Tips to Sell Your Car Fast

Whether you are looking to buy a new car, or you just need the money for something else, knowing how to sell your car fast can come in handy. When you start thinking about selling your car, questions about price and how to market your vehicle start crossing your mind, according to car sales expert Vlad Samarin writing on Samarins.com. Organize your approach and use some tips to sell your car fast.

Price Your Car Fairly

In order to sell your car fast, you need to sell it at the right price, says Vlad Samarin. If you price your car too high, then potential buyers may not take a look at your ad, or they may not see it because it falls outside the price range they are looking for. If you price it too low, then people may feel there is something wrong with your car. Use trusted guides such as the Kelly Blue Book or NADA Guides to establish the selling price of your car. Take a look at similar cars for sale in your area, with similar features and in a comparable condition, and use that information to help you come up with a fair price.

Clean It

Selling your car is like selling your home. In order to get the most value from it, you need to make a good first impression, according to the auto sales experts at LeaseGuide.com. Clean the car inside and out, or have a professional detail the car for you. Make any minor repairs that need to be done, and see about getting minor body work done as well. If the tires are bald, then consider replacing them. It will add value to your vehicle. Replace the windshield wipers, and clear out the trunk completely before you begin showing the car to buyers.

VIN Report

You can make a positive impression on prospective buyers when you have the VIN report for the vehicle available to them. The VIN number is the vehicle identification number. You can use free Internet VIN search websites to pull up the report for your vehicle. It will show any major repairs the vehicle has had, how many owners it has had, what states the car was registered in and how many miles it had at each registration. Supplying a prospective buyer with the vehicle's VIN report shows you have nothing to hide, and that kind of honesty can help you to sell your car fast.

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Refinance Car Vs. Purchase Car

Refinancing, or transferring your loan to a new bank, may benefit you financially more so than purchasing a different car. The amount of benefit depends on your current interest rate, amount you owe and any loan transfer benefits. Before deciding which avenue to pursue, you should compare several long-term cost variables.

Pricing

Call your bank to get your vehicle's loan payoff amount. Once you have it, decide if you want to spend more on a car or get one of equal value. If you don't want to pay more than you already owe, you might have to purchase a vehicle with equal or higher miles than the car you own. If you plan to downsize your current vehicle, such as from a minivan or sport utility vehicle to a compact, you might be able to get a newer vehicle with less miles.

Interest Rate and Term

One of the reasons people refinance a car loan is because of lower interest rates. If you can obtain a better interest rate for the same or a longer term than you have, you can save a substantial amount per month or over the term of your loan. New vehicles have better rates than used, so look at your overall payback costs before deciding.

Warranty

A vehicle warranty, whether provided from the factory or extended warranty purchase, can save you money during your term of ownership. Since no car is guaranteed reliable, you can face unexpected and expensive repairs at any time. Compare the warranty of a car you might purchase to the one you have now. Basic warranties start about $1,000, worth consideration if your car already has a warranty.

Vehicle History

If you've maintained your car well, you probably already know its service history and what work you need to do in the future. If you're considering a used car, take it to a mechanic for a proper inspection. However, if you know your car does need repairs, purchasing a different car may prove a good decision if a mechanic ensures its maintenance history. Repair and maintenance items can add up quickly, so compare service costs of your current car to a potential purchase before deciding which to pursue.

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North Carolina Auto Statute of Limitations on Auto Loans

North Carolina has some of the most consumer-friendly debt collection laws in the country. Auto loan contracts are classed as written contracts and have a statute of limitations of three years. As long as the statute of limitations has not run out, creditors are permitted to take action to collect unpaid auto loans. However, certain circumstances will cause the clock on the statute of limitations to reset.

Identification

An auto loan contract is a legally binding agreement between a payee and a payer. The contract identifies the names of the parties involved as well as the terms and conditions of the auto loan. Other key information included in the contract is the origination date of the loan and the date of the first scheduled payment. The clock starts ticking on an auto loan on the date of the last activity on the contract, such as a payment. To find the date your last payment was received or the discharge date of your auto loan, check your consumer credit report. Written contracts remain on your consumer credit report for up to seven years.

Time Frame

In North Carolina, the statute of limitations on written contracts is three years, which is the shortest in the country. Only five other states have a similar statute of limitations, including Mississippi, Delaware and New Hampshire. Some of the states with the highest statute of limitations in the country include Rhode Island, Missouri and West Virginia.

Considerations

According to North Carolina debt collection laws, a creditor must bring legal proceedings against a debtor before the statute of limitations expires or forfeit the right. In other words, if a creditor fails to sue a debtor for the repayment of an auto loan before the statute of limitations expires, it forfeits it's right to do so in the future.

Judgment

If a creditor sues in court for an unpaid auto loan and wins a judgment for the remaining money owed on the contract, the judgment will remain on your consumer credit report for up to 10 years. The clock starts ticking from the issue date of the judgment. To win a judgment, the creditor must provide the original signed auto loan contract and any cancelled checks to prove breach of contract.

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Does it Make Sense to Lease a Vehicle?

Leasing is an alternative to financing that restricts mileage and ownership term, but offers a lower payment than financing. Leasing is not for everyone, as some people drive too many miles per year or prefer to own their cars outright. Learn if leasing makes sense for you based on your driving habits and lease requirements.

Benefits

Leasing a vehicle allows you to drive a new vehicle every few years. Most leases run for a term of 36 or 39 months, which is usually the time the vehicle is under the manufacturer's bumper-to-bumper warranty. While you are responsible for maintaining the vehicle, you won't have to worry about expensive and unexpected repairs, as the warranty should cover any mechanical issues. You can also walk away from the lease at the end of the term, as the bank assumes future market values, so you don't have to worry about trading in or selling on your own. You pay for depreciation only, which results in a cheaper payment than financing, sometimes over $100 per month cheaper.

Restictions

Leasing is ideal for those who drive 15,000 miles per year or less. You may have the option to choose a higher mileage, but if you do, the payments are very similar to financing. At the end of your term, you must have less than the mileage you chose at the beginning of your contract, as fees for going over that mileage can prove expensive. The lessor can charge anywhere from 10 to 18 cents per mile over your allowance. You must also maintain your car and repair it so it is in good condition before returning it. You cannot modify the leased vehicle while you have it; you cannot put stickers on the body of the car or remove or replace the radio. The bank owns the vehicle you lease, which is important to keep in mind while you drive it.

Options

Most leases are advertised for up to 39 months and 15,000 miles per year. You can choose a term as low as 24 months or as high as 60 months, although doing so may not prove financially beneficial. The leases you see advertised are usually the cheapest option available, meaning any changes will raise the low, advertised payment. Advertised money down is not necessary. You must make your first payment to lease a car, but you don't have to pay taxes, fees or a down payment, although this will cause your payment to rise. Payments are cheaper than financing, and before you sign your contract, leasing offers some options and flexibility.

End of Term

You can purchase the vehicle at the end of your lease or walk away from it. Even if you have gone over your mileage or damaged the car, the amount you can buy the vehicle for at the end of the term is specified in your contract. This may prove sensible for some, especially as the risk of leasing includes lifestyle changes that cause you to go over the contracted mileage. You are not stuck paying over-mileage or excessive-wear-and-tear fees if you purchase the car. You can also use the vehicle as a down payment, as you can trade it in toward another vehicle if the buyout amount is in line with equity.

Warning

It makes sense to lease a vehicle during the time the car is under the manufacturer's bumper-to-bumper warranty; otherwise, you may find yourself shelling out a lot of cash for unexpected repairs. For example, if the DVD player breaks in the car, you are expected to fix it before you return the vehicle. If you are unsure if you can stay under 15,000 miles per year during the lease term and don't plan to buy the vehicle at the end, then leasing is probably not for you. While the lower monthly payment is attractive, fees at the end of the lease or from an adjusted lease term can cost you more than a traditional financing would, which defeats the purpose of leasing. Read the contract over fully before signing.

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What to Do When Your Car Lease Is Up

A car lease is a contract between a leasing company affiliated with a dealership and you, in which you agree to several terms and conditions, including monthly payments, in exchange for the use of a new or used car. In addition to all the decisions that normally go into buying or leasing a car, certain additional factors must be considered when a car lease is up.

Basics

Basic lease concepts include capitalized cost, residual value, lease length and the money factor. The vehicle price is the capitalized cost and the residual value is the car value at the end of the lease. The money factor multiplied by 2,400 is the lease interest rate. Most leases are closed-end leases or "walk-away" leases where your obligations end once the lease ends except for certain additional costs such as excess mileage and wear and tear.

Facts

Most lease terms limit the number of miles driven per year. According to Automotive.com, this can range from 12,000 to 15,000 miles per year. Miles over the limit are charged an excess mileage rate of about 10 to 15 cents per mile. The dealer will also inspect the vehicle for wear and tear and may charge additional fees. Measures such as washing and detailing the car, servicing it regularly and staying within the mileage limit can save additional charges when returning a vehicle at the end of a lease.

Decision

You have to decide at the end of a lease -- buy vs. lease, new vs. used. Used cars cost less, but new cars under warranty do not require major repair expenses. Leasing usually means lower monthly payments, but lease terms place restrictions. A car owner has no restrictions, although the value of the car is still affected by mileage and wear and tear. Examine your own financial situation: For example, if your credit scores are impaired for whatever reason, you may not be able to obtain lease financing, so your only option might be to buy a used car. If budgets are tight, waiting for dealer lease or purchase promotions, such as zero down or zero interest, might be the preferred option. If you are using the car for business purposes, leasing might offer certain tax advantages in terms of allowable deductions. If the residual value is low enough and the car is in good shape, buying the car at the end of the lease might represent the best value for both you and the dealer.

Considerations

Getting out of lease contracts is not easy, but it is possible. For example, Philip Reed of Edmunds.com suggests that you find a creditworthy person to assume the remainder of your lease contract. Several fee-based websites, such as LeaseTrader.com, match people looking for short-term leases with those wanting to get out of leases. You can also try to sell the car and pay off the leasing company. However, simply walking away from a lease is not a good option because it is a negative on your credit report.

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Buying a Car With No Credit Check

You can buy a car with no credit check through dealerships that offer in-house financing. These businesses are commonly referred to as Buy Here, Pay Here dealerships. A BHPH dealer makes this possible by allowing you to make payments on a car you want to buy, while in traditional finance circumstances, by paying the lender, typically a bank, that provides your loan directly. You can expect to make payments weekly or monthly, depending on the dealer's requirements.

Instructions

1

Save money for a down payment or gather funds before shopping at a BHPH lot. For most cars at BHPH dealers, you can expect to put a minimum of $1,000 down toward a vehicle. This money should be available to you before you begin car shopping.

2

Gather your last paystub, driver's license and proof of residency. While these dealers do not require a credit check, they do require that you have verifiable income and a permanent address. Electric, water, cable or cell phone bills will provide dealers with proof of residency.

3

To find a local BHPH dealership, do an Internet search for "bad credit dealers" or "buy here, pay here dealers" along with your town and state. You may have to search outside of your area, depending on where you live, so try neighboring towns or the closest large city for more results.

4

Many BHPH dealers put the required money down and monthly payments on the window of inventory cars, but you can speak to representative to find a car within your budgets. Shop until you find a car you like.

5

Agree on amount of money down and monthly payment for the car you pick, but keep in mind that BHPH lots are often non-negotiable unless you're paying cash. Set up insurance on the car you choose, which is a requirement of any dealership before you can complete a purchase. Your salesperson should set up your insurance for you, making sure you list the proper loss-payee, which is the dealership until the loan is satisfied. Proof of insurance should be faxed to the dealership.

6

Sign any paperwork required by the dealership. Read the fine print, so you are aware of your interest rate, length of payment term and penalty fees. The dealer will provide and handle your motor vehicle paperwork along with temporary registration and license plates.

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If I Face a Hardship, Can I Modify My Auto Loan?

Don't panic if you can no longer afford to pay your auto loan. You may see yourself in the midst of a financial crisis, but by keeping a level head, you can find your way out. Although it may take some time for you to rebound, consider solutions to the problem that will do the least damage to your credit.

Loan Modification

Talk to your lender if you are having trouble paying your car loan. Loan modification may be an option if you expect to have only temporary money problems. Your lender may offer various alternatives to lower your payments. One option is to allow you to skip a few payments, and then add the deferred amount to the end of the loan. Another option is for you to make lower monthly payments for a specified time. If you don't expect your finances to improve over the short term, ask your lender if you can negotiate a new payment plan. You are more likely to get a positive response if you go prepared by showing what amount of monthly payments you can afford. Talk to your lender as soon as you realize that you face a financial dilemma. Ask for help before you get behind.

Refinance

Your lender may be willing to refinance your auto loan once you explain your financial difficulty. The steps are similar to refinancing any other loan. Once a lender approves you for a new loan, you pay off the old loan. You don't have to get a loan from the same lender that financed your first loan if you can find a better deal elsewhere. Refinancing your auto loan can lower your monthly payments. Shop around for a lower interest rate than what you currently pay. If you can't get a lower rate, see about extending the number of months you will have to pay off the existing loan. Check whether your existing loan charges a prepayment penalty before paying off the loan. In some cases, your original lender may willingly extend the term of your existing loan without you having to take out a new one.

Sell the Vehicle

If you cannot refinance your auto loan or negotiate new terms with the lender, you can try to sell the vehicle. By selling it yourself, you might get more money than if you take it to a dealership. Even if you sell the car, you will still likely owe money to the bank or finance company. You may need a personal loan to cover the difference you owe and buy a cheaper car. Although you will then have this loan debt to repay, it will be less than your original car loan.

Voluntary Repossession

If your financial situation is extremely bad, and you owe a lot more money than the car is worth, your only option may be voluntary repossession. By giving the car back, you save the lender charging you the repossession fees, including the costs of towing and storage. Talk to your lender before choosing this route, because voluntarily handing over the keys will hurt your credit. If you prove your financial hardship, the lender may be sympathetic and willing to reduce the balance you still owe. It's not likely that he will forgive all of the remaining loan debt, but you might work out a deal that lowers the final payoff amount. Even after you turn in the keys, unless you get any terms you negotiate in writing, the lender can come after you for the difference between what you owe and what the car sells for at auction.

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