What You Need to Buy a New Car

Buying a car is a major purchase for most people. Money aside, each state has special laws that apply to car purchases with which you must comply. Apart from identifying your needs, desires and budget, buying a new car requires both money and paperwork before you can drive away in your new wheels. Money Like anything else you buy, you need money to buy a car. Many people use car loans to purchase new cars, obtaining the loan either through...

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The Tax Benefits of Leasing Vs. Owning a Vehicle

Tax rates differ by state and areas within the state, but you can likely save on taxes if you lease a vehicle. Depending on your area's tax rate, however, this savings may not prove substantial. Before pursuing a purchase or lease, consider new car tax variables, which can help save you money in the long term. Lease Taxes Most states require buyers to pay taxes on a vehicle's lease payment, not the selling price of the car. However, a lease payment also includes an interest rate, so expect to pay taxes on the interest charge, as well. You...

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Early Termination of a Leased Vehicle

When a person cannot afford to make the lease payments on a vehicle, one option is to simply return the vehicle. However, this is a bad idea for many reasons. The good news is that a number of options may allow a person with a leased vehicle to get out of the lease. Consumers should understand these options and choose the best one for their needs. Early Termination When you return a leased vehicle early, you must contact the lender and notify it of the situation. The lender will then arrange a time and place to take possession of the vehicle....

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Relief From High Interest Car Title Loans

High interest car title loans are the new scourge in lending. What many state attorneys general have deemed veiled loan sharking, these loans often trap vulnerable borrowers into high-interest, high-fee loans that customers have little hope of repaying. Similar to payday lenders, these operations feed on a struggling consumer base. To relieve yourself of a high-interest title loan, you must execute several strategies. Budget If you have disposable income left over at the end of the month, you're already well on your way to gaining relief...

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How to Take Over Individual Car Payments

If you find yourself in need of a new car, you may know someone who is looking to get rid of a car that he is making payments on. If you are interested in his car, you can take over their individual car payments instead of going through a car dealer. However, taking over someone's individual car payments can be very risky and should be entered into with caution, as the vehicle typically remains titled in the original owner's name. Instructions...

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What to Bring to the Bank for an Auto Loan

Banks require many forms of documentation before approving an automobile loan. Gathering the needed documents before searching for a new vehicle will help get your loan application and approval completed quickly. Banks ask for documentation that will help them determine your ability to qualify for a vehicle loan. Banks also require documentation to comply with laws set forth by the Department of Homeland Security. Income Documentation Lenders typically request one to three months' worth of paycheck stubs. If you do not have the required...

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New Car Financing

You have numerous financing options for your new car purchase. Manufacturers offer incentives for buyers to purchase a new vehicle, whether in the form of rebates or low interest rate offers. Leasing is also a possibility. However, your credit standing may affect your financing and interest rate options. Special Rates or Rebates Special rates and rebate offers are advertised online at the manufacturer's website. Usually, low interest rates are offered in lieu of rebates. To obtain the special rate, you must use the manufacturer's bank for...

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Does It Affect a Car Loan If the Co-Applicant Has Bad Credit?

When you apply for a car loan with a co-applicant, the lender checks both your credit score and the credit score of the applicant. A co-applicant with a high credit score strengthens the application and usually means you pay a lower rate. If your co-applicant has a poor credit score, it weakens your application and means you pay a higher interest rate. Character Lenders use credit scores as a way to gauge your character before you take out...

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Lease vs. Paying in Cash

Benefits and disadvantages apply to cash purchases and vehicle lease options. During a lease, the bank is the vehicle's owner, requires specific insurance coverage and limits your vehicle's mileage allowance and wear and tear. Paying cash, on the other hand, allows you to insure, drive and sell your vehicle as you please. Insurance Requirements If you pay cash for a car, you can reduce or change your insurance coverage without penalty. If you lease a car, you must purchase full-coverage insurance. Leasing banks also limit deductible options,...

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Car Buying and Credit

Car financing is a type of installment loan, meaning that you borrow a set amount and pay it back in equal payments spread out over a specific time period. You can get credit on your own or with the dealership's help. You must choose your financing carefully to get the best deal rather than relying on the dealer, according to Edmunds editor Warren Clarke. Pre-approval Dealers have finance departments to help you find car loans, but Consumer Reports recommends looking for credit on your own before car shopping. Banks, credit unions and online...

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Auto Financing Guide

You can save thousands over the term of your car loan by choosing a lender with a low interest rate. Banks use a variety of information to decide your rate. You can determine your rate by applying for a preapproval before choosing a car. Consider the various auto loan providers from which you can choose and which information is used to determine your loan status. Your Credit History Auto financing companies use your credit report to determine whether to extend a loan and how much of the vehicle's value to offer. Lenders also adjust your...

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How to Back Out of Buying a Car With a Dealership

You may have difficulty backing out of a car purchase if you've signed the paperwork and have taken possession of the vehicle. If you signed a loan agreement and motor vehicle paperwork, you may not have any recourse. If you left a deposit on a vehicle and don't want to follow through with the car deal, you can probably receive your deposit back. A dealership cannot force you to purchase a vehicle unless all paperwork has been completed and processed. Instructions If You Left a Deposit 1 Do not sign a purchase agreement, or buyer's order,...

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Deciding Factors in Purchasing a Car

Purchasing a car is something that nearly everyone has to go through at some point, and the decision can have a large effect in your life. Looking at the proper factors when making the decision can play a big role in whether you choose the right car for your situation. Gas Mileage One of the factors that you should consider when purchasing a car is the gas mileage. The fuel economy of the car can play a big role in how much it costs you to drive the car overall. While the initial purchase price is important, the ongoing costs are often...

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Can I Finance a Truck With an RV?

Recreational vehicles (RVs) offer comfort for travelers and come in different types: a bus-style motor home, a camper van, a travel trailer towed by a truck. Most consumers finance a part of the cost as RV prices can be as high as several hundred thousand dollars.You have several financing options for a truck and an RV depending on your situation. RV Financing with Truck You may be able to finance an RV with the truck if you already have...

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Can You Be Sued for Car Payments After a Repossession?

A lawsuit to recoup car payments following a repossession is possible, but a few factors affect whether an auto lender would go to that extent to collect the payments. For example, the amount owed on a repossessed vehicle may impact a lenders decision to pursue a lawsuit to collect the remaining balance on a vehicle. Process Repossessions generally take place when car buyers don't pay their auto loans as agreed. A lender who repossesses a vehicle usually sells it in an attempt to get money to pay as much of the remaining balance on the...

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How Can I Negotiate to Pay Off My Car Loan?

Many borrowers mistakenly think they can pay off a loan early; after all, the lender would be getting paid sooner. However, when a loan is paid off early, much of the interest the lender would have charged is no longer applicable. The lender stands to lose money if you pay off your loan ahead of time. If you want to pay off your loan before it is due, you may have to negotiate a deal with the lender. Background When you get a loan quote,...

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The Steps of Financing a Car

Financing a car is one way to purchase a new automobile. Some people pay cash for cars and avoid a dealer's finance department. But if you don't have this type of cash on hand, consider financing the purchase. There are steps to financing a car that can ensure the best interest rate and auto loan terms. Improve Credit Work on increasing your credit score before beginning the car buying process. Auto loan lenders work with people of all credit...

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Can Someone Take Over Someone Elses Car Lease?

You can have someone take over your lease payments, just as long as your lender allows lease transfers. Lease transfers are not a quick process, as the person taking over your lease must apply to your bank for lease approval and sign contracts. Learn about how to transfer a lease to someone else and which factors you should consider before doing so. Options Transferring your lease is known as lease assumption, and not all banks allow it. Call your bank to ask if transferring your lease is an option and how to go about having an interested...

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The Process to Sell Your Own Vehicle With a Lien

If you want to sell your vehicle with a lien on it, you must work with your buyer and your lender to do so. Working with both allows you to receive the lien release necessary to transfer ownership in most states while you keep the buyer apprised of the time frame of the transfer. Significance of the Lien Release You must pay off your loan to obtain a lien release, and in some states, the lender holds the title until the loan is paid. Your title lists your lender as the lien holder, which is shown on the front of the title. Before selling...

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How to Sell a Car to a Private Party Through an Installment Plan

Whether they want to replace an automobile with a newer model or they are trying to ease the financial burden of monthly payments, most adults need to sell a car from time to time. You can opt to sell your car through a dealership or privately. Selling your car privately takes longer, but in most cases you will receive more money for your vehicle. Some buyers present a check for the full amount, while others might ask to set up a monthly payment...

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Can You Hide Your Car If it Is Going to Be Repossessed?

The phrase "you can run but you can't hide," meaning that you can try to escape from your problems but eventually they'll catch up with you, applies to hiding a car about to be repossessed. Eventually, the repo man is going to find your car. Repo men use every trick in the book, including staking out your house, following you and grabbing the car when you park. Repossession If you stop making your car payments or are consistently late, finance...

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Money Saving Tips for Buying a Car

Buying a car begins with a major decision. Think about whether you want to finance part of the cost of the new or used vehicle or to pay the total price in cash. The kinds of incentives a dealer offers could be tied to specific types of financing. For example, a dealer might offer 0 percent interest financing for 5 years if you use its own finance company, such as Nissan Motor Acceptance Corporation or Ford Motor Credit. When you've got excellent...

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Do I Get Any Cash Back if I Refinance My Car?

When you refinance your car loan you do not receive any cash back if you take out a straight refinance loan. Lenders do allow car owners to take cash-out refinance loans, however, and then you would receive money back. You can either use a cash-out refinance loan to pay off an old loan or use it to extract cash from a car you own free and clear. Loan-to-Value Secured loans, such as automobile loans, work on the basis that if you default on...

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How to Reduce Car Payments

The benefits are many when you reduce your car payments. Financial problems can strain relationships, affect your level of concentration at work, and even lead to health problems. Your quality of life also diminishes if you live in a constant state of panic and worry about losing your vehicle. Fortunately, manageable car payments can reduce the stress level in your life and improve your financial situation. What's even better, you don't need professional...

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How to Sell a Car in VA

In Virginia, selling a car is a fairly painless three-step process --- sign, transfer and inform. The buyer of the car is the party who has the most work to do in getting it registered in his name. The Virginia Department of Motor Vehicles (DMV) office has a clear selling procedure for citizens to follow to ensure a smooth transaction. Instructions 1 Sign the back of your car title. Under Section A, enter your personal signature as well as the name and contact information of the buyer, who will become the new registrant. Enter the agreed...

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How to Sell a Vehicle With No Copy of the Title

All states require you to have the title of the vehicle you own; this may pose a problem if you want to sell your car but don't have the title. You can simply request a duplicate title if you lost the original title, but you and the buyer will need to follow a few more steps to legally complete the sale if you do not own the title. Your financial institution owns the title to your car until you pay off the loan, so you must pay off the loan at some...

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How to Sell a Vehicle That Is Not Paid Off in California?

California laws allow for a change of ownership for a vehicle even if it has not been paid off. The process for title transfer is straightforward, but to sell a vehicle that is not paid off in California the current owner must obtain an authorized signature from the vehicle's lien holder. The lien holder is the entity that legally owns the vehicle, according to the Department of Motor Vehicles' records. This ownership is reflected on the vehicle's Certificate of Title or "pink slip." Instructions 1 Obtain or provide a smog certificate that...

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Is it Difficult to Change a Loan Over to a Different Car?

If you want to cancel one vehicle loan and finance another, expect to pay off your current loan first and then apply for financing for the other car you want. You can't actually transfer a car loan to another vehicle, because the vehicle is not the same. You can, however, trade your vehicle toward another purchase, or sell the car on your own to satisfy your current auto loan. Vehicle Value Auto loan providers base a loan amount on a vehicle's market value. For this reason, you can't transfer a loan to another car; the new vehicle you want...

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How Can I Tell How Much My Car Is Worth?

Several websites offer appraisal guides to help you determine your vehicle's value, whether you plan to sell it privately or trade it in toward another vehicle purchase. Other factors may affect your vehicle's value, such as market conditions, buyer interest, availability or necessary repair costs. Use any resources available to you to ultimately determine your vehicle's value. Online Resources Edmunds.com and the Kelley Blue Book website provide appraisal guides for trade-in and private sale values. The NADA Guides website, which also...

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Lien Holder Rights in Repossession of a Vehicle

A lien on a car is a common occurrence. Typically, when a person finances a car purchase, the financing company has a lien on the car. The company reserves the right to repossess the car in the event of nonpayment by the purchaser. However, repossession rights are strictly regulated. Rights of Repossession The right of repossession belongs to the person or company that holds the title to the vehicle. The lien must still be valid. If the lien...

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A Car Is in Repo & the Company Won't Settle

A bank or other lender that won't settle after repossessing your car may simply be positioning itself for a better offer from you. The bank may simply feel you have not made a reasonable offer to settle a so-called "deficiency balance." The deficiency balance is the amount remaining on your auto loan after the repossession. The amount is determined after the bank sells your car at an auction or through a private sale. Example: The balance on your auto loan was $10,000 when the car was repossessed, but it sold for only $6,500 at auction. That leaves...

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Car Repossession Rights in Indiana

A vehicle loan is a secured loan where the vehicle serves as collateral. Therefore, if the vehicle owner defaults on the loan, the lender can repossess the vehicle and then sell it to at least partially make up for its losses. In Indiana, both the lender and the borrower have certain rights when it comes to repossession. Banks' Rights to Payment In Indiana, banks extending vehicle loans can repossess their collateral after one missed payment if their contracts contain acceleration provisions. An acceleration provision allows the trustee...

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