law on Used Car Purchases

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If you buy a defective used car in Missouri, you are probably out of luck. The Missouri lemon law, modeled after a federal law to protect consumers from defective goods sold under warranties, does not apply to used cars. Take extra precautions when buying a used car in the state to avoid being stuck with a lemon.

The Missouri New Vehicles Warranty Law, commonly called the lemon law, is frequently mistaken as blanket protection for all vehicle purchases. The state attorney general's office emphasizes on its Web site that the law does not apply to used cars. Instead, the law applies to all new vehicles sold or leased under warranty that are found to have irreparable defects. The law requires consumers to document all repair attempts in writing and to prove that the car has been in the repair shop four or more times with the same problem without resolution or that a problem covered by the warranty has caused the car to be out of service for 30 or more working days since delivery, according to the attorney general's office.

Dealers selling used cars are required by the Federal Trade Commission to display a buyer's guide in the car window clearly stating whether the car will be sold as is, with no warranty, or with a warranty. If the box next to "as is" is checked, you will be responsible for all repairs after you drive the car off the lot, regardless of whether the dealer made false claims to you about the condition of the car. Cars sold by private individuals do not have to display a buyer's guide and are generally sold as is, according to the Missouri attorney general's office.

The state lemon law won't protect you even if you buy a used car under warranty, but a warranty should ensure that you'll be compensated for some of the costs of repairs if the car is defective. The Missouri attorney general's office recommends getting the terms of the dealer's warranty in writing. Some dealers will only pay for specified repairs, while others will cover the car from bumper to bumper for a set period. Determine whether the car is still covered by the manufacturer's warranty. The lemon law ceases to be in effect as soon as the car changes hands, regardless of the warranty status, but the manufacturer's warranty remains in effect.

The federal lemon law, called the Magnuson-Moss Warranty Act, may cover some defective vehicles that aren't covered by Missouri law. Used-car owners who can't file claims under the state law can file claims under the federal one as long as the the problem emerged while the car was still under the original warranty.

Questions to Ask Before Buying a Used Car

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It is important to test both the seller and the used car prior to signing any documents or buying a car from someone or a dealership. Individuals interested in used vehicles should try to find out as much information about the vehicle and the seller as possible. Potential buyers should ask several questions prior to seeing the car; this will eliminate some cars without having to leave your home. The questions are relevant for personal sellers as well as dealerships.

When buying a used car, the first question buyers should ask the seller is, "Why are you selling the vehicle?" It is important to understand the intent of sale to get a feel for both the car and the seller. There are many answers to this question; some sellers may be bluntly honest and answer, "because it is a piece of junk," or "it's a gas guzzler." However, most sellers might try to hide negative information to get a sale, so watch for nervousness. Normal reasons to sell a car include the recent purchase of a new car or getting rid of an old car that is no longer needed.

Ask how many miles are on the car. The number of miles on the odometer will give a pretty good estimate of how much the car is worth. This piece of information will come in handy during the negotiation process. Check an online pricing tool, like the Kelley Blue Book or Edmunds website (see Resources), to get an estimate of value based on the year, make, model and mileage of the car. Also, check the odometer and test it out to be sure it is properly functioning.

No individuals should purchase a car without asking, "What is the vehicle's condition?" This valuable question should give insight as to what types of problems have affected the car. Ask specific follow-up questions regarding the car's structural and mechanical condition, as well as accident and repair history. Always inspect the vehicle to be sure the seller is being honest, and walk away from any sale that feels wrong or any seller that seems to be misleading you.

It is also important to find out where the car came from and number of previous owners. Ideally, a car that has only one previous owner is preferred. This question will also help get to the bottom of other key question that should be asked prior to purchasing a used vehicle. If the seller is not the original owner, this individual probably does not have the proper answers to other questions about the vehicle history. Buyers should also find out the date and place the seller purchased the car.

Finding out if the used car has been in previous accidents will give insight at potential issues down the road. Vehicles with an accident history are also worth less. Inspect the car to make sure the seller is being honest and truly knows the car's accident history. You can also run a vehicle report online with the car's VIN number. In any case of dishonesty, walk away from the sale.

Service records give insight into the type of sellers and car owners that have previously driven the car. An individual who is meticulous enough to keep good track of the vehicle service records will be meticulous enough to take good care of the vehicle. Ensure the car has been kept up in terms of all recommended service and maintenance.

Last but definitely not least, it is important to find out how much the seller is asking for the used vehicle. It never hurts to make a lower offer to try to negotiate a lower price. Walk away if the car is over your budget and the seller will not come down on the price. Also, ask to take it for a test drive, and ask if the seller is willing to let you take it to get inspected independently. It is a good sign if the seller agrees.

Why Is There a Down Payment When Leasing a Car?

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Lease advertisements usually call for a down payment in addition to taxes and fees. You do not have to put anything down toward a lease besides your first payment; however, your monthly payment will then increase. Most lease advertisements assume the cheapest payment. Consider adjusting your down payment amount, but be sure to watch your budget.

Some banks adjust the lease interest rate depending on the total amount purchased or paid. For example, your lease might warrant a 5 percent interest rate assuming that you do not exceed 50 percent of the vehicle's lease value. In this event, the rate may jump to 6.5 percent if you don't reach the correct threshold. While you don't have to provide the suggested down payment, your interest rate may change and increase your monthly payment.

Leases are complicated; residuals, rates and vehicle depreciation values are determined by the leasing bank and often change monthly. While you can attempt to figure the lease payments and adjustments on your own, asking a dealer to help you reach your targeted payment is beneficial. Dealers use a computerized system to figure out lease payments. You can also roll the down payment, taxes and fees into your lease. Work with the dealer if you want to adjust the down payment amount, the term or the mileage.

Unless you plan to provide the lease advertisement's down payment requirement, your lease payment may increase significantly. Every $1,000 that you take away from the advertised down payment requirement should reflect about a $30 difference in the monthly payment. For example, if you decide to roll in $3,000 that the lease originally called for as a down payment, you may see a $90 increase in monthly payment. Negotiate the price of the vehicle to help offset the amount of your down payment.

Putting down a down payment toward a lease is inadvisable. Leasing banks require that you carry a full-coverage insurance policy on the vehicle throughout the term of the lease. Because the vehicle belongs to the bank, you will not receive an insurance payoff if your car becomes a loss. Your leasing bank is the loss-payee listed on your insurance policy. Even if you pay your entire lease upfront, which may prove as much as 50 percent of the vehicle's value, you won't receive any of that money back if the car is declared a loss by your insurance company.

How Do Car Payments Work?

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Understanding how car payments work can prevent you from getting into debt over your head by taking on a bigger auto loan than you can afford. Your interest charges, down payment, the length of your loan term and the purchase price all affect how much you pay each month on an auto loan.

Your monthly car payment pays off your auto loan in two parts. A percentage of your payment goes toward the interest charge, which is the amount lenders charge borrowers to use their money to pay for cars or other things. The other part of your payment is applied to the principal, which is the amount of money you borrowed to pay for your vehicle. Borrowers usually pay car loans over 36, 48 or 60 months. The longer you take to repay your loan, the more it costs, because you pay more interest charges over a longer period.

The total amount of your monthly car payment generally remains the same, but your principal and interest payments fluctuate. Most of your payment goes toward interest charges when your loan is new. However, your principal also decreases with each payment, so the amount you pay in interest charges drops over time due to a lower loan balance. As a result, you pay more of the principal and less interest as your car loan ages.

The size of your down payment affects the overall cost of your loan. Some auto lenders dont require a down payment from people who have excellent credit ratings. However, paying down as much of the purchase price as possible and getting a loan to cover the remaining balance may prevent you from being upside-down in your auto loan. Borrowers are upside-down in a car loan when they owe more on their vehicle than its worth. Cars usually drop in value shortly after purchase, so a bigger down payment can prevent you from owing more than your vehicle is worth as its value drops.

A short-term loan of 36 to 48 months comes with higher monthly payments. However, paying off a loan as quickly as possible also can prevent upside-down loan problems. For example, your auto insurer will only pay you an amount equal to the value of your car if its totaled in a traffic accident. Thats less of a problem if your vehicle is mostly paid off at the time of the accident. However, a long-term loan could leave you upside-down in a loan if you have to continue to pay off a vehicle you can no longer use after an accident.

How to Refinance a Car After a Bankruptcy

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Refinancing a car after bankruptcy is a smart way to reduce expenditures and reach a more manageable budget. However, filing for bankruptcy adversely impacted your credit score, creating an issue when refinancing, because lenders use your credit score to calculate the risk they assume in working with you. To get the best deal, you must show your lender you can handle the financial responsibility of the new loan. Acquiring evidence of your ability to pay takes time.

Instructions

Find someone with decent-to-excellent credit willing to cosign for you. A cosigner obligates multiple parties to pay, which increases the odds the lender will receive what you owe. For this reason, lenders may work with you and a cosigner, even when your personal credit is less than stellar.

Do everything you can to improve your credit score. Be ruthless about paying all your bills on time for at least six months. Get your credit report from one of the three major credit bureaus (Experian, TransUnion and Equifax) and correct any discrepancies. Expect corrections to take up to two months as creditors and the credit bureaus work to verify report accuracy. Don't apply for refinancing until your score is at least 600, and don't expect zero percent financing. Most lenders will not offer those terms unless your score is 750 or above, and that is difficult to achieve with a bankruptcy on your record. A copy of your own credit score is a powerful advantage during refinancing because your lender will need to explain discrepancies if the credit score from the reporting agency is significantly different than the one you obtained.

Start a savings account. In addition to your credit score, auto lenders look at your assets in determining whether you can repay a loan. A little money in the bank helps you look more attractive to a lender, especially if you can show consistent deposits.

Have your cosigner also document income and get a credit report. This will help bolster your case.

Call your lender or new lenders you want to try. Ask whether you can refinance based on the dealer invoice value or trade-in value. Also ask the minimum credit score required for refinancing, the name of the lender's credit reporting agency and the percentage of the value the institution is willing to lend. Compare rates and fees.

Go with your cosigner to the lender who can offer you the best refinancing option. Verify the rates you were quoted are indeed the best you can get. It may help to provide documentation of the vehicle's current value, but the lender will care more about how much you still owe on your initial loan. Negotiate with the lending officer and apply for the new loan.

Thursday, May 31, 2012

New Camper Value

Internet Listings

Price Guides

Dealer Estimate

Tuesday, May 29, 2012

Financed Vehicles

Salvage Titles

Auto Wreckers

Auto Parts

Sunday, May 27, 2012

Solution

Considerations

Strategies

Alternative

Warning

Up-Front Costs

Wear and Tear

Mileage

Ending the Lease

Instructions

Friday, May 25, 2012

Instructions

Credit History

Good Or Bad Credit

Credit And Loan Terms

Other Factors

Wednesday, May 23, 2012

Primary Driver Basics

Financing Basics

Loan to Driver

Dealer or Third Party

Monday, May 21, 2012

Loan-to-Value Ratio

Monthly Payment Budget

Creating Vehicle Equity

Interest Rate Charges

Saturday, May 19, 2012

Calculating Debt

Income

Additional Income or Self-Employment

Solving Debt-to-Income Problems

Instructions

Friday, May 18, 2012

Re-establishing Credit

Higher Cost

Upside-Down Loan

Having Cash On Hand

Thursday, May 17, 2012

Instructions

Fiancing a Vehicle During Bankruptcy

Tuesday, May 15, 2012

Instructions

Monday, May 14, 2012

Complete the Optional Inspection

Paperwork

Clean and Repair the Vehicle

Default Notice

Fair Debt Collection Practices Act

Consumer Rights

Spot Credit

Considerations

Sunday, May 13, 2012

Instructions

Saturday, May 12, 2012

Sticker Price

Manufacturer Offers

Vehicle Information

Additional Pricing Considerations

Friday, May 11, 2012

What Lenders and Dealers Consider

Dealer Preference

Time and Proof of Rehabilitation

Bottom Line

Tuesday, May 8, 2012

Determine the Value of Your Vehicle

Determine Your Overage

Benefits of Trading in a Financed Vehicle

Drawbacks of Trading in a Financed Vehicle

Eligibility