Jason asked:


What is better Balloon financing or traditional financing? What are the pros and cons of each?

Carrie

Wednesday asked:


What are the differences between in house financing, and dealer financing, when buying a used car?

In house financing VS. dealer financing VS. buy here pay here?

Is there a difference between these?

If so, what are the differences?

Thanks in advance!

Constance

hurleyqtgurlie asked:


I’m purchasing a new car soon and I alaways see specials for financing a car thru a dealership. What is the difference? I was planning on going through my credit union.

Justin

Sasorisa asked:


I bought a used car recently but it has had nothing but problems. The dealer seems to be open to exchanging the car I purchased with another one from their lot. However, I wanted to know how financing would work. Can they just amend a certain amount to the contract I current have? Will the second financing pay out the first one? Seriously I have no clue here so any help is appreciated.

Wayne

Kenneth asked:


I wanna buy a car it cost $22.000 going to put $3.500 at signing and I want to make monthly payments on it. So have to lease/or finance it. Leasing is like renting and financing is buying. I’m planning to keep the car like forever but I don’t know which one is an advantage. Explain which one is best for me.

Frederick

doppler asked:


How do you get financing to buy a restored used car from a private party? I am trying to buy a restored VW Thing and I do not have the money to pay cash all at once.This is not some junker… it’s a clean, quality restoration and has value. Are there companies that specialize in financing such purchases, or do I need to get some sort of (probably too expensive) consumer loan?
Wow, John, a little harsh there. It’s a taste thing. I’ve owned a ’68 Beetle and a ’71 Squareback, so I know I love air-cooled VWs, but I’ve loved the look of the Thing since I was a kid and have always wanted one… and body parts are not a problem since, as I answered, this is a clean resto. Plus, there are still specialists out there that offer parts and service for the type 181.
bostonianinmo: anywhere from 3 or 4 grand for a clunker to 16-20 grand for a clean resto… that’s what I’ve found. They’re rare and the people who have ‘em don’t often part with ‘em.

Marjorie

Steph asked:


It says there that it is what consumers are really paying for this vehicle, but does this include financing?

Sherry

ConfusedBeing asked:


I charged $5000 down payment on my master credit card for a new car purchase. I signed a pre-sale contract, which is non-binding, because it was needed for the finance process. After I met with the finance manager, I wasn’t satisfied with the rate that they’re offering me. It was way above the current car loan rate. Therefore, the deal was off. Before I left, the finance manager told me that they’ll refund the full amount. I didn’t get any paper work from them for the refund. I took their words. After two weeks, I still didn’t see the refund. I called the dealer and left them the message, they didn’t return my call. I’m going through the dispute process through my credit card company. I am a bit concern because I didn’t have any paperwork. Does anyone know more about my consumer right? And am I going to get my money back?

Danielle

Serena asked:


Automotive Questions. Please help me? id really apprecaite it. thanks in advance and have a great day. =)

1. Why is it important to maintain a good credit history?
a. Because your family will inherit it, and it’s important to plan for their future
b. Because anyone can access your credit history at any time to learn about you
c. Because a good credit history can generally help you negotiate for a lower finance rate
d. Consumer protection laws state it is your responsibility to maintain good credit

2. What might happen if you fail to make several payments on purchases that you made a year ago?
a. The item(s) can be taken away from you, if the item(s) secured the credit obligation you took on when you bought the items
b. Negative information may be added to your credit report
c. You could be denied credit in the future
d. All of the above

3. How can you find what your credit history looks like?
a. Contact a credit-reporting agency
b. Ask a private investigator to find out all they can about you
c. Look yourself up on the Internet
d. Check your family’s credit history

4. Which of the following is not something a creditor will look at before granting you credit?
a. If you pay your bills on time
b. Where you live and your living arrangements
c. How many credit obligations you have
d. How much you owe on all your accounts

5. Net income is also known as:
a. Taxable income
b. Alimony
c. What’s left after you pay your bills
d. Take-home pay

6. About how much of your monthly take-home pay should your car payment not exceed, after subtracting certain monthly expenses, like credit cards?
a. 5% to 10%
b. 10% to 15%
c. 15% to 20%
d. 20% to 25%

7. In addition to vehicle payment, what other vehicle expenses should be considered in your monthly budget?
a. Insurance
b. Maintenance
c. Gasoline
d. All of the above

8. Which of the following is a contract with a dealership to buy a vehicle on time by paying the purchase price plus an agreed upon finance charge over a certain period of time?
a. Gap protection
b. Aquisition fee
c. Installment sale
d. Residual price

9. What is one of the major differences between buying and leasing a vehicle if you choose to buy?
a. The dealership is listed on the title as the vehicle owner
b. You need to turn in your vehicle to the dealership after a certain length of time
c. You will need to pay a security deposit, acquisition fee and other charges
d. You are the owner of the vehicle and your name is listed on the title

10. Monthly lease payments are usually lower than monthly finance payments when comparing leasing and financing for the same term because you are only paying for the vehicle’s expected depreciation during the lease term, plus a rent charge, taxes and fees.
a. True
b. False

11. When you finance at the dealership, you are entering into an installment sales contract between you and the dealership.
a. True
b. False

12. When you lease a vehicle, you are responsible for excess wear and tear, damage and missing equipment.
a. True
b. False

13. Which of the following items can you negotiate with your dealership?
a. Annual Percentage Rate
b. Length of contract
c. Price of the vehicle
d. All of the above

14. Which of the following can be used to lower your monthly payment?
a. Getting a higher APR
b. Choosing the shortest term available
c. Making a larger down payment
d. None of the above

15. Which of the following are additional items that can usually be added to the finance contract?
a. Optional Credit Life Insurance
b. Option Gap Protection
c. Optional Service Contract
d. All of the above

16. What is the purpose of purchasing optional disability insurance?
a. Covers the gap between the vehicle’s value and what your insurance company provides in the event of total vehicle loss
b. Pays the balance of your contract in the event of your death
c. Makes your scheduled car payment in the event of sickness or disability
d. Protects owners against unexpected major auto repair expenses

17. What is the purpose of a service contract?
a. Adds additional time to the vehicle warranty
b. Protects owners against unexpected major covered auto repair expenses
c. Pays all of the vehicle repairs regardless of the circumstances

Greg