OK, you do not deserve a loan. Do not buy anything, do not sign anything, you are too stupid to enter into a contract.
the bank writes the loan.
Your kidding. Your not that stupid are you. It means to get the money from a bank loan.
Our friend is willing to take over our 480 month payments, we never use the car and he is starting a family. It is a new 06%26#039; car so we can%26#039;t sell it we financed it and we traded another car so we are upside down. What should we do as far as insurance cancel it? Can we make a bill of sale? He can%26#039;t put it in his name yet, but maybe in a year or two., Any advice greatly appreciated.
I agree with COWBOY BILL. DON%26#039;T DO IT. He wrecks it, YOU can get sued and loose your insurance. He stops paying, YOUR credit is ruined.
You think it%26#039;s expensive paying for the car? Wait till you have to pay and NOT have the car.
Advice: 3 choices: 1) Bite the bullet and keep and drive the car. 2) Sell the car and get a personal loan to pay the upside down part. 3 Let it get repo-ed and ruin your credit and a lawsuit from the lender to recoup the losses.
well i suggest going to a public notary, you can make a contract with the conditions that when your friend finishes paying the car you will transfer the title to him or her. and you must also think about stating that if he fails to make the payments you could cancel the agreement, because your friend is using your name(credit may get harmed). just think about the consequences.good luck
I Agree with the 1st person %26amp; another thing the insurance has to stay in your name due to the car being in your name your friend will have 2 cover that as well but if he gets in an accident they%26#039;ll come after U cause you still own the car.Good Luck
Well remember that you do not own the car the financing company does.
My suggestion is to see if your %26quot;friend%26quot; can get a loan to pay your loan off. If not it will be a tricky one. You can not change the registration until the car is paid off so it will remain in your name. Second if you cancel your insurance and something happens to the vehicle (stolen or accident) whether you are driving or not you will be held liable. A bill of sale will not work since once again you do not own it.
Advice: DO NOT DO THIS. You are on the brink of losing your friend, your money and your car. If he cannot buy it outright he has no business dragging you down with him. You will be FAR better off borrowing the difference on the payoff and selling the car. Legally, who the heck knows? If he fails to pay his insurance premiums and injures someone in the car you will likely be held responsible for ALL costs involved -- plus you will STILL have to pay for your totaled vehicle. All the forms and contracts in the world are worthless unless you actually own the car, which you do not. Again -- DON%26#039;T DO IT!
I would go to your local office supply store and see if they have some type of contract that you guys can sign. I would have it notarized. Make sure each and every month the payment is made, it is your credit that will be affected. Maybe call your local free lawyer service and ask their advice. Just like a loan to a friend, money does change friendships, so be careful, but clear and firm. I have to add something here after reading some answers. You, just like a finance company can require them to have their own insurance. You are not responsible for their accidents. I just assumed you would have proof of insurance for your vehicle. The only way you are connected to that vehicle is by loan only, call you loan company and ask exactly what you need to do this legally.
As long as the title to the car is in your name, you are completely responsible for anything anybody does while driving that car. Your friend is not on your insurance policy, so if he gets into an accident you will be totally financially responsible for all legal fees, medical costs, lawsuits, etc. If you cancel the insurance, you%26#039;re still responsible, plus you%26#039;re breaking the law because then you%26#039;re allowing YOUR car to be driven without insurance. If he breaks the law while driving your car you could very well be arrested as an accomplice. It does not matter one bit whether he%26#039;s making payments on the car; if it%26#039;s in your name, the car is legally yours and you are the one who%26#039;s going to get slammed. Do Not Do This. Either sell the car outright (with a legal bill of sale and a title transfer and all) or keep it yourself, but DO NOT do anything like what you%26#039;re talking about.
EVERYTHING YOU KNOW ABOUT BUYING A NEW CAR
financing
okay , i am an international student studying here in the US , and i was thinking of getting a car but i don%26#039;t like most of the cars that are used around here and i cant seem to buy a car with what i have stashed ! , my question is, can i as a non-American , with no social NO , 2 get financing on a car ( paying a down payment and then paying monthly for a car )
any information about buying new cars and all the things related to that would be totally awesome !
car insurance
............................. etc
with no ss number it will be impossible to buy from a dealership of any sorts, ur best bet would be to look in the local paper to buy a car from someone. dealerships wont give a chance with no ss number. sorry
you could prob get financing from a private person if they were willing, but you will need a soc to get financing from a major lender ie dealership. i dont know how it works for ins, but you will need to show proof of insurance to get the title and tags.
no no and no buy a camel.
This is the situation. I have a financed car two years into the finance. The car is worth more than the remaining balance by about $6,000. I would like to trade it for a cheaper car and get the difference as well as lower my monthly payments. How this should be done? Is it possible? Do car dealers help in this situation? Please be as specific as you can. Thanks so much for your help!
Will the dealers %26quot;help%26quot; in this case - that depends on the dealer... The dealers definitely can do this kind of thing, but you have to find the dealer that will pay you as close to the trade in value that you are expecting as possible. Not all dealers will give you a good price on the trade in. I am currently looking to trade in my vehicle and I know. Do not assume that any dealer will help you... you have to help yourself to get the best deal.
1) Find out what your car is worth
2) Know exactly which car you want to buy and price range. (Kbb.com, edmunds.com) can you help you with these two steps. For step 2 you can refer to carreview.com to get user opinions on various cars.
3) It is not always the best thing to sell the car outside and go and buy a different car because when you trade in a car you save sales tax on the price of the trade-in. Let%26#039;s say your car is worth $10,000 and your new car is worth $6,000. In this case you will not need to pay sales tax on the new car at all since the value of the new car is less than your trade in value. If the new car is worth $12k then you will pay sales tax on the $2k. So regardless of how you do it you have to figure this in to see which is the better deal. If you have a car that is in high demand, you may be able to get a good price outside and thus net out better if you sell outside and buy a new one outside.
4) Shop around for the car you like and negotiate the price. Bring up the trade information at the very end.
5) If you are going to finance the new car it is better to arrange your financing outside before you walk into the dealership that way you can avoid all the scams that they pull with monthly payments, rates etc.
6) You may also want to look into trading the car in at CarMax.
Good luck!
Im in the EXACT same situation!
I havent gone as far as going to the dealership to see what they can do but i have been told by friends in the car business that dealerships are not interested in this too much. They generally are not interested in HELPING YOU so much as they are all about making money. You are %26quot;upside down%26quot;- means you owe more than what it is worth.....I suggest keep making payments and try to refinance if it is too expensive for you. I am trying to remedy my situation by paying a little extra each month.
Hope this helped a little!
My brother was able to trade in a used SUV for a new minivan and walk out with a check for the difference.
The first step is to find the car that you want before you discuss anything else with the dealer. Once everything is set for the purchase for the car you want, you say, %26quot;Oh yeah, I have this other car ...%26quot; and explain the situation. If you reveal everything all at once, you won%26#039;t be able to negotiate as low a price for the car you want.
Another way to do it is to sell your current car to a private party, use the profits to pay off the loan, and use the rest as a down payment on a new car.
If your car is worth that much more than you owe on it, sell it outright, spend a few dollars cleaning it up. The dealership will certainly %26quot;help%26quot; you, but they are in business to make money, put your vehicle in the paper and get what you can for it, The dealership will either farm your vehicle out or just give you the least amount they can talk you into taking, and then try to make you feel like they are doing you a favor.
i Believe you need to be more specif about your situation. I assume you are in a situation like this you owe 6000 on a vehicle that is Worth 12000. That being the case and if you want a cheeper car with a cheeper payment or no payment at all. Research what you are looking for go to Nada.com or kelly blue book and know what cars are worth exactly then you can goto dealer lots and check on the cars available and know there value. Also be sure to check the trade in value of your vehicle most likely this is all they will give you for your vehicle at best. KNOW what you want when you go in and do not let the salesman talk you into anything else know what you are willing to deal for and do not budge not even a dollar either they will make the deal or they won;t but be willing to walk away. Be upfront and rude if necessary. I am a ex car salesman I know a lot of the tricks and they will try to to get you to buy newer to extend the payment etc. Know what you want to pay know what you want for payment and how long you want to make payments.. And most of all good luck.
Dealers want to sell new cars but they also want to make money. Basically, you want to trade in one car and buy another. There are two transaction. The question is how do you get the most for your trade and get the best price for your new car with the least aggravation.
Here is what I would do.
1. Go to KBB.com and figure out a fair or target price for your existing car.
2. Go to the dealer and negotiate the best possible purchase price for your new car.
3. Only after the purchase price is agreed upon, see how much you will get for your trade if you give it to the dealer. If it is not close to what your target price is, sell your existing car privately.
What is the reasoning behind a banks%26#039; decision to charge higher interest rates for used cars vs. new cars? It%26#039;s a secure loan anyways. I%26#039;ve always thought that a higher interest rate protects the bank in case u have bad credit because the risk is higher, which I understand totally... but what does a car%26#039;s age or mileage have to do with interest rates? The risk is protected by the loan value.
Actually, they are the same. The promotional deals where you buy a new car for a token or no interest are always in the alternative of taking a cash rebate instead. Forfeiting the cash rebate in favor of a lower interest rate is simply a pre-payment, or buy down, of the real interest rate. The only way to be sure of what is going on is to compare the terms with a financial calculator such as an HP-12C.
of this month. Surely not? We arranged with the dealership to be picking the car up around the middle of the month but to me that looks like they have been paid already and we should have just taken the car on the 1st. We decided to wait as there was no rush. So whats the deal with this? is this normal?
Your first direct debit payment should come out exactly a month after you applied for finance and signed the contract. that%26#039;s what always happens when i take out finance on cars.
Call the financing dept and confirm your suspicions and go get your new car!
You signed the Documents and I can bet that you will see that it says payments are to begin on a certain date. You chose not to pick up the vehicle, whereas if it had been a delay caused by the Dealer then there would have been some form of compensation and probably the payments starting on a different date. Understand that the space a vehicle occupies on a dealership%26#039;s lot costs MONEY. I doubt you have any choice but to make your first payment on the 30th.....go pick up your car!
no it is not normal and it is against the law to ask for payment until you have the goods. contact finance company explain the position. the first payment becomes due 28 days after delivery or the agreed date you have said you will pay the direct debit whichever comes first.
at some point in the future the question may arise date of purchase and in the circumstances you state confusion may arise sort it before you take delivery of the car
Your loan and your car are two separate things so whether or not you have your car won%26#039;t affect your loan in any way. Get your car! :)
Sorry that you had to get finance.
Do you know that until the last payment is made, you can%26#039;t actually call it %26quot;your%26quot; car? It belongs to the finance company. Also, as long as the car has outstanding finance on it, you aren%26#039;t actually allowed to sell it on until paid for? I fell into that trap a few years ago.
You should have taken out a loan instead to pay it out right. Good luck with the payments - what kind of car is it?
what does it mean when it saids finance this car
It simply means to take out a loan, which will pay for the vehicle in full. They will receive the title for your vehicle and will hold it while you make payments to the lender until you repay the specified amount. You can email me through Yahoo Answers if you have any questions.
Borrowing the money to buy it instead of paying cash.
Your question is too ambiguos.
A finance car refers to a vehicle that the lot is going to finance %26quot;in house%26quot; or %26quot;Buy here Pay Here%26quot;. That means it is easier to get because there are no bank guidelines, you just need money down and some references. Comparatively the opposite of this is a %26quot;Cash Car%26quot; meaning that if you are driving it home today then you need to pay cash. Hope this helps.
As a verb, %26quot;to finance%26quot; is to provide funds for business or for an individual%26#039;s large purchases (car, home, etc.).
Just pay cash or don%26#039;t buy. It is always cheaper that way and doesn%26#039;t infringe on your freedom.
I%26#039;m looking to finance an awesome 2003 BMW with 111k miles anyone know of a bank that will finance a car w/thatmuch? most i%26#039;ve seen go to 100k only
A few lenders will financed vehicles over 100,000 miles. (Out of roughly 30 lenders that my dealership uses, only 4 or 5 will finance over 100,000 miles.)
I sold a vehicle Saturday with 101,000 and it was financed. The highest miles I have ever seen sold on a finance contract was 199,000.
There are not many lenders in the auto business these days who finance that many miles, but there are a few (such as Gateway One and Bayview). I recommend asking your local dealer.
Most of the lenders who work with the higher miles will not lend directly to you, you will probably have to go through a dealership.
Also, not all lenders are licensed in all states, so which lender will vary by what state you live in.
You might also ask your local bank or credit union. A lot of local banks will not worry about the mileage, as long as you are only financing %26quot;loan value%26quot; (usually 70-80% of the car%26#039;s retail value) or less.
Pay cash for it.
if your credit is good capitol one will finance any car 1997 or newer with any miles so go online and apply (finance manager at a dealership 11 years)
I%26#039;m insuring two cars and my rate is high. I would like to know, Is it possible to tell my insurance company that my car is no longer finance (even if it still is) so i can switch to a liability coverage and lower my rate. Is my insurance company going contact my finance about detail...
Sure, you can lie about it. Your insurance company will send a notice to the leinholder, that the leinholder is being deleted from your policy at your request. They have to do that. Then you can delete your coverage.
But then the lender can and will (eventually) put %26quot;forced placement%26quot; coverage on your car, that ONLY covers them, and it costs 10X what regular collision %26amp; comp costs, AND, they add it retroactively, and take your car payments and apply it to the insurance FIRST, and increase your payment amount. So it%26#039;s CHEAPER to carry it on your policy.
You will have to produce a clean title proving that the loan is paid off before your insurance company will make this change, and you can%26#039;t get a clean title without the loan being paid off. So you can tell them whatever you want but they won%26#039;t change the policy till you can provide proof of satisfying the loan.
I%26#039;m not an attorney, nor am i suggesting you do this, but i have %26quot;heard%26quot; that sometimes you can call and tell your ins co, that you won%26#039;t be driving one of the vehicles, claiming that it will be stored away. So ask them for a %26quot;storage%26quot; insurance quote...to cover just the bare basics of insurance needed for the vehicle in storage.
this storage insurance rate saves you about 85-95% of normal rates.
WARNING...if you drive this %26quot;stored%26quot; vehicle and you get into an accident..you are in big trouble mister.
so way out the possibilities and risks to see if it%26#039;s worthwhile. I heard of several people doing this %26quot;temporarily%26quot; with succes with financed cars,till they were able to get caught up on thier bills.
good luck.
If you have high rates, try another insurance company. The rates charged don%26#039;t have that much to do with what the insurance company charges, other than for carrying collosion/comprehensive. If you have confidence in your driving habits and your neighborhood, you can always increase your deductable and save that way.
What you propose is fraud, and could lead you to be in deep doo-doo if there is an accident.
sounds like a terrible idea to me.
i am sorry your rate is high, perhaps you should shop around?
San, Yahoo!Answers is a great resource but sometimes the answer is unclear. Can you get away with it or not?
Maybe I can help. There is a very little known feature in Yahoo!Answers. Instead of vague answers to your question you can be provided a sneak peak at your next question -
Q. %26quot;Last December I took a chance and deleted collision coverage on a car that I had financed. Collision premiums are pretty high so I thought why not save some money, the finance company will never know that I don%26#039;t have collision coverage.
Last week when I was changing a CD I looked down for just a second and didn%26#039;t see that the car in front of me had stopped. To make a long story short my car was totaled. I%26#039;m fine thanks, no injuries.
But now I must replace that car but I can%26#039;t afford to buy another one. It%26#039;s a real mess the finance company is suing me for immediate payment because they no longer have collateral for their loan. I can%26#039;t pay them, how can I come up with (insert your loan amount here) and buy another car. What can I do? Your advice is appreciated.%26quot;
Pretty neat new feature, huh? Feel free to use your second question whenever you need to.
I%26#039;ve financed a car for 72 months, I took out a loan for almost 32,000 but I can%26#039;t afford it anymore. I realized it was a mistake because now I need to move out of my house and can%26#039;t pay rent and my car payments. I wanted to know if I could change it for a cheaper car to bring my monthy payments down to about $300. Do I have to return it to the same dealer where I bought it? They%26#039;ve given me a hard time so I wanted to take it somewhere else. I know this would probably affect my credit but at this point I don%26#039;t even care. I%26#039;m just too stressed and need to find a solution ASAP. Does anyone know about this?
You may owe more than it is worth so you would need to pay for the trade. Look at what you can sell it for and how much you owe. If you still owe most of the 32K and it is only worth 30K you would need to pay 2K to get someone to take it.
The dealer hasn%26#039;t got anything to do with you any more the lender is owed the money but they don%26#039;t sell cars or want your car. The will repo it if you don%26#039;t keep up the payments and sell it for whatever they can get then sue you for the rest. They might garnish your pay. The lender doesn%26#039;t have a car to sell you so you would have to try to find someone that will give you credit on a cheap car.
The problem is that because of depreciation you won%26#039;t be able to get any where near the money you paid for a trade in no matter how few miles you%26#039;ve put on the car. You will end up having to roll the negative equity into a new loan. To offset this you will have to really trade down, maybe even to an used car.
The best way out of this mess is to sell the car. Pay off the rest of the loan and then buy a used car with cash. Even if all you can get is a clunker for a few hundred dollars, it%26#039;s still better than drowning in car loan debt. When you want a better car, save up some more money and repeat the process.
CAN U CHANGE YOUR FINANCED CAR INTO SOMEONE ELSE NAME WITH BAD CREDIT IN CALIFORNIA?
Not unless the holder of the financed note agrees and usually they will not
What happens if you dont want to have a car anymore that is on finance do you have to keep it.
yes you have to keep it, unless you can...
A. trade it in a dealership who will pay it off then put you into something else.
B. sell it privately, in which you will inadvertently payoff the loan(call the lender and find out you payoff balance)
C. total loss the car in an accident or theft, and hope you have gap insurance.
D bad option! give the car to someone you REALLY TRUST to make the payments (the loan is still in your name and will make it hard to purchase another till that loan is satisfied)
E. payoff the loan yourself.
F.last option, give the car back to the lender and have a repo on your credit report. (bad idea)
those are pretty much your options,
good luck!
Sell it and pay it off or trade it in and have the dealer pay it off as part of the new loan package.
you dont have to keep it..just find another person who wants the car and they can take over the payments.
You can sell it, but you must contact the finance company first and agree a settlement figure before you sell otherwise you are illegally selliing a vehicle which you don%26#039;t have good title to. Your buyer won;t either.
You owe the bank/finance company money on that vehicle, called a note. If you sell the car you have to pay off the note. The frequent problem is that you owe more than the car is worth; this is called being upside-down. It usually takes about 60% of the note%26#039;s term to reach the break-even point (general rule of thumb, not exactly).
Put this way: say you bought a car for 20,000 and had 3,000 cash. You borrowed 17,000 to complete the purchase. After some amount of time of making montlhly payments you still owe 12,000 on the note. The car%26#039;s market value is 10,000. That 2,000 difference is the upside-down amount and if you sell the car you have to give the financing entity that 12,000 meaning 2,000 out of your pocket.
If the car%26#039;s market value is more than what%26#039;s on the note you make a profit. In the above example if the car%26#039;s market value is 14,000, you pay off the 12,000 note and pocket 2,000.
But however it goes, you have to pay off the note.
You signed a contract to make payments over time. Whatever you do, you have to pay off the loan.
You have three options:
Keep the car until it is paid for. Then it is yours to do with as you please.
Sell or trade the car before it is paid for. This option requires you (or the dealer) to send a check for the full amount needed to pay off the car. You can sell a financed car at any time, but you must pay off the lien as part of the transaction in order to do so.
Repossesion is your third option. I do not recommend this option to anyone for any reason. This will severely damage your credit.
My son bought a car at a buy here pay here place. They required him to have liability coverage. Two days after purchasing the vehicle, he found the transmission needed repaired. They told him if he fixed it himself, they would put his payments off for a couple weeks. Once he got it fixed, the first day he got to drive it, he wrecked and totaled it. Now, since they only required him to have liability coverage, are they partially responsible.? I thought ALL cars that were financed had to be carried with full coverage by law. What are his options. He told them to come get it three weeks ago, but here it till sits. I looked at the contract, and it only specified liability coverage.?????
And some of the buy here pay here places don%26#039;t require any insurance coverage at all, as long as they get paid, they don%26#039;t care. Did you expect them to hold his hand and tell him what to do?
No, they are not responsible that your son wrecked his car. It was his choice to not have anything more than liability coverage. Obviously he can%26#039;t return the car to them wrecked, and they will still want to be paid as he agreed, so his only choice will be to fix it out of pocket since his insurance won%26#039;t cover the loss, and continue to make payment to the car lot until it%26#039;s paid for.
It looks more like an in-house sale than a financed deal. I would recommend him to get an extended warranty, wait a month then have the transmission fixed and file a claim with the warranty company (not very legal), otherwise you might need to speak with the office manager and get this issue resolved or call the state troopers. They sold him a DAMAGED vehicle and they knew it.
They may have only required liability insurance, but it was up to him to know better. He will still be responsible for the payments on the car even though he may no longer be able to drive the car.
bought a car nearly a year ago (ireland) thinking about changing it now (cause i saw a nice shiny one that i like!) but don%26#039;t know how i will fair out with finance arrangment will i have to pay lump sum? can i use current car as deposit? any help much appreciated
Chances are you are upside down on your loan. (you owe more than the car is worth). Now a days you finance for 84 months and people want to trade it in at 12 months. The math does not work. You will have to keep it for at least half the term, because no dealer will want to buy a car from you for $12000 that they can go to the auto auction and buy for $5000. Chances are you will have to put substantial down to make the deal work for the dealer.
You%26#039;ll have to pay your existing loan because at the moment the car doesn%26#039;t belong to you but to the finance company. Once you have bought the car you can then use it in part exchange. However, your finance company may transfer the balance of your loan onto your new loan for the new car.
It seems like they would have more of a motive to finance someone a car since they%26#039;d make even more money, so are they more willing to finance to someone with not so great credit (a score of 680)?
There is a difference between better and more willing. They are often more willing because they sell the loans. They also normally charge a higher rate of interest. If you cannot qualify through a bank or credit union, I would recommend that you try to have someone cosign with you.
Please realize that cosigner is risking their credit on your ability and responsibility in repaying the debt. Do not ask this if you are not going to make the payments on time and as scheduled.
If a cosigner is unavailable and you have to get a high interest loan, I suggest getting a lower priced car and making the payments to establish better credit before buying the car of your dreams.
Often the key to building or rebuilding a credit rating is to delay gratification.
very good question -- but it boils down to cash flow -- they need the steady stream of a complete price to replace the car you buy and unless they have a very high turnover they do not have the cash on hand -- banks are loaning out other folks money for a fee!!!
Sometimes the dealer will get you financed even if you have trouble on your own. And while 680 isn%26#039;t a wonderful score, it isn%26#039;t awful either, so if you can show you likely can and will make the payments, they might get you financed.
Car dealers DON%26#039;T finance cars. They just do the paperwork for the actual lender. Most auto manufacturers have finance divisions. Many loans processed by dealers are made by local banks.
for him-my son told them he was able to pay 200 a month-they offered him a car on sunday and he signed for it-now hes realised the payments are far more than 200 pound and theres no way he can afford it-the firm has said tough you cant change your mind now(he hasnt taken the car yet) can he do anything? please help if u know x
This transaction sounds as though it is caught by the Consumer Credit Act 1974. Under those provisions the agreement has to be signed on %26quot;appropriate Trade Premises%26quot;. If the agreement was signed at your home it does not meet the criterion and thus it is cancellable - within a few days only. Act NOW and write/ phone the finance company - not the dealer - and see a solicitor.
i think that if he has signed a finance agreement that you have a period of time where you can change your mind,think its 7 days.get in touch with the finance company and tell them that you do not want the car,also check the small print on the contract as it may state on there about cancelling it.hope all goes well
he could not pick the car up and stop all direct debits from being taken at the end of the day they are in breach of contract he can change his mind as he has 14 days so he is well in his rights failing that i would seek some advice from a solicitor
There is no cooling off period for finance signed on trade premises if it is HP In the key information section it states %26quot;You have no right to cancel this agreement under the Consumer Credit Act 1974, the timeshare act 1992 or the financial services distnace marketing regulations 2004.. He can however use a little known rule (Not on all HP agreements)which states that he has checked the goods over before signing. If he didnt and agree that he was happy he could possibly tell them to cancel it (Finance Company) I speak as having used these documents since 1979. If he fails to collect the car they could sue for loss of profit if it was a cash only deal however he can cancel the finance if you are hard enough on the dealer, mention linked agreements to him. Plus if the figures are on the sales contract are not the same as the fin. document he has a very strong case and I suggest he nips to Trading Standards.
Get off to Citizens Advice and Trading Standards pronto!
In my new job, I will get a company car. Hence, I want to sell my currnet car which is still financed. Naturally, the title is in the posession of the bank. How does one go about selling such a car, geeting the title and making sure the buyer gets the car for his/her money?
A correction to a previous answer:
Most lenders do keep the title to the vehicle. When you purchase the car, you are given the Title or CofO to the vehicle, and the License Branch sends the title to the Lender.
When the car is paid off, the lender signs off on the lien release on the title, and many include a written lien release.
When you sell the car, you must pay the lender, then they will typically send you the title, unless you direct them to send the title somewhere else.
You can give the purchases a Limited Power of Attorney that serves as your signature on the title.
When I sold my car (with a lien) it was no big deal at all. When we found a buyer I contacted my financer to get a pay-off amount (which was valid for 10 days). I then worked with the seller%26#039;s bank to get them to send a check in the payoff amount to the financer (and give me a check for the difference). I signed the title over at the seller%26#039;s bank.
No bank nor finance company (assuming you in the USA) keeps the title until the vehicle is paid for. They merely add their name as legal owner, and the title is sent to you. When it%26#039;s paid off, they send you a lien release, and you take that and the title to have a clear title issued.
The easiest way to sell the vehicle will be to pay if off, get clear title, and then you can deliver the car and title to the buyer at the point of sale.
You might get someone willing to go to the finance company and pay the balance, get the release and bring it to you, and give you the rest of the money and wait for the new title to come, but most would not.
First step of course is find the title. You have to have it somewhere. If not, you will have to apply for a duplicate one.
I financed a car about 4 months ago and now the car keeps breaking on me. I bought it used and purchased the best extended warranty the dealer offered.
So a few weeks ago the car breaks and I take it back to the dealer for service. But no dealer will touch the thing because it has %26quot;aftermarket%26quot; parts installed. I was not informed when I purchased the car and the warranty that the car had these %26quot;aftermarket%26quot; parts. So now I%26#039;m stuck with a VERY unreliable car and a completley useless extended warranty.
Please help!
I would like to get rid of this thing and get another car.
Go into the dealer where you purchased the car and demand that they either honor the warranty they sold you or refund you the money immediately. If they refuse to do either, threaten to walk around the showroom warning every potential customer not to buy a car from the crooks. Then let them know that you will be reporting them to the better business bureau, the local chamber of commerce, the warranty company, and (if they sell new cars) to the manufacturer(s) whose product they sell. Let them know that you have a letter ready to go to the editor of the local paper about your experience (have a copy with you and make sure the dealership looks BAD). Ask them if it is worth the negative publicity to NOT fix your car. It is a knee jerk reaction to want to get rid of the car for someting else - you liked it when you bought it and chances are you would love it if it was fixed right. MAKE the dealer honor what they have sold you, even if you have to take them to small claims court. You are in the right - they are in the wrong. the only way for them to win is to intimidate you into backing down. Don%26#039;t let them. And don%26#039;t EVER do business with them again.
And I would write a detailed letter to the warranty company right now, whether the dealer does what is right or not. The warranty company will not want IT%26#039;S reputation tarnished by an unethical dealer.
good luck
SELL IT OR TRADE IT THE WAY IT IS, YOU WILL PROBABLY BE SOMEWHAT UPSIDE DOWN ON THE PAYMENTS.
AS FOR THE WARRANTY THERE IS NOTHING THAT YOU CAN DO BECAUSE IT IS UNDERSTOOD THAT ANY AND ALL AFTERMARKET PARTS WILL NOT BE COVERED BY ANY EXTENDED WARRANTY.
I WORK WITH PEOPLE EVERYDAY OF THE WEEK WITH EXTENDED WARRANTIES AND I HAVE NEVER SEEN ONE THAT WILL COVER AFTERMARKET ITEMS.
I financed a car a few months back. (3) I want to get rid of it. It was a big mistake that I finally came to terms with. Currently owe 7k on it KBB has it worth about 11K or so. I tried the dealer but all they want is to pay off the car. Any ideas on how to this I was considering ebay I have tried craiglist and cars.com. Please help
You%26#039;re best bet is to put a for sale sign in the window and sell it yourself. You%26#039;re more likely to get what you want for the car.
Car dealers will just rip you off so they can turn your car for a profit.
you can%26#039;t %26quot;sell%26quot; a car that is financed...because it%26#039;s not yours yet to sell. you don%26#039;t have a title or anything. the only thing you could do is find somebody to buy the car or take over financing and have it put in their name....but then you lose waht you already have in the car
I would just let the dealer buy the car. 2 Things happen here. 1) No trying to sell it your self and hopefully pay the bank off and worry about getting the title signed off and such. 2) You can walk away from the whole deal and youre done. You not losing money here so let the dealer buy it from you.
Lets say iam about to buy a 2007 Kia rio for about $10,000
with 7% intrest. So now the car is mine and i make payments every month. now lets say i have a 72 month term, which is alot of years that ill be paying for that car, lets just say in 3 years i decided to get rid of this car. how does this work? can i sell the car half way through and just match the retail price, or do i need to match with the price the car will be in 72 months with 7% intrest, or can i just give then or trade the car in?
The odds are your Kia will most likely be %26quot;upside down.%26quot; They have terrible re-sale values, however that doesn%26#039;t mean they aren%26#039;t good cars. If you plan on getting rid of the car in 3 years, take a shorter term loan. Simple interest loans are similar to mortgages, so if you take a 6 year loan, your payments would be $170.49 per month and after 3 years, your balance would be $5,521.57. Your interest paid to that date would be $1,659.21, for a total of $6,137.64 out of pocket. The car would probably be worth $4,000 - $3,500 as compared to current values v/s purchase price.
A 60 month payment would be $198.01 and after 3 years, your balance would only be $4,422.62 after paying $1,551.05 in interest, for a total of $7,128.39 out of pocket. Your re-sale value would still be tha same and although you would have paid about $990.72 more throughout the 3 years, your loan balance would be $1,098.95 less. Coming up with $27 per month is probably alot easier than to roll the negative into your next vehicle purchase. In addition, anything you roll into the next loan will be subject to interest all over again, so that $1,098.95 extra that you roll will end up being even more once it%26#039;s included in your next auto loan. I hope this helps you!
Here is a copy of a 72 month amortization schedule:
http://www.bankrate.com/brm/auto-loan-ca...
Here is a 60 month:
http://www.bankrate.com/brm/auto-loan-ca...
If you decide to sell in 3 years, then you will need to get AT LEAST what you owe on the loan. Intrest on these types of loans are very decieving. you think 7% of the 10,000 well it accrues on the balance periodically. so in the long run on a 72 month loan with 7% interest you are actually going to be paying somewhere in the neighborhood of $15,000. Being as Kia%26#039;s loose their value VERY quickly, you will wind up owing more than the car is worth, and have difficulty selling it for the remaining cost of what you owe. You will still have roughly $7,500 left to pay for the car after 3 years, and being as the price RIGHT NOW is $10,000 that would mean it can only depreciate $2,500. In 3 years that car will PROBABLY be valued somewhere in the $3,000 range. Financing is a cruel world where the banks get richer and unfortunatley we get poorer.
mention this to ur car finance Company they will make the contract they way u want and give u the terms in case u sell in halfway.
Bottom line is don%26#039;t buy a Kia.
If you%26#039;re going to finance $10,000, find a clean, lower mile used car that has already lost most of it%26#039;s value, but will retain what resale value it has. Your best bets are:
Acura TL 1999+
Honda Accord (V-6) 1998+
http://www.autotrader.com/fyc/vdp.jsp?ca...
Lexus ES300 1997+
http://www.autotrader.com/fyc/vdp.jsp?ca...
Toyota Camry (V-6) 1997+
http://www.autotrader.com/fyc/vdp.jsp?ca...
http://www.autotrader.com/fyc/vdp.jsp?ca...
These are great cars and people know that. Lots of people looking for a used car have families, and they want a safe, comfortable, reliable 4-door sedan.
I%26#039;m kinda new living in the US, i got a 2007 car purchased financed through my credit union.
Now i need to sell the car but i need to know what%26#039;s the procedure for selling the car and transferring ownership to the new owner ? and would a cashier%26#039;s check be the best way to get guaranteed payment from the buyer ? of course i understand that i need to payoff my loan to my credit union first
yes on the cashiers check...no on the payoff. you do not have to payoff the vehicle PRIOR to selling the car. you just have to pay it off prior to transferring the title so that you can get the title and sign off on it. the new owner will take your signed title to the DMV and they will take care of the title transfer. DO NOT SIGN THE TITLE UNTIL YOU RECEIVE YOUR CHECK
Easiest way would be call the credit union and tell them what you want to do. Set up an appointment. You and the buyer meet at the credit union and let them handle everything.
What I mean by that I still owe money for my Finance car; I wanna know is there is any possible way can I get rid of my finance car and trade it in for New Lease Car?
You can do it, but you%26#039;re going to pay a small fortune. The leasing dealer will take your remaining balance on your current car and fold it into the lease payments on the new car. So you%26#039;ll be paying principal on the old balance, plus interest, plus the leasing fee. In addition, they%26#039;ll give you rock bottom trade in price for the car. Bottom line, you%26#039;re going to get screwed doing it that way.
You%26#039;re better off going to a bank and seeing if they will lend you the money to pay off the existing loan, while extending the loan period to lower your monthly payments.
There%26#039;s no free lunch.
Rick
I%26#039;m a retired ASE Master/L-1 Technician. I still keep current with the latest automotive technology. Visit my blog for cool articles and TSB%26#039;s: http://free-auto-repair-advice.blogspot....
Yes, you can trade in your car anytime you want to. It may not be a smart decision financially but you can do whatever you want.
The salesman said the bank would not finance the car because my mother lived out of town and it is my firs car. anyone ever hear of this. he said as far as they should be concerned we %26quot;live in the same house%26quot;
your salesman sucks, to be honest with you, if the finance manager was creative or as we in the car bus call it strong, he would have no problem getting the loan for you, go to a different dealer and tell them you are looking for a strong finance manager that has a good relationship with ford motor credit corp, ford does not care where your co signor lives but they cant use their credit as the primary, that shouldn%26#039;t be any big deal, he should get the loan and the only problem is you wouldn%26#039;t qualify for the best financing possible, tell them your going to take you bus elsewhere and go on you way.
its really unfortunate that dealers are so weak as to not get a finance for a kid and his mom.
all this is under assumption that your mom has good credit.
if that is the case there are other banks that will do the loan like wells Fargo, citifinancial, capitol one. and if the dealers in your area cant do at least that then take your self to a credit union with your mom, open a savings account and get the loan through them.
good luck out there, if you were in Connecticut i would tell you to come see me and i would easily get you financed through ford motor credit
As a general rule the Salesguy will tell you the easiest answer. Usually in a marginal credit deal the bank will want a Co-signer, but the do not have to reside in the same household. Ask the saleman if the application was sent to the bank, or if the info you are getting is just the finance guy%26#039;s educated guess. The dealership is not allowed to deny your credit application, the are legally obligated to send it to the bank, even if your credit is horrible. That or they have to send you a notice explaining why they denied your application. Dealerships usually don%26#039;t want to hassle with that.
If the bank declined you, they will send you whats called an %26quot;adverse action notice%26quot; that will explain why they denied you credit. It will also offer you the opportunity to recieve a copy of the credit report that they viewed.
The main thing to remember is that if you hear something funny coming from a salesman%26#039;s mouth, there%26#039;s probably something funny going on. Drop the deal and go find a salesguy that will level with you.
Banks do what ever they want. You don%26#039;t think there there to serve you,do you?
yes becuase the bank looks at it as if they have to repo the vehichle it may be out of their area due to the primary on the loan being out of their area. I am not saying it is the right way to look at it but as a finance manager of a car dealership once i know this is the way they look at it your mom might look at financing it through her local bank
You should go to the bank involved and speek to the loans manager , not a teller , but the manager himself. Get him to explain the loan conditions to you.
In some cases a co-signer that lives in another state where the bank does not do business is a problem.
You should be able to get a pre-approval amount from the bank that lets you have a good idea of financing when you are looking at cars.
Dont trust anything a car salesman tells you , and read the sales contract fully before signing. Its the written contract that will be enforced , not any stories the salesman tells you. Get all promises in writing.
I gather that you are having your mother co-sign the loan. Your saleman is right - it shouldn%26#039;t matter where she lives as long as the bank is chartered to do work in that state. Is she in another state? It may be they are not authorized there. . Or it may be a case of the %26#039;Golden Rule%26quot; - He who has the gold, makes the rules. They may not want to make the loan.
Usually car dealers have a list of funding and not just one bank. Normally they will have a favorite bank that gives them a benefit like a loan origination fee. Has the loan been submitted to other banks and funding sources? If not, the salesman is most likely trying to get you to put up more downpayment. Is this a reputable dealer? Some car dealerships only have one bank because the other don%26#039;t want to deal with them.
Any chance I can swap my car that is on finance for another one that is slightly older?How.
Take out a loan (that is not related to the car) or mortgage for the cash amount needed to pay off the car and it%26#039;s yours. You can now do what you want with it.
Another option is to have a word with the company that financed the car and see if they are willing to transfer the loan to the other car.
Also read the small print in your finance contract. It will most likely tell you exactly what you can and can%26#039;t do.
No because until you pay off the finance you do now own the car...so how can you swap what you don%26#039;t own.
It is possible but will be costly. The dealer selling the car you wish to buy will sort it out for you if it is worth his while. Realistically, the car you have at the minute would need to be worth as much or more than what you still owe on it. Say it is worth 鎷?000 and you owe 鎷?500, he could take the car off you and clear the finance and then sell it for a profit, leaving you to finance the new car from scratch. Ive done it
The only legal way to do it is to refinance the vehicle, but there is a way you can do it and cover yourself in the process.
Have them pay you direct, this way you can make sure the payments reach your lender on time every month.
When the loan is paid off, just sign the title and give it to them.
You also must make sure that the vehicle is insured with full coverage insurance for the rest of the loan with you listed on the policy.
You%26#039;d just be renting them your car as long as your name is on everything.
Before you do ANYTHING else, listen to this. Scroll down and click %26quot;Listen to Dave%26quot;. JUST LISTEN.
http://www.daveramsey.com/tdrs/index.cfm...
This one audio clip of his CHANGED MY LIFE when I heard it.
Listen to this man for free, on the radio or online. This is like getting financial wisdom from Bill Gates except this guy has a national radio show.
Auto loans are not normally assumable - it could only happen with the lender%26#039;s approval. Chances are they will want your loan paid off and a new loan executed for the other party.
It would be best to sell the car outright because if you do not transfer title and just lease the car, the insurance has to be kept under your name. In the event the driver has an accident, they will go after you since the insurance is in your name. Better to be sale than sorry.
only reason to lease a car is the tax write off for business expenses
otherwise - they are making a ton of money on us !
Absolutely not!
Depends if the car is new or not? If its new it will be subsadised by the manafacturer so you can take either of the two and still have 8 to 10% margin to play with at the dealership..See what interest your bank will pay you on the cash back because if the car is new base rates that the dealership can achieve from thier lenders is as low as 2% flat rate in some cases.. so for example if you can get 4.5% for your savings you will be 2.5% up..the sum for working out the interest payable on car finance (not a bank loan) is dependent on the flat rate..for example if you get a flat rate of 2% and are borrowing 鎷?000 over 2 years the total payable will be 4% on the amounr borrowed as its 2% flat rate per year..鎷?000 x 4% + amount = 鎷?080 divide by the term (24 mths) = payment of 鎷?6.66.. Work out what you will be paying back and that will show you the saving 0% will give then ask for a discount as there margin is usually 8 to 10% add that to your cashback and choose the greater amount.. example:
CASHBACK DEAL
Car 鎷?0000
Discount 5% = 鎷?00
Casback 鎷?000
Saving = 鎷?500
0% DEAL
Car 鎷?0000
NORMAL FINANCE @ 3% FLAT RATE OVER 4 YEARS
Intrest Cost 鎷?200 payments @ 鎷?33.33
0% = 鎷?08.33 Per Month saving 鎷?200
5% Discount from dealership 鎷?00
Total saving on 0% is 鎷?700
So in this case 0% is the better
I know its long winded but i spent 18 years working for dealerships and watching people get conned.. i now run my own used car business and pride my self in being up front.. Hope This HelpsYou
Good Luck
It depends what the prevailing (and future) interest rates are going to be in your country.
From that you can work out how much the interest or the cash back will be worth, and compare them directly.
i think either way is good. 0% financing will allow you to accumulate no interest for an amount of time and cash back will allow you to take that cash back and subtract it from what the car costs. that is normally what the dealers do.
Zero percent!! Why pay high interest or any interest at all?? You%26#039;ll save more than getting cash back.
CASH BACK
If you read the fine print and it is truly 0% for the life of the contract then yes, it would save you far beyond what is offered as cash back. However, this is probably not the case. The 0% is most likely time limited and will probably equal to the cash back offer. So read the fine print and ask the dealer exactly how much the 0% will save you (he know exactly what it is) then ask yourself whether you want to actually see the money or not.
well back in 2006 i financed a car and really had bad credit so i had to pay the high intrest rates. Presently i have very good credit and i was wondering about trading my car(still being financed and owe like 15K$.) The thing is i am paying alot for this car every month where i can get into something new and pay about the same if i were to roll over the balance.
It kind of depends on how much a dealer will give you. If you are looking at an $12000 used car, and they only give you $10000 for your trade, you are looking at financing $17k on a $12k car. Good luck finding someone to finance that for you. You%26#039;d have to find just the right car that a dealer has a very low price on. Something you can %26quot;hide%26quot; your negative equity from your present car in. If you find something that seems like a good deal, check out the NADA or Kelly Blue Book, if you can add your neg equity to the dealer price and not go over the estimated value, then you should be good.
Does that make sense?
You might try to find %26#039;07s that a dealer never sold, they usually give really good deals on those.
I have a 2007 Toyota Camry. I live in Sunnyvale, CA and the car is financed at $25,000. The payments are too high and I was wondering if the dealership will let me trade the car in for a cheaper car?? What do you think?
This will be possible, but you will probably end up owing more on the Camry than they will give you on a trade in. For example, you owe $25,000 on the Camry, but they may only give you $20,000 for it. If you the buy another car for $10,000 they will add that $5000 difference to it so you will owe $15000 on a $10000 car. As soon as you drive that car off the lot it will only be worth $8000 so you will be really upside down on it. It is best to pay for a car until it is worth more than you owe, but if you have to get rid of it then do it. Anything is better than defaulting on your loan or going hungry to pay it.
here is the thing... i%26#039;m in deep .... my uncle got me a car it%26#039;s a 2003 saab convertible. He financed it for 19.000. As of today the balance on the car it%26#039;s 17,000. How can i get rid of it... I want a new car... This car has 120,000 miles on bord. In the last 3 months i put another 3000 dollars on it because it brakes down. What can i do. He does not want to take it back. He dosen%26#039;t want to pay for it. He says the car is mine and thats that. please help ASAP.
I%26#039;ve been in the car business for a while now, selling Toyota%26#039;s. About half the customers that walk into our showroom have the same problem you do. Your main problem is your %26#039;03 has twice as much miles on it as it should compared to an average driver. The average is 10,000 to 12,000 a year. Another thing all consumers need to consider when purchasing a new vehicle is the resale value. Toyota and Honda are the top 2 value holding vehicles. That being said the Toyota you walk into the dealership and buy, will only be worth half of it%26#039;s original price in 3 yrs. even though you bought a car that leads the resale market. I%26#039;m sorry to tell you this but your Saab is only worth $8,000 to a dealer and maybe $12,000 to a private party. The only way to get out of this is with good credit and at least a $4,000 down payment. Don%26#039;t let the numbers scare you, trust me you%26#039;ll spend it either way on the service the Saab%26#039;s gonna need. Start researching Edmunds.com and KBB.com 4 your car%26#039;s trade in value. Research the vehicle you want to buy. and make sure you buy a car you like cuz you%26#039;re probably gonna be in it for 6-7 years.
Why would he finance a car with that many miles on it. Especially for the price he paid for it. What you can do is trade it in but chances are you are upside down. If the car is in your name then you are stuck with it unless you get someone to take over your payments. If you are to trade it in they will add the balance to your new car. This will cause you to be in a bigger whole.
Never shop when you are hungry, Never buy a car when you NEED one.
Play your cards like this: Tell them you have your own financing but you would like to know what interest rate they can give you. They may be able to beat it. They may not.
I would play them as they play us give as little info as possible but as much as they need to know. you let them tell you what they can do for you and see if its better than the financing you have if not then you start negotiating with your financing they May bargain.
The dealers love to play the payment game, don%26#039;t fall for it. You are a price buyer and need to negociate on price only. If they want to talk financing tell them that is not going to happen until you agree on a price (or trade difference figure).
If you are satisfied with the rate and terms you are pre-approved for, or wouldn%26#039;t want to finance elsewhere...tell them you are going through your source, but wait until the price is agreed upon first.
Many dealers will take a small profit on a car figuring that they will make up for it on the financing, so don%26#039;t tip your hand too fast.
Good luck
just tell them you only want to talk about the selling price of the car not what your payment is, tell them you will pay the invoice pice and have them show you the factory invoice, they probably wont at 1st but if you tell them you wont buy without it they should, although if your buying an import car you will likely have more trouble getting it at invoice. then once you have your selling price established tell them about your financing and have them see if they can beat the rate your getting on your own. also if you have a trade shop it around at different dealers, and MAKE SHURE they know that you will only pay invoice price for the car when they make an offer on your trade, if you walk into a dealer and tell them someone else offerd you 4k for yuor car, the second dealer will always offer you more but they will charge you more for the car, so just establish the fact that your only going to pay invoice price for the new car.
I was pre-approved on a new Car Loan and then they came back and said I was un-approved. Is that right? Anyone in car financing that can answer my question???
Was it a preapproval you received in the mail? If so, it means that they did some initial investigation and based on your FICO score and a few other factors they thought you%26#039;d be approved. Once they looked at your other factors and the credit bureau itself they changed their minds. They are within their rights to do just that and the back of the letter you received probably said so in the small print.
Who told you? The dealership? Go to Ford Credit . com or Toyota Financial .com and get preapproved. Then, don%26#039;t let these buzzards work on you.
Credit is a tricky game. Sorry that happened to you. The pre-approval was based on a very minimal criteria (you could simply just have an account with them) and it%26#039;s the hook many companies use to try to bring in business. Once they look at your full credit info, reviewed your credit report (they don%26#039;t look at your credit report to pre-qualify you) and then determined that they are unable to offer you credit at this time. It%26#039;s a gimmick many big companies use.
Auto finance is what I do for a living and this is one of those things that I hate because of the bad feelings it generates towards car dealers.
What most likely happened is some dealer in your area paid a marketing firm to mail out pre-approval letters based on information purchased from the credit bureaus.
After you went in and they actually looked at your credit they submitted you to some lenders and found out that they could not get you approved.
This is all explained in the fine print on the bottom of the letter but 99 out of 100 people do not read it.
If you want to be removed from this mailing list go to www.dmaconsumers.org and opt out. This will remove you from the national mailing list for 5-years.
They must have given you a reason why they changed their mind. I guess you forgot to mention that?
I have bad credit history
I need a car for work
What are recommendations on how or where to obtain car financing ?
thank you
first off Never use a buy here pay here. Most of them do not report to the credit bureau. They can charge you any price they want and the states max in finance charges. First buy a copy of your credit score on-line and take it to a loan officer (at your bank) and have them review it. Regardless If it is as bad as you think, he may have some answers for you. Your next step is to get pre approved before you car shop. You can do this by going to lenders like American General, or look them up in the yellow pages. Stay away from on line approvals because they tend to shop your credit around and end up lowering your credit score. Most secondary lenders will approve you if you have a good story as to why your credit is bad. I just didn%26#039;t want to pay wont work but lose of a job or divorce might be understandable. finally you will pay a high interest rate (16-33%) so try and get a short term loan(12-24mts) and you may have to settle on something you dont care for in the short term (a kia rio instead of a toyota 4runner)
Save up a large down Payment..
Also clear up some of your Debt%26#039;s and get right with your creditors. That would up your credit score.
I suggest that you find a bad looking beater that runs good and drive that while you are saving for a better car.
are there any places around you that do their financing? - %26quot;buy here - pay here%26quot; - you pay weekly or bi-weekly - larger down payment need and used cars only - but hey-. My first car loan 2 yrs after bankruptcy (a one year old car) took a little doing for the dealer to find financing for me, but he did - pretty high rate though - I only had $500 to put down on it - talk to a dealer and see what they say
Auto finance is what I do for a living and you need to find a dealer that advertises Special Finance and go talk to the Manager, they can help you.
Hertz sells used cars and they will work with you if you have bad credit. And they also let you make payments on your down payment to them.
Its true that bad credit can follow you around
no one seems to tell you all they know
ask for your credit history from equifax or other major firms
they have to give it to you - even if they not
go down the list
see if you can repay any creditors or come to terms with them
try to live in one residence for at 2 years, try to keep your job for that time period
deal with one bank branch
try to meet the manager
take out small loans - even $ 250
They will charge you the minimum fee and be thrilled at the profit
Try to get a charge card. Often they will give you one that you put a pool of cash in first
Run a small balance at first
Always always pay it off
The key is consistency to build back your credit record
I was in your situation and got help and a lot of the ideas above from Second Chance Financial
www.secondchancefinance.ca
I do not know if they are in your area as well
I suppot united. Get a used car that runs ok.
Pay cash for a used car, and buy privately. If you can, try and straighten out credit problems by paying off debts or settling them. Try paying debts on time from now on. If you have a really good job, you can sometimes buy a new car from a dealer at a very high interest rate. However, this may get you in more trouble.
GM is offering 0% financing, and I was wondering what type of credit score you have to have to qualify.
In this credit market you will need a 690 or better for these 0% plans.
700 should do it.................
Don%26#039;t obsess about the score. There are other factors, such as down payment and what is actually in your history. In the case of cars, there is another variable: how badly does the dealer want to sell the car? There is no free financing in cards. Somebody, probably the dealer, is buying down the rate with a one time payment. That money would be available to you as a discount if you were paying cash or financing elsewhere, without hurting the dealer%26#039;s profit.
For starter they say %26quot; you don%26#039;t understand cap reduction cost%26quot;
Second -you don%26#039;t know car financing.
Third- How much payment do you want a month, don%26#039;t worry about the price etc.
To me,Cap reduction cost is something only idiots will pay to reduce payment.
What makes them think they have MBA or MS degree in Finance and the buyers are uneducated low lives.
Don%26#039;t they know that we all are not that naive.
The thing I hate most is %26quot;Can I run your credit before you take a test drive?%26quot;
because most are and they know it.
Because they are Sales people, and the very point of their job is to sell. They wont always give you good advice, because well...it may hinder a potential sale.
They want to make money like any other business. Sometimes lying or misleading can achieve this.
For example, if everyone knew that the Ubuntu Operating System was FREE, I think most people would use that instead of Windows.
For some reason, we believe Windows is better because we pay for it.
I do use Windows however :)
I know what you mean, however...I have been in sales ( not car )all my life, and I make a pretty good living at it, however in car sales there is such a huge turnover, that most car sales people are uneducated like you said! I would say the average level is 12Th grade or less! with less then a year experience! You need a car, and you want the best price! You did the research...Internet of course! bring you%26#039;re facts!
Good luck out there! don%26#039;t let them get you down!
That depends on where you go. %26quot;Most%26quot; people don%26#039;t know what a cap cost reduction is. And to say that %26quot; only idiots will pay to reduce a payment%26quot; makes you naive. There is nothing wrong with paying down your payment. In many situations it%26#039;s not advisable, but for some, it%26#039;s the right thing to do.
When it comes to a lease, if you concentrate on bargaining the cost of the car, the joke is on you. Although the Cap cost is very important in determining how much you%26#039;ll pay a month, it%26#039;s hardly the most important thing. Many other factors determine lease prices.
If a dealer asks you to run your credit before you drive, a couple of things could have happened. Maybe you insinuated that your credit was shaky, or you met the wrong sales guy, or dealers policy. In my dealership, i ask nobody about there credit until they bring it up. There no need to, if you come in my store, you typically know if you have the credit. If this happens to you, go to another dealership.
Unfortunatley, some saleman are forced into acting the way they do, by the quality of buyers they see on a regular basis, you may be savvy with financing and leasing, but the truth of the matter is, most people are not.
the reason is the prospective buyers, are sometimes idiots as well, remember we are all different, our needs and requirements all vary, so salesman are doing there best to sell you a car but while doing that, finding out all about you the buyer as well, because alot of buyers lie and dont give the salesman the true or the full story about the situation. or the type of car they require.
There are idiots on both sides -- sales and customers.
By the way, it%26#039;s %26quot;cap cost reduction%26quot; not %26quot;cap reduction cost%26quot; See this:
http://www.leaseguide.com/Glossary/capit...
.
Good sales people don%26#039;t treat buyers like they%26#039;re idiots. But I can tell you that the buyers automatically assume that I%26#039;m one. Like the response of one person on here saying that most sales people don%26#039;t have an education higher then the 12th grade. Well I sell cars and I graduated from high school when I was 16 and went to college and graduated.
The reason we may ask someone what kind of payment they want is because we get people all the time that think that they can buy one of our $60,000.00 vehicles and get a $350.00 a month payment, with no money down. Well obviously we%26#039;re on the wrong car. And why should I waste my time on someone that thinks that it is feasible to do that? I work on commission, so until you buy a car from me I%26#039;m working for free.
I never run credit until there is an intent to buy. Meaning the customer has driven the vehicle, wants to purchase the vehicle, and we have discussed payments.
I treat my clients with the respect that they deserve. I think that I deserve some as well.
I absolutely agree with you on that one! The worst is when you KNOW what you are looking for and they are trying to up sell you. %26quot;What if we can get you in that one for the same price%26quot; You can%26#039;t and I don%26#039;t want to go any higher.
The last car I bought we walked in and I knew about how much i could spend (within a couple hundred bucks) based on my credit, special APR promotions, loan term, etc. I walked on to the lot looking at a 2 year old certified Saab. They go into how they could get me a new one for the same price, blah blah blah. By the time we were done, I bought the 2 year old certified Saab for my deal.
If there are car sales people out there, please relax, you are not going to get a whole lot of people to let themselves get rushed!
Most buyers have no idea what a car will actually cost, what thier trade in value is actually worth, or what thier payments will be on the vehicle they selected even if they get everything they want. Car dealers do this everyday, therefore we%26#039;re very familiar with how to achieve what you want or on the otherhand, not waste time with people with unrealistic expectations. Most buyers do not leave with the deal they had in mind, or even the car that they originally wanted. Buyers should take some time and figure out aproximate payments using a calculator online. Also, figuring out that you%26#039;re not going to qualify for a car loan with 0 down and a 550 credit score would be helpful and also understanding that not everyone will qualify at the best possible terms, despite what they say on T.V. Be reasonable and they will too is the point. Most salespeople are in the business to help you get what you want. Keep in mind they work for free unless you buy something.
has anybody used or thinking of using them? then read this before you do.........
i bought a zafira from the donnington branch near derby in april, since then it has been in the garage 5 times,and its always a cowboy outfit they send it to, 3 were in the first month with the same problem,they say it has a 142 point check... they don%26#039;t check the cars, in the first month i had to have new breaks and in the end it went to the main dealer, once the car leaves there site they don%26#039;t want to know, please please never use them, they will rip you off,
They are just preying on the folk who can%26#039;t really afford the service. I spent years trying tae get myself oot the debt that I managed tae get intae when I took oot a personal loan with them. They are just like the Provident, chucking cash at ye but ye will spend the next millennium digging yourself oot!!!!
Eny thing to do with welcome finance is a risk they are like loan sharks,I%26#039;d never have dealings with them :(
You obvioulsy didn%26#039;t see the Watchdog programme about them then???
Wouldn%26#039;t touch a pedal cycle from these clowns
ive had friends got cars from them cars are rubbish and so are the finance charges
COWBOYS.....run away-save your money!
Ta 4 the advice hun, hope i never come across them....hope you got your car sorted tho x
i have seen i car i like 鎷?995 19.9apr.looking for o per cent can you help,thanks in advance.silver fox
0 % deals are never what they seem.
The way it works is. If a car is worth for example 鎷?000 and the firm wants to sell it at 0%, they will whack the windscreen price up to about 鎷?000 to cover the interest you would have had to pay if the car was being sold on regular finance for 鎷?000. Geddit? You pay the interest without actually paying the interest if you get my meaning.
Look at it this way. At the end of the day, no car or lending firm is going to say, %26#039;right, theres a loan for 鎷?000, just pay it back when you can%26#039; They would never make any profit that way. A lender makes its money by charging interest on what it lends you
Save up for it and then GAIN interest on your savings.
Otherwise, use a credit card with 0% interest but be sensible and pay it off before the 0% period ends.
Not all garages accept credit card as payment though.
not sure about Europe, but here in the US i know someone who bought a new Ford Truck F150 for zero percent. it was a sale they were doing. he got a great deal. hope that helps... although i don%26#039;t even think the Ford F-150 trucks are street legal in your country because they are so big.
I am sorry to say that there is no such thing as a free lunch when it comes to car sales.
If a zero interest deal is offered ask your-self who is paying the interest, because there is ALWAYS a charge for borrowing money.
What is being done is that the interest charges are being disguised in the purchase price, putting it another way, if you find a car at a really good price, say a private sale or on eBay, there is no way in the world you will get a commercial interest free loan on it.
If your credit rating is good and you can get an %26#039;interest free six months%26#039; on a new card and you pay it off I suppose you could do it that way, but that is nothing to do with the car, only your credit rating.
It is also wise to remember that often the profit margin on a car (particularly a new car) is tiny, but the commission the seller earns on the HP agreement makes the deal worthwhile.
This means that often a %26#039;cash%26#039; deal is a lot less attractive to the vendor (the garage) than a finance deal.
THE NEXT DAY THEY WERE STILL WAITING FOR APPROVAL.NOW I ALREADY HAVE THE VAN AND HAVE HAD IT FOR 5 DAYS NOW.STILL WAITING FOR APROVAL THOUGH.MY QUESTION IS WHAT IF THERE IS NO APPROVAL????WHAT IF THEY SOLD MY TRADE IN ALREADY???CAN THEY REQUEST TO HAVE THE VAN BACK???
My hunch is that they checked your credit rating (something they can do in 10 minutes), saw your score was okay, and therefore the approval is just a formality.
They may, however, surprise you with a lousy interest rate. Financing through a dealership is often at a really bad rate.
They would not have let you have the van if your credit rating (or score) was bad.
sounds fishy to me
if they sold your trade, there would be a great legal batle in the works
if they ask you for more cash or a different rate now, go to your better business bureu, hope it all works out
yes this happend to my friend before and they tryed to taket he car back but she worked out a payment plan with them that was ok for her so she got to keep the car
You need to talk with the manager and find out what%26#039;s going on. If you don%26#039;t get the van and they sold your trade-in then you get to sue them. Sure they can request to have the van back. Hopefully you have insurance on it. Usually you don%26#039;t get the keys unless all the paperwork is signed. Where you dealt sounds like a fly-by-nite. Did you check to see (online) to see who the former owner was? Could there be a problem in getting a title or a clear title and that%26#039;s what%26#039;s holding up your financing? Why not go to the police and tell them your situation and ask them to scan their records to see if the van was stolen.
OK,
I work in this Field. They will call you back and pull a fast one on you. they will say ok your monthly rate is this and seek a high interest rate on you. so they will tell you a payment for a 5 term before while they could sneak into a 6 year. These people tend to be lazy and just toss it at you. You can always refinance right away, i would at least take it into a banker to look at it
Yes, in the documents you signed, it does state that they must find financing for the vehicle. If they are having a hard time, you may be a high credit risk . you may also want to shop around and see if you can get financing if you really want this vehicle.
go to the dealership and see the manager
demand to know what is going on
Read the contract. Generally if the dealer cannot obtain financing, they will either restructure the deal, meaning allow more for your trade, get more cash down from you, or reduce the cash selling price in an attempt to get a lender to approve the loan application. If they fail to get a lender to approve your application, they will call you and take the car back from you.
Again, check the documents you signed. There will be a finance caveat somewhere. You may also be liable for the mileage that you put on the car while the dealer is trying to complete the financing. READ YOUR CONTRACT AND THE OTHER DOCUMENTS THAT YOU SIGNED.
If the dealer has already sold your trade, which is possible, but unlikely. Then the dealer will find a way to get your financing approved. The dealer may have to %26quot;sign recourse%26quot; on the contract which means if you default, the dealer agrees to pay the lender the remaining balance.
Call the finance manager and insist on being told the status of your loan. Check to see if you%26#039;re going to be charged mileage...it adds up fast.
Good luck!
They let you take the car without signing a purchase agreement or loan papers?
%26quot;Car?....What car?%26quot;
the dealership is required to give you back your trade in.
Sounds like some %26#039;ish to me.
Why come you even thought it was cool to leave the car lot without a signed PURCHASE AGREEMENT in hand AND they have YOUR ASSET -- the trade-in?
Do they have your car title to the trade-in too?
Good gawd!
What legal document do you have in hand that codifies the terms and condition of this van you allegedly purchased?
I had to close out 3 accts: 2 cr cards 1 LOC, and I just learned that one of my chks from cr card was ret%26#039;d for insufficient cash. I want to sign up for a Credit Union in order to re-finance my car loan to a smaller APR (8.99% now). Should I wait until my credit history calms down before I join Credit Union? Or just not apply for a car loan until next yr when my credit settles a bit? I did sign up for a debt management solution which downsized my monthly pmt on the 3 closed accts.
wait at least a month after the cards close so that your credit report is updated with the information. Also, it depends on where you are at with the current car loan. Most refi%26#039;s will only finance you upto 100% of the value of the car %26lt;www.kbb.com to find value%26gt; if you owe more than that, youll have to pay your current lender the difference before you can do the refi. Also, because you were on a debt management program, it will be looked at negatively, and will take several years for it to fall off, so you may qualify, but not for the best rate.
good luck! Report It
I doubt you would qualify for any better offers anytime soon. I definitely wouldn%26#039;t apply now. Remember that your credit reporting history and credit score will take a month or two to catch up with you. My point is if you think these changes you made will improve your score, hang in there for a bit!
anything that is on your credit report now will remain there for 7 years, so unless you going to wait 8 years you just as well apply for that loan anytime it%26#039;s convenient for you to do so.
You should investigate if you are in chexs systems, because that%26#039;ll blow it. Just go to any bank or call chexs systems, and yes your credit has to be good for the credit union to take over the loan with the car loan company, in most cases they won%26#039;t refinance it, they may give you a personal loan if the car is old or with high milage.
