Car Leases Explained

Leasing a vehicle is an alternative to buying. While a lease offers lower monthly payments, there is no equity built into the vehicle, although the lessee may purchase the vehicle at the end of the term. A lease can be an attractive option for the individual who prefers to change vehicles frequently and is not concerned about ownership. Types There are two types of car leases: open-end and closed-end. In an open-end lease, the value of the vehicle is determined at the end of the lease period and is compared against the residual value...

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How to Repossess a Car Legally and Properly

If you have sold a vehicle to a private party on an installment basis, the purchaser's right to possession of the vehicle depends on making timely payments in accordance with the contract. If the customer misses a payment, he has defaulted on the loan, and you have the right to repossess the vehicle. Legal vehicle repossession requires following specific steps and procedures to repossess the vehicle properly. Instructions Notice of Default 1 Review your state's vehicle repossession laws. Each state imposes different requirements regarding...

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The Statute of Limitations on Repossession

A statute of limitations (SoL) is a law that sets a maximum period of time for which a claim or action can be filed in a court of law. These periods are set by, and vary by state and type of legal action. Written Contract Because a contract is signed, vehicle purchases fall under the written contract clause of each state's statute of limitations. Time Frame The statute of limitations becomes effective on the date of the last activity...

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Can I Back Out of a Car Lease After Signing?

Before you sit down to sign a lease for a new vehicle, make sure it's exactly the car you want and can afford. Turning the wheels around and heading back into the showroom with your newly leased vehicle can be a costly mistake. The Lease is a Final Contract When you sign an auto lease, you may notice a sign in the finance manager's office stating, "There is no cooling off period." Unlike a mortgage or other loan, a car lease contract is final,...

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How to Compute Vehicle Interest Rates

The interest rate on your car loan determines your monthly payment and how much of each payment goes toward interest. Your interest rate is based on your credit score and the state of the financial sector when you take out the loan. Your lender tells you your interest rate when you first get your loan, but if you forget it, you can calculate it later based on information on your monthly statements. Instructions 1 Subtract the outstanding balance on your most recent auto loan statement from the balance on your previous monthly statement....

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Does a Car Loan From a Bank Need to Know If a Husband Is Deceased?

When your spouse dies, his property goes into probate. The executor of the estate is responsible for settling debts and disposing assets. If you want to keep a car after the death of your husband, you have a few options, most of which involve probate. However, in community property states, the laws vary and you may be able to bypass probate. Responsibilities of Probate Although laws vary from state to state, the probate process is very clear and precise; when someone dies, debts must be paid and then assets can be transferred to the beneficiaries....

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Florida Laws on Purchasing a Car With a Learner's Permit

Learner's permits are given to help teens learn how to drive safely. With a learner's permit in Florida, you are allowed to drive between daylight hours only for the first three months and always with a licensed driver over the age of 21. After three months, curfew is 10 p.m. It is possible to buy a car in Florida when you have your learner's permit, but you may face some complications. Features It is not required by law in Florida that you must have a license to purchase a car. Licensing is only required to drive a car and does not affect...

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How to Create an Auto Loan Calculator

The easiest way to make an auto loan calculator is to use the PMT function embedded in Microsoft Office Excel 2003 (or later). The PMT function is a simple way to calculate the payment for any loan based on constant (same-amount) payments with a constant (non-changing) interest rate. The MS Excel syntax for using the PMT function is: PMT(rate,nper,pv). The payment amount calculated by MS Excel returns payment amounts for principal plus interest....

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How to Factor Auto Loans Based on Interest Rates

Buying a car involves being able to afford the monthly payment on a loan. Monthly payments depend on the vehicle price and the finance term. However, since the majority of vehicle loans involve interest, which is what a lender charges to lend money, you must factor in your interest rate when figuring your auto loan payment. Once a lender determines the rate on your auto loan, you can calculate the payment using a simple formula. Instructions ...

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Auto Financing Laws in Texas

Buying a vehicle often requires consumers to borrow money. These major financial loans are complex, and there are a number of issues that can present themselves during the life of an auto loan. To help both the creditor and consumer, states establish various laws on automobile financing. Texas features several such laws. Some pertain to the financing after the purchase. Others deal with financing at the point of purchase. Failure to follow or understand these laws can have serious consequences for creditors and borrowers. Interest Rate and...

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Compare Auto Refinance Rates

Comparing auto loan rates before you purchase can save you thousands of dollars over the term of your loan. Dealerships make a profit from marking up your loan's interest rate, so it's best to check and become knowledgeable of the rates local banks and vehicle manufacturers offer. Learn where to compare interest rates and which factors to consider so you can make the most financially rewarding decision. Instructions 1 Use an auto loan calculator to determine how long of a term you'll need. The term of your loan affects your interest rate---generally,...

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How to Roll Negative Equity Into a Lower Interest New Car Loan

"Negative equity" is a bad term for most people. It occurs when the value of your car is less than what is owed on the loan, and is very common for long-term loans. Unfortunately, you may not have a choice in terms of when you need to apply for another car loan. Perhaps your car no longer works or is simply unreliable. If this is the case, you can apply for a roll-over. Instructions 1 Research dealers who accept negative-equity roll-overs. Not all dealers accept these types of loans. 2 Review the terms of the roll-over carefully. Most...

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How Much Can I Get for a Title Loan?

Title loans are high-interest, short-term loans that use your vehicle as collateral. Although many states do not allow this type of lending, if you live in a state that does and have little to no chance of getting a traditional loan, a title loan may be one of your few remaining options. Facts How much you can get for a title loan depends on your lender and the value of the vehicle. Most use either the Kelley Blue Book or NADA guidelines...

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Can You Garnish Secure Car Loans?

When a person owes money to a creditor and fails to repay the creditor according to the terms of his contract, the creditor may take a number of actions to receive payment of the money owed. If the creditor is able to receive a legal judgment in civil court, he may be allowed to garnish the person's wages. However, he can't garnish other transactions, such as the payment on the loan of a car. Car Loan When a person takes out a car loan, she typically agrees to pay back the lender in a series of payments, usually made once a month, over...

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What Is the Difference Between Dealership Auto Loans & Bank or Credit Union Auto Loans?

When you borrow money to buy a car, you have the option of borrowing from a direct lender like a bank or credit union, or you can finance at the dealership. While these options ultimately get you in the car you want, the way they go about it can vary. Pre-Qualification When you work with a bank or credit union, you can get pre-qualified for the loan. This means that you can take your time, shop around and get pre-approved for the loan you want. This allows you to see what interest rates are being offered and if your credit is good enough...

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Definition of Financing a Car

Buying a new car requires you to make many decisions besides choosing the make and model of vehicle you want, such as how to finance the car. In the auto industry the term "financing" refers to how you pay for a vehicle. Buyers can choose from several different financing arrangements that can affect the cost of vehicle ownership. Car Financing Basics Car financing, in the broadest sense, can refer to any arrangement made to fund a vehicle, but the term is commonly used in a more narrow sense to refer specifically to auto loans. Most people...

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How to Break a Car Loan Agreement

Car loan agreements are contracts between a financial institution or car dealership and someone purchasing a vehicle. A car loan agreement outlines any stipulations for the person to buy the car, along with detailed information about how many monthly payments he must make to the bank or dealership and the amounts of each of those payments. If you determine that the monthly payments are more than you can handle or that you no longer need the car,...

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Easiest Way to Trade in a Car

Buying a new car can be an exciting and potentially frustrating process, but if you also intend to trade in your existing vehicle, you have a chance to save yourself time and effort. Trading in is faster and simpler than attempting to sell your car yourself, and if you know what to expect, you can make it even easier on yourself and the dealer. Research Value Researching the value of your trade-in is the only way you have to get an accurate picture of what it's worth. Even though this adds a step to the trade-in process, it means you'll...

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Is an MBA Education Tax Deductible for the Self-Employed?

In certain situations, self-employed people can deduct the cost of an MBA education by treating it as a business expense on Form 1040, Schedule C. It must be a career-related expense integral to the job at hand, rather than in preparation for an entirely new field. Provided that the pursuit of an MBA qualifies, a wide range of costs may be appropriately deducted. Qualifying Factors For tax purposes, the term "education" can cover a broad array of pursuits, coursework and seminars. The first qualifier is that the expense either improves...

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How to Finance 250cc Scooters

Offering an impressive gas mileage average of 70 to 80 mpg, 250cc scooters are commonly known as mopeds. If you're looking for ways to cut your gasoline bill, a 250cc scooter can help. Mopeds are street legal and can be driven on just about any road. Scooter prices vary widely depending on the model. Instructions 1 Apply for financing through your scooter dealer, if you are buying from a shop that offers financing. Some dealers that specialize in a specific scooter brand are able to offer company financing. Other scooter shops might have...

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Can You End a Car Lease Early?

You may have several options available to end your car lease early. Be aware that some options are more expensive than others. If your lease is nearing the end of its contract, your leasing company may offer an opportunity to end the lease penalty-free. Consider all of your lease-end options to determine which may work best for your situation. Lease-End Offers You may have the opportunity to end your vehicle lease early without penalty if you lease or finance again through the same bank. Most leasing banks send out notification of this...

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Basics for Renting a Car

Rental cars save mileage on your own vehicle, provide transportation while on vacation or give you a way to get around when your car is in the shop. Before you book a rental car, gain a basic understanding of the process; knowing the ins and outs of renting a car helps you get the best car for your needs and save money. Requirements Rental companies set their own standards for renting a car to a customer. Many companies require the person...

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Car Lease Early Return Facts

While some are content to follow through with the planned terms of their car leases, others opt to trade their vehicle in early for financial reasons or to get a new set of wheels. Although you certainly can turn in your car before the end of your planned lease term, doing so often also means that you will have to pay extra fees. Before you set your sights upon an early turn-in, consider how much this plan will cost you, and evaluate whether or not it will likely prove worth it in the end. Basic Lease Termination All leases have an out...

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What Kind of SOL Is a Car Loan?

Your state maintains a statute of limitations that protects consumers from facing lawsuits over particularly old debts. The statute of limitations doesn't always prevent lawsuits, but it does provide you with an affirmative defense in the event a lender sues. Every state's statute differs, but most states' statute of limitations (SOL) falls within the three- to six-year range. Car loans only fall under the statute of limitations under certain circumstances....

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Solutions for Car Title Loan Problems

Vehicle title loans are cash loans in which the title loan company places a lien on your vehicle until it is paid off. The loan is typically due in approximately 30 days and comes with an extremely high interest rate. If you cannot pay the loan in full, you have the option to make a state mandated minimum payment and renew the loan for another month. Title loan problems usually arise from the inability to make the loan payment. How They Work...

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Does a Bank Keep the Title When Taking Out an Auto Loan?

Some states don't release a vehicle's title to a borrower until the lien holder notifies the state that the loan is paid off. Other states send the title to the borrower but don't allow the borrower to transfer ownership without providing proof of a satisfied lien. Once you pay off your car loan, you'll receive the vehicle's title or a lien release. Resources To find out about your state's rules and title release process, ask your lender for information or contact your state's motor vehicle department. If you just initiated your auto loan...

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What Happens to an Automobile Loan if the Car Gets Totaled?

Most lenders require a full-coverage insurance policy as part of your loan agreement. Assuming you have maintained this coverage, your bank will receive a payment for the vehicle's market value from your insurance company in the event your automobile is totaled. Depending on your vehicle's equity, you may still owe money toward your loan or receive a payment from your bank. Insurance Payoff While you have a loan on your vehicle, your lender is listed as the insurance policy's loss-payee. This means the insurance payoff amount goes to the...

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Are There Car Loans Out There for People Who Have Had Repossessions?

Having a repossession reported on your credit history doesn't necessarily mean you can't obtain another auto loan from a traditional lender, especially if years have passed since your repossession and you've re-established your credit rating. Consider viewing your own credit to decide where to apply for your loan and whether a down payment or cosigner might help to obtain an approval. Review Your Own Credit To determine if your credit has improved since your repossession, review your credit report to check your positive and negative credit...

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How to Get a Report on a Car at Car Fax

CARFAX is a company that collects and maintains a database of vehicle records. These records can help those buying a used car learn about a particular vehicle's history. The CARFAX report may include: the number of owners a car has had; its dates of sale and odometer readings; accidents; and other damage reported to CARFAX. Sometimes the report even includes the car's service records, if the service was obtained at a business that reports to CARFAX. The information in a CARFAX report can help buyers identify and avoid a car that has had significant...

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