What Happens When I Trade a Car in With Money Still Owed on It?

Even though many consumers are not familiar with the process, dealers are generally familiar with how to manage a car deal when you trade in a car with money still owed on it. Essentially, you are selling them one car and buying another, and your current loan payoff is important to you and the dealer. Trade-In Basics Trading in one vehicle when buying another is common practice in the U.S. car market. While car owners can often get more money...

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How to Cancel an Auto Lease in the State of Florida

In Florida, there is no grace period given once you sign an auto lease contract, which is a binding document. Florida law does provide a lemon law option for leases, however, in cases of manufacturer defect, warranty issues or extended maintenance problems. The leased vehicle may not be more than two years old and the dealer must be given three attempts to fix the problem. If you suspect your vehicle is a lemon, you must undergo a state-mandated...

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Five Smart Reasons for Buying a Used Car

There may be nothing like the smell of a brand-new car, but you could be paying dearly for it. Vehicle reliability and durability have improved so much that the most cost-effective way to own a car now is to buy one that's 2 or 3 years old and run it into the ground. Price Of course, a used car is going to cost less than a brand new one, but that's not the whole story. The popularity of leasing means a lot of well-maintained, 2- or 3-year-old...

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Car Lease Purchase Options

If your lease is up, you can purchase it for the amount stated in your contract; the buyout amount is listed as the last payment. You can finance through the bank you leased from or from a lender of your choice. If you went over your mileage and are concerned about lease-end fees, you can also trade your lease toward another car purchase. Financing You can finance through any bank you want, or have the original leasing bank finance the balance due. You don't have to finance the entire amount if you want to put money down toward the purchase...

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Can I Buy a Car With a Lien?

Many states do not allow title transfers when a lien is listed on the title. If your state does allow such title transfers, you may face repossession if the seller hasn't satisfied the loan. Check with your state's motor vehicle department for direction before you purchase a car with a lien and consider the financial risks of the purchase before you move forward. State Lien Requirements To find out if you can title and register a vehicle with a lien listed on the title, call your state's motor vehicle department for instruction. Many states...

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What Does It Mean When a Bank Puts Insurance on Your Car?

If a bank that has financed your purchase of an automobile places insurance coverage on your car, it is because you have failed---or your bank believes you have failed---to maintain insurance coverage as promised in your contract. Banks typically will try to contact borrowers before securing insurance coverage, which increases the monthly payment as a result of the extra cost of the bank-added policy. Insurance Reporting Insurance providers electronically notify lien holders and state motor vehicle departments of insurance policy changes,...

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What Happens if I Turn in My Auto Lease?

You may turn in your auto lease by terminating your contract early, but you'll have to pay a bank termination fee in addition to any payments due until the end of your contract. If you intend to return your lease because you can't make payments, the instance is known as repossession. Early Termination Call your bank to determine its procedure for an early lease termination. You can cancel your contract, but doing so might be expensive. Expect to pay all payments you have left in your contract and a termination fee, which differs by bank....

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Tips on How to Quickly Pay Off a High Interest Car Loan

Even buyers with good credit can find themselves paying high interest on an auto loan. The 2010 Financial Reform Act reins in many deceptive lending regulations, but exempts auto dealers, who often become middlemen between lender and buyer, marking up interest rates by 3 percent. A 2010 New York Times article cites one practice in particular, the "Yo-Yo" tactic. The buyer agrees to buy the car at a given price and interest rate "subject to loan approval."...

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Is it a Good Idea to Trade in a Car You Are Upside Down on & Get a Lease?

If you purchased a car with regular financing and a low down payment, it is likely you owe more than the car is worth. This is called being upside down in your car loan. To trade for another car may require a significant out-of-pocket cash payment. Trading into a lease may be a way to get into a new car for a lower up-front cost. Effects of Upside-Down Trading a car with an upside-down financing situation has mostly negative consequences. The negative equity has to go somewhere. If you pay the negative equity in cash, the new car starts...

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How to Incorporate Text With Quotations

The use of quotations makes writing more compelling and persuasive to readers. Quotations can improve an article by adding authority, humor and value, especially by quoting well-known and respected figures. Quotes also can back up what a writer is trying to convey by giving readers more information and additional resources. However, quotations should be used properly so that they do not infringe upon copyright laws or make enemies of those quoted....

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How to Use a Broker for Buying a New Car

Nervousness about purchasing a new vehicle isn't uncommon. Buyers sometimes believe they have negotiated a good deal on a new car only to discover that hidden fees and service charges inflate their bottom line -- and their monthly payment. Car salespeople are professionals and have a variety of tactics at their disposal to confuse the customer while simultaneously inflating prices. An independent car broker handles negotiations with the car dealership...

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How to Sell a Car Through an Ad

Advertising your vehicle through an advertisement allows you to reach a wider range of people looking for a car, as opposed to parking your car on the side of the road with a "for sale" sign, or trying to spread the word that your car is for sale. Some Internet and print advertisements are free, while some can prove costly or effective only in some areas. The more sources you use for advertisements, the more inquiries you can expect. Instructions 1 Check out different advertising sources to decide where to advertise your car for sale. Check...

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How Good of a Credit Score Do I Need for 0 Percent Financing?

The truth is few car buyers qualify for 0 percent financing. Aside from an excellent credit rating, you usually have to earn a high monthly income and be willing to take out a short-term loan. Before you decide if a zero percent auto loan is the best financing deal for you, find out what factors other than your credit score are involved in getting the loan. FICO Score Your credit score can help you get financing easier and faster. Lenders...

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How to Modify Vehicle Loan With Poor Credit

If you have poor credit, but the current terms and interest rate on your vehicle loan are unfavorable and causing you to spend more money than you would like, you may still be eligible to modify your vehicle loan by refinancing. Although poor credit will always prevent you from getting the best possible rates, it does not have to hold you back from being approved for a better interest rate than you now have. In addition, you may wish to modify the terms of your loan, such as by extending the repayment period, to lower your monthly payments. Instructions...

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How to Convert the Lease Rate Factor to an Interest Rate

When you're purchasing a car, financing is an important consideration. The most important aspect of financing is the interest rate. The higher the interest rate, the more money you're paying for the car. The lease rate factor, also known as the money factor, is a component of the interest rate used to determine loan payments. It's a different way of showing the amount of interest the lessee must pay on a lease with monthly payments. The lease rate factor is easy to convert to the more common annual percentage rate. Instructions 1 Find the...

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Should You Pay Cash for a Car?

Paying cash for a new or used car has its advantages and disadvantages. Cash payments can speed up the negotiating process and circumvent costly vehicle financing. Cash also has its disadvantages, including federal tax requirements relating to how much cash you use to pay for a car. Whether you decide to incorporate cash into the purchase of a vehicle depends on your particular financial situation. Cash on Hand Using cash to purchase a car can be a smart move as long as the cash you use to buy the vehicle comes from your checking account...

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Is it Better to Lease or Buy a New Car?

The perennial question among those looking for a new car is whether it makes more sense to lease or buy. Personal preferences and individual circumstances will be the guiding factors, rather than a general rule that one method of getting into a new vehicle is better than the other. Also, occasional deals and low-financing options on that dream car may sway the decision in either direction. Payment Amounts Consumers looking for both low monthly and down payments may choose to opt for leasing. Many lease terms will allow those with good credit...

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What Is the Process for Transferring an Auto Loan Into Another Person's Name?

To transfer an auto loan, the person you intend to transfer to must apply to your lender for the vehicle's payoff amount. Technically, you are selling your car and the person you are transferring to is considered the buyer. The buyer must pay taxes on the newly acquired vehicle (if required in his state), register and insure it. The buyer might also get a different interest rate. Bank Contact Call your bank to inquire about the application process and procedures for paying off your car loan when a buyer applies to the same bank. You will...

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How to Bargain a Buyout of a Lease

If you have decided to buy out your lease on your vehicle, you should prepare yourself to negotiate the buyout price. The price for an end-of-lease buyout is set when you first pick up the vehicle from the dealership. If your vehicle is no longer worth the buyout price, you have more leverage coming into the negotiations. Even if your car is worth more than the buyout price, if your buyout offer is greater than your end-of-lease balloon payment, you have a good chance in being successful in your negotiations. Instructions 1 Determine the...

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How Do I Finance a Dump Truck in Virginia?

If you own your own business or want to start your own dump truck business in Virginia, you may need to purchase a dump truck. Buying a dump truck in Virginia is no different than in any other state, as no special laws exist for the finance of the specialty truck. As with a dump truck purchase in any other state, you have your choice of financing options, and you can even shop around for the best interest rates and terms. Instructions 1 Finance your dump truck through the dealer or truck sales company. For example, if you want to buy a new...

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Steps in the Car Buying Process

Purchasing a new or used vehicle can be a time consuming and disorientating process for many car buyers, especially first time buyers. Many buyers many be wondering what the process is from the time the decision is made to purchase a car to when the vehicle can be transferred into their possession. Luckily, there are only a few essential steps in the car buying process such as selecting the right vehicle, having a used vehicle inspected, negotiating...

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Can My Car Be Repossessed After the Original Contract Is Modified?

When a consumer is experiencing financial difficulties, a creditor may lower the payment to prevent the loan from going into default. When a creditor modifies the loan terms, he must issue a new contract that voids the original loan contract. However, the lien remains on the vehicle, and a creditor has a right to repossess it if a debtor stops making payments. How Loan Modification Works Lowering a monthly payment amount on a car loan is a good solution for most debtors. A creditor can do it by extending a loan term by a few months or a...

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What Is a Joint Signer on a Car Loan?

A joint signer on a car loan is known as a cosigner. A cosigner secures your loan with his credit and income information, which also makes him equally responsible for your auto loan. The cosigner is also half owner of the vehicle you purchase; once the loan is paid off, your cosigner may release ownership of the vehicle to you. Why Use a Joint Signer If you can't obtain an auto loan on your own, you likely have credit or income issues. A joint signer's credit and income is used in addition to yours for loan approval. If your joint signer...

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Selling a Used Car With Money Owed

When you still owe money on your used car, but you want to sell it, you will have to pay the money you owe to the lender before the other party can take ownership. While you may think you must have the funds up front to pay off your car loan, you don't. In fact, you can close the current loan and sell the car at the same time when you take the right steps. Instructions 1 Call your lender and ask specifically for the "pay-off amount" on the...

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Questions Car Dealerships Do Not Want You to Ask When Buying a Car

A car is a major purchase, and you should do everything you can to not only make the best decision, but also to get the best price. No matter if you're in the market for a brand-new car or a pre-owned vehicle, ask your dealer the right questions to get the best deal. Some dealers don't want to hear certain questions, but asking them may help you save money. New Vehicle Questions If you're in the market for a new vehicle, ask lots of questions...

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How to Negotiate With Car Dealers if You Are Paying Cash

Just because a dealership says its selling a car for a specific amount doesnt mean you cant negotiate the price. One of the staples of the car-buying process is negotiation. The salesman says one price, you say another and the two of you try meet somewhere in the middle. Revealing that youre a cash customer before negotiations begin gives you less power in the negotiations. Dealerships prefer to land finance deals for customers, because the dealership often pockets a small percentage of the loan payments. Instructions 1 Shop around and ask...

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What Are the Chances Of Getting a Better Deal If I Refinance a Car Loan?

When you refinance a car loan, you can often dramatically lower your interest rate and your monthly loan payments. However, a number of factors including interest rates, your credit score and the age of your car have a direct impact on your ability to get a better deal by refinancing your car loan. Credit Score When you take out a car loan your lender checks your credit score. Most lenders require you to have a credit score in excess of 620 to obtain any kind of loan. People with credit scores higher than 740 are viewed as low-risk borrowers...

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How Do Joint Accounts Work When Trading in an Automobile?

If you and another person are listed on a vehicle title, both of you must sign the vehicle's title to transfer ownership to the dealership. You must have your joint co-owner's permission to trade the vehicle in toward another purchase. Dealers must follow state motor vehicle requirements for title transfers, and owner authorization is required. Dealership Requirements Your vehicle co-owner must come to the dealership to sign in front of a dealer representative. Even in states that require notarized signatures, owners must still sign at...

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What a Repo Man Can Not Do by Law?

When you fail to make your car payments, the creditor can repossess your vehicle at any time. The creditor does not have to give you notice before doing so and most times will not in fear that you will move the car to a different location. Individuals must abide by certain laws when they come to your home to repossess your vehicle. Physical Repossession When the individual comes to your home to repossess your vehicle, he cannot use physical violence or threats of physical violence against you in the process of physically repossessing the...

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State of Florida Auto Repossesion Laws

An auto loan is a binding contract. If you fail to make the payments on your loan, the creditor reserves certain rights. Any contract you sign at an auto dealer specifically states that the title holder (the bank or finance company) reserves the right to recover the vehicle in the event of a default. The laws regulating the methods a creditor uses to recover the property vary by state, and Florida, like many states, puts few restrictions on the rights...

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