How Can I Stop Car Repossession?

When a car buyer finances a vehicle, the vehicle itself is used to secure the loan. If the buyer misses payments, sometimes by being as little as a few weeks late on a single payment, the finance company may exercise its ability to repossess the vehicle. Although the repossession process seems highly mechanized to most borrowers, debtors have several options to postpone or completely stop repossession. Work With the Lender Although the lender has the legal right to repossess a vehicle if the loan it secures is not paid, most lenders exercise...

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What Happens if an Auto Loan Matures & You Owe a Balance?

An auto loan maturity date is a date when the loan balance is paid off if a borrower makes payments according to the schedule. However, when an auto loan matures, it does not necessarily mean that it is paid off. In some situations, an auto loan may have a remaining balance on the maturity date. Balance Due If you miss a payment anytime during the loan period and don't pay it, the bank adds the fee to the loan balance. Some banks offer to skip a loan payment during the holiday season. Borrowers may have fees associated with this offer...

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How to Pay Taxes Up Front on a Lease

Most lease advertisements ask for a down payment and a separate payment of taxes and fees. States calculate taxes on leased vehicles differently. Many states also issue tax rates that differ by city, town or county, so you'll have to find out your tax rate to calculate your charges. Some states tax leased vehicles on monthly payment amounts, including interest charges, some calculate the amount before interest charges and others charge tax on the total cost of the vehicle. Instructions 1 Ask the dealer or salesperson for the total taxable...

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Is Buying a Car Better Than Leasing One?

Choosing between buying or leasing a car is one of the classic dilemmas that car shoppers are faced with. In some cases, you would be better off to buy rather than lease. In other situations, the opposite is true. When making the decision, you must look at your driving needs as well as your long term goals. Driving Habits When making your decision, you have to look at what you plan on doing with the vehicle. If you are the type of person who will drive many miles every year, it typically makes sense to buy. When you lease a car, you only...

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Does Negative Equity Effect a New Car Loan?

Negative equity might impact your car loan's overall interest charges. You'll pay more for your vehicle loan if you add excess money to the total loan amount. Lenders increase interest rates for lending terms over 60 months, so if you try to keep your payment lower by extending your loan term, you'll pay more in interest charges. Interest Charges If you've already secured the terms of a new loan and know your interest rate or the vehicle's manufacturer is offering low-rate financing, determine the difference you'll pay in interest charges...

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Does Returning a Car to the Bank Ruin Your Credit?

Returning a car to your bank does ruin your credit. Returning the car without completing payments is known as "voluntary repossession" and significantly decreases your credit score. In addition, you're still required to pay the balance of your loan if the bank sells the vehicle for less than you owe. If you don't pay, your credit may be further damaged. Repossession Because you returned the vehicle yourself, your credit report will read "voluntary repossession." A credit report will state "involuntary repossession" when a bank must seize...

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Can You Insure a Vehicle When You Are Taking Over Car Payments?

You probably can't insure a car if you're taking over car payments for someone, unless you have been added to the borrower's loan contract and are recognized as a co-owner by the lien holder. If you are unsure as to whether or not you can insure the vehicle, contact your lender. Contacting Your Lender Call your lender to find out its insurance requirements. Most lenders require proof of insurance coverage before loan approval. If you haven't been properly added to the loan, you cannot call to obtain any loan information; the actual buyer...

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What to Do to Get Rid of an Upside Down Car Loan?

Because cars lose value over time, especially when they are new, people who purchase cars with a car loan may find themselves owing more on the loan than the car is actually worth. This is because the car depreciates in value faster than the owner pays down the principal balance on the loan. Definition An upside-down car loan is one in which the current market value of the car is less than the outstanding balance on the loan. For example, you may have bought a car for $20,000 and taken out a loan for the full amount. Two years later, the...

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Can You Get a Car Loan After a Repo?

Yes, you can get a car loan after a repossession, but securing financing can be tough with a blemish as serious as a repo on your record. Even if you have reaffirmed on the repo and paid the back balance, it may still present a difficult hurdle when seeking financing. You might stand a better chance if some time has passed since the repossession, and if you have successfully paid off other vehicle loans since that time. Impact of a Repo A vehicle repossession remains on a credit report for seven years from the date the loan was originally...

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How to Refinance Your Car With Bank of America

Many Americans turn to Bank of America, the largest bank in the U.S., when they need to refinance car loans. Most people refinance loans to lower their interest rates, but some extract cash from vehicles they own free and clear, through cash-out refinance loans. The refinance process at Bank of America normally takes one business day, which enables borrowers to have fast access to funds. Instructions 1 Go to bankofamerica.com. On the homepage under "Borrow," select "Auto loans." Near the bottom of the auto loan screen, select "auto loan...

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Do You Have to Wait for Your Car Insurance to Expire for it to Cancel?

If you sell your vehicle or want to take it off the road, do not allow your car insurance to expire. Many states require registered vehicles to maintain an active liability policy, so you may face fines or a license suspension if you do not return your plates. In addition, you are wasting money by continuing to insure a vehicle that you no longer drive. Selling Your Vehicle If you sell your vehicle, promptly remove your plates and cancel or transfer your insurance to another vehicle. Do not allow a buyer or dealer to keep your plates; returning...

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How to Write a Request for a Lower Car Payment

Rather than waiting until you have several late payments on your record or the car dealership is in the process of sending out the repo man, write a request for a lower car payment. If you offer to making arrangements to pay the car loan -- even at a lower payment -- the car dealership might work with you. However, if you do nothing and the car payments remain unpaid, there is a strong probability you will lose the car and be walking. Instructions...

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Do Car Dealers Prefer Cash or Financing?

When you buy a car you have the option to either pay with cash or seek financing in the form of an auto loan. When you finance you must pay interest and continue to send money for the car every month. If you have the luxury of choosing to pay with cash or getting a loan, you might wonder which method the car dealer would prefer. Knowing this could give you some bargaining advantages when it comes to the car deal. Which Is Preferred? You may assume that a car dealer will prefer a buyer who comes in prepared to buy the car with cash or a...

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Does a Co-Signer Help Lower Interest Rates on Cars?

Getting a co-signer on an auto loan might help you get a lower interest rate if you've had past credit problems or have a short credit history. However, it may be tough to find someone who's willing to co-sign an auto loan because people put their finances at risk by co-signing loans. Lenders Lenders base loan interest rates on the risk they perceive a borrower poses. People who have low credit scores usually pay high interest rates because lenders classify them as high-risk borrowers. A co-signer can help a high-risk borrower get a lower...

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Can a Friend Cosign on a Car Loan?

A cosigner is a person who applies for a loan with you, and if approved, becomes equally responsible for payments and other contract agreements after signing the loan contract. Anyone with good credit and debt-to-income ratio can cosign your car loan. If you have poor credit and your friend has good credit, you'll obtain a loan based on his credit score instead of yours. Benefits of Using a Cosigner Without a cosigner, your auto loan application might be declined. If approved, you might pay a high interest rate, shorter loan term or have...

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Comparing Auto Financing for Cars

Financing a new or used vehicle can be a harrowing process for an amateur. Strong sales tactics, confusing documents and aggressive sales personnel can all be intimidating. The best way to find financing when purchasing (or refinancing) a car is to compare options, ask lots of questions and never, ever sign before you're completely sure of and comfortable with the terms of an auto loan. Credit The major determinant in most auto loans is a borrower's credit score. Make sure exactly what range you fit into before applying for financing (see...

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Do I Negotiate With Dealers First or Finance?

Most car dealers have a finance person who is happy to arrange an auto loan for you once you have reached a deal on a new vehicle. Dealerships make money from various sources, like extended warranties and aftermarket add-ons, not just from the car sale. Financing is another way in which they wring extra profit from you, according to Edmunds automotive site editor Philip Reed. Prevent this by getting your own loan before you car shop. Reason to Finance First You can easily find out the invoice price of the vehicle makes and models in which...

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Do You Still Pay When a Car Gets Repossessed?

In the United States, vehicle repossession law is mandated at the state level and determines both the consumer's and lender's rights. If your car is repossessed, you are still responsible for the remaining amount on your full car loan, but this amount may be lowered if the lender sells or if any violation occurred in the repossession or auction process. Buy-Back Option In some states, you have the legal right to buy-back a repossessed car...

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How to Keep a Deceased Relative's Auto With a Loan

When a relative dies and leaves behind a vehicle, that vehicle does not have to be sold. In fact, you can keep the automobile. While a loan in the deceased relatives name cannot remain open for you to make payments on, it is possible to keep the car with financing of your own. Each state's department of motor vehicles has a slightly different process to take over a vehicle from someone deceased, but the basic requirements remain the same throughout the U.S. Instructions 1 Contact the financial institution that services the deceased relatives...

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How to Be Removed as a Co-signer on a Vehicle

If co-signing a vehicle loan, your name will stay on the car loan for the length of the term. Because the loan affects your debt-to-income ratio, you may run into problems when applying for your own car loan or mortgage. For this reason, you may consider options for removing your name from a vehicle loan for which you co-signed. This is possible, but requires the primary borrower refinancing the loan. Instructions 1 Meet with the vehicle owner, who's also the primary borrower on the car loan. Tell him that you want to remove your name from...

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How to Finance a Nissan

Special rates and financing for Nissan vehicles are provided through the NMAC (Nissan Motor Acceptance Corporation). Nissan calls its financing for new and used vehicles the "Signature Purchase" program, but does have restrictions different from alternative traditional lenders. The NMAC does not offer financing for used cars over six years old. You can also finance for a term of 12 to 72 months, but other lenders may offer an 84-month option that could benefit the buyer of more expensive models, such as the Titan or Armada. Instructions 1...

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RV Financing Options

Purchasing an RV is similar to buying a car, in that there are many options available to finance your vehicle. If you have good credit and knowledge of where to apply for a loan, financing an RV should be a simple task. Keep in mind that RV loan rates mimic the rates of car loans, so when auto loan rates are low, RV loan rates should be as well. RV Financing Companies Some finance companies work specifically with RV loans. As an RV is not...

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How to Fill Out a Certificate of Title When Selling a Car in North Carolina

While some states allow vehicle title transfers while a lien is still listed, the state of North Carolina does not. You must make sure that, if your North Carolina car had a loan on it at one time, your title was signed by the bank to release the lien. In addition, owner signatures must be notarized. Any co-owners also have to sign the title. Instructions 1 Check the front of the title to make sure no bank names exist under the lien holder section. If one does, make sure the bank has signed in the designated area to prove the lien has been...

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Tips to Lease a Car in California

Agreeing to a car lease is a major financial commitment. You're bound by the provisions of the lease contract, including early-termination penalties and mileage overages. Some leases come with the option to assume ownership. In California, there are rules and protections for customers of car leases. Advantages of a Lease A lease is a long-term car rental. Leases are an option for consumers who can't afford or choose not to purchase a new...

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Does the Title of the Car Remain in the Co-Signer's Name?

A co-signer is a person who is equally liable for a car loan debt, but who is not necessarily a car owner or entitled to use the car. Whether a co-signer's name remains on the title or is ever on it in the first place depends on the conditions of the loan and the agreement between the co-signer and the debtor. Talk to an attorney if you need legal advice about the rights and obligations of co-signing a car loan. Co-Signer The co-signer is another person who agrees to pay back a loan in the event the borrower cannot. If the borrower and...

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How to Calculate & Payoff Balances on a Loan

The principal of a loan is the amount of the initial loan, and the interest is a fee the borrower pays the lender for the use of the principal. The lender repays the principal and interest over time with a series of installment payments. A lender can minimize the amount of the interest by paying off the balance of the loan as quickly as possible. The calculation of the current balance requires you to know the principal, interest rate, amount of the payment and number of payments. Instructions 1 Obtain the principal of the loan from the lender....

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How to Switch Ownership of a Leased Vehicle

Switching ownership of a leased vehicle is known as a lease transfer or lease assumption. Before attempting to transfer your lease, you must contact your bank to find out if you're allowed to do so. Banks may differ on lease assumption requirements. Most banks, however, require that your lease account be in good standing and active for a certain period of time, or several months or more. Additionally, your bank likely charges a transfer fee that you or the person you're transferring to will have to pay. Instructions 1 Call your leasing bank...

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How to Transfer a Car Loan

In addition to helping a car owner get out of an auto loan without ruining their credit, transfering a car loan can help an individual who wants a used vehicle to purchase one without going to a dealership. Transferring a car loan is an easy way for two individuals to save time and money. Instructions 1 Review all loan documents for the original purchase of the vehicle to make sure that transferring the loan to another individual is allowed....

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How to Get an Auto Loan With Poor Credit

Many car purchases are funded using financing provided by the dealership, a captive financing company or a bank. A captive financing company is a separate financing company owned by the dealership or the dealership's parent company. Bad credit may prevent you from getting an auto loan in a large enough amount to afford the car you want, or the interest rate may be too prohibitive. Certain dealerships, credit unions and other financial institutions have options for borrowers with bad credit to get transportation. Instructions 1 Pay down...

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How Long Do You Have to Wait to Buy a New Car After Bankruptcy?

Consumers can get classified as subprime borrowers in a variety of ways, such as building up a high debt load and skipping loan and credit card payments. Filing bankruptcy is a sure way to make lenders back off, but Warren Clarke, an editor for the Edmunds automotive research website, explains that credit blemishes do not completely lock consumers out of the new car market. Definition The Federal Trade Commission (FTC) explains that bankruptcy is a court action that absolves a person from paying certain debts. Individuals usually file Chapter...

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How to Buy a Car With Bad Credit in San Antonio, Texas

Various online financial sites and local dealers offer car loan programs for San Antonio, Texas, consumers with bad credit resulting from charge-offs, divorce, bankruptcy, repossession and late payments. Complete an online application to find out which type of loan product you qualify for and the interest rate and terms. Expect that you will have to pay a higher interest rate with bad credit. You will need to provide the finance company with proof...

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Can I Build Credit After Bankruptcy With a Cosigner on a Car Loan?

A bankruptcy affects your credit score negatively, but you are not stuck with the bad credit score forever. After a bankruptcy, reestablish credit in your name to build a positive credit history that will increase your credit score over time. If you are having trouble finding a lender to finance a car loan for you, getting a cosigner can help you qualify for the loan. Cosigners and Credit Reports A cosigner is somebody who applies for the loan with you and signs all of the loan documents with you. The cosigner legally has as much responsibility...

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Should I Purchase or Lease a Car?

A vehicle lease often has a cheaper monthly payment than a car loan payment, however, the lease contract may prove too restrictive for some buyers. As a lessee, you must abide by wear-and-tear limits and a mileage allowance that you choose at the beginning of the lease. Consider your driving habits and vehicle needs to determine whether a lease or purchase is the right choice for you. Ownership If you finance your vehicle, you will own it once you pay off your loan. If you lease your vehicle, typically you'll return it to the dealer at...

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What Does Leasing a Car Mean?

People who need a car to get around have two major options. They can buy a vehicle, or they can lease one. Leasing gives you a vehicle temporarily and doesn't require you to commit to ownership. To decide if leasing is best for you, you must understand what it involves. Leasing Basics Leasing a car means that you make payments toward the use of the vehicle. You don't make payments toward ownership. Although leasing a car is similar to renting,...

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Can I Break a Car Lease?

You can break your car lease; details and costs are outlined in your bank contract. Expect to pay a bank-determined termination fee, which usually costs more than $1,000. You must also pay all payments due for the term of your contract. If you went over your mileage allowance or exceeded wear-and-tear fees, expect to pay additional fees, as well. Call the Leasing Bank Call your leasing bank to find out the total amount of fees you can expect to pay for lease termination. Ask if you can set up a payment arrangement or if the fees are due...

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Can I Get My Car Downpayment Back?

You may be able to get your car down payment back, all depending on the reason you left one and where the dealership applied the money. A down payment goes toward a vehicle's value, while a deposit is meant to hold a vehicle until you can return to purchase it; the two are often confused. Leasing down payments, however, are not returned. Deposits To determine if you can get your deposit back, read your receipt. As long as you did not take the dealership's car, leading the dealer to believe you would be back to make the purchase with your...

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