Monday, May 31, 2010

How to Sell a Car With a Bank Loan

If you paid cash for your car or have already paid off the original bank loan, you own your car free and clear and have access to the title -- making selling the car to another individual a relatively simple process. If you're still making payments on your car and want to sell it, however, you can't sign over the car title to the buyer because you don't have the title. The bank will hold your vehicle's title until you pay off the loan balance you...

How to Cancel an Auto Loan Contract

A car loan contract is a legally binding document. When you sign the contract, you agree to the terms listed until you pay off the auto lender. Once the lender is paid, you receive full ownership of the car, and you can do as you please. Canceling the contract before that point can be challenging, but there are several options available. These options include refinancing, prepaying and settling the debt. Instructions Refinancing to Cancel an Auto...

Sunday, May 30, 2010

The Disadvantages of Leasing a Vehicle

Leasing a car can be appealing because monthly payments are usually lower and vehicles quickly lose value after they are purchased. Yet the potential cost of leasing a vehicle should not just be evaluated in terms of a monthly payment. People who lease cars can face significant additional costs if they exceed their mileage limits, damage their cars or terminate a lease early. Lack of Ownership Leasing a vehicle does not provide the advantages...

Information About Repossession of Car

The Federal Trade Commission stipulates that your creditor has the right to repossess your vehicle as soon as your payment is late, if that is part of the terms of the loan agreement. Know your rights when it comes to auto repossession and be sure to communicate with your lender if your payment will be late. Considerations According to CNN, a repossession is considered legally done when a repossession agent is in the vehicle or when the vehicle...

Auto Financing Help

Buying a car is typically one of the largest purchases that most people make. When buying a car, many people use financing to help make the purchase a little easier. If you are in the market for a new car, there are a few things about financing that you need to keep in mind. Separate the Process Many people bundle the process of buying a car with the financing. They go into the dealership, choose a car and then finance the purchase with the dealer. When you begin the process of buying a car, you need to separate each component. Focus on...

Saturday, May 29, 2010

How to Calculate Vehicle Loan Information

Calculating vehicle loan information is important when shopping for a car. The interest rate will be given to you by an auto dealership or bank and there is not much you can do to change it---but there are other factors you can influence, such as the length of the loan and the total loan amount. Calculating vehicle loan information used to challenging for the layman. Today, it is now possible to calculate your loan and alter the variables until the...

What Is the Difference Between a Lease & Finance?

When it comes time to get a new car or house, you have three options. You can pay for the item outright with cash, lease it or get financing to purchase it over time. Both leasing and financing require you to make monthly payments, but you can take possession of the car or home right away. Both have many advantages and disadvantages depending on your lifestyle. Definitions When you sign a lease, you agree to take possession of something for a set period of time and make monthly payments. For example, when you lease a vehicle, you get to...

Friday, May 28, 2010

How Much Does a New Car Depreciate?

Cars are not investments. The moment you drive them off the lot, they begin to lose value, although some lose their value faster than others. That loss in value over a car's useful life is called depreciation. It is one of the things that attracts some buyers to the used-car market. You can purchase a nearly new car for much less than a new car, because new cars lose so much value early on. The First Year A car's depreciation during the first...

How to Finance a New Car With Car Insurance Rates

When shopping for cars, many people neglect to research and include the insurance rates on the car and often wind up in a state of shock when they discover the car's bottom-line cost. There are numerous factors to consider when buying a car, but there are some things you can do to understand how to finance a new car with insurance rates. Instructions 1 Determine how much coverage you need. If you are paying for the car in full, you have the option of insuring your car for as little or as much as you want. You can opt for the minimal insurance...

How to Rebuild Your Auto Credit

Late payments have a lasting impact on your credit history and your ability to qualify for loans, including auto loans. Buying a car when you have a low credit score can be a challenge, but there are ways to get an auto loan even if you've had some problems in your past. If you handle the loan responsibly, you can rebuild your auto credit and refinance at more favorable rates. The good payment history on your auto loan will also raise your overall...

How Do I Cancel an Auto Loan in Indiana?

Obtaining a car loan is a time-consuming task. However, canceling a car loan after you have accepted it is an even harder task. Some of the reasons you may want to cancel your car loan could include the realization that you owe more than the value of your car, a realization that your car is malfunctioning or a change of circumstances, such that you cannot handle the loan payments. In Indiana, you have a period of 18 months in which you can return your car and cancel your loan. Instructions Canceling Auto Loans 1 Contact your car dealership...

Thursday, May 27, 2010

The Drawbacks of Using a Credit Card to Buy a Car

The common ways to pay for a car when you visit the dealership include using cash, a certified check or a loan from a bank, but you may wonder about the possibilities of paying with a credit card. This method comes with a number of drawbacks that should convince you to consider all other options and possibilities available first. The Process The obvious method of paying for a car with a credit card is to swipe the card to pay for the transaction, just as you would for another type of sale. But if the dealership prefers a check, you may...

Wednesday, May 26, 2010

How To Lower the APR on Your Car Loan

The APR you receive on your car loan determines your monthly payment. People who receive a high APR typically pay more for their vehicles, and having a higher rate can limit your buying power. However, there are ways to lower the APR on your car loan. With a lower APR, you can likely afford a more expensive automobile, or reduce the payment on a moderately-priced vehicle. Instructions 1 Maintain a good credit history. Your credit score impacts...

What to Do When Your Car Is Worth Less Than Its Loan

You've probably heard the adage that a car loses value as soon as you drive it off the lot. The rapidly declining value also means that the value of your new wheels might not outlive your big loan. When you're ready for a trade-in, your old car probably won't be worth anywhere near as much as you think it should be. In fact, many people end up owing more on their cars than they are worth -- being upside down in the loan -- without even knowing it....

Tuesday, May 25, 2010

How to Get Out of a Title Loan and Avoid a Repossession

Title loans are short-term arrangements -- usually about a month -- with very high interest rates, using your car as collateral. Title loans are very dangerous because if you fail to repay the loan as agreed, the lending company can repossess your car and sell it to pay your debt. If you lose your car, your financial situation might get even worse because you cannot get to work anymore. Therefore, repaying your title loan should be a high priority. However, it's often difficult to come up with the full amount needed to repay the debt. Borrow this...

Is Interest on Car Loans Deductible?

Deducting interest you pay on a car loan can help reduce your tax liability, but you must qualify to claim the deduction. If you deduct the interest on a car loan when you file your federal income tax return, be prepared to prove that you are eligible to take the deduction in case the IRS selects you for an audit. Generally, the interest you pay on a car loan is not tax deductible, although there are a few exceptions. Personal Interest You...

Monday, May 24, 2010

How to Transfer Vehicle Ownership in the State of Maryland

Getting rid of an old car in Maryland is not as simple as just giving it away. When you sell your car, there are procedures in place in the state of Maryland to ensure that the title transfers along with the vehicle ownership. The process provides peace of mind and assurance in knowing you will not be held fiscally responsible for any tickets or accidents involving the car once the vehicle is no longer in your possession because it has been sold....

Saturday, May 22, 2010

Consumer Advice for Buying a New Car

Buying a new car is a different experience than buying a used one. Be aware that you are paying for a warranty and peace of mind when buying from an established dealer, but you won't necessarily be getting more car for your money than if you bought a vehicle that's one or two years old. Choosing the Car for You Your job as a new car buyer is to sift through the spectrum of economy cars, sedans, trucks, SUVs and vans to determine what vehicle...

How to Reduce Your Auto Loan Interest Rate

Car loan interest rates vary greatly and are based on a number of criteria, including your credit history and rating, down payment, type of vehicle purchased, and whether it is new or used. If your current auto financing arrangement offers unfavorable terms, you may be able to obtain a better rate by refinancing your car loan, with possible savings of hundreds of dollars over the life of your loan. Instructions Instructions 1 Before seeking...

Should I Get Gap Insurance for My Leased Car?

New cars depreciate at a very rapid value and this depreciation can put you in a risky situation when you are the owner. Gap insurance is a type of insurance product that is designed to protect you against this depreciation risk. It is available for those buying new cars as well as those who lease. Depreciation of Cars When you buy or lease a new car, you might be surprised at how quickly the value of the car depreciates when you drive it off the lot. It could potentially depreciate thousands of dollars within a very short period of time...

Vehicle Buyer Rights

Buying a vehicle is a significant investment as part of your transportation needs or personal enjoyment. Whether it's a new or used car, truck, aircraft or motor home, you likely have special rights under state laws when you purchase a vehicle. But you can only enforce those rights if you understand them beforehand. Disclosures and Warranties State laws protect vehicle buyers during the purchase process and beyond. These laws require certain disclosures dealing with vehicle condition, mileage and history. For example, in Maine a dealer...

Can I Have a Co-Signer on an Auto Lease?

A car leasing company may pass on your application if you have no credit history or a bad credit history. But adding a person to the lease agreement can get your application approved, and quickly put you behind the wheel of a new automobile. What is a Co-signer? A co-signer is a person who promises to manage the lease payments if you default. Leasing companies are particular about whom they approve for financing. Someone with a horrible payment record or no credit history can run into problems and have the application rejected. By adding...

Thursday, May 20, 2010

Can a Repo Man Take Your Car Without Letting You Know?

In the United States, vehicle repossession laws are mandated at the state level to protect both consumers and lenders. In most states, a repo man can legally take your vehicle without your permission, as long as the car loan agreement is in default. However, repo men cannot violate your state's breach of peace laws, which include any unnecessary harassment or unlawful entrance to your home. Breach of Peace While a repo man can take your car...

Wednesday, May 19, 2010

How to Refinance an RV Loan

You know it is time to refinance your RV when interest rates have dropped a point or two since you obtained the loan. You will save quite a bit of money over the life of the loan with a lower interest rate, especially if you have a few years left to pay. Instructions How to Refinance an RV Loan 1 Find out the value of your RV. The value is based on the year, make and model of the RV as well as the mileage and special features. You do not need...

How to Lease a Car With Less Than Perfect Credit

If your credit history reflects negative entries such as late payments on debts, credit card charge-offs or a bankruptcy, this will leave you with a much lower credit score than someone who pays all debts on time and has never had to file for bankruptcy. When you attempt to lease a vehicle, the automobile dealership will pull your credit score to determine the risk it will incur by allowing you to lease the car. Having less-than-perfect credit, however, will not bar you from ever getting a vehicle lease. There are steps you can take to increase...

How to Finance a Fifth Wheel Camper

If you want to buy a fifth-wheel camper, you may have to finance your purchase with an RV (recreational vehicle) loan. These loans often have different rules from other loans. Some lenders require you to take out a minimum loan of $5,000, while others refuse to finance fifth-wheel campers manufactured by companies that are out of business or that have declared bankruptcy. You will also need good credit because lenders categorize fifth-wheel campers as luxury items. Despite these differences, financing a camper with an RV loan does not have to be...

How to Finance a Used Car From Another State

When you find a used car in another state that you want to purchase, financing it does not have to be any different than buying a vehicle in your state. Financial institutions do not make lending decisions for auto loans based on where the vehicle is purchased in relation to where you reside. Financing decisions are based on creditworthiness. Instructions 1 Apply for financing with the out-of-state car lot or car dealer. Just fill out the standard credit application. Some car dealers have online credit applications on their website. If you...

Tuesday, May 18, 2010

How to Negotiate the Down Payment With a Used Car Salesman

Down payments aren't always required as a term of loan or lease approval. Borrowers can often finance the total cost of the car, including taxes and fees, depending on credit. Negotiating the down payment amount of a vehicle finance or lease is the same as negotiating the car's retail value. If you have poor credit and apply to a dealer for financing, however, the lender may require a percentage of the vehicle's value as a down payment, meaning your loan was approved but the lender requires increased equity in the vehicle. Instructions 1 ...

Friday, May 14, 2010

Pros of Leasing a Car

If you prefer driving a new car every few years and don't mind an ongoing monthly payment, then leasing may be for you. Other than Bankrate.com's warnings to be aware of leasing mileage restrictions and the need to keep the car's condition as close to original as possible to avoid penalties when you return it, there are many pros to leasing a car. Leasing is a great option for many people, but gather as much information as possible before you make the financial commitment. Up Front Costs LeaseGuide.com notes that one of the most significant...

Thursday, May 13, 2010

How to Extend the Lease on a Nissan

When you lease a new vehicle at a local Nissan dealership, the financing goes through Nissan Motor Acceptance Corporation, or NMAC. As your lease period draws to a close, you will get communication in the mail from NMAC to remind you that the lease period is coming to an end and to let you know of your options. NMAC gives lessees three options. You can return the Nissan, you can get a new Nissan or you can keep the car. Traditionally, keeping the car means purchasing it, but NMAC does allow for lease extensions as well. Instructions 1 Look...

Can a Lien Holder Reposess a Vehicle if Only Partial Payments Are Made in the State of Texas?

The Federal Trade Commission warns borrowers to obtain any verbal agreements with your lender in writing, including an agreement for partial payments. Otherwise, you must abide by the payment requirements stated in your original contract. The state of Texas doesn't allow "breach of peace" during the repossession process, such as threatening you or taking the car from a closed garage, but the lender sets the terms for the vehicle repossession, which you agreed to when you signed your contract. Review Your Contract To determine when and why...

Wednesday, May 12, 2010

Can You Buy a Car at Age 17 Without a Parent's Consent?

Most 17-year-olds look forward to getting their first driver's license. However, they may not be able to purchase their own vehicle until they turn 18. Most states do not allow minors to sign contracts or legal documents on their own. Therefore, 17-year-olds usually have to wait a year, or get parental consent to purchase a vehicle. Vehicle Ownership Vehicle ownership laws differ from state to state, according to CarInsurance.com. In some states, only people over the age of 18 may own vehicles, while in other states minors can legally own...

Sunday, May 9, 2010

What Happens if I Can't Make the Payments on a Car Loan?

Any borrower can face the inability to make a car payment because of unexpected circumstances. While this is sometimes a temporary problem, you may find it is impossible to make any future car payments. Whichever the case, there are consequences when you can't make your car payments, and you have options. Options You can call try to sell your car if it has equity in comparison with its payoff amount. If you can sell your car for more than you owe, you can keep any profit you make. You can also purchase another car and trade your current...

Saturday, May 8, 2010

What are the Benefits of Buying vs. Leasing Vehicles?

Leasing a vehicle offers several benefits to buyers who can maintain a somewhat restrictive contract. Leasing requires a yearly mileage allowance, specific term, possible penalty fees and maintenance requirements. If you can't fulfill those contract requirements, however, then a finance or cash purchase may offer benefits over a lease. Ownership If you are financing or purchasing a vehicle, you can expect to own it immediately or at the end of your loan term. When leasing, the leasing bank owns the vehicle, not you. Rules and requirements...

When Two People Are Signed on a Car Loan Who Is Entitled to Have the Vehicle?

Two important documents to be aware of with your car are the loan and the title. The loan reflects the debt on the vehicle, and it can have multiple parties named. The title reflects ownership of the vehicle, and multiple parties may also be listed here. The names on the two documents do not necessarily match. If two people are on a car loan, the car still belongs to the person who is named on the title. Joint Auto Loan With a joint auto...

Thursday, May 6, 2010

How to Get a Car Loan on Severance Pay

Losing a job can have significant financial implications, and one of the most devastating results involves the ability to obtain a loan. Lenders generally do not approve loans for borrowers without a steady income. If you receive severance pay, though, you can obtain a loan for a car by following a few key steps. Instructions 1 Establish a strong credit score. Borrowers who do not have a good credit history can find it difficult to secure an auto loan, and the lender likely applies greater skepticism if a borrower has no work income. While...

Alabama Laws on Title Loans

Alabama title loans are short-term, high-interest loans secured by the title of a vehicle. If the owner does not pay a title lending business monthly interest on the title, the business may legally seize the vehicle. In Alabama, title lenders are considered to be pawnbrokers, and they do not fall under the restrictions of the Small Loan Act. History Alabama title loans are an issue of strong legal debate, as title lenders are accused by some...

How Can I Buy a Car With an Already Upside-Down Car Loan?

You might still be able to obtain another car loan even if you're upside-down in your current car loan, meaning you owe more than the car's worth. You might have to provide a down payment covering your negative equity. Otherwise, your new car's loan value might be as high as 120 percent if you have excellent credit, which helps to cover up negative equity. If you're purchasing a new car, try to find one with rebates to help offset your negative equity and minimize your down payment amount. Instructions 1 Go over your available funds and...

Wednesday, May 5, 2010

How to Calculate the Balance of a Car Loan

Car loans usually extend over a period of years, and you may find it necessary at some point during the term to calculate the remaining balance. You'll need to know this if you want to pay off the loan early, or if you're trading the car in, or even if you've had an accident and your insurance doesn't pick up the entire amount. Here's how to calculate the balance of your car loan. Instructions 1 Obtain the original amount of the loan. Your...

Monday, May 3, 2010

How to Buy a Car From a Seller

If you are buying a car from a private seller, the process is slightly different than buying from a new or used car dealer. The main difference is that you cannot get financing through a seller. Instead, you must already have financing or have the money available to pay for the purchase of the car. Other than financing, you will find the car-buying process to be almost identical when buying from a private seller. Instructions 1 Look for private...