How to Shop for Car Dealers with Programs for Recent Graduates

Graduating students can expect to get discounts, lower interest rates and special rebates from car dealers with programs for recent graduates. Many car dealers expect graduates to be financially responsible and mature. If you are employed and have good credit, you can expect to save some money on the purchase of a new auto. To shop for car dealers with programs for recent graduates, follow the steps below. Instructions 1 Check with the student resource center of your university for car dealers with programs for recent grads. Colleges usually...

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6 Reasons to Pay Cash for a Car

Financing a car purchase can allow you to pay a relatively small monthly payment that fits into your budget, while helping to build your credit. Nevertheless, if you have the financial resources, there are several good reasons why you should pay cash for your next car. Before you head out car shopping, understand your financial options and use the one that is best for your situation. No Payments The most immediate, and obvious, advantage...

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Basic Budget Ideas

Budgeting for current and future financial needs is a basic principle in money management. Knowing how much money can be allocated to expenses, investments, savings and entertainment can minimize financial stress and offer a blueprint for personal financial success. Establishing a successful budget requires some up-front time and attention, then occasional adjustments as your financial situation changes. Budgets can be created and managed through...

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What Do I Need to Not Have a Cosigner on Car Loan?

Lenders require borrowers to have cosigners if they are not creditworthy on their own. The cosigner offers the lender some security by agreeing to be held responsible for repaying the debt if the primary borrower defaults. To avoid having a cosigner, you will need to meet the lender's standards for creditworthiness. Credit History The main factor that lenders consider when evaluating your car loan application is your credit history. If you have consistently made on-time payments over a period of years, the lender can assume that you will...

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Laws on Repossession of a Car and Buying Another Outright

When you no longer want to or are unable to make your car payments, your car will eventually be repossessed. However, some people actually stop making payments to save money and use it to buy a vehicle outright after their other vehicle is repossessed. While technically this could work, it could also cause some financial problems for you. Right to Repossess After you stop making your car payment, by law the lender has the right to repossess your vehicle. When you sign your car loan, you agree to a clause that allows the lender to repossess...

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What Does Leasing a Vehicle Mean?

Leasing is a form of financing for assets that decrease in value. If you lease a car, you are arranging to pay for the amount that the car depreciates over the term of the lease. With a lease, you do not own the vehicle. At the end of the lease, you can turn the car in to the bank or leasing company that financed the deal. Function A vehicle lease allows a driver to have a lower payment than he would have if he bought the vehicle. If you buy a $30,000 vehicle, you have to finance and pay for the entire $30,000. Over the time period of a...

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What Value of Vehicle Do Banks Use When Using a Vehicle as Collateral?

In a purchase of a vehicle, the vehicle itself is usually the collateral for the loan to buy it, but using a car as loan collateral is a risky move if you're desperate for fast cash. A bank may charge a high interest rate for the quick infusion of capital and will move to seize your car if you default on the loan. A bank or other financial institution uses a number of methods when determining the value of your vehicle for any loan, including fair market value and minimum appraised value. Fair Market Value A bank usually calculates the value...

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What to Look for in an Auto Lease

Individuals looking to save money with lower monthly payments sometimes lease rather than purchase automobiles. When leasing an automobile, different considerations come into play and certain factors need to be examined. Before leasing an automobile, consumers need to know how much money is due when signing, as well as any additional charges at the end of the lease. Comparing the lease terms to the purchase terms can highlight differences, especially...

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When Does an Auto Loan Go Into Default?

An auto loan goes into default as soon as you fail to abide by the terms of your loan contract. A default might include a late payment, failure to satisfy your loan balance or lack of full-coverage insurance. Auto loan providers may differ on the reasons for default, but expect to find the information detailed in your loan contract. When Your Payment is Late Your auto loan goes into default once you miss a car payment. Grace periods offered for late payments differ by lender. Read your contract over to determine how much time your lender...

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The New Car Buying Process

Buying a new car takes more than just walking into a dealership and choosing the one you like. To get the best deal on a new car you have to follow a specific new car buying process even before walking into the dealership. In fact, if you do thorough research and buy a new car at the right price, according to the experts at Edmunds, you may be able to finance a new car at lower monthly payment than what you are now paying. Research Any new...

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Things to Remember When Selling a Leased Car to a Dealer

The process of selling a leased vehicle to a dealer is similar to the process of selling a vehicle that you own, except it requires the dealer to purchase the car from the leasing bank. You are responsible for any balance due to the leasing bank if the dealer's purchase price isn't sufficient. Check Your Car's Value You can sell your leased vehicle for any amount that you want to. You are only responsible for satisfying the leasing bank's buyout amount, whether you sell the car, trade it or purchase it yourself. Even though the dealership...

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Can You Get a Loan on a Salvage Title Auto?

Cars get into accidents. While this is no surprise, you may have found that some companies are able to repair significantly damaged vehicles and, as long as it's an ethical operation, will typically disclose the title's status. Many auto buyers have found phenomenal deals in such situations. As long as you are aware of the car's history and know what you're getting into, you could find a popular model at a fraction of its original price. However,...

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What Happens After Car Repossession?

Car repossession takes place when an individual defaults on his car loan by not paying for more than two months. The financial institution or lender sends out employees or a contracted company to take the car back in lieu of payment for the loan. If your car is repossessed, you have a small window of time to bring your loan current, or you will not be able to get your back. It's essential that you always pay for your car on time; otherwise a repossession...

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How to Purchase a Car With Outstanding Financing

When a car for sale has outstanding financing, that means the current owner has not fully repaid the loan he took out to buy the car. The lender has a lien on the car title, meaning that the lender has the right to repossess the car if the owner does not repay the loan. Ensure the previous loan is paid off so you own the car free and clear. Instructions 1 Agree on a purchase price with the seller. If the price is less than the amount the seller owes on the car loan, ask the seller if he has enough money to pay off the remainder of the loan....

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Can You Sell Your Car Privately When You Have a Car Loan?

You can sell your vehicle while you still have a car loan. However, you'll have to pay off your loan before you can transfer ownership, as required by most states. Even if your state doesn't require a lien release for title transfers, most buyers won't purchase your vehicle because of the risk of repossession. Before You Sell Expect to pay the remainder or your car loan if your vehicle sales price is not enough to pay off the loan balance. Call your bank to obtain your loan's payoff amount and check your vehicle value to determine whether...

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How to Get a Car Loan With No Credit History

Getting approved for a car loan with no credit history is a difficult task. Lenders normally want to ensure that you will pay back the loan, and one way of doing this is checking your credit history. People with no credit history often have a difficult time proving to the lender that they are reliable and can be trusted with paying back the loan. However, getting a car loan with no credit is not impossible. Instructions 1 Apply for a credit...

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How to Get a Lien Release for a Motorcycle

Whether you drive a Kawasaki or a Harley Davidson, your motorcycle is likely valued at thousands of dollars. If you had to borrow money to purchase your motorcycle, your vehicle has a lien attached to it. That lien serves as your financial institution's way of reminding you that it owns your motorcycle until you pay off the loan. A lien release allows you to free yourself and your motorcycle from your creditor's grip. It also makes the process of...

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How to Purchase a Car for Your Nonprofit Organization

Nonprofit groups often buy cars or other vehicles to transport members or to use for other day-to-day purposes. When you buy a car for a nonprofit group, the state records the title under the name of the entity rather than an individual. You must ensure that you have clear association rules in place that detail the purpose of the vehicle and the people entitled to use it. You must have registered your nonprofit with the state where you operate and have a tax identification number for the organization from the Internal Revenue Service before buying...

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What Can I Do When I Need a Car But Have Poor Credit?

A car is a major purchase that typically costs thousands of dollars. Banks and loan companies finance vehicles for consumers who cannot afford to pay the entire amount all at once. It usually takes good credit to qualify for a car loan, although Warren Clarke, an editor at the Edmunds car buying research website, states that there are some options for borrowers with poor credit ratings. Definition Poor credit can mean anything from a few delinquent or missed payments on loans or credit cards, to court judgments, previous vehicle repossessions...

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What Happens When You Have a Vehicle Lease Default?

Vehicle leases are long-term rental agreements where the user does not take actual ownership of the vehicle. Lease contracts usually go into great detail as to what will happen in case of default and what events constitute a default. In general, failure to make lease payments gives the leasing company the right to repossess your vehicle. Definition A car lease is essentially a rental agreement that allows you to use the vehicle during the...

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How to Buy a Used Dodge 2500

Purchasing a used vehicle instead of a new one can be a sound financial decision because new vehicles depreciate in value quickly. If you are interested in owning a Dodge Ram 2500 pickup truck, buying a used one is a way to save on the cost of a truck. Both car lots and individuals can sell used Dodge pickup trucks, which gives you a variety of purchasing options. Prices can vary from one seller to the next; comparison shop before purchasing a used Dodge 2500. Instructions 1 Check the average value of a used Dodge 2500 in your area by looking...

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The Downside of Vehicle Lease Options

Leasing usually offers a cheaper payment than financing. Despite the lower payment, leasing is restrictive. Expect mileage, wear-and-tear and term requirements in your lease contract. Before pursuing a lease, consider its various restrictions and the possible penalty fees you can face once the lease is over. Mileage You can choose the mileage allowance for your lease contract. Most leasing banks allow mileage adjustment anywhere from 10,000 miles to 18,000 miles per year. Advertisements often display the lowest mileage option because it...

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How to Buy a Car With Cash From a Dealer

According to NewCars.com, only 27 percent of car buyers in the U.S. do not finance a vehicle purchase. Buying a car with cash means that you do not have to worry about monthly car payments, having a car that is worth less than you owe on it and dealer financing costs. Using cash to pay for the entire cost of a car can be a lot of upfront money, but it can lower your overall vehicle costs. Instructions 1 Visit local car dealers to shop for cars that you are interested in purchasing. Once you find one that you like, take it out for a test...

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What Information Do You Need to Get a Car Loan?

Finding your dream car is easy. The challenge comes with obtaining financing for your desired vehicle. If you are unable to purchase the car in cash, opt for a low-interest car loan. Lenders use your personal financial data to determine whether you can afford the loan. If you prepare your financial information in advance of finding your car, you can save time when closing on the loan. Identification When applying for a car loan, identification...

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What Is an Open-Ended Lease?

Most people lease cars so that they can save money on their monthly car payments and avoid maintenance problems along the way. In some cases, this plan can backfire, and you can be forced to pay a large amount of money on the back end of the transaction. With an open-ended lease, you are responsible for the value of the car at the end of the term. Open-Ended Versus Closed-Ended The two types of lease agreements that you can have with a vehicle are open-end and closed-end. With a closed-end lease agreement, you are responsible for any damage...

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Is Leasing a Car Good?

Purchasing a car can be an overwhelming experience. Every day, you are bombarded with sales messages that promise you the deal of your dreams. Purchasing a used car can save you money, but you don't get the excitement of driving away in a brand new vehicle. If you're worried about how to pay for your next vehicle, then leasing is worth your consideration. Definition When you purchase a car, you own it. With a lease, however, you are allowed to use the car for a set period of time (usually 24 months). At the end of the term of your lease,...

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Auto Lease Disadvantages

Some prefer leasing cars rather than buying. Leasing allows you to get a new vehicle every few years, and you can typically lease a more expensive car than what you can afford, and for a low monthly payment. The dealer performs all maintenance free of charge on leased vehicles, as long as the vehicle has regular oil changes. While leasing sounds ideal, it does have disadvantages. Payment You always have a payment while you are leasing. You...

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How Long Do You Have to Work Somewhere to Take Out a Car Loan?

Lenders determine credit risk based on information obtained from your credit report, your employment history and annual income. Most lenders prefer at least two years of verifiable employment history and income. Some lenders may allow less, although you might obtain a higher interest rate than average or other loan restrictions. Traditional Lending If you intend to apply for low interest rates through an auto manufacturer bank or local lender, such as a credit union, expect to submit two years of employment information. If you've just started...

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Can I Put My Sales Tax Into My Truck Loan?

Many lenders allow a borrower to finance vehicle tax with a truck loan. The approval depends on several factors, such as credit standing and the bank's determined loan-to-value ratio. If the truck is new, you may have rebates in place to help offset taxes. Otherwise, the bank may approve your loan but ask for a down payment. Tax Amount Your tax amount can prove costly, depending on where you live. If you purchase a new truck for $40,000 and live in an area with a tax rate of 8 percent, your tax charges are $3,200. Some states recognize...

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