What Does It Mean When a Delinquent Auto Loan Account Is Charged Off?

Any account delinquencies can have a negative effect on your credit report. However, auto loan delinquency can be particularly problematic, because its a secured debt. Unsecured debt, such as credit cards, doesnt have a piece of property to back it up if you default on your payments. Secured debt, such as home and auto loans, has your home and auto to back it up -- a fact your bank knows well. Definition When an account is charged off, whether...

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The Benefits and Pitfalls of Leasing Cars

Leasing is a way to finance the acquisition of a new or used car. With a lease, you do not pay for the complete purchase price of the vehicle; you pay for how much you have used the vehicle. It is essentially a long-term car rental. You must determine if a lease is right for you, or if you would be better off buying a vehicle. Benefit: Lower Up-Front Costs Often with a lease, the dealer will not require a down payment. With many leases, you...

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How to Get Back a Cash Deposit When Buying a Car

Car dealerships will not keep your deposit if you purchase a vehicle, but if you want your money back from a dealer or private seller after deciding you no longer want the car, you should read over your receipt to see your rights. Have the seller write "deposit refundable if buyer changes mind" on your receipt, or pay with a credit card so you can dispute the charge, if necessary, with your credit card company. You need to know how you can get your...

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Auto Leasing Pros & Cons

A car dealership will often offer a customer the choice to purchase or lease a car. With a car lease, the customer receives the right to operate the vehicle for several years while making payments on it. At the end of the lease term, the customer may decide to purchase the vehicle or return it and buy or lease a new car. Both a purchase and a lease have advantages and disadvantages. Convenience One advantage of an auto lease is that it allows...

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Can They Put a Lien on My House If They Repossess My Car?

There are two legal components to an auto loan. The first component is your unconditional promise to repay the money you borrow. The second component is a lien on your car that you grant to the lender as security for the loan. When a lender repossesses your car, it may not be worth enough money to pay off the full amount of the loan, which could result in further legal action, including, potentially, a lien on your house. Repossession Repossession is the lender's exercise of its lien on your car. The lender has the right to take your car...

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Can a Vehicle Be Financed for an Amount That Is Greater Than Its Value?

When taking out a loan on a vehicle or real estate, the lender will determine your loan to value ratio, defined as the amount of the loan compared with the worth of the property. Value includes the vehicles fair market value minus the equity you have in it. You can finance your vehicle for more than you paid for it under limited circumstances through institutional lenders, but most dealers are reticent to offer such deals. New Vehicles Some car dealers will roll over fees onto the amount of a vehicle loan, which can leave you with a note...

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What Percent of My Income Should I Spend on a Car?

Buying a new car can be fun, frightening, exciting and a whole host of other emotions. Sometimes, we get caught up in the moment and end up in a car that could be impractical for our needs, too much money for us to spend or both. Before shopping for a car, it is important to determine how much we can spend. Determine Your Spending Limit Figure out how much you personally can spend each month on a car payment, if you are getting a car loan. The bank may qualify you for more than this amount, but the bank doesn't know how much you spend on...

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How to Transfer Auto Lease Paperwork & Documents

For individuals who lease a car, selling the car is impossible, because they do not own the title. If the individual attempts to terminate the lease, he will have to pay penalties. The only way to avoid penalties and to get rid of a leased car is to transfer the lease and documents. Instructions 1 Read through a copy of your lease to determine if the lease youve signed allows for a transfer. If you cant find the lease or are unsure, contact...

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How to Use a Secured Loan Calculator

A secured loan is a loan that is "secured" or "backed" by a borrower's collateral. The collateral can be anything from a car to a home. It will be forfeited to the lender if the borrower does not repay the loan. A secured loan calculator can help you estimate your interest and the monthly cost of the secured loan. Instructions 1 Find a secured loan calculator online. Use your favorite search engine and search for "secured loan calculator."...

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The Disadvantages of Buying a Car

Buying a car is one of the biggest investments you may ever make; therefore, you should consider both the advantages and disadvantages. If you can get around conveniently without a car, it may be in your best interests to save the money you would've spent on a car and put it toward a mortgage, other investments or retirement. The appeal of car ownership may be enticing, since you can modify the car in any way you want and eventually make some money...

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Can You Void a Vehicle Contract by Not Taking Possession?

The "New York Times" reported that in 2011, the average price of a new vehicle purchased in the United States was close to $30,000, while the average price of a used vehicle of one to three years old was a little over $23,000. With the rising price of new and used cars, it is no surprise that many consumers experience some form of buyer's remorse and look for ways to cancel the purchase. However, canceling a car purchase may not be possible, and...

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How to Deregister My Pennsylvania Vehicle After I Donate It?

In some states, once you sell or donate a vehicle that you have registered, you must let the state know that you no longer have the vehicle. Usually you must fill out a notice of liability release. However, Pennsylvania is not one of those states. The closest thing you can do to de-registering a car in Pennsylvania is turning in the license plates. You cannot complete a notice of liability release in Pennsylvania, but you can still protect yourself from any liability. Instructions 1 Sign your Pennsylvania car title in the presence of a notary....

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How do I Get the Best Rates On an Auto Loan?

In order to get the best rate on an auto loan you need to do some advance work and be prepared to talk to several lenders. You shouldn't rely on the dealer to secure your financing for you, according to the Federal Trade Commission (FTC). A dealer will try to push you into an agreement that makes him more money either in commissions from the lender or additional fees he adds to your purchase contract. Save money by learning how to get the best rates...

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Repayment Laws for Auto Reposession

In the United States, automobile repossession laws are mandated at the state level. If your car was repossessed and resold by your creditor, you must repay the difference on the car loan, which is known as a deficiency. In most states, you also have the option to buy back the vehicle from the creditor before it is resold. State Laws When it comes to repossession law, each state provides specific instructions on both consumer and creditor...

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How to Price a 2007 Ford F550 Dump Truck

The 2007 Ford F550 dump truck is a medium-duty vehicle with a gross combined weight rating of 33,000 pounds. The truck was made in both a V8 and V10 engine option. The base price for the new Ford F550 chassis cab was just under $30,000 in 2007, with the full dump truck having a higher price. As of March 2011, used prices range between $24,000 and $36,000. If you are looking to buy or sell a used Ford F550 dump truck, the current market value must be determined so that you can determine a good price point. Instructions 1 Get as much information...

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How to Get a Better Payoff Amount on Your Vehicle

When paying off a car loan, you minimize the loan's interest amount, which can save you thousands of dollars if you pay the total loan balance in full. Otherwise, obtaining a lower payoff amount is difficult, as you signed a contract that states you'll pay the loan's full balance. You might convince your lender to take less than the full payoff amount if you pay your balance in full. Or, you can renegotiate your loan terms by applying for a lower interest rate and shorter term, which also decreases your total pay back amount. Instructions Paying...

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California Laws for Default Auto Payments

If you fail to make a payment on your California auto loan as required, you are considered to have defaulted on the loan. Some lenders give you a grace period to catch up on your payments, while others may not; check your contract for details. If you go into default, the auto lender has the right to repossess the vehicle. Repossession Rights If you miss even one auto payment in California, your lender may have the right to repossess the vehicle. Repossession terms must be spelled out clearly in the contract; if it says that the lender may...

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How to Negotiate Auto Reposession

Automobile repossession is the legal authority of a lender to retrieve its collateral if the borrower defaults. Circumstances vary by situation, but in general, when a borrower misses three consecutive payments, the lender issues two documents: a Notice of Default and an Intent to Repossess to the borrower. The lender then contracts with a third party recovery service to physically retrieve the vehicle. After the vehicle is retrieved, the borrower's personal property inside the vehicle is returned, and the car sold at auction. To avoid repossession,...

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How to Buy a Car With Little or No Money

When you buy a car, you are expected to put money down on the vehicle in the form of a down payment. Fortunately, however, if you don't have the cash for a down payment or to pay for a car, there are certain steps you can take to obtain 100 percent financing for the purchase. Generally, this involves qualifying for a loan and making payments on a monthly basis. When you finance a loan or buy a car with no money down, you also want to make sure you...

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Leasing Vs Paying Cash for Car

Leasing payment versus paying cash for a car saves you money within the first few years, or at least for the term of your lease. While a lease payment may appear attractive, you should consider your needs, long-term finances and vehicle use to determine if the option benefits you financially. Restrictions During a lease, the bank owns the vehicle and you do not. Therefore, you must adhere to the lease terms that are stated in your contract. You must make repairs, follow the maintenance schedule and stay beneath the mileage allowance you...

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How Low Can a Credit Score Be to Get an Auto Loan?

Auto loan providers consider various pieces of information to ultimately extend or decline a loan. Even with a low credit score, you can still obtain a loan approval. Before you apply for a loan, determine if your credit, employment, address and income information is acceptable, based on the information that lenders review. Credit History Lenders do not determine loan approvals based on credit scores alone. Instead, lenders review all of your past accounts and payment history. Your accounts should be current when you apply for an auto loan,...

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How Does Co-signing for a Vehicle Work?

When co-signing an auto loan, your credit and income secure the auto loan and terms for another person. You'll also become a co-owner of the vehicle you sign for, so the title will list both of your names. Once you sign bank contracts, you become just as responsible for the auto loan as the person for whom you co-sign, resulting in financial and credit risk if the borrower defaults on the loan. Why a Borrower Needs a Co-signer A borrower who can't obtain a loan approval on his own can use a co-signer for an approval. Or, if the borrower...

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How to Calculate the Equity in a Vehicle

Whether you are selling or trading your car in, knowing the amount of equity you have in it can mean the difference between making money or losing money on the deal. Equity is the value of the vehicle less the amount you owe on the vehicle. If you owe more than the car is worth, the value is upside-down, meaning you owe more than you can sell for and have zero or negative equity in the vehicle. Instructions 1 Visit the Kelley Blue Book website (kbb.com) and enter the make, model and year of your car to determine the value of your vehicle....

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How to Stop Auto Loan Debt Collection

You stopping payment on your car loan can trigger a repossession. After taking back a car, auto lenders might sell the car at auction. But having your vehicle sold at auction doesn't let you off the hook. If the car sells for less than you owed, the lender may begin collection to recover the deficiency balance. Instructions 1 Discuss your financial situation with your auto lender to see if there's a chance it will forgive the outstanding balance and cancel the debt. Explain circumstances such as job loss, illness and disability. 2 Review...

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Do Colorado Car Loans Have a Three-Year Statute of Limitations?

The clock starts ticking on an auto loan when the first payment is received. If an auto loan is not repaid according to the terms and conditions of the auto loan contract, the lender can sue the borrower for the defaulted amount plus attorney's fees. Colorado has one of the most moderate statutes of limitations on consumer debt in the country. Identification Colorado car loans do not have a three-year statute of limitations. All written contracts, oral agreements, open accounts and promissory notes have a six-year statute of limitations...

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How to Lower a Current Car Payment

In most households, every penny counts. As of 2009, 42 states experienced a decline in personal income, according to the Wall Street Journal. This leaves many families feeling the financial pitch more than ever. If auto loan payments make up a big chunk of your monthly budget, it might be time to trim costs. Checking out auto loan refinancing options may help drive down monthly payments. Instructions 1 Check your credit score. If you haven't...

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