You should start off treating the engine very gently i.e. gentle revs and never more than 1/4 throttle. Over time you gradually use more revs and more throttle until you eventually end up using the full range of the engine. It is important to eventually end up using all the power and rev range to wear harden various parts. It is also important that you do not keep to a single continuous speed or gear but vary your speed quite a bit during this time (a long highway journey is NOT a good break in if you just sit in top gear at a continuous speed). This is because things are still hardening up and you can wear a groove into them.
Modern engines break in relatively quickly, often 1000km, older designs took longer as the tolerances were not as precise. The first oil change is often a lot sooner than later ones as during break in rough edges from manufacturing will be worn off and end up in the oil.
Here is more advice from various contributors:
Yes, but the money you still owe (negative equity) must still be paid. Example: you owe $10k on a car and the dealer will only offer you $8k in trade - the $2k difference must be paid. In some cases, your lender or dealer financing will allow you to roll the negative equity into the new payment as long as the loan to value (LTV) does not exceed a certain percentage. Therefore, it is difficult to get into a less expensive vehicle because of the LTV threshold. Dealer advertisements claiming to pay off your trade are simply doing as described above, and this can be dangerous for those with eyes bigger than their wallets.
Yes, your car will be sold and if the price they sell it for is less than the balance left on the loan, plus the repossession fees, you will be responsible for that difference and will have to pay it.
Examples of computation methods include the following:
The most common credit card balance calculation method credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."
Usually the most advantageous method for card holders, the balance is determined by subtracting payments or credits received during the current billing period from the amount left at the end of the previous billing period. Purchases made during the billing period aren't included.
Using this method, the cardholder has until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance.
The previous balance is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.
Issuers sometimes use various methods to calculate your credit card balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
If you don't understand how your finance charge is calculated, ask your card issuer. An explanation must also appear on your billing statements.
No. It is nothing more than a myth that the "Buyer's Remorse" or "Cooling Off Period", laws apply to the purchase of an vehicle of any kind, new or used. Those type laws do not apply to vehicle purchases in any state. Once you purchase a vehicle you own it. Also once you purchase a new vehicle it becomes a used vehicle the instant you drive it off the lot and is worth far less than before. Those type laws apply to unsolicited sales as in a door to door salesman or phone sales. The only way you could return a vehicle is if the selling dealer had such an offer as GM has done in the past, or if the selling dealer agreed to allow you to return the vehicle. Otherwise you are stuck with your decision to buy the vehicle.
In the next section of this answer are a lot of responses about returning cars because you don't like the car, don't like the deal, whatever. The QUESTION, however, was about returning a lemon. Every state has a Lemon Law, which requires the dealer to take the car back if it can't be fixed in a "reasonable" number of attempts. Check http://www.lemonlawamerica.com for your state's lemon law. In North Carolina, for instance, the car officially becomes a lemon if it can't be fixed in four attempts, or if it's been in the shop for more than 20 days.
So the answer is, no after two attempts, yes after three (many states say three) or four attempts to fix it.Returning a Car to a DealerHere are opinions and answers from FAQ Farmers:
As the vehicle owner, you can sell the car whenever you choose. You are liable for the car loan. If you are selling the vehicle for less than the loan (especially when you are upside-down on the loan - you owe more than the car is worth), you need to pay the difference to your lender.
When trading the car in to a dealership (in effect selling it to the dealer) the dealer should handle the loan payoff details. You need to inform both your lender and your state DMV that the vehicle is being sold. The lender will release the lien against the vehicle after they receive payment from the dealer.
Selling to another individual is harder. It is best to work with your lender and find out how they prefer to handle the transaction. You will need to supply the buyer with a clear title, but you can't get a clear title until you lender releases the lien on the title, which they won't do until they receive payment. Many lenders have a standard way of handling individual to individual vehicle sales.
For example, for a car with a loan greater than the sale price of the vehicle:
In Michigan, go to either a Bank or a Credit Union and get approved for a loan around the difference in price you are looking at. Then, when you find a buyer and agree on a price, you will go to the bank or credit union, and get the loan. You and the buyer must go to whoever holds the lien on your car, and you both pay your amounts owed on the car. The lien holder will sign the title releasing the lien, and you are free to take the title in to the DMV. It varies from state to state, but this is how it is done in Michigan.
You can't really trade it without staying in the hole. You can go to a car lot with about 8000.00 dollars and trade it but if your buying a new car that's 12995.00 and you trade a car you owe 9995.00 on they will just add the amount you owe minus what they give you for the car, which is usually nothing and the rest will be put on your new loan. You will owe 3 times as much as you did. The only way to not have the car is to let it go back, but agin that's a repo... I recently had to do that and just bought a car for cash. No car note..that's the best thing. The repo will hurt your credit, but as far as getting another car, you can after about a year and a half.
A co-signer is jointly and severally liable on the note, but doesn't have any security interest in the vehicle. In other words he has no rights to the vehicle, other than to pay off the note if you fail to do so. A cosigner can ask that his name be added to the title, which means he has equal ownership. When the note is paid he can then have his name removed
But as a co-signer, it also means you have the responsibility to ensure that the owner of the property is able to pay on time for the financed car.
If you have any doubts you can call the bank where the car is financed; they will give you a clear answer.
I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and showed them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to small claims court and filed suit on the driver of the other car. The person's insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can replace the car for what they want to give you.AnswerUltimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe--only what the car is worth. AnswerThe insurance company will only give you the value of the vehicle, as per the "Kelly Blue Book". They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous damage.
If the accident was another driver's fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for "Kelly Blue Book", and get the estimate of the car's value. If it is more, then dispute it with the insurance company. Print the page out.AnswerWhen you bought the car new or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not offer it to you and some just don't know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a girl hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even though she did not have the car. The courts won't do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
No, the minute you've signed the contract, the vehicle is yours. "Buyer's Remorse" is a myth pertaining to the buyer's supposed legal right to change their mind and return a vehicle after signing the contract. Not at all based in reality! This myth probably stemmed from a stipulation called the "Right of Recission" when refinancing a home loan, which allows the person refinancing a three-day "cooling off" period after signing the refinancing paperwork to change their mind and cancel the refi.
I can't speak for other states, but, in Texas, the Lemon Law only takes effect if the car has been in three times for the same problem within a specified time frame (6 months or a year, I think). Also, it has to be something that renders the vehicle inoperable or dangerous. In other words, if your stereo keeps going out, or your power window is broken, then Lemon Laws do not apply.
If you live in California and you sign any contract, you will be unable to return the vehicle. In a rare case, I practically begged the manager of a used car lot to unwind the deal. I told him that my wife purchased a car for me prior to my purchase of their car, but I was completely unaware of it. They finally let me out, but withheld a $40.00 documentation fee and a 2.9% credit card surcharge. $178.00 is better than a $6000 used car that I decided that I didn't want. Also, when I purchased the car, I left it at the car lot and told them that I'll pick it up in a matter of days. I guess the unwinding of the deal helped for the simple fact that the car never left the lot and I came back the next morning. It only took me one night to think about the deal and realize that I wanted out. The most important thing is to not let the sales person pressure you into signing anything. Don't listen to 'this car may be gone tomorrow,' 'this is as low as I can go,' 'you will not find a deal better,' etc. It's all bull. It will get you in trouble if you sign the contracts, but you later want out. THERE IS NO WAY OUT AND THERE IS NOTHING THAT YOU CAN DO ABOUT IT. Everything is monitored and recorded from the minute you step on the car lot until you go to the back office to sign the 'nail in the coffin' contracts. Before you sign anything, go home and think about it. It will save you a lot of headaches. DON'T SIGN ANY CONTRACTS UNTIL YOU ARE COMPLETELY HAPPY WITH THE CAR!
No you do not have to make payments after returning a car as long as you are ok with having a repossesion on your credit history and as long as your ok with the finance company filing a judgment against you for the amount left owed after the sale of the returned vehicle.
Car buyers often get suckered into high interest or extended-term loans which far exceed the value of the vehicle. This is especially true for buyers with bad credit.
While debt relief and credit counseling agencies will tell you they can help, many of these companies are scams and will do more damage to your credit than good.
The truth is you can't just walk away from a loan. As soon as you stop making loan payments your lender will send the loan to a collection agency. Collection agencies will harass you and family members for payment. They can also legally garnish your wages to cover your unpaid debts. The fact that your account is in collections will also be reported to the credit agencies, and this will have a serious negative impact on your credit rating and credit worthiness.
If you cannot afford your loan payments, first call the lender. Many financial institutions have hardship programs available for people who cannot afford the monthly payments. How these programs work vary by lender.
Additionally, review all offers that loan agencies offer you before getting it. Sometimes, they do offer their clients promotions but in reality, and in the long run - this could cause you a headache and have a bad loan.
It can be:
Deferred Payment Credit
Red Clause Credit
Green Clause Credit
Buying a used car from a private seller is very different from buying a car from a dealer. Private sellers generally are not covered by the Federal Trade Commission's Used Car Rule and don't have to use the Used Car Buyers Guide. However, you can use the Guide's list of an auto's major systems as a shopping tool. You also can ask the seller if you can have a car inspection done by your mechanic.
Private sales usually are not covered by the implied warranties of state law. That means a private sale probably will be on an "as is" basis, unless your purchase agreement with the seller specifically states otherwise. If you have a written contract, the seller must live up to the promises stated in the contract. The car also may be covered by a manufacturer's warranty or a separately purchased service contract. However, warranties and service contracts may not be transferable, and other limits or costs may apply. Before you buy the car, ask to review its warranty or service contract.
Many states do not require individuals to ensure that their vehicles will pass state inspection or carry a minimum warranty before they offer them for sale. Ask your state Attorney General's office or local consumer protection agency about the requirements in your state.
The following tips are useful when buying a car:
Lenders do not want you to default on your mortgage. As with any other mortgage, in the case of the balloon payment, your lender will try to work with you to refinance your mortgage into payments you can handle. If you can't refinance, you may be forced to sell the property (unless the bank does it for you) to cover the balloon payment. Most people will be able to refinance, the question is just how high their rate will be. You do not have to use the same lender that your first ballon mortgage was with. Many lenders have programs for people with less than perfect credit. The only problem is your rate will be high, so you want to refinance as soon as you have a decent credit score to get a lower rate. If your balloon payment is coming due and you can not qualify for a loan because you owe more than the home is worth then talk to your lender about a shortsale or deed-in-lieu. If neither of these are available and a workout just isn't possible, it may make more financial sense for you to just walk away from the property.
If you decide to finance your new car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.
Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it's sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.
Before you sign a contract to purchase or finance the car, consider the terms of the financing and evaluate whether it is affordable. Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in.
Some dealers and lenders may ask you to buy credit insurance to pay off your loan if you should die or become disabled. Before you buy credit insurance, consider the cost, and whether it's worthwhile. Check your existing policies to avoid duplicating benefits. Credit insurance is not required by federal law. If your dealer requires you to buy credit insurance for car financing, it must be included in the cost of credit. That is, it must be reflected in the APR. Your state Attorney General also may have requirements about credit insurance. Check with your state Insurance Commissioner or state consumer protection agency.
If you don't have great credit, getting financing from the dealer may be your only choice (for either new or used cars). Because the dealer wants to sell you a car, he or his finance company is more likely to make you a loan. Be aware, however, that the APR is likely to be higher, or the price of the car may be higher than a similar model sold by somebody else. That said, if you need a car, sometimes you gotta do what you gotta do.
I think you should get an auto loan instead of leasing a car. You can get an auto loan easily at a lower interest rate and you would get a new car which would be your own . Where as in leasing a car you would get a used car and there are many other problems in leasing a car.AnswerThere are many benefits to a traditional auto loan. An auto loan is easier to understand and easier to shop for than an auto lease. The complexity of leasing makes it easier for dealers to take you for a ride.
Another advantage of an auto loan over leasing is that you end up with a valuable asset that belongs to you ? the vehicle. After you have made all the payments on a traditional auto loan, you own the vehicle. In contrast, after you complete payments on an auto lease, you have to return the vehicle, lease it for an additional term, or find the money to purchase it. A traditionally financed auto loan is a fiscally more conservative approach than a lease. With the loan, you are investing in an asset; with a lease, you are not.
Also, with a traditionally financed auto loan, you can set the level of body damage and liability insurance you want. A leasing company might require you to take a coverage limit or deductible level that costs more than what you would otherwise want.
A big advantage of car leasing for some consumers is that you can generally arrange a lease that allows you to pay less per month for a given vehicle than you would pay with traditional financing for the same vehicle.
Another advantage of a car lease over a loan is that you don't have to sell the car at the end of the lease. You can simply turn it in to the leasing company. If you know that you will want a new car after, say, three years, you can lease for that period knowing that you can easily get rid of the car at the end of the lease. You don?t have to worry what the car will be worth. In contrast, with a purchase, you have to trade in the car or sell it at whatever the market will bear.
In some states, car leasing might seem to have an additional advantage: you pay taxes only on your payments, not on the full purchase price of the vehicle. That is true in the District (not in Maryland or Virginia). But this apparent advantage is generally roughly offset by the fact that the tax rate on lease payments is higher than the tax rate on a purchase. In the District, for instance, you pay a 10 percent rate on car lease payments and a six percent rate on the purchase price of an automobile.
According to Texas's top seller of new and used car, SoloAutos, the color white is the sought after color for new as well as used cars.
In simple terms, an auto lease is a long-term rental.
When you lease a car, the lease agreement you sign specifies how long you have the car and how many miles you can drive during this time period. A popular lease term is 36 months (3 years) and 12,000 miles/year (36,000 miles). You are not prevented from exceeding this mileage, but you will pay a per-mile penalty for every mile you are over (as defined in the lease agreement). Once the lease agreement expires, you must return the car to the lease company or purchase it from them at a pre-determined amount. The car also must be returned in good condition with only "normal wear and tear". A fee may be charged if the lease company feels the car's condition is worse than expected.
Leases are often much cheaper than a traditional loan because the actual dollar value being financed is much lower. When you purchase and finance a car, the loan is for the total purchase price. For example, let's say the car you want has a purchase price of $25,000. With a traditional loan, the loan amount will be $25,000 (less any down payment), broken up into a monthly installments over the lengh of the loan. If you lease that same $25,000 car, the actual dollar amount financed may be less than half the retail price. A lease basically covers the value that you will use over the lease term, verses the actual cost of the car. The buyout option at the end of the lease would typically be the remaining amount not financed.
One common misleading statement about leases is that you do not own the car. While this is true, you don't actually own the car while you finance it either. When you finance a car, you only truly own it after your loan is paid off and the finance company provides a copy of the title in your name. While you are paying the loan, the finance company owns the car. The same is true for a lease. The biggest difference here is that a financed car will be registered in your name, whereas a leased car will be registered in the lease companies name.
SCAM SCAM, they ask you for any type of personal information such as social security number, delete it. When you take out a loan on anything, it is in good faith that you will repay the loan. The bank expects this agreement to be honored. There is no such thing as a free lunch and no one is going to payy off your car loan for you. There are other alternatives to help pay off your car that are legit. Some companies will pay you money if you allow them to put their company logo's on your car to advertise their products. I had my car loan paid off in December of 2004 by a company called CLC and since then I've pulled my 3 credit reports and on each one of them it showed Chrysler credit with a zero balance and "paid as Agreed" So, personally, I don't think you are right in calling it a scam. I saved 18 months of payments. What is this company CLC and how can look them up??
Mainly, it's like trading in your old car for a new one. You'll have to be approved for a car and they may give you certain choices to choose from. And another thing is that your car note is most likely to go up, but you know what you're able to afford. And remember if you're thinking about doing this, talk to your salesman to make sure you have all of the details about it before you sign any legal documents. ADD-ON: The Dealership will take a lot of information about the vehicle, such as the Make/Model, Year, VIN, mileage, options on the vehicle, and wear and tear. They are very picky about about the physical aspect of the vehicle. If you are planning on trading in and getting an expensive vehicle, here is a checklist to get the highest price on your trade in. 1. Mileage. This is a 15/k miles per year deal. IE: In '08 a 2006 vehicle should not have more than 30k miles. Less is even better, but there is a large jump in price if over 15k mi/yr. 2. Dents/dings, and non-stock body parts. A replaced fender is always assumed the part was damaged beyond repair. This deteriorates the trade-in value. Even though the dealership can fix it with 2 hours of a mechanics wage, it is going to cost YOU, the buyer.
What you are talking about is called a trade-in. Plain and simple and yes dealers have a way of dealing with it as long as you have the right income to debt ratio. 28/36 ratios are the norm. And that you have a decent credit rateing. Then they can still possibly get you financed but at a high interest rate, which could put you in a worse situation. That would mean that your payments can not exceed 28% of your gross monthly income and as long as all your debts,, ( rent, electric, child support, phone, you get the idea) do not exceed more than 36% of your gross monthly income. Dealers don't just pay off loans with out you purchasing another vehicle.
Personal Property in the Vehicle
According to the FTC:
Regardless of the method used to dispose of a repossessed car, a creditor may not keep or sell any personal property found inside. In some states, your creditor must tell you what personal items were found in your car and how you can retrieve them. Your creditor also may be required to use reasonable care to prevent anyone else from removing your property from the car. If your creditor can't account for articles left in your vehicle, you may want to speak to an attorney about your right to compensation.
Check your state laws before you assume anything. Each state has different rules and regulations. As far as California goes, all personal property in a vehicle is removed and a complete inventory is made of all personal property that is NOT attached to the vehicle. In California any repossession company can and will charge a fee to get your personal property back, so my advice to you is handle it the day your car is taken and don't take long because fees increase daily.
You will not be allowed in your vehicle, all property is taken out for you.
Advice from other contributors:
The following information assumes you're talking about a closed-end lease, the most common type of vehicle lease. With a closed-end lease, you may return the vehicle at the end of the lease term, pay any end-of-lease costs, and walk away. At the beginning of the lease, you may have to pay your first monthly payment; a refundable security deposit or your last monthly payment; other fees for licenses, registration, and title; a capitalized cost reduction (like a down payment); an acquisition fee (also called a processing or assignment fee); freight or destination charges; and state or local taxes. During the lease, you will have to pay your monthly payment; any additional taxes not included in the payment such as sales, use, and personal property taxes; insurance premiums; ongoing maintenance costs; and any fees for late payment. You'll also have to pay for safety and emissions inspections and any traffic tickets. If you end your lease early, you may have to pay substantial early termination charges. At the end of the lease, if you don't buy the vehicle, you may have to pay a disposition fee and charges for excess miles and excess wear. When comparing different car lease offers and negotiating terms, consider: the agreed-upon value of the vehicle -- a lower value can reduce your monthly payment up-front payments, including the capitalized cost reduction the length of the lease the monthly lease payment any end-of-lease fees and charges the mileage allowed and per-mile charges for excess miles the option to purchase either at lease end or earlier whether your lease includes "gap" coverage, which protects you if the vehicle is stolen or totaled in an accident. Ask for alternatives to advertised specials and other lease offerings.