The Best Loans for Teenagers

For teenagers, who typically have little to no credit, obtaining money through the form of a loan can be a challenging process. Whether for a car, college or personal reasons, teenagers seeking loans do have some options as they start their financial portfolio. Parental Loans Depending on the responsibility level of a teenager, the best option for a first loan may be borrowing money from her parents. Even with this type of assistance, parents...

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How to Reduce Auto Loan Payments

Consumers who buy a new or used vehicle may not always be able to make their monthly payments. They may have been offered a bad deal with a high interest rate and now need to find ways to lower their monthly payments. Other buyers may have had more money when they originally bought their cars, but unexpected financial setbacks may have affected their ability to pay on time every month. These consumers have some homework to do as they choose the best...

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How to Break a Lease for a Ford Car

Leasing a Ford car means that you have the right to drive that vehicle for a predetermined amount of time, as long as you're making timely payments. When the lease term ends, you return the car. When you lease a Ford, you're actually dealing with your leasing company, which could be the Ford dealership or a bank. They purchase the car from the Ford manufacturer and allow you to lease it for a certain amount of time. Talk to your lease holder if you...

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Do You Have to Put Money Down When Financing a Car?

Whether a down payment is required when an automobile purchase is financed depends on your credit rating, the value of the vehicle and---in some cases---your personal preference. A down payment lowers your monthly loan payment and decreases the amount you will pay back over the life of the loan. While some financing offers leave the decision regarding a down payment to the buyer, in other circumstances you may have no choice but to provide a down payment. Loan-to-Value Ratio A down payment may not be optional. Auto loan providers assess...

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Can You Transfer a Car Loan to Someone Else?

Banks do not allow car loan transfers for various reasons. Loan terms are based on credit history and income; the person you want to transfer to likely has a different credit score, history and income than you. The loan is based on your vehicle's value, which has likely changed since you initiated your loan. To end your loan, you must sell your vehicle. The person you want to transfer your loan to must apply for financing of his own to purchase the car from you and your lender. Loan Determination Most lenders base approved interest rates...

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Advantages of Having a Trade-in When Leasing a Car

Using a trade-in toward a lease may prove beneficial when the trade is used as a down payment. Leasing only requires you to pay for about half of the car's value over the lease term, so using your trade as a down payment can have a significant impact on your monthly payment amount, or it can reduce or eliminate the down payment. Lower Lease Payment Leasing payments are based on vehicle depreciation, which results in paying for about 50 percent of the vehicle's value over the term of the lease. Because of this, any down payment or trade...

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How to Answer: What's My Credit Score?

A credit report and a credit score are different things. By law, you are entitled to get a free credit report once a year from each of the three credit-reporting companies -- Equifax, Experian and TransUnion. You can get another credit report if you are denied credit for any reason. However, these reports don't usually contain your credit score, which is based on the information in your credit reports. In most cases, you will have to buy your score...

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Four Factors to Consider Before Leasing a Car

For people who like to change cars every few years, purchasing can get expensive, as can trade-ins. For these individuals, leasing is often the best option, though it can be pricier than purchasing a car that you will at least eventually own. However, there are a few things to consider before you go out to lease a vehicle. Substantial Down Payment Risk When you lease a vehicle, you still have to put down a down payment in most cases, which can range from $1,000 to $3,000, according to Bankrate. If something happens to the vehicle and the...

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How to Terminate a GMAC Lease Early

During the term of a GMAC lease, the repayment terms may become difficult to manage. Usually, this is the result of the lessee's changing financial situation. Either that, or the lessee simply overestimated his ability to pay. GMAC designs its lease agreements to run full term. Anything less is an inconvenience to the company. While it may be difficult, and even costly, to terminate your GMAC lease early, it can be done. Instructions 1 Review your GMAC lease agreement, particularly the section on early termination. Note any fees or penalties...

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How to Get the Payoff for a Car

If you have a car loan and you want to pay that loan off early, you may be able to do so without incurring a penalty. But paying off an auto loan by tallying the number of payments you have left and sending a check off with your payment stubs may not pay off your car. Instead, there is a way you can find out how much you owe on your car in order to make one final payment. Instructions Instructions 1 Locate your vehicle purchase agreement....

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Can You Get a Title Loan If Your License Is Suspended?

Title loans, a temporary source of funding for cash-strapped borrowers, are often described as easy to get but impossible to pay off. That's because interest rates and fees can snowball to many times the original loan amount. Missing one payment, or having your car impounded, can result in repossession. Although some lenders may require a valid driver's license, others may not; but the risk lies in your behavior during the loan term. How Title...

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How to Find the True Market Value for a Used Car

Whether you are buying a used car or selling one, make sure you get the best deal possible on your vehicle by calculating its true market value. This will tell you what price should be paid for your vehicle using a private party seller or a dealership. It will also let you know how much you can expect to receive on a used car that is being traded in. Instructions Kelley Blue Book 1 Visit the Kelley Blue Book website. Click the "Used" tab at...

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Pros & Cons of Owning & Leasing a Car

When you are in the market for a new car, both leasing and buying might be options for you to consider. Before making a decision as to which method you will use to acquire your car, you have to look at the pros and cons of each strategy. Pros of Leasing The major advantage of leasing a car is that your monthly payment will be smaller than if you purchase. This is especially true if interest rates in the market are high. Another advantage of leasing a car is that you do not have to worry about major repairs. If something happens with the...

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How to Apply for Ford Lost Job Payment Plan

In March 2009, Ford introduced a benefit to customers who choose to finance new Ford, Lincoln or Mercury vehicles. This benefit is referred to as the Ford Advantage Plan. Under the Ford Advantage plan, Ford will cover your payments if you become involuntarily unemployed, while paying for a financed vehicle. Ford will cover payments up to $700 per month for up to 12 months. Instructions 1 Select the Ford, Lincoln or Mercury vehicle you would like to purchase or lease. The vehicle must be new, not used. 2 Complete a Ford Credit application....

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How to Negotiate a Fixed Lease Price for a Car

The prices and terms you see advertised for car leases are assumed on MSRP (manufacturer's suggested retail price), also known as "sticker price." Leases are most profitable for dealerships for this reason. When you agree to a monthly payment, your leasing bank pays the dealer for the price of the car and then leases it to you based on the price you negotiated with the dealer, if any. Just as you wouldn't pay full sticker price for a car purchase, you should similarly negotiate with the dealer for lease payments. Instructions Determine a Fair...

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The Disadvantages of Financing a Car

Financing, at first glance, seems to be a great way to purchase a new or newer vehicle when you don't have the money on hand to purchase. Some people, at the same time, prefer to drive their vehicle until it is beyond repair. Financing your next car has disadvantages, just as any other method of ownership, as a vehicle almost never appreciates. Rather it is a consistently depreciating investment. Interest Rates Because you are borrowing money,...

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Who Pays When the Co-signer on a Car Loan Dies?

People often co-sign on car loans when the person who needs the loan has insufficient credit history or bad credit, preventing him from getting the loan on his own or from getting a decent interest rate on the loan. However, if the unexpected happens and one of the co-signers on a car loan dies, the remaining co-signer needs to be ready to pay up. Shared Responsibility Co-signing on a loan means accepting equal liability for the loan as the...

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What to Know About Car Leases

Leasing a car gives you the option of driving and maintaining a vehicle without actually owning it. Leasing a car is different from buying in a variety of ways including vehicle ownership, car value and upfront costs. Before leasing a vehicle, it is important to understand what is involved and how a car lease can affect you in the long run. Description When you lease a car, you are entering into a contract to use a vehicle for an agreed-upon...

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Can a Car Be Repossessed After Late Payments?

There are numerous reasons why you might fall behind on car payments; perhaps you lost your job or are just simply behind on all of your bills. When this happens, your finance company might give you various options for how to proceed. However, depending on the company in question and your payment history, the consequences might be more severe. Identification A car repossession can occur when the finance company demonstrates that you are not...

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Laws Covering Used Auto Sales in Illinois

Purchasing a car is an important financial decision that a person should approach carefully and diligently. Many people determine that it is in their best financial interests to purchase a used car. As with any large purchase, the buyer should feel that his vehicle is as-advertised and in good working order. Illinois has a number of laws and statutes regarding the sale and taxation of used vehicles. Implied Warranty Illinois has laws regarding...

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How to Lower Your Car Payment by refinancing at a lower interest rate

With the economy in such a weak state nearly all of us have had our income affected. Being self employed myself I have found that I have needed to tighten the purse strings. I did a bit of research made some calls and lowered my interest rate on my car loan by 5%. This brought our payment down by $100. It was easy. This is what I did. Instructions 1 Take a look at your current loan. You will need the amount your payoff amount, interest...

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Steps in Buying a Car From a Friend

Buying a used car from a friend can often make sense. You may already know the car well and how it has been cared for. However, you still need to go through a series of steps just as if you were buying the car from a seller you do not know. Inspect the Vehicle You may know how well your friend cared for the car, but unexpected flaws or damage may exist. Take the vehicle to an independent mechanic to inspect the vehicle. The mechanic has specialized equipment and knowledge to tell you what, if anything, needs to be repaired. The mechanic...

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Benefits of Leasing a Car versus Buying

People who don't want to spend several years paying off a car loan can benefit from the cost savings associated with leasing a vehicle. Consumers who lease their cars can save money on auto maintenance and repairs and make lower monthly payments than they would if they purchased a vehicle. Costs According to the Edmunds auto information website, prices for new cars have risen faster than most people's incomes. As a result, it's taking some consumers as long as six years to pay off their car loans, which can make leasing a vehicle more appealing...

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How to Calculate Annual Vehicle Interest

The interest rate that the lending bank or car dealership presents to you upon purchasing an automobile is a simple interest loan. While the interest does add to the total amount of your purchase, it does not compound, which adds to the complexity of the time value of money. Determining the amount of interest that you must pay each year can help with budgeting and deciding if it is beneficial to pay off you car early. Instructions 1 Determine...

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Prime Credit Scores for an Auto Loan

Your ability to get a car loan depends largely on your credit score. Whichever financial lender you go to for a loan will check your credit score and if it's not a prime rate, you're not likely to get the loan. Or, if the lender is willing to give you the loan, you will be charged a higher interest rate. Your goal should be to keep your credit in the prime range to get the best deal you can from your financial lenders. This applies not only to car loans but other types of loans as well. Prime Scores Credit scores are a summary of your credit...

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What Is a Zero APR Car Loan?

If you want to save money when buying a new car, do your homework first. Check your credit, set a budget and research models within your price range. Consider factors that can significantly increase the cost of ownership, such as fuel mileage and insurance costs. Finally, look closely at financing options. If you see dealer advertisements for zero APR car loans, definitely investigate, but do not automatically assume this is the best option for you....

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What Are My Legal Rights to Getting My Repossessed Car Back in Utah?

Under Utah's Uniform Commerical Code, a creditor has the right to dispose of your repossessed car or sell the car at auction or private sale to a third party. If you want to buy back your vehicle, the creditor must inform you of the sale within a reasonable amount of time. Buy-Back Rights In Utah, you may buy back your repossessed car by paying the outstanding amount due, such as your most recent bill statement, plus any repossession charges. However, you must pay before the creditor sells the car at auction. The creditor is required by...

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How Old Do You Have to Be to Take Out a Car Loan?

In order to obtain a car loan, an individual must sign a legally binding contract. There are laws in place that govern who can be legally bound to a contract. For that reason, banks have established guidelines that require loan applicants to be a certain age. Beyond age, banks also look at other factors to determine who can take out a car loan. Age Requirement By law, with a few exceptions, an individual cannot sign a legally binding contract unless he is 18 or older. Therefore, an individual must be at least 18 in order to take out a car...

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Can Someone Take Over Payments on a Financed Vehicle?

You cannot transfer your car payments and loan to another person unless your lender allows it. Because most auto loan providers do not allow loan or payment transfers, you must actually sell your vehicle to the person who wants to take over your car payments. Unless someone simply wants to pay your payments for you, expect to sell your vehicle for your loan's payoff amount. Contact Your Lender Call your lender to find out more about its loan payoff process. Obtain your loan's payoff amount, which is the amount of money your buyer will have...

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Tips for How to Buy a New Car With Bad Credit

Bad credit doesn't necessary mean you can't obtain a new-car loan with a reasonable rate or that you even have bad credit at all, which is determined by possible lenders. Banks take many aspects of your life into account for loan approvals, including revolving accounts and history, mortgage payments, time on the job and time at your address. Learn what you can do to obtain a new-car loan. Credit Standing Obtain a copy of your credit report from the Annual Credit Report website, which provides a free report from each of the three major credit...

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How Does a Dealer Incentive Work?

Automotive sales are a very competitive business, especially in the age of price-conscious shoppers willing to drive between dealerships hunting for the best deal. To help dealerships boost their profit margins while remaining competitive, many automotive manufacturers provide dealerships with incentives and other programs that provide them with cash payments or refunds to sell certain vehicles or to manipulate invoice prices on vehicles. In some...

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How to Finance a Mobility Van

A mobility van is a van that is equipped to meet the needs of a handicapped person. A mobility van is usually a regular van that is modified to meet the needs of the person using the van. Purchasing a modified van typically costs $20,000 to $30,000. The cost of modifying a standard van is typically $5,000 to $15,000 depending upon the type and extend of modifications that need to be made to accommodate the user. Banks and credit unions commonly offer auto loans that can be used to cover the costs associated with purchasing or modifying a mobility...

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How to Get Your Name Removed As the Co-Signer of a Car Loan

As the co-signer on another person's car loan, you are held legally responsible for repaying the debt. The lender relied on your good credit as security against the risk of lending to the primary borrower, who likely had bad or no credit. The only ways to get your name removed from the obligation are to get the lender to agree to release you or to have the primary borrower refinance the loan without you. You will require the primary borrower's cooperation for either of these solutions, so there is no guarantee that they will work. Instructions...

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10 Things to Look for When Buying a Used Car

When you set out to buy a used car, you do not want to make your final decision until a qualified mechanic has looked the car over and given you an honest assessment. But before you bring a vehicle to the mechanic, there are things you can look for to give you an idea as to whether or not you want to purchase the vehicle. Tire Tread You can buy a tire tread gauge at any auto parts store. Use the gauge to check the tread on the tires of the...

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How to Turn in a Bank-Owned Car for Repo

Having your car repossessed can be a terrible experience. The vehicle can be taken at any time, night or day, and most states allow the agent repossessing your car to come on to your property to do so. This can happen once your auto loan has gone into default. A simpler way to deal with this situation is to turn the vehicle in directly for repossession by working directly with the bank holding the loan. This lets you know when you will lose the vehicle...

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How to Reduce Interest Rate on Current Car Loan With Bad Credit

You read every day about how low interest rates are. Yet the rates on your car loan are far higher. The reason might be your credit: Lenders charge higher interest rates for borrowers whose credit scores are under 740. Even with bad credit, you might be able to lower the rate on your car loan. Doing so, though, is challenging: You'll have to prove to your lender that you've suffered a financial hardship that has made paying your current car loan too difficult. Instructions 1 Gather and make copies of the financial statements that you'll...

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