How Long Does a Car Repossession Hurt Credit?

Credit is hurt by various negative actions. People who stop paying their bills or frequently send in late payments and those who have property seized because of defaults have trouble getting new loans and credit cards. These negative actions all show up on their credit reports. Car repossessions are an example of a harmful item. Definition Car loans are secured loans with a vehicle as collateral. The repayment term usually runs up to 60 months or sometimes longer. The Federal Trade Commission (FTC) explains that lenders write default terms...

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What Does "Auto Refinance" Mean?

To refinance an auto, you must apply to a different lender to transfer your loan balance. Your new loan provider pays off the previous loan balance and becomes the new lien holder. Reasons for pursuing an auto refinance vary, but most borrowers refinance to save money or to obtain a lower interest rate. Benefits of Refinancing You can lower your interest rate by refinancing your current loan and save money over the term of your loan. If interest rates drop, refinancing offers an opportunity to take advantage of lower rates. Or, if your...

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How to Quit a Claim on a Joint Purchase Automobile

Buying a car with another person results in a joint purchase. Both parties sign the car title and have ownership of the vehicle. But if situations change, and you want to remove your name from the car title and give up ownership, you can quit a claim and transfer complete ownership to the other person. Instructions 1 Talk to the other party about removing your name. Situations vary, and in some instances, you don't need permission from the other owner to take your name off the title. Review the title first, and if the title reads "and/or"...

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Can I Extend My Auto Lease if it Is About to End?

If you frequently lease vehicles, extending might save you thousands in fees. Your lease may not have an option to renew the contract, but you can usually negotiate one anyway. Ultimately, the value of the car at the end of the lease will probably be the deciding factor for whether or not you should renew the contract. Identification You can extend an auto lease if your contract contains a clause allowing you to renew. When your lease agreement does not have an option to renew, you might be able to negotiate for a renewal by asking the...

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How to Calculate Auto Financing

Calculating the financing for an auto can give shoppers a giant head start on the purchasing process. Often people are blown away by the initial sticker shock of a vehicle, but are overcome by an aggressive salesman promising to get the buyer into an affordable monthly payment. Sometimes this incurs hundreds or thousands of dollars paid over the life of a loan that could have been avoided by simple planning. Having the knowledge how to calculate--and...

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Can You Make a Down Payment on a Car When in a Debt Program?

Debt management programs are effective tools in helping people get out of debt, but they also restrict people from obtaining new credit. The rules about what you can apply for and when you can apply for them can be quite confusing. This is especially true if you're on a debt management program and you want to buy a new car. Debt Management Programs Signing up for a debt management program is both a blessing and a curse. The good part about these programs is that you get huge interest rate reductions, allowing you to pay down your debt in...

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How to Mathematically Calculate a Car Loan's Amortization Schedule

A typical car loan has a term of 48 to 60 monthly payments. The amortization of a level payment loan, like an auto loan, will have higher interest charges associated with the early payments and in the later payments more of the payment is principal to pay down the loan. A car loan will amortize at a set pace with each monthly payment. The math can be handled with a calculator and piece of paper. Instructions 1 Divide the annual interest rate...

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New Car Buying Tips for Women

Buying a new car can be intimidating for a woman because car shopping has traditionally been viewed as a man's job. Men generally know more about cars and when a woman shops with a man, the salesperson might pay more attention to the man. However, women can be just as successful at getting a good deal on a new car as men are. Research Cars Get an idea of what kind of car you want to purchase by researching cars before visiting a dealership. Ask your friends what cars they drive and what they like about them. Go online and look up suggested...

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Car Buying Tips for a VIN Number Check

Purchasing a car requires a substantial financial investment and making sure the vehicle is structurally sound and has a positive service history can save money. Cars and light trucks manufactured in 1981 or later have a 17-character number, or vehicle identification number (VIN), that can decode important information, according to CARFAX. There are several things to look for prior to purchasing a car that the VIN can provide. Services like CARFAX...

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How to Get Rid of a Car You're Making Payments On

Getting rid of a car you are making payments on can be tricky if you are "upside down" on the payments. Being upside down means you owe more than it is worth. If you want to save your credit score, you will have to pay the difference to the finance company. If your credit is already shot and you have not tried to repair it at the time you need to get rid of the car, you have more options. Instructions Getting What is Owed 1 Put the car up for sale. If you owe less than what the car is worth, when you sell the car, contact the finance company...

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Financing for a Car With Trade-in Options

Even if you owe money toward you current vehicle's loan account, you can still trade it toward another purchase. If you owe nothing at all toward a loan, you'll receive a price reduction for the value of your trade-in. A trade-in can affect your new car loan in several ways. Negative Equity A dealership must pay off your loan to take your car as a trade, so any negative equity is transferred to your new car's purchase price. For example, if you owe $12,000 on a vehicle worth $10,000, the dealer will pay off your loan but transfer the extra...

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How Does Refinancing a Car Affect Your Credit?

How Credit Lines Work Refinancing a car loan essentially adds and subtracts a new trade line from your credit report. Each time a loan is refinanced, one lender is paid in full and one claims a new lien on the car. Each credit line on your credit report is updated monthly to give the ratings agencies an idea as to how you are managing your debt load. One way refinancing a car can adversely affect your credit is if the lender does not fully pay off the previous account and then the old car loan drifts into default without your knowledge. ...

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How to Sell a Car While Still Making Payments on It

With careful planning, you can sell a car that you still are making payments on. However, many states do not allow transfer of ownership while a lien exists on the car's title. If you have loan, either a bank name is listed on the title or the bank keeps the title until the loan is satisfied (in some states). Also, buyers are weary of purchasing a car that can be repossessed for your non-payment, even if title transfers are allowed. Learn how to work with your lender and buyer to sell your car while still making payments on it. Instructions ...

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How to Transfer Auto Leasing

Leasing a car gives you the option of returning it to the dealership after a few years. But some people wish to terminate the lease early. Early termination can involve expensive penalties. However, transferring the lease to a new party is one way to end a lease term early. But before placing ads in the paper, know what's involved with auto lease transfers. Instructions 1 Get permission to transfer your existing lease to a new party. Some leasing companies do not openly advertise lease transfer options. Speak with your leasing company first...

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