What Are the Finance Charges on My Car Payment?

Many consumers need car financing to buy a new or used vehicle. Some buyers use direct lending, meaning they request a loan from a financial institution they have a banking relationship with. Consumers can also take advantage of a dealer financing; dealerships set up loans directly with financial institutions. When obtaining a car loan from either of these sources, a consumer agrees to repay the loan amount plus a finance charge over a period of...

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How to Get a Car Loan with Bad Credit & No Down Payment

Getting a car when you have bad credit is challenging, but not impossible. It requires creativity in seeking alternate solutions to traditional financing. The best way to work around bad credit is to have a larger down payment. However, cars can die at unexpected times so potential buyers may not have access to sufficient cash, either. Fortunately, there are ways to get a car even with such limited resources. Instructions 1 Visit a subprime...

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How to Finance Used Cars With a Chapter 13 Bankruptcy

When a consumer files for Chapter 13 bankruptcy, he is restructuring his finances while obtaining relief from overwhelming debt. In exchange for this debt relief, the Bankruptcy Court is entitled to regulate how you spend your money while you are in active bankruptcy. Financing a new vehicle can be challenging, but it is still an attainable goal. The Court will decide what new debt, if any, you are permitted to incur, which can affect the vehicle...

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New Automobile Vs. Old Car Financial Model

Buying a car is a major commitment, especially if you take out an auto loan to help pay for it. Not only will you continue to make monthly payments for up to five years, but you'll also be entrusting your family's safety and comfort to the vehicle you choose. While there are many different ways to compare cars, selecting between a new or used model is among the first you should make to narrow your search. Options The financial model for buying a new automobile or a used car is very much the same. In both cases the dealer will be able to...

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Can You Trade in a Car Worth More Than the One You Are Buying?

The usual practice is to trade in your old car for a higher-priced automobile, meaning you will have to pay cash or finance the difference in cost. While it is possible to trade in your current car for a cheaper one, you may suffer a slightly greater than usual financial penalty for this transaction. Typical Trade-in In a typical trade-in, you will walk into the dealership with your used car and have it inspected to assess its value. The...

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What Is Per Diem on a Car Loan?

A per diem on a car loan is the amount of interest that accumulates on a daily basis. Lenders will provide a per diem figure to another lender when they are expecting a payoff check. Significance To calculate the per diem, you will need the balance owed and the interest rate for the car loan. For example, if the interest rate is 7 percent, (.07), divide it by 360 and multiply the result times the balance, ($10,000). The per diem is $1.94. Interest accrues at a rate of $.194 per day in this example. Considerations The per diem figure...

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What Is the Average APR When You Buy a Car?

The average annual percentage rate (APR) on an auto loan differs by the type of lender that finances your purchase. Banks tend to offer higher interest rates and shorter loan periods. The major auto finance agencies tend to charge lower interest rates stretched out over longer periods of time. The Federal Reserve compiles this information and makes it publicly available. Report G19 Around the fifth day of every month, the Federal Reserve...

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Auto Repossession Help

With a troubled economy many people are facing creditors who are sometimes extremely aggressive in obtaining repayment on loans and debts. Car finance companies are no exception, and are often heartless when their customers are faced with financial hardships due to job loss or salary reductions. If you are facing vehicle repossession you may have more rights than you think. Financing New Car Contracts spell out repayments. When you decide...

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How Do Auto Loans Work?

Loan Terms Most auto loans come as three, four, five or six-year loans. Buyers with excellent credit histories will most likely get the on-going market rate for interest rates. Websites like Bankrate.com provide a good service for comparing interest rates in the different areas of the country. See a link in resources below. The longer a loan term, the more a borrower pays eventually in interest. A good online calculator can also help in figuring out monthly payments and interest rates paid over the life of a loan as well as creating an amortization...

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Auto Financing After Bankruptcy Discharge

Someone might file bankruptcy for many reasons. A common concern among filers is the ability to reestablish credit after the bankruptcy is discharged. Credit is obtainable after a discharged Chapter 7 or Chapter 13 bankruptcy, particularly for auto financing. You should keep some things in mind before attempting to acquire a car loan after bankruptcy. Time The longer it has been since your bankruptcy discharge, the easier it will be to obtain...

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I Transferred the Vehicle Title, But the Buyer Didn't Pay in Full

When a vehicle buyer fails to pay in full after you've already transferred the title, you have a range of options that become considerably narrower if you don't have a written security agreement and a lien on the vehicle title. If you've sold a car without any written documentation of the deal, you can still prevail; however, you'll have to climb a steeper hill than someone who insisted on a security agreement and lien. Breach of Contract ...

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Can I Use My Old Vehicle As a Down Payment for a New Car?

Choosing to trade in your vehicle at a dealership and apply the credit to the purchase of a new car or truck is a common practice, and the process is simpler and more secure than selling the vehicle outright on your own. Although you might get less for your trade at a dealership than you would selling it yourself, you will probably save time and get tax savings by trading to a dealership. Owning Your Vehicle Outright If you own your vehicle...

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How do I Know if a Car Loan Is a Rip Off?

Car loan rip offs are more common than some borrowers may believe. These scams are created by the very establishments that offer automobiles to drivers, various auto loan providers and others who work in the financial departments of car showrooms nationwide. In order to steer clear of being ripped off, smart consumers need to understand the common traps that they may encounter and read the fine print that is contained on the loan paperwork with...

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Can I Donate My Car to a Family Member Without the Title?

The car title provides proof that you and on one else owns the vehicle. Just as you can only donate or sell vehicles that you own, you must demonstrate proof of ownership by showing the title, then signing it over to your relative. If you just give a relative your car without signing over the title, he doesn't own it. You do. Significance The car title proves that you own your car and are the responsible party for tickets or citations that...

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How to Cut Car Payments When Unemployed

Your lender may be able to offer loan assistance if you become unemployed. If your lender changes the terms of your loan, the process is known as a loan modification. Rather than repossess a vehicle for nonpayment, many lenders have programs in place to help distressed borrowers. Determine your budget and loan goals before contacting your lender. You can likely bring your loan current if you've defaulted or lengthen your loan term to decrease your monthly payment amount. Instructions 1 Go over your budget to determine how much you can afford...

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Advice on Auto Leasing vs. Purchasing

You might have spent days, weeks or months agonizing over which car to take home. After you've made your decision, there's another debate to settle -- buying or leasing your new vehicle. Buying has long-term advantages, but if you're looking for something short term then leasing might be a better option. Plus, each idea has other intangible benefits. Leasing for the Short Term If you're looking for a short-term commitment then leasing is...

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How to Get a Car Loan Without a Job

Getting a car loan without a job can be done under various circumstances. Most companies that offer loans to people who are out of work will want to protect their investment by looking at criteria such as your credit history,l credit score, and current assets. It is important to speak to different lenders and take your time to find one who offers terms with which you feel comfortable. Instructions 1 Prove you can meet the monthly car loan...

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Is Income Taken Into Consideration for Auto Loan?

What you make on the job is an important factor lenders consider whenever consumers seek an auto loan or make any request for new credit. Whether applying for credit through the dealer's Finance and Insurance Department, at a local bank or through your credit union, you will be required to fill out a credit application that will ask you about your current employment status, income and other credit-determining factors. Credit Application ...

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The Average Auto Loan Rates

A vehicle always costs more than its sticker price when you pay for it with an auto loan. Though the difference between the sticker price and the real price may be shocking, you can predict how much you will pay, to a degree before, you even step foot on the lot. Average Rates Though new cars typically cost more than their used counterparts, the interest rate on an auto loan for a new car is lower than that for a used car. According to Bankrate, the average rate on a new car is 3.85 percent as of May 2011. It's about 4.79 percent for a...

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What Is the Usual APR on Auto Loans?

If you're interested in buying a car and using a loan to finance the purchase, you should take the time to investigate the average interest rates lenders charge. These rates change over time and can differ considerably among lenders, so taking the time to shop around may reap significant financial rewards. New-Car Loans New-car loans make up an important part of a lender's loan portfolio. The annual interest rates (APRs) lenders charge for...

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What Do You Do With a Leased Car When the Owner Is Deceased?

Leasing a car can often be a way to afford a car that you would otherwise not be able to get. When the owner of a car lease passes away, the executor of the estate must figure out what to do with the car at that point. If you find yourself in this situation, examine the lease agreement to see what your options are. Is the Lease Canceled? When a loved one passes away with an auto lease, you may believe that the lease is automatically canceled because he is no longer around to make the payments. In most cases, the lease is not automatically...

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The Safe Way to Sell a Car With Installment Payments

Some auto owners decide to trade in their old vehicles when buying a new one; but to get the most money for their vehicle, other owners decide to sell their car privately. Several methods can help sell a car privately, and when someone interested in the vehicle can't qualify for a loan or doesn't have the cash to pay outright, you may agree to accept installment payments for the vehicles. Instructions 1 Know the fair market value by visiting Kelley Blue Book online. This website provides information on prices for private sales and trade-in...

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Tips on Dealing With Salesmen & Buying a Car

The thought of buying a car sometimes invokes the negative image of a fast-talking car salesman trying to sell you a lemon. The reality is that there are tips on dealing with salesmen and buying a car that can help you utilize the salesman's services to get the deal you need. The key is knowing when to listen to a car salesman and when to feel confident in your own information. Be Concise Car salesmen attempt to put together a sales pitch...

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