Auto Loans Questions

handshake in front of a car
Dec, 21, 2012
There are several steps that borrowers must go through in order to get pre-qualified for a car loan. Getting pre-qualified for a car loan is wise since it allows buyers to step onto a dealership with a set maximum price they can spend, knowing exactly how much they are qualified for. In contrast to this, car buyers that go to dealerships without financing can end up paying more money since they are vulnerable to the high pressure sales tactics of dealers and the financing divisions of dealerships. Here are the steps to getting pre-qualified for a car loan: Step 1:
Car keys deposit money
Dec, 20, 2012
All auto loans do not require a down payment, but this allowance has not always been the standard. In the past, car dealerships and lending companies usually required at least a down payment in the 20 percent range for a new car. This was due to the fact that new cars instantly depreciate in value once they are driven off the dealership lot. Paying a down payment helps to balance this value decrease. It also protects the lending company if they have to repossess the vehicle. If repossession occurs on a vehicle with a down payment, lenders will lose less money in the deal.
red car on dollars
Dec, 10, 2012
Interest padding is the act of unethically increasing the interest rate on auto loans beyond what the borrower is really qualified for. Lenders “pad” interest rates because a higher interest rate leads to more money owed to them. In all forms of financing, higher interest rates mean more profit for lenders. For example, an auto loan for $35,000 with 6 percent interest will certainly be more profitable for a lender than one of the same amount but with 4 percent interest. Interest padding can be found in most every form of financing but is especially prevalent in vehicle financing.
a truck sinking into money
Dec, 5, 2012
Yes, even people with bad credit can refinance car loans. However, as with most cases of bad credit, borrowers should understand they will likely not receive the best interest rate. However, refinancing can still be worth pursuing since it can reduce interest rates as well as change the duration of the car financing.
totaled car wreck
Nov, 28, 2012
In short, yes, the debt must be repaid. Borrowers need to remember that the now totaled car was collateral in an auto title loan agreement. In auto title loan agreements, borrowers get cash in exchange for letting their car act as collateral. As part of the auto title loan agreements, most lenders require borrowers to have liability insurance. This insurance serves to protect both lenders and borrowers in the event that a vehicle is damaged.
dollars over half a clock
Nov, 15, 2012
There are a few steps that borrowers must follow in order to defer payments on their car loans. Deferments allow borrowers to hold off on payments for a temporary period of time without facing penalties such as costly fees. Car loan deferments can be especially useful for borrowers that need to prioritize their money for another payment.
pen signing a contract
Nov, 13, 2012
It is relatively straightforward to transfer an auto loan and vehicle to a friend or buyer. Either the new owner will arrange for financing to pay off the existing loan or the current loan will be modified upon transfer to a new owner. Current owners and borrowers should first contact their auto loan lender and inform them of their desire to sell the vehicle. It is important to inform the lender that a new owner is standing by to purchase the vehicle. The lender should be given the new potential owner’s contact information as well as any information relevant to financial ownership of the vehicle.
car made of money
Nov, 2, 2012
Yes, borrowers can obtain a title loan through a bank or other financial institutions. Typically, people in need of quick cash but with limited assets will seek out a loan in exchange for their car’s official title. The process for borrowing title loans from a bank is very similar to borrowing vehicle loans.
A vehicle's pink slip
Nov, 1, 2012
The amount received on a car title loan depends on the car offered as collateral. It can range from several hundred dollars to several thousand dollars. A title loan is considered a secured loan which means that its value is based upon collateral. Since a lender receives a car as collateral, there is no background or credit check necessary. Anyone with a car in their name can get a car title loan.
stop sign with blue sky
Oct, 23, 2012
Borrowers can attempt to stop their cars from being repossessed if they default on a vehicle loan. Recent car loan news stories have discussed the grueling trend of repossessions amid high unemployment, however they rarely shed light on how to halt repossession proceedings. Borrowers shouldn’t feel ashamed over falling behind on payments and facing repossession. Proactively trying to stop repossessions can save borrowers from losing their vehicle.