Auto Financing Problems

Numerous auto financing problems exist, although many can be overcome. Depending on your credit history, money down or even the vehicle you choose, you may find difficulties with a loan approval. Learn about different auto financing problems and what you can do to solve them. Vehicle Value Banks lend according to loan-to-value ratios, which is the amount you ask to borrow compared to the vehicle's bank-determined retail value. Even with excellent credit, you cannot borrow $20,000 for a vehicle worth $10,000. Loan-to-value ratios become...

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Auto Loan Requirements

While some people may be able to pay for their vehicles with cash without financing an auto loan, it is far more common to make such a large purchase based on credit with monthly payments. As with any loan, the lender will need to decide whether they will give you the loan based on whether they think you will pay it back. This decision is fueled by factors such as the car itself, its value and age, and your personal financial history. Down Payment Some lenders, either banks or car dealerships with their own financing programs, will require...

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What Can I Do If My Car Is Repossessed & I Can't Pay the Difference After Auction?

Most people know that if you do not make your car payments, the lender will have your car repossessed. According to Edmunds.com a repossessed vehicle is auctioned off and the amount at auction is applied toward the balance you owe. You are responsible for the difference, and even though you lost the car because you couldn't make the payments the bank wants their money on the balance due. Avoid Repossession Because of the credit collapse of...

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Why Do People Lease Vehicles?

When a consumer goes shopping for a new vehicle, she has two basic options to consider: to buy or to lease the new vehicle. While opinions vary on which is the best way to go, there are a number of reasons why a person might choose to lease a vehicle instead of buying one. By understanding the reasons, the consumer can decide for herself whether leasing is a good option for her life. Driving a New Vehicle Driving a new vehicle can be a statement...

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How to Finance a Hybrid Car

Buying a hybrid car can be good for the environment, and good for your wallet, as well. As the price of gas gets higher and higher, the value of having a car that runs on electricity and gasoline become more and more apparent. You can save even more on your hybrid car if you are able to take advantage of special rates and terms for fuel-efficient vehicles. Instructions 1 Check your credit report before you start shopping for a new hybrid car. An error in your credit report could hurt your chances of being approved for the loan you need,...

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What if I Can't Pay a Car Loan After a Total Loss?

You must satisfy your car loan even if you no longer have your vehicle, as stated in your loan contract. Even if you can't pay your loan balance, talk to your lender to find out your options. If your lender will not work with you, you may have other options. Call Your Lender Assuming you maintained a full-coverage insurance policy on your vehicle before it was totaled (as most lenders require), you shouldn't have to pay your entire loan balance off. Your insurance company pays your lender for the vehicle's market value. If you are out of...

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Frame Damage Depreciation

One of the most important mechanical components of a vehicle it its frame or unibody structure. This forms the basic physical core of the vehicle and attaches to major mechanical, interior and body components. Because of its importance to a vehicle, damage to the frame can hasten the process of depreciation, which happens to all cars as they lose value over time. Cost of Depreciation Frame damage is among the most damaging factors when it...

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Do I Need Verification of My Income to Buy a New Car?

It's up to lenders to determine whether a new car buyer needs a verifiable income to purchase a vehicle. Your credit score and the amount of your down payment also affect whether a verifiable income is necessary. In any case, it will likely be harder to buy a new car without a verifiable income. Lenders People who can't pay for a new car without getting a bank or credit union loan usually need to have an income that a lender can verify with...

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Can People Who Have Filed Chapter 13 Get a Car Loan?

After filing for Chapter 13 bankruptcy protection, some people conclude that the days of applying for a car loan are over. Quite the contrary; it's possible to get an auto loan after bankruptcy. And if you make your payments on time and satisfy the debt, acquiring an auto loan can help your credit in the long run. Re-establishing Credit Score Credit damage from a bankruptcy lessens with time. But you can jump-start credit improvements by taking steps to re-establish and rebuild your credit soon after a discharge. Getting a new line of credit...

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Used Car Laws in West Virginia

In West Virginia, the state's consumer protection laws govern the rights consumers have against sellers of defective vehicles. The state's lemon law covers vehicle purchase transactions within the state, and buyers who purchase defective vehicles may have legal rights against vehicle sellers if they are covered by any existing express warranties. Lemon Law The West Virginia Lemon Law covers vans, trucks, automobiles and motor homes' vehicle...

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Car Financing FAQ

You have various options to choose from and decisions to make if you finance your next vehicle purchase. Although the bank chooses your rate, you can plan your finances better by asking the right questions, which can ultimately help you determine where to apply. Find a lender who complements your lending needs and future financial plans. How Much Will My Interest Rate Be? Your interest rate can cost you significant money over the term of you loan. To determine current interest rates, call or check bank websites. Most are advertised online...

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How Does Cash Back Work When Buying a Car?

If you are in the market for a new car, an offer of cash back from a manufacturer provides an additional incentive for you to purchase a particular model. Cash back offers are sometimes referred to as new car rebates. Car buyers who understand how cash back offers work will achieve the maximum benefit from the available rebates. Manufacturer Rebates Cash back offers usually originate with the car manufacturer. The purpose of the offer is...

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How to Get the Best Deals on a New Car

When you are in the market for a new car, getting the best deal possible can be challenging. Even if you negotiate with the sales person at an auto dealer, you may wonder whether you could have done better. By keeping a few things in mind during the auto shopping process, you can eliminate any doubt and get the best deal on the car that you really want. Instructions 1 Research the car that you want to buy before you ever go to a dealership. Search online for the invoice price of the car or what the average price others are paying for the...

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The Best Way to Pay Off a Car Loan Early

The average car loan has a 60-month, or five-year, payment term. Lengthening the loan term lowers your monthly obligation, which makes a vehicle more affordable. Of course, paying on a car loan for five or more years increases the interest payment, and you'll pay more for the car in the long run. But even if you select a 60-month plan when you sign your loan documents, there are ways to pay off a car loan early. Instructions 1 Drop a lump...

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What Does a Bill of Sale for a Car Have to Include?

A car bill of sale is a legally binding document that records the sale or transfer of a motor vehicle. Most states require automotive transactions to be accompanied by a bill of sale. Although it may be possible to make your own bill of sale, it's best to obtain a state-specific bill of sale from your motor vehicle office. This form is usually obtained for free from the office or downloaded online. Contact your motor vehicle office to determine how to acquire a bill of sale. Information on Both Parties A bill of sale must contain pertinent...

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What to Do If You Can't Make Car Payments Anymore

Sometimes it can be difficult to keep up with your monthly bills. A car may be essential to getting to and from work, and, if so, giving that up is not an option. Falling behind in your car payments can be stressful, but there are ways to reduce your payments. Refinance If you are leasing your car, it is nearly impossible to renegotiate the terms, especially once you are behind in your payments. But if you have purchased the car and are making payments on a car loan, you can attempt to refinance it by finding a better rate or extending...

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Getting Financing for a Motorcycle With Poor Credit

Having poor credit can limit your ability to get financing for anything, including a motorcycle. Positioning yourself to be able to obtain financing will require work to improve your credit situation. A potential lender is willing to accept poor credit history if you can show your situation has improved--perhaps you can prove that you've been making credit card payments on time, or you've paid off a good chunk of what you owe recently--and you are...

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How Can I Get Out of My Auto Loan?

Most people finance vehicle purchases by getting a loan and paying their lender each month for the vehicle. If a vehicle owner falls behind on his car payments, the lender can repossess the vehicle. If you are having financial trouble, you may be able to sell the vehicle or voluntarily give it back to the lender. Most lenders will attempt to help you find a solution if you tell them you are having financial difficulties and cannot pay your car note. Selling Your Vehicle You can sell a vehicle that you owe money on only if you can get enough...

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How to Calculate Loan-to-Value on Used Vehicles

The loan-to-value ratio shows the relationship of the amount of money that you're receiving as a loan relative to the value of a vehicle on a percentage scale. Ideally, lenders want you to borrow less than 100 percent of the car's value, though some will loan you more to cover the cost of taxes and fees. Getting a loan-to-value on a used car is more complex because the value of the car is not as straightforward as a new model. Lenders may approach...

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Can I Trade a Vehicle That Has My Husband's Name on It?

You can trade in a vehicle that has your husband's name on it, but he will have to sign the vehicle's title to complete the trade process. Most dealers require any titled co-owners to come to the dealership to sign the vehicle's title in front of a dealer representative. Before you attempt to trade your vehicle, ensure your husband is willing to sign the vehicle's title. Dealer Requirements A dealership must follow state rules when accepting a trade-in vehicle. For this reason, your husband must sign the title. Your dealership likely requires...

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10 Things You Must Know Before Buying a Car

Buying a car can be an exciting yet exhausting experience. You are faced with a dizzying array of autos and options. Knowing how and where to finance the vehicle can further complicate the process. Knowing what you can afford, how you plan to pay for it and what you are looking for before you begin shopping can make buying a car much easier. How You Plan to Pay for the Car The most important thing you must know about buying a car is not the type of car you plan to buy, but how you are going to pay for it. If you have the money in the bank...

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Requesting a Deferral on Car Payments

Borrowers who can't pay a monthly auto loan payment may ask their lender to defer one or more car payments. If your lender agrees to defer payments, this means your lender allows you to skip car payments during a specific time period without penalty. Deferred monthly payments extend your loan term. When to Request Deferred Payments Ask to defer your loan payments as soon as you realize you can't make your monthly payment. Some lenders require that your auto loan be in good standing to grant a deferment. Before you're behind on a payment,...

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How to Finance a Car Vs. Paying Cash

You might find it takes longer to obtain a check when financing, as lenders can take up to five business days to approve a loan. If you have to move cash around, receiving payment can take just as much time. Plan ahead to obtain a loan preapproval before you set out to shop if you plan to finance. Once you find the car you want, you can submit the vehicle's information to your lender and receive a check promptly. If paying cash, make sure your money is accessible before shopping. Instructions Paying Cash 1 Decide how much money you want...

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Does Advance Notice Have to Be Given Before Repossessing a Car?

Your lender does not have to provide you with advanced notice before it repossesses your vehicle. The terms of repossession are outlined in your loan contract; because you signed the contract when you initiated your loan, you agreed that the lender can seize the vehicle for any reason stated in the contract. Your Loan Contract Read your contract to determine reasons your lender can initialize a repossession. For example, your contract might state that payment is due by a certain date each month and if you don't pay, the lender can rightfully...

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Requirements to Refinance a Car

To refinance an auto loan, you must apply to an auto loan provider. The application process and loan requirements are the same as you experienced for your initial vehicle loan. Your approval is based on the vehicle's value and your credit history. Depending on your lender, you may be required to provide additional documents or information. Employment or Income You must have an income to obtain an approval for your refinance. If you are employed, expect to provide a recent paystub to your lender so that it can verify your gross annual income....

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Can You Add a Co-Borrower to Refinance an Auto Loan?

Refinancing an auto loan can encompass any number of strategic changes to a contract, including adding a co-borrower. In order to add a new name to your loan, you will have to cancel the current contract and arrange a new one. You will need to submit a new application to your lender listing the additional borrower, and some of the terms of your loan may change. Car Loan Terms Lenders consider your application when setting the terms for your...

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Conditions of Buying a New Car

Several financing or lease options may exist for your new car purchase, so you may need good to excellent credit for approval depending on the lender or method of purchase you choose. If you want to pursue manufacturer discounts, restrictions may also apply. Expect to also pay various fees and your taxes when purchasing a new car from a dealership. Auto Loan or Lease Conditions Conditions for auto financing or leasing differ by bank or lender. If you plan to pursue low-rate financing or a lease, expect to apply to the manufacturer's bank....

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Why Does the Law Say You Must Have Auto Insurance?

Auto insurance premiums quickly can come under scrutiny when money is tight. After all, if you can save hundreds per year by cutting car insurance, there is every incentive to let it fall by the wayside. Even so, car insurance is mandatory in every state except Wisconsin and New Hampshire, meaning you cannot legally drop your insurance even if you want to do so. This isn't because the government wants to cheat you--it's because insurance protects...

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How to Get Rid of Car Loan Debt

An automobile loan is a secured debt with the car serving as collateral. The secured nature of the loan makes it difficult to get rid of the car loan except by paying it off. Popular tactics used to eliminate unsecured debt, such as debt settlement on credit cards, do not apply to secured loans. If you default on a car loan, the lender can repossess the car and still hold you responsible for a portion of the debt. Instructions 1 Contact the bank to ask for the payoff amount on the car loan. Pay the balance using cash from your savings or...

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How to Take Over the Payments on a Truck

There are several different ways to acquire a vehicle for personal use. The conventional way is to buy the vehicle from an owner or dealer. An alternative method is to take over payments on the owner's existing loan. This process is called assuming a loan. Assuming a loan involves more than a simple agreement between the buyer and seller. Merely making truck payments on behalf of a seller could have legal ramifications if the seller's lender refuses...

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How Easy Is It to Get Vehicle Financing?

As of 2010, auto loans are available, despite news reports to the contrary. Many people will have no problem getting an auto loan from the dealership or from their own bank. The terms of the loans may vary, but with some effort, you can find an acceptable auto loan. For those who do not qualify for these loans, there may be other special credit available to allow them to drive a reliable vehicle. Credit Score Your credit score is the largest factor in how easy it is to get vehicle financing. That three-digit number ranging from 300 to 850...

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