What Happens When You Don't Pay Your Car Payment?

If you don't pay your car payment, your creditor might repossess your car, in addition to adding late fees and interest to the outstanding amount on your loan. Contact your creditor before you miss a payment, to discuss the situation and options. Repossession Most state laws allow your creditor to seize your vehicle, even on private property, without notice if the auto loan is in default. Your contract should state the determining factors...

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Does It Adversely Affect Your Credit Score if You Refinance Your Car?

It's tough to outrun your credit score. Any time you attempt to finance a home, rent an apartment, purchase a car, apply for a student loan or fill out an application for auto insurance, someone is likely to run a credit check. A number of variables impact your credit, which may cause you to wonder if attempting to refinance an auto loan is a good idea. Reasons You Might Refinance You might want to refinance your automobile for a number of...

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How to Avoid an Auto Repo

The repossession of a car can be a traumatic experience, particularly if you depend on your car to get you to work or your kids to school. In many places, having a car is the only way to get around to get groceries and other necessities. Avoiding a repossession can be simple, if you are upfront and honest with your lender. However, if you are completely unable to pay, due to a job loss or other unfortunate circumstance, avoiding repossession becomes more difficult. Instructions 1 Work on a budget. If you have recently had a catastrophic...

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Websites That Sell Used Cars

You can buy nearly anything on the internet, including used cars. Used car Internet sites function in a manner similar to the newspaper classified sections of yesterday, though now you can often find the exact vehicle for which you are searching. You can often find research tools and financing options online when buying your used car from a website. AutoTrader AutoTrader offers used cars from private sellers and businesses alike in a search engine format. You can search by make and model on the website, as well as by your zip code. You...

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Buying Vs. Leasing a Minivan

If you need a minivan for extra room or family demands, you can likely save money over the next few years by choosing to lease just as long as you can stay within the requirements of your contact. Leasing is restrictive, so consider your overall minivan use to determine whether leasing or buying is best for you. Mileage Determine your current annual mileage and expected future mileage over the next few years. Many leasing banks offer up to a 15,000 mile per year mileage allowance. Carefully consider the use of your minivan over the term...

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What Happens if You Break Your Car Lease Because You Are Unemployed & Disabled?

By signing a car lease, you agree to drive the vehicle and make monthly payments for a certain length of time. If you become disabled and unemployed, you may have to break your car lease. Breaking a lease has consequences to your finances and your credit score, but you may have other options. Financial Issues When you know you will need to break your car lease, you have the option of returning the car to the dealership. You can also request a voluntary repossession. However, simply returning the car does not release you from any financial...

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Can You Finance a Vehicle With One Already in Your Name?

You may find that you can finance a second vehicle depending on your credit standing and debt-to-income ratio. If you can provide your lender with valid proof of income and the lender determines you can afford to pay another car loan, you are likely to obtain a loan approval. Debt-to-Income Ratio Your auto loan provider determines your approval based on the amount of money you have coming in and the amount of money you owe, known as a debt-to-income ratio. Your credit report lists your total debts, including monthly payment requirements...

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How to Settle Repo Car Debt for Less

The struggling economy has caused many people around the country to lose their jobs over the past few years. Many of the people who are now without work have car payments that they are struggling to make, and in many cases, they have to miss several payments so they can buy food and pay the rent on time. This can quickly lead to the bank or car company repossessing the vehicle so they can recoup their loss. Repossession of a vehicle has a negative effect on credit, lowering an individual's score. Individuals who still want to settle their car repo...

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How to Stop a Repossession in the Final Stages

Missing several car loan payments eventually results in a repossession, where a lender finds the vehicle and takes back the car. A repossession stays on your credit report for seven years and causes a drop in your credit score. Even if your lender is prepared to repossess your car now, you can stop the repossession, keep your car and get your loan back on track. Instructions 1 Explain your situation to the lender. Communicate regularly with the lender to help slow down a repossession. Situations such as illness or being unemployed may persuade...

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How to Calculate Auto Loan Monthly Payments

People commonly take out a loan from a bank, car dealer or other financial institution to finance the purchase of their vehicle. These loans use the car as collateral, meaning if you fail to make your payments, the car may be seized by the lender. To figure out whether a particular car fits in your budget, you need to calculate the cost of the monthly car loan payments. Instructions 1 Convert the annual interest rate to a monthly interest...

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Can a Car Dealer Trade in My Car & Pay Off My Loan?

Accepting trade-ins and paying off existing loans are common practice for dealerships. Most dealers can also arrange new loans, allowing you to carry over negative equity if you owe more than your car is worth. Depending on the value of your car, you may have to put money down toward the new loan or may receive a credit to put toward your new balance. Trade Value Dealers offer trade amounts based on wholesale value. Depending on the dealer, it may use the NADA guide, Black Book or Galves appraisal guide to determine an acceptable value....

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How to Buy a Car During Bankruptcy

Buying a car while you are in bankruptcy may be difficult, but it is not impossible. Car shopping requires a few more steps to complete and some guidelines to follow. Instructions Getting Bankruptcy Trustee Permission 1 Contact your attorney to request a meeting with your bankruptcy trustee, who must grant you permission to acquire credit before you can buy a vehicle. Meet with the trustee and discuss your need for a vehicle. Bring a copy...

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Lease Vs. Buy for New Cars

Leasing and buying are two methods of new car financing. Leasing is a way to finance the use of a car over a period of time. Buying with a finance contract is a way to purchase a vehicle over a period of time. Each method has drawbacks and advantages. The choice depends on a combination of personal preferences and financial priorities. Buying Summarized Typically, when you finance the purchase of a new car, you arrange to pay for the vehicle...

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What Is a Tier Two Automotive Credit Rating?

In purchasing a new or used car, credit counts. While most people realize this, what they don't know is that a regular FICO score is not the only criteria auto dealers use. In fact, many auto dealers do not use standard credit scores at all, but rather a proprietary credit score which divides prospective buyers into tiers. A tier two automotive credit rating will affect the rate of financing available to a car buyer. What Are Auto Credit Scores?...

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Is it Better to Have a 36 or 39 Month Lease on a Car?

To decide between a 36 and 39 month lease option, consider your monthly payment amount, warranty coverage, maintenance schedule and vehicle needs. While three months may not seem like much of a term difference, you may find yourself outside of the vehicle's factory warranty period. Vehicle repairs and maintenance are your responsibility while leasing. Payment Sometimes the payment for a 39 month lease is cheaper than an alternative 36 month option. Your monthly leasing payment is based on expected depreciation of the vehicle, which depends...

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Do I Still Owe Money If My Car Is Repossessed?

If your car is repossessed, you are still responsible for any balance due after the car is resold by the bank, as stated in your contract. While you may not have to pay right away, your lender is within its legal rights to sue you. Before a lawsuit is filed, you may have options to settle the remaining balance, make payments or pay the balance in full. Upon Repossession Once your vehicle is repossessed, you can get it back by paying fees determined by the bank. The amount you'll have to pay includes any payments and late payments due, as...

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How to Refinance a Wachovia Car Loan

Whether you are attempting to lower your monthly car payments or you are trying to get a lower your car loan interest rate auto refinancing might be right for you. Refinancing a Wachovia car loan can be time-consuming, but as long as you keep yourself informed and focused, the process can be fairly straightforward. Instructions 1 Review your original auto loan documentation to see if you have any prepayment penalties or if there are any penalties for refinancing. If you are planning to refinance your existing Wachovia car loan with another...

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Definition of Car Lease Residual Value

The residual value is the approximate value of a leased vehicle at the end of the lease period, which is often 36 months. The longer the term of the lease, the less residual value the vehicle will have. The residual value is based on the expected depreciation amount of a vehicle. Meaning The residual value is the amount you would pay for the vehicle at the end of the lease term if you decide to purchase it. The final amount is predetermined at the time the lease is executed and will not change. Generally, the higher the residual value of...

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How to Lower the Lease Buyout Amount

Lowering the lease buyout amount on your car can save you money. You may be happy with the car that you've been leasing and know that it's mechanically sound, so you would like to buy it when given the option. However, negotiating with the dealership or leasing company when your lease expires takes skill and knowledge. Before you approach the subject of buying the vehicle that you've been driving, you need to understand the terms of your lease and know valuable details about your car. Instructions 1 Read your lease carefully to understand...

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What Type of Credit Does a Cosigner Need to Lease a Car?

Bad credit borrowers often ask someone to co-sign an auto lease because they cannot qualify on their own, but finding another party to guarantee your lease doesn't mean the dealer automatically approves your loan. Your co-signer needs to meet all of the requirements of a normal borrower. Thus, you should only ask a person with excellent credit to co-sign a loan. Identification Ideally, your co-signer should have a credit score in the highest tier -- above a 760 for most lenders. An average -- at least a 620 -- to above average credit score...

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Lease vs. Buy Car Insurance

The insurance requirements of leasing and auto loan providers are very similar. Until you fully own your vehicle, your lender or lease provider requires full-coverage insurance coverage to protect its purchase. If you pay cash for your car, you may insure your vehicle as you please as long as you maintain a liability policy, a requirement in most states. Collision Insurance Coverage Collision coverage offers the most protection for your car. If the vehicle is declared a loss by your insurance company because of an accident, damages or theft,...

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How to Get Financing at Your Car Dealership

Most car dealerships have a special department set up to assist car buyers with the financing of their car purchase. A dealer considers the finance department to be a source of additional profits when cars are sold. A car buyer should understand what the dealer financing can and cannot provide. Instructions 1 Determine the type of car you want to buy and how much you can afford for a down payment and monthly payment. 2 Estimate the car...

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How To Look Into Refinancing My Auto With a Lower Interest Rate

Refinancing a car loan requires you to apply to another lender to pay off your old loan so you can start a new one. Refinancing is beneficial to some, as interest rates, credit standing or needs can change, and a refinance can accommodate save you money over the loan term or lower your monthly payment. When looking into refinancing, you should shop as you did for your original car loan. Instructions 1 Call your current lender to determine...

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How to Get a Good Interest Rate on a Car

Buying a car may require financing from your bank. Banks compete for car loans and strive to provide good interest rates for qualified applicants. Loans that are secured by a car provide the lender with collateral until the loan is paid in full. Most lenders offer car loans that range from two to six years. A car loan provides you with a method of obtaining financing over time for the vehicle that you want now. You can get a good interest rate on...

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How Can a 16-Year-Old Buy a Car?

The excitement of turning 16 is often fueled by your ability to obtain a driver's license. Once you accomplish this motivating task, a desire to put your skills to the test and obtain a car is sure to follow. 16-year-olds, however, are ineligible for auto loans. In order to purchase a car, you must find creative ways to finance your vehicle. Establishing a Note One easy way to purchase a car as a 16-year-old is to create a note between yourself and a family member. In exchange for making monthly payments toward a purchase price, the seller...

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Is it Smart to Refinance a Car?

You may have considered refinancing your home mortgage loan to take advantage of falling interest rates, but you may not have thought about doing the same with your auto loan. In some cases, refinancing your car loan can also be beneficial, resulting in a substantial savings in the long run. Significance According to Edmunds.com, refinancing at the right time can possibly save you thousands of dollars in interest charges. It is also easier...

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