Who Keeps the Car Title During Financing ?

Just as real estate has a deed, a car has a title. The title is a document that describes the ownership of the vehicle. Depending on the state you live in and the type of auto financing you have, you or your lender may hold onto the title. Whether or not you have the title document though, you can still drive the car and can still sell it, as long as you can pay off the loan. What is a vehicle title?A vehicle title is the actual ownership document for...

Confession: I Financed My Car (My NEW Car)

One of the cardinal rules of personal finance is that you don’t finance your cars. You save up and pay cash. Another cardinal rule of finances is that you don’t buy new. With my last car (the car I drive now), I broke both of these rules. And I don’t even feel bad about it. Here’s why: I Drive My Cars for a Long Time I drove my last car for almost a decade. Even now, that car is still being used — by my former in-laws. My current car will do its duty for...

Are There Racial Disparities with Auto Loans ?

It would be nice to believe that auto loans are given out by a system that only looks at your ability to pay and your financial history. And any well-run auto lender will, in fact, care only about your financial history, not your personal background. But a recent federal investigation indicates some borrowers may want to look just as closely as their lender as their lender looks at them. A Weak Link In The Chain The loans in question are “indirect”...

How Is the Length of a Loan Determined on a Car Loan ?

Buying a car can have a major impact on your personal credit and your monthly budget. Of course, you want to make sure that the monthly payment is something you can afford. But how much are you willing to spend after interest is tacked on? Are you planning to drive the vehicle for a long time, or do you prefer to trade in your car after a few years? These answers all affect the length of your car loan, and, to some extent, you determine it. You’ll Need...

Millennials are Driving the Auto Loan Surge

It’s a refrain you hear quite a bit on the news; people under 30 just aren’t driving as much. They aren’t buying cars, they aren’t getting on the road, and what does this mean for the auto industry? Well, as it turns out, it’s not that they aren’t buying cars … they just needed to wait to be able to afford them. First-Time Buyers TransUnion recently surveyed a recent swath of auto loans, looking specifically at buyers who ranged in age from 18 to 34; for...

Pointers for Quickly and Efficiently Paying Off Your Auto Loan

With the current car payment averaging $482 a month, paying off your car loan early is a great idea. Being free of a loan saves money on interest, raises your credit score, and increases monthly cash flow. Automate Your Payment Payments for most auto loans can be made through auto debit or with bill payment through your bank. Having payments sent automatically means no chance of spending a paycheck before your car payment is due. Automation also means...

Can Older Adults Get a Discount on Auto Insurance ?

Auto insurance companies generally price insurance premiums based on the risk they think the person they’re insuring presents, among other factors. If in the company’s opinion, based on statistics, you’re more likely to get in an accident than the average driver, you’ll probably pay a higher-than-average premium compared to other policy holders. Age-Based Premiums According to the online auto-buying resource CarsDirect, once drivers hit the age of 60,...

Can Buying a New Vehicle Drop Your Credit Score ?

Any time you buy something on credit; it has the potential to impact your credit score. Buying a car is no exception. However, credit purchases can also positively affect your credit score. Since a credit score is a reflection of your overall credit behavior at one particular moment, buying a new vehicle will only reflect one fraction of your total credit score. Credit Scores Credit scores are a complex combination of a number of different factors. The...

Going Through Bankruptcy? An Auto Loan is Still Possible

Bankruptcy is a tough time for anybody to go through. It can be financially difficult and emotionally draining, and, if your car breaks down in the middle of the process, it can feel like you’re just facing yet another setback. But don’t assume that getting a car loan will be impossible if you’re going through bankruptcy. Bankruptcy And Car Loans It may seem counterintuitive, especially if you’re in the process of liquidating your finances or...

U.S. Auto Loans, Sales, Keep Rising

It’s a question that the entire auto industry finds itself asking: Can 2015 beat 2014 on car sales? It’s a tall order; 2014 was a record breaking year for both cars sold and loans originated. And it looks like 2015 might be up to the task of beating it.The latest numbers paint a very strong picture of a boom in progress. May saw a high of 17.7 million vehicles sold off of dealership lots, the strongest month since the industry set a sales record in 2005....