Does Gap Insurance Cover a Total Loss of My Vehicle Under Full Coverage Insurance

Gap insurance is separate from a full-coverage insurance policy. Although you may purchase gap insurance from your car insurance provider, it pays out for your vehicle's loss differently than a full-coverage insurance policy. To determine whether you should purchase gap insurance or if it will cover your loss, consider its purpose and the terms of coverage. Full-Coverage Insurance Full-coverage insurance pays for repairs to your vehicle or for its market value if it is determined a loss by your insurance company, or when repairs exceed...

Read More

Can I Transfer a Car Title If I Owe Fees?

When you sell or donate a car, the buyer takes full ownership of the vehicle and title. If you happen to owe certain fees related to the vehicle as the current owner, this is a matter of concern for both you and the prospective buyer. Often, the agencies who issue these car-related fees suspect that it will be difficult to collect after the driver has transferred ownership of the car to another individual. Title Transfer Process Transferring a title is usually a simple matter of signing it and giving it to the new owner. The new owner must...

Read More

How to Sell Classic Automobiles

If you have a classic automobile that you no longer want to keep, you can sell the classic auto to another collector or enthusiast. Selling a classic auto does not differ much from selling a regular vehicle. The main difference is that classic autos typically are higher in value than regular cars. As a result, the differences in selling relate only to the value of the vehicle. Selling a classic auto is something that you can do on your own. Instructions 1 Consult a professional classic car appraiser to get an appraisal on you classic auto...

Read More

The Process of Repossessing a Vehicle on a Delinquent Account

Experiencing a vehicle repossession is embarrassing and losing your car to a repossession can have a negative effect on your credit score and possibly stop future auto loan approvals. If an auto lender threatens repossession, it's imperative to understand how the process works and then attempt to avoid losing your car. What is Repossession? A car repossession occurs after you stop making your auto loan payment. Auto lenders vary; some may repossess your car after you've missed a couple of payments, whereas other lenders may delay the process...

Read More

How Does Refinancing an Auto Loan Work?

Auto loans typically have higher interest rates than other types of property. This is due to the rapid depreciation in value of an automobile. Consumers with a high interest rate auto loan may be able to save significantly by refinancing their auto loan to a lower rate. Before starting the process to refinance an auto loan, borrowers should understand how the process works and how to improve the odds of successfully refinancing their auto loan. ...

Read More

Who is the Lien Holder on a Car Title?

After home purchases, buying a vehicle is the second-most expensive purchase that most people make in their lifetimes. Unlike real estate, though, there is much less paperwork involved in a vehicle purchase. Therefore, consumers often must protect themselves by understanding the process and the potential impasses. One issue that crops up often is the existence of a lien on a vehicle. A lien can stop the vehicle title from being transferred from a seller to the buyer. Therefore, it is important to understand who might have a lien on a vehicle and...

Read More

How to Figure the Residuals for a Lease

The term "lease residual value" describes a car's bank-determined future market value or purchase price at the end of a lease term. The residual value, expressed as a decimal, is a percentage of the car's sticker price, even if you negotiate a lower price or provide a down payment. Exact residual percentages often change monthly and differ by vehicle type and lease term, such as the vehicle's model level, mileage allowance and the length of the lease. These factors affect depreciation and future value. Instructions 1 Calculate the leased...

Read More

How to Sell a Car With a Lien & New York's Laws

An outstanding lien on a vehicle means that the vehicle serves as collateral for an unsatisfied debt. The lender who financed your car probably obtained a lien against your vehicle -- filing the lien with the New York Department of Motor Vehicles until you satisfy the debt. If you default on the lien, your lender may repossess the vehicle. Selling the vehicle does not remove a lien against it, unless you use the money from the transaction to fulfill...

Read More

How Much Negative Equity Can Be Put Into a New Car?

Trading in your vehicle toward another purchase while owing more money than the vehicle is worth, referred to as negative equity, is a possibility. Not all borrowers, however, are approved for the loan. A lender may decline your application if your vehicle's value isn't comparable to the amount you're asking to borrow. You might have to provide a down payment, depending on your lender's loan requirements. Lending Value The amount you can finance when rolling over negative equity into a new car loan differs by your individual credit situation...

Read More

Can You Legally Get Out of an Automotive Sales Contract Due to it Not Being Affordable?

Although there are legal ways to get out of an automotive sales contract, most still leave you financially responsible for the outstanding loan balance. The best option is to speak with your car financing company and discuss whether they can do anything to help make your payments more affordable. Selling the Car You can try to sell the car for an asking price that is the same as the balance on your loan. After the sale, you pay off your car loan and get a new title that no longer lists the finance company as a lien holder. You then will...

Read More

Things to Do After Buying a Used Car

Buying a used car can be quite a chore. Most people will take a number of different steps to make sure the car is going to be reliable before they make the purchase. Many people often fail to take the next step, however, and do the other things that are necessary after buying the car. Mechanical Checks Ideally, you should have the car inspected by a mechanic you trust before you ever make a purchase on a used car. However, if you happened...

Read More

The Penalty for Turning in a Car Early on a Lease

The penalty for turning a car in early on a lease includes paying all remaining lease payments and the other fees that constitute the early termination fee for the lease. Although the exact fees charged for an early termination vary between lenders, the amount normally includes all remaining lease payments, a disposition fee, and charges for any mileage on the vehicle in excess of the contracted amount. This total dollar amount is often higher than...

Read More

The Average Used Car Finance Rate

The average finance rates for used car loans can vary depending on your credit score, geographic location and price you are paying for the car. Interest rates also vary among lenders. Although several factors can affect car finance rates, it pays to shop different lenders when looking for the best auto loan deal. Credit Standing Borrowers with high credit scores qualify for the best financing rates. A high credit score makes you less of a...

Read More

What Is Gap Insurance for a Vehicle?

If you have a loan on your vehicle, you are likely required to carry a full-coverage insurance policy. In the event of a loss, including an accident or theft, your insurance company pays the market value of the car to your lender. For people who owe more than their car is worth, gap insurance is available, which covers the 'gap' between your vehicle's value and your loan amount. Warnings If you just took a loan for a brand-new car and didn't put money down, you are likely upside-down in your car loan. While your insurance company would...

Read More

How to Pay Down Your Car Loan

Paying down a car loan can lower your debt-to-income ratio and help you pay off your car early. The average car buyer pays on a vehicle for 60 months. While typical, it's possible to pay down a car loan early and eliminate the debt. There are numerous ways to accomplish this goal. But to achieve this, you'll need to select a realistic strategy and stick with the plan. Instructions 1 Use your extra money to increase payments. Rather than pay...

Read More

Can I Refinance a Vehicle After It's Been Paid Off?

Banks, credit unions and car dealerships will loan you money to purchase a new car if your credit is good. Financing is available for up to six or seven years with little or no down payment. Your credit and your down payment determine the maximum term of the loan and your interest rate. Once you pay your loan off, it is possible to refinance your car if you need cash or need to re-establish credit. Lenders consider refinancing a paid-off loan to be a higher credit risk than a purchase loan, so terms are usually shorter and interest rates are higher....

Read More

Can I Finance a Car With a Learner's Permit?

A learner's permit is an acceptable form of identification, which a lender requires for an auto loan. To obtain an auto loan, you must purchase a full-coverage insurance policy for the vehicle and maintain it throughout the loan term. If you're an inexperienced driver, you're likely to pay higher costs for auto insurance. Consider your insurance needs and costs to determine if pursuing an auto loan while you have a learner's permit is worthwhile. Credit Requirements Auto loan providers aren't interested in your driving history. You don't...

Read More

What Is Actual Cash Value for Car?

Whether you are buying or selling a car, it is good to know what the current market value for the car is so that you can be sure that you are getting a fair deal. A number of factors go into the cash value, and you should take all of these into account in determining how much it is worth. New vs. Used The value of a new car is much easier to calculate than the value of a used car. If you go to a manufacturer's website, you can "build" the...

Read More

What Does Auto Loan Securitization Mean?

The process of auto loan securitization involves packaging auto loans together and selling them to investors. The securitization process essentially helps convert an asset that is not liquid into a security that can be traded or held. This process could affect your auto loan after it is originated by the lender. Holding Loans In the past, the banking industry held onto loans after they were originated. When you would go to the bank and get a loan for the purchase of a car, after it was originated, the lender would service it. You would...

Read More

How to Purchase a Tractor Trailer With Bad Credit

Owning a tractor-trailer gives a driver more control over their professional future. Drivers who do not rely on using company tractor-trailers are able to start their own businesses or to apply for positions with companies that require drivers to own their own tractor-trailers. Purchasing a tractor-trailer with bad credit is not impossible. There are ways to buy a tractor-trailer with repossessions, collection accounts or bankruptcies on your...

Read More

How Long Will it Take Before I Develop a Credit File to Get a Car Loan?

The amount of time necessary to develop a credit file substantive enough to get a car loan varies based on your personal credit history. For young adults who have just started establishing credit, it can take a few years to get an adequate number of accounts and establish your good payment history. For borrowers with some bumps in their past, it may also take a few years for such blemishes to come off the credit report. While there is no definite time frame for building a credit file significant enough to get financed, making good choices helps...

Read More

Used Car Sales Laws in Tennessee

Tennessee's lemon law, which protects consumers against dud cars, doesn't apply to used cars. However, if you've purchased a car that's a lemon, you may have some recourse against the seller with a number of other laws in Tennessee that protect consumers. If you can't find a specific law that covers your purchase, you may still be covered by federal consumer protections laws. Warranties Several warranty laws protect Tennessee consumers against...

Read More

How to Turn Over a Car Title When Someone Other Than a Financial Institution Has a Lien on It

Most car buyers use banks, credit unions or other traditional financial institutions to obtain a loan. Some people turn to alternative financing for their vehicles. The lender is entitled to place a lien on the title until the debt is paid. A mechanic may also place a lien on your vehicle. Normally, you must pay this debt and clear the lien before you sell the car. But it is possible to sell a car and turn over the title that has a nontraditional...

Read More

How to Negotiate a Good Car Lease

Leasing is a financing option available when looking at a new car. With a lease, you pay for the depreciation of the vehicle over the term of the lease. Paying this way will keep your payment lower than if you were buying the same vehicle especially when you negotiate the best deal on a new car lease. It is possible to negotiate a lease deal that saves you money. Instructions 1 Research different vehicles to see which ones you would like to...

Read More

Auto Lease Guide

Leasing a vehicle can seem like an attractive option, mostly because the payments always seem to be lower than those for buying. When you lease a vehicle you do not own it; you are liable for any damage that occurs during the lease period that is not covered by insurance and you have restrictions on the use of the vehicle. But some people prefer leasing because they can get into a new vehicle every three years with lower payments than owning. Payments The payments on a lease are different than a loan because you are only paying the depreciation...

Read More