Can a Car Dealer Submit a Claim for Damages on a Repossessed Vehicle to My Insurance Company?

A dealership cannot put in a claim for your repossessed vehicle through your insurance company, nor would it want to. Dealerships do not extend loans directly. Your lender pays the dealership for the vehicle you purchased and can collect for the loan amount to which you agreed in your contract. Full-Coverage Insurance Although a full-coverage insurance policy is required for your vehicle while you have a loan on it, your lender cannot put in an insurance claim on your behalf. Your lender is listed as the policy's lost payee, not the policyholder....

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Long Term Loaning for a Car

At first glance, a long term car loan might appear an attractive option because of a lower monthly payment than a comparable short term loan. The Lendingtree website defines a long term loan as 72 or 84 months. While some may argue that choosing a longer loan term negatively affects equity and interest payments, this isn't always true. Interest Rates Your approved interest rate depends on your credit, the amount you borrow and the age of the vehicle you purchase. Lenders typically offer the same interest rate for terms up to 60 months,...

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How to Refinance a Vehicle With a Down Payment Required

If you want to lower the interest rate on your vehicle's loan, refinancing can help you save money by paying off the old loan and getting a new one with better terms. However, when you go to refinance, you might find that your car is worth less than you owe on the loan and the lender is not willing to refinance because the loan will not be fully secured by the car. In this case, the lender might require that you make a down payment on your refinance to get the loan balance to less than the value of the car. Instructions 1 Look at your most...

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What Is a RV Short Sale?

If you have an RV listed for short sale, it usually sells at a lower price. A short sale occurs because you are facing financial difficulties and can't afford to make regular payments toward your RV loan. Selling the RV as soon as possible reduces your debt and minimizes your lender's losses. Failure to Make Loan Payments If you go through a financial hardship and have a loan on your RV, you may find that you can no longer afford to make...

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Can I Consolidate My Car Loan?

You might be able to save money when you own several auto loans by consolidating them into a single account. It is possible to consolidate a single auto loan into a package of other loans, but this works best if you own a home. Before you consolidate, however, make sure the trouble of consolidation helps you out. Identification Consolidating a car loan happens like consolidation of any other loan -- by finding a lender willing to give you...

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How to Transfer My Auto Lease

If you want to cancel or end your lease early, you can avoid penalty fess and payments due by transferring your lease to another person. Depending on the bank you lease through, you may have to remain on the lease with the other party, although some banks do allow complete transfers. It is most likely that you will lose any money you put down towards the lease, but you won't have to continue making payments. Instructions 1 Call the bank that you lease through; have your account number and current vehicle mileage handy. Tell a bank representative...

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Should I Put Some Money Down If I Do 0% Automobile Financing?

Edmunds.com suggests providing a 20 percent down payment toward your new-car loan to cover the first year of depreciation. A zero-percent loan that doesn't require a down payment amount may seem attractive, but you should still aim to create equity and obtain a monthly payment that fits your budget. Zero-Percent Loan Requirements Check with your loan provider to determine the loan term and requirements of obtaining your zero-percent loan. Most new-car manufacturers require a specific term or a down payment requirement for advertised monthly...

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How to Get a Pre-Approved Loan for a Car

Getting pre-approved for a car loan can make your car shopping experience much easier. When you are pre-approved, you know how much you can spend, you know how much it will cost you to own your new car each month and you do not have to worry about haggling with the dealership over how you will finance your purchase. Prior to meeting with your bank, there is information you need to collect. Also, there are some basic guidelines you should understand to make sure you get the best deal for you -- and not the best deal for the bank. Instructions...

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How to Extend My Leased Car

Some banks allow current lessees to extend a vehicle lease contract. However, don't assume your leasing bank allows lease extensions without first speaking to a bank representative. If the bank doesn't allow an extension, you must return your car or pay the lease buyout price and purchase the car. Continuing to make payments after the lease contract is over results in an account default, as you must abide by the end-of-lease options your bank stated in the leasing contract. Instructions 1 Call your leasing bank and have your account information...

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Effects of Refinancing a Car on a Credit Report

When you refinance an auto loan, a lender closes the original loan account and opens a new account. Therefore, a refinanced loan will cause a few changes in your credit report, but those changes usually have a small impact on your credit score. You may be able to avoid refinancing altogether if your lender is willing to change your loan terms without requiring you to refinance. Inquiries The lender that reviews your application to refinance your car will check your credit. That check results in a notation on your credit report that the...

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Can I Trade in My Car at a Dealer If I Am 60 Days Past Due?

It is unlikely you can trade in your vehicle while 60 days past due on another car loan. Unless you pay cash for your new purchase, possible auto loan providers prefer that all accounts are up-to-date, so your loan application will likely be declined. You might be able to use a cosigner for a new loan, even if your current loan is past due. Paying the Past Due Amount You can avoid trade-in issues by paying off your past-due loan amount before applying for another car loan. You're likely to run into issues when financing while your account...

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How to Handle a Car Repossession

If you've defaulted on your car payments, your car loan company has the law on its side. It is perfectly legal for the company to seize your car. Defaulting may be different for each company, so make sure you read your contracts carefully. Know your rights with a car repossession so you can handle it professionally and properly. Instructions 1 Allow the repossession company to seize the car, and don't try to stop it. The company is protected...

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The Advantages of Leasing Vehicles

When looking to obtain a new car, you should weigh the option of leasing the vehicle as opposed to purchasing it. If you plan to keep the vehicle for a long period of time, purchasing is likely the better choice to eliminate things such as excess mileage charges. If you plan to keep the vehicle for only a short period of time such as two to four years, leasing can offer certain advantages. Keeping Up with Trends Because leasing allows drivers to keep a vehicle for a relatively short period of time at an affordable monthly rate, it is ideal...

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Do's & Don'ts About Buying a New Car

Buying a new car can be confusing, and not understanding the entire purchase process can be costly. For many people, a car is a requirement to get to and from a job. Unless you live in a metropolitan area with a public transportation system, you need a vehicle. Educating yourself about what you should and should not do when purchasing a new car may save you from paying too much or making a poor decision. Research Fees A purchase contract...

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Credit Requirements for a New Car Purchase

Depending on the type of financing you intend to pursue for your new car purchase, various credit requirements may exist. For example, special interest rates offered by the manufacturer often require good to excellent credit. Or, poor credit buyers may be required to offer a down payment for a loan approval. Common Requirements No matter where you submit your auto loan application, expect to provide a valid Social Security or Tax Identification number on your credit application. You'll also need proof of identity, which states your date...

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Car Payments Vs. Paying the Car Off

The process of buying your brand new car was perhaps a long and tedious one, from picking the brand and model to picking the right color. But now the focus is on your ability to pay off your loan. As a general rule, the faster you can pay off the loan, the better, because it will save you money in the long term. Affordability First of all, ask yourself if you can afford to pay off your car loan in its entirely. If you have, say, $15,000 left on your car loan and have $15,500 in your bank account, you need to consider if you can afford to...

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Debt to Income Ratio to Purchase a Car

Debt to income ratio is the amount of debt a person has compared to the amount of income a person makes in a year and is important for buying a car. By determining the debt to income ratio, a person can determine if they have the available funds to purchase a car with financing and can reduce their interest payments. The lender looks at debt to income ratio because a lower debt to income ratio shows a person's ability to pay back a loan. A higher...

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How to Calculate a Car Loan Payment Rate

Car loans provide a borrower a means to finance the purchase of a car. The borrower is required to repay the money in monthly installments over a set period of time. Before purchasing the car, the borrower needs to calculate the estimated monthly payment to determine whether the expense can be afforded each month. If not, the borrower should not purchase the vehicle. Instructions 1 Determine the interest rate each month that the lending service...

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What Happens When an Auto Loan Matures With Monies Owed?

An auto loan document outlines your payment terms. There should be no remaining balance when a car loan matures, assuming that you were making the monthly payments as scheduled. A typical maturity on a car loan is 48 months, or longer for new vehicle financing. You have to complete all your payments to have the account settled as paid in full. Auto Loans When financing your car auto, read your loan documents carefully. The most important...

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Advice for a Woman Buying a New Car

When it comes to buying a new car, the car itself makes no distinction between men and women. However, women may find that dealers sometimes do. An ethical dealer, of course, will treat all customers with honesty and respect. Women who are looking for a new car should be prepared to deal effectively with those few who do not. The fact is, a car dealer's goal with every customer is to take as much money for the sale as possible, and it's a generally...

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Do You Have to Pay the Difference When You Surrender a Vehicle?

When you surrender a vehicle, known as voluntary repossession, you must still pay your loan balance if the bank doesn't recoup its total loss when reselling the car. A repossession, whether voluntary or involuntary, doesn't excuse your contractual responsibility to pay the loan's total balance. Determining the Difference Once your vehicle is resold by your bank, you'll receive a letter stating the amount your vehicle sold for and the balance you owe on the loan. Before the bank sells the car, you'll receive a letter that states the date...

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How to Get Rid of a Truck Debt

Owning a new truck often comes with a price other the price tag. The other "price"' is the motivation and determination to pay off the truck debt. In the beginning, trimming a budget to make payments seems minimal; but after several months, it can become challenging. If you are determined to keep your new truck and are willing to make a few concessions, getting rid of that automobile debt will be easy. Afterward, you will be able to enjoy the nice ride even more knowing that it's paid for. Instructions 1 Make a list of all bills and necessary...

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How Is the Length of a Loan Determined on a Car Loan?

A range of factors determine the length of term for a car loan. The car buyer has a lot of influence on the length of the loan term. The vehicle manufacturer, type of vehicle and the chosen lender all affect the number of payments for a particular loan. Typical Loan Terms Auto loan lenders provide rates for loans of 2, 3, 4, 5 and possibly 6 years. These loan terms equate to 24, 36, 48, 60 and 72 payments, respectively. As the term of the...

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How to Negotiate Low Car Interest Rates

Auto lenders charge interest on car loans in order to earn money on the loan. Unless you finance an automobile during a 0 percent interest promotion, you can expect to pay interest on a vehicle loan. Borrowers with low interest rates will have a lower monthly payment, and those given a high rate pay higher monthly payments. Savvy buyers are interested in ways to obtain the lowest rate possible. Instructions 1 Skip the 60-month term. Agree to finance your automobile for less than the traditional five-year term to get a lower rate on the loan....

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What to Expect at a Car Repossession?

Not knowing what to expect for a repossession can prove worrisome. If you have missed a car payment -- or more likely, two or more payments -- your bank will try to contact you and arrange a solution before it attempts repossession. You should get in contact with your bank (if you haven't already) to avoid an involuntary repossession, meaning a repossession company comes for your car. The repossession company does not need to notify you of its collection, although repossession details should be further explained in your contract. Voluntary...

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Is It Easy to Get a Car Loan if You Have an Open Car Loan?

Unless you have excellent credit and an acceptable gross annual income, you may not find it easy to get an additional car loan if you already have an open car loan. If you plan to trade your financed vehicle to a dealer for another purchase, however, obtaining a loan approval might be easier. Consider the information that auto lenders review to determine whether a second car loan is possible. Debt-to-Income Ratio Consideration To obtain a second car loan approval, you need sufficient and stable income. You must prove to your lender that...

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Who Has to Buy Car Insurance on a Co-signer Loan?

When applying for an auto loan, a lender may ask an applicant if he has a co-signer. For instance, a parent with established credit might co-sign for a child with no credit history or a husband might co-sign for a wife. When it comes to purchasing insurance for the car, both borrowers on the car loan must decide who will buy the insurance policy. What Is a Co-Signer Loan? A co-signer loan is an arrangement where one person backs another's car loan application for approval. Both people are responsible for paying the lender for the loan....

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How to Eliminate a Car Debt

Buying a car is exciting; however, paying for it sometimes ruins the pleasure of owning a nice ride. Eliminating a car debt can be easy for someone who is determined and quite challenging to those who do not like making concessions. Depending on how determined you are toward eliminating a car debt, this will determine how fast you can get rid of that car debt. The principle is: in order to gain something, one must be willing to give up something. Instructions How to Eliminate a Car Debt 1 Write down in a notebook a list of current bills...

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