When Can I Cancel My Car Insurance After My Car Has Been Repossessed?

You should cancel your car insurance the moment your vehicle is repossessed. Otherwise, you're paying to insure a vehicle that doesn't belong to you. You should also return your license plates promptly. This way, you will likely receive a refund from your insurance provider and your state for your prepaid registration. Cancelling Your Insurance As soon as you are no longer in possession of your vehicle or plan to drive it, cancel your car insurance. If you already know that your vehicle is going to be repossessed and have stopped driving...

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How to Borrow Money Against Cars

People can borrow money to buy or refinance cars. People often take loans out against cars they already own because the fixed-term loans have lower rates than unsecured forms of credit. Car loans generally have rates comparable with mortgage rates. When the prime rate falls very low, car rates dip below average mortgage rates. Most banks lend money only against cars less than seven years old. Some private dealers will offer loans on older cars, but normally only for purchases and not refinance or cash-out loans. Instructions 1 Find local...

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How to Calculate the Early Payoff of a Vehicle

Auto loans typically last anywhere from two to eight years, depending on the amount you borrowed and the type of loan you chose. If your loan term is longer than you want it to be, you can make extra payments to pay off your car earlier than expected and save some money on interest. Look Up Terms The amounts and timing of paying off your auto loan early will depend on the terms of your loan. Look up your starting date, interest rate, the length of your loan term and the current loan balance on your most recent statement or by logging into...

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How Badly Will a Lease Surrender Affect My Credit?

In the mind of a borrower, voluntarily giving back a car -- or lease surrender -- is better than defaulting on the debt and requiring the lender to forcibly take it back. Nevertheless, the credit agencies do not care and voluntary and involuntary repossession affect your credit in the same manner. Voluntary repossession is usually a cheaper option than a forced repossession. Identification Lease surrender affects your credit, because most car dealerships report auto lease accounts to the national credit bureaus. Repossession means the lender...

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How to Settle a Four Year Old Car Repo Debt

A repossession is damaging to your credit rating. If you want to settle your debt, you can do so, although the repossession may still stay on your credit report for up to seven years. Unless the debt is paid in full, your credit report will be updated with a note that you settled your account for less than the amount owed. However, settling your debt prevents you from being sued by your original lender, and depending on the amount you owe, it may...

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Can I Modify My Car Loan?

If you're currently experiencing financial hardship or have trouble making your car payments, your lender may allow you to modify your car loan. Many banks have programs in place to help distressed borrowers, although the bank may decline to work with you. If so, you may have other options. Modification Purpose Before calling your lender to discuss your options, determine how a loan modification can help you. You may want to discuss deferring payments or extending your loan term to lower your monthly payment amount. If you can't afford...

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How Should Gap Insurance Be Applied to the Loan?

Gap protection is often overlooked by consumers when they are financing a new or used vehicle. It can save a car owner a lot of money if a vehicle is in an accident and declared a total loss. Gap protection covers the difference that may exist between a car insurance payout and the loan balance. What Is Gap Insurance? An auto accident may leave your vehicle damaged beyond repair. Your auto insurance will determine and pay a fair market value...

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How to Negotiate a Lease & Car Deal

If you are interested in getting a new car but do not want to buy it, you can lease it instead. With a car lease, you have monthly payments just like if you were to get a loan to finance the new car. The difference is that at the end of the lease term you either give the car back to the dealer or buy it from the dealer. Typically you need to have top-tier credit to qualify for a car lease. If you have good credit, you can negotiate a lease at a local car dealership. Instructions 1 Determine how long of a lease you need because a car lease...

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Can You Sell a Car That Has a Co-Signer?

Most lenders and dealerships complete your motor vehicle paperwork the same time you complete your loan paperwork. Unless you stated otherwise, the lender or dealer probably listed your co-signer's name on the vehicle's title. As long as the titled co-owner agrees to sign the title, you can sell the car. Review the Title Take a look at your vehicle's title to determine whether you need the co-owner's signature. Some states titles list "and" or an "or" in between both owners' names. If your title reads "or" between the names, either one...

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How Soon Can One Refinance a Car?

In most cases, you can refinance your vehicle whenever you want. Check with your current loan provider, as it may charge early payoff fees. Vehicle equity must be in line with its loan amount for a refinance, which can prove a problem if you just purchased a new car. Consider your resources and whether an immediate refinance is possible. Lender Requirements If your current lender has refinance restrictions or early payoff fees, you'll find the information documented in your loan contract. Call your lender for more information or to find...

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How to Calculate an Auto Loan Payment

Before you even go to the dealership to shop for a new car, it's a smart idea to do some budgeting tasks to find out what you can and can't afford. Based on your current income, what car payment will fit comfortably in your monthly finances? You can do a simple calculation to estimate your auto loan payment by using a few pieces of information regarding your impending car purchase. Don't step foot into a car dealership, full of professional sales...

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Consumer Guide to Buying Used Cars

Purchasing a used car requires time and effort to ensure you are getting the best deal possible. Not all used car dealers are honest about a vehicle's history and by the time you realize there is a problem with your newly purchased car it could be too late. Before you begin shopping around for a used car, do your homework to fully understand what to look for in a specific type of vehicle or with a particular dealership. Buyers Guide The Federal...

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Can You Return a Vehicle the Next Day After Purchase?

Many new car buyers experience "buyer's remorse" shortly after purchasing a vehicle. Once they get the car home, they feel bad about the decision and want to return it. In most cases, you will not be able to return the car, but occasionally, certain programs allow you to give the car back. Three-Day Rule The three-day cooling off rule was put into effect in 1972 and protects consumers from being stuck with certain items with which they are not happy. However, the three-day cooling off law does not apply to new vehicles, only to items sold...

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How to Sell a Used Car With a Loan

You can sell your car even if you still owe money on it. Once you sell the vehicle, you'll be able to bring the money to the bank and obtain a lien release or the title (if your state holds it while money is owed) to give to the new owner. If you owe more money than you can sell the car for, you have to come up with the rest of the money to cover the payoff amount. Instructions 1 Call the bank to which you make payments. Ask the representative...

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How to Turn in a Leased Car When the Lease Is Up

Leasing banks may differ slightly on lease-return requirements. Most lessors send out mail that details your end-of-lease options and offers instructions for the return procedure. Many banks also offer or require an inspection process, free of charge to you. The bank will provide you with a number to call to arrange an inspection so you'll have time to repair or service the vehicle before the end of your lease. Unless your car is in perfect condition, consider completing an inspection to ensure you won't pay end-of-lease fees for excess wear and...

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The Lemon Law Guide

When buying a new car, you want to know that it will perform as it should and drive without any problems. If your new car has a problem that keeps it from driving, you may have a lemon on your hands. Lemon laws can work in your favor to help you get a replacement car. Lemon Law When you buy a new car that breaks down shortly after you purchase it, lemon laws can protect you. A lemon is defined as a new car that has a substantial problem that has not been fixed within a reasonable number of tries. It could also be a car that has been out...

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What Does It Mean to Refinance a Car Loan?

Refinancing a car loan is essentially replacing the current car's loan with another. Reasons for wanting to do this vary, but some reasons include wanting a better interest rate or needing a longer term to lower payments. Learn more about why you might consider a vehicle refinance and how to go about pursuing one. Interest Rates Some borrowers may have purchased a vehicle during a time when their credit was not in good standing, resulting in a higher than average interest rate. Perhaps rates have dropped or a potential lender provides...

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How to Recover Personal Items From a Repossession

During difficult financial times, consumers find themselves having to let go of their cars through repossession. However, just because you lose your car does not mean you have to lose your personal belongings that were in the car at the time of its repossession. You can seek legal action in small claims court if the repossession company does not give you your items back. Instructions 1 Make a list. Try to remember everything you had in your car. Document items such as car seats, books, CDs or other equipment you may have had in your car....

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How to Calculate Finance Charges on a Car Loan

An individual may borrow a certain amount of money to buy a new or used car from a bank or other lender. The loan amount is commonly referred as the principal. Under the car loan agreement, the money is paid back in regular monthly installments over a designated period of time. Since the lender typically provides the money at a specified annual percentage rate (APR), you will pay back not only the principal, but also a certain amount of the interest (finance charges). As an example, calculate the finance charge for a $25,000 car loan given with...

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Tips for Purchasing Used Vehicles

If you buy a used vehicle that has been well cared for, has low mileage and is less than three years old, you will pay thousands of dollars less than if you bought new, and get a vehicle that is nearly as good. Keep your wits about you when buying a used vehicle; be willing to walk away if the price isn't right, and you will eventually find what you want. Inspect the Title Take a good long look at the title for the vehicle before you buy...

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What Is the Legal Way to Repo a Car in Montana?

When you take out a loan for a vehicle, you agree to pay the loan back in exchange for the use of the car during the loan period. If you fall behind on your payments, your lender may repossess the vehicle. In Montana, lenders may repossess vehicles either with or without a court order as long as they follow proper procedures. Peaceful Repossession If a debtor defaults on the obligation to pay back a vehicle loan, the lender may repossess the vehicle without a court order if he can do so peacefully. Peaceful repossession requires the cooperation...

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Why Are Older Cars Hard to Finance?

When you apply for any type of secured loan, your lender has the right to take ownership of the collateral if you default on the loan. The more valuable the collateral, the less risk the lender assumes. The lender has a better chance of recouping its money if it seizes valuable collateral rather than collateral with minimal worth. Because cars lose value over time, older cars are generally harder to finance. Depreciating Value Most vehicles have some kind of warranty that protects both the car owner and the lender against financial loss...

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True Market Value of a Used Car

Whether you're planning to buy or sell a used car in the near future, you should understand the concepts and methods of determining vehicle market values. Knowing the true value of a vehicle puts you in a position to get the best possible deal as a buyer and to set a realistic starting price as a seller. What Is True Market Value? Before you start exploring the value of a used car, it's important to fully understand market value. A market value of any asset is just an estimate. True market value is what a buyer would pay for the item under...

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What Is a Co-Sign Car Loan in California?

Banks in California may require a co-signer for potential car buyers who have credit history blights or a lack of credit history. A co-signed loan has two signatures on it, one for the buyer and one from another person who won't use the vehicle. Before you enter into a co-signed loan, learn a little more about how the contract will affect both parties. Defining a Co-Signer California law defines a co-signer as someone who signs the loan...

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Reasons to Trade in a Car

Unless you must immediately replace your vehicle following a devastating accident or a major mechanical breakdown, the time is going to come when you'll need to make the decision to bid your trusty -- or not-so-trusty -- car goodbye, trade it in and get a new ride. Determining when it's time to trade up can be difficult sometimes, although many vehicle owners have common reasons for trading in their car for something better. Fuel Efficiency ...

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Will My Car Be Repossessed After 2 Months?

Your purchase contract specifies when and why your vehicle can be repossessed. In most cases, the bank can repossess the car as soon as you miss a payment, although most banks typically do not act that quickly. If your account is past due, immediately call your bank to avoid repossession. Repossession is reported to the credit bureaus and damages your credit. New Contracts If you financed through a dealer, you usually have 30 to 45 days until your first payment is due. If for some reason you did not get your loan information or a payment...

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How to Refinance a Vehicle to Take a Co-Signer Off

Removing a co-signer from your auto loan will require that you reestablish the loan by yourself or with the aid of another co-signer. You can choose to refinance the auto loan through the original lender or begin financing with another lender. The process will entail reworking the loan to have the credentials of the co-signer excluded from the evaluation. If you or you and your new cosigner are not able to secure financing, you will not be able to modify or refinance the loan, and the co-signer will still be held to account for the auto loan. ...

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Tips for Negotiating Car Interest Rates

The negotiation process involved with buying a new or used car can be an intimidating experience for the unprepared. Certain financial numbers, like an auto loan's interest rate, can significantly impact the overall price you are required to pay for an automobile. There are several strategies you may employ when negotiating an interest rate with your dealership or bank, which can put you in the best possible position to secure a low rate. Know Your Credit Score Knowing your credit score, especially if your score is over 760, which is considered...

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How to Find Car Loans for People With Poor Credit

Credit problems can make it difficult to find a dealership or car lot to purchase a car. The car dealerships may use in-house financing or have a partnership with a bank or financing company to provide loans for their vehicle purchases. The credit requirements for the financing companies may vary greatly, and knowing how to find a dealership that has options available for bad credit borrowers will save you time and money. Instructions 1 Search for dealerships that do not do credit checks or who specialize in bad credit borrowers. These dealerships...

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What Are the Options When Upside Down on a Car Loan?

When people shop for a new vehicle, there is a 40 percent chance they owe more on their old vehicle's loan than the car's fair market value, according to the financial website Bankrate.com. This is known as an "upside down" auto loan and occurs mostly because cars depreciate as much as 50 percent during the first two years of their life. Sometimes the best option is to stick with the status quo. Keep It Auto loan experts, such as Philip Reed,...

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Do They Check Your Credit When You Lease a Car?

Leasing banks check the credit reports of anyone applying for a lease. You must have good to excellent credit to lease a vehicle. Financing may prove a better option for those with poor credit. Determine your credit standing before you apply for a lease and learn which other information banks use to determine your application approval. Check Your Credit Obtain a copy of your credit report from the three major bureaus to determine your own credit standing. Leasing banks may review your credit information from one or all three bureaus. AnnualCreditReport.com...

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Can You Combine a Credit Card Into a Car Loan?

Maintaining positive debt ratios is difficult in times of economic uncertainty. Credit cards are notorious for high interest rates and fees. If you are unable to keep control over the payments, compounding interest can spiral into financial doom. To combat this problem, consumers search for refinance options and invariably wonder if their car loan can do more than pay for the shiny automobile in the garage. Car Loan Basics Car loans are lending agreements secured by your vehicle. In the event you default on payments, your lender has the...

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What Numbers to Look at When Comparing Vehicles to Lease

No two leases are created equal. Beyond lease residuals, interest rates and cap costs, lease advertisements consist of a predetermined term, mileage allowance and down payment requirement. To compare vehicle lease deals, carefully review the advertisements offered on manufacturers' websites. Term Advertised lease terms are flexible; you can alter the term of a lease anywhere from 24 to 60 months. For advertising purposes, the cheapest term is already figured, so changing it will cost you more than the monthly payment you see advertised....

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