Car Lease Vs. Buying What Is Cheaper?

When it comes to getting a new car there are generally two options: leasing the vehicle or buying it. There are many pros and cons for either option and the decision often comes down to personal preference and finances. Short Term Cost Leasing features several advantages over buying. When leasing a car there is little if any down payment, the monthly payments are less and there is generally lower sales tax, because tax is only paid on the...

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What Is the Diffence Between Trade Value and Cash Value on a Car?

One way to get rid of a current car and buy a new one is to trade the car in at the dealership. For a trade in, the dealer pays what it considers to be a market value for the trade, and the trade value is applied against the purchase price of the new car. Trade and cash values have different meanings to the dealer. Cash Value At the dealership, the used car department appraises your trade in and gives the car a value. This value is the wholesale...

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Can I Get a Car Loan After a Discharge of a Bankruptcy?

Bankruptcy is a drastic way to get out of debt because it releases you from some or most of your bills, depending on which type you file, but it also stays on your credit bureau records for a decade, according to the Federal Trade Commission. Lenders such as car loan providers are less likely to give you credit when you have a bankruptcy on your records. Rebuilding Credit Bankruptcy does not keep you from getting new credit forever, but it takes time to re-establish your finances so you can qualify for larger loans, like automotive financing....

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How to Calculate Yearly Interest on a Car Loan

On a $20,000 car loan at 7 percent, the total interest paid is almost $3,800. The way car loan interest is calculated means the interest amount is different on each payment and for each year of the loan. If you understand how loan interest works, you can determine what portion of that $3,800 is paid to the car cost each year. Loan Interest Function Car loan interest is calculated on the amount of the outstanding loan balance. The interest rate is computed for a monthly rate by dividing the annual rate by 12 and that rate is applied to the...

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How to Calculate Swingarm Leverage Ratio

Because off-road motorcycles, particularly those used in motocross events, must be equipped with shock absorbers able to handle large, jarring bumps without losing traction, motorcycle engineers developed swingarm shocks, a system that places the rear axle on a lever that's attached to a shock absorber. Using the mechanical advantage of leveraged forces, this allows shocks to absorb bumps much larger than the length of their springs. On a swingarm with a 2:1 leverage ratio, the rear axle moves 2 inches for every inch of compression the spring absorbs....

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Car Finance Problems

For many people, obtaining financing is the only way they can afford to purchase a new or reliable used vehicle. Financing can be obtained from a car dealer, bank or credit union, and interest rates can vary based on factors like current economic conditions, the availability of dealer incentive programs and your credit rating. Financing a vehicle does pose some potential problems for the borrower. Insurance Costs Whenever you finance a vehicle,...

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The Girl's Guide to Buying a Car

Buying a car can be an intimidating process, especially if you are a girl who is car shopping on her own. The media often portrays girls as being nave creatures who cannot fend for themselves when it comes to vehicles. However, with the right knowledge and information, any woman can confidently search the classified ads or swim with the sharks at dealerships. Know How Much You Can Afford When buying a new car, a car shopper should figure...

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Auto Financing Resources

You can pursue a car loan from a variety of lenders, locally or nationally based. Various lenders exist to accommodate different kinds of borrowers, good or bad credit alike. Consider your various resources; choosing the right lender can save you thousands of dollars in interest rate charges over your loan term. Local Lenders A variety of local lenders likely exist in your area. Local lenders include credit unions, local banks and nationally based lenders with a local presence, such as Chase, Bank of America or HSBC. These lenders determine...

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Questions to Ask: Buying and Financing a Car

Purchasing a car can be both a stressful and fun time for a consumer, especially a first time buyer. A car may be one of the first purchases a consumer makes on her own, and comes with a sense of independence. Asking the right questions at the dealership can help the buyer make the right decision not only on the financing, but also which car will best suit her needs. Should I Buy or Lease? Many dealerships offer special promotional rates...

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How to Sell a Car With a Cosigner

The co-signer on your car loan signed the loan agreements with you and is jointly responsible to pay the debt. However, unless your co-signer is listed on the title as the co-owner, you do not need your co-signer's permission to sell your car. You still need to work with the lender to release the lien on the title when you sell the car, but this is a process that does not need to involve the co-signer. If your co-signer is listed on the title, this complicates the process slightly and you will need this person's signature to sell the car. Instructions...

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How Is APY Calculated on an Auto Loan?

The interest rate, or Annual Percentage Yield (APY), is one of the most important things to consider when shopping for an auto loan. The sticker price, down payment, dealer incentives and trade-in value for an existing auto are other critical factors for making a purchase. These factors are fairly easy for a consumer to control or be aware of; however, the loan interest rate can add hidden costs to a car purchase. Definition The Annual Percentage...

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How to Get Rid of a Car When You Owe More Than It Is Worth

People get rid of cars every day. Some people choose to trade in their vehicles, while others sell the car themselves. However, when you owe more than your car's worth, getting rid of it is a bit tricky. There are several ways to get rid of a car when the loan balance exceeds the vehicle's value. Instructions 1 Trade in the vehicle if you plan to buy a new car. Dealerships will offer a trade-in value, which is often less than the vehicle's...

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Can You Refinance Your Car After Two Years of on Time Payments Without a Co-Signer?

After paying a car loan for two years, you should have a positive loan payment history even if you used a co-signer. However, your credit score does not rely solely on one loan. Banks also consider various personal and credit information, such as your debt, employment status and the time you've lived at your current address. Your Credit Report Take a look at your credit history and score before applying for a refinance. If you originally needed a co-signer because of poor credit, ensure your current credit report reflects on-time payments...

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What Does Financing a Car Mean?

Many consumers do not have the cash to buy a car outright and thus must consider financing. Financing a car means borrowing funds from a creditor or lending institution to complete the purchase. Preapproval Some borrowers who finance a car apply for preapproved loan status through a creditor such as a dealership or bank. A preapproved borrower can purchase any creditor-accepted vehicle with the preapproved loan amount just like using cash....

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How to Lease a Car in Miami, Florida

Leasing an automobile in Miami is a process that is more involved than purchasing a car outright. Advantages of leasing are that less money is required for a down payment in a lease, and your monthly payments will be less than for a purchase. Consequently, you can possess a better car if you lease than if you buy. Most Miami automobile dealerships will gladly guide you through the paperwork involved, but knowing leasing terms and what points are open for negotiation will help. Instructions 1 Fill out a credit application at the dealership....

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Car Repo Advice

Before you decide to return your vehicle, call your lender to find out if you can avoid repossession; your lender may be able to help you. You might have other options as well. Repossession substantially affects your credit rating. If keeping your car isn't an option, consider returning your car voluntarily. Call Your Lender Immediately Call your lender to find out if it can help you avoid repossession. Banks stand to lose money from repossessing a car. For this reason, your lender might have a program that offers relief to distressed borrowers....

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Can You Get a Car Loan With 55 Percent Debt to Ratio?

Having a high amount of debt makes it difficult to get an auto loan, but not impossible. The catch is that any loan you get is likely to have a higher interest rate than it would if you had less debt. By lowering your ratio, you can improve your chances of getting the loan you want. Why Debt Matters Debt itself doesn't deter lenders from approving your auto loan applications. After all, credit reporting agencies use debt to determine your credit score and tend to assign you a lower score if you don't have a long credit history. Lenders...

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The Average New Car Depreciation

New cars cost a lot of money, yet they immediately lose part of their value when you drive off the dealer's lot because it changes from "new" to "used" at that point, according to the Buying Advice automotive website. This loss, called depreciation, continues for the life of the automobile, although the rate slows down over time. Depreciation sometimes causes problems if you have a car loan, depending on the financing terms. Depreciation Rate The average new car depreciation rate depends on the make and model of your vehicle, but the Cars...

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Car Loans for People With Good Jobs But Limited Credit History

Unless you purchase a used car cheaply from a private owner, you probably are going to have to take out a loan to pay for your vehicle. If you don't have any credit history, you may run into trouble. You can still get a loan using a co-signer or by putting more money down. As long as you have steady income and have worked for at least 18 months, most lenders will consider your application. No-credit Loans You may need to get a loan for people with no credit. Usually, to qualify for this type of loan, you must have 18 months of stable work...

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How to Purchase a Car Through an Independent Owner

You have decided to skip the dealer and purchase a vehicle directly from a private owner. There are several things you will need to know. You have to make sure the automobile is mechanically sound, negotiate a fair deal, pay taxes, and have the car registered to be on the road. Doing your homework and creating a plan of action in advance may save you future headaches. Instructions Before You Look 1 If you don't intend to pay cash for the car, get your financing settled first. You want to go in knowing how much money you are able to spend....

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