Can You Borrow Less Than $5,000 From a Bank for an Auto Loan?

Having a good credit score, a high paying job and no debt could still mean a rejection for a $5,000 auto loan. Not because you lack the credit requirements, but it might be too low of an amount for some lenders to bother handling. Fortunately, if you qualify for an auto loan, but do not need more than a few thousand dollars, you can go for a personal loan or other lines of credit. Identification As of the date of publication, most lenders require borrowers to take out at least $5,000 for an auto loan. Anything below this amount may not...

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Help With Auto Credit

Buying a new or used car can provide the transportation you need to commute to work or school. But if you don't have cash to purchase a car outright, you'll need financing to acquire a car. Before meeting with a salesperson, explore ways to secure auto credit with a bank. Credit Score Banks and finance companies work with all types of car buyers. With this said, having bad credit or a low credit score won't necessarily disqualify you for financing, but you may pay a higher interest rate on the auto loan, which can increase the monthly car...

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What Are the Charges of Driving With a Suspended License in Colorado?

To drive on any public road in Colorado, a driver must possess a valid driver's license. A driver may have his license suspended for a variety of reasons, at which time he temporarily loses his privileges to operate a motor vehicle. If a driver is caught driving on a public road after his license is under suspension, he could face misdemeanor charges, depending upon the circumstances in which the license was suspended. Charges of Driving With a Suspended License To prove that a Colorado driver was operating a motorized vehicle after her...

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Is Buying a Car With Cash a Smart Decision?

Most car buyers can't afford to buy a car outright with cash, and they're forced to finance the vehicle. But if you have the cash in your personal savings, weigh the benefits of buying a car with your own money, and decide if this is the right decision for you. No Credit Check The ability to buy a vehicle often depends on your credit history and whether you can qualify for a loan or financing. But if using cash for your next vehicle purchase, qualifying for financing isn't a concern, and you can get the car with no credit history or with...

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Best Ways to Lease a Car

Car leases typically involve short-term loans with an average duration of two to four years. When leasing a car, avoid rushing the financing process in order to quickly get behind the wheel of an amazing new car. Think objectively and approach the lease by asking questions and negotiating. Do not mention that you are interested in leasing until after you discuss the sales price. Basics Start by understanding basic finance terminology. For example, APR refers to the annual percentage rate, or interest, your lease will maintain. Even though...

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How to Make Car Payments While on Short Term Disability

Short-term disability insurance pays a percentage of your salary if you are unable to work for a short period of time because of illness, injury or pregnancy. Many companies and businesses offer this type of coverage to their employees for a small monthly fee, but you can obtain short-term disability insurance on your own. Short-term disability benefits can help cover your bills while you are temporarily disabled (typically up to six months), which is especially helpful if you have a large debt such as a car note. Instructions 1 Speak to...

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How to Fix Bad Car Loans

You can get stuck with a bad car loan for several reasons. The most common is having a bad credit history: Lenders might not have been willing to extend credit unless you paid a high interest rate. But you could have gotten bad terms even if you have a good credit score. Either way, you should be able to fix your bad car loan. Instructions 1 Check your credit report to make sure it is in the best possible shape, advises Carbuyingtips.com. If you got a bad car loan because of credit problems, you will need to build up a history of on-time...

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How to Buy a Car After a Repo

Auto lenders commonly repossess vehicles when owners stop making their loan payments. Repossessions can follow a job loss, and having the bank reclaim your automobile can hurt your credit score. Losing your car can stop immediate loan approvals. But within time, you can improve your bad credit score and buy another car after a repo. Instructions 1 Negotiate with your lender. Lenders will report the repossession, and this notation will reduce...

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Requirements for Selling a Car

Situations may arise where you elect to sell a car instead of trading it in for a new model. You may need to raise extra cash, or maybe you just don't need the vehicle any longer. When selling your car privately, there are certain requirements you'll need to meet to facilitate the transaction. Obtaining Paperwork You will need to obtain all paperwork associated with your vehicle, including the title, registration and maintenance and repair...

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How to Get the Title for a Car in Michigan After It Is Paid Off

Your car title not only shows ownership but also designates who receives the insurance payment if the vehicle is totaled in an accident. Because of this, it is imperative that you receive the title quickly after you pay off the lien. In Michigan, the lender must notify the secretary of state within 15 days of receiving your final payment. Typically, you should receive your title within 30 days without any effort on your part, but if you do not, you must take steps to ensure that you receive the title from the lender. Instructions 1 Inspect...

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What is the Best Way to Repair Your Credit After a Car Repossession?

If your car has been repossessed for non-payment, your credit score has likely already suffered greatly due to the late payment history. Even worse, once a loan account is labeled as repossessed, your credit score will take an even bigger hit and the item will remain for any prospective lender or employer to see for up to seven years. Fortunately, a credit score can survive repossession and over time, with proper behavior, your credit score can be...

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How to Sell a Car to a Private Party in South Carolina

Buying and selling a car between private parties in South Carolina is fairly straightforward. The most difficult part is deciding a fair market price for your vehicle. Once you've found a buyer, it's only a matter of filling out some forms and filing them with the Department of Motor Vehicles to transfer the title. If you not have a title for your car, you will need to get a replacement title before you can sell it. Instructions 1 Locate the...

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Wheels-for-Work Grants

Wheels for Work grants provide disadvantaged families and individuals with the resources to obtain a reliable vehicle. State agencies or private organizations offer grants, donations or other financial products so low-income individuals can achieve self-sufficiency. Typically, employed applicants or those seeking gainful employment qualify if their incomes don't exceed a set standard. Purpose Wheels for Work programs seek to provide transportation to people who are attempting to secure and keep gainful employment. The programs operate in...

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How to Sell an Automobile & Provide Financing for the Purchaser

The type of automobile you are selling affects how quickly you locate a buyer, according to Edmonds. However, the Internet makes selling an automobile, regardless of the type, an easier task for owners. Additionally, stating that you are offering owner financing draws more interested buyers. While owner financing attracts buyers with less than perfect credit, this is not an indication that she will abandon the payments. After all, even those with...

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How to Buy a High Mileage Car

In this economy, it is best to save your money where you can and invest wisely. Additionally, it is best to limit your exposure to depreciating assets. This specifically applies to automobile purchases. As soon as you drive a new car off the lot, it looses value. With a used car, especially with a high-mileage used car, this depreciation becomes moot. With the right information, a buyer can purchase a used car at or below its value and continue to drive it with little to no depreciation worries. The longer the car is driven, the more value per...

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Can You Trade in Your Car if it Is Refinanced?

You can trade in your vehicle even with an unsatisfied refinanced loan. In fact, no difference exists between a refinanced loan or the vehicle's original loan when it comes to trading in. The bank has a lien on the vehicle either way, and the loan must be satisfied by the dealership once the vehicle is traded in. Value and Payoff Just as with a first-time loan, you can check the vehicle's equity against its loan payoff amount to figure if trading is worthwhile. Call your bank to find out your vehicle's payoff amount. Rather than try to...

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Buying a Car With No Credit History

Buying a car without credit history can be as challenging as buying a car with bad credit. Lenders are hesitant to loan money---whether for a home, a vehicle or a credit card---if the consumer does not have a history of showing she has paid her bills in the past. While you may be able to find a lender who is willing to offer credit, it will be an easier process if you can take six months to establish credit prior to attempting to finance a vehicle....

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What Are Car Buyer Incentives?

Car manufacturers and car dealers need to keep selling new cars to maintain the production of subsequent models. If the inventory in dealer lots of certain models gets too high, the car manufacturers will offer incentives to make the cars more affordable to buyers. Incentives become especially prevalent when a new model is coming out and models from previous years need to be sold. Consumer Cash Consumer cash or cash rebates are a widely used form of car buying incentive. The car manufacturers offer extra money if a buyer purchases a specific...

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Can You Remove a Co-Signer on a Vehicle?

It is very unlikely that your lender will allow you to remove a co-signer from your auto loan without applying for a new loan by yourself. Your current loan terms were based on your co-signer's credit and income. Your lender may allow you to refinance your car loan, or you can choose a different loan provider. Loan Terms Your current loan terms are based on information obtained from your co-signer's credit report. Good-credit borrowers may obtain up 120 percent of a vehicle's value, while someone with poor credit might obtain as little...

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Can the Residual Value on a Car Lease Be Negotiated When the Lease Is Up?

Unfortunately, the residual value of a leased car is rarely negotiable. Banks are in the business of making a profit. The residual value is the bank's best estimate of what the car will be worth at the end of the lease term. Accepting an amount lower than the residual value for the car means a loss for the bank. Residual Value The residual value is the amount you can buy the car for after the lease term is up. A low residual value equates...

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How to Find Auto Financing After Bankruptcy

Bankruptcy harms your credit, especially if you did it recently. It is possible to obtain an auto loan afterwards, although re-establishing yourself first can help you to obtain a better interest rate. Otherwise, arranging funds for a down payment and applying to the right lenders can help you to obtain an auto loan after bankruptcy. Loan-to-Value Ratio The vehicle's value, the amount you wish to borrow and your overall credit history and score determine the percentage of your loan-to-value ratio. Good to excellent credit customers may...

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How to Calculate How Much Mileage Is Left on a Lease

When you lease a car, the lease will include a certain number of miles per year included in the lease. If you exceed the total mileage allowed in the lease, you will have to pay over-mileage charges. The knowledge of how many miles you have remaining on your lease can help you avoid a large over-mileage charge when the lease ends. Instructions 1 Find the "Federal Consumer Leasing Act Disclosures" form in the paperwork you received when first...

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What Do You Do When Your Stolen Vehicle Is Recovered After Insurance Has Paid It Off?

If your car is stolen and your insurance company pays you for the loss, you are no longer the car's owner. As a condition for paying you for the car the insurance company typically requires that you sign the car title over to the company. However, each insurance company is different and has different policies so ask your insurance company if you have a specific question about policy details. Stolen Car If your car is stolen and you have comprehensive auto insurance, your insurance company will typically reimburse you for the stolen vehicle....

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Definition of a Bad Credit Car Loan

Regardless of credit, many people require a car for work. Car loans can be confusing and calculating interest rates and payments can seem daunting, even for people with perfect credit scores. For those with less-than-perfect credit, the only option is sometimes known as a bad credit car loan. These loans are offered to buyers with several stipulations attached, as well as several fees. The following provides information about bad credit car loan services. Interest Rate Most bad credit car loans will come with a high interest rate. Depending...

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What Do I Do With My Title, Tags, and Insurance After My Car Was Repossessed?

Once your car loan lender repossesses your vehicle for nonpayment, it no longer belongs to you. What you do with your title depends on your state laws. Since the car is no longer in your possession, you need to call your insurance company to cancel your insurance on the vehicle. After Repossession Immediately after your creditor repossesses your car, you can contact it to discuss your options for getting the car back. Generally, this requires either paying off the loan in full or making your past due payments plus repossession fees. If...

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How to Make a Payment in DriveTime

DriveTime is a nationwide dealership, offering thousands of vehicles for sale to accommodate the taste and budgets of customers all over the U.S. Many customers finance their vehicles through DriveTime. To assist customers in making their payments, DriveTime has a number of ways in which it will accept payment. Most payment options charge a fee ranging from a little over a dollar to almost $13, but a few options are free. Instructions 1 Set up automatic deductions with DriveTime. DriveTime will deduct your monthly payment directly from your...

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Assignment and Transfer of a Vehicle Lien

When you take out a vehicle loan, your loan holder assigns a lien to your vehicle title. A lien is a legal right to the title; you cannot sell or dispose of the vehicle without the lien holder's permission, and if the vehicle is destroyed in an accident, your lien holder receives the insurance settlement. In some cases, you can transfer the lien to a new owner if you sell the vehicle. Written Authorization If you want to sell a vehicle you currently make payments on, you usually have to obtain written permission from the lien holder. In...

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Why Do Banks Sell Your Car Loan to Other Banks?

The process of buying a new car is complicated by all of the variables involved, including the make and model of the car, the price you pay and the warranty. Financing your purchase only adds to the confusion. Buyers can have any number of misconceptions about how auto loans work, and what happens to them once issued. Banks as Lenders When you finance a new car, you may handle all of your negotiations, including arranging a financing deal, through the dealer. However, dealers do not finance vehicles themselves. Instead, dealers receive...

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Why Do I Need a Deposit When Leasing an Auto?

When you lease a car, you agree to make monthly payments for a set period of time, after which you'll have the option of returning the car to the dealer. Leases allow you to drive a new car every few years, but they also subject you to fees and costs that aren't present when you buy a car. One such fee is a security deposit, which some dealers ask for in addition to your standard down payment. To Cover Damage One of the reasons auto dealers require you to pay a security deposit when you lease a vehicle is to cover any damage that the vehicle...

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How to End a GMAC Lease

GMAC is a lending institution that offers individuals who want to lease a vehicle the necessary financing to do so. The lease term may vary, but at the end of the designated lease period, you will have to make some important decisions about how you want to end your lease. In addition, you should be aware of the condition the car is in before you return it, or you may end up paying additional charges. Instructions 1 Determine your excess mileage...

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What Happens With an Auto Repossession?

Repossession is a process that auto lending agencies take to recover their assets when a car buyer defaults on an auto loan. In a repossession, the lending agency hires someone to forcibly remove and impound the automobile. Default According to the Federal Trade Commission, in many states, lending agencies have the right to seize a vehicle as soon as the borrower defaults on the loan by missing a payment or paying late. Vehicle Seizure...

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What Does a Charge Off Mean on a Car Loan?

A car loan is a secured installment account. A financial institution gives you money to purchase a vehicle. The car then acts as repayment collateral. You get a clean title to the vehicle once you pay the loan in full, or the bank takes it if you stop making the agreed-upon payments. Often a balance remains on the loan after the bank sells the repossessed car, and that money may be charged off. Definition A charge off is an accounting procedure by creditors when they deem a loan balance to be uncollectable. This action does not erase your...

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The Best Online Motorcycle Loan Financing Options

Pursuing a motorcycle loan is similar to pursuing a vehicle loan; you can find competitive rates and submit an application online for most lenders. Motorcycle manufacturers may offer low-rate financing for a motorcycle purchase, so shop around to find which lenders offer the best financing before you apply. Motorcycle Manufacturer Banks If you're purchasing a new motorcycle, pursue financing with the motorcycle's manufacturer if it allows. Often, manufacturers offer aggressive rates that can't be beat by other lenders. If you're interested...

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How to Remove a Cosigner From a Reaffirmed Auto Loan

Removing a cosigner from a loan is not possible. Your lender used your cosigner's credit to set your interest rate, loan term and down payment amount. For this reason, you must reapply to your lender or another loan provider for a refinance to remove your cosigner. Your interest rate and term might change, or you might need a down payment to create equity in the vehicle. You also need your cosigner's authorization to refinance your loan. Instructions 1 Talk to your cosigner before you contact a lender to refinace your car loan. Obtain his...

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Can I Get an Auto Loan for a Private Sale If That Car Is Not Paid Off?

Purchasing a car from a dealership can mean higher sticker prices. With private owners, you can generally negotiate lower prices when the seller is finished making payments on the car. However, some car owners sell their cars before they are finished paying off the balance of the car loan. Before you can obtain the title of the car, the outstanding balance on the car loan must be paid in full. Balance The balance on the owner's loan is not transferable. When you seek to purchase the car, be sure you understand the terms of payoff for the...

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Is a Car Loan Considered a Secured Loan?

Lenders secure car loans by using the vehicles as collateral. The lender has the right to repossess the car if the borrower defaults on the loan. Some people use unsecured personal loans to buy cars, but if a borrower of a personal loan defaults, the lender has no ownership rights to the car. Financing a Car Prior to securing a lien against a car, the lender must determine the worth of the vehicle used as collateral. Generally, lenders use car values listed in the Kelley Blue Book. KBB shows prices for cars based on make, model, age, condition...

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How to Get a GMAC Lien Released

GMAC is a financial institution that provides automobile loans to individuals buying new or used cars. If you choose to take out a loan to buy the car, rather than buying it outright, GMAC will place a lien on the car's title. The loan is the amount of money you must pay GMAC back for the purchase of the car, while the lien is the legal claim GMAC has on the car you purchased. The lien can be removed only when the loan is paid in full. Once the lien...

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Is It Cheaper to Buy a Car at 0% Financing or to Get a Cash Back Offer?

When deciding between a zero percent interest rate offer or a cash-back offer, also known as a rebate, consider your total loan payback amount and monthly payment to determine the cheapest approach to car ownership. Several loan factors can affect your overall savings, such as a trade-in, down payment amount, loan term and approved interest rate. Considerations The difference between your monthly loan payment and your overall loan payback amount depends on the amount you finance, your interest rate and the loan term you choose. If you...

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Auto Financing Questions

Buying a new car can be an exciting experience, but when it comes to financing it, many people are confused. If you are financing a new car, you need to make sure that you understand the terms of the agreement. Asking the right questions can go a long way towards making things clear. What is the Length of the Loan? When you are getting an auto loan, you need to ask exactly how long the term of the loan is. Dealers will often try to play with the term of the loan to get you a payment that you can afford. If they hear you talk about a payment...

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