What Happens When You Can't Pay the Claim Judgment Difference of a Car Loan?

If you are unable to make payments to your lender after a repossession, a court judgment likely entitles the lender to collect the balance due on the loan. While your lender may still accept a payment plan if you act quickly, it can garnish your wages to collect the money you owe. Payment Plan You might not have to pay the total judgment amount. Contact the party handling your account, whether the lender, its lawyer or a collection agency. Review your summons, contact your previous lender or ask the court to obtain the contact information...

Read More

How to Request an Automobile Payoff Letter

When buying a new car, you may prefer to sell the old car outright rather than roll the old loan into a new car payment. Although you could wait to buy the new car until you make the monthly payments and the loan is satisfied, you do have the option to pay the car loan early. Request an automobile payoff letter from the loan originator. An automobile payoff letter provides the total amount of money needed to pay off the loan on your car and receive...

Read More

How to Shop for a Vehicle at a Car Dealership

Buying a car is an experience that almost everyone goes through at some point, and walking into a dealership for the first time can be fairly intimidating. With the many sales tactics that dealers use, it helps to be able to go into the situation with some knowledge of what to expect. Otherwise, you may be pressured into a deal that you are not comfortable with and a car that you do not really want. Instructions 1 Research the car that you are interested in. Get on the manufacturer's website and find out everything that you can about the...

Read More

How to Get Current for a Defaulted Car Payment

When your car payment is even one day late, it's considered to be in default. Late payments can cause a variety of problems, including late fees and interest accrual. If you're at least 30 days late with a car payment, it will be reported on your credit report, which can lower your credit score. Falling too far behind in your car payments can lead to repossession of your car. To get current on your payments, you'll need to make payment arrangements...

Read More

What Happens if I Cosign on a Car With Someone & Then They Die?

A cosigner of a car loan is legally responsible for repaying the loan if the person who took out the car loan defaults in his repayment obligations. If the original borrower dies, the cosigner has legal liability to resume the repayment obligations. The lender can file suit against the cosigner to enforce payment of the car loan should the cosigner refuse to assume the repayment obligations of the deceased borrower. Identification Borrowers who are relatively young or who have a poor credit history may find it difficult to secure a car...

Read More

First Steps for Car Buying

Some people love buying new cars while others despise the entire process. Buying a car can be confusing, especially if dealership sales people talk fast and act pushy. Whether you love or hate car buying, doing your homework before you walk through the dealership doors saves time, money and peace of mind. What You Can Afford Examine your finances to determine how much you're willing and able to spend an a car. You might decide that you don't have enough funds to buy a car outright, in that case you'll need to take out an auto loan requiring...

Read More

Automobile Sales Tax Calculations in Tennessee

The Tennessee state sales tax on an automobile is 7 percent of the purchase price less the value of a trade-in. Tax rates differ by county. For instance, the Knox County sales tax is 2.25 percent of the first $1,600 of the sale price. For purchases in excess of $1,600, the sales tax is 2.75 percent. Sales Tax Tennessee imposes a sales tax of 7 percent of the purchase price of the automobile less the total value of the trade-in. For instance,...

Read More

Why to Lease a Car Instead of Buying

Why to lease a car instead of buying is a question with no absolute right or wrong answer. There are many advantages to leasing a car instead of buying one, including lower monthly payments and a shorter commitment period. Lower Down Payments Dealers often require lower down payments for leasing a car than they do for buying a car through financing, according to SmartMoney.com. In fact, some dealerships don't even require any down payment...

Read More

What If My Truck Gets Repossessed?

Depending on your lender, you might have an opportunity to get back your repossessed truck. Your truck was likely repossessed because of nonpayment, so the bank is within its rights to repossess it. Once your truck is repossessed, locate it to obtain your belongings. Consider purchasing it back from the bank, if possible. Locating Your Truck A repossession company can take your truck from most locations. It can be taken from your home, place of employment or from a parking lot. If you are able to meet the repossession company before it...

Read More

The Best Financing for a Car Loan

Taking out a car loan is usually a straightforward process, one you can complete in anywhere between a few hours to a few days, depending on lender requirements. Before you visit a dealership and find yourself signing loan paperwork, learn about the best financing option for a car loan, as well as the details that could possibly help you get a better deal. Car Financing To get financing to purchase a car, you must have an acceptable credit score, history, debt and income. Even though the loan is secured by an asset (the car), the lender...

Read More

What if a Military Spouse Defaults on a Car Loan?

Marrying someone in the military means getting used to uncertainty. Not just uncertainty about your spouse's safety but about her financial affairs as well. Congress passed a law that helps diminish some of this uncertainty. It may help your military spouse hold onto her car after defaulting on the loan. Servicemembers Civil Relief Act The Servicemembers Civil Relief Act is a law designed to protect members of the military from the financial...

Read More

I Need a Car Financed & Have a Bad Credit History

Having bad credit doesn't change the fact that you need a reliable automobile. Auto lenders vary and some work specifically with people who have poor credit. Getting an auto loan with bad credit can help improve your score -- providing you pay the loan on time each month. Learn your options for financing a car with a bad credit history. Compare Loan Offers Knowing the different loan options available to you helps you get the best financing deal with a bad credit history. People with bad credit typically pay higher finance fees on auto loans....

Read More

How to Find the Cost of Renewal of Car Registration

The process you follow to find out your car registration renewal fees will vary depending on the state in which you live, and on the make and age of the vehicle. Each state sets its own registration fees, therefore there is not one standard fee. Each state's department of motor vehicles allows owners to access their information online to find out what payment is due and then often pay the amount using a debit or credit card. Instructions California 1 Visit the California DMV vehicle registration renewal page (See Resources). 2 Enter...

Read More

If You Cosign an Auto Loan Does the Cosigner's Name Have to Be on the Title?

When you take out a collateral secured loan, the lender typically requires at least one of the borrowers to have an ownership interest in the property being financed. However, borrowers and property owners are not always one and the same and, in theory, a lender may allow someone to take out a loan secured by a property that he does not own, if the property owner agrees to the lien being placed. Security Interest When you take out an automobile loan your lender places a lien on your vehicle. In order for the lender to place that lien, you...

Read More

How to Fix Your Credit if There Is a Vehicle Repossession

Banks and auto lenders do report car repossessions to the credit bureaus, and repossessions stay on credit reports for seven years. But while a repo remains on your file for this length of time, the effects of repo can reverse itself if you practice good credit habits. A drop in credit score and higher rates are typical after losing a car to the bank. However, a repo on your record doesn't have to result in a permanent low score. Instructions 1 Get another auto loan from a bad credit or subprime auto lender. Start rebuilding your credit...

Read More

How to Make an Auto Loan Payment

Before auto loan companies moved online, making an auto loan payment meant sending a personal check in every month to your lender or going into a bank branch and making the payment in person. Even though you still use this process today, online payment centers make payments easier for auto loans. With the Internet, and the introduction of debit cards, many convenient options to make automatic loan payments on your vehicles and maintain good standing...

Read More

What Benefits Does the Cosigner of a Car Have in Texas?

When a borrower has poor credit or a limited credit history, she may be unable to acquire an automobile loan without a cosigner. While cosigning a loan may benefit the borrower, it has very limited benefit -- but significant risk -- to the cosigner. The benefits and burdens of obtaining or cosigning a loan are outlined in the Uniform Commercial Code and are not specific to an individual state. However, the Texas Office of the Attorney General explicitly lists warnings of the risks posed to the cosigner. Indication of Risk If a cosigner...

Read More

The Average Depreciation of a New Car Off the Lot

Depreciation is one of the greatest costs in owning a car. Since cars have a limited useful life, a car that is older or that has received more wear and tear has less value than a car that is newer and in better shape. Due to the effect age has on the value of a car, the average car is worth only a small percentage of what it is purchased for at the end of five to seven years. Immediate Depreciation Depreciation begins the moment a new car...

Read More

What Does it Mean to Refinance an Auto Loan?

Refinancing a car loan is much like a loan transfer. You must apply for a new loan to pay off your old lender. Reasons for pursuing a refinance vary. Often, refinancing presents an opportunity to save money, either by lowering your loan's interest rate or changing your term to lower your monthly payment amount. Why Refinance Check current interest rates to determine if your rate is higher than average. If substantially lower, you can save thousands of dollars over the term of your loan and decrease your car payment. Even if interest rates...

Read More

What Does Cash Back Mean at a Dealership?

"Cash back" is a term frequently heard or seen in sales advertisements from dealerships. The dealers usually provide the price of the car and then stress that you can get cash back with signing. Unfortunately, they often don't detail exactly what cash back means or what is involved, which can leave you with questions. Definition Cash back is a rebate that auto manufacturers, not dealerships, provide. The manufacturer authorizes the dealerships...

Read More

0% Financing Credit Restrictions for Cars

A zero percent loan saves you money in interest payments over the term of your loan. Despite its interest-saving benefits, you'll find that restrictions apply to loan approval. Term restrictions may increase your car payment dramatically. If you have trouble affording a zero percent loan or obtaining an approval, other financing options may still save you money. Credit Standing To obtain low-rate financing, you must have good-to-excellent credit. You can often find this requirement in the fine print of advertised offers. If you don't have...

Read More

How to Avoid Mileage Penalties on a Lease

Leasing a car can work if you don't want to commit to one car for the next five years. People who lease can swap out their cars every two or three years, and often make smaller monthly payments than those who buy. But with leases come potential mileage penalties when the lease expires. Learn how to protect yourself and avoid a huge out-of-pocket expense. Instructions 1 Purchase adequate miles at the lease signing. Lease contracts permit drivers to put 10,000 to 15,000 miles on the car per year. Avoid mileage penalties by negotiating enough...

Read More

How to Get a Deferment on an Auto Loan

When you fall on hard times financially, you really need all the help you can get before the situation becomes impossible to turn around. One of the first things you can do to help your situation is call your auto lender and request a deferment. A deferment is when the lender takes one or possibly two payments that you currently owe, and adds them to the end of your loan. Here's how to get one. Instructions 1 Grab your loan paperwork or payment booklet. You have to refer to your account number frequently during this process so have it on...

Read More

When to Terminate a Car Lease

Leasing a car is an alternative to buying that gives you the chance to have a new car every few years. However, leases prevent you from building equity in your vehicle as you do when you buy and finance a new vehicle. Leases also include terms that require you to keep the vehicle for a specified amount of time unless you can find a creative solution to terminating the agreement. When You're Out of Options You may choose to terminate your lease early when you feel as though you don't have any other options. For example, perhaps you're about...

Read More

How to Sell a Lease Outright

Car leases allow you to use a car for a designated period of time, the lease term, in exchange for regular payment during that time. At the end of the term, you have the option to return the car to the dealer or buy it at the buyout price. If you want to get out of the car lease before the term is completed, you may have penalties to pay. Instead of returning the car and paying penalties, you can sell the lease to a willing buyer. Instructions...

Read More

Should I Buy a Service Contract for My Vehicle?

When you purchase a new vehicle, two different agreements can provide repairs and service for your vehicle in the future: warranties and service contracts. Every new vehicle comes with a manufacturer warranty, but service contracts (also called extended warranties) are optional agreements that buyers make to provide for necessary vehicle services not covered under the manufacturer warranty. Warranty vs. Service Contract Every manufacturer issues a warranty with the purchase of a new vehicle at no cost to the buyer. This warranty stipulates...

Read More

Can a Co-Signer Refinance a Car?

As a cosigner, you can refinance a car loan in your own name as long as your credit is good enough to obtain a loan approval. If your credit has suffered since your original loan, refinancing might not prove worthwhile. The vehicle's co-owner must agree to give up his portion of ownership before you can refinance. Obtaining a Co-owner's Permission The person you cosigned for, also known as the vehicle's co-owner, must agree to sign the vehicles title to release her portion of ownership. Talk to the co-owner to ensure she'll sign her name...

Read More

What Happens When I Return a Lease With Equity?

Leasing is a method of financing a vehicle that offers lower monthly payments than are possible with conventional financing. Leases are designed to pay off the depreciation portion of the vehicle. A lease is often presented to a consumer as only paying for the portion of the car that you use. At the end of the lease term, you return the car to the leasing company unless you make other arrangements. Equity A person who leases a vehicle does not build equity in the vehicle. As a result, the lessor of a vehicle does not have any ownership...

Read More

Things to Know When Leasing a Vehicle

Leasing a vehicle is a financing option car buyers can choose as an alternative to taking out an automobile loan. This financing option can lower monthly payments for drivers and eliminate some maintenance issues on the vehicle. Before deciding on a lease for your next vehicle, you should evaluate the terms of the lease to determine if it is the best option for financing the car. Lower Payments The vehicle's depreciation over time, not the...

Read More

Can I Lease a Car After Bankruptcy?

After bankruptcy, getting financing for anything can be a challenge, because bankruptcy drops your credit score. Larger loans like those associated with vehicles are particularly difficult to get. You may have to work harder to get a lease following bankruptcy than if you never had filed, but your bankruptcy should not prevent you from getting a vehicle. Lender Requirements Regardless of whether you lease or buy a car, dealers look for specific...

Read More

How Much Money Do I Put Down When Leasing a Car?

Offer as little of a down payment as possible when leasing your vehicle. If your vehicle is declared a loss by your insurance company, you'll lose any monthly payments or down payment that you put toward the lease. However, if you want to lower your monthly lease payment, you may have to provide a down payment to do so. Vehicle Loss While leasing a vehicle, your bank requires that you maintain a full-coverage insurance policy over the term of your contract. This policy pays for vehicle repairs or its market-value to your bank if you should...

Read More

How to Fix an Upside Down Car Loan

Most people buy cars, especially new cars, with a car loan that can last five or six years, or more. Automobiles, however, depreciate rapidly. When the car is first driven off the lot it depreciates significantly because it is no longer a new car. So almost from the beginning, a car loan is upside down because you owe more than it is worth. Instructions 1 Determine how much you owe on your car loan. You can call the bank that holds the loan to find out exactly how much you owe. 2 Conduct research to find out what your car is worth....

Read More

Is Refinacing an Auto Loan Bad for Your Credit?

An automobile loan is a type of secured loan used to purchase a new or used vehicle. If your terms, interest rate or loan length are not the way you would prefer them to be, you can refinance the auto loan. Refinancing creates an entirely new loan with different terms, but it may also affect your credit score. Credit Score Basics Your credit score consists of a calculation by the Fair Isaac Company, also known as your FICO score. The company uses many different factors for your score calculation, such as length of accounts, your account...

Read More

What Is Considered High Interest on a Car Loan?

Between promotional rates to encourage you to buy a new car and the varying rates between new and used car financing, it can be hard to figure out if you are getting a good financing rate or being ripped off when you take out a car loan. To discover this, you need to do just as much homework looking into ways to finance your car as you did to pick out the car you want to buy. Economic Conditions The state of the economy will drive interest rates up and down. This includes interest rates on car loans. Rates can be affected by the national...

Read More

How Do I Get My Car Out of Forfeiture?

Getting your car out of forfeiture is possible, but it takes persistence and follow through. It is your responsibility to communicate with your lender. Without consistent communication, your lender will repossess your car. When talking with your lender, you have to have something to offer, such as money on a specific date, and a plan to get caught up on the total you owe. Be prepared to pay more than your normal payment. Instructions 1 ...

Read More