Rules for Buying a Used Car

Buying a used car provides many benefits compared to buying a new car. You will save money on the purchase price and also save money on car insurance. The money you save on the used car can be put to good use elsewhere such as funding a much-needed vacation. Buying a used car does have some risks. Understand some basic rules for buying a used car and you can avoid potential problems and get all the benefits. Planning Decide on the maximum...

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Car Repossession Process

In today's troubled economy, many people are finding it difficult to make ends meet. This is resulting in more foreclosures and car repossessions than normally happen, as people simply cannot afford to pay for even these necessities. Car repossession is becoming commonplace and it is likely to see cars being towed away to go to the auction block if the owner cannot redeem them. Late Payment When a person misses a payment on his car, this may be the first step in the car repossession process. Many companies have the right to repossess...

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Is Paying Off a Car Good?

Though the decision to pay off a car may seem obvious, there are a number of factors a consumer should consider before making this decision. As with any large expenditure, a consumer should take the time to gather information and carefully consider all the available options. By doing this, the consumer will be able to make the right decision for her personal situation. Loan Terms Many car loans have prepayment penalties or require the payment of the full interest amount even if paying early. Before paying off a car loan, the consumer should...

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Options for Leasing & Buying a Car

One main difference exists between leasing and buying a car; the leasing bank owns the car during a lease, while financing results in full ownership. Leasing is similar to renting; you'll return the vehicle after using it. Both contracts offer flexible terms. To determine which is the better option, consider whether you would benefit from owning the car or leasing it based on your driving needs. Term Term options for a lease or auto finance differ. You may lease a vehicle anywhere from 24 to 60 months, although 36 or 39 months is the most...

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How to Purchase an Affordable Car

Buying a car for reliable transportation doesn't imply buying a car that's outside your budget. Spending more on a car than you can afford can impact your monthly finances and limit what you're able to spend. Know what you can afford before shopping and purchase an affordable car. Instructions 1 Determine how much you want to spend. Have a price point in mind before talking with dealers and auto lenders. Review your income and present expenses and decide what you can realistically afford. For example, if you can spend $400 a month on a car...

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Tips on Purchasing a Used Car From a Private Seller

Buying a used car can be a stressful experience. Figuring out what kind of car you need, trying to ignore the car you want but know you can't afford, and searching through endless for-sale ads can take up a lot of time. Buying from a private seller can sometimes save you money, but can also increase your stress level as you wonder about the identity of the person you are dealing with. Knowledge Is Power Never look at a car that is being sold...

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Georgia's Usury Laws on Used Cars

Usury interest rate limits are governed by state statutes. In Georgia, the Department of Banking & Finance is responsible for enforcing the state's usury laws governing interest rates that lenders conducting business within the state can charge consumers. The Georgia General Assembly enacted usury laws for credit card lenders, industrial and commercial loan lenders, retail installment loan lenders and motor vehicle loan lenders. Georgia's...

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Cash Back vs. 0% Financing

When buying a new car, you may be faced with a choice of taking a cash rebate or getting a 0 percent interest rate on your car loan. Both of these options can be attractive, but one might work out better for you depending on the circumstances. Considering the long-term savings and whether you even qualify can help you in your decision. Crunching the Numbers To help you with this decision, you need to look at the numbers of the deal. Look...

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How to Get an Auto Loan Without Proof of Employment

From a lender's perspective, if a buyer does not have proof of steady employment, he probably would default on a loan. Lenders do not favor writing loans that would be unlikely to be repaid. So getting an auto loan without proof of employment can be challenging. Yet, it is possible. Instructions 1 Provide proof of income. If a borrower is self-employed, is a 1099 contract employee, is receiving disability benefits, or is collecting Social...

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Purchasing a Car With Cash Vs. Credit

There are a lot of factors to consider when deciding whether to purchase a car using cash or financing the vehicle. Sometimes the decision will be made for you. If your credit history is extremely bad, many dealers will refuse to finance a car purchase, while dealers who will take the risk will charge exorbitant interest rates. Your personal financial situation will be the determining factor. Weighing your cash reserves against the prospect of acquiring...

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How to Calculate Extra Principal Payments on Auto Loans

Whenever you make a car payment, a portion of your payment goes toward paying the interest on the loan and the remainder of your payment is applied to the loans principal--which is the amount you originally borrowed. If you choose, you may make larger or more frequent payments on your auto loan in order to pay down the balance more quickly. If you would like to pay off your auto loan early, you must calculate the correct payment amount each month...

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How to Get Car Loans for Bad Credit and No Co-Signer

Getting a car loan even if you have bad credit can ultimately help improve your credit score. Paying a car loan each month adds favorable information to your credit report because lenders report your timely payments. Because the vehicle secures the auto loan, you can qualify for financing with bad credit and no co-signer. Knowing where to look is key to getting your loan approved. Instructions 1 Buy from a dealer that offers sub-prime loans....

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What Are the Benefits of Leasing a Vehicle?

Purchasing a vehicle is a big decision for most families and individuals. The decision to finance a vehicle for purchase or to lease is one of many you will make in the process of acquiring a new car. Leasing has a number of benefits, making it an attractive option for many car buyers. Maintenance Leasing rather than buying may spare you the cost of repairs. The lease term can coincide with the manufacturer's warranty, which allows you to...

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When Is it Worth it to Refinance an Auto Loan?

Refinancing an auto loan isn't the best option for some borrowers. An auto loan refinance can provide better, more affordable loan terms, which is ideal for buyers who need to reduce their monthly expenditure. But because cars depreciate with time, there are factors to consider before applying for a refinance. Improved Credit Score Some people apply for an auto loan with bad credit and must therefore pay a higher interest rate on the loan. If you are paying a high interest rate, and you've recently made credit improvements to boost your...

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Dealer Financing vs. Credit Union Financing

When shopping for a car loan, the process is sometimes more difficult than shopping for the car itself. Loans from financial institutions, such as credit unions, and dealer financing serve as your two primary methods for obtaining a loan. Generally, credit union financing has more pros than cons, while dealership financing may be required if you can't come to an agreement with the credit union. Credit Union When you apply for a loan at a credit union, you have the opportunity to create a relationship with the lender, especially if it's...

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When You Lease a Car, Who Owns the Vehicle?

When you lease a car, the leasing bank owns the vehicle, not you. You must pay to insure it, but even so, your bank is entitled to any insurance payoff of your leased vehicle. You may choose to purchase your vehicle from the leasing bank at any time if you want to own it outright. Lease Process When you lease a vehicle, the leasing bank purchases the vehicle from the dealer and then leases it to you. Your dealership acts as a go-between for you and the bank. While you do most of your business with the dealer, the payment for the car is...

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Financing Process for a Car

When buying a car, you may need to finance a portion of the purchase with an auto loan. To get a loan that meets your needs, you will have to shop around and negotiate the terms that you want. Understanding the auto financing process can help you get the best deal available. Planning Stages Before you enter into the financing process, you need to do a little bit of planning. This involves finding out exactly how much you can afford to spend on a car payment each month. You will most likely need to make a down payment on your car purchase,...

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What Happens When the Bank Writes Off a Car Loan?

A car is a necessity in most people's lives, particularly for people who do not live near public transportation. While a car may be necessary, the nicest, sportiest or most luxurious car is not. The deck might be stacked against you when you go into an auto dealership and try to resist the "great" deal being offered to you, but be firm. If you buy a car that you really cannot afford and then default on your payments, your lender might write off,...

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How to Remove a Co-Signer From an Auto Loan

Many people require the aid of a co-signer to acquire a car loan for a variety of reasons --- no credit history, a bad credit history or no down payment. Sometimes the co-signer might ask to be removed from the loan, or individuals who have been responsible in making payments wish to take full accountability for the loan. Removing a co-signer from a car loan is possible, but not easy to accomplish. Lenders might require a new down payment or refinancing...

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Is it Better to Pre Qualify for an Auto Loan?

Pre-qualifying, or acquiring a pre-approval, for an auto loan before you shop has its benefits. You'll know your interest rate ahead of time, allowing you to budget accordingly. You can also save time while shopping; some banks can take as long as a week to provide an approval. Saving Time Without a pre-approval, you might shop until you found a car you wanted and then apply for your loan. Because bank approval times are not usually immediate,...

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Can I Apply a Partial Payment to the Principal of My Car Loan?

Interest on most car loans is simple. The larger your principal balance, the more of your payment goes to pay for interest rather than reducing that principal balance. That means that reducing your principal can be the magic bullet to paying less interest over the life of your loan. In most circumstances, you can do this by applying extra or partial payments to your principal balance. Knowing the terms of your loan and how interest works can save...

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How to Calculate Car Payment by Hand

Many online calculators are able to calculate a car payment in seconds, but the formula to compute the monthly payment by hand is not very complicated and will not take much longer. The amount of a monthly car payment depends on the amount borrowed, interest rate and the number of months in the repayment term. Interest Rate The monthly car payment depends heavily on the interest rate you are charged on the loan. When you obtain a loan, you will know the annual interest rate. Convert this from a percent to a decimal by dividing it by 100....

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How Many Years Can You Finance a Used Car?

The number of years you can finance your vehicle varies depending on your credit, your lender and even the vehicle you choose to purchase. Some institutions lend longer than others, so you may need to shop around. Even so, learn which factors you should consider when deciding how long you should you finance a used car before pursuing any term. Common Terms Lending options include 24 to 84 months for used-car financing and even longer through some institutions. However, the bank considers age, value and cost of the vehicle before approving...

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How to Check VIN Numbers on a Car

Run a check on the vehicle identification number, or VIN, when you buy or sell a used car. A VIN is a particular car's unique code, revealing its basic information in 17 numbers and letters. This system has been in use since 1981. Entities such as insurers, titling agencies and salvage yards use VINs to report cars with flood or hail damage or that have been in accidents, as well as other information useful to buyers. Checking a VIN gives access to that information. Sellers wanting to prove the worth of a used vehicle may present the results of...

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Can I Finance the Buyout on My Lease?

Drivers who take good care of their leased cars and keep the mileage to a minimum may want to purchase the car after the lease period ends. Most leases have clauses that allow the driver to buy the car for a price that is negotiated at the time of lease signing. This is called a "lease buyout." If you don't have the cash to buy the car, you must finance the car with a used-car loan. Financing Options at Lease End Financing a lease buyout...

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Car Donation Programs in Minnesota

Minnesota has miles of rural and suburban land with little public transportation. For many Minnesotans, a car is the only viable mode of transportation to and from work, school and shopping locations. Certain Minnesota-based nonprofit charities accept donations of inoperative and running vehicles. Many of these charities repair the donated cars and lease or sell them at affordable rates to needy members of the communities they serve. Newgate Education Center Newgate Education Center in downtown Minneapolis is a nonprofit organization that...

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Oregon Auto Repossession Rules

Many car owners buy their automobiles with a car loan provided by a creditor. When this car loan goes unpaid, the specter of a car repossession looms over the borrower. Oregon allows for car repossessions, although the state has specific laws that govern these actions. Talk to an Oregon attorney if you need legal advice about a car repossession. Security Agreements When you buy a car using a loan, you and your creditor enter into a security...

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Does Financing a Used Car Build Credit?

If you have bad credit, or very little credit history, taking out a car loan can be beneficial and help you improve your credit score. However, you have to handle the loan responsibly and ensure your timely payments are being reported to the credit bureaus. Used or New In terms of building your credit history, financing a used car is no different than financing a new one. In fact, if the amount is lower and the loan is more affordable, financing...

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How to Get a Clean Title in NY After Paying Off a Lien

When you finance a car purchase in New York state, the lending institution is listed on the car title. The lender is the lien holder, with the auto loan being the lien. When you pay off your auto loan, the New York State Department of Motor Vehicles does not automatically send you a new title with the lien removed. Instead, it is your responsibility to get a new title after paying off a lien in New York. Instructions 1 Request proof of paying off the lien, called a lien release, from the financial institution if you do not automatically...

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