AutoFinancing.net » Auto Financing Tips and Tools

4 Steps to Clear a Lien on a Car Loan

writer — Fri, 16 Jul 2010 03:38:44 +0000

A clear lien proves that you don’t owe money from lenders on a car loan. It means that you are free from the burden of paying the monthly repayments. You can now sell the vehicle.

A clear lien is obtained when you pay off the car balance. To obtain a clear lien on your car loan, follow the four steps indicated here.

Step 1: Obtain a Copy of Your Credit Report
You can get a copy of your credit report from the three major credit agencies which include TransUnion, Equifax, and Experian. You can easily get the report by calling them and paying the postage fee so that they can send you a copy. The credit report will tell you a lot of financial things as well as your car loan’s information.

The credit report also lets you see the amount you still owe for the loan. It also states how many times your payment were paid earlier or later than the deadline. Knowing how much you still owe for the car will help you in preparing the money to pay it off.

Step 2: Raise Funds for the Pay Off
In order to pay the remaining amount you owe, you need to raise the money to completely pay it off. You can use your personal savings to pay for it. If you don’t have that one, you can sell some of the things that you don’t usually use. This will be beneficial on your part since clearing your lien will give you savings from not paying the loan interest.

Step 3: Contact Your Lien Holder
As soon as you have the needed amount contact the loan company. Tell them that you want to pay off the loan. Ask them how much you owe and inform them about the time when you will be able to clear the lien. This allows the lien holder to calculate the figures you need to pay up to pay off date.
The amount for the pay-off is basically lower than the figures indicated in the credit report. This is because their computation is based on the full term of the loan. The pay off amount is lower because it is free from accrued interest. Schedule the pay off on a date when you have the money you need.

Step 4: The Pay Off
The pay off has an expiration. Make sure to pay the exact amount on or before the pay off date. After the payment, secure the release of lien from the company. This is a piece of document that proves you paid the loan off. Take this to the Department of Motor Vehicle in your area. Request them to remove the lien from the title of your car. After accomplishing this, you now have a clear lien.

No related posts.

Upside Down Car Loans

admin — Wed, 01 Oct 2008 14:40:03 +0000

If your car is worth less than what you owe on it, your car loan is considered to be upside down. Don’t feel alone, because many people are in the same situation. Don’t worry though, there are options for you.

Keep the car - We recommend keeping the car for the full term of your loan. When this is done, there is not an upside down situation.

We know that isn’t always an option. If it isn’t for you, consider the following.

Refinance – If you are having a hard time keeping up with payments, and your credit is OK, you should try to refinance to lower your payments.

Trade it In – While you aren’t really solving your problem, if your situation requires that you have a different car, you could trade it in on a different car, and transfer the balance of the loan to the new vehicle. To find a dealer that could help you accomplish this, you can complete the online auto financing application.

Pay it Off - If it’s possible, try to find the money to pay the difference so you will be free and clear of it.

Avoid this problem in the future

If you don’t want to be in this situation again, there are a few things you can do to make sure it doesn’t happen.

Don’t buy a car if you can’t afford to pay 20% down.
Don’t finance for more than 5 years.
Don’t commit more than 15-20% of your monthly income to a car payment.

Auto Finacing 101

dennis — Fri, 26 Sep 2008 15:28:19 +0000

Most people think that getting a good deal on a car is an extensive and exhausting process consisting of shopping around and haggling. While it does take the right knowledge and negotiating strategies, some simple tips are all it takes to get the best auto finacing. It is important to get the best base price on a car as well as the best financing terms if you want to get the best overall deal. Before you buy your next car consider these tips to get the best price all around.

It is important to settle on the total price of the car before you discuss payments. Know how much you can afford going in and calculate the monthly payments for that amount over the duration of the loan that you want to make sure you can afford the payments. Many dealers will try to negotiate the monthly payment amount instead of total cost because they can charge more overall by extending the loan term and adding in hidden expenses. Always tell the sales person you might pay cash and determine a total cost you are comfortable with first before you discuss payments.

Check out the current financing rates from lenders outside the dealership before you consider dealership financing. Check out web sites like AutoFinancing.net to see what lenders are offering currently. Talk to your local banks and credit unions as well to see what their current rates are and if you qualify. When you go in to the dealership with this information you have an advantage and can see if the dealership wants beat those rates or if you should finance else ware. Letting dealerships know that you can obtain financing at a better rate somewhere else forces them to offer you competitive auto finacing rates if they want to finance your loan.

If the dealership you purchase from is running a promotion you will also need to decide which promotion is best for you. It is common for dealerships to run promotions offering cash back incentives, discounts, or low or no interest. Cash back incentives and discounts can range from a few hundred to a few thousand, and promotional interest rates can range from 0% to a few tenths of a point lower than the current market value. The right promotion for you depends on the total cost of the car and if you are paying cash or the amount you are financing. If you are paying cash you will benefit from the cash back or discount, but if you are financing you may save more money in interest over the life of the loan than if you took the cash back. Calculate your total interest savings and compare it to the amount of cash or discount offered to see which option is best for you.

No related posts.

What’s My FICO Score?

admin — Wed, 10 Sep 2008 14:28:57 +0000

In the process of obtaining any loan, the lenders are going to check your FICO Score. This is also called your credit score, and it’s provided by the three major Credit Unions (Experian, Equifax and TransUnion). It will give an indication to lenders about your potential for default. We have identified below a couple of ways to get a FREE FICO Score.

-Privacy Matters 1-2-3SM FREE 3-in-1 Credit Report Triple Credit Score Online and Triple Bureau Credit Monitoring, with 7 day free trial

-Equifax Credit Watch^TM Gold with 3-in-1 Monitoring and Score Power®, with 30 day free trial

Once you know these, you can do one of the following:

Apply for Auto Refinancing

Apply for Auto Loan

How will this application impact my Credit Score?

admin — Thu, 03 Apr 2008 14:35:01 +0000

There is alot of concern out there that by shopping around for the best price on car financing will hurt your credit. That is untrue. According to MyFico.com, “most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.” The lenders know that you aren’t going to take all the car loans you apply for, and you shouldn’t be punished for doing your homework to find the best rate available for you. That should actually be considered a good thing. This time period for loan shopping and how it is considered 1 inquiry is typically 3o days.

Free Credit Report and Score

admin — Fri, 14 Dec 2007 16:08:52 +0000

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV. You have the right to a free credit report from AnnualCreditReport.com 877-322-8228, the ONLY authorized source under federal law.

There are many places to get a free credit report, but unfortunately, that only shows you your credit history. Lenders will definitely look at your credit report, but more importantly, they will want to know what your Credit Score is. Our partners at GoFreeCredit are offering not only a free credit report, but also that valuable Free Credit Score you should be looking for. You get this when you start a trial of their credit monitoring. It has a 30 day free trial.