Why Do I Need a Lien Release to Sell a Car?

If you have a lien listed on the title to your automobile, then you do not fully own your vehicle; a bank is listed as a lien holder when it has partial ownership. Even if you paid off the loan, you must prove it by providing the lien release. If you cannot provide the release, your potential buyer faces risks for any money you owe on the vehicle. Lien Reporting Your title lists a bank as a lien holder on it. This means that a bank has financial interest in the vehicle and that you do not fully own it, unless you can provide a lien release...

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Comparison of Zero Percent & Cash Back in Auto Loans

Car buyers can be faced with improbable advertisements and enticing deals every day of the week. Though only a small portion of the population is in the hunt for a new car at any given time, terms such as "zero percent financing" and "cash back allowances" seep into the general consciousness, and consumers look for those deals when they go car shopping. The question is which of these terms--if either--really means anything to the average shopper....

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Will Financing a Car Lower My Credit Score?

Financing a new or used car usually requires a good credit score, according to the Lease Guide automotive website, although borrowers with some past problems can sometimes get high-interest loans. The vehicle loan itself affects a consumer's score once it is finalized. It has a mix of positive and negative influences depending on various factors. Definition Car financing means getting a loan to purchase a new or used vehicle. Cars are generally expensive, so consumers often borrow money instead of paying the full amount up front. Some people...

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How to Cancel a Down Payment Check on a Purchased Car

When purchasing a car, many car dealerships handle the arrangements for financing a vehicle on behalf of the customer. Often, a car dealership will allow the customer to take the car home before the financing is finalized. Because unexpected complications can occur, the customer may not be ultimately approved for a vehicle loan despite having made a down payment with a personal check. By the time the customer is alerted that she is not approved for vehicle financing, the customer has the option of contacting her financial institution and placing...

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The Depreciation of RVs

Recreational vehicles, or RVs, give their owners the opportunity to vacation in a wide variety of destinations, relatively inexpensively. Traveling in an RV allows you to bring your own living space with you, and sites at campgrounds or RV parks cost far less than comparable hotel rooms. But buying an RV means you'll have to deal with depreciation, which refers to the value an RV loses as it ages. Reasons RVs depreciate for many reasons, some of which they share with cars, which also depreciate at a generally high rate. Used RVs represent...

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The Pros & Cons of Leasing a Low Mileage Car

Low mileage leasing offers a lower lease payment. Leasing is based on expected depreciation, so if you choose to take a lower mileage option, the vehicle won't depreciate as fast. Before pursuing a low mileage lease, consider your driving habits, vehicle needs and the financial repercussions of going over your contracted mileage allowance. Lower Monthly Payment A lower monthly payment is the ultimate benefit of a low mileage lease. Leasing is based on the vehicle's depreciation, which is affected by the term and mileage you choose. For...

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How to Buy a Car With No Cosigner

First-time car buyers and individuals who have a lack of credit history will often hear the same message from financial institutions when trying to take out a loan: "A cosigner may help get you approved." While a cosigner will help you get approved, you may not have someone who's willing to cosign a loan and therefore promise to make the loan payments if you cannot. You can get around the need for a cosigner by dealing in cash, purchasing a car from a different dealer or building your credit. Instructions 1 Purchase the car with cash. Purchasing...

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Things to Check When Returning a Leased Car

After you return your vehicle to a dealership, the leasing bank takes the vehicle from the dealer. Once the bank receives the vehicle, it inspects the mileage, as well as checking for excessive wear-and-tear. You might avoid some lease-end fees by inspecting the vehicle yourself or allowing the leasing bank to provide a complimentary inspection. Check for Vehicle Damages Inspect your vehicle for damage. The cost of even minor vehicle damage is likely to exceed your wear-and-tear allowance. The wear-and-tear allowance differs by leasing...

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What Are the Benefits of an Auto Loan?

Laying out a large sum of cash to purchase a car outright can place a huge burden on your checking or savings account. An auto loan will give you the advantage of buying a vehicle with monthly payments you can afford. Auto loans also help build your credit rating, provided that you make the payments on time, and give you the opportunity to buy a better vehicle that may have been too expensive if you were to pay cash. Advantages Compared to Leasing...

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Car Buying Tutorial

Everyone needs reliable transportation, and this often involves trading in your older car for a newer model. Different factors determine whether you're able to buy a car. Lenders take different things into account, and knowing how the buying process works may help you qualify for a loan and buy the car you need. Instructions 1 Stay with the same employer for a minimum of 6 months. Retain at least 6 months of paycheck stubs to show to auto loan lenders. Being employed for at least 6 consecutive months indicates stability, and you're more...

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How to Figure Out the Interest on My Auto Loan

If you want to calculate the interest on your auto loan, there are a couple of methods you can use. First you need all of the variables involved such as the interest rate, term of the loan, monthly payment and the amount financed. When you are able to calculate your interest, you will be able to determine the total amount of the loan. With a lower rate of interest you will pay less in interest charges. If you have a shorter loan term you will pay less in finance charges and longer terms generate more interest charges. Instructions 1 Get...

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How Does Buy Here, Pay Here Financing Work?

When shopping for a car, you may come across a seller that promotes a "buy here, pay here" financing model. With this type of financing, you can usually qualify for a car loan even if you have bad credit. At the same time, this type of financing is typically not as attractive as regular financing if you have good credit. Buy Here Pay Here As the name suggests, this method involves financing the car from the same place that you buy it from. With this method, you go to the dealer and pick out a car that you want to buy. Then you fill out...

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How to Transfer a Lease on a Mercedes GLK 350

Unlike some leasing banks, Mercedes-Benz Financial Services (MBFS) allows you to completely transfer a lease; you do not need to stay on the contract to guarantee it. To transfer, your GLK 350 lease must be at least six months old and your account must be in good standing. Fees may exist for the lease transfer, payable by you or the person you transfer to. Also, your security deposit will not be returned to you; MBFS returns the lease security deposit to the lessee at the end of the term. Instructions 1 Call MBFS to ensure you lease is eligible...

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Is There Any Way Out If I Am Buried in My Car Loan?

A car loan with a sky-high interest rate or a balance higher than the car's value can bury a consumer's finances. The loan can put a strain on making timely payments on other bills, and a consumer could be just one missed paycheck away from a serious financial problem. Fortunately, there are several strategies you can employ to help pay down the loan or get out the debt altogether. Bankruptcy If your awful car loan is symptomatic of a greater financial catastrophe, a way out may be bankruptcy. Chapter 13 bankruptcy can allow you to restructure...

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How to Buy Out an Automobile Lease Option

If you are currently leasing a vehicle, and you realize your lease will mature soon, you are likely weighing your options. One option is to buy out the lease. This allows you to buy the car for its residual value or less so you can continue to drive it. Buying out a lease at maturity can be a confusing process, but it is one that can potentially get you a good deal on a car you are already accustomed to. Instructions 1 Determine the residual...

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How to Break an Auto Lease Because of the Death of a Lessee

Finance institutions generally don't care why a leaseholder may no longer be making his payments on an auto lease. They have a contract with him and that contract remains legally enforceable to some extent, even after his death. A deceased person's estate is responsible for paying obligations and bills. The estate can break the lease on behalf of the deceased but generally not without considerable cost. Instructions 1 Locate the contract or...

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The Advantages of Leasing vs. Buying a Car

Leasing a vehicle requires you to pay for a term specified in the leasing contract for which you plan to drive the vehicle, subjecting you to mileage and term restrictions. If financing, you own the car and pay for the total price of the vehicle. Learn the benefits of leasing compared with financing. Payment Leasing is usually cheaper than financing. The bank purchases the vehicle from the dealership and leases it to you for around half of...

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If I Have a Steady Income, But No Job, Can I Lease a Car?

Leasing a vehicle sometimes is better than buying a car because you can return the vehicle at the end of the lease period, typically have lower monthly payments and usually can get maintenance for free. However, as with regular auto loans, you may need a job to get a car lease, depending on where you go and what your credit score and debt-to-income ratio are like. What Leasing Companies Want Like other auto financing companies, leasing companies...

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How to Refinance Commercial Trucks

Refinancing commercial trucks can pose a unique and significant challenge to an owner. Unfortunately, during a down economy, it has become an all-too-common experience for many truck-owners. Loan rates and taxes are going to be more manageable, if the vehicle is not classified as a luxury item. But since most commercial trucks are also "work vehicles," you can often find incentives and benefits to help in refinancing. Another way to lighten your loan load is by changing your loan from an adjustable-rate loan to a fixed-rate loan. Fixed-rate loans...

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How to Negotiate With the Lender of a Totaled Vehicle

If your vehicle was worth less than you owed to your lender when it was declared a loss, you're responsible for the total balance due on the loan unless you have gap insurance. Gap insurance pays for the remaining loan balance when your insurance company does not. Otherwise, you can ask your lender to decrease your pay back amount, although some lenders will only compromise if you can pay the entire balance at once. Otherwise, negotiate a more affordable payment plan. Instructions 1 Review your purchase paperwork before calling your lender....

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Why Lease a Car Vs. Purchasing It?

You've had your eye on that car for a long time. You have studied it specs, meticulously researched the pros and cons and done everything to ensure it is the right car for you. Now it's time to walk in the dealership and talk to the salesman about buying it. But he throws something at you that you didn't think of -- you have the option of buying it outright or leasing it for a few years. You're leaning towards leasing it, but don't know if it's better...

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How Can I Refinance My Toyota?

Refinancing your Toyota vehicle can save you money if you are able to qualify for a lower interest rate. Banks and other third-party lenders typically offer lower interest rates than what Toyota dealers offer through their own financing program. Through an auto refinance loan, you might be able to either lower your monthly payment or possibly pay off your loan amount sooner. There are other benefits of an auto refinance, such as the ability to extend your payment terms, add or remove a co-signer and even skip a few payments. Instructions 1...

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How Does Repossession Affect My Credit Rating?

Falling behind on your car loan serves as a notice to the lender that you're in trouble financially. Most lenders will wait---either by law or by choice---before repossessing your vehicle. If you cannot begin paying on your loan, the lender will repossess your car. An auto repossession will have numerous negative effects on your credit report, and will prevent you from obtaining another auto loan for at least six months. When Repossessions Occur Most states stipulate that lenders must wait until a person is two months past due before attempting...

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Auto Loans for People With Little Credit History

Your credit score depends on several factors, and one of those factors is how long you have had credit. According to FICO, an organization that tracks credit scoring, at least 15 percent of your score depends on the length of your credit history. If you have a short credit history, though, you do have options for auto loans. Co-signer When you use a co-signer, the lender can use the co-signer's credit to make a decision on your loan. If you are unable to make your auto loan payments, the co-signer would be held accountable. This option...

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What Are Loan Terms for Used Cars?

Buying a used car over a new car can save you money -- the Edmunds websites states that new cars depreciate about 20 percent once driven off the dealer's lot. Used-car loans also come with an interest rate, which is the amount the bank charges for lending you money. Zero-percent interest rates are usually advertised for new-car loans, not used. Term Options Vehicle loans are available for a period of 24 months to 84 months. Obtaining a seven-year loan for a used car is uncommon, but if you are purchasing a high-priced item, at least $25,000...

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The Average Interest Rates on Auto Loans

According to the Federal Reserve, the average interest rate for a four-year car loan from a commercial bank was 5.87 percent in November 2010. At the big auto finance companies, that average interest rate was 4.63 percent. Borrowers typically financed about $27,000. Brief History of Auto Finance Rates at the auto finance companies fell considerably during the U.S. financial crisis in 2008 and 2009. In the fourth quarter of 2009, rates stood...

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What Are the Benefits of Used Car Leasing?

Leasing a vehicle instead of taking out an auto loan gives drivers the opportunity to drive a new car with less expensive payments. While most consumers associate leasing with new cars, used car leases are also available for those who would rather avoid leasing a brand-new car. Used car leasing offers several benefits that can make getting a different car a more pleasant experience. Total Lease Payments The total lease payments on a used...

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How to Turn in a Leased Vehicle Early

When signing a vehicle lease agreement, you may have every intention of fulfilling the contract and keeping the car until your lease agreement ends. However, life can take sudden turns, and you may find yourself unable to afford the vehicle, or perhaps your family expands and you need a larger automobile. Whatever the reason, there are techniques to help you get out of a car lease early. Instructions 1 Take care of the car. Returning the automobile in good condition helps you negotiate an early termination. Perform any scheduled maintenance...

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The Things to Remember When Leasing a Car

Car leasing has become as ubiquitous as fast food, with a barrage of newspaper, television and online ads proclaiming the low cost and advantages of signing on the dotted line. But leasing may not be more financially advantageous than buying, and consumers must take care to understand all key lease terms before closing the transaction. People often enter into leases to obtain a more expensive vehicle, but they must remain vigilant not to go over the allotted mileage, damage the vehicle or change their minds, as early terminations are typically...

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Is it Possible to Refinance a Car Loan?

You can refinance your car loan. Refinancing offers the opportunity to lower your interest rate and save money over the term of your loan, which lowers your monthly payment. Reasons for wanting to refinance vary, but if rates have dropped or you believe you can obtain a better rate, apply to a lender of your choice. Benefits If you took out a loan when rates were high or your credit did not warrant a low rate, you can take advantage of current offers by transferring your loan balance to another lender. To gauge the benefits of a possible...

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What Are Good Debt-to-Income Ratios for Auto Loans?

Auto loans are similar to home loans in several ways, especially when it comes to the application process. While auto lenders that arrange financing may be willing to accept worse credit than mortgage lenders, it will still closely examine the borrower's financial status. A key part of the application process is the debt-to-income ratio, which shows the lender the borrower's potential for repayment. Debt to Income The debt-to-income ratio shows all the money the borrower owes per month, compared to the income the borrower makes per month....

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What Happens If I Was Denied for a Car Loan?

When you submit an application for a car loan, your lender can approve or deny the application for a number of reasons ranging from your poor credit score to the condition of your car. Every lender has its own underwriting guidelines so you can shop around for a loan from another lender, but you should try and resolve the issues that caused the declination of your original application. Income Your lender may decline you car loan application if your debt-to-income level exceeds acceptable levels. Lenders calculate DTI by dividing your monthly...

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Indiana Auto Tax Lien Laws

Indiana sells liens to repossessed vehicles at auction. Investors bid on the liens and the highest bidder purchases the lien. However, the sale does not become final until the original owner of the vehicle surrenders the vehicle or one year has passed. You must get a tax deed in addition to a lien before you can take possession of the vehicle. Provide Lienholder Information If you have a lien outstanding on your vehicle, you cannot sell it without the lienholder's permission. When you go to the Indiana Department of Motor Vehicles to transfer...

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How to Lease a Car Without Disclosing Your Employer

There is a large difference between not having an employer and not having an income. People without employers can be contractors, entertainers, salespeople, consultants and retirees. Others may have earnings from interest or benefit payments. People with alternative sources of income often need to lease cars for business and personal use. Many lenders serve this demographic due to substantial demand and quality of borrower. Disclosing your employer...

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