Can You Take Over an Auto Loan for Someone Else?

Some auto financing lenders may be willing to transfer a loan provided the new buyer qualifies with appropriate credit and employment history. However, many lenders have restrictions that do not permit an auto loan to be transferred. If the seller is willing to sell and the buyer is able and willing to buy, there may be a way to execute the transaction. About Loan Responsibility The loan is a legal contract between the lender and the person who purchased the vehicle and signed the loan agreement. That original buyer is responsible for making...

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Requirements to Finance a Car

Whether you're a first-time buyer or a seasoned veteran on the subject of automobile financing, there are certain requirements you must provide to obtain a loan. Meeting those requirements becomes increasingly important with every additional dollar you borrow. Down Payment There are times when you can get a car loan with little or no down payment. Most times, however, you need about 10 percent of the full purchase price of the new car as a down payment. A down payment partially shields the lender from the depreciation of the car. In lieu...

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How Long Do You Have to Pay on a Vehicle Before You Can Refinance in Your Own Name?

A co-signer is someone who secures your loan with either his income or good credit standing. People need co-signers for various reasons, so the time it takes before you can re-apply for a car loan depends on your own credit issues. To determine when you can refinance your car loan on your own, consider why you had to use a co-signer in the first place. Income Issues Some buyers need to use a co-signer because of income issues. If you don't make enough money for a loan approval, your lender considers your co-signer's income along with yours....

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How Will a Home Equity Loan Affect a Car Loan?

When you apply for a car loan, an existing home equity loan could have an impact on your ability to obtain that loan. Lenders look at your existing debts and how you manage those debts before extending new credit to you. Additionally, you cannot take out a car loan unless you have sufficient income to pay both that new loan and your existing debt payments. Credit Score Lenders make regular reports to credit bureaus about your credit management. High balances and payments made more than 30 days late have a negative impact on your credit...

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Do Insurance Companies Offer Car Replacement for a Totaled Car?

The auto insurance industry offers a bewildering array of insurance policies and options. The last few decades have seen the basic idea of auto liability and/or collision coverage morph into a wide variety of options. One option is comprehensive coverage, which includes loss from theft or weather-related damage, towing and/or rental car coverage while your vehicle is being repaired, as well as "gap" coverage and new vehicle replacement coverage where you receive a new car and not just the current value of your totaled vehicle. Basic Types of...

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Predatory Car Loan Lending Laws

Predatory auto loans are those that are comparatively more expensive than regular auto loans. They may exhibit variable interest rates, high fees or unusually high annual percentage rates. Those who fall victim to predatory lending tend to be the most financially vulnerable. Few federal laws are in place to regulate the practice. Predatory Car Loans Generally, a car loan can be considered predatory if the interest rate of the loan is considerably higher than that of others. Such loans not only target customers with low or no credit scores,...

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If I Have a Car Repossessed How Can I Get a Good Credit Score Again?

Having a car repossessed can be a traumatic experience resulting in additional financial hardship. On the upside, it can also be a stark reminder that it's time to get back on track with finances. It's not impossible to get a good credit score again after having a car repossessed, but it will take some time, discipline and motivation. Researching ways to improve credit scores after your car is repossessed will help you decide which course of action...

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Tips on Knowing When to Sell or Trade in Your Car

Dealing with an old car is one of the more difficult parts of buying a new car. Buyers of a new car have to weigh the importance of getting the best possible deal on their old car against the amount of time spent selling the car. Though the decision to trade in or sell the car is a personal one, there are a number of factors that new car buyers should consider when getting rid of their old vehicles. Determining Value Before either selling...

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What to Know Before Buying a Car

Buying a car and getting a good price and interest rate requires savvy skills. Car salesmen and dealerships want to make a certain amount of money on each purchase, and lenders base interest rates for auto loans on credit scores. For these reasons, there are several things to take into account before buying a car. Invoice Price The sticker price on a new automobile is what the dealer hopes to receive for a new car purchase. However, the invoice price is what they paid the manufacturer for the car, and knowing the invoice price paid by dealerships...

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What Is Required to Get a Used Auto Loan?

Buying a used car can be an effective way to avoid the rapid depreciation that comes with buying a new car. If you want to buy a used car, you may need to get financing to help with the purchase. Qualifying for a used car loan requires you to meet certain guidelines. Used Car Loan Differences Getting a used car loan is similar to getting a loan for a new car, but a few key differences are evident. One of the differences between a new and used car loan is in the term. Most of the time, a new car loan will give you a longer term to borrow...

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How to Buy a Semi With a Bad Credit Score

Bad credit can affect many financial decisions you make in your life. It can also affect the type of employment you seek. When it comes to semi-truck financing, the best credit scores get the best loans---which can become quite costly. Learning to obtain financing even with bad debt can help you develop your business with an owner-operated semi-truck. Instructions 1 Obtain a copy of your credit report. You'll want to know exactly what your credit looks like before you begin seeking financing. Some red flags that lenders will see as increasing...

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How to Refinance a Motorhome

When you financed your motorhome, your lender gave you a set interest rate that helped to determine your monthly payment. That interest rate was based on the average interest rates at the time of your purchase, your credit and the basic policies of your lender. Motorhomes can take more than a decade to pay off, and some of those variables can shift during that long period of time. Refinancing your motorhome could give you a better interest rate,...

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Tips on Getting a Car Loan

Reliable transportation is a must for busy adults. And while many people would prefer paying cash for an automobile and avoiding a car payment, not everyone has this kind of cash on hand. Fortunately, auto lenders provide financing, which allows buyers to purchase a new or used vehicle. But before applying for an auto loan, it's smart to familiarize yourself with lending requirements. Improve Credit History You don't need perfect credit to...

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What Forms Do I Need to Sell a Car?

Selling your car allows you to rid yourself of an unwanted vehicle and make some money in the process. Additionally, selling your vehicle will allow you to put funds toward purchasing a new vehicle. Although selling your car is a simple process, you need to turn in a few forms at the time of sale. Car Title A car title is a legal form that establishes proof of an individual's ownership of a given vehicle. Although car titles vary slightly...

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How to Calculate the Monthly Payments on Buying a Car

Several online calculators on the Internet allows you to calculate monthly payments on car loans. However, if you want to crunch the numbers yourself, you can follow a simple formula to find the monthly payment amount. Both methods allow you to tweak the interest rate and other inputs to see how changes affect the monthly payment amount. As long as you know the price, down payment amount, interest rate and loan term, you can perform simple calculations...

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Tips on Buying a Used Vehicle

Buying a used vehicle can save you a substantial amount of money since the moment a new car is driven off the lot, the value of the car drops by several thousand dollars, according to Car Search. After three years, a car is only worth 60 to 70 percent of what was paid for it new. Although buying a used car makes economic sense, if you do not go about it in the right way, you risk problems such as having to repair damage you did not see and suffering...

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Does a Vehicle Lease Show on Your Credit Report?

A vehicle lease does not appear on your credit report, but some facets of the leasing account are shown. Some banks may only report to one credit bureau, while others report to all three. Consider which lease information is reported to the bureaus and how your payment history may affect your chances to pursue other lines of credit. Lease Account Information Your leasing bank may report your account information to one or all three of the major credit bureaus -- Experian, Equifax and TransUnion. Various lease account information appears on...

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Advice For Buying a New Car on the Internet

Many consumers have turned to the Internet to purchase new cars instead of going to the dealership. This process might seem uncomfortable for you if you have never done it before, but it could potentially save you a great deal of time and money. When shopping online, it is important to keep some basic tips in mind. Research Model When you are shopping online for a new car, the first thing you need to do is determine what car you want to look for. At that point, you need to do a great deal of research on the car itself. You can go online...

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Credit Issues with Car Financing

Credit issues will not necessarily prevent financing a car. However, this may require employing specific techniques to ensure you get a car loan. Auto lenders work with all types of borrowers; and regardless of whether you have bad credit or no credit history, financing options are available to you. Credit Help Credit issues can prevent applying for a car loan on your own. To help ensure that you are approved for a car loan, consider using a co-signer on the auto loan. This can be anyone you trust with a good credit history, perhaps a parent,...

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Options for Getting Out of a Car Lease

Car leases typically offer lower monthly payments, and you have the option of driving a new car every few years. But oftentimes, situations occur wherein those who lease cars have to get rid of their vehicle. There are multiple ways to get out of a car lease. And sometimes, you can get out of a lease without ruining your credit score. Return Vehicle to the Dealership If you have buyer's remorse or simply don't want a leased vehicle anymore, several options are available. Depending on your state and the details of your lease agreement, the...

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The Pros of Auto Leasing

Many who are in the market for a car have a hard time deciding between buying and leasing. While buying a car can be beneficial in certain situations, leasing also has some major advantages for certain consumers. Those who lease cars get benefits such as lower payments and fewer maintenance issues. Choice of Car When you buy a car, you are limited to the type of car that you can afford. When the monthly payment is calculated, many people...

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How to Sell a Financed Vehicle

If you have an auto loan on a vehicle that you do not want to keep, that does not have to stop you from selling the vehicle. While it can be difficult to sell a financed vehicle, it can be done. As long as you can find a trusting buyer, you can make the sale without the car title and give it to the buyer after the loan has been paid in full. Instructions 1 Check the fair market value of your vehicle by using the Kelley Blue Book or NADA Guides website (see Resources). This gives you an idea of what you can get for your car when you sell...

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How Is an Auto Loan Calculated?

Down Payment and Term Typically, financial institutions offer auto loans for 36 to 72 months, which will affect how the loan is calculated. The length of the loan, also called the term of the loan, affects the monthly payment the buyer will make. The down payment, if any, also affects the amount of the monthly payment. Some financial institutions may have special offers such as 100-percent financing, especially with new auto purchases....

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How Long Should I Wait to Refinance My Auto Loan?

Most people depend on their vehicles to get them where they need to go---work, shopping, a friend's house, church. Most people also have to take out a loan to cover part or all of the cost of their ride. Refinancing can save a person with an auto loan hundreds or even thousands of dollars, but it isn't always clear when the refinancing should be done. Loan Provider Consider who provided the loan. If your loan is from a dealership, then you probably didn't get a very good deal in terms of the interest rate. This is one of the reasons people...

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What Are the Buyout Options After a Lease Is Done?

Those who lease cars typically do so to save money on their monthly payment and to avoid the hassles of owning a vehicle. In some cases, though, you may consider buying the vehicle toward the end of your lease agreement. In this situation, you have a few different options to look at before making a decision. Buy the Car Early Towards the end of your lease, you may wish to buy the car. When you find a car you love, sometimes it is hard to let go. At any point during the lease term, you have the option of buying the vehicle. The leasing company...

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Alternative Vehicle Financing

Alternative financing for vehicles includes subprime bank loans and buy-here, pay-here programs. Both options allow people who do not have good credit, also known as high-risk buyers, to purchase a vehicle without having to pay cash. Before pursuing a car purchase using either of these sources, consider the benefits and disadvantages to decide which is financially best for you. Benefits For a customer with poor credit, subprime financing or specialty lots may prove the only option to purchase a vehicle without cash on hand. Some buy-here,...

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How to Use a Credit Card for a Down Payment on a Car

Consumers use credit cards to finance many transactions because they do not have cash available, or they would rather put it on a card now and pay it off at a later date. However, people may not realize that it is possible to make a down payment for an automobile with a credit card. Car dealers see credit cards as cash when used to fund an initial down payment amount, and buyers who are wise enough to use a credit card with a rate of 0 percent interest...

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Auto Leasing vs. Buying FAQ

When you visit an auto dealership with the goal of acquiring a new car, you may be presented with the options to lease or buy it. Many people in this situation find themselves asking some of the same questions and covering the same issues when choosing to lease or buy a car. Is it Cheaper to Lease? Most car dealers will try to convince you that you will save money by leasing rather than buying the car. Dealers like to lease because it lets them make money on a car and then get it back to sell. The least expensive option will depend on several...

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How Much Money Do You Save Buying Out Your Own Car Lease?

You might not save any money when buying out your car lease. Leasing payments are based on expected depreciation over the term of your contract. The expected value at the end of the contract, known as the residual value, stays out of your payments. For this reason, payments are lower than a comparable finance, but lower payments result in less equity. Researching Costs Compare your lease purchase price to the vehicle's resale value to determine whether you'll save money by purchasing your lease. Ask your leasing bank for your lease buyout...

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What Is the Difference Between a Co-Applicant & Joint Applicant for a Car Loan?

Determining whether you want to be a co-applicant or joint applicant on a car loan can be confusing, because different government entities may use the terms interchangeably. However, these are basically the same thing. What you want to watch out for is if the creditor calls you a co-signer. Definition The actual definition found in Regulation B does not state a difference between the terms co-applicant and joint applicant. These both apply to two or more people who request credit in both names, according to Bankers Online. On a car loan,...

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How to Calculate the Percentage Rate When Buying a Car

It's no secret that car dealerships make money selling cars, but the biggest profit is usually not in the sale of the car itself but in the financing. A common sales tactic of car dealers is to provide you with an out-of-pocket amount and a monthly payment for the car you're interested in buying with the interest rate conveniently left out of the equation. Many buyers sign on the bottom line as long as they can afford the monthly note without realizing that note includes an interest rate far above what they should be charged. Instructions ...

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How to Go About Getting Your Car Back After a Repossession Has Happened

A loan holder can repossess your car if you fail to make payments. Getting the car back after it has been repossessed can be difficult, and sometimes impossible. The process varies a bit because of different laws in different states, so it is a good idea to contact a lawyer with experience in repossession cases in your state. You also can try to get the car back on your own by contacting the lender and following through with agreed-upon terms. ...

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What Does it Mean to Have Your Car Loans Refinanced?

Refinancing is a way to replace an existing car loan with a new car loan. Your new lender provides you with a new loan that pays off your old loan. Refinancing on car loans is generally done to help lower monthly payments. The original lender will release its lien on your car after it has been paid off by the new lender, who now has the lien on your car. The original lender no longer has the right to repossess your car, but the new lender will have the right to take it back if you default in your loan payments. Purpose The general purpose...

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Can You Trade in a Leased Car Early to Buy Another Car From a Different Dealership?

At any time during your lease, you or someone else can purchase your vehicle from your leasing bank, allowing you to trade in your car to a different dealership than the one holding the original lease. To do so, your dealer must satisfy your leasing bank with the leased vehicle's purchase price, even if you owe more than the vehicle is worth. Value vs. Buyout Before you decide to trade in your vehicle for another purchase, check your car's value against your lease buyout price. Leased vehicles are often purchased at a higher price than...

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Can the Car Dealership Call Me and Change My Interest Rate After Signing the Contract?

Dealerships don't determine loan interest rates or loan approvals. While you may have already signed a loan contract and motor vehicle paperwork, you don't actually own the vehicle until the dealer receives payment from the lender. The lender may decide to offer different lending terms than the dealer originally quoted. Application Approvals When you finance through a dealership, the dealer accepts a credit application from you and submits your application electronically to one or several lenders. The dealer can also check your credit score...

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