Auto Loans Questions

Car getting towed
Nov, 18, 2011
According to the Federal trade Commission (FTC), when you are in default, a creditor can repossess your car at any time, without notice. While most are given warnings and issued late fees when a borrower defaults on an auto loan, in most states creditors are permitted to legally repossess vehicles as soon as default occurs. If vehicle repossession occurs and the creditor decides to auction the car, borrowers are responsible for the difference in the amount of their loan and the amount the creditor received at auction.  
Detective looking through magnifying glass
Nov, 7, 2011
There are countless reasons why a borrower may miss a payment on a car loan: a lost job, a month where bills just seemed to culminate together, a medical emergency. The fact of the matter is it’s impossible to prepare for everything. The good news is auto lenders understand this. Most lenders realize that borrowers will encounter obstacles, and sometimes those obstacles lead to financial hardship. As a result, if this happens once, or on rare occasions few and far between, the repercussion is usually minor.
Hands covering a toy car
Sep, 21, 2011
Like other loan industries, auto loans have restrictions that come from federal law. These laws are aimed at protecting consumers by requiring lenders to disclose certain information about the loan before signing and provide notice of any changes down the line. For most auto loans, these laws make it so that the dealership cannot take advantage of the borrower and that the borrower knows what he or she is getting into from the beginning.
Multi-colored cards in circle with word "Choice" in middle
Sep, 9, 2011
The two types of auto loans for which you can apply are used and new, based on whether you are buying a new or used vehicle. A new car loan will most likely be easier to receive because the risk for the lender is lower. For a new car, the interest rates are often lower and the terms are often better. For a new car, the amount borrowed must usually to be paid off in three to six years, while repayment time for a used car is often between 48 and 84 months.
One hand passing keys to another person's hand
Sep, 9, 2011
In order to apply for an auto loan to finance a new vehicle, borrowers must have their basic personal information, often including their driver’s license, a recent bill with their name and address on it and current bank statements. A borrower may also be able to use his or her passport, Medicare card or titles to other vehicles or a home. To apply, a customer will also need to provide proof that he or she has a steady income so that the lender knows the person will be able to make monthly payments. Proof of auto insurance and proof of residence are also necessary information to provide.

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