What Do You Need for a Car Title Loan?

When you find yourself in a cash crunch, whether you need to make an urgent purchase or pay bills, you may be tempted to apply for a short-term loan. One type of short-term loan is a car title loan. Before you go forward, know what you need to apply and the conditions of this type of loan agreement. Definition A car title loan is an arrangement between a title lending company and a car owner. The lending company provides the borrower with cash in exchange for ownership of the car title until the loan is repaid. The title lending company...

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Can I Deduct the Interest Paid on Car Loan?

As is specifically stated in the IRS Tax Topic 505 discussion of "Interest Expense," interest paid on car loans for personal use, as opposed to business use, is not tax deductible. Car loan interest for personal autos is considered "personal interest," which is a category of nondeductible expense. Basics According to Cars Direct, tax deductible interest expenses include: "mortgage or home equity payments, student loan payments, business loan...

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What Are the Questions to Ask When Leasing a Car?

Before leasing a car, there are several key questions to ask dealers, which should be answered to your complete satisfaction. You obviously want to secure the best available leasing terms. By understanding car-leasing fundamentals, along with the various options at your disposal, you can negotiate the right deal---one that simultaneously complements your current financial situation and saves you money over the lease's lifetime. Negotiable Particulars Generally speaking, car dealers have only one negotiating card in their decks: vehicle...

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Can You Trade in a Vehicle Without a Signature From the Primary?

A loan's primary borrower, also known as a co-signer, is just as much of a vehicle's owner as the loan's secondary borrower, or the other person named on the auto loan. Both co-owners must sign the vehicle's title to release ownership to a dealership when trading in a vehicle. The Vehicle's Title Both your name and your co-owner's name are listed on your vehicle's title. A dealership requires that you provide a signed title at the time you trade in your car. Most dealers also require that your co-owner is present for signing. Some states...

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How to Calculate a Lease on a New Car

Leasing a car is a confusing process for many buyers. It is, however, possible to calculate the lease payment so that you can understand how much you are actually paying for the car and make an educated decision about whether leasing a car makes good financial sense. To calculate lease payments on a new car, you will need to get some basic information from the car dealer. Information Needed to Calculate a Lease You will need to find out from the dealer what the manufacturer's suggested retail price, MSRP, is of the vehicle. This figure...

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How to Sell a Car in North Carolina

If you live in North Carolina and you want to sell your car, there are several ways that you can go about it. You can sell the car to a dealer or a used car lot, you can trade it in while buying another car, or you can try selling it yourself. Selling the car to a dealer or trading it in is the quickest way to go, and the easiest, but that may result in your getting less for the car than it is worth. Selling the car on your own could be time-consuming....

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How to Buy a Car From a Deceased Person's Estate

Buying a car from a deceased person's estate is not much different for the purchaser than buying any used car. Most of the work falls to the estate's executor to ensure that the transfer is legal. In states such as North Dakota, you can be liable for sales taxes on vehicles you purchase from an estate. Your local tax assessor's office can tell you if you must pay sales tax on the purchase in your state. Inspect the Car A car can develop mechanical issues if it does not run for a period of time. Not only should you inspect the car but also...

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If You're Separated, How Do You Take Your Husband's Name Off the Car Loan & Title?

Most lenders do not allow co-owners to remove one another from an already-established car loan. Because of this, you cannot remove the co-owner's name from the title, either. You can call your bank to ask about its removal process, but it likely requires you to keep your husband on the loan and title until the loan is satisfied. How Your Loan Was Established Your current loan was based upon information initially obtained from both you and your husband's credit report. Both of your credit applications determined your approval term, interest...

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Car Buying Strategy

Buying a new car can be a stressful experience. By being prepared, you can experience less stress and not pay more than you have to for a car that fully meets your needs. Understand the best car buying strategy and the process will be much easier. Planning Before walking into a showroom, decide what your needs are. For example, if you plan on driving on frequent long mileage trips, gas mileage may be important to you. If you have a family...

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Car Buying Issues

Creating a budget before you shop for a car can save you thousands of dollars. Consider vehicle costs beyond the car's purchase price so you can comfortably afford your vehicle. Also avoid ownership issues by having your used vehicle inspected by a mechanic to avoid paying for repairs shortly after your purchase. Financing Rather than set out to purchase a vehicle and apply for financing afterward, obtain a preapproval before shopping. Doing so allows you to set your budget based upon your loan approval terms, such as interest rate, term...

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Who Am I Required to Pay If Car Dealer Sells a Loan to a Bank?

When you borrow money, you are required to make monthly payments to the company or individual that lended you the money. If a car dealer sells your loan to a bank, normally you should start making your monthly payments to that bank. However, in some circumstances, one entity can own a loan and another entity can accept your payments. Therefore, you should check with your dealer to find out where your payments should go. Dealerships Car dealerships often promote in-house financing. However, very few dealers directly finance car purchases....

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Questions to Ask When Buying a Car From a Private Owner

Buying a car from a private seller can result in landing a great car for a much better price than would be offered by a dealer. A private seller does not have overhead and payroll costs associated with dealerships and may simply be looking for a sale price that will pay off his current loan balance. Buying from a private seller can, however, be tricky. Asking the right questions can ensure that the buyer receives a deal that he can live with. Can I Have the VIN Number? Asking for the car's VIN number will allow the prospective buyer to...

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Will You Have to Pay It Off if an Insurance Company Totals Your Car & You Have a Warranty?

Your vehicle warranty has nothing to do with an insurance payoff, so expect to pay off the remainder of your loan if you do not have gap insurance or owe more than the vehicle's value. If you purchased an extended warranty, you might be able to cancel the contract and receive a credit toward your loan or money back. Loan Payoff If you have collision coverage on your vehicle, which most lenders require, your insurance company pays your vehicle's market value to your lender. If the insurance payout is more than your loan's payoff amount,...

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Can I Get a Car Loan After I Filed Bankrupcty?

Filing for bankruptcy is a financially traumatic event that will have a long-term effect on your ability to borrow money. A Chapter 7, or liquidation, bankruptcy stays on your credit report for 10 years, and even a Chapter 13 reorganization will remain in your credit history for seven years after you complete your court-ordered repayment plan. Whether you can get an auto loan after bankruptcy is up to your bankruptcy trustee and the lender, but your chances are better if you know what lenders look for. Trustee Approval The result of filing...

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How Can I Figure What My Auto Payments Will Be at a Certain Percentage?

The amount of your monthly auto loan payment depends on two major factors: the interest rate and the length of the car loan. The interest rate is based on prevailing market conditions and your credit history. The length of the car loan is generally anywhere from three years to seven years. Shorter loans have higher monthly payments but less total interest, while longer loans have lower monthly payments but cause you to pay more interest. Once you select your ideal loan term, you can calculate what your auto loan payment will be at a specific percentage...

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When Can a Car Be Legally Repossessed?

Consumers may take out an auto loan to pay for a car. One important element of a loan is the borrower's responsibility to repay it, usually by making monthly payments. Based upon the loan agreement, the lender has certain rights if you default on that loan, so it's wise to understand when a car can be legally repossessed. Significance Any time you fail to honor the terms of your loan agreement, the lender can legally repossesses the car. This occurs most often, however, when a borrower fails to make payments on a car loan. In this case,...

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Questions to Ask When Taking Over a Car Lease or a New Car Lease

If assuming someone else's lease, several questions can save you money at the end of the lease's term. Learn which question to ask before assuming someone else's lease so you don't find yourself paying more than you expected at the end of the term. How long is the Bumper-To-Bumper Warranty Period? Because you'll have to return the leased car in good condition with minimal wear-and-tear, you should make sure that the car remains under its factory bumper-to-bumper warranty during the lease. Many manufacturer's offer a 36,000 mile or three-year...

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What Can Happen if a Car Is Not Paid Off by the Mature Date of the Loan?

Depending on the reason why your loan isn't paid off by the end of the loan term or how many days have passed since your last payment, you might not suffer any repercussions or your lender might repossess your vehicle. Various situations can affect your loan payoff, such as late payments or a loan deferment or modification, which amends your original contract. Your Original Contract If your car loan isn't paid off by the end of the loan term, you might have to pay late fees. If you're only late by one payment, make your payment within the...

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Formula for Car Payments

Many buyers end up paying more for a car because they do not understand the concept of financing. A difference of 1 percentage point in the interest rate will change a car payment; you need to know how much. Extending payments over a longer term will lower the monthly payment but result in more money paid overall. Being Prepared Using a car payment formula to plug in the total borrowed, interest rate and number of payments helps you be prepared when negotiating the vehicle price with the dealer. Rather than relying on dealer financing,...

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Auto Refinancing Without Perfect Credit

Refinancing an auto loan to take advantage of lower interest rates can be a wise move. However, you can only take advantage of these lower interest rates if your credit score is good or at least above average. If you have a bad credit score, your chances of getting a better car loan than that which you currently have is low. Car Refinancing When you refinance a car loan, you take a new loan from a new lender to pay back the outstanding debt...

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How to Calculate Your Monthly Auto Loan and Insurance

If you're planning to buy and finance a car, prepare to make monthly payments for the next 36 to 72 months, depending on your chosen loan term. When you take on a new auto loan, remember that you also have to pay car insurance for the vehicle. So, estimate that amount as well and add the two figures together to get your total car-related expense each month. Instructions Calculate Auto Loan 1 Determine your monthly auto payments using the Cars.com auto loan calculator. Enter all details about the transaction, including the price, down payment,...

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How to Sell a Car to a Private Person

Selling a car privately, rather than to a dealer, can help you obtain more money for the vehicle. Buy you must invest time into preparing the car for sale, advertising it and dealing with potential buyers. Important considerations include the amount of your asking price and the minimum offer you will accept. With these two figures in mind, you can prepare to negotiate the sale of your car to a private person. Instructions 1 Clean the vehicle inside and out and perform any minor repairs, or those that you deem necessary to make the car salable....

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Depreciation of Cars and Vehicles

One of the biggest drawbacks of buying a new car is that it is subject to large amounts of depreciation. As soon as you drive your car home, it depreciates a bit from its original value. As a car owner, it is important for you to consider the effect of depreciation on your vehicle. Auto Depreciation While every car is a little different, the majority of vehicles depreciate rapidly in value. As a rule of thumb, you could figure that your car will depreciate 15 percent per year from the time you buy it. After a few years, the vehicle will...

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Car Buying Advice & Tips

Buying a car, whether old or new, is a substantial financial investment. You want to get the best deal you can when you purchase your vehicle, and you want to be sure the vehicle is going to be reliable. Armed with some knowledge, a few car-shopping tricks and by taking the time to shop around, you can increase your chance of coming away with a vehicle you can afford that will serve your needs for years to come. Know Your Credit Score Many car dealers will use a poor credit score as a way to come up with financing terms that are beyond...

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Are There Internet Cosigners to Help With a Car Loan?

It is highly unlikely you can find a co-signer using the Internet, as co-signing a car loan presents great financial risk. Your co-signer should be someone who trusts you and can make your car payments if you cannot. Consider the risks involved for a co-signer so you can decide whom to ask. Other purchase options may exist if you cannot find a co-signer. Co-Signer Liability A co-signer has the same payment and loan responsibilities as the person for which he co-signs. Payments must be made on time. Any late payments are reported to the...

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Is There a Legal Way to Get Out of an Upside Down Car Loan?

An "upside down car loan" is a term used to describe a vehicle loan that exceeds vehicle trade or sales value. You can get out of your upside down car loan legally, although your options may not prove favorable if you have to provide a down payment or cash out-of-pocket to do so. Vehicle Value Before exploring your options, determine the value of your vehicle. Your car may warrant more than you think. Use Edmunds.com and the Kelley Blue Book website to gauge your private sale and trade-in value. The NADA Guides website also offers trade...

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Can You Transfer an Auto Loan to Another Person?

People who sign their names on the dotted line of an auto loan must fulfill the terms of that loan until they pay off the vehicle unless they can find someone who is willing to purchase their vehicle. Even so, car owners may put themselves in a financial fix if they take shortcuts to transfer their loan obligations to another person. Titles Auto lenders hold the titles to borrowers' vehicles until they pay off their loans. Therefore, you...

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Why Not Buy a New Car?

Maybe you've just returned from a car show and, heady with excitement, you are more than ready to get yourself your favorite model. Because getting a new vehicle is on your mind, every television commercial or print ad you see is beckoning you to put yourself behind the wheel of a brand-spanking new car. The temptations are real; after all, you need a car to get though life. However, the reality is there are plenty of reasons why you shouldn't buy...

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I Have No Credit and I Want to Buy a Car

It takes credit to get credit, especially if you need to borrow a lot of money for a big purchase like a car. You may be able to piggyback on someone else's good credit rating for your auto financing. Otherwise, you can build your own credit rating to qualify for a vehicle loan on your own merits. Co-Signers Banks and finance companies usually let you use a co-signer if you have no credit history of your own. The co-signer needs a good enough credit history to qualify for the auto loan. That person is legally responsible for repayment if...

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