Can I Get a Blue Book Value Using a VIN Number?

The "blue book value" of a used car is a reference to "Kelley Blue Book." Published since the 1920s, the "Kelley Blue Book" has long been the go-to source to determine the value of a used car. You can even use the VIN, or vehicle identification number, of a car to determine the Blue Book value. These numbers, which have been assigned to every individual car since 1980, were standardized to keep people from trying to sell a car as one make and model when, in actuality, it was another.

Locate the VIN Number

Locate the VIN number for the vehicle you're trying to appraise. This number is located on a number of different surfaces of the car, but the easiest place to look for it is stamped to metal tag fastened to the inside of the dashboard, right where the windshield meets the hood. The VIN is also located on the engine block and sometimes on the inside of the driver's side door. If you have any paperwork for the car, such as auto loan or insurance papers, these will also usually have the VIN.

Determine Make and Model

Use a free VIN service, such as Motoverse (see "Resources") to find the model and make of the car from the VIN. Note that this will not work for pre-1980 model cars, as that was before the VIN system was standardized throughout the world. Many auto manufacturers will also encode more specific information into the VIN, such as the engine type, any kind of safety features and where the car was manufactured.

Examine the Car

In order to accurately get a price from the Blue Book, you'll need to ascertain the condition of the car. The Blue Book rates cars on a scale ranging from poor, fair, good and excellent. The better the rating, the more the car is worth. One way you can do this is by checking the accident history of the vehicle. There are a number of online vendors that will tell you if the car has ever been in an accident by running a check on the VIN.

Determine the Car's Blue Book Value

Once you have the make and model number, you can plug it into the "Kelley Blue Book" site (see "Resources") to determine the Blue Book value of the car. If you were able to determine any other details about the car from the VIN, such as the engine type, plug these options into the Blue Book webform. This will help you get a more accurate value for your car.

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The Best Way to Buy a New Car

If you're in the market for a new car, then there are some things you can do to ensure that your buying experience is a good one. After all, you'll be driving your new car for several years; therefore you might as well invest the time to make certain that the car you buy is the one you really want.

What is the best way to buy a new car? That's easy--by following several important steps along the way. Please read on for some tips on how to make your next new car purchase a good one.

Determine What You Can Afford

What is your budget for a new car? How much money will you be putting down or will you be paying cash? If making payments, how much can you afford to pay out each month for your new car? Use an auto calculator (amortization rate calculator) to determine your exact costs.

Specify Your Needs

There are hundreds of make/model choices out there for you to consider when shopping for a new car. Sedan, coupes, wagons, roadsters, crossovers, minivans, SUVs and pickup trucks are just some of the passenger vehicles on the market. While logic may have you looking at one type of vehicle, your emotions may have you pining for something else.

Buy the car you want to suit your personal needs, taking into consideration your driving habits, gas mileage, insurance costs, parking, and other factors deemed important to you.

Narrow It Down

Once you determine what kind of vehicle you want, then narrow down your choices to three or four competing models. For example, if considering a full-size pickup truck, you'll quickly see that the Ford F-150, Chevy Silverado, GMC Sierra, Dodge Ram, Toyota Tundra and Nissan Titan occupy that market. Read reviews of each truck and test drive those which are of interest to you.

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Things to Do Before Buying a Car

The car you buy can have a major impact on your finances, the quality of your driving experience and your personal safety. Many car buyers end up overpaying for their vehicles or get cars that do not fulfill all of their needs. There are several steps you can take to help ensure you get as much as possible out of your car before committing to a purchase.

Get Pre-Approved for a Loan

Many car buyers have to borrow money to afford their vehicles. Car dealers often offer financing options, but the interest rates they offer may not be as low as rates you could get from third-party lenders. Before you go to a dealer to buy a car, seek approval for a loan from a credit union or bank. According to CNN, getting pre-approved will put you in a better position to negotiate with dealers and will likely result in owing less interest unless the car manufacturer backs special low-rate financing.

Decide What You Need out of Your Car

You should know all the features you want out of your car before going to the dealer and shopping for a car. For example, if you need to use the car for a long commute, you might benefit from buying a car that has high gas mileage. If you live in a region with harsh winters, you might prefer a car with four-wheel drive. When you know all the features you want ahead of time, it will allow you to zero in on a car that meets your needs more quickly.

Determine How Much You Can Afford

Prospective car buyers should figure out how much they are willing and able to spend on a car before entering into any sort of negotiations. If you already carry a variety of debts like student loans and a home mortgage, you should make certain that the cost of a new car will not be financially burdensome. For many drivers, buying cars used is more economically feasible than buying brand new cars. If you are going to a dealer to purchase a specific car, set a maximum price you are willing to pay for the vehicle and do not go over that price during negotiations.

Inspect and Test Drive the Car

It is imperative that you inspect and test drive a car before buying to make certain it meets your needs and that it is comfortable to drive. This is especially important when buying used cars as problems with cars may not be apparent without a close inspection and a test drive. You may benefit from bringing a friend or family member along for a test drive, and an inspection may help you to assess problems, performance and comfort.

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How Do I Take Possession of a Vehicle Someone Abandoned in My Driveway?

Finding an abandoned vehicle in your driveway can be a real nuisance, especially if you dont know whom the vehicle belongs to. Once the car has sat in your driveway long enough, you may wish to take possession. However, just because the car appears to have no known owner and is on your property, the proper legal channels must be followed before possession can occur. Each states has their own laws and regulations regarding abandoned vehicles. Contact your state's department of motor vehicles or police department to inquire about abandoned vehicle and title transfer laws.

Instructions

1

Write down the vehicle's license plate number or Vehicle Identification Number, also known as the VIN number. Most VINs can be found on a car's windshield or the inside of the driver's door. If the car is unlocked, locate the insurance or registration. The VIN should be printed on both documents.

2

Contact your state's department of motor vehicles to inquire about the owner of the abandoned vehicle if you don't know who it is. Supply the clerk with the license plate number or VIN.

3

Inquire with the DMV about car title transfer laws and lien holder regulations. If the owner of the abandoned vehicle agrees to sell or gift you the car, there may be specific-state required documentation that must be submitted to the DMV before the sale or gift can occur.

4

Contact the owner about taking possession of the vehicle. Ask whether the owner wants to sell the car to you or send you the title. If he wishes to do neither, call your local police department or towing company to have the vehicle removed. If the owner agrees to sell you the car, you must first inquire about any liens against the vehicle. In most states, the liens must be removed before a title transfer can occur. Liens can be removed by anyone who pays them off. Contact your local DMV for your state's laws.

5

Attend the police, city or tow company's auction where the car will be sold if the vehicle was towed from your property. In most states, the party towing the vehicle will contact the owner of the abandoned vehicle. If the owner does not respond, or simply gives up his rights to the vehicle, the towing party will auction the car. Ordinary citizens may bid on the car and other seized property. Check with the auctioning party about payment options. Most auctions require that you pay the full bid amount at the time you take possession.

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What Are the Consequences of Vehicle Repossession?

Not paying your automobile loan for several months will prompt your lender to repossess the car. Lenders do work with borrowers, and if unable to make a payment, they may renegotiate the terms of your agreement or allow you to skip a month. But if money problems continue and repossession becomes inevitable, the consequences of a repo can last for years.

Credit Report

Within months of repossessing the automobile, your lender will send a notation to the credit bureaus and include this entry on your credit file. Repossessions are serious, and this remark remains on your report for a duration of seven years. Any lender or creditor reviewing your credit report in the future will see this information, which makes it harder to acquire a new car loan. If you are approved for a new car loan, the lender will charge high finance fees because of your high-risk status.

Credit Score

A repossession on your credit report makes it difficult to get other types of credit. Mortgage companies, banks and credit card companies may hesitate to approve your request for financing due to a drop in your credit score. If applying for employment with a bank or other company in the finance industry, a low credit score and a past repossession can prevent you from getting the job. These types of employers and some insurance companies review credit histories before offering candidates a job or writing an insurance policy.

Unpaid Debt

Having a lender repossess your car doesn't end the ordeal. They'll sell the car at an auction to the highest bidder. If the auction sale price isn't enough to cover the entire car loan balance, lenders will come after you for the remaining balance. Deficiency judgments are common with foreclosures and car repossessions. Your auto lender may sue you for this money, and place a judgment on your credit report if you cannot pay.

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New Vs. Used Car Interest Rates

Interest is the price you pay to borrow money. Both new and used cars often cost too much for the average buyer to pay in a lump sum. Various sources provide the money and offer payback terms of anywhere from 24 to 72 months or longer, although CarsDirect warns that lengthy loans often leave you owing more than the vehicle is worth. Interest rates differ for new and used autos.

Comparison

New car interest rates are generally lower than the rates for used car loans, said Eric Evarts, a Cars.com writer. For example, DataTrac Corp. reported that the average 36-month new car loan from a bank was running nearly half a point lower than used car financing for the same term in January 2011. New cars sometimes qualify for promotional rates, which may run as low as zero percent. Evarts said that dealers do not run such specials for used cars.

Sources

Both new and used cars are financed through various sources, such as banks, credit unions and lenders found through the dealership. Credit unions are often the best source for low interest rates, said MSN Money columnist Liz Pulliam Weston. For example, credit union 48-month new car loan rates are about 1.5 percent lower than banks' rates, and used car financing is almost 2 percent cheaper. Dealerships tend to give the highest interest rates because they get wholesale quotes for loans, then mark up the money to make a profit for both new and used vehicle financing, Evart said.

Qualifications

Both new and used car interest rates are higher for buyers with past credit problems. Lenders offset some of their risk by charging more for the loan. You may have to accept more expensive financing if you have delinquencies, collection accounts, bankruptcy or other negatives on your credit reports, according to Edmunds.com in a story by Content Editor Warren Clarke. You can usually refinance your loan within a year or two at a more attractive rate if you rebuild good credit. Focus on on-time payments on the car loan and all your other bills, as the MyFICO credit scoring site identifies this as the most critical factor in restoring your score.

Considerations

Car research websites report on special new car financing deals, as well as other incentives like rebates and promotional dealer cash. Zero percent loans and other highly attractive deals usually require a very good credit score. You usually get an alternative incentive, like a rebate, if you do not qualify for the promotional finance rate.

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Can a Personal Auto Loan Be Tax Deductible?

The IRS eliminated the tax deduction provision for interest on most personal loans including auto loans. As with most any change in tax regulations, savvy lenders have figured out a way to get around that restriction, offering a loophole involving your most expensive asset: your home. Borrowing money should always be undertaken carefully, especially when you offer your home as collateral.

Home Equity Loan

If you take out a home equity loan, you can mortgage interest on your federal tax return. These loans are based on a percentage of the equity in your home, with banks limiting the amount of money you can borrow. What banks do not limit is what you do with that money, funds which can be used to make home improvements, repairs, consolidate debt, spend on a vacation or to buy a new car. You can use your home equity loan for one or more purposes.

Tax-Smart Loans

Some lending institutions offer home equity loans by a different name including so-called tax-smart loans. These kinds of loans are used for the purchase of a car and may help you avoid the usual time expended and closing costs paid out with a home equity loan. Under this lending arrangement, the bank knows that you borrowing money to purchase a car and will put a lien on your car and on your house. Compare the interest rate you pay for this kind of loan because it may be higher than the going rate for home equity loans.

Deductions

The IRS allows taxpayers who itemize their tax returns to deduct home mortgage interest on Schedule A. The lenders for your mortgage and for your home equity loan must send you separate Form 1098s, reflecting your total interest paid to them for the year. Add those amounts together and put that total on line 10. You will be adding home interest payments with your other deductions to tabulate your total itemized deductions. That total is reflected on line 29 of Schedule A and transferred to Form 1040, line 40, an amount which can decrease your tax obligation.

Warnings

Taking equity from your home can put your home at risk if you cannot meet payments. The first or primary mortgage and your home equity line or secondary mortgage means that there are two liens on your home. If you default on either loan, then your home can be foreclosed. If your home equity loan is written as a tax-smart loan, you could also lose your car. Contact a tax advisor to determine the best financing option for you.

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