How to Transfer an Auto Loan

Whether you're selling your car to a stranger or turning it over to a friend, it is possible to transfer your existing car loan to that person along with the vehicle. If the person taking the car decides to arrange for his own financing to pay off your existing loan, the matter is easily solved. On the other hand, you can also request to modify your existing loan with your lender to transfer responsibility for future payments to someone else. Instructions...

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Should You Buy a New or Used Car?

The debate over whether it's smarter to buy a new or used car is common. There are both pros and cons of purchasing a used car instead of a new car. In the end, it depends on your personal financial situation and what you truly want out of your next vehicle purchase. Cost Used cars are always less expensive than comparable new cars. If you're on a tight budget, then buying a used car might be the best option for you. Some people purchase...

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Should I Pay Cash for a Car or Finance It?

With the price of a new car running well into the five digits, most buyers will need to take out a loan to buy a car. But if you are in a position to pay cash, you can find a number of advantages by avoiding the financing headaches and high interest rates. Even so, you should consider both the pros and cons of paying cash for your next car. Deal Negotiation You may be able to negotiate a better deal with the car salesman if you can buy with...

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Can I Default on My Auto Loan If the Car Is a Lemon?

No one wants to make car payments on a non-functioning vehicle. If it seems like your new car is always in the shop or a particular problem keeps popping up again and again, you may own a lemon. Although state laws vary, all 50 states provide car buyers some form of recourse if they inadvertently purchase a lemon. Should you find yourself stuck paying for expensive repairs on a car you recently purchased, you may have grounds to get rid of the lemon...

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How to Purchase a Car From an Individual

Purchasing a car from an individual can prove less stressful than buying from a dealership. Dealerships might inflate the price of cars, and some salespeople employ pressure tactics. But before buying a car from a private party or individual, know what to expect. Instructions 1 Apply for financing; go to your bank or credit union and get pre-approved for an auto loan. 2 Research Kelley Blue Book (kbb.com) once you have a car in mind. Check the retail or market value price of the car. This provides a price point to begin negotiating...

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How Does a Voluntary Repo Affect my Credit?

A repossession firm usually comes calling if you stop paying on your car loan. MSN Money writer Liz Pulliam Weston explains that banks and finance companies usually call in repossessors after 60 days, although your contract terms may allow your vehicle to be taken as soon as you default by missing just one payment. You can voluntarily turn in the car rather than waiting for the repossession firm to find you, although your credit is still damaged. Definition A repo refers to vehicle repossession, whether it happens involuntarily or voluntarily....

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Tips on Leasing a New Car

All but the cheapest new cars cost upwards of $20,000. For this reason, many buyers, choose to lease rather than buy. Leases generally last for a period of two to three years, often with an option to renew. Using a few basic tips, buyers can successfully navigate their lease. Watch Your Mileage Most leased vehicles have strict limits on the amount of mileage that a driver is allowed to put on the vehicle. Usually, these limits are set on an annual basis. Any additional miles the driver puts on the car, past the limit, will incur a fee....

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How to Sell My Car By Taking Over the Payments

It's sometimes impossible to meet the car payment amount to which you agree in an auto loan contract. Alternately, you may need a vehicle that suits your needs better. Selling your car by having someone take over your loan payments -- known as loan assumption -- solves both these problems. To do this, you'll have to get permission from your auto lender and rework the loan paperwork so that the new buyer is legally responsible for payments. Instructions...

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How to Trade in My Car Instead of Refinancing

If interest rates have gone down since your initial car loan, refinancing can save you money over the term of your loan, or lower your car payments if you extend your term. You can also trade in your vehicle toward another car to do the same. However, if you owe more money than your car is worth, you may have difficulty trading in without putting money down. Learn how to trade in your car instead of refinancing. Instructions 1 Check your credit at AnnualCreditReport.com. This website allows you to receive one free credit report per year...

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California Laws on Auto Title Loans

Although California's consumer protection laws offer broad protection to most consumers who conduct business in the state with licensed businesses, it does not regulate most title loan lenders. For the most part, title loan lenders are unregulated in California because of the legislative loophole in lending laws. The California Attorney General's Office and the California Department of Corporations are responsible for enforcing and regulating finance...

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Easy Financing for Cars

Getting easy financing for a car will involve preparation. Auto lenders base your financing package on numerous factors such as past credit patterns and how much you can afford. Planning and knowing typical lender requirements can help you score a good deal on financing a car. Credit Approval Auto loans include loans for people with bad credit; and many dealerships and banks offer sub-prime loan products. Unfortunately, financing options with bad credit are limited and don't always offer the best terms. Getting easy financing for a car...

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How to Buy an Out-of-State Car in Delaware

Due to the low sales tax on vehicle purchases, Delaware is a popular place to purchase a car, even if you do not live in the state. If you are buying a car in Delaware as an out-of-state buyer, you will still end up having to pay the full sales tax amount for your state. While you'll only be charged Delaware sales tax when you buy the car, your state will collect the difference when you register the vehicle. Instructions 1 Visit a car dealership in Delaware or an individual seller that has a car you want to buy. In Dover, you will find the...

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How to Buy a Leased Vehicle After a Lease Is Completed

Buying a used car can be fraught with uncertainty, but not if you are buying a leased vehicle of your own after a lease is completed. This process provides first-hand knowledge of the car and completion of regularly scheduled maintenance. It allows you to know the current driving condition and quirks of the car as well as keep the treasured memories of the many enjoyable times in it. Instructions 1 Do your research. Look at resources, such...

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How to Buy a Car in Hawaii

While there are no bridges connecting any of the Hawaiian islands, you can drive around on each island individually. If you are moving to the island and need a vehicle, you do not have to bring a car with you from the mainland. Instead you can purchase a new or used car in Hawaii. When you buy a new car, you'll notice that the price is higher than on the mainland, which is due to the cost of getting it there. Oahu is the island where you'll find most of the car dealerships, particularly in Honolulu. Instructions 1 Visit a local car dealership...

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Refinancing a Repossessed Car

Most lenders don't repossess a vehicle until car payments are significantly past due, often 60 days or more. Once your payments are reported as late and unpaid to the credit bureaus, it becomes difficult to obtain another car loan. Work with your lender before it seizes your vehicle or seek the help of a co-signer if you can't refinance the car on your own. Before a Repossession Your lender may have programs in place to help distressed borrowers avoid repossession. Under some circumstances, it's financially beneficial for the lender to...

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Things to Consider While Purchasing a Car

Buying a car is one of the most expensive purchases you'll make in your life, and you'll probably make the purchase multiple times throughout your life. It's important to make sure you buy the right car from the right person or dealership, otherwise you'll be stuck with a car that you don't like or one that breaks down constantly. New Versus Used Modern cars are built better than older cars and last longer than cars of past, so buying a used...

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How to Calculate Installment Loan Payments

An individual may borrow a certain amount of money, commonly referred to as the principal, from a bank or another lender. Then, under the loan agreement, the money is paid back in regular monthly installments over a designated period of time. Since the lender typically provides the money at a specified annual percentage rate (APR), you need to take into account the interest paid to the bank when computing the installment payments. As an example, we will calculate payments to amortize a $20,000 loan given at an APR of 6.6 percent for 5 years. ...

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How Buying a Car With Cash Saves You Money

First and foremost, avoiding any type of interest-bearing debt is a big money saver for any consumer. By paying cash for a car, the driver avoids paying interest over the entire time period that he owns the car. Significance If a borrower buys a $10,000 car with a 5% loan and a 5-year term, he pays $1,322.74 in interest over the life of the loan. Function Paying cash for a car may make the deal even better for the consumer. If a consumer...

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How to Get a First Time Auto Loan with a 681 Credit Score

Getting a first-time auto loan is an exciting time, and several factors determine whether you're approved for a loan and the interest rate you receive. Applicants with a low credit score typically obtain higher rates, whereas people with a credit score in the 700s pay the best rate. A 681 credit score is considered average by lenders, and you can get an auto loan with this rating. But to improve your chances of an approval, it's best to know the...

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How to Release Liens on Automobiles

If you have ever financed an automobile and had to make payments, there is no better feeling than to pay the loan off and own your car with no liens on the title. There are a few details that must be taken before you truly own the car free and clear. Instructions 1 Call your lender who is holding the lien on your automobile. Ask for a final payoff of your loan and explain that you want to receive your cleared title as expeditiously as possible. If you are planning to sell or trade in your car, you will want to have your title showing it...

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Does a Cosigner Have Legal Rights to a Vehicle if They Have Made No Payments?

Some people who cosign a vehicle loan for a friend or relative fail to realize the implications of what they're doing. Cosigning that loan isn't simply being helpful; it's taking on an obligation. If the person responsible for the loan fails to make his payments, you have to do it for him, whether or not your name is on the car title. Making Payments You cosigned a car loan for a friend and he's made all his payments on time so far. That's...

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The Best Way to Finance Buying a Luxury Car

Luxury cars can vary in price; some can cost as much as a home. With a higher financed amount, an interest rate can have a huge effect on the end cost of your car. Tax in some areas can also add a hefty amount to your price. Before searching for financing, research the price of your car and taxes to determine how much money you'll put down. High-priced cars in excess of $50,000 can require down payment for lending. Instructions 1 Check your...

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How to Get Lower Payments on a New Car

Buying a new car is a wonderful feeling. Unfortunately, new cars are expensive, and some people can't afford the monthly payment. Rather than stick with your current automobile or purchase a used vehicle, consider different ways to get a lower car payment. In return, you're able to buy the car you want--without breaking the bank. Instructions 1 Increase a low credit score. Several factors influence the payment on a new car: the sale price...

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How to Sell a Financed Car That You Have Had for 5 Months

Selling a car you have only owned for five months should prove challenging. The challenge lies in paying off your loan, not in selling the vehicle. New vehicles suffer the greatest amount of depreciation once driven off the lot, meaning you likely owe more than the vehicle's private-sale value. Most states do not allow title transfers if a lien exists on a vehicle's title, and most knowledgeable buyers know the risks associated with purchasing a financed vehicle that isn't paid off, even if your state allows such transfers. Instructions 1...

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How to Cosign an Auto Loan if the Cosigner Lives out of State

Having a lack of credit or a poor credit history often results in a financial institution requiring the signature of someone else with good credit before approving you for an auto loan. The person who signs your loan is known as a cosigner and guarantees the financial institution that he will pick up your payments if you default. Most cosigners sign the loan while in the presence of a financial institution employee. An out-of-state cosigner must visit a notary public to cosign your loan. Instructions 1 Ask the financial institution if they...

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How to Trade a Car That Is Upside Down in Value

Being upside down means you owe more on your car loan that the car is worth. This is a bad situation for a car as they usually depreciate with age (unlike real estate). The difficult part is trying to trade the car in for another car, especially if the difference is extreme. Unfortunately, for most of us, a car is necessary for employment or family. The good news is that there are strategies to make the process less painful. Instructions 1 Walk through an example. Let's say you owe $20,000 on a car that is now only worth $10,000. This means...

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How to Get a Good Price When Buying a Used Car

It's a fair bet that sooner or later you'll find yourself car shopping. Choosing a used car over a new car can save you thousands of dollars, but not all used car dealerships are honest. Some used car dealerships mark up vehicles beyond their actual value while car salespeople use psychological tricks to make shoppers more apt to spend beyond their budgets. By educating yourself on the used car shopping process before you visit the lot, you're more...

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How to Terminate a Car Lease Early

Cars and homes are two of the most expensive items that most people own. While homes may appreciate in value, cars tend to depreciate. Auto loans are often based on values which will be considerably lower in the future. It is for this reason that some people prefer leasing as an option to purchasing a car outright. Most leases last for two to four years and the driver pays monthly "rental" payments at an agreed upon price over the length of the leasing period. Most dealers will penalize you with significant fees if you terminate your lease early...

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Is the Present Value of a Financed Car Always Lower Than Paying Cash?

Vehicle purchase, trade, retail or insurance value does not differ because of how you paid for the car. Cash is treated the same as finance during the car buying process, as the dealership receives a check either way; there is no holdup in funds. Beyond initial pricing, financed vehicles may include an interest rate, which results in a higher cost of ownership. How to Determine Value You can find retail values using the Edmunds, Kelley Blue Book and NADA Guides websites. If you research a car, you will notice values remain similar across...

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How Much Should Having No Credit Affect the Price of a Car?

If you have no credit history, the financial effect of buying a car will be steep. However, the pain will not be felt by the purchase price; the buyer will feel the effect when making payments. That's if the car dealership even decides to sell to someone without a credit history. Interest Rate Your credit really only comes into effect when determining the interest rate you will pay on your car loan. If you have little or no credit history,...

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Can I Sue If a Vehicle That I Cosigned for Gets Repossessed?

If you can't pay for a car with cash, an auto loan can allow you to finance the cost of that vehicle over a certain period of time. The loan, however, must be repaid. If you're a co-signer on a car loan and that car is repossessed, your status as a co-signer affects your right to sue. Identification A repossession occurs when the lender assumes ownership of a vehicle from the borrower due to the borrower's breach of the car loan agreement. Often this breach is in the form of missed payments on the loan. Repossessions can be voluntary, where...

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