Can I Trade My Car in During a Lease?

You can trade your leased vehicle to a dealer toward another purchase. At any time during your lease, you may purchase the car from your leasing bank. Using a dealer simplifies the process, as it pays the bank for the car's total purchase price. Consider overall savings or expenses of trading your lease to determine if the option is worthwhile.

Amount of Buyout and Trade Value

Call your bank or credit union to determine your vehicle's purchase price. The price is often similar to the amount stated as the buyout amount in your contract in addition to any payments due. You can gauge your trade-in value using Internet appraisal guides like those offered by Edmunds.com, the NADA Guides or Kelley Blue Book websites. Determine the gap between your buyout price and your trade-in value to decide if trading your vehicle is worthwhile. You may be able to decrease some of your negative equity with a down payment or dealer rebates.

Dealer Buyout

The dealership you trade with will pay your leasing bank for the total amount of your lease buyout even if you owe more than the car is worth. If you do owe excess money toward the purchase price, the additional balance transfers to your new car's purchase price. Once your trade-in and purchase paperwork are processed, the dealer will usually send a check to your leasing bank within 10 business days. Your dealer receives the vehicle's title once it has paid the leasing bank.

Negative Equity

Trading in a lease may result in a negative equity situation. Your vehicle's purchase price is determined by your bank at the beginning of your lease, which is based on the expected value of your vehicle depending on lease-end mileage and the term of your contract. For this reason, you may find yourself upside down in your lease, or owing more than the vehicle's purchase price. To avoid carrying over negative equity, you can offer a down payment or shop for a car that offers rebates or instant discounts offered from the car's manufacturer.

Other Options

If you find that your vehicle's value is not in line with your lease buyout amount, you may have other lease-end options. Consider transferring your lease to another person, known as lease assumption. You can advertise your lease transfer through classifieds, LeaseTrader.com or the SwapaLease website. Check with your leasing bank first to find out if fees apply. Once you transfer your lease, you can start a new lease or finance without having to worry about trade value or loan amount.

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Can I Put a Car Under My Name If Another Person Signed the Title?

Car ownership is based on whose name appears on the car title. Each state issues its own titles, so every time a car changes owners or changes states, the owner must obtain a new title. The process of titling a car varies depending on whether the car is new or used, but the two follow the same basic rules for ownership.

Used Car

The transfer of ownership section of a car title is where a buyer and seller write in their names, addresses, sale price and signatures. The title must be in the seller's name for the seller to be able to fill out this section. Likewise, the person who fills out the buyer portions of this section is the person in whose name the car will be titled. Therefore, if another person signed as the buyer on the car title, that person is the only one who can get a title in his name right now.

New Car

With a new car, the dealership usually takes care of the title paperwork. The person who signs the paperwork at the dealership and pays for the car is the person whose name will appear on the title. Therefore, if you are planning to title the car in your name, you should go to the dealership. If you are getting financing for the car, the loan will need to be in your name as well.

Transferring Title

If someone else signed the title, but the car is supposed to be in your name, that person will need to transfer the title to you. First, he will need to obtain a title in his name by going to the state department of motor vehicles, paying the title transfer fee and waiting for the title to arrive. At this point, the two of you can fill out the portion on that title to transfer ownership, with him as the seller and you as the borrower. Then you can take this to the department of motor vehicles to get a title in your name.

Considerations

Some states do not allow cars to be titled in the name of a minor. Therefore, the parent signs the title and obtains a new title in his name. When the minor reaches adulthood, the parent might want to transfer ownership to the child. In this case, the parent and child must follow the instructions to transfer the title as if they were two independent parties. To avoid the hassle and cost of a title transfer, check before buying a car to see if it can be titled in the minor's name right away.

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Does Your Credit Report Show How Much You Pay on a Car Loan?

As long as your auto loan provider reports to a major credit bureau, your credit report shows how much you pay for your car loan. Your credit report also shows how many payments you've made, the balance left on your loan, and how many times you've paid your loan late, if applicable.

Auto Loan Reporting

Under most circumstances, your car loan and payment history is reported to the three major credit bureaus. A buy-here-, pay-here lot may not report your loan payments to the credit bureaus. A buy-here, pay-here lot is not a regular auto loan provider. This type of dealership allows buyers to pay the dealer directly for a vehicle. To determine if your car loan and payments are reported to the credit bureaus, obtain a copy of your credit report.

Monthly Payment Reporting

The total amount of your monthly car payment is reported on your credit report. Some lenders may report to one or all three of the credit bureaus. The amount of your monthly auto loan payment in addition to other debts listed on your report is used to establish your debt-to-income ratio by other credit providers. If you apply for another loan or line of credit, potential lenders review the amount you pay out in debt each month and compare it to the amount of money you claim to make, which is usually established by proof of income, such as a pay stub. Do not lie about your monthly car payment amount.

Other Loan Information

Your credit reports also lists the total balance of your loan. Lenders can view the initial amount you borrowed and your current balance. This can also affect your chances for another line of credit. A new loan account with only two payments does not prove good credit. After time, consistent and on-time payments raise your credit score and establish a positive payment history. Any late payments are also reported on your credit history. Potential lenders can view the number of times you've been late and how late you were each time.

Considerations

If you plan to trade your financed vehicle into a dealer toward another purchase, your monthly payment for your current auto loan is considered as paid. Your car payment will not be considered when determining your debt-to-income ratio, as a dealer must pay off your current loan in order for you to trade in your car. If you have a cosigner for your current loan, this is also reported to the credit bureaus. If you cosigned for someone else, the debt is still listed on your credit report and the monthly payment amount is used to determine your debt-to-income information.

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Can an Auto Finance Company Garnish Wages in a Repossession?

If you're having trouble paying your bills, you might be forced to skip the car payment to your auto finance company. Your loan is secured by your vehicle, so once you are delinquent on a payment, the lender has a right to take it in an attempt to satisfy your account balance. In addition, the finance company can garnish your wages even after your car is repossessed and sold.

Repossession

Many states do not require you to be notified of an impending repossession ahead of time, but collection agents may contact you about the loan before you car is taken. Your car can be repossessed at any time, even if it's parked in your driveway, but the person repossessing your car cannot threaten you or break into your garage if the door is closed.

Deficiency Balance

The lender can sell your vehicle after a repossession to satisfy your remaining debt and any penalties or auction fees that have accumulated due to your default. In most states, you must be notified of when and where the car will be auctioned to give you an opportunity to buy it back. If it is sold for less than the amount that you owe, even if you buy it yourself, your account will have a deficiency balance that you must pay.

Judgment

If you don't settle the deficiency balance, the auto finance company can sue you if it still holds the lien on your vehicle title. If the loan has been sold to another company, then the name of the lawsuit will reflect the new lien holder. Once a judgment against you is entered in court, the lender has several options for collecting the rest of the money that you owe. The creditor can place a lien on your house, or your wages or bank accounts could be garnished.

Garnishment

The lender can present your employer with the judgment to garnish your wages for the deficiency balance until your debt has been paid. Federal law does not allow employers to garnish a total of more than 25 percent of your disposable income in any pay period, unless the garnishment is for child support, bankruptcy or unpaid taxes. Also, federal law prohibits your employer from terminating your employment for the sole reason that your wages are being garnished.

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Car Leases & Mileage Penalties

Car leases appeal to a lot of consumers because they come with lower monthly payments than buying, which means you can get into a nicer car for less money. Some leases end happily ever-after, but your car lease could turn into a nightmare fast if you run into mileage issues. All car leases limit the amount of miles you can put on the car, and if you go over that number, the cost of driving can go through the roof fast.

Car Leases and Mileage

Whenever you sign a car lease, part of the agreement will be a limit to the number of miles you can put on the car. Twelve thousand miles per year is a typical number, but deals do vary. To figure out how many miles you are allowed to put on your car, check your lease agreement for your annual mileage allotment. Multiply that number by the length of your lease to find out the maximum mileage for the lease. Your leasing company won't check the car each year. They will simply check your total mileage when you turn in the car at the end of the lease.

Going Over

The problems start for car leasees when they go over their mileage limits. For every mile you exceed your limit, your leasing company assesses a charge. These charges can be substantial and add up fast. Although charges vary between companies, anything from 10 cents to 20 cents per mile is common. Check your lease agreement to find out your excess mileage charge.

Avoiding Charges

If you inked the contract agreeing to the mileage limits and the penalties, then you are on the hook for honoring the deal. There are a few things you can do to mitigate a mileage disaster, however. Of course, reduce your driving as much as possible. You could consider a lease swap through a company like LeaseTrader.com (see Resources). You will need the okay of your leasing company, which will also have to approve the person taking over the lease. This will get you out of the lease and off the hook for your miles. Buying your car at the end of the lease is another option, though whether or not this is a good deal depends on a number of factors, including the depreciation of the car and the amount of money you put down.

If you elect to extend your lease, start a new lease on a new car or buy a new car with the dealer who holds your original lease, you may be able to negotiate away some or all of your mileage excess fees.

Should You Lease?

How many miles you drive has an enormous impact on whether leasing is right for you or not. If you have a long commute or travel regularly, then you are likely to go over the mileage limit and face significant fees at the end of your lease. If you think that the mileage will be an issue for you, try negotiating for extra miles or consider buying instead.

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How to Remove a Name From the Title of a Financed Vehicle in Florida

The title of a car is proof of ownership. More than one person can be listed on the title. If you wish to remove someone from a Florida title, whether that person is yourself or a joint owner, you will need to first obtain the title from the financial institution that granted you the car loan. After you receive the title, anyone who wishes to remove themselves from the title can do so with a quick signature and a check-in at the local tax collector's office.

Instructions

1

Satisfy the lien. When the car is used as collateral for a car loan, the lender owns the car and thus the title until you pay off the loan. Once you pay off the loan, the lender will send you the title. If you financed the car with an unsecured loan, you received the title when you bought the car.

2

Turn over the title so that the "Seller" and "Buyer" locations are visible.

3

Look at whether the word "And" or "Or" appears between the names on the title. Everyone who is listed must sign on the "Seller Signature" line if "And" appears between the names. If "Or" appears, your signature will suffice if you want to remove only yourself from the title. Everyone else who wishes to delete their name from the title must also sign.

4

Write down the odometer reading in the applicable box. Write "Gift" in the "Price" section.

5

Ask the new title holder to sign his name on the "Buyer Signature" line. If that is you, then you would sign your name.

6

Print out the Florida Title Application (see Resources). Whoever is to appear on the title must fill out the application.

7

Visit the Florida Highway Safety and Motor Vehicles office finder website (see Resources). Select your county. Visit the nearest tax collector's office. Submit the original title and title application.

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How to Trade In a Toyota Camry Hybrid for a Tahoe

Trading in your Toyota Camry Hybrid for a Tahoe can be complicated, especially if you havent planned the process out. Often the value of the Toyota Camry Hybrid trade-in gets lost in the negotiating process. However, a little research and knowledge can help you get the most for your trade-in and avoid getting lost in the car salesman double talk and juggled figures. And even if you buy a Tahoe Hyrbrid, the fuel efficiency is still subpar, so factor in loss of savings in gas when you decide how much you can afford.

Instructions

1

Analyze the selling price and fuel economy of the Chevy Tahoe Hybrid to determine whether this is an environmentally friendly trade. Decide on the options and features you want the car to have at this time, too.

2

Call your nearest Chevrolet dealer to find a dealer that stocks the Chevy Tahoe Hybrid, as not all dealerships carry this Hybrid SUV.

3

Visit the Kelly Blue Book website and look at the value of your Toyota Camry. Take your vehicle to a CarMax dealer for an appraisal. They offer a detailed inspection and written appraisal. This appraisal is usually higher than what a dealer will offer, but it gives you an idea of the value of your hybrid.

4

Get a copy of your credit report from the three credit reporting agencies, Experian, Equifax and TransUnion. You want all three to get a true analysis of your credit report. You need to know how you stand in the dealerships' eyes.

5

Locate other financing options through your bank, credit union or at an online financing website like Up 2 Drive, E Loan or Car Loan. This way you can compare the loan fees and interest rates to those offered by the dealership.

6

Spruce up the Toyota Camry Hybrid before visiting a participating Chevrolet dealership. Wash it inside and out. Get your maintenance documents to take with you to the dealership.

7

Visit two or three participating dealerships if possible. Express an interest in buying the Chevy Tahoe Hybrid. Tell the salesman exactly what you are looking for and how much you expect to pay. Tell him that you want to trade in your Toyota Camry Hybrid and want a fair trade in value for it, and have a written appraisal from CarMax. Know that the salesperson may feign disinterest in your trade-in, but that a trade-in is also a moneymaker for a dealership, one they dont want to lose. Understand that the dealership is looking at the entire deal and may be willing to give you a higher trade-in value but will try to make more profit in other areas of the deal like the financing, or aftermarket sales. This is why you need to know what your credit score is and have financing options in place before visiting the dealership. This way you can compare price, trade-in value and financing being offered.

8

Analyze the different aftermarket products being offered to you and decide on what you really need and what you dont. Study these before making a decision as they add to the overall price of the new Chevy Tahoe Hybrid.

9

Negotiate the total deal with the dealer. Know that if you expect an unrealistically high trade in value for the Camry the dealer will try to make the money back on the financing or other aftermarket product. Tell the dealer you will think about the offer and do the same at the other dealerships, if you can. However, take note that not all Chevrolet dealerships offer the Tahoe Hybrid, so there may not be much of a margin for the dealer to work with. Analyze the purchase and trade-in overnight before making a decision.

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How Do I Repossess a Vehicle That I Am the Cosigner On?

People who can't qualify for a car loan due to bad credit or no credit history may ask someone with a good credit history to co-sign the loan. Co-signing can be dangerous because the actions of another person can affect your credit history. If the person skips or misses a payment, your credit score can drop. If you co-signed a loan for someone, and she begins to default on the payments, you can take possession of the car as long as your name is on the title.

Instructions

1

Contact your Department of Motor Vehicles to see if you're able to acquire full ownership of the car and the procedure for your state. Ask questions regarding the car title. As co-owner of the car, you can possibly take back the car and have the other person's name removed. This can happen if your name is listed first on the car title.

2

Discuss options with the other owner. A repossession by the vehicle lender will hurt both your credit scores. Persuade the person to give up ownership to avoid a repossession on his credit record.

3

Contact the car lender. If you plan to take back the car and continue making the payments, speak with the auto lender and mention your plans to remove the other person's name from the car title and loan. The vehicle lender will need to approve and likely create new loan documentations for you to sign, as well as prepare paperwork for the other owner to sign.

4

Approach the other owner and have him sign the necessary documents provided by the auto lender to transfer ownership. Resubmit these documents to the lender after receiving the signature. Once you're the full owner of the vehicle, the DMV will send you a new car registration.

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What Is Auto Dealer Financing?

Auto dealer financing occurs when an automobile dealership arranges the financing for a vehicle you purchase. It offers convenience to the customer, as you do not have to go somewhere else to arrange the financing on your purchase. As with any business transaction, you must prepare yourself to get the best possible deal when financing a new vehicle.

Background

With auto dealer financing, you complete a credit application with the dealership, and it arranges for the financing. While it may look like the dealership sends the credit application to several banks to see which one will approve the loan at the best rates, that generally doesn't happen. In most cases, the dealership's finance manager already knows the criteria that the banks use to make a loan, and he knows from your credit and other information if you will be approved and at what terms.

Selling the Contract

The financing transaction that you sign for at the dealership is usually between you and the dealership. You sign a contract saying you will pay the dealer a certain amount per month over a certain length of time at a specified interest rate. This contract also says that the dealership can sell the contract to another party. And this is usually what the dealership does, sometimes days after you have taken delivery of the vehicle.

Discount and Buy Rates

The dealership receives wholesale interest rates from financial institutions. This is typically called a discount rate, and may be considerably lower than what you end up paying. The dealership may write your contract at a higher rate, or the buy rate, and the financial institution will usually buy the contract from the dealership, paying it a premium for the higher rate. Usually, this is a cash payment to the dealership.

Other Considerations

The key to successful vehicle financing is to know your credit rating, and what type of rate you would be offered on your own at a bank. If the dealership's rate comes in close to that, you are getting a fair deal. Also, if you have credit challenges, the dealership may have access to different lenders who may be more willing to provide financing for you.

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The Smart Buyer's Guide to Buying or Leasing a Car

Buying or leasing a vehicle is one of the larger investments you will make. Before you sign any kind of agreement, take some time to do research and become familiar with all of your options. Have all of your car buying or leasing details worked out before you get to the dealership so you get exactly what you want.

Rentals

Some people feel that a 5- or 10-minute test-drive is not enough to determine if they want to buy or lease a car. Prior to committing to a vehicle, rent several models you are interested in to allow you to get a real feel for the vehicle. You can work with a local car rental business to determine which days would be the cheapest to rent on and then arrange your rentals in advance, according to car buying expert Joanne Helperin on the Edmunds website. The investment in rental vehicles will be a good resource in helping you decide on the proper vehicle.

Leasing vs. Buying

Before deciding to lease or buy, you need to understand the differences between the two. Leasing is a contract for a predetermined period of time, usually 24 to 36 months, where you pay a monthly lease fee. When the lease period is up you can buy the vehicle or turn it in. Many leases have mileage limitations and do not allow you to drive the vehicle out of state. You will have to discuss the details of your lease with the dealership. Buying a car means purchasing it outright. The payments on a lease are traditionally lower than a purchase, but when you are done paying for a purchase contract, you own the vehicle. If you like the idea of changing vehicles every two or three years, leasing is a good option.

Shop Around

Auto dealerships sometimes offer financing specials that seem enticing. Always read the fine print on any dealership financing deal. If you do not understand the fine print, have a banker or lawyer read it for you. Shop your business around to banks and other lending institutions before settling on one. Get preapproved for your auto financing before you set out to buy and you can avoid the complicated language of the dealer financing completely.

Ask Questions

Have questions about the vehicle ready to ask the salesperson when you visit a dealership. You may know what kind of vehicle you want, but there are always things you need to ask about a specific auto before you buy it. Have a mechanic look the auto over, even if it is brand new, to make sure there are no major problems. Ask about the warranty on the vehicle and about any additional maintenance services the dealership may offer. Some dealerships offer car washes or oil changes to their customers. If you do not ask, it may not get offered to you.

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How to Pay Off a Car Loan Faster

Securing an auto loan lets people buy a vehicle by making monthly payments. Over the life of the loan, consumers pay hundreds--and even thousands--of dollars in financing costs. Paying off a car loan faster will allow you to save on financing costs and free up extra cash in the future (no car payments). Securing a lower interest rate, refinancing into a shorter loan term and amortizing your loan will help you accomplish this task.

Instructions

1

Secure a lower interest rate. Check out auto loan rates online. Search for a loan that doesnt have extra fees, such application fees and prepayment penalties (fees if you pay off the loan early).

2

Talk with your existing lender. Once youve found the lowest auto loan rate, ask if your lender can match it. Lenders dont want to lose your business. If youve made timely payments the lender may be willing to negotiate your loan terms.

3

Refinance into a shorter term to pay off your loan much quicker. For example, if your current term is 60 months, check out terms that are 48 months or shorter. The payment may be higher, but if you can secure a lower interest rate, it may offset the increase in payment.

4

Make extra payments each month, called loan amortization. For example, if your loan payment is $300 you might decide to pay $500 each month. When you make extra payments, 100 percent of the extra payments are applied toward paying down the loan principal. This will save you financing costs over the long term.

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How to Legally Rent a Vehicle to Someone

No longer do you have to let your vehicle sit in a parking spot when you don't need it. Instead, legally rent your vehicle to someone else with the help of a car sharing service. If you still have a loan on your vehicle, your lender probably won't object, according to information on the "Kiplinger" website. Car sharing services insure your vehicle against any damages that may occur while someone else rents it.

Instructions

1

Locate a car sharing service -- such as Relay Rides, Getarounds or Spride Share -- that allows you to legally rent your vehicle to other people.

2

Enroll your car in the sharing program you choose. Many car sharing services allow you to sign up online. Specify the make, model, year and mileage of your car. Also, list rental rates and availability for your car. Ask a representative of the car sharing service any questions you have.

3

Make an appointment to allow the car sharing service to install a kit in your vehicle to allow renters to unlock your car with their smartphone during their rental period.

4

Park your clean car in an area easily accessible to renters, such as on the street in front of your house or in a dedicated parking spot. Leave an extra set of keys in the console or glove compartment of the car for the renter to use once he enters the car through the car sharing service's technology.

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Can My Car Be Repossessed With No Notice?

Unfortunately, if you fail to pay for your car as stated in the terms of your loan contract, your vehicle can be repossessed at anytime. Other terms may also exist in your contract as reason for repossession, such as failing to carry a full coverage insurance policy. If you have defaulted on your loan, your lender is within its rights to take its car back.

Your Contract

Read your contract over completely to determine why your vehicle can be repossessed. Many contracts state a late payment as reason to take your car back, but most banks do not employ a repossession company so soon. Most banks would prefer to work with a borrower to make payments rather than repossess a car right away. Also, your contract may state other reasons for repossession, such as lack of insurance, although most banks will add on an expensive full coverage policy instead of taking your car. Call your lender if you have any questions.

Bank Contact

Your bank will likely try to contact you constantly before taking your car back. Instead of waiting for a repossession, call your lender as soon as you know you can't make your car payment. The bank may be able to offer you a deferment in payments, allowing a month or two before any more payments are due. Alternatively, your bank may offer to refinance your loan to extend your term, resulting in a lower monthly payment. Your bank does not have to contact you if it plans to take your car. Your contract further explains its terms for repossession.

Repossession Procedures

The company taking your vehicle does not have to contact you, either. They may speak with you if you catch them taking your car, but the repossession company works for and answers to the bank it is hired by. After all, until the car is paid off, it belongs to the bank as collateral for the loan extended to you. The repossession company can take the vehicle from your property, your place of employment or from any place you've left it, such as in a parking lot while shopping.

Your Personal Property

Even if your vehicle was taken without notice, you can get your property back from the repossession company. Once you determine who took your car, which you can do by calling the police or your lender, you can call to make an appointment to clean out your car. If you do catch the repossession company taking your car, the workers are likely to allow you to take your belongings out of the car before it is towed.

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How to Sell a Car Privately in South Carolina

Title transfers in South Carolina require very little action from you as the vehicle seller. While some states require notarized signatures and forms or DMV notification of a sale, the South Carolina DMV requires a properly signed title and bill of sale to complete the transaction. Before selling your car, make sure no liens exist in the lien holder section of the title or that you can provide the original lien release to the buyer, as South Carolina does not allow transfer of ownership while a lien is active.

Instructions

1

Sign your vehicle's title in the seller's section on the back of the title and fill out the odometer statement. Check the car's odometer before writing it in--it must be exact.

2

Give the buyer a lien release, if necessary. The title must be free and clear or liens, meaning none should be listed on the front of the title. If one does, and you have paid off your loan, provide the buyer with the official bank payoff statement--if you do not have it, get it from the bank listed on the title.

3

Get a bill of sale document from a South Carolina Department of Motor Vehicles (DMV) office. You cannot use a copy of the form, as South Carolina requires an official bill of sale that is available at any DMV office. Complete the bill of sale by providing the vehicle information where requested, and include the odometer reading, date, your license plate number, selling price and signature.

4

Give all paperwork to the buyer, but keep a copy of the bill of sale for your records. Remove your South Carolina plates from the car before the buyer leaves and call your insurance company as soon as possible to cancel or transfer your policy. Return the plates to a South Carolina DMV office if you do not plan to transfer them.

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How to Change a Vehicle During a Lease

Changing a vehicle during a lease is a common occurrence, as you may need to swap your current lease for another for a wide range of reasons. Whether you are simply tired of your current leased vehicle or are close to exceeding the maximum allowed mileage in the lease contract, you can change your leased vehicle by completing an early termination at a local dealership. Upon completing an early termination and paying any necessary penalties, you can get into a new lease ahead of schedule.

Instructions

1

Contact a dealership that sells the type of vehicle you are looking to return. Ask the dealership to get you the early termination amount for your current lease. In order for the dealership to get the right info, it needs your vehicle identification number and the current mileage on the vehicle.

2

Schedule an appointment to look at your ideal new car after you have an idea of your early termination amount. If you are looking to replace your current lease with another from the same manufacturer, you can take care of both things at the same dealership and with the same salesperson who you contacted in Step 1.

3

Request a lease quote on the vehicle you want to purchase. When working the quote, ask the dealership to include the early termination amount you got in Step 1. You cannot return your older leased vehicle to the finance company without paying the early termination amount.

4

Agree on a deal for your new vehicle. Verify with the dealership that the lease payments quoted include paying the early termination on your old lease.

5

Sign up for your new lease. Make sure the purchase order for your new vehicle includes a statement that guarantees the dealership will pay the early termination amount on the older lease you want to swap. Make sure that any promises about paying off your old lease are in writing, just in case the dealership fails to pay off the old lease in a timely manner and you face late fees assessed by the leasing company.

6

Return your old lease. If you are leasing a vehicle from a dealership that does not sell the same brand, schedule an appointment to return your vehicle to a dealership that sells the brand in question. Upon returning the vehicle to the dealership, an independent inspection will be ordered. If there is excess damage on your old lease, you may get an additional bill from the leasing company to cover the damage.

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Buying a 1999 Pontiac Grand Prix

The 1999 Pontiac Grand Prix is a four door-sedan with room for five people. The vehicles comes with a standard V6 engine and gets an average of 29 miles per gallon. As of January 2011, automotive.com lists an average retail used price of $4,582 and a resale value starting at $1,817. Purchasing a used 1999 Pontiac Grand Prix is no different from any other used vehicle. You can choose to buy from a used car lot or an individual seller.

Instructions

1

Gauge the value of a 1999 Pontiac Grand Prix in your local area with the NADA Guides and Kelley Blue Book websites (see Resources). With Kelley Blue Book, you can see the retail value and the private party value. Private party value is for if you are buying from an individual.

2

Check for recall and service bulletins on the National Highway Traffic Safety Administration and My Car Stats websites (see Resources). This lets you know of any potential problems the vehicle may have.

3

Browse used car ads in your local newspaper and online on sites such as eBay Motors, Auto Trader and your local Craigslist (see Resources). Also, visit any local used car lots in your area to see if they have any 1999 Grand Prix vehicles available. Contact any sellers of cars you want to test drive.

4

Agree on a price with the seller once you find the Grand Prix you want to buy. If you do not already have money for the purchase, apply for a used car loan at your local bank. Rates vary by lender and amount financed. Your income and employment information is needed to complete the application.

5

Pay the seller and sign the bill of sale document. The seller must sign the car title and give it to you to transfer the ownership. If you are in a state that requires a smog certificate, such as California, be sure to look at it before paying and signing the bill of sale to make sure the vehicle passed inspection.

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End of Car Lease Buy Options

A lease on a new car is your chance to drive a vehicle for several years and, at the end of the lease, decide whether to buy the car or walk away from the lease and start over. As you approach the end of your lease, it's important to consider all of your lease-end buying options so that you make the best decision based on your finances and the condition of your vehicle.

Cash Buyout

One of the simplest ways to buy a vehicle at the end of a lease is to pay the buyout price, which is noted in the original lease agreement you signed, and keep the car for yourself. Besides the predetermined buyout amount, you'll be liable for state and local sales tax on the buyout price, as well as an administrative fee. However, you won't pay if your vehicle is above the allotted mileage for the term of the lease, or for any excessive wear and tear.

Buy With Financing

Most auto leaseholders will allow you to buy your leased vehicle by financing the buyout price. This has most of the same advantages of a cash buyout, but you'll pay interest on the full price of the buyout, including taxes and fees. To reduce the cost of financing your buyout, you can make a down payment. If you made a security deposit with the leaseholder, you can apply it to your down payment, in addition to any savings you contribute yourself.

Third-Party Buyout

A third-party buyout is a more unusual option that select leaseholders allow. In this scenario, you make an arrangement with a third-party buyer who makes an offer for your leased vehicle. The buyer pays you, and you pay the leasing agency. This option removes the need for you to pay sales tax, since the third-party buyer pays the sales tax on the buyout. A third-party buyout requires permission from the leaseholder and a willing buyer who is patient enough to go through the buyout process with you.

Walking Away

Another option when it comes time for a lease buyout is to simply walk away from the lease and turn over the vehicle. If you've exceeded the allotted mileage or damaged the vehicle in any way, you can expect to pay an excessive mileage or wear-and-tear cost, which the leaseholder can deduct from your security deposit, if you made one. However, even with a minor penalty, turning in a lease is often the most cost-effective option. The buyout prices for most leases are set above what the depreciated value of the vehicle will be, which means it will cost less to turn in the vehicle and buy a similar used model at market value.

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About the Kelley Blue Book Value on Used Cars

You may be interested in buying a used car because you think new cars are overpriced. Yet the fair prices for used cars can be tough to sort out if you rely on a Kelley Blue Book guide to check car values. Kelley price guides are used throughout the auto industry to cite car values, but consumers need to dig a little deeper to determine reasonable purchase prices for used cars.

Dealer's Guide

There is more than one Kelley Blue Book price guide for used cars. Edmunds, an auto-information publisher, notes that auto dealers are likely to use the "Kelley Blue Book Auto Market Report --- Official Guide." Used-car shoppers should be on the lookout for that guide because it's the one dealers show shoppers to compare vehicle prices. An Edmunds article titled "What is the Kelley Blue Book Price?" says one problem is that shoppers are usually shown the retail price for a used car in the dealer's copy of the Kelley guide. Retail prices are typically much higher than what people are actually paying for used cars.

Retail Price

The retail prices shown in a salesperson's Kelley Blue Book are just estimates on dealers' prices. Edmunds notes that the Kelley guide says the prices listed in the book are only suggested retail prices and that the selling prices may vary substantially. Ultimately, a dealer may show you an inflated retail price in the Kelley guide to make his lower price on a used car look like a bargain.

Selling Price

You can put yourself in a better position to negotiate a fair price with a dealer if you estimate the selling price for a used car you're interested in buying before you go shopping. Several websites offer estimated car values online, which include the Edmunds True Market Values. According to Edmunds, its values are the estimated average selling prices for used cars that shoppers need to know to negotiate fair prices. The company's True Market Values online tool also allows users to enter their zip codes to get estimates on selling prices in their area.

Negotiating

A dealer may resist your efforts to negotiate a lower price on a used car by showing you the Kelley Blue Book values in his guide. You can bolster your bargaining position by telling the dealer that you know Kelley lists retail prices in the guide and not the actual selling prices. You should have a fair price in mind that you're willing to pay for a used car if you've done advance research on selling prices. You also should determine beforehand how far beyond that price you're willing to go to avoid letting a dealer talk you into a purchase that busts your budget.

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How Do I Calculate Car Loan Financing on My Calculator?

Unless you have enough money to pay for a car in full, you will need to get a car loan with monthly payments. Although a lender will tell you what the loan's monthly payments are before you sign the documents, you can calculate them yourself on a basic calculator. This helps you test different loan amounts, interest rates and loan terms to find the monthly payment that best fits your budget.

Instructions

1

Multiply the number of years in the loan term by 12 to find how many monthly payments the car loan will have. For example, if you are planning to get a five-year loan, multiply 5 times 12 to find you will have 60 monthly payments.

2

Divide the annual interest percentage for the car loan by 100 to express it as a decimal. Then divide the decimal rate by 12 to calculate the monthly interest rate. For example, convert an 8 percent rate to 0.08, and then divide it by 12 to get 0.00667 as the monthly interest rate.

3

Add 1 to the monthly interest rate. In this example, you get 1.00667.

4

Raise this number to the negative power of the number of monthly payments you figured out. For example, if you have 1.00667 in your calculator, press the "^" symbol and enter "-60" to raise it to the negative 60th power. In this case, the answer is 0.671.

5

Subtract the previous answer from 1. In the example, you have 1 minus 0.671, or 0.329.

6

Divide the monthly interest rate by the previous answer. For example, 0.00667 divided by 0.329 gives you 0.0203.

7

Multiply the previous answer by the total amount borrowed on the car loan. If you were going to borrow $15,000 for a car, multiply that by 0.0203 to find the monthly payment is $304.50.

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Steps to Sell a Used Car

When you start thinking about replacing your vehicle, you need to not only think about your new car but also plan how you are going to sell your used car. In general, you can get more money by selling your car to an individual than by selling it to a dealership or trading it in, but this process also requires some time and effort on your part.

Prepare the Vehicle

Make sure the car looks, sounds and drives its best. Wash and wax your car, clean items out of it, vacuum the interior and remove any stains it may have. Get the oil changed, add coolant so your air conditioner is at its best, and purchase new tires if yours are looking old and worn. If the car has mechanical issues, you may want to fix those as well rather than selling the car as it is and accepting a price cut for the problems.

Gather Paperwork

Collect the maintenance records for your vehicle during the time you have owned it and organize them by date. Buyers appreciate seeing how you have maintained the vehicle, even down to little items like your oil changes. Also consider ordering a vehicle history report from a reputable third-party bureau.

Set a Price

Use classified ads for similar used cars being sold in your area. Websites that specialize in pricing used cars and the recommendations of your mechanic all provide ideas for your asking price. Set a price about 5 percent higher than you reasonably expect to get to allow some wiggle room for the seller to offer something lower.

Advertise the Car

Put a sign in the car window. Also place online classifieds, print classifieds and utilize websites that specialize in listing used cars. Your ad should contain basic information about the car, including its make, model, year, color, mileage, special features and asking price. Including a photograph of the car with the ad can help buyers get a better idea of what the car is like before they contact you.

Meet With Buyers

Meet with potential buyers to show them the car. Pick a location where you feel safe, whether it is your home or a nearby shopping center or gas station. Tell buyers about the car, answer their questions and let them take it for a test drive. If you do not accompany them on the drive, get their driver's license number and phone number before letting them take the car.

Finish the Transaction

Obtain the money and sign over the title when you have found a buyer and agreed on a selling price. If you do not own the car outright, you may need to complete this transaction at the bank or credit union that holds the lien. Another option is to write up and sign a bill of sale and go with the buyer to the DMV to get a temporary operating permit until you pay off the loan and have the title mailed to the new owner.

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Financing for a Used Car for People With Bad Credit

When financing a used car, your credit rating makes a difference. An excellent credit rating is any number in excess of 750, good credit is between 660 and 749, fair credit is 620 to 659, and any rating below 620 is considered a poor credit rating. Obtaining financing with bad credit can be a challenge, but some companies will lend to people in this situation. If you have bad credit, be prepared to pay higher interest rates and make a large down payment.

Instructions

1

Contact the credit reporting agencies if you have experienced repossession or bankruptcy. If the repossession was part of a bankruptcy and an outstanding balance remains after the sale of the vehicle, pay the balance as soon as you can. If extenuating circumstances led to the bankruptcy or repossession, send a note to the credit reporting agencies (see Resources) explaining the reason for the repossession and ask that it be placed in your file.

If you have other open credit accounts, improve your credit rating by paying them on time. If possible, pay them off early. In about six months, your credit score will start to improve.

2

Limit yourself to two or three places when applying for pre-qualification. Making too many credit applications can make your credit rating worse. Pre-qualification lets you know in advance how much money will be required for a down payment and the dollar limit on the purchase price of the vehicle. Pre-qualification credit applications can be completed online.

3

Work with an auto loan broker to access loan companies that finance people with bad credit. Through their network, loan brokers are able to find the lowest interest rates and down payment options. Several companies promise to get you approved no matter how bad your credit is.

4

Try an auto dealer that offers in-house financing. In-house financing allows you to buy a used vehicle and make your payments directly to the dealer rather than an outside finance company or bank. Most dealers do not perform credit checks. As long as you make the payments on time, you don't have to worry about repossession.

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Car Leasing Versus Financing

Choosing whether to lease or buy a new vehicle can be a daunting decision as there are benefits to either approach. In order to make an educated decision regarding a new car purchase or lease, you must know the pros and cons of each approach and your own current financial position.

Significance

Buying a vehicle involves the use of financing to purchase the vehicle and payment is rendered to the finance company usually on a monthly basis. When the loan is paid off, you own the car and no longer have any obligation to the bank or financial institution. Leasing a vehicle is similar to renting it with an option to buy at the end of the lease period. Ownership does not come into play in a lease unless you opt to purchase the car for an agreed upon sum at the end of the lease.

Time Frame

One of the biggest reasons to lease is the short time involved. If you seem to only keep the same car for three or less years, a lease may be ideal for you as at the end of the period, you can just turn in your vehicle. If you are within the mileage limits and have kept the car in good shape, you just walk away. Most car loans last about five years and it is often more difficult to switch cars when purchasing as the price paid during the loan period is often substantially higher than a lease. Mileage is never an issue as your intention is to eventually own the car rather than renting it.

Function

Car leasing is intended to help consumer drive cars that would normally not be able to afford to buy. Since lease payments are lower than the cost of buying a vehicle, a consumer can get a higher-priced vehicle for the same payment amount. If he is not interested in owning a car, leasing can be a way of driving a more expensive vehicle. Purchasing a vehicle is for those who wish to keep it past the loan period and see the purchase as high-cost up front, but lower overall ownership cost.

Considerations

When leasing, you must consider the overall cost of ownership and how many miles you will drive during the life of the lease. Since you are essentially renting the vehicle, you must take care of it as if it is not your own. Normal wear and tear is fine, but any damage above and beyond what is defined as normal will be charged to you upon completion. The payments are lower than buying, but at the end of the period, you have nothing of value wherein a vehicle purchased has a used market value.

Warning

When leasing a vehicle, you must consider the amount of miles you will drive as there are substantial penalties for going over the limits as some leasing companies only allow 10,000 to 12,000 miles per year. Some open-ended leases also require that you purchase the vehicle after the lease period ends. If you want to turn it in at the end of the lease and only have the option to buy it, consider a closed-ended lease. If the interest rate you are offered on a car purchase, do not sign the financing papers as there are many options on finding better interest rates including credit unions and online lenders who would welcome your business and may be able to offer a better rate.

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How to Save for a Car Down Payment

Lack of cash for a down payment will not necessarily prevent an auto loan approval. However, a down payment on your next car purchase can help avoid an upside down loan situation (eventually owing more than the car's worth) and will lower your monthly payment. Edmunds.com recommends a 20 percent down payment. This is the equivalent of $4,000 on a $20,000 vehicle. Saving this amount can seem overwhelming. But with careful planning and sacrifice, you can acquire enough for a down payment on your next car.

Instructions

1

Research cars and pick a vehicle within your price range. Narrow your search, then visit dealerships to test drive cars. Decide on the maximum that you're willing to spend on a car, and plan to save 20 percent of this price. Use an online auto loan calculator to help you determine what you can afford (see the Resource section).

2

Review your monthly disposable income to see how much you can save. Once you have a down payment figure in mind, look at your budget to assess where your money goes. Calculate how much you have in disposable cash after paying essentials such as housing, utilities, transportation and food.

3

Save for a down payment faster by eliminating frivolous spending. Bring your own lunch to work instead of eating out with coworkers. Frequent thrift stores or discount stores to avoid paying full price for items. Get rid of your lawn care service and mow your own grass. Skip the salon and wash/style your own hair. Speed your efforts by selling personal items (unused appliances, electronics or furniture) or asking your boss about working longer hours to increase your income.

4

Deposit disposable income into a separate account each month. If you're aiming to save $4,000 for a down payment, and you have $500 in disposable income each month, it will take approximately eight months to reach your goal.

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How to Sell a Car in Virginia

Selling a used car is often a complicated procedure. Not only does the seller have to go through the trouble of finding a buyer -- which will generally involve listing the car, showing it to prospective buyers, and answering a slew of questions -- but, once he has found someone to purchase the car, he has to fill out the required paperwork. Fortunately, in the state of Virginia, the paperwork required to sell a car is fairly minimal. Those seeking to sell their vehicle need only a few basic pieces of paper.

Instructions

1

Fill out a bill of sale. While not legally required in the state of Virginia, it's generally a good idea when selling a car to make sure that both parties sign a bill of sale. The bill of sale should specify the car being sold -- including VIN, make, model, year, and odometer reading -- and should then be signed and dated by both parties, who should include their printed names and addresses. These forms are available from the Department of Motor Vehicles (DMV). Make a copy so each party can keep one for their records.

2

Sign over the title of the car. On section A of the title to the car, sign your name, and write the date and your address in the space designated for the seller. Below that, write the current odometer reading of the vehicle. Then, write the amount the car sold for in the space marked "Sales Price." After, have the buyer write his name, address and the date, and then sign it.

3

Remove your license plates. If you have recently purchased a car, you can transfer the plates to another vehicle; just be sure to let the DMV know. However, if you have six months or more on your registration, you can turn in the plate to the DMV for a prorated refund. You can do this by filling out the Application for Vehicle Registration Refund and sending it into the DMV.

4

Notify the DMV and your insurance company. After you have sold the car, you must contact the DMV and let the agency know that the car has been sold. Although you can do this in person, you can also alert the DMV by phone or online. Contact information for the DMV is in the Resources section. Also let your insurance company know that you have sold the car.

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How to Calculate Online Car Loans With a Bad Credit History

Many people need cars to get to and from work and school, regardless of their credit score. Being a savvy car buyer can help you save money by having an idea of how much your monthly payments will be based upon your potential interest rate, down payment and/or trade-in value of your vehicle. Fortunately, there are online resources where you can calculate possible car loans based upon your credit score and history.

Instructions

1

Research the type of car you're looking to purchase. Being approved for a car loan may have requirements such as a maximum number of mileage, year of the car and price. Know ahead of time what car you are interested in purchasing. You can go to sites like Edmunds.com and Autotrader.com to research prices of the vehicle you are interested in.

2

Determine the value of your trade-in or the down payment you will be paying, if any. Check Kelley Blue Book online (in the Resources section) to determine the value of your trade in or have an idea of how much you plan to put down. You can put a down payment of 10 percent to 30 percent down, though each bank will have its own requirements.

3

Locate an online auto loan calculator. Bankrate.com has calculators that range from mortgages to auto loans. They also provide information and resources on various banks and lenders in your area with up-to-date information on their current rates for comparison. On Bankrate.com, click on "auto loan lenders" and input your city and state to compare rates. From there you will be able to click on "calculator" to input specific information to determine your approximate monthly car note.

4

Know your credit score. A credit score of 680 or above is considered prime, and will allow you to get a lower interest rate. However a score of 680 or below is considered subprime, so expect to pay more in interest. You can obtain your credit score by going to Experian.com, Equifax.com and TransUnion.com.

5

Input an example interest rate based upon your credit score. If your credit score is subprime, expect to pay as little as 10 percent to 20 percent interest (sometimes more depending on the approving bank). Within your auto loan calculator you can put an example interest rate of 15 percent to 17 percent to get a median interest rate.

6

Determine how long you will like to have your car loan. You can have repayment terms as low as 24 months and as high as 60 months. Know ahead of time how soon you would like you pay your car off.

7

Click on "Calculate" and you will have a potential car note amount. You are welcome to change the numbers around as you see fit to ensure you are getting a loan amount that is comfortable for you.

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Can Lien Holders Repossess Your Vehicle?

When a vehicle owner uses a car to secure a loan, as is typical in a vehicle financing arrangement, the owner authorizes the lender to establish a lien on the vehicle and repossess the car in certain situations. If those situations arise, the lien holder need take only a few steps to legally repossess the vehicle.

Legality

According to the official website of the Scottsdale (Arizona) Police Department, any entity with a valid lien against a vehicle is considered a lien holder and may repossess a vehicle. The website goes on to explain that a lien holder may be any sort of licensed financial institution, including a bank, credit union or acceptance corporation. In addition, a car dealer that provides its own financing may hold a lien and repossession rights.

Requirements

Though repossession requirements vary from state to state and even city to city, the Scottsdale Police Department provides a list of basic requirements that a lien holder must meet to repossess a vehicle. First, the vehicle's title filed with the state division of motor vehicles, or DMV, must identify the party as a documented lien holder, and the lien must still be valid at the time of repossession; a lien for a loan that has since been repaid, for example, would not give the lien holder the right to repossess a vehicle. In addition, the lien holder must provide proof that the person repossessing the vehicle is both a licensed driver and an employee or agent of the lien holder. The person repossessing the vehicle must also have original, notarized documents providing a liability release for local law enforcement officers; this "hold harmless" document should accompany a notarized Affidavit of Repossession and indicate any powers of attorney necessary for the repossession agent. In the absence of these documents, the lien holder or the lien holder's agent must present a valid court order of repossession to legally repossess a vehicle.

Process

The repossession process typically begins with a few missed payments and several late payment warnings from the lien holder, according to the credit services website Fair Debt Collection. The letters typically escalate into telephone calls, and the lien holder may send a final notice indicating an intention to repossess the vehicle. The lien holder or agent may then conduct surveillance on the vehicle and its owner to determine the safest time to retrieve the vehicle, then either tow the vehicle or use a spare key to simply drive it to the repossession office. After repossession, the lien holder or agent sends information on how to reclaim the vehicle; if the owner does not respond or cannot repay the outstanding debt, the agent removes all personal belongings and sells the vehicle at auction.

Considerations

Once a lien holder has repossessed a vehicle, according to Fair Debt Collection, it typically allows only a short time for the owner to respond to notices. If the owner responds, the lien holder may require payment of outstanding debts plus towing charges, impound fees, storage costs, repossession surcharges and a host of other expenses. If the lien holder sells the car at auction and the resulting funds do not entirely pay the outstanding debt, the lien holder may hold the debtor responsible for any remaining balance.

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