Can a Car Be Repossessed if the Buyer Dies?

One of the last things you expect when you finance a new car is to pass away before you have the opportunity to pay off the vehicle. However, this is exactly what happens for some customers. An accident or unexpected illness could leave your family struggling to pay off the remaining balance of your auto loan, or it may face repossession. Car Payments When an individual dies before paying off his auto loan, someone has to continue making...

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Facts on Making Car Payments After a Car Accident

A vehicle loan is a legally binding contract. When you sign for a loan, you assume responsibility for the funds loaned for the car purchase. Through this financial assumption, you are obligated to repay that amount, according to the terms of the contract. Unfortunately, anything that happens to the vehicle once you purchase it does not negate your legal responsibility to repay the loan, even if the vehicle is involved in an accident. The Facts Upon financing a vehicle, you authorize a lender to purchase the car. You then pay the lender...

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How To Lease a Scion

Scion is a division of Toyota that uses Toyota Financial Services for leasing. Good to excellent credit is required for lease approval. Scion typically offers a three-year, 36,000-mile lease and a 12,000-miles-per-year allowance, which is equivalent to Scion's bumper-to-bumper warranty. You can lease a Scion for a relatively low monthly payment, as the Scion website states that the vehicles are sold and leased for "Pure Price," or no-hassle pricing, meaning the lowest prices are offered from the start. Instructions 1 Go to Scion.com to...

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The Truth About Zero Percent Financing & New Cars

Car companies and dealerships love to aggressively promote their best deals. Many of these deals include zero percent financing on a new vehicle. However, there's a lot the advertisements don't tell you about these deals, and what they do tell you is buried in fine print. Oftentimes, deals such as zero percent financing come with many other strings attached. Credit Requirements Perhaps the biggest misnomer about the car offers you hear advertised is that they're not actually available to everybody. The fine print of car advertisements tells...

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When Someone Dies What Happens to Their Car Loan?

When an individual passes away, his possessions are passed on to someone else according to the specifications of his will or trust documents. If that individual has debt, it must be addressed before possessions can be passed on to his heirs. One of the most common debts in this situation is an auto loan. Paying Off Loan One of the options available to the family members of a deceased individual in this situation is to pay off the loan. If the deceased individual left a sizable estate to his beneficiaries, they could use part of that money...

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How to Get an Auto Refinanced With Bad Credit

If you are someone with bad credit who purchased a vehicle that has a high monthly payment, refinancing is an option that you might want to explore. Getting an auto refinanced is one way to reduce monthly payments while lowering your interest rate. While the process of getting an auto refinanced with bad credit might seem a little daunting, it doesn't have to be difficult and your effort will be rewarded in the long run. Instructions 1 Obtain a recent credit report with your credit score. Before applying for any loan it is important to...

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The Laws on Collecting on a Defaulted Car Loan in North Carolina

A loan for a car is usually documented and secured by both a promissory note and a document making the car collateral for the loan. The lender can enforce payment for the loan by repossessing the car and also by suing the borrower if there is a default on the note. North Carolina state law regulates such legal actions within the state. Repossession of Car North Carolina state law permits the lender to seize the car that was made collateral for the loan by repossession. Such a repossession must not breach the peace, meaning that no use of...

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Lien Sales & Vehicle Tow Laws in California

In California, the state's consumer protection laws require towing companies and repossession agencies to comply with the California Vehicle Code and California Department of Consumer Affairs' regulations. When car buyers default on their loan obligations, lenders have a right to repossess their property and sell them through private or public lien sales and auctions. However, they must comply with the state's notice laws requiring notification to...

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Used Car Sales Laws in California

It is well established that cars generally are not good investments and lose value as soon as the buyer drives the vehicle off the car lot. New car buyers do not have to worry about latent defects that existed prior to purchasing the car since their new bill of sale provides them with warranties. With the enactment of California's lemon law in 2006, some used car buyers can have similar reassurances of operability. Car Buyer's Bill of Rights...

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How to Sell a Car With a Lein

When you have a car that still has a lien on it, that typically means there is an auto loan on the vehicle that you have not yet paid off. Usually you are still making monthly payments on the vehicle when you have a lienholder on the car. It can be a challenge to sell a car with a lien because you do not actually have the title for the vehicle. The lienholder has it. Despite that challenge you can still successfully sell a car with a lien. Instructions 1 Look at a recent statement for your auto loan to see if the pay off amount is listed....

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Own Vs. Lease a Car

Leasing and buying a car both have their advantages and disadvantages. If you are in the market for a car, you should first consider how long you want to drive the car, your overall driving habits -- such as the distance you commute to work -- and your financial situation, among other things. Overall Cost Carefully compare the cost of leasing a car to buying a car with financing. For example, many car companies advertise a low monthly payment for leases, but require a large sum of money upfront for a down payment, not including taxes and...

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What Happens After Voluntary Repossession on a Vehicle?

Sometimes you have to face the fact that you must turn your automobile in because you cannot afford to make the payments. This is considered a voluntary repossession, and there is little difference from an involuntary repossession. A voluntary repossession allows you to save money in repossession fees because the lender does not have to hire a repossession company to repossess your car. Any fees incurred are passed on to the borrower. Auction If you voluntarily turn your car in, the lender will sell the car at an auction to the highest...

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What Happens If a Co-Owner Doesn't Pay a Car Payment?

If you cosign a car loan, you are equally responsible for the loan as the person for whom you co-signed. Any late payments or repossession charges will show up on your credit report affecting your score and history. You are also liable for the vehicle loan if it goes into default or the lender repossesses the car. Bank Contact Banks have varying procedures when it comes to notifying a co-owner of late payments or default. Before non-payment becomes a problem, contact your lender and ensure that it contacts you if a payment is late. Some...

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What Is the Trade in Value of My Used Car?

Trading in a used car is a simple way to get rid of an old car when purchasing a new one from a dealership. The dealership takes the used car and applies its value to the purchase of a different car. For example, if your trade-in is worth $6,000, your cost for a new vehicle would drop from $20,000 to $14,000. Estimate Value Many websites offer calculators that estimate a particular vehicle's trade-in value. Before going to the dealership to trade in a vehicle, look up the value of the vehicle on at least two reputable websites. Enter as...

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How Can I Find a Rent-to-Own Car?

If you badly need a car but you can't afford to buy a new one right away, there is an option for people in your situation. Rent-to-own cars are now available and affordable for those who do not have enough cash to purchase a new auto. This option varies from a traditional lease because you own the car at the end of the contract, whereas you must purchase the car or trade it in at the end of a lease. Payments on rent-to-own cars are flexible and often...

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Auto Financing Methods

The right auto financing package can help you secure a good interest rate on your next car purchase, and ultimately a lower car payment. Several options are available when financing a car. And doing your homework and exploring different methods of financing helps you choose the deal that's right for you. Fix Credit People with good credit scores can obtain the best interest rates on auto loans. Lenders vary in their definition of a good score. But according to Experian, a credit score 700 or higher generally indicates a good credit history....

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Debt-to-Income Ratio for a Vehicle

If you want to qualify for an auto loan, odds are you know your credit score and you probably know the current interest rates. Armed with this information, you may think you know everything you need to know to get a good car loan. However, youre forgetting one vital piece of information -- your debt-to-income ratio. Like your credit score, your debt-to-income ratio can affect whether you get a loan and what kind. Definition Your debt-to-income...

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What if You Buy a Car from a Private Seller but He Does Not Have the Title for the Car?

Purchasing a car from a private buyer who does not have possession of the title to the vehicle can complicate the transaction. Before you can take full ownership of the car, you must be able to get the title from the seller. In this situation, the seller must complete the proper steps to make sure you get the title to the car. Go to the Lender When buying a car from a seller who does not have the title, you may need to go to the auto lender to close the loan. If the person selling the car does not have the title because the lender still...

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Can You Trade in Your Vehicle if You Have a Lien on It?

You can trade in a vehicle if you still have a lien on it. A dealer must satisfy your lien holder when it takes your vehicle for a trade-in, but it can be handled in different ways, depending on your preference and the value of the vehicle. Most states also offer a tax deduction for trade-in vehicles, which can save you money. Dealer Payoff Process When you trade in your financed vehicle, your salesperson or another dealer representative must call your lender to obtain your exact payoff amount. Once you agree to a value on your trade-in,...

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How to Negotiate Buying a Honda Accord

Many Honda dealerships employ an Internet sales department, which you can use to your advantage to negotiate pricing. Internet sales people can negotiate through email or by phone call. Once you have a quote from one dealer, you can use it to shop other Honda dealers in your area and ultimately have the dealers bid for your business. You can negotiate at the dealership if you prefer, but contacting the Internet sales department is likely to warrant you a low price without dealer hassle. Instructions 1 Find out your Accord's invoice price...

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Can I Sell My Ex-Husband's Car if It Is Abandoned on My Property?

When your ex-husband has left his car on your property after a divorce, you might be tempted to sell it and use the cash for something else. Unfortunately, unless you are the legal owner of the car, you have no right to sell the car. However, because it is on your property, you can have it towed. Divorce Agreement When you went to court to work out a divorce agreement, the judge should have specified who gets what debt and property. After this, you should have transferred the things that the judge ruled are yours into your name, and your...

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How to Calculate Effective Annual Interest Rate on a Car Loan

Budgeting for car payments is an important part of a comprehensive cash-flow plan and money-management strategy. Knowing the amount of the car loan and the annual interest rate will help you calculate what your monthly payments for the car will be and how long it will take you to pay it off. However, if the interest on the car loan is compounded more than yearly, the amount of your car loan plus interest may be more than you think. An annual interest...

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The Process of Buying a Car at the Dealer

For many people, purchasing a car at an automotive dealership is a scary process, mainly because they are not familiar with what will happen when they go inside. You may expect someone to be ready to rip you off, but many dealers are staffed with decent people who will go out of their way to treat you fairly. Still, you should be completely familiar with the basics of the process to get the most for your money. The Beginning Stages Before going to the dealership, start by deciding which cars interest you. You should already have an idea...

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What Happens When My Car Lease Is Up?

Leasing a car is a way that you can get the car you really want at a payment you can afford. After the lease is up, you have to decide what to do with your car. At this point, you must deal with the dealer to explore your options. Extend the Lease One option that you have at the end of a car lease is to extend the agreement. Most car leases last for about three years originally. If you get to the end of that three years and you decide that you really like the car, you can ask the dealer about extending the lease agreement. You might be...

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Does a Debt Settlement Affect a Car Lease?

Leasing banks don't cancel contracts because of other credit issues that occur during the contract period. Once approved for a vehicle lease, expect to carry out the terms of your contract, which won't list your responsibility for other debts. Depending on your credit position, the debt and settlement listed on your credit report might decrease your chances of obtaining another lease approval in the future. During Your Lease If you've already signed a lease contract, other debts won't affect your current lease. When you first initiated...

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Will Leasing a Vehicle Help Rebuild My Credit?

You have three options when shopping for a car: obtaining an auto loan, buying a car outright with your own money and leasing a car. Buying a car outright will have no affect on your credit rating, while leasing and obtaining a loan will. It's often easier to build your credit by leasing a car than by obtaining a loan for a car. Making Timely Payments You're guaranteed to see your credit score increase if you pay your lease payments on time every month, assuming you're not harming your credit in other ways, such as late credit card payments....

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Does It Hurt Your Credit to Pay Off an Auto Loan Early?

Maintaining good credit is an important part of your financial well-being. When a person finances a car, he usually does so with the intention of doing so over the course of a predetermined amount of time. Sometimes, after purchasing a car using a loan, a person may find himself in a position to pay of his car loan at a much earlier date. Paying off a car loan early can be a good idea, but you need to know how it may affect your credit before doing so. Payments vs. Lump Sum One of the best ways to pay off your loan so that it affects your...

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How Will Co-signing an Auto Loan Affect Your Credit?

If you co-sign an auto loan, you are just as responsible for the loan as the person with whom you co-sign. The loan is reported to the credit bureaus as if it were your own loan. If your co-signer defaults on the loan, it affects your credit. You might have trouble taking out your own car loan or obtaining a line of credit. Debt-to-Income Ratio If you co-sign for a loan, you probably aren't the one who will make monthly payments. Your credit report states otherwise. Because you co-signed the loan, the account goes on your credit report,...

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How to Calculate Lease Interest & Payments

Calculating a lease's monthly interest and payments takes some homework, but it is always a good idea to fully understand such a significant transaction. A good example would be a car lease, which takes nine steps to calculate. As a part of your homework, you'll need to do some research about the car's value and also the interest rate inherent in the lease payment. Instructions 1 Determine the car's residual value at the conclusion of your lease (for example at the end of three years). You can look up the value of a three-year old model...

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What Is a Maturation Agreement Term on an Auto Loan?

"Maturation" or "maturity date" on an auto loan refers to the agreed-upon day the loan will be due in full. At that point in time, your principal debt and your interest should be entirely paid off. With an auto loan, you will have paid off your debt by its maturation term as long as you have made all scheduled payments on time. Knowing Your Maturation Date You will know your maturation date because it will be listed in your auto loan. This...

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