Lessor vs. Lessee of a Vehicle

A vehicle lessor is a dealership or leasing company that leases its vehicles to individual lessees. State laws establish the contractual requirements that lessors must comply with when leasing their vehicles to lessees. Vehicle lessors must also comply with federal laws, including federal loan disclosure laws and the Federal Consumer Leasing Act. The Federal Trade Commission administers the federal consumer protection laws, while state regulatory agencies administer state laws. Consumer Leasing Act According to the federal Consumer Leasing...

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How Much Money Does a Dealer Make on Financing a Car Loan?

Dealers often make less profit in car sales because of the widespread availability of invoice pricing and incentive information, but they make up for some of this by getting money from things, such as financing, insurance and warranties, according to Cars.com writer Joe Wiesenfelder. The amount a dealer makes on car loans depends on various factors. Process Most dealers do not directly finance their customers' vehicles. They act as middlemen, shopping around with various banks and finance companies, communicating the results and handling...

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Financial Responsibility & Autos

Buying a car is one of the biggest investments most people will make in life. Financial responsibility with regard to cars includes a number of considerations. Much of your financial responsibility with car purchases centers on the actual purchase process and often associated financing, along with buying and maintaining insurance. Well-planned purchases can save you a lot of money and hassle with cars. Financing Basics For many people, home...

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How to Calculate the Car Payment with a Trade-In Vehicle

When you are purchasing a new car, you can greatly reduce the amount of your monthly payments by trading in another car. The amount you get for your trade-in vehicle depends on the value of that car. You can calculate the amount of your monthly car payments with a trade-in vehicle by making a few decisions about your loan length and what type of car you are purchasing. Instructions 1 Determine the amount your new car costs, including taxes...

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How to Determine the Payoff of a Car Loan

An auto loan is one of the biggest loans you will take out in your life. Your auto loan depends on the amount of money that you paid down on the car and your interest rate, and can cost you as much as several hundred dollars every month. Paying off an auto loan is often a big relief and means extra spending money with every paycheck. Only a few simple calculations are needed to figure out how much you need to pay off your auto loan ahead of time....

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How to Buy a Car at 17 Years of Age

Although many states allow you to obtain a driver's license at the age of 16, it may surprise you to learn that you might not be able to purchase a car legally by yourself until you reach 18 years of age. This is generally because a juvenile or minor cannot enter into a legal contract. Laws do vary from state to state, however, so you may find that with a consent form signed by your parents you can still purchase a car, or your parents may agree to purchase and let you pay for the car, but you will not have full ownership of it until you have another...

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Can Your Car Be Repossessed Because You Don't Have Insurance?

It is unlikely that your lender would repossess your vehicle if you aren't maintaining your insurance policy. However, repossession reasons differ by lender; if your contract states your vehicle will be repossessed for lack of insurance coverage, the bank will collect the vehicle. Further details about repossession and insurance requirements are outlined in your loan contract. Your Loan Contract Review your loan contract. Reasons for repossession are stated within your paperwork. Many lenders do require a full coverage policy on vehicles...

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Auto Refinancing Information

Auto refinancing can result in paying a better rate on a car loan. Lower rates can reduce your present auto loan payment and free up cash to use on other expenses. But before meeting with an auto lender to refinance your loan, understand how the process works and consider the pros to refinancing. Definition Auto refinancing is the process of completing an application for an entirely new auto loan, wherein the new loan pays off the original auto loan. You can refinance with your existing auto loan lender, or choose to refinance with a different...

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Low APR Vs. Cash

Consumers shopping for a new automobile may find a range of financing alternatives from which to choose. They may, of course, pay cash, but for many if not most the choice involves consideration of the annual percentage rate and a "cash back" incentive. Cash back is a popular enticement that automobile manufacturers and dealerships offer in order to encourage people to buy a new vehicle. While these offers may seem like---sometimes actually are---a good deal, potential car buyers should weigh other factors to determine if the cash-back...

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Can You Refinance a Vehicle Without a Co-Signer?

Refinancing essentially involves getting a new loan with different terms. It's possible to refinance an auto loan without a co-signer, even if your payments aren't up-to-date. However, it's important to determine if refinancing will improve your financial situation before you sign on to a new loan to avoid taking on more debt than you can afford. Affordability Some lenders will allow you to refinance your auto loan without a co-signer to lower your monthly car payment if the payment is no longer affordable for you. However, you must give...

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Will My Car Still Be Repossessed Even If I Make Payments?

It's unlikely that your lender will repossess your vehicle while you're making payments as agreed upon. Reasons for repossession are outlined in your bank contract, so read it over for details or contact your bank. If you're unable to make your total monthly payment, call your bank immediately. Regular Payments Read your contract over to review the amount due and your payment's due date. If you make your scheduled payment on time every month, you aren't defaulting on your contract. Your bank contract likely also states that you must maintain...

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What Is Needed to Refinance a Car?

The process for refinancing a car loan is similar to when you applied for your original car loan. Expect to provide your credit and vehicle information. Once your loan is approved, your loan provider may ask for additional information, such as proof of income or residency. Prepare yourself for the loan application process by having your information ready. Loan Pay Off Amount To determine the amount to apply for when refinancing, call your lender to obtain your car's payoff amount. Ask your lender to also provide you with your loan's per...

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What Happens When Car Is Repossessed & Does Not Sell for What You Owe?

When your vehicle's value exceeds your loan payoff amount, you can sell it to pay off your loan balance and avoided repossession. Unfortunately, distressed borrowers often owe more than their vehicle's loan balance. You must satisfy the remainder of your loan balance with your lender, as you promised in your loan contract. Understanding the Resale Process Once your lender has the vehicle back in its possession, expect a letter stating the amount you can pay to retrieve your vehicle and the date the lender intends to sell it if you don't...

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How to Remove an Ex-Spouse From a Car Title in Pennsylvania

Obtaining a divorce requires splitting assets obtained during marriage, such as a home or an automobile. In Pennsylvania, a court order is required if you are awarded a vehicle in a divorce and want to remove your ex-spouse from the title. Since the vehicle is already registered in Pennsylvania, the only fee required is the fee for issuing a new title. Instructions 1 Get the original Pennsylvania car title. Use the title to complete the form required to remove an ex-spouse's name from the title. Also, obtain a copy of the court order granting...

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Rules for Buying a Car

When you set out to buy a car, you need to have a plan in place that will help you get the best deal and the highest value from the transaction. There are rules for buying a car that every consumer should become familiar with and use during the purchasing process. The sales professionals and lenders all have rules that they follow, so you should even the playing field and have some rules of your own. Sell Your Old Car The temptation to use...

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Can I Transfer My Car Loan to My Son's Name?

Transferring an outstanding loan to another individual is not something most lenders are willing to do. There are, however, ways to pass on a loan to another person and no longer be legally responsible for payments. The Facts Any individual who plans to take over a loan must have an exemplary credit score for the lender to consider the transfer. It is not in the lender's best interests to hand over a loan to someone who may not make the payments....

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Can I Sell My Car Before I Finish Paying Off the Loan?

You can sell your car before you finish paying off your loan. However, if you owe more than the vehicle's sales price, you must pay your lender for amount still due on the loan to release the vehicle's lien. If you can sell your vehicle for more than its loan balance, you may keep the profit. Budgeting for the Sale Check your vehicle's value at Edmunds.com and the Kelley Blue Book website to determine a fair selling price for your car or the car's private sale value. Call your lender for your loan's exact payoff amount including its per-diem,...

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Arkansas Car Title & Repo Laws

In any state, a lender has a right to repossess your collateral if the lender has a valid loan agreement you signed and a perfected security interest in the collateral. This is no exception in Arkansas, where a lender can repossess your car if they have a car title with their lien on it. While lienholders have the right to repossess a car as soon as the account is delinquent, it is usually at least 60 days delinquent before a leinholder will repossess...

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How to Sell a Vehicle Before It Is Paid Off

You must pay off your car loan in full before you can sell your car to another person. If you can sell your vehicle for more than your loan payoff amount, you can keep the profit. If you sell the vehicle for less than you owe, expect to provide the remaining balance to your lender before you can transfer ownership. Lenders may differ slightly on the payoff process, so be sure to inquire about your lender's rules and process before selling your car. Instructions 1 Contact your auto loan provider to obtain your loan payoff amount. Ask for...

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California Laws for Leasing a Motor Vehicle

Each state can pass vehicle consumer protection laws to help consumers guard against deceptive and unfair commercial practices. In addition to the Federal Trade Commission's consumer protection laws, a state's consumer protection agencies and attorney general serve this purpose. In California, the state attorney general and the Department of Motor Vehicles regulates the state's vehicle lease transactions. Moscone Vehicle Leasing Act Section 2987 of the California Civil Code is the Moscone Vehicle Leasing Act. The act governs transactions...

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Are There Problems With Buying a Car in Another State Than Which You Live?

Whether you are buying a new or used automobile, occasionally that perfect car or deal is located in another state. You can usually buy it out-of-state and bring it home, however there are several factors to consider. The steps you must take will differ depending on your state, whether you are buying from a dealership or private party and whether you are financing or paying cash. You can have your bases covered, however, by considering a few things....

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What Are the Pros & Cons of Refinancing a Car Loan?

Refinancing your auto loan is essentially paying off your current auto loan and taking out a new loan. It might make sense for you to do this, but you should learn all the pros and cons first. Considerations If interest rates are down from when you purchased your car or if your credit score is better, you might want to refinance to get a better interest rate. You could save hundreds or thousands of dollars in interest charges, depending on...

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Can I Buy My Car Before the Lease Is Up?

You've fallen in love with the car you're leasing and want to buy it. Most lease contracts allow you to buy the car at the end of the lease or through an early buy-out. Before buying the car, consider its residual value. This is how much the car is worth to the lease company and most likely the amount you will pay to own the car. Residual Value When you enter into a lease, the lender estimates the car's worth at the end of the lease term....

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Closed End Car Leases Vs. Open End

The difference between a closed-end car lease and an open-end car lease comes down to who bears ultimate financial responsibility for the decline in value of the leased automobile. In a closed-end lease, the responsibility remains with the dealer. In an open-end lease, the person who leases the vehicle assumes the responsibility. Function In a typical auto lease, you sign a lease agreement and drive away in a new car. You drive the car for the length of the lease term, paying a monthly fee for the privilege of doing so. That fee is based...

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What Is an Average Car Loan?

The amount of the average car loan in the United States is affected by where borrowers live. The interest rates on loans and the down payments required for vehicle purchases also are impacted by consumers' credit scores. The overall cost of the average auto loan can vary significantly among banks and credit unions as well. National Average A quarterly analysis of trends in the auto industry by the TransUnion credit-reporting company shows...

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How to Depreciate a Used Vehicle

A vehicle loses 15 percent to 20 percent of its value every year. If you plan to drive a car until it no longer works, this doesn't pose a problem. If you plan to sell or trade the car sometime in the future, you need to calculate depreciation. Depreciation is the amount an asset decreases in value each year. For vehicles, depreciation begins the moment you take ownership and lasts until the end of the car's useful life. Instructions 1 Determine the useful life of the car, which is five years for a business vehicle and eight years for a...

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Car Financing Tricks

Buying a car can be a stressful experience, especially when you do not know if you are getting a good deal. While dealerships will employ a variety financing measures to put you in the car of your dreams, it is important to remember that they are in the sales business and working to turn a profit. It is helpful to know what to expect at the dealership to ensure you walk away feeling good about your purchase. Credit Always check your credit...

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Indirect Lending for Credit Unions

Credit union members are often fiercely loyal and prefer to do as much business as possible through these nonprofit financial institutions. This can be inconvenient at times, however, as credit unions are typically much smaller than rival for-profit banks. This may mean that credit unions have limited resources or less flexible hours, especially on weekends. Many credit unions participate in indirect lending in order to serve their members conveniently...

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Can You Privately Sell a Vehicle You Owe On?

Privately selling a car you're still making loan payments on without your lender's involvement is difficult to impossible. This is because you don't technically own your vehicle until you make that last loan payment and can treat the vehicle as your sole property. Involving your lender in the sale can help limit your liability on your existing loan and make transferring the car's title to the new owner much easier. Lender Approval Requirements...

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