Auto Lease Help

Buying a new vehicle is a complicated and expensive process. One of the biggest decisions you have to make as a buyer, aside from what type of car you want, is whether to buy or lease. Each option has its own advantages and drawbacks, but leasing can be difficult to understand without some prior information. Function A lease is essentially a long-term rental. You pay a monthly bill for use of a car over a lease term, which is usually around three years. During that time, you have an allotted annual mileage (often 12,000 or 15,000 miles)...

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Is it Wise to Buy a New Car?

Deciding to buy a new car is a difficult process. You must analyze your financial situation, lifestyle and the new car market to determine what works best for you. If you're considering keeping an old car, you also must determine whether you should hold off on your purchase until the deals are better or until your financial situation improves. There's no easy solution, but proper research and an accurate appraisal of your finances can help you make...

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How to Calculate the Price of a Car

The price that a dealer pays for a new vehicle and the price you should pay to the dealer are two different numbers. To calculate the price that you should pay for the car, you first have to know the specific details of the features that the car has. You also need a copy of the factory invoice, which is not the Manufacturer's Suggested Retail Price (MSRP) sticker that the dealer sticks to the car, along with the added charges the dealer puts on the...

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What Insurance Is Required for a Financed Vehicle?

Beyond your state's required liability policy, your lender may require you to keep a full-coverage insurance policy on your car throughout the entire period of its loan. A full-coverage insurance policy is the most expensive available, but will pay your lender for the car's market value in the event of a loss, possibly paying off your entire loan. Full-Coverage Insurance A full-coverage insurance policy is often required by lenders. This insurance policy covers damage to your vehicle even in accidents that are your fault. Minimum liability...

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The Meaning of Vehicle Refinance

Refinancing your vehicle can provide the same benefits that refinancing a house provides. If done at the right time with the right lender and interest, it will not only reduce your monthly car payments, but will also reduce the total amount of the final loan amount. You can also end up with higher payments and higher interest depending on when and why it is done. Understanding the meaning and purpose of refinancing a vehicle will help you avoid potential pitfalls and use the process to your advantage. Who Should Do It Just because you are...

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If My Car Is Paid Off Will My Credit Improve?

Paying off a car loan can bring great emotional satisfaction, but most consumers have a practical question: whether paying off a car will translate to an improved credit score. Higher credit scores frequently lead to preferred interest rates and terms on home mortgages, so if you're looking to buy a home after paying off that car, it makes sense to check whether your scores are due to rise. If your car is paid off, there's a good chance that credit...

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Automobile Lease Information

Leasing an automobile is like renting it for an extended period of time. Leasing allows an individual to have a new car with little or no down payment at the time of purchase and a smaller monthly payment. Definition A car lease is when an individual makes monthly payments on a vehicle but those payments do not go towards owning the car. The lessee is only paying for the depreciation on the vehicle plus vehicle charges. Benefits Individuals who like owning a new car every few years or those wanting a lower monthly payment benefit...

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Tips on Buying Salvage Vehicles

The phrase "salvage vehicle" means several different things, depending on how it is used. When buying a vehicle that has been salvaged, you should find out exactly how the seller is using the phrase, and decide whether you want to buy it with that knowledge in mind. Buying a car that has been in a fender bender and repaired is a different thing than buying a car that was submerged in the ocean for a week. Title You should get proof of a valid...

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Repossession Vs. Voluntary Surrendering a Car

If you are in a bad financial position and cannot afford to make your car payments anymore, you probably are aware that unless you can somehow come up with the money, you will lose the car. Although there is not much difference between repossession and a voluntary surrendering of the car, a voluntary surrender is somewhat better for you. If you voluntarily surrender your car instead of waiting for your lender to take it from you, you are showing...

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How to Change Your Mind on Buying a Car After the Papers Are Signed

If you regret buying a car and want to return it, you aren't alone. Buyer's remorse is a common feeling once a buyer returns home with a shiny new car and the hefty monthly payment that goes along with it. Whether you feel you've been subjected to high-pressure sales tactics or if you just can't afford that car payment after all, you may be able to return the car in some situations. Instructions 1 Contact the dealer and tell employees there you would like to void the contract and return the car. Each dealer sets its own policies for returning...

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What Is a Certificate of Title for a Vehicle?

A certificate of title for a vehicle, at the very least, provides proof of ownership of that vehicle. It is required if you want to register the car, and you must have one if you decide to sell or otherwise transfer ownership of the vehicle. If you buy a car, particularly from a private seller, you must get the title as part of the deal. The title provides other valuable information such as liens on the car. Basic Information The certificate of title includes the car's year, make, model, Vehicle Identification Number (VIN) and mileage at...

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How to Do a Mechanic's Lien

Building a home involves more than simply hiring an architect and a construction company. Before any construction can start, mechanic's liens must be completed and filed. A mechanic's lien is a guarantee that the construction workers and contractors will be paid before anyone else in the event of liquidation. These liens are necessary to perform work, and they remain in force until the workers and contractors have been paid. Instructions 1 ...

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How to Get Guaranteed Auto Financing

Guaranteed auto financing is a type of lending that makes it possible for almost anyone to borrow money to buy a car. Guaranteed financing usually requires the borrower to have a valid driver's license, a fixed address and a record of employment for a minimum period of time, and a small down payment, typically a few hundred dollars. Requirements may also include signing an agreement to have monthly payments deducted automatically from a borrower's paycheck. There are downsides to guaranteed financing, such as high interest rates on the loan, which...

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What Is the Difference Between a Secured Loan & a Co-Signer?

Loans help customers cover emergency expenses and buy the high-ticket items they could not otherwise afford. If managed responsibly, a loan also can help a customer build a good credit history and raise her credit rating. Customers with a troubled credit history or a low income may not qualify for a traditional loan. As an alternative, the lender may offer a secured loan or the customer can look for a co-signer. Basics To qualify for any type of loan, such as an auto loan, mortgage or personal loan, a customer will have to meet the lender's...

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Auto Financing With High FICO Scores

When you finance an automobile, the prospective lender rates you on a scale, usually called a tier rating. This rating is based on your FICO credit score. If you have a high FICO score, you have a definite advantage when applying for bank auto loans over someone with a poor score. What Is a FICO Score? FICO stands for the Fair Isaac Corporation, the company that calculates credit scores. Each score is based on credit reporting information from each of the major credit bureaus (Experian, Transunion and Equifax). The score is based on a number...

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Risks of Leasing a Car

When you lease a car there are a number of advantages but there are also a lot of risks that many people are not aware of. Before leasing a car always read the contract and terms and agreements. You may be able to avoid paying extra fees when you are completely aware of and understand the language of the contract. Contact several leasing agents before you sign a contract to see who has the most cost effective terms. Mileage When you drive a leased car it is easy to forget about the mileage limitations. Most leases allow you to drive 12,000...

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Can a Business Put a Mechanic's Lien on My Title to My Car If It is Paid in Full?

A mechanic's lien is taken against property to secure the amount of repairs that the property owner has authorized. These liens apply to homes as well as vehicles; both types of liens are called mechanic's liens. An automotive repair facility can place a mechanic's lien against a vehicle, even if the owner of the car has clear title because it is paid in full. Unpaid Repairs An automotive repair facility has the power to place a mechanic's lien against a vehicle in order to secure an amount due for repairs. Most repair orders state that...

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Do You Need a Credit History to Lease a Vehicle?

A car lease is both similar and different than a car loan. A lease means that you're basically borrowing the car, while a loan means that you're purchasing the car. Both a loan and lease require some credit history. If you've made any past car payments, rent payments or anything where credit is involved, you have credit history. Credit Needed Unfortunately there's no magical credit score that will get someone approved for a car lease, although credit scores over 620 are more likely to get a person approved. A lack of credit history will...

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The Bank Does Not Want to Repossess My Car

When a consumer defaults on a car loan, a creditor has a right to repossess the vehicle without giving any notice. However, in many cases a bank may not want to repossess a vehicle right away and give the car owner a chance to make payment arrangements. Some financial institutions want to avoid repossession, as the process is costly and time-consuming. Seizing a Vehicle When a consumer finances a vehicle, the loan contract lists what constitutes...

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Can a Minor Legally Purchase a Car?

Teenagers dream of owning their own car. Some of them will even save up to buy their first car. However, once they have the money saved, will they be able to purchase a car if they are under 18 years old? The answer to that depends largely on what state the minor lives in. Some states are willing to allow a minor to purchase a vehicle. Ability to Enter Into Contract The biggest thing preventing most minors from owning a car is that they cannot enter into a contract. Because a purchase agreement is considered a contract, a minor would not...

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How Are Finance Charges Calculated on Auto Loans?

A new car can represent freedom, but for many drivers it also means a five-year loan and another monthly payment to the household budget. Auto loans are issued by lenders that work with car dealers to provide loans at competitive interest rates. Understanding how finance charges are calculated is essential to knowing what a new car will actually cost you. Understanding APR When you buy a car the dealer is likely to quote you an annual percentage...

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Is it Possible to Quitclaim a Vehicle Title?

A quitclaim is the process that a property owner follows to forfeit his ownership of a piece of property to another party. Although the term "quitclaim" is generally more often used when referring to a piece of property --- not an automobile --- being transferred from one individual to another, you may still transfer an automobile from one person to another. It's more appropriate to refer to this process as removing a name from a car title to avoid confusion. Permission You can't simply remove your name from a car title in all situations:...

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Options for Refinancing a Car

Refinancing your car loan offers the opportunity to lower your car payment or save money over the term of your loan. You may be able to lower your interest rate, change your loan term or provide a down payment to lower monthly payments. Before applying for a loan refinance, determine if the option is beneficial. Resources Apply for your refinance at any bank or credit union that offers car loans. Check interest rates before choosing your car loan provider. Many lenders advertise rates on their websites. Credit unions or nationally based...

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Buying a New Car Vs. Old Car

Various vehicle options exist for new or used car purchases that can suit your budget. Depending on the vehicle you choose, you may find that prices for new and used cars are somewhat competitive. Before pursuing a vehicle purchase, determine your vehicle needs and overall costs of ownership. Price Comparisons Research pricing, safety ratings, fuel economy, specifications and values at manufacturer websites for new cars. Use Edmunds.com or the Kelley Blue Book website to obtain used car information. You may find that a particular SUV costs...

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Borrowed Car Agreement

Borrowed-car agreements are used frequently at car dealerships to allow prospective car buyers the option of borrowing the car they are contemplating purchasing. The agreement allows the buyer to borrow the vehicle for a specified period. Purpose A person deciding to purchase a car may ask the dealer if it offers borrowed-car agreements. Such an arrangement allows a person to take a car home for the night or for a specified amount of hours. This time allows the buyer to decide if the car is something that is really needed and suitable for...

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Does Paying Off an Auto Loan Earlier Improve One's Credit Score?

Credit bureaus use five distinct categories to determine your credit score, which lenders use to determine your creditworthiness. Payment history, outstanding debt, length of credit history, new credit applications and types of credit are the five categories that determine consumer credit scores, and some categories carry more weight than others. The benefit of paying off debts such as car loans ahead of the amortization schedule depends on the other type of credit accounts you have and the amount of money you owe on those accounts. Payment...

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How to Add a Lien Holder to a Certificate of Title

A title to a car can be corrected or another lienholder added fairly easily in most states. Usually, the owner of the vehicle does not add the additional lienholder; instead the person who holds the lien will file it with the state. However, if a lienholder was omitted from the original title, the vehicle owner may have to file the amendment. It's important to get the correct forms for adding a new lienholder on your vehicle's title and to make sure the new title is clear about ownership. Instructions 1 Contact your state's department of...

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Auto Refinance Options

You have several options available to you when refinancing your loan. You can ask your lender for lower rates and loan incentives and you can alter your loan term and provide a down payment. Before you apply for a car loan refinance, determine which loan factors you can change to obtain a more affordable loan. Auto Loan Provider To refinance your car loan, you can choose whichever lender you'd like. Rates vary for used car loans, so check websites of local and online auto loan providers or credit unions. If you choose a local bank, you...

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How to Renegotiate Auto Financing

There are two options for financing an automobile: Purchase financing in which the consumer takes out a loan to purchase the vehicle, and lease financing, where the consumer leases the vehicle for a predetermined term. In the former instance, the consumer incurs the depreciation of the vehicle and must cover any repairs or maintenance not included in the purchase--while in the latter, a consumer is shielded from depreciation, and leasing often includes...

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