Should You Buy an Extended Warranty From a Used Car Dealership?

Buying a used car is tricky enough, but by the time you have the car inspected, negotiate the best price and secure your financing, you'll have a decision to make: Should you buy an extended warranty or not? There are pros and cons to buying extended warranties. In some cases, having a warranty can be a lifesaver; in others, it can be a waste of money. There are a number of factors to consider when determining if an extended warranty is right for you. Benefits Buying an extended warranty on a used car can give you peace of mind. Buying...

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Can I Borrow My Car's Value for Cash I Need?

When you borrow money based on the worth of your car, you are taking out a title loan. You go to a car title loan company, and a lender evaluates your car and gives you a loan based on the car's worth. You hand over the car's title until you pay back the loan. Title loans are available only in certain states, and there is a reason for this. Legal in Some States Generally, you need to own the car and possess the title to get a car title loan. As of 2011, 19 states allow title loans: Alabama, Arizona, California, Delaware, Georgia, Idaho,...

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Six Steps to Selling Your Own Car

Selling your car is a financially beneficial alternative to trading in, as you'll usually be able to fetch a higher price. When you trade a car in, the dealer generally offers you the wholesale value with plans of selling the car at retail value. Selling the car on your own gives you an opportunity to sell the car at, or closer to, the car's retail value. Determine the Car's Value Before selling your own car, you'll want to determine an approximate...

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The Best Auto Loans

The best auto loan rates go to the customers who are best prepared and have the best credit. The major auto loan lenders' top-tier packages are relatively standard. So if one lender is willing to give you a low rate, chances the others will match it. The trick is being prepared and in a position to demand the best interest rate available. Know Your Credit Check your credit report and make sure the information on the report is accurate. Errors,...

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Ohio Repossession Laws

When borrowing money to purchase a vehicle, you get what is called a secured loan. Borrowers can finance their vehicles through the dealership's lending institution or through a third-party private banking institution. As a promise to repay their loan obligations, borrowers pledge the vehicle as collateral, providing lenders with the right to reclaim their property, or collateral, upon default. Ohio's repossession laws mandate notification to buyers...

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How to Find Out the Blue Book Value on a Vehicle

If you are interested in selling or buying a used car, you will need to obtain the current value of the vehicle. One of the most used resources when trying to determine the value of a car is the Kelley Blue Book. This is a resource that can tell you the current market value of nearly any car in the market place. You will need some basic information about the car to get the value you want. Instructions 1 If you are trying to find out the value of a car that you own, you will need to obtain the odometer reading on your car. If, however, you...

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What to Do When You Have an Upside Down Auto Loan

When you have an upside down auto loan, this means that the resale value of your car is less than what you owe on your loan. Although some dealerships offer to roll this debt over into your new car loan, this move can worsen your financial situation because you will be starting your next loan upside down as well. Wait it Out Unless you absolutely need to sell your car now, hold onto it and keep making payments until you are no longer upside down. Eventually, your monthly payment will reduce the principal by more money than the car drops...

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What Do I Need When Buying a Used Car?

When it's time to buy a new car, purchasing used may save you a ton of money. However, it is important to be an even more savvy consumer when you purchase a used car, because you can't be sure of any pre-existing issues that car may have had with the previous owner. While the purchasing process is generally the same, there are a few things to you need to bring -- and request -- when you buy a used car. You Provide: Basic Information When you buy a used car -- or a car of any kind, actually -- you need to provide basic information, such...

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How to Clear a Car Title After the Loan Is Paid

Car loans make it easier to purchase an automobile. Financial institutions offer a wide variety of loan terms, depending upon your circumstances. When you get a car loan, the automobile is used as security against the loan. The bank places a lien on the car title to secure its interest in the property. You can't sell the vehicle while the lien is on the title. When you pay off the loan, you need to get a clear title for your car. Instructions 1 Pay off your car loan. Look at your last loan statement or contact the lending institution to...

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The Disadvantages of Returning a Lease

Although it isn't a wise move, it is possible to end a car lease early. Reasons range from a change in income to no longer needing the car because you want to move to a major city. Regardless of the reason, however, returning your leased car to the dealership early comes with a number of disadvantages. Breach When you return a lease early it constitutes a breach of the lease agreement. It is similar to changing your mind about an apartment after you've signed the papers and moved into the space. The lessor (the dealership financing company...

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What Is the Average Depreciation of a Motorcycle?

Depreciation is the rate at which an asset loses value over time. Depreciation standards are set by the IRS and range from simple to complex methods. Straight-line depreciation is the method most commonly used because it is simple to calculate. IRS Depreciation The IRS lists the useful life of vehicles at five years. The price of the vehicle divided by 5 will generate the annual depreciation rate. According to "The Wall Street Journal,"...

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Can a Car Dealer Charge Late Charges After You Have Paid It Off?

If you're paying a car dealership for your car loan, you purchased from a buy-here, pay-here lot. Otherwise, you would pay a bank or credit union for monthly payments and late charges. If the dealer says that you still owe money for late charges, either you haven't finished paying for your vehicle or the charges are incorrect and you need to dispute them. Contract Agreement Read your purchase contract thoroughly. The terms of your vehicle loan are stated in your contract, including your monthly payment amount, grace period for late payments...

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How to Buy a Repossessed Vehicle From the Bank

Banks across the U.S. repossess vehicles when borrowers default on loan payments. Banks sell the vehicles to get reimbursement for the outstanding loan. Many lenders quickly offload repossessed vehicles because of the maintenance expenses. People who buy these cars from banks often pay below market prices. Repossessed Cars Most major banks have two separate financing divisions that handle car loans: consumer lending and dealership services....

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Do I Need to Wait a Year to Refinance My Car?

You don't have to wait a year to refinance your car if you don't want to; although, you might benefit from waiting depending on the terms of your current loan. If your bank charges early payoff fees, you might save money by waiting. Or, if you currently have a high interest rate because of poor credit, you might have to improve your credit rating before applying for a better rate or term. If you just financed a new car, you might not have enough equity in the vehicle to refinance the loan without a down payment. Discuss early payoff fees with your...

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How to Calculate EMIs

If you own a house or car, chances are you're paying EMI. Equated monthly installment (EMI) is the total amount to be repaid on a loan (including interest) divided by the number of periods you're paying the loan. The components are not static--that is, the interest component of EMI is higher in the beginning of the loan and then declines over the life of the loan. For this reason, it is important to be able to verify the loan documents and schedule...

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How to Use Principal Reduction on Car Loan

If you're struggling to make your monthly car payments because of a recent financial hardship, and you're worried that you'll default on your auto loan, it's time to call your auto lender to ask for a reduction in your loan's principal. By reducing the amount you owe on your auto loan, your lender will also be lowering your monthly payment, saving you from defaulting. Instructions 1 Gather the financial papers that you'll use to convince your...

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How to Figure Car Loan Payments

The sticker price you see on a car window usually is not the amount that you will actually end up paying for the vehicle. In fact, due to interest on a car loan, you can end up paying significantly more over time than the sticker price shows. Car loans are calculated with amortization factored in, meaning the interest charged changes as you pay off more of the balance. Instructions 1 What amount of the car purchase is being financed? Include,...

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California New Car Sales Laws

California consumers who purchase a new car within the state may seek protection for defective purchases through the state's lemon law or the Song-Beverly Consumer Warranty Act. First passed on July 1, 2006, this consumer protection law provides car buyers with a limited time period to return defective vehicles to dealers for a return of their money or replacement car. Coverage The consumer protection law covers vehicles used for personal...

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What Happens If Your Car Loan Gets Charged Off?

Many consumers finance a car using a car loan. If you fail to make payments on the loan, the lender may seize the car and charge off the debt as a loss. This is called a repossession. It's important to know how a repossession affects you and your finances. Effects According to FICO, 35 percent of your FICO score measures how well you pay your bills. A repossession shows that you defaulted on an auto loan. This is a major derogatory item to have on your credit. It will appear on your credit report for seven years and will have a negative...

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What Affects Car Insurance Pricing

Being familiar with the factors that affect car insurance pricing can help you get the best auto insurance premiums. Car insurance companies charge monthly premiums, and this costs covers damage. Paying a high premium may impact your personal finances. Understand the factors that influence pricing, and then take steps to lower your out-of-pocket expense. Driving Record A bad driving record indicated by a several speeding tickets or other traffic violations can increase your monthly and yearly insurance premiums. On the other hand, drivers...

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How to Trade a Car When I Owe More Than It Is Worth

Trading in a car when you're upside down on the loan, or owe more than the car's worth, can create a financial hurdle. Even so, it's possible to trade in your car and acquire a new vehicle. Know the options available to you and then choose the solution that best fits your needs. Instructions 1 Pay a large down payment to compensate for the negative balance. If you owe $10,000 on your car loan and the dealership is willing to give you $7,000 for the trade-in, bring a $3,000 down payment to pay off the negative equity. 2 Roll the negative...

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How to Buy a Leased Car From an Owner

Purchasing a leased vehicle from a seller is very similar to purchasing a vehicle with a current loan. The lease buyout price must be paid to release the car's lien and title, which allows you to transfer ownership. Expect to work with the buyer and the bank to pay off the lease amount. Because you're not purchasing from a dealership, you'll have to pay taxes and register the vehicle on your own once you have the title. Instructions 1 Get the lease buyout or sales price from the lessee. The original lessee can sell the vehicle for the amount...

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Can You Refinance a Car Balloon Payment?

Once your lease is up, you can purchase the car for its balloon payment, which is the buyout price stated in your contract. Unless you can pay cash for the remaining balance, you'll have to finance instead. Technically, this requires a new finance, not a refinance, as you are purchasing the vehicle from the bank for the first time. Lender Options To finance your balloon payment, apply at any lender you'd like. Be sure to check around for competitive rates. Local banks, such as credits unions or nationally based lenders with a local presence,...

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How to Give a Car to a Fiance as a Gift With Taxes in Virginia

If youre engaged to be married and have an extra car you dont need while your fiance is in desperate need of transportation, a logical solution is to gift the car over to your new partner. Gifting a car to your fiance simply means that you agree to transfer it to her name without requesting payment in return. In Virginia, both you and your fiance must comply with car transfer rules that still require a sales tax payment on the transaction. Instructions 1 Write an official bill of sale between you and your fiance. Even though you are soon...

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Are There Grants to Help Low-Income People Purchase Cars In Missouri?

A number of private charitable organizations recognize that people need reliable transportation to hold jobs and take care of their families. Low-income families in Missouri and throughout the nation often struggle to afford the car that could dramatically improve their lives. Although there are no government or nonprofit cash grants to purchase vehicles, a number of organizations grant vehicles in-kind. Those in need can apply to select nonprofits...

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Alternative Financing Options for New Vehicles

If you can't obtain a traditional vehicle loan approval through a dealership or local bank, alternative financing may prove to be a lending option. Subprime lenders extend loans to people with poor or limited credit, also known as high-risk borrowers. Before pursuing a loan from an alternative source, consider your budget and the benefits and disadvantages of alternative lending. Subprime Lending You can locate a subprime lender online, locally or through a dealership. Rates are higher than normal, and many subprime lenders require a significant...

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Your Rights Against a Repo Man in Illinois

In Illinois, repossession law protects the consumer, the creditor and the hired hand doing the repossessing, otherwise known as a repo man. While it may seem like the creditor has the upper hand when it comes to your property, you should keep in mind that your rights as an Illinois resident are also protected by law, particularly if the repossession was illegally obtained. Reasons for Repo Illinois law stipulates that your personal property can only be taken if a creditor has a security interest, which is a legally-binding, pre-arranged...

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How Much Interest Will I Pay on a Car Loan?

Interest rates can range a great deal; your credit information, credit history and current income are used to determine your approved rate. With poor credit, rates can soar as high as 29 percent in some states. To know your exact interest rate, you should ensure your credit history is correct and obtain a pre-approval before shopping. Credit Reports Incorrect information on your credit report can result in a higher interest rate, costing you money. Before applying for a loan or pre-approval, check your credit information with the three...

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Car Affordability Based on Salary

Several lenders may approve an auto loan for you, especially if you have high credit scores and a steady employment history. Nonetheless, you shouldn't rely on a lender to determine how much you can afford to spend on a vehicle. You should compare costs associated with owning a car with your monthly income to avoid paying more than you can afford for a vehicle. Monthly Income The purchase price of any vehicle you buy should consume no more...

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What Happens When an Auto Loan Defaults

When you default on an auto loan, the lender will send letters and make phone calls in an effort to contact you regarding your delinquent account. A lender wants to make arrangements with you to bring your auto loan current. Sometimes agreeable terms are met and other times they aren't. If your account remains in a state of default after numerous attempts by the lender to resolve the issue, they will look at other ways to collect your outstanding balance. Repossession Process If you ever default on an auto loan the lender will contact a...

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How to Qualify For Auto Loans with Bad Credit

Getting a car loan with bad credit can be just as tough as getting a mortgage loan with bad credit. However, just like any other loan, there are many things you can do to increase your chances of getting approved for bad credit auto loan financing. Even bankruptcy auto loans are possible. Here are a few tips to help you qualify for bad credit auto loans. Instructions 1 Know your credit score. Everyone is entitled to one free credit report online. Knowing your score before applying for a car loan is important. If your credit rating is too...

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