What Should I Consider About Buying My First Car?

Your first car is probably not going to be new, and it will probably come with a personality. However, that car will serve you well if you choose it wisely. Your budget will be first priority, especially settling on a realistic budget and sticking to it. After that, several factors should be considered. Budget and Reliability Your primary consideration, unless someone else is buying the car for you, is the cost of your vehicle. Your budget...

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Can I Take a Car I Co-Signed for Even if the Primary Owner Is Still Paying for It?

When you co-sign for a car loan, you put your own credit on the line by agreeing to guarantee the primary owner's payments. If the primary owner does not make the payments as promised, the lender will require the co-signer to pay off the balance of the car loan plus interest. While several pitfalls come with co-signing a car loan, one key disadvantage is that you have no rights of ownership concerning the car, only an obligation to pay if the primary owner doesn't. Registration The car would be registered in the name of the primary owner....

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What Happens if a Car Gets Repossessed and Who Pays for It?

When a lender seizes your vehicle for nonpayment, you might be offered an opportunity to purchase it back. If you don't, the lender resells the car and bills you for the amount due on the loan. Even though you dont own the vehicle any longer, you must still pay any balance due on the loan, as you agreed to do when you signed your original contract. Repossession Process After you miss one or more payments, your lender may seize your vehicle by hiring a repossession company to collect the car. After the car is back in the lender's possession,...

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How to Make a Payment to Honda Finance Online

Honda Finance is the program designed to help people buy and finance Honda vehicles. Managing your Honda Finance account is made easier through online accounts, where you can make payments online, view your transaction history and statements as well as update your account profile information from your own computer. Making a payment to Honda Finance online only requires the existence of a Honda Finance account. Instructions 1 Go to "Honda Finance" (See References) and click on "Register for Owner Link" to register for an online account. ...

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What If You Go Over Mileage in a Leased Car?

Car leases are written with a specific amount of miles that are to be driven each year. The lease contract limit is the total amount of miles per year, multiplied by the number of years in the lease. For example, on a 3-year lease at 12,000 miles per year, the mileage limit on the lease is 36,000 miles. If the car is driven more miles before the end of the lease, there will be an over mileage charge. Excess Mileage Charge An automobile lease...

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Refinancing a Car & Gap Insurance

When a vehicle is totaled in an accident, a car insurance policy only covers its market value. If an owner has a loan on a totaled vehicle, he may end up owing money to the bank if the market value of the car is less than the loan balance. In this case, gap insurance can save him hundreds or thousands of dollars. Gap Protection Gap protection covers the difference between the loan balance and the insurance settlement when a vehicle is damaged...

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How Can I Buy a Repossessed Car From the Bank?

Some people attempt to buy repossessed cars from banks because such vehicles often sell for less than the market value. Banks and credit unions do not like to keep repossessed vehicles on the books for very long because vehicles are depreciating assets. Additionally, financial institutions have to pay taxes and insurance for repossessed vehicles, so most banks and credit unions are eager to sell them quickly. Instructions 1 Look in your local...

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How to Determine How Much to Pay for a New Car

Whether you're concerned about your budget or just don't want to pay too much for a particular new car payment, several Internet tools can help you to make the most affordable decision. Before setting out to look at cars, you should consider your monthly budget and stick to it. You should also negotiate a vehicle's price accordingly. Learn how stick to your price range and to lower the price on the new car you choose. Instructions Budgeting 1 Go through your monthly bills. Take your monthly income after taxes and subtract your monthly bills...

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How to Buy a Used Car After Bankruptcy

Regardless of which type of bankruptcy you file, the effect on your credit report is damaging. Filing bankruptcy shows that you have problems repaying your debts, which can make lenders hesitant to loan you money after you have this show up on your credit report. If you need a vehicle after bankruptcy, it can be a challenge to buy a used car for yourself. However, it is not impossible to get a used car after bankruptcy. Other than potential financing difficulties, no other differences exist when buying a used car after a bankruptcy. Instructions...

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What to Do If You Can No Longer Afford Your Car Payments

Many things can cause someone to become delinquent on their car payments, including the loss of a job or large, unexpected bills. There are a few things you can do if you find yourself no longer able to make your car payments. Inform the Lender When you first realize that you cannot make your scheduled car payment, call your lender and explain your financial situation. The repossession process can be long and difficult, so your lender might...

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Leasing Explained

Got your eye on that new luxury car but not sure if you can afford it? Leasing may be your option. According to Smart Motors, leasing is often described as a poor man's way of driving a car he otherwise couldn't afford, as the monthly payments are lower and the commitment is shorter. However, good credit is required and a down payment may be as well; so, before you jump into a lease agreement, think about what you need in a car. Instructions Leasing...

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How to Qualfiy to Lease a Car

Leasing can be a smart option for individuals who don't want to get locked into purchasing a new vehicle. However, it's not for everyone. There are three factors that come into play when qualifying to lease a car: your credit score, your available funds, and your debt-to-income ratio. Understanding how these factors work together will help you to qualify to lease a car. Instructions 1 Research the vehicle. If you want to qualify to lease a car, you first need to research the type of car you are considering for lease. You will need information...

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How to Buy Used Tow Trucks

If you are interested in starting a repossession or towing business, you do not have to buy or lease brand-new tow trucks. Instead, you can look for used tow trucks for the business. If you just need a tow truck for personal use, you can buy a used one on your own. Tow trucks are available in different sizes and engine types, typically referred to as light duty, medium duty and heavy duty. Instructions 1 Make a list to determine what you need to use the tow trucks for and what type of truck you need. Tow trucks have different engine types...

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Information on Refinancing a Car

Just as consumers can save money by refinancing a home mortgage loan, refinancing an auto loan can also result in significant savings. The process of auto refinancing works much the same way as for a home loan, in that a new lender pays off the balance of your current loan and offers you a new loan with a lower interest rate. However, the auto refinancing process is typically less cumbersome than that for a home. Function With refinancing...

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How to Sell My Mustang Online

Selling your Mustang online opens your sale to a wide range of potential customers who may not have seen your car listed otherwise. Consider the cost of shipping and placing sale listings before you decide that you're going to sell your vehicle online. Be sure that you're only using reputable shipping services that offer some type of insurance on your vehicle, in the event that it is damaged in transit. Once you've made the sale, you'll have to ship...

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How Much Do Class B Motorhomes Cost?

The price of a Class B motor home can vary from tens of thousands of dollars to more than a hundred thousand dollars, depending on its manufacture, features and specialized components. Typically, a Class B motor home looks like a van or a camper van from the outside. It is built on either a minivan or a full-size van chassis that has been adapted to accommodate a recreational vehicle, also known as an RV. Definition A Class B motor home is...

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Does Refinancing a Car Save Money?

You may not be happy with the amount of your monthly car payment or how long you have until the loan is paid in full. One option worth considering is to refinance your remaining balance into another car loan. Depending on the situation, pursuing this strategy may or may not end up saving you money in the long run. Reducing Payments Perhaps you are having difficulty making your monthly car payment and are considering refinancing to lower the...

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How to Lower Your Car Loan Interest Rate

If your credit is bad you may have been forced to settle for a car loan with a high rate of interest. There are ways to get that rate lowered provided you qualify for a lower rate of interest. A lower interest rate means more of your payments go toward the principal balance, helping you pay off your car loan faster. You also pay less in finance charges during the term of your loan. Instructions 1 Check with several lenders to see which has...

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Car Repossession Procedures

Lenders Attempt to Collect In the first stages of a vehicle repossession, lenders tend to reach out to the borrower to work out some form of payment arrangement. The repossession procedure costs a considerable amount of time and money for lenders, so many banks are eager to avoid the process by establishing catch-up plans and extensions with their debtors. According to NoLo.com, a legal advice website, lenders may allow borrowers to miss one or two payments without formal repossession actions. The legal adviser goes on to reiterate that lenders...

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How to Qualify for a Car Loan

Qualifying for a car loan in itself isn't as hard as you might fear. Car dealerships often work with individuals with good, bad or no credit at all to help them drive away in the automobile of their choice. After all, their goal is to sell as many cars as possible each month. However, qualifying for a car loan with a good interest rate is rewarded to those who can show past responsibility with their personal finances. Instructions How to Qualify for a Car Loan 1 Find a co-signer, or better yet, establish good credit. People with no credit...

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How to Lower My Interest Rate on My Auto Loan

A car loan can create a significant financial burden for anyone, even someone with a steady income and a low amount of debt. Hefty interest is tacked on to car loans. This can become frustrating for the borrower. However, you do not have to just settle for the given interest rate assigned to your car loan. Refinancing is an avenue for you to negotiate for a lower interest rate. Instructions 1 Call the company that currently holds your car...

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Can You Change Which Bank You Use on a Car Loan If the Paperwork Has Not Gone Through?

As long as your paperwork hasn't been processed by your lender, you can switch auto loan providers. If you haven't signed contracts or received the loan amount, you shouldn't have a problem. If you have an approval from a dealership, it can easily switch your lender. A loan approval does not require you to borrow from the lender who approved you. Dealeship Financing If you're using a dealership for financing and haven't picked up your vehicle yet, you can change loan providers. Dealers handle loan contracts for lenders they use and don't...

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When Is the Sale Final When Buying a New Car?

A new car is a significant expense and one that you're likely stuck living with for a number of years. New cars offer the security of a factory warranty and the knowledge that no other driver has damaged or mistreated the vehicle. Once you sign the papers, the car is yours unless you fall into a situation that delays the sale from becoming official. Documentation The purchase contract that you sign when you buy a new car is a legally binding document. This means that you're required to comply with the terms listed, and so is the dealer....

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How to Get a Lease for a Vehicle With Bad Credit

A poor credit history hurts your chances of obtaining a vehicle loan at a low interest rate, but it can also hurt your ability to lease a car. Car dealerships run credit checks on individuals interested in leasing vehicles for the same reason they review credit scores before offering financing to buyers -- doing so helps the dealership avoid unnecessary financial risks. If your poor credit history is standing in the way of your ability to lease a...

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How to Lease an Auto Vehicle

If you want to get a new car, leasing the vehicle is one of your financing options. Leasing allows you to keep the vehicle for a set period of time. At the end of that period, you can simply return the vehicle to the car dealer, keep the vehicle and finance or pay for the balloon payment amount, or trade it in for a new lease on a new vehicle. Leasing a vehicle does typically require a down payment, which varies by car dealer. Instructions 1 Visit local car dealers to see new cars in person, and test drive those that you are interested in...

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Requirements for Leasing a Car

Leasing and financing requirements are similar, although leasing is more restrictive. Leasing banks often require increased insurance coverage and limits, gap insurance and good to excellent credit. Before pursuing a lease, determine which information you can expect to provide your dealership and bank. If you're declined for a lease, you may have other options. Contract Requirements Leasing requires you to choose a term and mileage allowance. Most leasing companies allow lessees to choose from 10,000 to 18,000 miles per year and a term...

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How Do Credit Unions Verify Employment for Auto Loan?

Credit unions may verify employment before making an auto loan if it is their standard policy or if your credit situation warrants the verification. However, employment verification is not necessarily a requirement for an auto loan. Function When applying for a loan, employment verification allows the finance company to determine if they are making a smart financial decision by lending you money. Types If your credit score meets a...

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Buying vs. Leasing: Effect on Auto Loans

When it comes to leasing vs. buying, there is no definite answer on which option is better. It depends on each individual situation and the goals a vehicle buyer pursues when making the purchase. A consumer must consider all aspects of leasing and buying: commitment terms, costs, monthly payments and depreciation of the vehicle. The Term of Commitment When considering a new vehicle, a consumer must determine how long he will keep it. If he...

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Vehicle Finance Information

Next to your home, your vehicle is one of the most expensive things you'll ever buy. Most new vehicles are priced above what buyers can afford to pay in cash, which means there's an ongoing need for vehicle financing opportunities. When you finance a vehicle, you pay more in the end, but an auto loan can also be part of responsible financial behavior. Process To finance a vehicle you need to apply for a loan through a bank or private commercial...

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How to Get Out of a Signed Contract for Buying a Car

If a dealership cannot match you up with a bank willing to finance your purchase, the dealer can void the contract you signed and ask that you return the vehicle. If you are the one who needs to get out of the purchase contract, however, your options are limited. When you sign an agreement to purchase a vehicle, your signature gives the dealership the right to pursue you for payment of the vehicle and even take legal action against you if you refuse...

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Can You Redeem Your Car After Reaffirming the Loan?

Once your lender repossesses your vehicle, you have a window of opportunity to purchase the vehicle back from your lender. Your auto loan provider may request that you pay off your loan, in addition to late payments and collection fees, or that you pay your past-due amount and additional fees. Time Frame After repossession, your lender will send you a letter stating the amount you owe to purchase your vehicle or reinstate your loan. The letter will also state the lender's intent to sell the vehicle and the date it plans to do so. Most repossessed...

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Can I Sell My Car if the Bank Is the Lien Holder?

You must follow your bank's and state's procedures for selling a car with a lien holder. Expect to satisfy your loan before the lien holder releases its portion of ownership. In some states, the lien holder also holds the car's title until the loan is satisfied, so it may take several weeks before you can transfer the title to the new owner. The Payoff Process You can use the money you get from the car sale to pay off your loan balance. But if you owe more than your car's selling price, you'll have to pay the remaining loan balance yourself...

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How to Handle a Bargaining Table in Buying a New Car

New cars cost thousands of dollars, but the price is negotiable. All new vehicles have a Manufacturers Suggested Retail Price (MSRP) in their windows listing the standard equipment and options and itemizing the costs. The total is known as the "sticker price." Ignore the MSRP, advises Philip Reed, an advice editor at the Edmunds auto research website. Consumers who do their research and who are willing to bargain with dealers can usually pay much less than that price. Instructions 1 Check availability of the new car you plan to purchase...

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Can I Co-Sign on a Car With a Bankruptcy?

Creditors view you as a high-risk borrower if you have previously filed bankruptcy because you have a track history of failing to repay your debts. Consequently, you have may trouble obtaining financing after a bankruptcy. Your inclusion as a co-signer on a loan application could cause the lender to decline the application regardless of your co-borrower's credit history. Nevertheless, a past bankruptcy does not necessarily preclude you from obtaining future credit. Co-signers Lenders use the term "co-signer" to describe people who borrow...

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What Is Required to Obtain a Title Loan?

Car title loans, sometimes known as just title loans, offer credit-challenged consumers an option for obtaining cash in an emergency. These loans often require little more than a valid car title and some identification, but consumers should exercise caution to avoid expensive debt and the possibility of having the vehicle repossessed. Car Title When a consumer takes out a title loan, the lender uses the value of the borrower's car to secure...

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