How to Pay Taxes on Lease Buyouts

A lease is a long-term rental agreement in which you make payments on a car that belongs to the dealership. Once you reach the end of the lease you have the option to purchase the car by paying a lump sum. This is called a lease buyout. As with any other purchase there is a tax involved with a buyout. You must pay this tax to complete your purchase of the vehicle, but, it is the responsibility of the dealership to forward that money to the personal...

Read More

How to Determine How Much You Can Afford to Spend on a Car

While most people dream of being able to purchase and drive their dream car, reality dictates that they settle for a more practical car that they can afford. Individuals who spend more on a vehicle than they are able to afford put themselves in jeopardy of having their car repossessed when they are unable to make the payments. To ensure this doesnt happen to you, its important in advance to determine how much you can afford to spend on a car. ...

Read More

How to Work With Car Companies About a Repossession

When you initially financed your vehicle, you had every intention of paying your monthly note in full and on time. You needed a car and had the income necessary to make those payments. However, an unforeseen event such as the unexpected loss of your job or a spouse's illness has caused your family some financial hardship. Now you are behind on car payments and the bank is not happy. Take steps to keep the repo man from taking your vehicle. Instructions...

Read More

Vehicle Finance Lease Agreement

Most consumers want to drive new vehicles. For some, it represents their success. For others it's simply convenient and cost-effective: new cars don't break down and do not require expensive maintenance. However, not everyone can afford a monthly payment on a new vehicle but most can lease one for a fraction of it. Before signing a lease agreement, a consumer must pay attention to financial details, lease terms and optional services. Financial...

Read More

What Do I Need to Know About Buying a New Vehicle?

When buying a new car, there are multiple opportunities for you to make mistakes that you will later regret. Before beginning to buy a new car, you need to do a little bit of homework first. There are a few things you need to know before you walk into the dealership. Trade-In Value Before you leave for the dealership, you need to do a little research on your existing car. If you plan on trading in your car, you need to go online and find out its current value. You can use Kelley Blue Book to determine the market value of your car. When...

Read More

What to Expect When Buying a Car

Buying a car can be an intimidating experience for some consumers. The fear of being swindled by an evil car salesman looms large in some minds and can serve as a buying roadblock. With proper preparation, car buying can be an enjoyable experience that builds a relationship with a dealership and a sales agent. Knowing what to expect from the car buying experience reduces buying anxiety. Your Credit Will Be Checked Expect to have your credit score checked along with your credit report which details all your outstanding loans and history...

Read More

How Much of a Downpayment Do I Need to Get a Low Auto Interest Rate?

Some banks may have lending thresholds for its lowest interest rates, meaning you must borrow a certain amount of money against the vehicle's bank-determined value. However, most banks offer the same interest rate for terms of 24 to 60 months, but raise rates for loans longer than five years. Banks differ in their guidelines and offers, so ask your lender about its down payment requirements. Low Rate Options Most banks offer the same rate for terms up to 60 months. Call around to different banks to check rates. Used car loans usually warrant...

Read More

What Does Pre-Approved Mean When Buying a Car?

A pre-approval is a bank's initial agreement to extend you a loan. The approval is based on the information you submit on your application, although it is not guaranteed. You must meet various bank lending guidelines and provide proof of all of the information you offered on your credit and loan application. Pre-Approval Process Check the websites of banks in your area or vehicle manufacturer websites to evaluate interest rates. Manufacturers sometimes offer competitive, low-rate financing for new cars to entice buyers. Once you've decided...

Read More

What Is the Conventional Way to Finance a Vehicle?

If you're in the market for a vehicle, you have various options available to you based on the year of your car, your credit history and even your driving habits. Interest rates range from zero percent to 29 percent, depending on your credit and state. Learn about the options for vehicle financing so you can make a financially beneficial decision based on your driving needs and budget. Options If purchasing a used car, you can finance through a bank of your choice, including local banks such as a credit union or nationally based lenders...

Read More

Can I Finance a Vehicle if I Have a Repossession on My Credit?

When you stop making your car payment and eventually have it repossessed, getting another car can be challenging. Most auto lenders will be unwilling to work with you if you have a recent repossession on your credit history. However, some lenders are still willing to finance a car for you regardless of what is on your credit. Damaging Your Credit When you have your car repossessed, it will significantly damage your credit score. Even one missed payment lowers your credit score by as much as 110 points, according to the MSN Money website....

Read More

Can My Car Be Repossessed From My House in MD?

Under Maryland law, a lender can hire a repossession agent to take your car from your home if you default on your car loan. However, the lender must warn you about the repossession before it occurs and the repossession agent cannot use any force to take the vehicle from your property. Illegal Acts and Breach of Peace Maryland's repossession law protects the vehicle owner and lender alike. A lender and hired repossession agent cannot use excessive...

Read More

How to Prevent the Repo of a Car

In troubled times, car owners may occasionally find themselves behind on their car payments. While the thought of having your car repossessed can be frightening, there are techniques that can help you get things back on track while keeping your car from the repossession agents. Your efforts will dictate the success in preventing the repossession of your car. Instructions 1 Assess your financial situation. In order to save your car from...

Read More

Tax Incentives for Buying a New Car

Tax credits to purchase new cars sit firmly in the electric automobile and hybrid categories. These tax credits are made possible through the American Recovery and Reinvestment Act of 2009 and are managed by the U.S. Department of Energy and the Internal Revenue Service. If you're thinking of purchasing a plug-in electric vehicle, check the Department of Energy guidelines to see if your vehicle of choice qualifies. Plug-In Electric Vehicles ...

Read More

What Is Financing a Vehicle?

If you don't have cash to purchase a vehicle, you can borrow money from an auto loan provider to purchase a car, known as financing. Financing allows you to pay back borrowed money for a term between 24 to 84 months. Loans are paid back with interest, however, ranging anywhere from zero to 29 percent. Credit Application A vehicle's loan terms are based on a borrower's credit rating. Expect for lenders to review your credit history using the information you provide on your credit application. You'll provide your name, address, Social Security...

Read More

How to Make a Car Payment Invoice

If you've made arrangements with someone to make monthly car payments, the temptation is strong to be informal about the billing process. But if you want the buyer to respect you as a serious business person, you should send him or her regular invoices, along with a payment slip, that clearly states the date when payment is due and where payment should be mailed or how to make a payment online. You can set up a standard invoice that can be updated every month with new information. Instructions 1 Open a blank document in Microsoft Word. About...

Read More

How to Assume an Auto Lease

When you purchase a car, your lender calculates your monthly payments based on the total vehicle price, plus interest. Auto leasing benefits individuals who need a car but are strapped for cash by offering low monthly payments and little to no down payment. At the end of the lease, however, you must return the vehicle. Leases are binding agreements that sometimes prove problematic for those facing financial trouble or an unforeseen move. If you don't...

Read More

How to Legally Default on Car Loans

Criminal law does not apply to debts unless fraud has been committed by the borrower or debtor. It is entirely legal to default on a car loan, although there are major consequences for doing so. All car loans are secured by the vehicle itself, so the auto loan company reserves the right of confiscating the vehicle if you stop making payments on your loan. They will also report your default to the credit bureaus, which will damage your credit rating...

Read More

What Happens to a Car Lease If You Are in an Accident?

What happens to a car lease if you are in an accident depends on the amount of damage the vehicle sustains. While you do not own a leased vehicle, you are still responsible for making sure that the vehicle has insurance that covers its purchase price if you are in an accident. Leasing companies typically require that you carry at least $100,000 for bodily injury for one person, $300,000 for bodily injury for multiple people and at least $50,000 for...

Read More

Is it Better to Lease or Own a Motor Home?

A motor home, which is a self-powered recreational vehicle or RV, provides you and your family with a new option for traveling and vacationing in a wide range of destinations. Whether you buy a motor home new or used or lease one for the season, you will have a high level of mobility and control over your vacation. But the decision between leasing and buying is difficult for some prospective motor home users, combining issues of finances and personal...

Read More

Leasing Vs. Buying a New Truck

Leasing offers a cheaper payment option than a comparable finance. Leasing is also more restrictive than financing since the leasing bank owns the vehicle, not you. For this reason, you may not find a lease beneficial if you plan to use your truck for transporting, work or towing due to wear-and-tear and mileage restrictions. Mileage Considerations Leasing requires that you abide by a mileage allowance, which you choose at the time you begin your lease. Check the manufacturer's website to determine its current lease offers. Most leasing...

Read More

Is it Good to Pay Off Your Car Loan Early?

Paying off your car loan early offers several benefits, although improving your credit score or establishing a positive credit history may not be the reason to pay off early. You can possibly save money and eliminate debt by paying off your loan, but consider your other finances and future vehicle intentions before eliminating the debt. Money Saving Benefits Unless you bought a brand new car with a zero-percent loan, you are paying to borrow money. If you pay it off, you can potentially save thousands of dollars over the term of your car...

Read More

What Percentage of Your Wages Can Be Garnished in Tennessee After a Vehicle Repossession?

Tennessee state law permits a creditor to repossess a defaulting debtor's property that is used as collateral to secure a loan, including an automobile for a car loan. State law also requires the creditor to follow certain procedures and provide certain notices, especially if the creditor wishes to also sue the debtor following a repossession. Vehicle Repossession Laws State statutes allow a lender who made a car loan to legally seize the...

Read More

How to Buy a New Car After Bankruptcy

A bankruptcy ruins your credit rating, and makes it difficult to acquire a mortgage loan, personal loan and other types of credit. However, it is possible to obtain a car loan after bankruptcy. In fact, several auto dealers and lenders specialize in bad credit auto loans, which are designed to help people with a low credit score rebuild their credit history. Instructions 1 Get a secured credit card. These cards help people with bad credit...

Read More

Can You Refinance a Car if You Owe More Than It's Worth?

You might still obtain an approval for a refinance if you owe more than your car is worth depending on your overall credit and how much you're asking to borrow. Depending on credit, you may obtain an approval for up to 120 percent of your vehicle's bank-determined value. Credit Factors Whether you can obtain an approval for your refinance when you owe more than the vehicle's value depends on your credit and is known as your loan-to-value ratio. Lenders review your past payment history, paid accounts and credit score. Expect to prove your...

Read More

Consequences of Selling a Car With a Lien

Car loans are secured by the vehicle, meaning that the lender has the legal right to repossess the car if you do not make loan payments. The lender's legal right is expressed by having a lien on the car title, which acknowledges the lender's stake in the car. Selling a car with a lien on the title is a complicated process. Difficulty Finding Buyer A buyer will not purchase your car unless you can hand over a clear title, with no lien on it. Therefore, if your car still has a lien that you cannot get rid of, you will not be able to find...

Read More

Can You Buy a New Title for Your Car?

You can likely purchase a new title for your car if you are the titled owner. If your state sent your title to your lien holder until you satisfy your car loan, which is a requirement in some states, you can't obtain the title until you pay off your loan. Resources Call your state's department of motor vehicles or visit its website to determine the procedure for obtaining a title replacement. You can always go to a DMV office, talk to a representative, and order your replacement. Some states offer a title replacement service you can access...

Read More

New York Salvage Title Law

An automobile title indicates ownership of a specific vehicle and stays with the vehicle for the duration of its life. In most cases a car seller will provide you with a title or the company you finance the vehicle through will hold it until your loan is paid off. Each state also has its own laws for salvage titles, which motor vehicle departments issue for vehicles that have been damaged and rebuilt. Purpose The primary purpose of salvage titles in New York is to inform vehicle buyers of where their cars came from and to prevent theft...

Read More

How to Find a Bad Credit Car Loan in San Antonio, Texas

Credit problems can happen to anyone, but having bad credit does not stop you from getting a car loan in San Antonio, Texas. You have several options to get a bad credit car loan. These types of loans do tend to have higher interest rates and down payments than conventional loans, but you'll find that some places will not do a credit check. Instructions 1 Open your Internet browser and go to craigslist.org's San Antonio city page. Click "Cars & Trucks." Click "by-dealer." You will see all cars available from San Antonio dealers. Some...

Read More

How to Clear a Lien on a Car Title in Wisconsin

A lien is a legal claim on property that is generally used to secure the repayment of a debt. Often, when you buy a car on credit, the lender places a lien on the car until you have repaid the loan in full. Unlike many other states, in Wisconsin you remain in possession of your car title even when it carries a lien. When a lien is placed, a new copy of your title will be issued, listing details of the lien on its face. To remove a lien from your title, you must obtain proof from your creditor that the lien has been released. Instructions 1...

Read More

What Do I Need to Get a Car Loan?

Car loans are similar to other large personal loans, like mortgages. Certain lenders specialize in granting car loans to borrowers. Many dealers have worked out deals with mortgage brokers and offer loans directly to the car buyer when they buy the car. Like all loans, the borrower must meet certain requirements to get the loan, usually in the form of paperwork that proves his financial status and the status of the car he is purchasing. Car Loan...

Read More

How to Sell a Vehicle Owned by Someone Who Died

Selling a vehicle owned by someone who died involves multiple steps. The exact procedure that you'll follow depends on the state in which the vehicle is titled, that state's titling procedures, what legal conditions exist in regard to the deceased's property, whether there is a lien (car loan) on the vehicle and the state's additional requirements for issuing titles. The peripheral requirements may include emissions tests (smog certification in California), odometer reporting and various taxes and fees. The basic procedure is to retitle the vehicle...

Read More

How to Make a Cash Payment Receipt for a Car

When selling a car it's important that you provide the buyer with a receipt and also keep a copy for your personal records. The cash payment receipt -- also called a "bill of sale" -- for a used car also acts as a legal binding contract relieving you from any future responsibility involving damages, repairs, accidents or crimes associated with the vehicle. You don't have to be a car salesman or hire a legal professional to write a bill of sale. Follow...

Read More

What Is an Automotive Lien Holder?

An automotive lien holder is a person or company that owns all or part of a car, usually because the person whose name is on the car title borrowed money from the lien holder. Nearly all auto loans are secured loans, meaning that the lender places a lien on the car as security in case the borrower fails to repay the loan. Identification The name of the lien holder usually appears on a car title in the section that lists security interests. When the lien is removed, the car owner receives a new title that doesn't list a lien holder. If you...

Read More

How to Figure the Blue Book Values for Vehicles Older Than 1989

The Kelley Blue Book is widely accepted as an accurate, but also fair value of a vehicle to both the buyer and the seller. Historically, Kelley Blue Books have been available in bound form, but you can now access Kelley Blue Book information on the Internet by answering a few questions about the vehicle in question. Unfortunately, neither the website nor the most recently published books go as far back as 1989 or earlier. You can, however, still determine a value for your car using the Kelley Blue Book. Instructions 1 Locate a used car archive...

Read More

How Can I Check If a Lien on the Car Has Been Paid?

If you buy a car that has a lien on it, you are most likely to have a problem getting a clear title. Even if you somehow get the title in hand, you may still have issues registering and keeping the car until the debt is paid. Whether or not the seller says so, check that the lien has been paid in full before you close the deal. A vehicle lien holder can be a bank, title loan company or even a repair shop. Instructions 1 Ask the seller to see the actual title. If a lien holder is still listed on the title, chances are the debt hasn't yet...

Read More

How to End an Auto Lease Early

Auto leases suit individuals who want to have a low car payment. Unfortunately, getting out of such a lease early poses certain challenges, and if you go about it the wrong way, it can cost you thousands of dollars. There is an inexpensive way to terminate lease agreements early. The key is knowing the terms of your agreement and communicating with your leasing company to work out a deal. Instructions 1 Return the car within the three-day...

Read More

How to Know the Equity of Used Vehicles

If hoping to make a profit when selling your used vehicle, you'll need to determine the amount of equity in the vehicle. Equity refers to the difference between the payoff balance on your vehicle and the car's value. Regrettably, some cars have negative equity, wherein the amount owed to a lender is more than the car's worth. In this situation, it becomes difficult to sell a car. Instructions 1 Speak with your auto loan lender or read your most recent auto loan statement to learn your payoff balance. 2 Take your car to a dealership...

Read More

Car Insurance and Auto Financing

Car insurance is a requirement in most states. If you plan to buy a new vehicle in the near future, you'll need insurance to purchase, register and drive the car legally. Before you visit the dealership, it is important that you understand the various requirements of insuring a car, especially if you plan to seek financing to pay for the purchase. Car Insurance Coverage Drivers have two main insurance options when buying a car. The car owner can get basic liability coverage or full coverage. Basic liability coverage protects other parties...

Read More

Can I Get a Loan on My Car?

You can take out an automobile loan to buy a new car or to refinance a car that you already own. Typically, though, you can only have one lien on a car, so if you already have an existing loan you must pay that loan off with proceeds from your new loan. Loan to Value Your loan amount cannot exceed the value of your car and lender's determined value by looking in the Kelley Blue Book. The number of miles the car has been driven and its overall state have an impact on its value as the Blue Book prices cars based on both of these factors....

Read More