What Is a Private Lease on a Car?

Like subletting an apartment, private leases help lessees get out of car lease payments. Private leases are normally a minimum of 6 months, according to the website Exotic Auto Lease, but the new lessee assumes responsibility for the remainder of the contract. Benefits Private leasing saves money for both parties. The lessee is released from lease payments and a leaser avoids car rental fees when the car is only needed for a short period. A private lease possibly allows a person with poor credit to lease a car and repair their credit with...

Read More

Is Auto Insurance Full Coverage When Financing?

Your insurance coverage is separate from your car loan, meaning you must purchase an insurance policy on your own. Most lenders require a full-coverage policy, so you have to choose one that meets your bank's requirements. Read your contract over thoroughly or ask your lender for its requirements before pursuing a loan. Full Coverage Your lender likely requires you to maintain a full-coverage insurance policy until your loan is paid in full. This coverage is the most expensive you can purchase, as it covers your vehicle in the event of...

Read More

What Happens With an Involuntary Car Repo on a Leased Car?

If you allow your lender to repossess your leased vehicle, the process is known as an involuntary repossession. Unless you arrange to bring your vehicle back to your lender, known as a voluntary repossession, the vehicle can be taken from just about anywhere. You may also have an opportunity to purchase the car from your bank. Collection Procedures Your bank will try to contact you before repossessing your leased vehicle. To avoid the involuntary repossession process, you should respond to any correspondence from your lease provider. Your...

Read More

Vehicle Refinance Recommendations

People usually refinance auto loans to obtain a better interest rate. Others might want a lower monthly payment, achieved by extending the loan term or putting money down toward the refinance even if the rate is not significantly better. Whatever your reasons may be, plan your budget and overall expenses appropriately. Calculate Budget and Expense Use an auto loan calculator to find out the benefits of refinancing you car loan. Edmunds.com, an automotive information resource, offers one for free. If you believe you can lower your interest...

Read More

How to Buy a Car with No Money Down

Buying a car with a down payment often results in a lower interest rate and monthly payment. Unfortunately, some buyers do not have the extra cash and choose to buy a car with no money down. Several auto lenders approve no-money down vehicle loans. However, not everyone qualifies for this type of loan. Before stepping foot inside a car dealership, familiarize yourself with a lender's no-money down loan requirements. Instructions 1 Establish...

Read More

What Does As-Is Mean When Buying a Used Car?

Even a used car represents a major purchase, and discovering unexpected problems with the vehicle after you drive it home can be devastating. As with most purchases, the seller must deliver a product that satisfies all advertised claims. When a seller advertises a car "as is," he is making no promises and claims about the condition of the vehicle. Advertised Claims When a seller makes a claim that the product does not meet, the buyer has...

Read More

When Will a Car Repossesion Go on Your Credit?

Car repossession reporting is almost immediate. Even if the repossession isn't immediately reported, your loan account is reported as significantly past due and is viewable to other lenders. Many lenders or credit providers will not approve a line of credit when a revolving account is reported as significantly past due. Late Payment Reporting Potential creditors can view your payment history for your car loan account. Even if your vehicle repossession is not immediately reported to the credit bureaus, it is obvious to creditors that your...

Read More

How to Finance a Toyota

After a house, a car is likely the largest financial commitment you will make. Since it is such a large purchase, you want to get it right. If you do not have the money needed to purchase the car outright, financing allows you to borrow money from a financial institution and to pay it back in monthly installments. Financial institutions charge interest for the use of their money, and the interest rate varies with the amount borrowed based upon your credit rating and whether you are financing a new or used car. Instructions 1 Request and...

Read More

How Does a Leased Vehicle Contract Work If the Car Gets Stolen?

During the term of your lease contract, you are required to maintain collision coverage on your car, which also includes comprehensive coverage. The comprehensive portion of your policy pays your leasing bank for your vehicle's market value if it is stolen. However, your insurance company does not consider the total value you owe to your bank, which you must satisfy on your own if the payout is not enough. Insurance Company Payoff After your insurance company determines your car a loss due to theft, it then determines the car's market value....

Read More

Does Gap Insurance Cover Depreciation of Cars?

In the event of a vehicle loss, gap insurance pays off the remainder of your loan if you owe more than your car is worth. A full-coverage insurance policy pays your lender only for the vehicle's market value, so your insurance may not pay off your entire loan. Guaranteed asset protection, or gap, insurance does not necessarily cover a vehicle's depreciation. Coverage Lenders require borrowers to purchase and maintain a full-coverage insurance policy throughout a loan term. In the event the car is totaled, the insurance company does not...

Read More

If a Car Has a Loan, Can You Add Someone to the Title?

A car title is a document reflecting ownership of your vehicle. It is different from the car loan document, which only reflects the debt you owe a lender on the vehicle. You can add someone to your car title without adding them to your car loan. However, if your lender is holding your title, you will have an additional step in order to do so. Owner Holding States There are 11 states where you receive a title regardless of whether or not you...

Read More

How to Find Blue Book Value

Calculating the current market value of your car can present some challenges if you do not know what resources to use. Named for the Kelley Blue Book, a price guide for all vehicles that originally was created by car dealers, blue book value is an important variable to calculate before you sell your car or trade it in. Use three types of resources to find your car's blue book value. Instructions 1 Check the Kelley Blue Book. The Kelley Blue...

Read More

Channels You Go Through When Purchasing a Car

If it has been a while since your last car purchase, you should be pleased to learn that going to a dealership can serve as a last step in the process, as you can view price comparisons, vehicle information and discounts online. Going to the dealership with an understanding of your pricing and financing options saves you money in the long run; you can rest assured you won't pay too much for your vehicle or finance at too high a rate. Pricing Determining vehicle price and affordability should play a major part in your car purchase. If buying...

Read More

Is Leasing Cars Better Than Buying?

Consumers looking to drive a new car are confronted with two basic options --- to lease or to buy. One choice is usually preferable to the other, but that depends entirely on personal preference, individual financial circumstances and expected time frame. Leasing covers use of the vehicle and is generally the better option when you plan to replace the car every two or three years with little risk of major repairs. Purchasing a car, by contrast, represents ownership. Lease vs. Buy Buyers pay the car's full cost, which usually involves a...

Read More

How to Determine an Auto Credit Loan

Determining an auto credit loan is not complicated but does require proper planning. An auto credit loan is a loan used to finance the remaining balance owed on the purchase of a vehicle. When purchasing a vehicle the buyer is often required to put money down toward the purchase and in some instances is allowed to trade in her vehicle to the dealership to deduct the value from the total sales price of the new vehicle. Instructions 1 Calculate the final total sales price of the automobile you want to purchase. The final sales price is...

Read More

If I Purchased a Car, Can I Put Two Names on the Title?

Every vehicle purchase involves completing a title for the car, which provides vital information about the vehicle's owner and identification. The Department of Motor Vehicle prepares the title, but before the document can be completed, buyers must provide information on names to include on the vehicle title. What is Car Title? A car title is a legal certification of ownership. During the buying process, auto dealers prepare information for the car's title, and buyers can either put one or two names on the title. Dealers submit this information...

Read More

How to Buy a Car From an Out-of-State Owner

An out-of-state vehicle may be a good deal, but transferring title and registration between owners and states at the same time can get a little tricky. When you make your purchase, have a checklist ready to ensure you get everything you need from the car's previous owner before departing. Otherwise, you may be running back across state lines to take care of the paperwork and arrangements needed to complete a vehicle registration in your state. ...

Read More

Is it Possible to Modify My Auto Loan?

The option to modify your current car loan depends on your auto loan provider's willingness to do so. Some lenders may offer loan modification for financial hardship, allowing you to increase your loan term although you may have to agree to a higher interest rate. If your lender won't work with you, consider refinancing instead. Talk to Your Lender Call your auto loan provider to ask if it offers any loan modification options. If you're experiencing some form of financial hardship, such as unemployment or disability, your lender may offer...

Read More

What Happens to GAP Insurance if You Refinance?

Many consumers make a small down payment or none at all when they purchase and finance a vehicle. Due to depreciation, a gap exists between the value of the vehicle and the loan balance during the first two years of the loan. To protect themselves and the borrowers if a vehicle is declared a total loss, lenders offer guaranteed asset protection (GAP) insurance in connection with an auto loan. How GAP Insurance Works A car accident can damage...

Read More

What Is a Tier 1 Credit in Auto Loans?

Many lenders use different credit tiers to determine the interest rate to offer you on your auto loan. Where you fall within these tiers depends largely on your credit score. The credit score cutoffs for each tier level also differ by lender, but not by much, typically around 10 to 20 points. Tier 1 Credit Other names various lenders use to refer to Tier 1 credit are A tier and platinum tier. People that fall into this credit tier must typically have a credit score of at least 720, depending on the lender. Some lenders consider those with...

Read More

How to Calculate the Maximum Amount You Can Borrow

The maximum amount you can afford to borrow depends on three things: the interest rate of the home or car loan, the length of the loan period, and how much you can afford to pay each month. If you are looking for auto loans, or home loans, use the steps below to compute how much you should borrow. Instructions 1 Divide the annual interest rate by 12 and call the number "R," and call the number of months in the loan period "M." Now compute the following fraction: (1+R)^M - 1 ------------------ R(1+R)^M 2 Multiply the number you obtained...

Read More

How Do I Work With My Auto Loan Finance Company?

If you are behind on car loan payments, you are at risk of having your vehicle repossessed. Likely, you have already received several calls and written notices about your account, instructing you to make payment at once or risk losing your car. Even if you can't catch up on payments now, your finance company may be willing to work with you but only if you take action immediately. Communicate If you're behind on car payments, the most important step for you to take is to talk with your loan finance company. Failure to communicate indicates...

Read More

What Are Typical Car Lease Interest Rates?

Approximately one in five new-car transactions are lease agreements rather than traditional purchases. While leasing a vehicle is more akin to renting, lessees also face finance charges similar to those incurred when borrowing money to purchase a vehicle. Some lease agreements don't advertise their interest rates, although automotive manufacturers create nearly every lease option to incur interest on the amount that a vehicle's value depreciates...

Read More

When I Sell My Car to an Individual What Happens to My Tag?

License plates, also known as tags, help identify vehicles and ensure that drivers have the proper licensing for their vehicles as required by state law. But when you sell your car, the procedure to follow regarding your tags can be confusing. Each state has its own policy and some states offer multiple options. Before selling a car, contact your department of motor vehicles or browse its website for resources on what to do with the old tags. ...

Read More

Does Having a Co-signer on a Vehicle Help With Financing?

A co-signer can help you to obtain a car loan approval as long as she has good to excellent credit, a good debt-to-income ratio and enough income to afford the additional debt. If you can't obtain a loan with affordable and reasonable terms or an approval at all, a co-signer can secure favorable terms for your auto loan. When You Should Seek a Co-signer If you have poor credit, you might still obtain a loan approval as a high-risk borrower. To offset risk, the lender might require a large down payment and restrict the term of your loan...

Read More

Should You Get Extended Insurance When You Purchase a Car?

You can rest assured that you'll have the coverage you need if you purchase extended insurance for a car purchase, although you may never need it. Different types of extended insurance purchases are available, so determine costs and ultimate savings before pursuing any options. Lenders may require you to purchase extended coverage, so budget accordingly. Full-Coverage Insurance Full-coverage insurance is usually required by lenders. Without a loan, most states require only a liability policy, but a lender requires comprehensive and collision...

Read More

4 Tips to Save a Bundle on Your Next New Car Purchase

To successfully save a bundle on your next new car purchase, educate yourself about vehicle pricing. This way, you know a good deal when you see one. Luckily, you can do most of your negotiating online. Researching and shopping same-make dealers online helps you to save a bundle; you do not have to go into a dealer until you have negotiated a price online. Determine Invoice Pricing Invoice pricing is the amount a dealership paid for a new car. You'll need to know it to determine how much you can save. A majority of dealers will not sell...

Read More

How to Refinance a Vehicle in Southern California

If you have a car loan in southern California with a rate that is too high, you can try to refinance your auto loan to get a lower rate. Getting a lower rate when you refinance can result in a lower monthly car payment and a reduction in the amount of interest you will pay for the life of the car loan. Typically, you must refinance a balance of at least $7,500. Instructions 1 Check the balance on your current auto loan by calling the loan company and asking for the payoff amount. Look on your recent statement to get the customer service...

Read More

Can a 17-Year-Old Get a Car Loan?

A 17-year-old is legally considered a minor in all 50 states. Being a minor excludes a 17-year-old from many "adult" activities, and one of those activities is signing a legal contract. Since a car loan constitutes a legal contract, a 17-year-old cannot sign a car loan without a parent or guardian also signing the loan as a cosigner. Ownership Limitations One important aspect in car financing for minors is the limitations he or she will face...

Read More

How to Calculate Truck Financing

Purchasing a truck is a major financial investment that involves a significant amount of preparation. The decision of how to finance a truck involves several key steps and will require you to do a fair amount of research to prepare for your purchase. To calculate truck financing, you must establish the cost of the truck, decide on how much you will pay as a down payment, explore loan options and make a decision that best fits your personal wants...

Read More

Can I Defer a Car Payment?

Sometimes a consumer finds herself unable to pay monthly car payments. There is an option referred to as a deferment that many banks offer. Identification In the case of a deferment, the lender allows the consumer to pay only the interest due for the month, and the principal is added to the end of the loan. Function Most banks require paperwork to be submitted to set up a deferment. The auto loan may have pre-arranged terms that limit the number of payments that can be deferred, and the circumstances under which a deferment will...

Read More

How to Figure Out a Car Loan Price

Before securing a loan to purchase a new vehicle, it's important to calculate how much you can afford to pay on a monthly basis. You should stick to that predetermined amount even in the high-pressure venue of a car dealership. By doing due diligence and conducting research before entering the dealership, you will be prepared to stand your ground and stick to your plan if the dealership attempts to engage in aggressive sales tactics such as upping your interest rate immediately before the contract signing. Instructions 1 Conduct a basic...

Read More

Does My Loan Cosigner Have to Be on the Title or My Car Registration?

The co-signer of a loan is legally responsible for the repayment of the borrowed funds. A person whose name is on the title of your vehicle, along with your name, is considered a co-owner. While it is reasonable for a co-signer to also be the co-owner, this is not a legal requirement. Co-signer The co-signer of a loan guarantees the repayment of the borrowed amount. In simpler terms, if you default on your debt, whether it is a home-improvement...

Read More