Is a Bank Account Needed to Get a Car Loan?

There are many things needed to get approved for a car loan. The list of specific items is determined by the bank or lending institution where you apply. It is possible to get approved for a vehicle loan without a bank account, but most lenders won't allow it. Requirements Most lenders approve car loans based on your credit score, income and how well you have paid your credit obligations in the past. At the time your application is submitted...

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Most Important Tips When Buying a Used Car

If it's time to trade in your current vehicle for a "new used" car, you can do it by walking into a dealership and choosing a car based on cosmetic appeal alone -- or you can do your homework and take your time before you make up your mind. If you take your time and make a decision based on a mechanic's report and maintenance records, you're much likelier to be happy with your choice. Get a Mechanic When you are looking at a car, don't commit...

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What Happens If You Do Not Turn a Car in at the End of a Lease?

As stated in your lease contract, you must turn in your vehicle at the end of the leasing term. While repercussions and penalties are further stated in your contract, you can expect significant penalty fees or a repossession if you do not return the car, as the vehicle is not yours if it is not paid for. Contract Go to your lease contract to review bank penalties. Your lease contract also lists the lease buyout amount, or your last lease payment which is due upon the end of your term to keep the car. Most banks try to contact you before...

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What Are the Qualities I Need to Lease a Car?

Car leasing banks require good to excellent credit for application approval. Expect to provide your credit information when applying for a lease. Aside from credit score and history, leasing banks also determine an applicant's debt-to-income ratio, which is the lessee's ability to pay his monthly lease payment. If you're turned down for a lease, consider financing instead. Good or Excellent Credit Expect to provide a credit application to lease a vehicle. A leasing bank reviews all of your current and past accounts, including payment history,...

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Can You Buy a Car While on Unemployment With a Cosigner?

Unemployment is a form of temporary income. Most lenders won't approve a loan without a stable income and verifiable employment. A cosigner, however, secures the terms of your loan with his income and credit rating. Whether or not you'll obtain a loan approval depends on your and the cosigners credit history and income. Debt-to-Income Ratio Lenders review each loan applicant's debt-to-income ratio. This ratio consists of the money you and your cosigner have coming in compared to the amount of debts you have to pay out. Because your cosigner...

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Hints and Negotiating Tactics When Buying a Car

Negotiating the price of a new car can intimidate prospective buyers. Car dealers never automatically offer the lowest possible price of a vehicle and always attempt to make the most profit possible. In order to negotiate successfully, you need to be an informed and determined buyer. Determine Dealers Costs Find out what the dealer most likely paid for a certain vehicle by searching for dealer invoice pricing. Also, research the Manufacturers Suggested Retail Price (MRSP). Determine if your car choice has any rebates or dealer incentives....

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How to Change a Car Registration

Every state requires drivers to register their cars, trucks and SUVs before driving them on public roads. While laws vary by state, many of the procedures are the same. You can also change your registration if you change your name, transfer the car from a parent to a child or move. Requirements Your state's department of motor vehicles will supply a list, either in a brochure or on its website, of the information you need to present when...

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The Correct Way to Handle Lease Termination

The primary advantage of a car lease is that, through lower monthly payments, you can afford a nicer vehicle than if you opted for financing. Leasing, however, is not permanent. Lease terms vary by dealership, but at the end of the lease you must return the car to the dealership. In essence, you are "renting" your vehicle. Whether you terminate your lease at the end of your contract or break your lease early, following the right protocol helps you...

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What Are the Benefits of Paying Cash for a Car?

Many car buyers are accustomed to getting a loan from the bank or working out a payment schedule with the car dealer. Before financing your purchase, take the time to figure out how much money it will cost you over the life of your car. No Interest If you buy a car with cash, you've paid for it before you even drive it home. You will never make an interest payment on it. If you borrow $10,000 to buy a car at 5 percent interest and take five...

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What to Do When You Are Behind on Car Payments?

If you're behind on your car payments, immediately call your lender to discuss your financial situation. Many lenders can offer help to distressed borrowers to eliminate late fees, bring payments current or lower a car payment. Repossession should be your last resort, as it significantly damages your credit rating. Consider the different options your lender may offer and if any can help you to bring your payment current. Defer Payments Ask your lender if you can defer one or more of your car payments. If your lender allows this, it can...

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How to Buy a Repo Motor Home

Purchasing a repossessed motor home can save a buyer a lot of money, according to MotorhomeRV.org. Many lenders repossess a motor home from the owner when the payments are not made on time. The motor home owner may also voluntarily surrender the vehicle to the lender if the payments are no longer affordable. The lender then must sell the motor home to help offset a potential loss. Lender Repossessions Contact a lender in your area and ask...

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The Legal Amount of Time to Return a Car That Can't Get Financing to the Dealership

If a dealership let you take a vehicle but couldn't obtain an approval from a lender, bring the vehicle back immediately. Since the vehicle isn't paid for, it still belongs to the dealer. If you don't bring the car back, the dealership can report it as stolen. Most dealers will work with you if you are out of town or need a day or two to return the car, but don't assume so. Issues with the Purchase A dealership does not directly lend money. If you purchased a vehicle after banking business hours and signed paperwork, the paperwork you signed...

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How to Price a Salvage Title Vehicle

The term salvage can mean different types and degrees of damage in various situations. A previously salvaged vehicle might have sustained heavy flood damage or a bent frame in an accident or it could have been recovered soon after a theft and never been damaged. While a salvage title will always reduce the resale value of the vehicle, it is critical to assess what type of damage was done and to get a detailed inspection of the car or truck in question....

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How Will it Affect My Credit If I Return a Car Back?

Returning your vehicle back to a dealership or bank is known as repossession. Breaking a loan contract significantly impacts your credit rating. Learn what to expect after the vehicle's return; you will still owe money to your borrower. Your credit can be further damaged if you don't pay your lender for the balance due after the resale of your repossessed vehicle. Repossession If you make arrangement to return your vehicle, it is known as a voluntary repossession. If your lender hires an outside collection company to collect your vehicle,...

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How to Change Your Address on a Car Insurance Policy

When you change the address for your car insurance, the policy is reassessed to calculate risks because of the distance you travel yearly. If you increased your daily driving mileage or moved to a high-crime area, you will likely see a price increase. For this reason, you should call your insurance agent as soon as possible. While you may be able to access your policy information online to make changes or adjustments, calling your agent ensures you'll be aware of any price changes that result from your address change. Instructions 1 Find...

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Can I Refinance My Car Lease at My Credit Union?

If you want to finance your leased car, you must purchase it from your leasing bank. For this reason, the process is considered a first-time finance, not a refinance, which implies transferring a loan from one lender to another. You may finance your leased car at a credit union as long as you can obtain loan approval. Benefits of Using a Credit Union Credit unions are local to an area, serving communities as nonprofit organizations. Auto loan rates and various banking fees are often lower at credit unions than at banks. For this reason,...

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Can I Still Donate My Car Even If It Hasn't Run in Years?

Most charitable organizations that accept car donations will gladly take a car that does not run. You should remember, however, that the cost of removing such a vehicle is higher as a tow truck is required to move it. To make the effort worthwhile for the charity, the vehicle must be in sufficiently good condition and have at least some value beyond the scrap metal. Charitable Donations Old cars are among the most popular items that are donated...

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How to Lease a Company Car Without a Cosigner

Even though you plan to lease a car in your business's name, you must apply as the lease's guarantor. A leasing bank uses your personal credit information, income and payment history to determine whether to approve your lease application. Upon approval, you may register and title the car to your business. If you fail to make payment, your own personal credit will suffer. Good credit is a requirement of lease approval, so if you can't obtain an approval because of less-than-perfect credit, you might have to finance the vehicle instead. Instructions...

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California Law on Lien Sales

In California, car owners who fail to pay for repairs, towing, furnished supplies or storage fees for their vehicles run the risk of losing their cars at a lien sale. The California Civil Code outlines a legal process by which a lien holder can get paid the money owed by taking the car owner to court and obtaining a judgment against him, or a non-judicial process in which the lien holder can sell the car at a lien sale. Lien First and foremost,...

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Car Lease Strategy

You can likely save more money per month than lease advertisements indicate, even with a lower down payment amount than you find advertised. To get the best lease deal, consider shopping from your home computer and emailing dealers to negotiate. Consider minimizing your down payment amount and maintaining your vehicle properly during your contract to avoid paying money at the end of your contract. Lease Comparisons To determine current lease offers, go online to manufacturer websites to view lease advertisements. Manufacturer lease offers...

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What Are the Rights of a Cosigner on an Auto Loan?

Buying a new car can be expensive and many are purchased with financing plans, which require a down payment and monthly future payments. In some cases, according to CarBuyingTips.com, buyers with bad credit receive less favorable financing plans, higher interest rates and may need the assistance of a cosigner. A cosigner is someone who signs the contract with the buyer and commits to making payments should the buyer default. Because of the risks involved in cosigning (credit and financial loss), it is imperative to know your rights. Ownership...

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How to Get Out of an Auto Lease Without Affecting Your Credit

That sport coupe you leased a year ago was the right car at the time for you and your spouse, but with a baby now on the way it will soon become wholly impractical. Your child will be a toddler before your contract expires, certainly not a happy thought for any parent. There is a way for you to get out of an auto lease without inflicting damage to your good credit. What is more, if you want to come away with a new car, you may be able to do that too. Instructions 1 Review your lease agreement. Look for a provision or clause outlining...

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How to Find a Student Auto Loan

Students without a credit history may have a difficult time qualifying for a car loan. A credit history provides the financial institution a way to verify the applicant is capable of paying back the borrowed money, since many students do not have a credit history. However, there are financial institutions that will work with students to secure a car loan without the traditional requirements. To qualify for the auto loan, the student may need a co-signer...

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Car Depreciation Rules

Buying a new car is a big financial commitment, whether you dip into your savings or finance the car and take on a monthly payment. In either case, one thing you'll need to prepare for is depreciation, which occurs over time as a car naturally loses value. Understanding the rules of depreciation can help you maintain your car's value and plan ahead for its sale or trade-in. Factors Many different factors contribute to auto depreciation. They include the region where you buy your car, the make, the model, the optional features and how many...

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What Do I Need When I Buy a Car?

You should always thoroughly prepare when buying a car. Know your credit score and report, payment range and what you are looking for before applying for a car loan. Make a list of questions you may have and items to take with you when you begin your new car search. Employment Lenders want to see that you have a job with sufficient income to make the payments and afford your other living expenses. They generally look for a monthly income...

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How to Calculate a Lease Payment With Money Factor

Calculating a lease payment with a money factor lets you estimate the monthly lease payment for a vehicle before you visit the dealership. This lets you consider just how well a particular vehicle can fit within your monthly budget. Money factors are used to express the interest rate applied to an automobile lease, and it is equivalent to a interest rate divided by 2400, explains Edmunds.com. For example, an interest rate of 4.99 percent converts...

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If I Owe Money on My Car Can I Buy a New One?

Buying a new car while you owe money on another loan is a possibility, although not everyone can have two loans at once because of income or credit issues. You can also trade your vehicle toward a new purchase; the dealer will pay off your old loan. Before pursuing either option, budget accordingly or consider trading or selling your car instead. Bank Determining Factors When you apply for a second car loan, a bank uses your current income as a determining factor. The bank accesses your credit history to view your debt. On your credit application,...

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