Ways to Get Lenders to Work With You to Refinance a Vehicle for Financial Hardships

It's not in the interest of the lender for you to have your vehicle repossessed. Repossession of a delinquent borrower's car costs the lender money. Lenders are more than happy to assist borrowers faced with financial hardship. Contact lenders the moment you know your finances are in danger. If you wait, and chronic late payments become the norm, you may not have an avenue for refinancing. Ask the Lender Contacting the lender and asking for assistance is the best way to find help to refinance the vehicle. Lenders have access to numerous...

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How to Calculate a Car Payment When Trading in an Upside Down Car

An upside-down car is one that is worth less than you currently owe on the loan. This leaves you in a sticky situation because even if you sell the car, you still owe money on the loan. When you trade in an upside-down car, you have two options. The first is to apply the trade-in value toward paying off your old car loan and making a large payment to pay off the remainder of the loan. The second option, if your lender allows it, is to roll over the negative equity into a loan for your new car. Instructions Calculate Payoff Amount 1 Look...

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Auto Repo Rights

If you don't make your car payments, the finance contract that you signed at the time you purchased the car gives the loan company the right to collect their money, using legally available means. Repossession is when the bank takes your vehicle, and sells it to recoup the money you owe. You have rights in this process, and the bank's failure to follow the law can affect their ability to collect the debt. Taking the Vehicle If you are late on your car payment, you are at risk to have your vehicle repossessed. If the bank considers you a...

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Will They Check My Wife's Credit When I Buy a Car?

You've got your eye on a hot new set of wheels, but with your spouse's credit, you're bound to be going nowhere fast. That assumption is a common one for married couples when one comes into the union with stellar credit and the other's credit is a little lacking, but that common assumption is often a false one. Your spouse's credit doesn't have to slow your financial roll at all, and it doesn't have to be an issue when you're trying to get an auto...

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What Happens if We Surrender Our Leased Vehicle?

If you surrender your leased vehicle without paying for the early termination, it's known as a voluntary repossession. If the bank seizes your car for non-payment, the instance is known as an involuntary repossession. Both terms affect your credit score and future lending opportunities just the same. Paying Fees or Repossession Call your leasing bank to find out how much it costs to terminate your lease. Depending on how far along you are in your lease contract, you might have to pay a termination fee in addition to any payments due for...

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When to Refinance a Vehicle?

While the refinancing of home loans is relatively common, vehicle owners are also often able to refinance the loans that they have taken out to pay for the purchase of their vehicles. Refinancing auto loans is similar to refinancing home loans. However, the process is generally less expensive. Refinancing When a vehicle loan is refinanced, a lender purchases the original loan and pays it off. Afterward, he issues the borrower a new loan with different terms. Although borrowers may have various reasons for wanting a new loan, refinancing...

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Can They Repo Your Car at Work in North Carolina?

In North Carolina, a vehicle repossession agency has a legal right to repossess vehicles on the purchaser's property, even when the purchaser does not consent to the repossession. A lender can instruct the repossession agency to perform the repossession during work hours on business property. As long as the agency does not breach the peace, then the state will not interfere with the lender's rights. Advance Notice Rights Neither repossession...

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What Is Better: Zero-Interest Auto Loans or Cash Back Incentives?

To determine whether you should take a cash-back incentive or zero-percent loan, calculate your overall cost for either option. Often, the amount of money you can save is very similar. Consider your long-term cost, whether you can pay off your loan early and negotiating at the dealership to save more money. Long-Term Calculation To fully gauge the long term benefits of your car loan options, use an auto loan calculator to view your long-term savings. Edmunds.com offers a variety of calculators to help determine overall loan payback cost,...

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How to Get Out of a Vehicle Purchase Agreement

There are a number of reasons a buyer might want to 'undo' a done car deal; maybe the buyer discovered a fatal flaw in the vehicle, or perhaps he is experiencing an unexpected financial crisis. When this happens there are several options open to the purchaser; none of which involve a visit from the Repo Man. A contract is a legal and binding document, but that doesn't mean there's no way out if you're truly justified in seeking one. Instructions 1 Review the terms of your agreement. If you did not sign a written contract and the sale was...

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What If I Stop Paying My Car Lease?

You will default on your leasing contract if you stop making your payments. As specified in the contract, you must make your monthly payments or face repossession, meaning the bank will take the car back. Before you decide to stop making your payments, consider your options and how your choices can affect your future finances. Payment Options Call your bank as soon as you realize you can't make your payment. If you have a good payment history, the bank may work with you so you can keep the leased vehicle. It may be able to defer your payment...

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Do You Pay for Repairs on Leased Cars?

You must consistently maintain your lease during your contract. If your vehicle needs repair or maintenance upon its return, the bank will charge you for damages. Your factory warranty will pay for vehicle repairs that aren't maintenance or cosmetic-related. Otherwise, you must pay to return the car to good condition to avoid paying your leasing bank for the car's loss of value. Factory Warranty Coverage New cars come with a factory warranty, which covers many vehicle repairs during your lease term depending on the lease mileage and term...

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Auto Help for Low-Income Families

Auto financing can seem unobtainable for low-income families. That can be due to several factors, including being unable to afford a down payment. Low-income borrowers may have bad or no credit histories, which hurt their chances of qualifying for an auto loan. There are auto-financing programs available to low-income families. The trick is to find the one that puts these borrowers in vehicles without further worsening their finances. ...

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What Happens if a Person Who Has No Spouse Dies Before the Term of Their Car Lease Expires?

Among the myriad of things you might not want to think about following the death of a friend or loved one is what happens to their possessions. Some decisions may be easy, like what to do with their clothing. Others aren't so simple. Less common questions arise, such as what happens to a leased car after the lessee dies, particularly if the lessee is unmarried. Terms of the Lease Auto leases lay out the terms of what happens if the lessee...

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If I Can't Pay My Car Loan Because I Lost My Job, Will it Be Repossessed?

Losing your job can create a multitude of financial problems. With loss of income, paying your bills such as automobile loans can prove challenging. Defaulting on auto loans increases your risk of losing your car. Repossession refers to an auto lender taking back the car for non-payment of the monthly note. But fortunately, certain strategies can help you avert a repossession after losing your job. Consequences of a Repossession Car repossessions do damage credit scores; thus, it's imperative to keep a repossession off your personal credit...

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New Car Guide: Buying vs. Leasing

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What Is Needed to Sell a Car in Florida?

If you're selling your car in Florida, you need to have your title handy. A signed vehicle title officially transfers ownership to another party. Signatures do not have to be notarized and you do not need to provide a bill of sale for the transaction, but you should notify the state of your sale. Vehicle Title The Florida Department of Highway Safety and Motor Vehicles (DHSMV) website states that you (as the seller) are responsible for filling out the title. Fill out the odometer in the space provided and the vehicle's selling price. A...

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What Happens to a Car Loan If the Borrower Dies & I'm the Co-Signer?

A co-signer on a loan is a person that guarantees the debt will be repaid. It's common for friends and relatives to ask for assistance with co-signing a loan if the applicant doesn't have good credit. However, as a co-signer, you may be responsible for the full balance of the loan for any reason---even if the debtor dies. Co-signer Responsibilities When you co-sign a loan for a borrower, you are being asked to repay the debt. In fact, creditors...

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Facts About Auto Loan Refinancing

The process by which an auto loans is refinanced is very similar to that by which a mortgage is refinanced. With auto loan refinancing, you can pay off your current car loan using a loan issued by another lender--usually one who is willing to offer more favorable terms. Features You refinance an auto loan very much as you would refinance a home loan--by approaching various lenders that offer car loans and inquiring about rates and terms. The easiest means of doing this is by using a website devoted to refinancing--these will often given...

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Estate Laws: Can I Pay a Deceased's Car Loan?

When a loved one dies, it is a difficult time for the family, both emotionally and financially. The relatives may wonder who is responsible for the debts of the deceased. The estate must pay his debts. A spouse may be liable for some debts, such as joint credit accounts. However, according to the Fair Debt Collection Practices Act, a creditor may not collect the deceased's individual debts from his relatives. Secured Loans Generally, the deceased person's estate is responsible for paying his debts, including the car loan. If it doesn't...

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Can I Buy a Leased Car From the Lessee?

You might be able to buy a car from a lessee. The process is more complicated than a private-sale purchase, as the lessee doesn't actually own the vehicle. During a lease, a bank owns the vehicle and the lessee only pays for depreciation. Banks differ on lease-purchase options, but you'll probably have to purchase the vehicle directly from the bank. Bank Contact Call the lender directly to find out if you can purchase the leased vehicle. Depending on state rules, the bank might not be able to sell you the car. If not, you'll have to purchase...

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Auto Lease Vehicle Return Issues

Leasing a car has many advantages, such as driving a new vehicle and having a low monthly payment. However, many people get anxious when it's time to return the car at the end of the leasing period. The most common issues when returning a leased car are penalties for excessive mileage and damages. To avoid the fees at the end of the term, take a few steps to prepare your vehicle for the final inspection. Excessive Mileage Charges One of the...

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How to Make My Car Payment Every Two Weeks

Interest rates on car loans add a hefty surcharge to what you pay for the auto. After five years of making those payments, you might have doubled the actual price of the car. Making an extra car payment every once in a while is good, but making a full car payment every two weeks, instead of once a month, gets the car loan paid off in less than half the time. Even making half the payment every two weeks rather than once a month gets the loan paid off more quickly. That's because there are 12 months in year, but 52 weeks divided by two is 26 payments,...

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Can a Car Dealership Take a Car Back If Your Financing Is Not Approved?

A car dealership can take back a car that is not approved for financing, even if it let you take the car and led you to believe a bank approved your loan. Consider pursuing financing on your own and learn how to avoid this issue in the future. Why the Dealer Let You Take the Car Dealerships work with a variety of banks. Many can submit a credit application electronically. Dealers can view your credit information to determine your rate and chance of approval. If the dealer believed one of its banks would finance your loan based on the vehicle...

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Vehicle Leasing Versus Buying Recommendations

The decision to lease or buy a vehicle can be difficult as each offers some advantages and disadvantages. For example, lease terms are easier on a consumer's monthly budget, but buying makes more financial sense over the long term. In order to make the best decision for their financial situation, consumers should understand the differences between buying and leasing. Lease Advantages The initial cost to lease a vehicle is very low. The down...

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After Leasing a Car What Is the Depreciated Value?

When you're looking to lease a vehicle, the bottom line usually is whether you can afford the monthly lease payments. Lease payments are related directly to the vehicle's depreciation value, so a better understanding of what depreciation value is and how it works in leasing may let you walk away with a better deal. Related Definitions In order to understand what the depreciated value is with a lease, you first have to understand some other...

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Can I Get a Better Deal if I Pay Cash for a Vehicle?

Although your goal should always be to become debt-free, you can often find a better deal on a vehicle if you finance it rather than pay cash. Part of the reason financing a car benefits you is the opportunity cost you incur by putting your money in a car rather than an appreciating investment. However, you have to factor in other considerations, such as the amount of savings you have and interest rate on a car loan. Zero Percent Financing Car dealers often offer the option of zero percent financing or a cash rebate. The initial thought...

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How Can a 16-Year-Old Get a Good Car Loan With a Permit?

The short answer to this question is you can't. Even though car loans are some of the easiest kinds of financing to get, a loan is a legal contract. You must be 18 to sign a legal contract in the United States. However, with the help of an adult you can both buy a car on credit and begin building responsible credit habits that will help you succeed later in life. Why Not? Forget the fact that you have no credit. Ignore the fact that you're far more likely to wreck the car before the loan is paid off. In the United States, only an adult...

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How to Obtain a Clean Title for a Paid Off Loan

After you finally pay off a secured loan in full, the lender is supposed to remove his name from the property -- most commonly a car or house. Since the loan is no longer associated with the property, you need a clean title, meaning that it does not contain information about the lien holder. In some cases, the lender routes the title through the state or county office that manages these matters on your behalf. In other cases, you might have to take care of the whole process of getting a clean title yourself. The exact process varies by state. ...

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Can I Lease a Car With a Charge-Off?

Leasing a car provides you with the freedom to exchange your vehicle every lease term. In addition, if you choose to lease rather than buy, your monthly payments will be considerably lower. For some individuals, however, a past credit card charge-off can stand in the way of a new car lease. Facts One of the requirements car dealerships have for individuals hoping to lease a vehicle is that the consumer pass a credit check. A credit card charge-off...

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Help With Financing My Car

Not everyone has cash to buy a car outright. If looking to finance your next automobile, consider ways to get a good deal on your auto loan and the best interest rate possible. The rate determines the monthly payment on your car loan. Acquiring a high rate can reduce buying power and increase payments. Know Your Credit Auto lenders do offer bad credit loans to people who're looking to establish a credit history. But if looking for the best finance rate on your auto loan, it's best to establish credit first and maintain a good credit rating...

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Credit Problems & Financing

Buying an expensive item that requires a loan can be a stressful, especially if you've had credit problems in the past. Many people require financing to purchase of a car. While other people are concerned about getting the best rate possible, you may be worried whether you can obtain a loan at all. However, there are actions you can take to help get the loan. This article focuses on financing the purchase of a car. Financing Tiers Some car advertisements feature promotions such as zero percent financing, cash back and employee pricing....

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How to Lower Your Car Payments With Ford

If you have purchased a car through Ford Motor Credit but are having trouble making the monthly payments, you may be able to have the payments lowered. Ford does allow for people to lower their car payments if they meet certain criteria. Lowering your Ford car payments does extend the term of the loan, however, which means that you will end up paying the full amount in the long run. If you feel that you cannot continue to make your monthly payments to Ford Motor Credit, you can try to get them lowered on your own. Instructions 1 Look on...

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Pros & Cons of Buying a Used Car

Over a five-year term, it costs less to drive a used car instead of a new one, according to the Edmunds website. Pricing is an obvious benefit of a used car purchase, although several disadvantages may also exist. From warranty coverage to prior owner history, a used car may not be your best bet. Price and Equity Price and equity are an immediate advantage of a used car purchase. A vehicle suffers its biggest dip in depreciation the moment you drive it off the lot as a new car, a disadvantage the car's original owner already suffered. However,...

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How to Calculate Percentage in Payment When Buying a Car

When you purchase a car the amount of the payment is important. Some people will give more consideration to the amount of their monthly payment than to the loan total or interest rate. If they can afford the payment then everything else is "OK." You can calculate the percentage of your monthly payment in relation to your monthly income by following a few steps. Make sure your monthly payment fits comfortably into your budget. Instructions 1...

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