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.
