Can I Trade in My Car When It Is About to Be Repossessed?

You can trade in a car if you are behind on payments, but the process might prove difficult. Most lenders require up-to-date accounts, meaning you'll have to pay the past-due amount. Late payments also affect your credit score, which ultimately affects your chances for a new loan and fair interest rate. How the Dealer Knows Let the dealership know that your vehicle is about to be repossessed. Even if you bring your vehicle's loan payoff amount or arrive after bank business hours, the dealership will obtain your loan payoff directly from...

Read More

Motor Vehicle Repossession Laws in South Carolina

People often find themselves struggling to pay car loans. When this happens, lenders can repossess, or take back, the car. They can then sell it to satisfy the loan amount. In some instances, the lender may choose to keep the repossessed car rather than sell it. Like all states, South Carolina has specific rules governing when and how cars can be repossessed. Default Rules South Carolina allows lenders to repossess motor vehicles when borrowers default. Some lenders consider a borrower in default if she allows the car's insurance to lapse,...

Read More

Can I Get an Auto Loan Even If I Have No Job?

When a person has no job he may find it difficult to take out a loan. This is because the lender may be unconvinced that the person will be able to pay the loan back, as he does not have much, if any income.However, he may be able to take out a car loan if he can provide the lender some alternative reassurance that he will pay back the debt. Down Payment A finance company will generally seek a down payment for a car loan, regardless of the borrower's financial or credit history. However, a person who does not currently have a job may have...

Read More

How Do Car Dealers Check Your Credit?

Most people who buy new or used cars that cost more than a few thousand dollars plan to finance their vehicle by making a down payment and taking out a loan with monthly payments for the remainder of the purchase price. The amount of the down payment and the interest rate and duration of the loan are the key factors in determining the size of the monthly payment. Filling Out a Loan Application The first step in getting a loan from a car dealer is filling out a loan application. The application will at a minimum require your full name and...

Read More

How Does Auto Loan Interest Work?

Auto loan interest is usually calculated using a simple interest formula, as opposed to a compound interest formula. This means that your monthly payments include principal and interest paid only on the principal (and not on incurred interest balance). Basics Common auto loans are established for 36- to 72-month payoff terms. Similar to home mortgages, auto loans are paid on an amortized schedule that takes into account the principal, interest...

Read More

Tips on Buying a Car With the APR Based on the Credit Score

Your credit score is an important player in the purchase of a new or used vehicle. Unless you have the cash on hand to buy the vehicle outright, you're going to finance at least a portion of the vehicle's price. There are several strategies you can employ to manipulate the interest rate attached to your auto loan to net you the largest savings and the lowest possible rate. Clean Up Your Credit If you don't have a lot of cash saved up to put a down payment on a vehicle, the best thing you can do to secure a low interest rate on a car loan...

Read More

Problems With Taking Over Payments When Selling a Car

When you find the car of your dreams, you may go through extreme lengths to obtain that vehicle. This could include taking over someone else's car payments. This is a risky transaction, even if you're taking over the payments of a friend or relative. If you do decide to take over someone else's car payments, your safest bet is to go through the lender. You Don't Own the Car If you take over payments for a friend, relative or even a random...

Read More

Can I Pay My Deceased Parent's Car Loan?

Cars often carry sentimental value to people, and when the owner of a vehicle dies, his heirs, particularly his children, may want to keep the vehicle in the family. Even without sentimental value, the vehicle may be reliable and worth keeping to one of the deceased's children. Under many circumstances, a son or daughter may pay on a parent's car loan and keep the vehicle. Cosigning If you are a cosigner on your parent's car loan, you should plan to continue paying because you are responsible for the loan. The cosigner is jointly and severally...

Read More

What Are My Responsibilities As a Co-Signer on a Car Lease?

As a cosigner, you're responsible for the same leasing requirements and contract provisions as the borrower. Billing and correspondence usually goes to the registered borrower, however, so you might not be notified if the person you cosign for is missing or late on payments. Before cosigning for someone else's lease, consider your various responsibilities and how they can affect you financially. Monthly Payments As a cosigner, you are responsible for the consignee's monthly car payment. Even though you are likely not making the payment,...

Read More

Does a Repo Affect Your Credit if You Get the Vehicle Back?

A repossession affects your credit even if you pay to get your car back. It's unlikely a lender will repossess your vehicle the day after you miss your payment, so your negative payment history has already been reported to the credit bureaus. Late payments and repossession both affect your credit. Dealing With Your Lender Ask your lender directly if it reports the repossession to the credit bureaus after you pay to have your car returned. Not all lenders report the event if you catch up on the loan payments, collection and repossession...

Read More

How to Calculate Monthly Payments on a Motorcycle

So you've found the perfect motorcycle that you want to purchase, and you can see yourself cruising down the road on it. But, as is the case with almost everything, you have to find a way to pay for it. If you don't have the cash to pay for the entire thing, you will probably have to take out a loan. Calculating your monthly payment is important to ensure it fits into your budget. Instructions Using a calculator, pen and paper 1 Convert the...

Read More

Tips on How to Buy a Car Online

If you're in the market for a new or used automobile, you can save time and money by purchasing online. Many car dealerships and auto sales websites offer a variety of new and used vehicles for sale online, and all transactions can be completed electronically. Sometimes, your car can even be delivered right to your driveway. However, buying online could leave you subject to scams and con artists. But a few tips on how to buy cars online can help...

Read More

Things You Need When You Are Buying a Car

Most states require at least liability insurance to register a vehicle. If you plan to finance your car, your lender likely has its own specific insurance requirements as well. Before pursuing a car purchase, make sure you have all you need to satisfy a dealer, lender or state requirements for a car purchase. Payment Determine how you will pay for your car before you begin to shop. If you intend to use an auto loan for your purchase, obtain a pre-approval from an auto lender of your choice. Use your loan terms to adjust your shopping price...

Read More

The Best Time to Refinance an Automobile

The best time to refinance a car varies by person and individual circumstance. Refinancing can offer a borrower an opportunity to lower her car payment, reduce loan payback amount or shorten a current loan term. Determine the ideal times to refinance and if the option can benefit you financially. When You Have a Down Payment You can lower your current car payment and shorten your loan term if you have a down payment to offer toward your refinancing. Even if you don't obtain a lower interest rate, you'll save money over the term of your...

Read More

What Happens When I Go Over the Miles on My Lease?

Leasing a car has a number of considerations and drivers who spend a lot of time in the vehicle may exceed the number of miles allowed in the contract. Though excess miles can lead to very high lease fees, drivers have a number of options that range from negotiating with the lease company to an outright purchase of the vehicle. Buy the Car In a 2005 article, Fox News reported drivers who exceeded the mileage allocation in a lease may benefit...

Read More

How to Calculate the Effective Interest Rate for Leases

Many consumers who choose to lease a vehicle aren't aware that they're effectively paying interest in addition to the amount the vehicle depreciates over the lease term. Automotive dealers aren't required to disclose the effective interest rate in their lease contracts. Financing charges are usually referred to as a "money factor," a decimal figure with little obvious correlation to typical interest rate yields, and aren't usually disclosed to customers. With the application of Newton's method and basic financing formulas, a lessee can determine...

Read More

Help With Car Finance

When it comes to purchasing a new vehicle, it's always ideal to pay with cash. By paying with cash, you have the ability to negotiate a lower price for your vehicle. You can also avoid all of the high interest fees that are charged by lenders. If you don't have sufficient cash available to purchase a car, all hope is not lost. The next option to consider is financing. Build Your Credit The first order of business, before seeking car financing,...

Read More

Is It Worth Getting Full Car Insurance on a Used Car?

If you are paying cash for a used car, you are not required to get full-coverage car insurance. Most states require vehicles to have a minimum liability policy in effect for registration. Depending on the value of your vehicle, you may want to purchase a full-coverage policy to protect yourself from loss. Full-Coverage Details Full-coverage insurance covers damages to your vehicle caused by an at-fault accident, theft, fire or damage from weather or animal collision. A state-required liability policy covers only injury to other people and...

Read More

What Is the Difference Between Residual Amount & Payoff Amount?

Financing and leasing options can be voluminous when shopping for an automobile. Automobile dealers often refer to payoff and residual amounts when discussing leasing options. A payoff amount can also refer to vehicle financing. Mechanics of Leasing When you lease a car, you agree to pay a specified amount over a set period of months to use the vehicle. The process begins similarly to a traditional purchase; you agree upon a purchase price....

Read More

How Is a Beacon Score Evaluated When Purchasing a Car?

Edmunds.com states that an excellent-credit borrower is defined by a credit score of 720 or more, while poor credit borrowers have a credit score of 620 or less. A borrower's credit score alone does not ensure a loan approval or decline. Before you apply for a car loan, consider which other credit information lenders use to determine a loan approval. Credit Score Some auto loan providers may approve loans based on credit score alone. Most lenders, however, use a combination of credit and personal information to ultimately determine a loan...

Read More

Can Car Refinancing Improve Your Credit?

A car loan can represent a significant portion of your monthly budget. The amount that you pay in interest to buy a car, especially with a low down payment, can easily reach several thousand dollars over the life of the loan. This is why refinancing, which may depend on your credit score, can be a way to save money and protect your credit history. What is Refinancing? Car refinancing may seem to be a complicated process surrounded by confusing terms and numbers, but it is actually relatively simple. When you refinance a car, you get a new...

Read More

How to Get My Car Payment Taken From My Checking Account

Many lending banks offer an option to have your car payment taken from your bank account, although you most likely will need an account at the bank to have this done. If you financed through a local bank, you were probably required to open a bank account anyhow, so you may have to start using it if the bank requires you to. Some banks even offer a rate discount for getting set up on an automatic payment plan. In order to find out the benefits and requirements, you must call your lender for information. Instructions 1 Call your lender. You...

Read More

Does It Hurt Your Credit Score to Prequalify for a Car Loan?

Prequalifying for a car loan, also known as obtaining a preapproval, won't substantially affect your credit if you apply for only one loan preapproval. Each time a lender accesses your credit the inquiry remains listed on your report for several years. If you constantly apply for credit, the decrease in your credit score might become significant. Point Reduction Your credit score can decrease by up to five points each time a lender accesses your credit report or not all, depending on the length of time between inquiries. The My FICO website...

Read More

If I Refinance My Auto Loan What Will Happen to All the Money I Put Toward the Principal?

The process of refinancing is relatively common for people seeking to change the terms of their home loans. However, many people who have taken out auto loans may also choose to swap out their current loans for others. The process of refinancing an auto loan closely mirrors that of refinancing a home loan. When an auto loan is refinanced, the person will only refinance the portion of the loan that is unpaid, not the principal. Auto Loans When a person takes out an auto loan, the lender that he borrows the money from provides him with enough...

Read More

What Is the Dealer's Profit on Selling a Car?

Cars sold at a dealership differ in profit. Used cars are bought from a person or source for different amounts, and sale prices are often inconsistent. For this reason, it is impossible to determine the amount a dealer makes on a used-car sale unless he tells you. Some cars do not make a profit at all. New-car profits are easier to gauge, as invoice prices are available online. New Cars You can find new-car invoice prices online by using the "True Market Value" tool provided by Edmunds.com. The invoice price is the amount a dealership owns...

Read More

List of Needed Documents When Selling a Car

Outside of asking for a price and fixing up your car to sell it, exchanging required documents with a buyer isn't always simple. Each state has its own requirements when it comes to passing on documents to your buyer. Most of these state laws are similar, except in California, where one specialized certificate is required. Title and Registration All state laws require that you first transfer your car title and registration when selling your...

Read More

How to Finance a Car With No Credit Check & No Money Down

Many lenders don't want to take a chance on making business deals with people who have anything less than stellar credit. That means a good number of Americans are having a hard time finding financing. However, certain people and companies are helping people with low or no credit. You have a few options if you want to buy a car with no money down and no credit check. Instructions 1 Look for a private seller willing to accept payments from...

Read More

What Is the First Payment Default Rule on an Auto Loan?

The lender for your auto loan sets several rules in the terms of the agreement. One of these is often a first payment default rule that accelerates your loan going into default when you are late on your first payment. Pay attention to these rules to avoid having your car repossessed shortly after you buy it. Auto Loan Default Your auto loan will go into default when you fail to make payments as agreed in the terms of the loan. Ordinarily, it takes anywhere from 90 to 120 days of failing to pay or underpaying before the loan will be in default,...

Read More

Auto Loans for Limited Credit History

About 20 million to 25 million Americans have no credit, according to the Fair Isaac Corp., the originator of the FICO credit score. Getting an auto loan, like all other loans, depends upon both credit score and your income. If you haven't used a lot of credit in the past, or have not used credit in a long time, you may have more difficulty obtaining a car loan because of your limited credit history. Credit History As a consumer, your interaction...

Read More

How to Cancel an Auto Purchase

Buyer's remorse is a common feeling, and it affects everyone from time to time. Certain items such as clothing, furniture and electronics are easily returnable; most retailers accept returns within the first 30 days. On the other hand, if you purchase a car and then decide to cancel the purchase, you may or may not be able to return the vehicle. Instructions 1 Read your contract. Before taking your vehicle back to the dealership, read the...

Read More

Are Title Loans Legal in Arizona?

Car title loans, also known as secondary motor finance lines in the Arizona Revised Statutes, are cash loans that are backed by the equity in a vehicle. If the vehicle owner does not pay back the loan with interest after a month, the owner may renew the loan, or the loan company has the legal right to seize the vehicle. According to Jean Ann Fox of the Consumer Federation of America, the state of Arizona allows title loans and limits the amount of interest that a company may charge on such a loan. Interest Per 44-291(G) ARS, Arizona title...

Read More

Government Lemon Law Information

Sometimes a bargain that looks too good to be true is too good to be true. Even a reputable dealer may sell you a car so defective that it's either unusable or worthless. To protect buyers from being stuck with a clunker, state governments have passed lemon laws, which empower buyers to get a better deal from their dealer. Lemon laws apply only to manufacturers and auto dealers; if you buy a lemon from a private owner, you're out of luck. Identification...

Read More

For How Long Does a Written Warning Stay on Your License?

Having a "good" driving record means you have not been charged points for driving violations. However, it does not mean you've never received a written warning from an officer for poor driving, for instance. Written warnings are differentiated from traffic citations in a variety of ways. The most important of which is the former does not appear on your permanent driving record, whereas the latter does. Identification Every state department of motor vehicles uses vehicle codes to differentiate various counts of driver negligence. Such codes...

Read More

Can I Get My Car Title After Paying All of the Payments Except Excessive Late Fees?

If you're still paying for your car, you signed a contract that allows a lender to collect fees for late payments, no matter how excessive the fees might seem. Whether you have a traditional auto loan or a car title loan where you used your vehicle as collateral, you must pay any fees stated in your contract to obtain your car's title. Your Loan Contract Read over your contract to determine the accuracy of your late fees. Lending contracts outline the cost of late fees and when the fees are charged to your account, such as after 10 or 30...

Read More

What to Know in Buying a Pre-Owned Car

Buying a pre-owned car can save you a considerable amount of money. However, even used cars represent an expensive purchase for most people, so it is important that you shop wisely to get the best value possible. By understanding what you need to know in buying a pre-owned car, you can research the history of each vehicle, get accurate pricing information and avoid getting ripped off by shady sellers. Vehicle History Pre-owned cars may look...

Read More

What Happens If Your Car Payments Go Into Default?

When you get behind on your car payments, the loan will eventually go into default. When this occurs, your car could be repossessed and your credit will be negatively affected. You can expect plenty of phone calls from a collection agency as well as notices in the mail. Collection Agency When you go into default, the lender will most likely contract with a collection agency to attempt to collect the debt. The collection agency will call you frequently as well as mail you notices. The collection agency will try to reach you to get you to...

Read More

Is it Illegal to Sell My Car If I Owe Finance on It?

It is not illegal to sell your car if you still owe money on your car loan, but you'll have to abide by your state and lender's requirements to transfer ownership. Some states don't allow vehicle title transfers when a lien exists, so you'll have to provide a lien release from your lender. Expect to pay off your loan to sell your car. Your State's Rules States vary on title processes when a lien exists. Some states send the title to the lien holder; once the loan is satisfied the lender will release the title. If this is the case in your...

Read More