Tips on Buying a Car for a College Student

Many college students don't have cars because they are busy studying and don't have a job, so they can't qualify for a car loan. Those who do buy a car need to take different social and financial conditions into account than someone who has completed school and is working full-time. Some students use cars that belong to their parents, or that were purchased for them by their parents. Buy Used A brand-new car is an indulgence that isn't appropriate...

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Can a Family Member Repo Your Car if You Owe Them Money?

"Repossession," or "repo," is a term used to describe a creditor taking back property from a debtor who has defaulted on a secured property loan. In general, this term is only applied to actual physical property, such as land, buildings, or vehicles, and a creditor can only repossess someone's property if he holds a lien on that particular piece of property. Under most circumstances, a personal loan given by a friend or family member does not entitle...

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What Is the Average Interest Rate for a Car After Bankruptcy?

When you apply for a car loan, a lender uses your credit report and credit score as main factors to determine the loan terms you receive. A bankruptcy on your credit report does significant damage. Anyone with a recent bankruptcy may have difficulty getting a loan. If you can get a loan, you will likely receive much higher interest rates than those who have not gone through bankruptcy. Credit Scores Your credit score will affect the interest...

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What Gap Insurance Covers on Leases

Gap insurance is purchased when you lease a vehicle. If your vehicle is determined a loss by your insurance company, whether by accident, damage or theft during your lease, you'd owe your bank for the vehicle's value instead of just the lease amount. Your insurance company would pay the bank for the vehicle's market value (instead of its retail value) and gap insurance would pay the remaining balance due. Your Bank's Loss To better understand the purpose of gap insurance, first understand the loss a leasing bank may sustain if your vehicle...

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Help for Victims of Car Theft

Victims of car theft are often left shocked and dismayed as well as confused as to what to do next. A careful and calm approach can lead to a satisfactory resolution -- possibly even a recovery of the vehicle. It is important to get in touch with all of the appropriate parties as soon as possible after the occurrence to resolve the situation. Statistics and General Information Officials estimate that there are more than a million cases of auto theft each year in the United States. These thefts cost consumers close to $8 billion per year....

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What Happens If I Don't Pay a Car Loan After a Total Loss?

As it states in your contract, you're responsible for paying off your vehicle's loan even if you no longer have the vehicle. Before you assume that you owe the total loan amount, determine what kind of coverage you have on your car --- insurance is usually mandatory for a vehicle loan. If a balance is due, you must pay it, or the lender can take you to court. Full-Coverage Insurance You should have a full-coverage policy in effect on your vehicle because you have a loan on it --- this is a bank requirement. Insurance companies report lapses...

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Can You Make an Interest Payment on Your Car Loans?

A portion of your car payment goes toward your loan's principal amount; the rest goes toward interest charges. Interest is figured on the loan's current balance, so the amount you pay toward interest changes as each monthly payment changes your balance. For this reason, you should aim to make payments toward the loan's principal amount to reduce your loan balance, not the interest. Interest Charges The amount of interest you pay with each car payment is highest when you first initiate your loan. To fully gauge overall interest and the amount...

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Can I Get a Car Loan With Credit Card Debt?

The amount of credit card debt you carry will affect your overall credit score, which can ultimately reduce your chances of securing a car loan. However, if your debt is manageable compared to your income, your credit will not suffer. Expert Insight Your credit score partly depends on the amount of debt you carry. It is wise to have a fair amount of credit available, but it is best to keep your limits low. The comparison of your available...

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The Best Auto Loan Financing Options

Numerous auto financing options are available to car buyers. But if looking for the best finance package on your new vehicle purchase, do your research and learn techniques that can help you secure the lowest finance rate. Paying a low finance rate on the car results in a lower car payment. Credit History Taking a look at your credit history first is one key way to get the best auto financing option. Various lenders are available to finance your car purchase, and some will accept your application with a low credit score. This doesn't guarantee...

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Insurance Regulations for Vehicles With a Lien

Insurance requirements differ by lender and state. Most states require a minimum liability policy for registered vehicles, but a lien holder often requires more coverage. Most lien holders require a full-coverage policy, increased policy limits and a lower deductible. Before you initiate a loan or change your current policy, determine your lien holder's requirements. Collision Coverage Expect to provide and maintain collision coverage on your vehicle until your loan is satisfied. A collision policy provides coverage for repairs to your...

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Do They Garnish Wages on Repossessed Cars?

When you take out an auto loan, your lender holds a lien against the vehicle until you pay off the loan in full. This lien gives your lender the legal right to seize your car if you don't make punctual loan payments. Depending on how much you owe and how much your vehicle is worth, you could face additional financial consequences after losing your car to repossession. How It Works Once it repossesses your car, your lender sells the car at auction or to a private buyer. The Federal Trade Commission notes that the lender does not have to...

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Can a Balloon Payment Be Negotiated at the End of a Car Lease?

Holders of car leases have two choices at the end of the lease term: turn in the car to the lease company or buy the car for the price listed in the lease contract, sometimes referred to as a balloon payment. If you want to keep the car, compare the purchase price listed in the contract with the current market value for similar cars. There may be some room for negotiation. Car Lease Residual With a car lease, your monthly payments pay for a portion of the car's value; the balance at the end of the lease is a residual value. To purchase...

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The Best Way to Refinance a Car Loan

Reducing your car payment might provide the extra money in savings you need and refinancing is the way to do it. Refinancing can change the term and the payment amount on your car loan, an important fact to keep in mind. The challenges are finding a reputable bank to refinance the loan and understanding the terms of the agreement. You will need to understand prepayment penalties, GAP insurance and other coverage features. Reivew Current Loan Documents Review current auto loan documents. Understand the prepayment penalties (a financial penalty...

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What Is Looked at to Get Approved for Car Financing?

Several factors are used in determining your eligibility for auto financing. They include such items as information contained in your credit report and your financial payment history. The type of vehicle you're purchasing can also contribute to your eligibility for financing. Before agreeing to any auto loan, it's important that you understand the terms of the agreement. Credit Score Your credit score is the largest single determining factor in deciding if a dealership or other lender is able to approve you for auto financing. Some dealerships...

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Understanding Vehicle Financing

Regardless of the make and model, every new vehicle purchased from a dealer is a major purchase, and many used vehicles' high resale values also push automotive prices out of the range of most people's price range. Instead of saving $30,000 for a new vehicle, automotive customers may turn to financing and make payments on their car over a set period of time. As with any other loan, credit must be approved and other conditions must be met. Customers...

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Can I Settle a Car Title Loan With a Lien Lender?

A car title loan can be used to purchase a car when a borrower is struggling to qualify for other types of loans or needs to purchase a car quickly. These title loans carry innate risks that borrowers should be wary of, usually connected with the length of the loan and the motives of the lender. Settling a car loan refers to using means other than normal payments to end the debt, especially when it becomes too difficult to pay. Borrowers may be able to settle car title loans in this way, but it is not likely. Car Title Loan A car title...

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How to Finance a Moped Today

A moped may be an economical way to get around, but financing a moped today may be a bit more involved than financing a car since mopeds are not sold in as many places as cars are. However, with some effort and research, you can get financed on a moped today, especially with a good credit rating. Instructions 1 Select a local moped dealership that sells a moped you are interested in financing. If you are not able to find any local moped dealerships,...

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When Can You Refinance Your Car?

Although the refinancing of home loans is relatively common, many borrowers also choose to refinance their car loans as well. The process of refinancing a car loan is very similar to the process used to refinance mortgages. A borrower will approach one or more lenders and ask whether they would be willing to replace his current loan with another one. While a loan can be refinanced immediately after it is taken out, refinancing an automobile loan only makes sense in certain situations. Refinancing Contracts When a person refinances his current...

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Is There Any Way to Get Out From Under an Upside Down Car Payment?

If you owe more on your vehicle than what it is worth, you're in a situation known as being "upside down" in your loan. This may be the result of the fact that vehicles depreciate in value as soon as they are driven off a dealer's lot or from rolling an old car loan into a new one. There are some possible remedies to the situation, although they don't always offer a great deal of relief. Pay Extra Each Month If you can afford to pay an extra...

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Will Gap Insurance Cover a Car That Has Been Repossessed?

Gap insurance offers no coverage for the money you owe on your car loan after repossession. The coverage offers financial protection for totaled vehicles when an insurance payoff does not cover a loan or lease amount. If your vehicle is repossessed, you must make arrangements to pay your remaining debt to avoid being sued by your lender. Gap Insurance Coverage You can purchase a gap insurance policy at the time you purchase your vehicle. Costs range from $100 in states that cap the cost and profit for providers, up to $600 or more in states...

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Car Financing for People With Credit Problems

Credit problems make it difficult to get any kind of financing, including loans for new or used car purchases. Getting loans with bad credit is possible, but it takes research and you usually end up with less-than-favorable terms. You may have to accept whatever financing you can find initially, and then get a new loan once you fix your credit. Definition Your credit problems affect your car loan prospects when your credit score is between 620 and 680, according to the LeaseGuide automotive website. Those numbers are below prime, so lenders...

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Texas Unemployment Benefits for the Self Employed

The Texas Unemployment Compensation Act is included the Texas Labor Code, and establishes the requirements for unemployment eligibility. Under the Act, the commission can deny benefits to an applicant who was responsible for the sale of his business before applying for unemployment benefits, and this may include self-employed sole-proprietors. General Rule Generally, the Texas Workforce Commission does not provide unemployment compensation...

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How to Buy a Car With Credit Problems

It's easier to buy a car with perfect or good credit. You'll obtain the best interest rate on the loan, which results in cheaper or manageable monthly payments. But even if you don't have the best credit rating, it's possible to get approved for a car loan. Shopping around for the best auto loan and taking other measures improve your odds of driving away with a new car. Instructions 1 Read your credit report. Assess credit damage by obtaining a free report from AnnualCreditreport.com. Order a copy of your credit score to learn your credit...

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Is There a Way to Terminate a BMW Lease Due to Disability?

People choose to lease a car for several reasons. One of these is the low monthly payment, which can make driving a luxury car like a BMW an affordable option. The only way a car-lease customer is able to take advantage of low monthly payments is if he fulfills the terms of the lease as agreed upon when signing the paperwork. Sometimes circumstances develop, causing some to need to terminate their leases. When this happens, the lease customer needs...

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The Advantages of Buying a Hybrid Car

A hybrid car is one that runs on a combination of electric powered batteries and gas. There are also fully-electric cars that can run for a period of time before needing recharging. Many car manufacturers offer hybrid vehicles including Toyota, Chevrolet, Nissan and Ford, giving consumers a variety of options to choose from. There are many advantages to owning a hybrid car that can make the purchase more enticing. Gas Mileage One of the more attractive factors of a hybrid car is the miles per gallon (MPG) that the car gets. For example,...

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What Happens When an Auto Loan Matures?

When you purchase a vehicle, your loan contract lists the term of the loan and the payment information. A loan officer may also give you an amortization schedule which shows the breakdown of each payment into principal and interest. When your auto loan matures, your last payment should bring the loan balance to zero, with no money owed. Lien Release and Title When you finance a vehicle, your lender places a lien on it as a first secured party. If you default on payments, the bank has a legal right to repossess a vehicle and sell it to pay...

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Can I Use My Own Leasing Agent to Lease a Car From a Dealership?

Leasing a vehicle is different from leasing an apartment. If you employ a leasing company to handle your properties or worked with one to handle real estate matters, your agent does not put forth any money to complete a home or rental contract. Leasing a car requires payment of a vehicle's total cost, so you'll have to use an auto leasing bank to take on the financial responsibility and risk. How Leasing Works When you lease a vehicle, you're...

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What Happens if You Damage a Leased Vehicle?

When you lease a vehicle, you are essentially borrowing the car from a financial institution. If you damage the vehicle while it is in your possession, you will be held accountable for the wear and tear. Review your lease contract before returning the vehicle to determine what type of condition the car is expected to be in upon the end of the lease terms. Significance Before the end of your vehicle lease, the lessor sets up an inspection...

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Reasons Not to Lease a Car

Leasing a vehicle has been a popular alternative to making a purchase for some time, but it may not be the most cost effective method of acquiring your next car or truck. Compare costs, including acquisition, insurance and maintenance over the entire period you will have the car. This is not always easy because the terminology of leasing can be confusing. Leasing versus Buying When you lease a car, you are financing that portion of the...

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How to Buy a Repo VW

The best place to get a repossessed -- or repo -- car is at an auction. However, car auctions are not usually not advertised. If you are looking for a repossessed VW, you will need to do some additional work to find potential auction facilities that may have the specific VW you're looking for. You will need to examine various sources, such as the bank and local car dealerships. With some persistence, you purchase a repo VW of your choice at a good discount. Instructions 1 Go online to check the resale value and performance reviews of all...

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How to Lease a Car in Los Angeles

Instead of buying or getting a loan for a new car, you can lease a new car to drive around Southern California. With the high cost of living in Los Angeles, leasing a car can be a good option; the monthly lease payment is usually lower than a car loan payment. Leasing a car in Los Angeles is no different than leasing a car in any other city in the United States. You do need to have top tier credit to qualify for the lease, which is generally an auto FICO score above 700. Instructions 1 Look in the "Los Angeles Times" for car dealer ads for...

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How Can a Retired Person Buy a Car?

Many people who are retired like the independence driving brings. However, many retired people may have strict budgets, as they are relying on pensions, retirement accounts, savings or government benefits. However, these people have many options when it comes to buying a car. Retirement Conditions The kind of car that a retired person should buy depends on several factors, particularly financial situation. A retired person with a healthy income and few expenses has a far wider selection that a person on a tight budget with significant medical...

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The Average Salary of Car Haulers

A car hauler's job is sometimes risky and unpredictable. In addition to his own vehicle, he must also take responsibility for others. If you take the time to learn the job description and average salaries of drivers in this position you then have a point of reference when applying for towing jobs in the future. This position is included in the heavy trucking industry, according to the United States Bureau of Labor Statistics classification system. Job Description A car hauler is a truck driver who must move vehicles from one location to...

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First-Time Car Loans With No Credit History

It's tough to get credit, especially when you don't already have credit established. Automobile loans are secured, so even if you have no credit history, you may have a better chance of getting a car loan than an unsecured personal loan. There are strategies you can employ to help you get that first-time auto loan and not have to pay more for it. Building a Credit History Start building a healthy credit history by paying all your bills on...

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New Car Buyer Financing Guide

According to "Where to Get the Money," a 2005 Bankrate.com article, about 70 percent of new car purchases involve some type of financing. If you are in a position where you need to finance the purchase of a new car, be prepared so the lending company does not take advantage of you. New Car Financing One of the advantages of shopping for a new car is that the interest rate on your loan should be lower than rates for used cars, according to Bankrate.com. When you are ready to shop for a car, spend some time shopping for the financing first....

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Is It Worth It to Refinance a Car Loan?

When you cannot afford your car payment, one option that you may explore is the possibility of refinancing your car loan. Refinancing your car loan may work to your advantage or it may not help much, depending on your individual situation. Before making the decision, you have to look at several factors. How the Process Works Refinancing an auto loan is a step that many people never consider, but it can help them save money. With this process, you take out a loan from a new auto lender. Then you use the money that you receive from the new...

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How to Finance a Car With a Bad Credit Rating

Financing a car with bad credit may not be as difficult as you think. The website Bank Rate says banks and credit unions often approve auto loans to people with poor credit, partly because cars are easy to repossess, providing the lender with collateral for the loan. That means you could qualify for an automotive loan even if your credit score is below 620, which is the cutoff for "good" credit, according to Bank Rate. Instructions 1 Obtain...

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The Average Auto Depreciation

Unlike investments, such as real estate, mutual funds or savings bonds, the purchase of a vehicle typically does not result in a long-term financial gain. Through a process known as depreciation, your vehicle loses its value over time. Depreciation occurs whether you drive the vehicle frequently or leave it parked in a garage for months at a time. Immediate Impact When you purchase a vehicle, it begins to depreciate as soon as you drive it...

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