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Loans
Money lent to individuals or businesses in return for interest in addition to repayment of principal. Common types of loans include commercial loans, interbank loans, mortgage loans, and consumer loans.
13,117 Questions
I presume that you purchased the vehicle and sometime after that you filed the Chapter 7 Bankruptcy. If that is the case and you included the Finance company on your list of included creditors, then the discharge does just that. It discharges the debt forever and you do not have to pay any difference. Yes, as this is usually one of the terms of the contract.
They would only notify the 1st party and not the co-signer.
§ 1309.607. (UCC 9-607) Collection and enforcement by secured party. (A) If so agreed, and in any event after default, a secured party: (1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
Notice the word 'MAY'???
Can you get out of a bad car loan?
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.
Can you sell a car when you still have a big car loan to pay off?
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.
Should you get an auto loan or lease a car?
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.
If you signed your contract, more than likely the finance company is not going to change the APR rate. But, on the other hand if the finance company is a direct lender.. then you can try to refinance with the current lender or another lender to get a lower APR rate - depending on your credit rating at the time.
Can someone take over your car loan?
The other person would need to apply for a new loan to pay off your existing loan. You cannot simply switch the names on your loan. But check with your lender for details.
You just simply cannot switch the names on your loan.
How do you get car loan with bad credit?
Yes a person with very bad credit can get a car loan .
If you do not happen to have enough money to buy a vehicle, then low car loan rates are easy options for helping you buy the car without having to pay from money directly out of your pocket. It's simply just a form of credit by lending party of a banking institution. You will of course need to pay back the fast auto loan on completion of the agreed upon terms. Payment amounts include your principal amount and the interest, which of course is the charge placed upon the borrower for being lent money. This charge is really the same as the Annual Percentage Rate or the (APR). You end up benefiting from low annual percentage rates because your monthly payment amount ends up being lower.
The rates of interest offered on car loans depend on the market rates and the individuals own personal credit scores. There are lots of web sites out there that have information regarding the auto loan interest rates that are going on in the current market. Instant Car Loan tend to be available to people with various credit histories. Web sites offering car loans with low interest rates even lend a hand to thousands of these people with bad or no credit records and help them get good online auto loans even after a bankruptcy.
Even if they have been turned down by earlier lenders for credit issues, they can always apply for online low interest rate auto loans since the internet auto loan programs change almost each day. However, the chances that the loan will be approved at a low interest rate is mostly if the individuals credit history shows timely credit payments, constantly paid bills, and of course no bankruptcies. The internet is a great medium for getting an auto loan approved quickly and at a low interest rate despite the history of the applicant's past credit profile.
What happens to a car loan if the borrower dies?
Without seeing the sales agreement and/or loan agreement, it's impossible to answer your question with any certainty. But assuming that both agreements are fairly standard, boilerplate sorts of things, then here's the basic situation: If your husband, as co-signer, was smart enough to insist on finance insurance on the deal (or if the dealership F&I person was smart enough to sell it with the deal and if neither your grandmother nor your husband opted out of it), then the finance insurance policy will pay-off the car in full just as soon as your husband files a claim and sends the finance insurance company a copy of the death certificate.
If, on the other hand, no finance insurance policy was purchased by your grandmother and your husband at the time of contract signing, then your husband must continue making payments (or must sell the car and use the proceeds to pay-off the loan... whichever he prefers). That's what co-signers do: When the principle borrower cannot pay for any reason -- including death -- then the co-signer must honor the contract.
If finance insurance pays off the car loan, then the car is free and clear, but it's in her name. Therefore, her estate has possession of the vehicle and neither you nor your husband can simply take it -- especially if she's intestate (had no will).
If there is no finance insurance, and your husband, therefore, must pay it off, then even though it's in possession of her estate it's a fairly easy process to show the executor or administrator of her estate that he's now on the hook for the payments as the co-signer and, therefore, the vehicle needs to be conveyed to him so he can either continue making payments on it or sell it or whatever he plans on doing with it.
If he sells it, he will not be able to give a free and clear title to it to the buyer until the car loan is satisfied. So if he sells it, he must first call the loan company and get a cash payoff amount. Whatever he sells it for must be equal to or more than the cash payoff amount or he'll end-up paying some cash out of his pocket because by hook or by crook that finance company is getting the cash payoff amount... period.
It's probably worth sitting down with an attorney for an hour or so and getting proper legal advice. What happens as far as who has to pay-off the car is pretty straightforward and doesn't really require your talking to an attorney. But you don't want to mess with taking things which belong to her estate until and unless you're legally allowed to. And that's a probate issue -- one worthy of chatting with attorney about, even if only briefly.
What do you do with a charged off car loan?
There is dialouge that indicates how you should contact the creditor that has charged off the account, and indicate that you wish to settle the debt, though charged off, in exchange for a written promise to correct your credit report. There is even a form letter you can modify for your own use.
AnswerYou can contact a debt consolidation agency that would deal with your creditors on your behalf.How old do you have to be to get an auto loan?
The age is 18 and with most dealerships you have to have good credit to buy a car. So if your son has a bill in his name or a credit card, the dealership can pull up his credit, and he must be approved. Also, he must have a job or a document showing that he has a steady income coming in.
What do you do if the insurance for a totaled car does not pay off the car loan?
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.Will making a big down payment get you a lower interest rate?
It should, but you may have to demand/fight for it. The big down payment means less risk to the lender if they have to repossess it. Just a note - a big down payment would need to be close to 1/2 the total value of the vehicle, not a few thousand dollars on a $12,000 dollar loan. This is also affected by how bad your credit is, especially if you have previous repossessions. Basically all a big down payment does is get you more broke. Put down a resonalble amount but don't put all your eggs in one basket per say, and for every two thousand dollars you put down it only buys you 20 bucks off the monthly payment. The best way to reduce interest is to make extra payments,( but mail them in serperate invelopes and write in the comments section that is to be applied to priciple) on top of the regular payment each month. That is providing that you have a simple interest loan that allows you to pay towards the priciple. ask what type of laon you have.
How can you get a loan without a cosigner when you have a limited credit history?
Car Loans Specialist in USA offers a variety of car finance for your new or used cars with no co-signer. Credit doesn't matter if you have good credit, bad credit or limited credit!
Getting a Loan Without a Co-Signer -Save up for a larger down payment. The more EQUITY you have in the purchase, the more likely you are to get a loan.So if I happen to have no credit, how am I going to get approved for a car loan?
Well, with the majority of car loan companies, just being young and having little to no credit isn't a factor when it comes to granting an approval. Why is that? Well that's because a auto loan is a secured sort of loan. The lending institutions are protected by the fact that if your loan does go into default they get to take your car.
Usually auto finance companies won't require a cosigner for auto loans up to the $25,000 range. If you happen to be a student, there isn't a need to have a auto loan for a car that costs more than $25,000.
Car Loan financing is what I do for a living and car loans are based on the following factors;
1. LTV (loan to value).
2. Term requested.
3. Age of vehicle.
4. Down payment.
5. Miles on vehicle.
6. Time at residence.
7. Time on job.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income ratio.
With bad or poor credit, the only way you will be approved for no cosigner car loan is if the LTV is around 85% of wholesale. This is goin to require you to find a dealer that first owns something that far back of book and second is willing to sell it that cheap. Very, very hard to do.
First of all collect some more cash for down payment and then go online and search loan with no credit you will find lots of sites on internet who provide no credit car loans just fill out form they will contact you if you will qualify.
This happen to me; I went to the car salesman that sold me the car and demaned to talk to the car dealership owner. they told me it would not do any good to talk to him , I told them that they did not own the car but that he did after all it was his car lot, then I said w/ an slightly raised voice " YOU DO NOT LET SOME TAKE A CAR(truck in my case) AND TAKE IT HOME FOR A WEEK OR TWO THEN TELL THEM GIVE IT BACK> and if that was the way they did buisness I would never buy from them again and I would make sure that there comp. in the area heard about ,laso I woult make sure that a letter to the local paper would be on it way, and the talk radio in town would hear of it! they said to take the truck home and they would see what they could do for me. The next day early I think it was about 8:45 am I got a call and guess what they said that the owner of the car lot was going to buy it for me and I would make my payments the same as what was set up in the first place, and that they was sorry for the upset. then I got a dinner for two at Red Lobster in the mail from you guessed it The Owner/also got a b-day card from him that year! Something similar happended to me, at a used car lot in Queens, NY. They sold me a 150 point-check certified Honda, but a month a a half later the car died on me. I took it back and they said they could not take it because I already purchased it, AND that I would have to contact the warranty company. A month and a half later, the manager called me and stated the loan was not approved because I owed $135,000 in state taxes (which was actually $1,350.00, state made a mistake). I told him I was soorry and left him the keys ( I am glad to have gotten rid of that lemon) and since I put no money down, I drove it for free!!!! I now buy new cars! I bought a brand new acura on a lease and a week later, the sales lady called me and told me that i have to return the vehicle. Appearantly she sold me the car on a loan that was never approved. I brought the vehicle back and she told me that i can get that car financed but not leased. she said i signed the paper work and i cannot leave without buying that car or another car on their lot. It was not obvious at first, but she needed to meet her monthly sales quoto so she lied to me and tried to force me to buy another car from her. Luckily I just walked out of the dealership and didn't look back. I got the full down payment back too. so if the mistake was made by a greedy dealer who sold you a vehicle without pre-approval from the bank, then you can send the car back and get any down payment money.
Can you combine car loans on different vehicles?
Only if you get what is called a consolidated loan. Depending on you situation. You can consolidate all you bills into one monthly payment at a usually lower price than what they would normally amount to in a month. Depending on the interest rate you would then decide which debts you threw in there. example.......Obviously if you were paying 3.5 percent a personal loan and consolidated your debt you would not want to add that particular debt at a higher interest rate.
How can you have someone removed from a car loan?
A lender will not let one person just "drop off" a loan. They like the fact that they have 2 people who are equally responsible for paying, in case something goes wrong.
Usually the only way to do this is to refinance the vehicle. This can be done either with the same lender or another lender.
Find out what car dealers don't want you to know at www.dealertricks.com
What are opinions on car loan elimination?
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??
How long does the co-signer have to stay on an auto loan?
A cosigner is obligated as long as the loan exisists. The loan must be paid off or refinanced into the primary borrower's name only to release the cosigner.
If you get a loan in your name can the car be titled in another name?
No.
I recently took a car loan for my son because his credit is bad. The loan is in my name, the title is in his name only. He is listed on the loan as the 'holder of colateral'.
How can the co-signer be removed from a car loan?
You can try to re-finance the car with a different lender without the cosigner if you've established enough good credit.
Yes. Co means equal. You are both equally responsible for the loan.
Find out what car dealers don't want you to know at www.dealertricks.com
New HeadlineCosigners are not reported in MI, IL or CO. It is state law.How can you get a car loan when your monthly income is not always the same?
With any loan -- whether it's for a car or a home or whatever -- the lender needs to know what your income is over time. If your income is all over the place, then you'll probably need to show the lender your last year's IRS Form 1040 -- maybe even two or three years' worth of 1040s. The lender simply needs to be able to see that even if your income jumps around, over time you make enough to cover the payments. You'll simply need to assure the lender that you know how to so budget your money that even though it comes in spurts, you will always have enough to make the payments.
Simple as that.
Only if they are also on the title of the car.
Call the Bank they will explain you what to do in certain situation. I got a same issue I called a bank and they offered me a back message.
