Selling a Car: Loan to Car Value

You can sell your vehicle privately or to a dealership even if you still owe money on your auto loan. If you owe more than your car's value or your sales price doesn't satisfy the loan balance, you must pay your lender to release the vehicle's lien. Otherwise, you can keep the profit you make from your sale. Obtain Your Payoff To determine if you'll need to come up with extra money to satisfy your vehicle loan, retrieve your car's payoff amount. Call your lender to find out the amount of your payoff and your loan's per-diem amount. A per-diem...

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When Paying Off a Car Loan Can You Insist on Getting the Title?

Once you pay off your car loan, you become the vehicle's sole owner and should receive a title, as your lender no longer has financial interest in the vehicle. You shouldn't have to insist on getting the car's title; your lender should provide you either with the vehicle's title or a proper lien release that states the vehicle's loan is satisfied. Contact Your Lender Call your lender to discuss your account and ask when you'll receive your vehicle's title. Depending on your state, you might not receive a new title at all, but a lien release...

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California Finance Lender Repossession Laws

Under California law, repossession agencies hired by car owners must have valid licenses to repossess issued by the California Bureau of Security and Investigative Services. However, California law does not require banks, financial institutions and other legal owners to obtain a license before they can reclaim their collateral. In-house employees or owners can conduct repossessions without licenses since they are not third-party agencies. Rights...

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Can I Get a Student Loan for a Car?

Student loans provide young people the financing they need to obtain a post-secondary degree. These loans may be issued by a private lender, like a bank or credit union, or directly by the federal government. Irrespective of the source of the money, student loans are intended to support learning and so in most cases proceeds cannot explicitly fund the purchase of a new vehicle. Student Loan Proceeds Student loan proceeds must be used only...

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Can I Co-sign for Multiple Cars?

You can co-sign for multiple car loans as long as your credit is in good standing. Your income must also be enough to afford the payments of the loans you sign for. However, co-signing for one loan presents risks, let alone signing for several. Before you co-sign for multiple loans, consider the risks involved. Debt-to-Income Ratio Your ability to co-sign for multiple loans depends on your debt-to-income ratio, which banks used to determine whether you can afford the car payment you apply for. The lender checks your credit to view any revolving...

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How to Manually Calculate Car Payments

Today is the day that you have finally purchased that new car that you always wanted. You headed to the dealership to nail down the terms of the contract, secure the financing and pick up your new baby. When you arrange for a car loan, you need to determine the amount that you can afford to make on monthly payments. The information that you need to determine the payments is the interest rate, the length of the loan and the total amount of the loan....

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Is a Car Loan a Secured Debt?

Car loans are a type of secured debt. Lenders use the car as collateral when writing the loan, and if the borrower defaults, the lender assumes control of the vehicle. Some people use home equity lines to purchase vehicles in which case the collateral for the debt is the borrower's home rather than the car. History Before the the mass production of cars became commonplace, car dealerships paid cash for vehicles and sales were scarce. After World War I, production increased and General Motors established its own financial services arm; General...

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Does Refinancing a Car Loan Lower Credit Scores?

Consumers refinance cars for various reasons, according to Edmunds.com editor Philip Reed. For example, you may want to refinance a high interest loan because your credit score now qualifies you for better terms. You may have discovered that your dealer-arranged financing is above market rates. You may have signed up for a short repayment term, but your financial picture changed and you need smaller payments. Be aware that loan refinancing affects your credit score. Loan Applications Banks and other financial companies order your credit...

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What You Need for Leasing a Car

For many drivers, leasing represents an appealing alternative to buying a vehicle outright. With a lease you only keep the vehicle for a set length of time, after which you can choose to buy it outright or turn it in and find a new vehicle to buy or lease. Leases require much of the same information and paperwork as a car sale, as well as some new information about your driving habits. Income One of the most important things you need for leasing a car is a stable income. Just as when you finance an auto purchase, you become responsible...

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Do I Owe the Remaining Money if My Repossessed Car Was Sold?

The fact that your car has been repossessed does not mean that your problems are over. When a company repossesses your car, the company is likely to end up pursuing you for more than just back payments. By understanding what will happen when your car sells, you can take steps to protect your financial interests. Repossessed Car When a company repossesses your car, you generally have a short period of time to catch up on the payments and redeem the car. The amount of time that you have to redeem the car will vary by state. For example, in...

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Can a Defaulted Car Loan Garnish a Salary?

Before purchasing an automobile, it is important to budget wisely and make sure you will be able to afford the monthly payments. However, sometimes unforeseen circumstances arise and without the adequate amount of emergency savings, you may be unable to continue making car payments. It is important to understand the effects of not being able to afford loan payments, including what can happen to your wages or salary. Garnishment of Wages or Salary When your employer garnishes your wages or salary, it withholds a certain percentage each...

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How to Refinance a Bad Credit Car Loan

Having bad credit may not be your fault, but when the time comes to look for a loan, that bad credit can hurt you tremendously. This method will help you refinance a high interest car loan into a lower interest car loan, even with less than perfect credit. Instructions 1 Check the value of your car. If you owe more on the car than the car is actually worth you will not be able to refinance it. The reason for this is that in the event of...

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What to Look for in Buying a Used Car

Buying a used car can save you a substantial amount of money compared with buying a new car. When you buy a used car, you have to be careful to make sure that you get a quality vehicle. Before buying a used car, a few factors should be evaluated. Vehicle History Report Before buying a used car, you should get a copy of the vehicle history report. A vehicle history report lists all of the major events that have affected a car. For example, if the car has ever been in a wreck, you can find out by reading the report. If the car has ever had...

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What Is Gap Insurance When Leasing a New Van?

The purchase of gap insurance when leasing a new vehicle, such as a van, should be seriously considered. Gap insurance is a supplement to regular vehicle insurance to protect the lessee against a significant financial loss. Gap insurance is supplemental to the regular insurance on a leased van. Gap Insurance Gap insurance is an additional insurance policy that pays the difference, or gap, between what the regular insurance pays and the payoff on the van lease if the van is demolished in an accident or stolen. Payments on a lease contract...

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How to Make a Contract for the Sale of a Car

If you've ever purchased a car from a dealer, you might recall signing a number of documents. The dealer drew these papers up as a way to protect himself in the event you should return with a complaint or disagreement over terms of the sale. When you sell a car you should do the same thing. Your document doesn't have to be pages long, but it should include details of the sale. Instructions 1 Include the basics. State your name and address...

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Can Someone With a Bankruptcy Be Able to Co-Sign for an Auto Loan?

A bankruptcy significantly lowers a person's credit score. Over time, however, a person who claimed bankruptcy can re-establish her credit. If your co-signer recently claimed bankruptcy, she's probably not a good candidate for a loan co-signer. If your co-signer has re-established her credit, you might obtain a loan approval if the co-signer meets other lending criteria. Recent Bankruptcy Tara Baukus Mello of Bankrate.com warns that accounts included in a bankruptcy remain viewable to potential lenders for seven to 10 years, depending on...

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Do You Have to Get Insurance for a Leased Car?

As part of your lease contract, you must carry full-coverage insurance for the entire period of the lease. In fact, you must provide proof of this coverage before you leave the dealership in your new car. Although your salesperson will work with you to set up your coverage and require proof, it is your responsibility to consistently carry the full-coverage policy. Insurance Coverage A full-coverage insurance policy covers repairs to your car in the event of an accident or for the vehicle's total loss. It is the most expensive of insurance...

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How to Sell Used Cars Locally

Finding a buyer for your used automobile may prove difficult. Potential buyers may prefer dealer selections and warranties. Even so, you can successfully complete a private sale of an automobile. The key is recognizing and utilizing different local marketing techniques to attract buyers. Instructions 1 Determine a fair price. Visit Kelley Blue Book online to research the recommended private party sale price for your used automobile. Price the car fairly to attract attention. 2 Purchase car window paint from an auto parts store. Print...

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How to Buy a Vehicle After a Bankruptcy

Some people lose their assets in a bankruptcy proceeding, wherein lenders take possession of their automobiles to repay their debts. Since reliable transportation is a necessity, you may find yourself in the market for a new or used car after a bankruptcy. If you don't have cash to pay for a car outright, you might consider financing a car. While a bankruptcy hurts your personal credit file, it's possible to finance or buy a car after bankruptcy. In fact, buying a car can help your score. Instructions 1 Rebuild your credit file with a new...

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Buying a Second Hand Car

Purchasing a secondhand vehicle is a way to get transportation without paying the exorbitant sticker prices that often accompany brand new cars. However, consumers should be more cautious and educated when purchasing a secondhand vehicle as it can be subject to more problems than new cars. This is attributed to the fact that it was previously owned, which means there may have been problems that were not disclosed by the original owner. Instructions...

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Can a Person With a Very Low Income Get Financing for a Car?

Getting access to a vehicle is important for most people, as it is the way that they get to and from work. If you have a very low income, you may be skeptical about your odds of being approved for vehicle financing. Even though you may not be able to qualify for an expensive car, many dealerships will work with those who have low incomes. How Much Car Can You Afford? Before you start looking for financing in this situation, you need to determine how much you have to spend each month on a car. When making this calculation, you need to consider...

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What Credit Score Is Needed to Purchase a Car?

Auto industry veterans have a saying, "there's [a rump] for every seat". Translated, it means there's a car for everyone. The same can be said for auto financing. Whether your credit is excellent, poor, brand new or somewhere in-between, chances are you'll be able to purchase a car, thanks to the many financing options now available to buyers with a range of credit scores. "Good" Credit is Relative Your next car purchase may be easier than...

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Car Buying Options

You have several payment options to choose from when purchasing a vehicle. Some purchase options require excellent credit, such as leasing, although some lenders and dealers market specifically to poor credit buyers. Before you start car shopping, consider your various purchase options and which best suits your budget. Financing If you don't have the cash on hand to purchase a car, you can finance it with an auto loan provider, regardless of whether you purchase from a dealership or a private seller. Many dealerships use a variety of banks...

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How to Refinance a Lease

Items like new cars and equipment can be leased instead of purchased. A lease usually allows a consumer to purchase something for a short time period with a low down payment amount. At the end of a lease, the consumer is presented with a buyout amount and has the choice to pay the buyout amount and assume ownership or return the item to the company. A consumer can refinance a lease into a loan, but the buyout amount must be included in the loan. This means that the consumer ends up owning the item. Instructions 1 Gather a current lease statement...

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Florida's Laws on How a Repo Works

During periods of high unemployment, repossession agencies benefit from increased profits as increasing numbers of vehicle buyers default on their car loans or title loans. In Florida, title loan lenders and car loan lenders can repossess their collateral without providing notice to borrowers. However, they must comply with the state's redemption and licensure laws requiring them to obtain proper licensing allowing them to operate as title loan lenders...

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How to Return a Car on Credit

Returning a car that you financed and are still making payments on is called voluntary repossession, according to bills.com. Usually, consumers who seek voluntary repossession have fallen behind in their payments and realize they no longer can afford the car. Rather than wait for the lender to repossess it, the consumer decides to return it himself. A voluntary repossession and a regular repossession will have the same negative impact on your credit...

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Benefits of Leasing and Buying a Car

Depending on your annual driving habits, your vehicle needs and your credit standing, a lease or a purchase may prove beneficial. Leasing does not make financial sense for everyone, although it may appear beneficial because of its cheaper payment or short-term ownership. Before pursuing either option, consider which one is financially beneficial or most suitable for your driving habits. Future Market Values Leasing payments are based on a vehicle's expected depreciation. Once the lease is over, the bank resells the leased vehicle for the...

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What Credit Score is Required to Get 0% on a New Car Loan?

If you are in the market for a new car and you plan to finance the deal, then you probably know that a number of financing companies who work with the car manufacturers offer zero percent financing for the duration of the loan. Interest free financing is like money in the bank: you pay principle only while incurring no interest charges. Though zero percent consumer financing is available, the advertising fine print stipulates that this offer is only good for qualified buyers. Dig deeper and you learn that means people who have good credit. ...

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How to Write Up a Bill of Sale in Massachusetts

If you are selling a car on your own in Massachusetts, you need to have a bill of sale form for the vehicle. A valid bill of sale form is required for the buyer to register the vehicle in the state. A generic bill of sale form cannot be used, unless it is valid for all 50 states. This is because the Massachusetts Registry of Motor Vehicles Department has specific requirements as far as what information needs to be on the bill of sale form. Instructions 1 Use a computer word processing program, or a piece of paper, to start your bill of sale....

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