Archive for the ‘finance’ Category

Who needs a co-signer for a car loan? How does it work? New or first-time car buyers are often surprised at being turned down for a car loan because they have no credit history, which unfortunately has about the same effect as having bad credit. Getting a co-signer might be the answer. Lenders want to […]

About principal and interest If you purchase a new or used car with a loan, you agree to pay off the loan amount (principal) over a specified number of months. But you also agree to pay a finance charge, or interest, for the privilege of using the bank’s (or finance company’s) money for your purchase. […]

How much down payment do I need for my car loan? Until recent times, it was standard for car dealers and finance companies to require at least 20% down payment on the purchase of a car. It was for a good reason. Because cars depreciate in value from the moment they are driven off a […]

We answer questions from first-car buyers almost every day when we participate on the Yahoo! Answers web site in the Car Buying and Selling section. The majority of those questions come from teens and young adults who have little or no experience in buying, trading, or selling cars. In the few years that we’ve been […]

For many people, an auto loan is the most significant and largest financial transaction they make in their lives — at least until they get a home mortgage. Because it is so significant, it makes sense to take the right steps and avoid mistakes in the process. 1. First, shop around for auto loans at […]

First-time car buyers are often unaware of everything that’s involved in the process. It’s not surprising because it’s not simple and not like buying anything else that we normally buy, even a house. We’ll explain it all in this quick guide to buying a car. Further details can be found in the various articles posted […]

Is it possible to sell a car if you are still making loan payments and the loan is not yet paid off? This is a very common question with car buyers and owners. The answer is yes, you can sell the car, but you must get enough money in the sale to pay off your […]

Used cars are for sale everywhere but many people find it difficult to find just the right car for the right price.  It can be frustrating and even overwhelming. First-time buyers, in particular, often have difficulty with the various stages of the process: buying, pricing, negotiating, applying for loans, registering, and getting insurance. What seems […]

Your First Car – Making Your Decision Most of us get our first car as teenagers. It’s the car we’ll always remember. Let’s take a look at some of the important questions you’ll want to consider when deciding about what you’ll buy as your first car, how you’ll pay for it, and how to go about […]

What will my car payment be for a particular car at a particular price? If you are buying a car with a loan, you may wonder how much you’ll pay each month for that loan. It’s not quite as simple as dividing the loan amount by the number of months of the loan. That’s because […]

How Are Car Payments Calculated? Car payments are based on how much you borrow, the interest rate, and the length of the loan. The more you borrow, the higher the payments. The higher the interest rate, the higher the payments. The longer the loan, the lower the payments. Unfortunately, the formula for calculating monthly car […]

If you still owe more on your loan than your car is worth, you are upside down. You may still be able to buy another car if you are upside down on your previous loan. There are two ways to go about it. One way to buy with an upside down loan You could sell […]

Should I Lease my First Car? Many people who are looking for an economical way to drive a new car, perhaps their first car, will look at leasing as a possible solution. The consideration of leasing is often based on a mistaken belief that leasing is like renting and doesn’t require good credit as does buying […]

Don’t Buy Dealer Products and Services You Don’t Need Once you’ve made a deal on a new car, dealers have more products to try to sell you once you get into the F&I (Finance and Insurance) manager’s office to sign papers. Backend products offered by car dealers You may be offered security systems, corrosion protection, paint sealant, window etchings, […]

We have been an expert participant on the Yahoo! Answers web site for many years, particularly in the Cars and Transportation section, Buying & Selling sub-section. We answer questions and provide advice about a wide variety of topics related to automobile buying, selling, insurance, maintenance, and car brands. Although the Answers site is open to anyone, […]

There are essentially two ways to buy a car. You can pay cash, or if you don’t have the necessary cash, you can get a loan. Actually there’s another way — leasing — that we won’t discuss here, but is discussed in a number of other articles on this web site. When you get a […]

Uninformed automotive consumers often confuse car leasing and car renting. They sometimes think the two are the same. They would be very wrong. The confusion is somewhat understandable because of the similarity of terms to that of apartment leasing and renting. Many of us can remember our parents telling us that renting or leasing an […]

Leasing can provide an affordable option to anyone needing car financing at minimum monthly cost. Upfront cost can also be minimized by paying no money down — $0 down payment. Lease payments are 60% – 110% lower than loan payments for the same car. And most leases can be obtained with zero money down— $0 […]

When you buy a car with a loan, you not only pay back the amount borrowed but you also pay finance charges (interest).  Each month’s loan payment consists partly of principle and partly of interest. Actually, the amount of principle and interest changes each month, although the total remains the same. In the beginning, you […]

Car manufacturers are constantly offering low-interest loans and other incentives to help sell cars. With “normal” interest rates around 3.0% at the time of this writing, it’s not much of a stretch for car companies to offer 1.9%, 0.9%, or even 0% loan rates. A zero-percent (0%) loan means no interest at all — no finance […]