According to Nolo, a legal advice website, you can simply call the dealer and return a financed car, but the lender is under no obligation to release you from the debt owed. The lender may sell the car, but you may still be found liable for the difference between the price the lender gets from reselling the car and the price you agreed to pay.Know More
When you are having trouble making car payments, the best thing to do is contact the lender and try to work out an arrangement, according to an article on the Fox News Network website. Some lenders allow you to trade down into a less expensive model, while others may extend the loan term, which lowers your monthly payment.
Turning in a financed car is still a better option than having it repossessed. According to Fox News Network, repossessing a car costs the finance company up to $8,000. You may find yourself liable for these charges as well if you are unable to come to an agreement with the financing company. If you are unable to afford your financed vehicle, your lender may allow you to find someone who will assume the payments. However, this can be difficult to accomplish, as the new buyer has to be deemed creditworthy by the financing institution.Learn more about Credit & Lending
When a financed car is totaled, the owner's insurance company will issue a payment based on the car's fair market value, and the car's owner is responsible for any difference owed on the loan. In most cases, the insurance payment is sufficient to pay back most, if not all, the remainder on the loan, but not enough to purchase a replacement vehicle.Full Answer >
To qualify for refinancing, students must apply for refinancing through the lender and provide any documentation requested by the lender before the application is approved. Refinancing or consolidating a loan may require several months to give applicants time to return the requested documents.Full Answer >
A business credit application is a document used when a business owner wants to obtain credit from another business, and it contains information that helps a lender make a decisions on lending to the business, states Rocket Lawyer. This application is useful in case the borrower doesn't pay and debt collection becomes necessary.Full Answer >
Consumer Finance notes that a lender has approximately five business days to acknowledge a borrower's request, beginning on the date that the letter is received. After that, the lender generally has up to 30 business days to respond to the letter.Full Answer >