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
Pre-approval means a lender is ready to make a customer a loan or extend some other type of credit based on information the customer provided or that the lender retrieved from a credit reporting agency. Pre-approval is not usually a guaranteed approval; instead, it is an initial creditworthiness evaluation.Full Answer >
Loans work by giving money or assets to a person who needs it, and the borrower repays the lender with interest, according to Investopedia. A loan can come in the form of a one-time transaction or an open line of credit with a set limit.Full Answer >
To obtain a mortgage loan, locate a loan lender, complete an application and provide the lender with necessary documentation. After reviewing and accepting your application, an interest rate and final loan amount is offered.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 >