How Does Auction Car Buying Work?

Buying a car at an auction offers the opportunity of getting a really good deal, as long as you don't mind taking a bit of risk. Typically, cars sold at auction have no warranty or guarantee attached to them, meaning that if you make a mistake and buy a piece of junk, it's your piece of junk to deal with. Auction Bidding Different car auctions have rules that may vary to some extent, but they all work more or less the same. Cars are either...

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Can You Pick How Long Your Auto Loan Lasts?

Banks differ in the lending process; many offer a 24- to 72-month term for auto loans, while some offer more. Although you can apply for your preferred loan term, consider your budget and rate differences based on term length before you apply. Also consider the information the bank uses to determine your approved loan term. Budgeting To decide how long of a term to apply for, consider your overall vehicle price and budget. Include your taxes and fees; call your state's motor vehicle department for your tax rate and fee requirements. Edmunds.com...

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How to Sell a Vehicle You Still Owe Money On

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Financial Concerns When Buying a Car

If you want to purchase a vehicle, but are unsure about your credit, financing options or budget, take the time to set your budget and method of payment before shopping for a car. This way, you can shop by your budget to purchase a car you can comfortably afford. Setting a Budget To avoid various financial issues that can result from an unorganized car purchase, set a budget for yourself and stick to it while shopping. Go over your monthly bills to determine how much money you have left over to comfortably spend on a vehicle payment and...

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Can I Give My Car Back to the Creditor?

Giving your car back to the creditor is known as repossession. Repossession significantly damages your credit and should be avoided. Other options exist that may prevent you from having to return your car. Learn about the process, effects and other options before you decide if you should give your car back. Types The two types or repossession are voluntary and involuntary. An involuntary repossession occurs when the bank hires a towing company to come and collect your car for return when payments are late or behind. A voluntary repossession...

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Do You Have to Buy the Car After You Paid the Deposit?

You can back out of a car deal after you've paid a deposit. Depending on the agreement you made with the dealer, it may not want to refund your money. Do not leave a deposit on a vehicle unless you intend to buy it. Otherwise, if you want to hold the car, make sure the dealer notes that the deposit is refundable. Your Receipt Prevent any hassle at the dealership by signing a receipt that truly reflects your purchase decision. For example, if you aren't sure you want to buy the vehicle but are offered a chance to hold it by leaving a small...

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Can I Buy Back a Totaled Car From the Lien Holder?

Depending on the extent of the damage and your vehicle's value, a car accident could result in your insurance company "totaling" the car. Insurance companies typically total out vehicles that would cost more to repair than to replace. In the case of older cars or cheaper vehicle models, your insurance company could total your car when the vehicle itself sustained minor damage and is still functional. Should this occur, you can negotiate with your...

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Do I Need to Pay Back a Car If It Was Repossessed?

Having your car repossessed is a result of not paying loan or lease. You may have lost your job or had some other financial hardship that prevented you from keeping your account current. However, when you default on your auto loan, you risk repossession by the lender. Because the car was used as collateral, it is taken as payment, but you still may be responsible for a portion of the loan. Seizure Your car can be repossessed if you miss just one car payment. However, most lenders will contact you first to try to bring your account up-to-date....

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How to Cancel a Lease on a New Car

Canceling a lease agreement on a new vehicle can impact your finances and credit rating. However, unexpected events do occur; some people endure financial hardships shortly after signing a lease agreement. Fortunately, there are techniques to help you get rid of a newly leased vehicle. Instructions 1 Give the car back. Return a newly leased automobile to the dealership within three business days to cancel the agreement without damaging your credit rating. Lease contracts vary. Read the conditions of your agreement to see if you're eligible...

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Alabama Laws for Car Title Loans

Car title loans are short-term loans, generally at a relatively high rate of interest. Each state has the authority to enact consumer protection laws governing the lending practices of car title lenders. In Alabama, since the general assembly does not view car title lenders as official financial lending institutions, the state imposes few restrictions on them. Instead, car title lenders are pawnbrokers, according to Alabama law. Alabama Pawn...

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What Are the Rights of a Co-Signer on an Auto Loan?

The co-signer on a car loan shares an obligation with the primary borrower to repay the loan. In most instances a co-signer has no ownership rights to the vehicle. Therefore, if you are thinking of co-signing on a car loan you should first add your name to the title of the vehicle being financed. Onwer Versus Signer When you take out a secured loan such as a vehicle loan or a home loan, you must sign the contract both as an owner and as a borrower. As an owner you sign your consent for the lender to place a lien on your property. In your...

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Can I Use My Car to Borrow Money?

Tough economic times call for creative solutions to financial problems. Many families pay down debt or save money by selling unneeded personal property. Others borrow money against assets to make ends meet. If you own your car outright, you can use your car title to borrow money against your car. However, it is prudent to remain aware of the risks inherent in the transaction. Ownership Car title loans require that you use your car title as...

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Auto Loan Information: How to Buy a Car With Bad Credit

So you've got bad credit and want to buy a car? The outlook may not be as bleak as you think. Sure, people with the highest credit scores usually get the best deals on auto loans, but even bad-credit borrowers can find financing. That financing may even come from a bank or credit union offering somewhat respectable interest rates and terms. Sometimes banks and credit unions take chances on bad-credit car buyers by requiring a larger down payment....

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Does a Car Get Paid Off if the Owner Dies?

When a person dies, all of his affairs must be settled through an orderly legal process. This includes paying off any debts that the person owed, and then distributing any remaining assets to the heirs of the estate. When the deceased person owed money on a car loan, the treatment of that loan will vary depending on the value of the estate, and other estate planning preparations that the owner made prior to his death. Loan Life Insurance If the owner of the car purchased a life insurance policy covering the unpaid balance of the car loan,...

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Should I Buy a Prepaid Maintenance Plan for My New Car?

A prepaid maintenance plan can potentially save you money, as it allows you to pay for years of vehicle maintenance upfront. However, maintenance is usually more expensive at a dealer than at a private shop, and the plan requires you to return to the dealer that you purchased from. Determine your long-term costs before purchasing a maintenance plan. Plan Details Go over the details of the maintenance plan with the dealership representative who offers it to you. Make sure you have a clear understanding of which items are covered and which...

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Laws About Defaulting on a Car Loan

Most people finance the purchase of a new or used car through a car loan. The terms of the loan will vary by lender, but many aspects of all car loans are similar. When a loan is used to purchase a vehicle, the vehicle itself acts as collateral to secure the loan. If the borrowers default on the loan, the lender has the right to reposes the vehicle in most cases. The majority of laws concerning car loan default can be found in Article 9 of the Uniform Commercial Code. Some states also have specific laws concerning this. Features After you...

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How to Calculate a Lease Rate Factor

The lease rate factor is used by equipment lessors as a means of determining interest payments, using a simple formula of interest rate divided by 24. The result is a quick way to calculate any changes in the leasing agreement. A few simple steps will help you calculate lease rate factor and apply it to leasing information to determine monthly payments. Instructions 1 Determine the value of the equipment at the end of the leasing term. To...

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How to Get Help to Buy a Car With Bad Credit

Having a bad credit score can make it difficult to get a loan. To qualify for a car loan when you have bad credit, you need to find a way to convince the lender that you are not going to default on your loan. One way to show the lender you are an acceptable credit risk is to get a co-signer to help you secure your loan. Instructions 1 Sit down and analyze why you need help getting a car. If you have a bad credit score, it could mean a history...

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What Are the Credit Effects of a Car Repossession?

If you fail to abide by the payment terms in your auto loan contract, your car will be repossessed, whether the bank seizes it or you make the return yourself. The MyFico website warns that each individual's credit is impacted differently after non-payment of a loan, but expect your credit score to decrease significantly after repossession. Repossession On Your Credit Future creditors will see that you didn't pay your auto loan and your vehicle was repossessed. Creditors, employers or landlords viewing your credit report can also see the...

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If You Buy a Car Can You Return It in Three Days After Purchasing It?

After purchasing a car, circumstances may arise that cause the buyer to change his mind shortly thereafter. Each state has its own specific rules and regulations for whether a consumer can change his mind after signing a purchase contract. Many states have what is called three-day rule for canceling a contract. Three-Day Rule After signing certain contracts, an individual has three days to cancel, according to federal laws. This is called the "cooling off" rule or "three-day" rule. To cancel, the individual must inform the company or other...

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The Best Sources for Refinancing Auto Loans

Whether the economy is running on all four cylinders or struggling with high unemployment, consumers should explore all options to obtain the best auto refinancing terms. The first step is to obtain the most recent credit report from all three major bureaus (Experian, Equifax and TransUnion) in order to leverage a good report or otherwise accept the available options. Banks Local banks are often a convenient refinancing source for auto loans. As generally conservative lenders, they tend to prefer working with customers who have excellent...

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Do You Need to Transfer the Title When Selling a Car?

The Certificate of Title, as it is called in most states, is the document that shows legal proof of ownership of a motor vehicle. The title is also used to register any liens against a vehicle. The finance company generally will not provide a copy of the title to the owner of a vehicle until any loans against it have been paid off. The title must be transferred to the new owner when you sell a vehicle. When to Transfer a Title The title to...

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How to Negotiate a New Car Lease

If you are interested in leasing a new car instead of buying or financing a new car, you can negotiate in the same manner as you would when buying a car. Leasing a car does involve some items that you do not encounter when financing or buying a vehicle. You must know the lease terms and the number of miles that you want included as part of the lease. Lease terms usually range from 24 months to 48 months. The miles allotted per year usually range from 10,000 to 15,000. Instructions 1 Use the True Car website (see Resources) to view the car...

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Can a Person's Name Be on the Title of a Vehicle If Their Name Is Not on the Loan?

When an individual finances the purchase of a car, the title to the vehicle is sent to the finance company in most states and remains with the company until the vehicle is sold or the loan is paid in full. You may wonder, though, whose name is on the title and whether you can add or remove a name from the car title. Certain rules determine whether an individual's name can be on a car title, and one key factor involves the names listed on the loan....

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Procedure to Buy a Used Car

You can purchase a used car from a dealership or private party, but each requires different actions on your part for registration, titling and tax payment, if your state charges taxes. Learn which procedures you should follow during your purchase to ensure you choose a reliable vehicle you can comfortably afford. Budgeting Before shopping, create a budget and stick to it. If you plan to finance, consider your monthly payment in addition to a full-coverage insurance policy (necessary for lending purposes) and maintenance items. Use an auto...

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