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

The Advantages of Having Trade-Ins When Leasing Cars

Depending on the value of your trade-in vehicle, you might decrease your lease down payment amount and still obtain low monthly payments. However, if your trade-in is worth more than the amount of the lease's taxes and fees, consider selling it privately to avoid financial risk if the car becomes declared a loss by your insurance company. Less Down Payment Required If you plan to pursue a lease advertisement, it likely calls for a down payment in addition to taxes and fees. This amount is often thousands of dollars. You can minimize or...

Read More

Car Repossession Laws in Virginia

The Virginia Consumer Protection Law and Title 6.2 of the Code of Virginia outline the rights consumers have against lenders performing repossessions of their vehicles. The Virginia Code requires lenders to disclose their rights in their written loan contracts before they can legally repossess their vehicles. If they fail to disclose their rights to repossess, they cannot proceed with repossession. Written Notice Effective October 1, 2010, the Virginia Assembly passed legislation requiring lenders to send borrowers a default letter before...

Read More

What Car Loan Documents Do Banks Require From an Individual Seller?

Selling your car directly to an individual buyer can bring you a higher price than if you trade it in at a car dealer. Assembling the necessary paperwork beforehand may make your car easier to sell. The transfer of ownership also will go more smoothly when you find a buyer. Lenders require certain documents from both the buyer and seller when making a car loan. Bill of Sale A bill of sale is an agreement that makes the sale contract between...

Read More

If a Car Company Closes Do I Still Have to Pay the Remaining Balance on the Car?

The process of getting a loan to buy a new car is complicated, especially when you deal with representatives from different companies including the automaker, the car dealership and one or more banks. Whatever the terms of your loan and purchase are, you'll need to continue making payments according to your purchase agreement even if one or more of these companies closes. Your Auto Loan Once you sign a loan agreement to take possession of your new car, your loan becomes a valuable commodity. The dealer receives the full purchase amount...

Read More

Is a Down Payment Required to Lease a Car?

Many lease advertisements offer low monthly payments but state that a down payment is necessary. You do not have to pay the entire specified down-payment amount, although your payment will likely increase. Most leasing banks only require you to put your first payment down, although some banks may require additional fees, such as a security deposit. Advertisements Manufacturer lease advertisements boasting low monthly payments are designed to attract buyers. Lease programs are usually based on predetermined future resale value and interest...

Read More

How Hard Is It to Get an Auto Loan From a Bank With No Credit?

If you have no credit history because you've had no loans and few --- if any --- credit cards, getting a car loan is going to be a challenge, but that doesn't mean it's impossible. The key to finding financing is taking your time, shopping around and knowing where your credit stands. You have options if your credit score is very low, so avoid the temptation to get desperate. The Credit Lowdown If your credit is below 550, it may be almost...

Read More

How to Get an Auto Loan Without Credit

Need an auto loan without credit? It is possible, and it may be easier than you think. Run through these steps, consider your options, and get an auto line without credit. Instructions 1 THINK ABOUT FAMILY AND FRIENDS FOR HELP WITH YOUR AUTO LOAN. If you have bad credit, or no credit, one of the best ways to get it is to ask a close and trusted family member. Be sure to explain your situation and give them plenty of room to say 'no thanks'...

Read More

Does Gap Insurance Replace a Totaled Vehicle?

Gap insurance does not replace a totaled vehicle. This optional insurance pays off your car loan if your insurance company's market value payout does not, which can help you acquire another loan on a vehicle. Once your loan is paid in full, you can apply for another loan to replace your car. Gap Insurance Information Gap insurance is available for purchase through dealerships, lenders or your insurance company. Some states cap the cost for gap insurance, in which case you can expect to pay less than $100 for its purchase. Otherwise, you...

Read More

How to Negotiate a Purchased Car Loan Payoff Balance

When you signed your auto loan contract, you agreed to pay your lender for the vehicle's cost, plus interest. The lender then paid the total selling price for your purchase to you or a dealership, so trying to negotiate a lower payoff balance might prove difficult. If you're able to pay your loan in full, you can make an offer to your lender for a lower payoff amount. Because of your signed contract, however, your lender doesn't have to accept your offer. Instructions 1 Organize your finances so you can easily access the funds for your loan...

Read More

Questions to Ask When Selling Cars to the Dealers

Selling a car to a dealership as part of a trade-in can be a harrowing experience. The majority of car owners place a lot of faith in online pricing estimates and market-value books and don't ask the right questions to help secure the best price for the vehicle. Asking the correct questions, along with being honest about the trade-in vehicle's condition, can go a long way to securing the best sale price. What Vehicles Are in Stock Currently? A trade-in value or sale price of a car to a dealership can depend greatly on what the dealer has...

Read More

Why Car Loan Refinancing Is a Bad Idea

Refinancing a car loan means taking out a new loan to pay off the balance of the existing loan. Some consumers do this to get a lower interest rate and decrease interest debt, while others are just trying to lower their monthly payments. While car loan refinancing can sometimes sound like a good solution, it also has the potential to be a bad idea. Value If you choose to refinance your auto loan in the late stages of your existing loan, you...

Read More

How to Calculate Automobile Payments

Most people take out a loan to cover the cost of their new vehicle. Calculating the monthly payments are important because you need to budget appropriately to make sure you can afford the car. You should also be careful that you do not get upside-down on a loan you may have trouble repaying. Upside-down refers to the situation where you owe more on your car loan than the car is worth. To calculate monthly payments, you need to know the interest rate, term and amount borrowed. Instructions 1 Determine the interest rate you will pay on your...

Read More

The Best Time to Turn in a Car on a 48 Month Lease

Depending on which bank you lease through and the equity of your vehicle, you may be able to end your lease before the end of your 48 month contract. Ending your lease early is a personal decision that doesn't work for everyone. The best time to end the lease is either before your bumper-to-bumper warranty expires or when you have an opportunity to end it without penalty charges. The End of the Term Ending your 48 month lease is less of a hassle if you wait until the end of the term. You won't incur early termination fees or penalty charges...

Read More

Early Lease Termination Options

If you want to get out of your lease contract, you may have several options available to you. Paying to terminate your lease with your bank is likely the most expensive avenue you can pursue. Explore your other lease-end options to choose one that saves you the most money. Pay to Terminate the Lease Pay to terminate your lease at any time during your contract. This lease-end option is the most expensive you can pursue. To terminate the lease contract, most banks require lessees to pay all payments due until the end of the contract in addition...

Read More

How to Turn in a Leased Vehicle Before the Term of the Lease

You have several options for returning a lease early. You might choose to terminate your contract and pay any remaining payments and a termination fee. If you plan to purchase a new car of the same make using the same leasing bank, you might find you can end your lease up to one year early without penalty. Banks differ on termination costs and new lease incentives. Discuss the termination with your bank and explore any lease termination options and costs before determining your best option. Instructions Turning in Your Leased Vehicle 1 Contact...

Read More

How to Understand Vehicle Finance

Vehicle financing is a means by which an individual may acquire a new or used vehicle without having to pay the full price upfront. Vehicle financing eases the financial pressure on the consumer by allowing the payments to be made over time. When relying on financing to acquire a new or used automobile, the buyer must make monthly loan payments that include interest and finance charges. To become familiar with the process of vehicle financing, you...

Read More

Auto Lending & Financing

When you decide to buy a car, one of the most intimidating aspects can be securing the loan for it. Understanding the basics of auto financing can help you avoid making mistakes when taking out a loan for your car. This is one of the most important parts of the car-buying process. Shopping Around When you are buying a car, it is important to shop around for the financing for your purchase. Many consumers make the mistake of thinking that the dealer financing is the best deal that they could possibly get. Instead of settling for this, you...

Read More

When Do You Need Car Gap Insurance?

Gap insurance can save you money if your car becomes a total loss and your insurance company doesn't cover your loan balance. Without gap insurance, you would have to pay the remaining balance of your loan, even though you don't have the car anymore. Purchasing the policy may not be optional; some lenders or leasing banks require it as a condition of loan approval. When You Owe More than Your Car is Worth Because gap insurance covers the balance of your loan when an insurance payoff does not, you should purchase the policy if your car loan...

Read More

What Documents Do I Need to Get a Car Loan?

Expect to provide proof of identity, income and address when you apply for a car loan. Depending on the accounts listed on your credit report, you may have to provide additional information to your lender. Have your paperwork ready before you apply for a car loan to ease the application and approval process. Proof of Income, Residence and Identity Auto loan providers require proof of identity, so bring a driver's license or other acceptable proof identification, such as a passport or military or state identification card. Many auto loan...

Read More

Can I Return the Car if I Can't Pay My Monthly Car Payments?

You can return your car if you can't make your payments -- known as voluntary repossession -- but doing so can destroy your credit rating. Your bank may be able to help you if you can't make payments. Also, you may be able to sell your vehicle instead. Consider all of your options and the effect that repossession will have on your credit before you decide to return your vehicle. Payment Deferment Option Call your bank as you soon as you know you can't make your payment. Your lender may work with you to help you keep your vehicle. As long...

Read More

Is It Better to Make Payments or Pay Cash for a Car?

Most consumers have little choice but to finance the purchase of a new vehicle. However, if you have the cash to spare and your overall financial picture is sound, it is usually better to pay cash. There are some situations where financing a vehicle purchase does offer some valuable benefits, even if you have the cash on hand. Long-Term Savings By paying cash for a new car, you avoid the finance charges that can add up over time. Depending...

Read More

Things to Remember When Selling a Used Car

When your used car has lost its favor with you, there are a few options to dispose of it. If you want to trade it in on a new car, a dealer may take it off your hands. But if you own the title free and clear and want to make more of a profit than you would at a dealership, sell your car on the used car market. Before you place your ad, do your homework to make sure you fetch the best price for your wheels. Price Competitively Research your...

Read More

Can I Get My Leased Vehicle Back After Repossession?

You may be able to get your leased vehicle back after repossession. Your bank might allow you to pay either your past due amount or the total price of the car in addition to late fees and repossession costs to get the car back. To avoid paying the full vehicle cost and extra fees, call your lender before the vehicle is repossessed. Call Your Bank Contact your bank before your car is repossessed. Your leasing bank may offer payment options or defer your payments if you're experiencing financial hardship. If it doesn't, expect the bank to...

Read More

Can You Lease Used Cars on Car Lots?

Leasing a used car could save you hundreds on your monthly bill, but it comes with extra risk and leasing a used car on a car lot usually does not give you the most cost-effective deal. Private lease swapping can result in a cheaper payment and allow you to forgo some of the fees normally charged to customers. Identification It is possible to lease a car on a car lot, but it is the dealer's choice whether to offer this or not. Leasing a car a few years after the manufacture date could drastically lower your monthly payment, as cars tend...

Read More

How to Finance a Car Without a Cosigner Showing Up on the Title

A loan contract and your state's motor vehicle paperwork are prepared separately. State motor vehicle departments don't require that a co-borrower's name appear on the vehicle's title. Your co-signer, however, may require her name on your car's title to protect her rights as the vehicle's co-owner. If you default on your loan, the co-signer may not have any rights to the vehicle if her name is not on the title. Both you and your co-signer should discuss vehicle titling and speak to your lender or dealer to submit motor vehicle paperwork in only...

Read More

How to Negotiate a Car Price If Financing

Buying a car can be intimidating if you are not prepared. According to the National Automobile Dealers Association, the average purchase price of a new car at the time of publication is $28,400. It is the second largest consumer purchase most people will make, next to a personal residence. Purchasing a car involves up to three separate transactions--the purchase, the trade-in and the financing. While each of these transactions should be handled separately...

Read More

Is It Safe to Use a Home Equity Loan to Buy a New Car?

Twenty-four percent of homeowners used a home equity loan -- line of credit secured by real estate -- in a 2006 survey by Synergistics Research Corporation. Buying a car using funds from a home equity loan might save thousands in finance charges, but the borrower could lose his car and home if he defaults. Overall, a regular auto is usually the way to go. Identification Home equity loans (HELs) are a lump sum of money usually at a fixed rate and set repayment schedule that a borrower gets by using his home as leverage. This is not the same...

Read More

Laws on Title Loan Repossession in Nevada

In exchange for the loan, a borrower uses his car title as collateral with a title loan lender. Although title loan practices are legal in many states, some have enacted consumer protection laws governing lending practices of title loan lenders and the steps lenders must take when borrowers default on their loans. Generally, upon default, a lender can repossess his collateral. In Nevada, the Nevada Revised Statutes and Nevada Code govern title lending practices. Sole Remedy Under Nevada law, a title loan lender's sole remedy when a borrower...

Read More