Car Financing
Car Financing questions and answers
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Q: Car financing?
I am planning to buy a 2nd hand car on finance for 5 years. But,what if i wont be able to pay the monthly installments, can i just pop back into the dealer and return it? is that with no further obligations?
A: No, the dealer is out the picture once you own the car.
You will have to meet the obligations, and if you don't then you may face a reposession. This will have bad repurcussions on you for some time regards and financing or borrowing. Once you own the car, it is beteen you and the lender.
Some used car dealers do their own financing, but this still holds true. If you return the car, they may sue you for breach of contract.
Q: What's the best way to exchange my current new car financing for another brand car that I choose?
Do I sell my car first? Then get financing approval and go to the new dealer and get the new car? Or Do I just go to the new dealer with my existing car (new 1 year old) and let them do all the paperwork exchange and get everything done with them.
I am looking to keep the most money in my pocket and shop smart.
A: Sell your car and pay the note off. Otherwise you will be upside down when you sign the papers.
Q: Can you show me how car financing calculations are done?
Example: $12,000 car financed at x% interest. Can you show me an actual calculation of how much the monthly payment will be and how many payments are to be made and what the interest is etc, etc?
A: just google amortization. it is a fairly lengthy calculation on a scientific calculator (at least for me). the 1st site makes it easy. but I'm sure there are others that show you the exact steps by which the calculation is achieved.
Q: What is the average used car financing percentage?
I am just trying to calculate how much it would cost me to finance a car. I have good, not excellent credit.
Down payment will be anywhere from 10% to 20% of the car price.
A: A lot will depend on the year of the car you are buying as well as it's retail loan value v/s purchase price. In addition, many Manufacturer Certified Pre-Owned vehicles typically have a lower rate, such a 3.9% on a Pontiac for 60 months. As long as you qualify, it wouldn't matter how much money you put down because it's a set rate.
The older the car, the higher the interest rate will be. If you buy a 2005-2006, you can probably get 6% - 7% or so through a credit union / bank. If you try to buy a 2001 model, the rate might be 11% and they will only let you finance the car for 48 months, rather than 60. This sometimes makes the payment on a more expensive newer car the same as one a couple years older. It will cost more, however if you can add 12 months to your term, it helps to lower your monthly payment. I hope this helps and you can email me if you have questions.
Q: Do I need full coverage insurance if I get in-house car financing?
I have no credit and I think in-house car financing is the only way I can get a loan for a cheap car (I'm looking for something up to $3000).
Is full coverage car insurance mandatory if I get in-house car financing?
A: Any time you finance a vehicle full coverage is required to protect the interest of the lender.
Q: Just bought new car, financed through dealer, can I change to bank financing?
I live in MA and I just bought a new car about a week ago. I think I can get better financing through my credit union. Can I switch financing without a penalty or how does that work?
A: Read your contract, it depends on the terms of the loan...but normally yes you can refinance if you have good credit and the car is worth the amount you got loaned.
Q: can any one explain the merits & demerits of car financing?
I'm making my report on car financing & want different view points on its merits & demerits.I want the answers as soon as possible.
A: against
you have the car now not later
if you can not make payments you lose car and could ruin credit
have to carry more insurance
for
can sleep nights knowing you owe no money!!
best bet is do what i did -- set up a car fund and every month put money into this interest paying account (like a money market account) than when you want to buy a car you just write a check -- sure you are always making a car payment but the payment is to your self!!! the interest the account brings in will normally cover the cost of your insurance!!!
Q: What companies offer 72, 84, 96, 108, 120 or 144 month car financing for used autos?
I have excellent credit and am evaluating my options for financing a car. Ideally the loan would be for 100% of the purchase. This is for a used car.
I have found many credit unions, but they have very strict membership requirements.
Google'ing for it, only brings up articles/blogs about people complaining about what a bad idea it is. I need actual companies and their contact information. I want to research the various programs offered by these lenders.
Do not lecture me about long-term car loans being a bad idea.
A: If you are silly enought to take a car loan past 72 months, then you deserve the results you get.
Many banks will lend to 72 months on a car within 2-3 years of the current model year
Q: Can I buy a car using financing from the dealer and export the car ?
To clarify my question:
I am buying the car and the title is on my name (when you use financing the title is on your name and you can sell the car next day if you want), so I am the owner. And I decide to go for a six month vacation to Europe, and I want to take my car with me? Where is the problem here ?
Hi guys!
I shipped the car last night!
Keep up the good work giving wrong answers!
A: NO
In order to export, you have to have a title in hand. No title, no export. If you are financing, you will NOT have the title. The bank will have the title, you will have proofs of purchase and insurance. You never get the title untli the lien is satisfied.
PLus the bank is not going to allow financing on a car that is not in the country.
Q: Can a car dealer request to change car after financing approved and contract signed?
I recently purchased a car. After a few weeks of getting everything in to get financing approved the dealer has now called and said that the APR was a promotion for a 2007 model and they sold me a 2008. Do I have to sign a new contract and change cars after the financing has been approved and the contract has been signed?
Thanks so much...I do have possession of the car and I am currently at school 200 miles from the dealership and they want me to come back to sign these new papers...they didn't even want to tell me what I was signing papers until I continued to ask my reason for coming 200 miles.
A: If they erred, it's their problem. You aren't obligated to this swap, you have all the documentation that shows it's all good. They will simply have to pay the rate difference themselves and they dont want to do that. Sucks to be them.... if they accidentally overcharged you because they forgot about a selling credit or something do you think you'd have gotten the same phone call?
Q: What hidden fees can you expect when you buy a car with financing?
I was to buy a car today. When it got down to signing, some strange things occurred. He changed the interest fee by 11/2 % from day previous, listed the price as $1,000 more than what it was (but this did not reflect in actual total), charged me administration fee (car lot) and bank fee (financing company) and wrote in a $1,000 fee for delivery (60 kms!). Delivery supposed to be free b/c the owner of the lot wanted to hold the car until the finance co's cheque cleared; not as I expected, that I would take it today. Small dealer normally not dealing with higher% financing companies. I've never been so confused. I think I really could have been taken. If they cashed the cheque, and then got my signature for the $1000 drop-off, they never would have had to give me the car. I pointed this out to them, as well as the other things that didn't make sense. Then he said he'd change it to what would make me happy. I have experience only with private deals. Can you provide clarity?
Auto Inspector: what do you mean? - "there is no such thing as a car you can't find unless it's an antique?"
I didn't have trouble finding the car as he had one I was interested in (the Malibu) on his lot. It's just the changes, the charges, the fudging of figures, the fact that he wouldn't give the car without receiving his CASH first. Tks.
A: As with ANY other business, you will find Car Dealerships that can indeed be shady in nature. These are usually the "Buy Here Pay Here" lots.
Often when you walk into one of these places, your gut is screaming at you that there is something "not right" about this place.
My advice: Turn and go.
If you proceed after this, it's your assumed risk.
It's not just car dealerships though. Corruption knows no boundaries.
.
Q: If my parents cosign for car financing, does the interest rate reflect their credit only or a combination?
A combination of my credit score and theirs that is. I am 22 and buying my first car and I want the best rate so I think I'll get my parents to cosign but I'm not sure how it works.
A: Auto finance is what I do for a living and it depends on the lender.
Some credit unions and Chrysler base the rate on the best score, others will base it on the combination of the two.
Your best bet will be to go to your parents own bank or credit union.
Q: Can a person get 0% car financing if they have bad credit but put down a big downpayment?
I want to pay cash for a used car (15,000)...I have the $$, but I want to build more credit, and want a car loan so I can pay it off in just a couple payments.
A: That's a loaded question. You can, on paper, show 0% interest, when you're just paying the interest off out of the total profit from the car. Every major finance company I know of offering 0% insists that the buyer qualify for a certain tier level to get the rate, and with poor credit, you probably won't qualify. So the basic answer is this... a snake can show you 0% and you'd never know you just paid the 20% rate out of your big downpayment.
In addition, paying it off in less than a year really won't help your credit score that much. However, a cd for part of that $15,000 might earn you enough to offset some of your higher interest rate.
Q: when financing a car can a finance company charge you a fee tht is about the price of the car?
finance company charge 7000.00 to finance car that was priced for sale at 10,000 is there any laws against this.
A: welcome to the harsh reality of compound interest. Now you understand why many people choose to save ahead of time and buy an older used car with cash.
yes, its perfectly legal.
Q: what is the minimum credit score for new car financing?
I am trying to buy a 2009 Mazda 6, they are offering 3.9% financing with approved credit. Does anyone know the minimum credit score for this deal or getting approved period?
A: In this area of the country, there are literally 100's of car dealers and they are folding and closing rapidly. Many interviewed have stated that if a person does not have a credit score in the 700 range, then they are not getting financing, thus they are loosing sales of 30 to 45% a week.
It may be different in your area, best bet is to call a local dealer and ask them what the local loan requirements are as of today. Things may change in a little while, but right now it is tough to get a loan.
Hope this answers your question.