Cars
Many people filing for bankruptcy want to keep their car and you’re in luck, as you can often keep your car in bankruptcy. Find out how.
Filing Chapter 7 bankruptcy puts you in the driver’s seat when it comes to deciding how to deal with your car loan. Whether you want to keep everything as is or walk away from a bad deal and buy a different car after filing – the choice is yours. Upsolve explains your options so you can make the decision that’s right for you.
This page is your home base for learning about what a bankruptcy filing means for your car.
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Can I Keep My Car If I File Chapter 7 Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated November 1, 2024
Filing for Chapter 7 bankruptcy doesn’t necessarily mean you’ll lose your car. If you’re current on payments and your vehicle’s value falls within your state’s exemption limits, you may be able to keep it. Some people also choose to “redeem” or “reaffirm” their car loan to keep their vehicle. Understanding your options can help you make the best choice for your financial situation.
Read More →Can I Buy a Car After Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated November 26, 2021
Yes, but it makes sense to wait as long as you can after receiving your discharge. You'll need to be careful and make certain that you’re getting a good deal.
Read More →Car Repossession 101
Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated April 5, 2024
This article will answer some common questions about vehicle repossession, including why it happens, what the steps are in this process, and how you can get your car back, after it’s been repossessed.
Read More →What Is a Reaffirmation Agreement and How Do You Use One?
Written by Attorney Jenni Klock Morel.
Updated September 29, 2023
People who file bankruptcy are often concerned about what's going to happen to their car. Signing a reaffirmation agreement is one option that lets you keep your car and continue making the payments, but it's not the only option and might not be the best option in your situation. Read on to learn about how reaffirmations work and factors to consider when deciding whether to sign a reaffirmation agreement.
Read More →Can Filing Bankruptcy Help With a Repossession?
Written by Attorney Paige Hooper.
Updated July 25, 2023
So long as your car hasn’t already been auctioned or sold, filing bankruptcy can help stop repossession. If you file Chapter 7, the automatic stay gives you time to negotiate new, more affordable loan terms with your car lender. It can also get rid of a deficiency judgment if your car is repossessed and sold. Filling Chapter 13 can help you reorganize your auto loan debt to get a more affordable monthly payment and spread out past-due payments over several years.
Read More →How To Redeem Your Car in Bankruptcy
Written by Attorney Paige Hooper.
Updated October 18, 2022
Redeeming your car debt in bankruptcy can make sense if the car is worth much less than the amount you owe on your car loan. Redemption allows you to pay the lender the value of the car, rather than the larger amount you owe. This article covers how redemption works, what’s required to redeem your car, the pros and cons of redemption, and the procedure for redeeming a car in bankruptcy.
Read More →What does it mean to surrender your car in bankruptcy?
Written by Attorney Andrea Wimmer.
Updated September 8, 2020
If you surrender your car as part of a Chapter 7 bankruptcy, your car debt is erased by the bankruptcy discharge.
Read More →What To Do If You Changed Your Mind About Keeping Your Car
Written by Attorney Andrea Wimmer.
Updated September 3, 2020
Did you originally plan on keeping your car but changed your mind? That is totally ok! Here is what you need to do to make sure you’re protected, depending on where you are in the process.
Read More →If I surrender my vehicle, will I be responsible for any balance owed?
Written by Attorney Andrea Wimmer.
Updated July 22, 2020
No. Even if the car is sold for much less than what you owe on the loan, your personal liability to pay the loan is discharged.
Read More →Do I own my vehicle? What percentage of it do I own?
Written by Attorney Andrea Wimmer.
Updated November 19, 2020
Whether or not you own your vehicle depends on whether you purchased it using a loan or leased it from a dealer or other agency.
Read More →Why doesn't my car appear on my exemptions list?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
There are a few reasons that your car(s) might not be listed on your exemptions list.
Read More →How Do I Reaffirm My Car Loan?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated August 11, 2020
The 6-step process of reaffirming a car loan.
Read More →How can I surrender my car in Chapter 7 bankruptcy?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated April 12, 2022
"Surrendering" your car means that you give it back to the lender that gave you the loan to purchase it. If you surrender your car as part of your Chapter 7 bankruptcy, any debt that you owe on it will be eliminated when you receive your bankruptcy discharge.
Read More →I want to redeem my car. When do I do it?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
"Redeeming" your car means that you buy it from the lender that you financed it with for the fair market value of the car, paid to the lender in one lump sum. The rest of your loan is discharged.
Read More →What To Do If Your Car Lender Won't Talk To You After Filing
Written by Attorney Eva Bacevice.
Updated September 3, 2020
It is not uncommon to have a lender react this way after a bankruptcy filing. When you file a bankruptcy an automatic stay goes into effect, which means that creditors cannot continue in any collection efforts while the bankruptcy is ongoing.
Read More →Car Co-Owner vs. Co-Signer: What’s the difference?
Written by Attorney Andrea Wimmer.
Updated October 30, 2021
A co-signer on a car loan is obligated to pay the loan if the other person defaults on their payment obligation while a co-owner of a car has an ownership interest in the vehicle itself. This article explains how to properly disclose these relationships in your bankruptcy forms.
Read More →What Happens to the Co-Signer of a Car Loan in Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated November 28, 2021
If you have bought a car and your loan has a co-signer, you may wonder what will happen to the co-signer when you file bankruptcy. This article explains your options and how they'll affect your co-signer.
Read More →How To Get a Reaffirmation Agreement in Chapter 7 Bankruptcy
Written by Attorney Paige Hooper.
Updated May 11, 2022
To keep your car during and after a Chapter 7 bankruptcy, you sometimes need to sign a reaffirmation agreement with the lender and have it approved by the bankruptcy court. This agreement is a contract that confirms you're committed to continue paying your car loan after bankruptcy. It comes with a risk: If you fall behind on your car payments after your bankruptcy, your car may be repossessed and you may be left to pay a deficiency balance.
Read More →Can Bankruptcy Help Me Get My Car Back After Repossession?
Written by the Upsolve Team.
Updated July 25, 2023
If your car was repossessed, filing bankruptcy may help you get it back, but you need to act fast. If the lender has already sold your vehicle at auction, you won't be able to get it back. Even if you can use bankruptcy to help you get your car back, you'll want to carefully weigh your options. If you can't afford to keep making your monthly car payment, it may not make sense to file bankruptcy just to get your car back because you can end up in the same situation again.
Read More →Can I Discharge Tickets, Fines, and Tolls in Bankruptcy?
Written by Attorney Karra Kingston.
Updated August 9, 2023
It's not easy to discharge most tickets and government fines in bankruptcy. Though it depends on what the tickets or fine was assessed for, many tickets and fines are non-dischargeable debts. That means you have to repay them even if your bankruptcy case is successful in discharging other debts like credit card or medical bills. That said, filing Chapter 13 bankruptcy can be a good way to manage non-dischargeable fines and fees. It can also help you get your driver’s license reinstated if it’s been suspended due to unpaid fines.
Read More →Why do reaffirmation agreements exist?
Written by Attorney Andrea Wimmer.
Updated October 20, 2020
If a debt is reaffirmed, the lender can repossess the car if you default on payments AND sue you for the balance left on the loan. Find out why reaffirmations exist.
Read More →How to Amend your Statement of Intentions
Written by Attorney Andrea Wimmer.
Updated March 29, 2022
The Statement of Intentions is the bankruptcy form that you filed with the court to let your creditors know what you want to do with your secured debts, most often a car loan. If you have changed your mind and need to amend (update) your Statement of Intentions, follow the steps outlined in this article.
Read More →What Happens If I Have A Car Accident After Filing Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated September 3, 2020
While a property settlement from the insurance company may have to be paid to the trustee, any personal injury settlement you’re entitled to as a result of the accident is yours to keep. This article will explore what steps to take if you get in a car accident after filing a Chapter 7 bankruptcy.
Read More →Why can’t I login to my account to pay my car loan anymore?
Written by Attorney Andrea Wimmer.
Updated July 22, 2020
After a bankruptcy filing, some creditors block you from logging in to your account. This becomes a problem if you want to keep your car and need to make your payment. Unfortunately, there isn’t much consistency among lenders on when and why they do it. They say it’s because they don’t want to violate the automatic stay. Unfortunately, what it really does is make it much harder for the filer to make their payment.
Read More →Repossession After Bankruptcy: What You Should Know
Written by Attorney Jenni Klock Morel.
Updated October 19, 2021
You have options for what to do with a car loan when filing a Chapter 7 case, including reaffirmation, redemption, or surrender. Entering into a reaffirmation agreement can lead to new debt problems if you default on your car loan payments after bankruptcy. The purpose of filing Chapter 7 bankruptcy is to put you in a better financial situation than before filing and give you a fresh start. Keep reading to find out what to expect if your car is repossessed after filing Chapter 7 bankruptcy.
Read More →Do I Still Owe After My Car Is Repossessed?
Written by Attorney Amelia Niemi.
Updated April 5, 2024
Unfortunately, having your car repossessed isn’t the end of the road on your car loan. Many Americans owe more on their car than it is worth and their loan is “underwater.” Here’s what you need to know about vehicle repossession and how Chapter 7 bankruptcy can offer some debt relief.
Read More →Can I Buy or Refinance a Car During Chapter 7 Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated May 15, 2023
Yes, you can buy a new (to you) car while your Chapter 7 bankruptcy case is pending. If possible, wait until your discharge has been granted as that will give you more negotiating power with the bank.
Read More →Confused After A Reaffirmation Hearing?
Written by Attorney Andrea Wimmer.
Updated September 3, 2020
Reaffirmation Hearings: An overview of possible outcomes and what it means for you.
Read More →6 Things You Should Know About the Statement of Intentions
Written by Attorney Andrea Wimmer.
Updated April 5, 2022
If you’re planning on filing a Chapter 7 bankruptcy and have a car loan or other secured debt, here are 6 things you should know about the Statement of Intentions.
Read More →What Is A Charge Off On A Car Loan?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated December 11, 2021
A charge-off on a car loan is when the creditor declares the debt uncollectible. The creditor can still collect the charged-off debt and you still owe it.
Read More →Filing Bankruptcy After a Car Accident
Written by Attorney Kassandra Kuehl.
Updated May 16, 2022
This guide will introduce you to the process of filing bankruptcy in the wake of a car accident so that you can make an informed decision about your legal and financial options at this time.
Read More →What if I Have a Car Accident During My Chapter 7 Bankruptcy Case?
Written by Attorney Paige Hooper.
Updated September 22, 2022
The average Chapter 7 bankruptcy only takes a few months before you get a fresh start. But even in that time, the unforeseeable can sometimes happen — such as a car accident. If you’re in a car accident, you could end up receiving money, or you could have a claim against another party. On the other hand, you could end up owing money or having claims filed against you. Either scenario could affect an ongoing Chapter 7 bankruptcy. This article discusses each of those potential situations, the possible consequences for your Chapter 7 case, and your options for making the most of your bankruptcy in either scenario.
Read More →What Do I Do About My Car Payment That Is Way Too High?
Written by Lawyer John Coble.
Updated August 1, 2023
If you're like most people, you had to take out a loan to buy your car. Car loan payments usually rival health insurance, student loans, and housing payments for the highest expenses. This article will cover your options to reduce your car payment with or without bankruptcy.
Read More →Can the Bank Repossess My Car?
Written by Curtis Lee, JD.
Updated October 24, 2021
This article provides an overview of the auto repossession process. It includes information about what a lender will do after they repossess your car, what legal rights you have, and the options you have available to get your car back.
Read More →How Does The Repo Man Find Your Car?
Written by Attorney Thomas J. Pearson.
Updated April 5, 2024
Vehicle repossession occurs when a lender takes a car back from a borrower when the borrower falls behind on loan payments. If you are concerned that your car may be targeted for repossession, there are things you can do to lower your risk of missing payments. Read more to learn what a repo man can and can't do, what happens after repossession, and what steps you can take to avoid repossession in the first place.
Read More →Are There Any Advantages to a Voluntary Repossession?
Written by Attorney Thomas J. Pearson.
Updated July 12, 2023
Voluntary repossession is when you give your car back to the car dealership instead of waiting for the lender or collection agency to repossess it. It can be a decent option if you’re having trouble with monthly payments on your car, if you're only able to make late payments, or if you’re going into bankruptcy. Deciding if it’s the right move depends on your personal situation and goals. This article will explain voluntary repossession, how it can affect your credit history, and how bankruptcy may or may not help with repossession issues.
Read More →Salvage Title Cars: Everything You Need To Know
Written by Mark P. Cussen, CMFC.
Updated December 12, 2021
A salvage title car comes with its own set of risks and limitations. But if you know the car’s history and the person who is selling it to you, a salvage title car may be a good deal in some cases. This article will discuss the pros and cons of buying a car with a salvage title, how to identify, finance, and insure a car with a salvage title, and what steps you can take to get a rebuilt title issued for your car.
Read More →What Is a Buy Here, Pay Here Dealership & How Does It Work?
Written by Mark P. Cussen, CMFC.
Updated November 29, 2021
If you’re shopping for a car and you have bad credit, you may have trouble getting financing. You can try to get a personal loan from a local bank or a friend or family member. But if that doesn't work, you may have to go to a buy here, pay here (BHPH) dealership. These dealers offer in-house financing to people with bad credit. If you really need a car, they can help you get one. But there are also downsides to financing with them. Read on to learn more about the pros and cons of buy here, pay here dealerships.
Read More →Ohio Vehicle Repossession Laws
Written by Mark P. Cussen, CMFC.
Updated April 5, 2024
If you take out a loan to buy a vehicle and you become unable to make the payments, then you run the risk of having your vehicle repossessed. Vehicle repossession laws are largely the same in all states, but some details governing borrowers’ and lenders’ rights differ from one state to another. Here we will examine Ohio’s laws and what you need to know if you live in Ohio and can’t make your payment or have already experienced vehicle repossession.
Read More →Can’t Afford Your Car Payment? Here Are Your Options
Written by Curtis Lee, JD.
Updated July 20, 2023
If you can’t afford to make your car payments, it might seem like losing your vehicle is inevitable. Thankfully, that’s not true. While your chances of keeping your car are better if you have a high credit score, you can avoid defaulting on your auto loan even if you don’t have the best credit history. You have several options, some of which will allow you to keep your car and others that require you to let it go. This article will examine what those options are.
Read More →The Ins and Outs of Subprime Auto Loans
Written by Attorney Tori Bramble.
Updated November 26, 2021
When it comes time to buy a car, if you have a low credit score or limited credit history, you may be worried about getting turned down for an auto loan. But borrowers who have poor or bad credit scores can still qualify for subprime auto loans. These are also called second chance auto loans, and some auto lenders and dealerships specialize in them. Though these loans can help finance the purchase of a new car or used car, they also have some drawbacks. This article will explore the ins and outs of subprime auto loans, so you can decide if they’re right for you.
Read More →What Is a Good Credit Score for Buying a Car?
Written by Attorney Eric Hansen.
Updated December 9, 2021
To get an auto loan with a good interest rate and manageable monthly payments that fit your budget, you’ll need a decent credit score. That begs the question, what is a good credit score for buying a car? Generally, you’ll need a FICO credit score that’s 500 or higher, but to get better terms and a better interest rate, you’ll want a credit score that’s higher than 660. This article will explain credit scores and what to do when purchasing a car with bad credit. We’ll also touch on how to improve your credit score and other helpful information on financing your auto loan.
Read More →4 Tips To Get Out of a Car Lease
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated November 11, 2021
Leasing a car can seem like a great idea at first. But over time, leasing a vehicle may become more of a burden. Unfortunately, one of the biggest drawbacks of leasing a car is how difficult and expensive it can be to get out of your lease early, regardless of your financial status. Thankfully, there are a few ways that you may be able to unburden yourself from a lease you no longer want to be in. You may be able to transfer the lease, buy the leased car and sell it to someone else, trade in your car, and/or lower or suspend your payments. This article will explore each of these options in detail.
Read More →Are 72-Month & 84-Month Auto Loans Good Financing Options?
Written by Chiara King.
Updated November 29, 2021
A car payment is often one of the largest recurring expenses in a household’s monthly budget. Because of this, it’s not surprising that many car purchasers are now choosing to spread out the cost of a new car over extended periods of time using longer-term loans. These longer-term auto loans typically last 72 or 84 months and generally have lower monthly payments than shorter-term loans. This can make them an attractive option, both for budget-conscious car shoppers and for those who want to buy a more expensive car than they could afford with a standard loan length. Longer loans do have significant drawbacks, however, which car buyers should carefully evaluate before they make a loan commitment.
Read More →How Does Repossession Work?
Written by Curtis Lee, JD.
Updated October 24, 2021
Repossession happens when a lender takes your property after you miss one or more payments on the debt secured by the property. There are different types of loans, and not all loans allow for repossession.
Read More →Consumers’ Rights – Repossession Notices
Written by Attorney Tori Bramble.
Updated October 12, 2021
When you stop making payments on certain debts, creditors can repossess your property without giving you notice. In many states, the lender doesn’t even have to tell you it’s going to repossess. No matter how far behind you are on your payments, you have rights. This article will explain the repossession process, how it applies to different property, post-repossession notices, and how to get your property back after repossession.
Read More →Can You Return a Car You Just Purchased to the Dealership?
Written by Attorney Aan Malahia Chaudhry.
Updated October 25, 2023
In general, car dealerships don’t take returns or offer return policies for purchased vehicles. If the deal was legal and truthful, there are no federal laws requiring dealerships to accept return on car purchases. There are a few exceptions, including some that are your rights as a consumer.
Read More →9 Ways To Get Out of a Car Title Loan Without Losing Your Car
Written by Chiara King.
Updated October 3, 2023
A car title loan allows you to get cash by using your car’s title as collateral. These loans are based on your car’s value, not your credit, so you don’t need to go through traditional loan approval processes to get one. Though these loans may seem like an ideal solution to an emergency need for cash, their high-interest charges and extremely short loan terms make them difficult to manage. They also increase your risk of having your car repossessed. If you currently have a title loan, the best thing to do is to get out of it quickly.
Read More →Car Title Loans: Advantages, Disadvantages, & Alternatives
Written by Chiara King.
Updated November 6, 2021
Car title loans are a fast and easy way to get cash, but they should be used only as a last resort. These loans are risky because their short loan terms and high APRs make them difficult to pay back, which increases your risk of repossession.
Read More →Lemon Laws for Cars: How They Protect You
Written by Attorney Todd Carney.
Updated October 31, 2021
Lemon laws are in place to protect car buyers in all 50 states, who were sold defective vehicles. A defective vehicle is one that has serious problems that the manufacturer cannot fix. There is no standard in each state for what is considered a defective vehicle. If you’re in the market for a new or used car, knowing your lemon law rights will help you avoid getting stuck with a lemon and won’t drive you crazy.
Read More →What Are the Effects of an Auto Loan Default?
Written by Attorney Eric Hansen.
Updated December 15, 2021
If you’re struggling to make your car payment on time, you’re probably already feeling stress and frustration. Once you’re behind on payments you’re considered delinquent and your credit score will take a hit. Falling further behind moves you into default on your auto loan, which will come with even more serious consequences.
Read More →The Pitfalls of Leasing a Car When You Have Bad Credit
Written by Attorney Eric Hansen.
Updated December 9, 2021
If you need a car but you don’t want to purchase one outright, leasing may be an attractive option. It gives you flexibility and package options without the maintenance hassle of car ownership. But if you have bad credit, it may be difficult to get approved for a car lease. And if you are approved, it may be more expensive. This article outlines how your credit score plays into the car leasing process, how to increase your chances of being approved for a lease, and other options you have besides leasing.
Read More →Mechanic’s Liens: What They Are and How They’re Used
Written by Attorney Eric Hansen.
Updated November 26, 2021
A mechanic’s lien is a legal tool tradespeople use to make sure they get paid for the work they do and the supplies they contribute to projects. They’re common when you book construction workers. If you’re having work done on your home, it’s good to be aware of these liens. If subcontractors or other workers don’t get paid, it can put your property at risk.
Read More →Can a Mechanic’s Lien Be Placed on a Financed Vehicle?
Written by Attorney Eric Hansen.
Updated November 28, 2021
A mechanic’s lien is a legal claim, or security interest, that is created when a mechanic does work on a vehicle, and they are not paid as agreed. This lien may allow the worker to keep - and even sell - the vehicle if they aren't repaid. These liens may be applied even if the vehicle hasn't yet been fully paid for.
Read More →Upside Down Car Loans
Written by Chiara King.
Updated December 11, 2021
A car loan is "upside down" or "underwater" when the borrower of the loan owes more than the vehicle is worth. This negative equity situation can cause financial problems if a car is stolen or needs repairs that insurance won’t cover. Borrowers have options to flip their loans "right side up" or get them out of their upside-down loan obligations.
Read More →Can You Sell a Car That Has a Lien on the Title?
Written by Lawyer John Coble.
Updated December 12, 2021
If you want to sell a car that has a lien on the title, you’ll need to take a few extra steps. If you trade your car in with a dealer, they’ll handle the process. If you sell to a private party, you’ll need to handle getting the lien released. You can do this at the lender’s office or hire an escrow company to help. If you have negative equity in the car, you’ll need to be able to pay it off to get the lien released.
Read More →Buying a Car With No Credit History: What You Need To Know
Written by Attorney Eric Hansen.
Updated July 12, 2023
If you don’t have a credit history, you can still buy a car, but it will be more difficult. Without a credit history, it’s hard for lenders to know how risky you are as a borrower. You may be offered loans with higher interest rates. Some financial institutions specialize in giving loans to borrowers without a credit history, so it's worth shopping around.
Read More →Getting a Car Loan if You Have Bad Credit
Written by Attorney Eric Hansen.
Updated May 11, 2023
If you have bad credit it may be more difficult to get a car loan, but it's not impossible. Some lenders will charge higher interest rates, but you can shop around for loans to see which lender will give you the best terms. You can also work to improve your credit so you'll have even better options in the future.
Read More →Can You Trade In a Car With Negative Equity?
Written by Attorney Eric Hansen.
Updated November 28, 2021
If you have an auto loan on a car and you owe more on the loan than the car’s worth, you have negative equity. You can trade in a car with negative equity, but you’ll need to pay off the negative equity or roll it into your new car loan. If your car has negative equity, it’s usually best to wait to trade it in until you’ve addressed it.
Read More →Can You Sell a Car That Has a Lien on the Title?
Written by Lawyer John Coble.
Updated December 12, 2021
If you want to sell a car that has a lien on the title, you’ll need to take a few extra steps. If you trade your car in with a dealer, they’ll handle the process. If you sell to a private party, you’ll need to handle getting the lien released. You can do this at the lender’s office or hire an escrow company to help. If you have negative equity in the car, you’ll need to be able to pay it off to get the lien released.
Read More →Strategies To Lower Your Car Payment
Written by Attorney Eric Hansen.
Updated November 29, 2021
If your monthly car payment is too expensive, there are ways to lower it! Start by talking to your lender to see what options they can offer. You may be able to defer your payment if you’re facing a short-term financial difficulty. Otherwise, refinancing your car loan or selling or trading in your vehicle can help lower your payment. If you’re getting a loan to buy a car, try saving up for a bigger down payment, improving your credit score, and shopping around to compare different loans to make sure you get the lowest car payment possible.
Read More →What Are Guaranteed Auto Loans and How Do They Work?
Written by Attorney Paige Hooper.
Updated November 29, 2021
Guaranteed auto financing allows people to buy cars even if they don’t qualify for traditional car loans. Dealerships will look at your current income and employment to determine whether you qualify. You may need to meet minimum income requirements and offer a down payment. These auto loans typically have high interest rates and fees. Shop around and read the fine print carefully to be sure you get the best terms.
Read More →Is Auto Loan Pre-Approval a Good Idea When Buying a Car?
Written by Attorney Eric Hansen.
Updated December 8, 2021
Getting pre-approved for an auto loan is often a good idea. It will help you know how much money you can take out and what your monthly payments and interest rate will be. It also gives you power at the car dealership because it’s like being a cash buyer. When you get pre-approved, the lender will run a hard credit check, so only do this when you know you’re likely to qualify for the loan.
Read More →Can You Get a Car Loan While You’re on Unemployment?
Written by Attorney Eric Hansen.
Updated November 22, 2021
If you’ve lost your job and you’re collecting unemployment, you may still be able to finance a car, but it will be harder to get approved for a loan. Unemployment isn’t a long-term, stable income source, which lenders want to see. They’ll also look at your credit history and score and income sources when you apply for the loan.
Read More →Rebuilt Title Car Loans Explained
Written by Lawyer John Coble.
Updated November 30, 2021
When a car's title is classified as a "salvage" title, this means that the vehicle has either been severely damaged or totaled. If the vehicle is repaired, the salvage title classification may shift to a "rebuilt" title. Buyers should be cautious when purchasing a vehicle with a rebuilt title because the car or truck may cost more to insure and the purchase may be harder to finance. Buying a vehicle with a salvage title is a process additionally burdened by the costs of repairing the damaged car.
Read More →Selling a Car With a Loan: Processes and Options
Written by Chiara King.
Updated November 30, 2021
Before a car that is not yet fully paid for can be sold, the lender's legal claim to the vehicle must be cleared. Paying off the remainder of the loan balance will clear that claim. A prepayment penalty may also become due if the loan is paid off early. If paying the balance remainder isn't an option, the borrower can speak with the lender about transferring ownership. If the lender is also an auto dealer, a trade-in opportunity may be available.
Read More →What Are the Pros and Cons of a Lease-To-Own Car?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated October 30, 2023
A lease-to-own (or rent-to-own) program allows borrowers to make installment payments on a vehicle over a period of time determined in the lease. Once all the car payments have been made, the borrower (the lessee) assumes ownership of the vehicle. These arrangements can particularly benefit borrowers who have bad credit and don’t qualify for traditional leases or car loans. That said, these agreements tend to be expensive, so it’s important to understand the terms of the lease-to-own contract before you enter into one.
Read More →Is It a Good Idea To Pay a Car Loan With a Credit Card?
Written by Robert Greenbaum.
Updated December 8, 2021
Using a credit card to make auto loan payments can help borrowers to make ends meet temporarily when their budgets don't stretch far enough. However, putting car payments on a credit card can lead to big interest charges and risks to a borrower's credit score. It is important to carefully weigh the pros and cons of making even a single auto loan payment on a credit card before committing to this plan of action.
Read More →Refinancing a Car Loan With Bad Credit
Written by Lawyer John Coble.
Updated November 30, 2021
Favorable auto refinancing terms are often extended to borrowers with good credit. Borrowers with bad credit need to "shop around" carefully to secure decent refinancing rates. If decent rates are extended, refinancing an auto loan can save a borrower thousands of dollars. But, borrowers with bad credit need to understand the terms that they are being offered carefully or the potential savings overall could be minimal.
Read More →Refinancing a Car Loan With Bad Credit
Written by Krishna Patel.
Updated December 8, 2021
Having bad credit doesn’t mean you can’t get an auto loan or refinance your current auto loan to try to get better terms. Refinancing your auto loan can help you get a lower interest rate, lower monthly payments, and save money on the total cost of your loan. This article will talk about how refinancing works, the pros and cons of refinancing your auto loan, and some of the factors you should consider when shopping for a refinance loan.
Read More →Should You Surrender an Unwanted Car in Bankruptcy?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated October 27, 2023
If you’re financing a car with a car loan, you’ll need to decide how to deal with it when you file bankruptcy. If the payments are too high or you simply want to get rid of the car and the loan, you can surrender the vehicle back to the lender and have the debt discharged as part of your bankruptcy case. Often, the lender will pick up the car or schedule a mutually agreeable place to meet. If they don’t, you may need to seek legal help.
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