Know you vehicle. What do you drive? A high-end luxury vehicle or a lower-end economy car are different to service. Don’t be fooled into thinking that only the dealer who sold you your vehicle is the only one who can do the needed maintenance or repairs on it. You are going to need to make sure the mechanic you choose is qualified to work on your car. There are plenty of certified mechanics who are qualified to repair your car. ( look for ASE certified mechanics)
Get out your vehicle’s maintenance manual and read it. Know what recommended maintenance is required. Your car needs more than oil changes.
Are you mechanically inclined or are you clueless? If you are mechanically inclined or at least have some kind of idea on how your car works then that is great. It makes it easier to communicate with someone when you understand the language. If you are clueless you are setting yourself up to be taken advantage of. Read your vehicle maintenance manual to get a better understanding of how your car works. You don’t need to know how to fix it, but every driver should be able to change a flat tire or check their fluids.
Get referrals from friends and family. Make sure you know what kind of vehicle they drive. Ask them not only if they were satisfied with the cost of the repairs but the quality of the repairs. What kind of relationship do they have with their auto repair shop? Do they just go because it is convenient or do they indicate they trust them?
Do the research. Check to see if they have a website. You can tell a lot about a business by the quality of their website. Is it up to date? informative?
If the auto repair shop does not have a website I still recommend checking it out. Instead of calling, if it is convenient, stop by. (Midday- after lunch – a few hours before closing time is probably best) Go in, talk to the service manager and feel him/her out. Ask about their policies regarding estimates, getting pre-approval for repairs, labor rates and turnaround time.
If they pass your first impression, schedule an appointment for some minor maintenance. Be clear with your needs and never assume just because you are having minor work done doesn’t always mean they can do it in a timely fashion. They should be working on other vehicles. Be upfront with them with your expectations to avoid misunderstandings.
Don’t wait until you break down to look for a mechanic. Towing service can be costly. When you are in a vulnerable situation you are setting yourself up to be taken advantage of. If you work a distance from your home, ask your co-workers if they know anyone. It is good to be prepared. Building a relationship with an auto repair shop in your neighborhood is practical as well as having someplace to go near your job. The key is to be prepared. If you were sick would you go to just any doctor? Chances are unless it is an emergency you have a doctor you trust. Think of your car’s “health” the same way you do yours. It sounds corny but believe me, you won’t be sorry. Your car is vital to you bringing home a paycheck every week, isn’t it?
Most customers prefer that a shop call them first to get approval on any work done over what was originally discussed. Some shops don’t do this!!! Make it clear to the service writer or manager what you want.
Know what an “estimate” is. An estimate is an idea of what a job will cost. The final bill can fluctuate either up or down. This is normal!
To build trust with a shop you must be clear on what you expect. Get all the answers to your questions before you agree to have work done.
Most mechanics aren’t psychic. They will only check what you ask them to and unless you let them know every “symptom” your car has they might miss something. Think of going to the doctor and not telling him how you are feeling and then expecting him to diagnose you without getting feedback from you.
ASE certified means the mechanic is certified by the National Institute for Automotive Excellence. Check out their website.
There is a federal law that prohibits car dealerships from voiding your warranty if you choose to get your routine maintenance done elsewhere. Always keep your receipts!!!!
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Article by yuvsufkevin fineley
They spend cash for its body beauty but in addition it’s essential to think about the maintenance of its engine.
Car Servicing is without doubt one of the effective methods of sustaining the quality of your car. Autos must undergo into common check as much as avoid any repairs. With proper car maintenance it’s going to final for several years and you can use it when needed. While you purchase a brand new car, most automotive firms have automobile servicing affords included to the car warranty. You should comply with the automobile servicing maintenance being schedule in response to its miles. Auto owners should observe the advice of the automotive corporations as a result of they know better. If it’s your first time to own a car, you should ask your pals or people whose expert in automotive upkeep just like the automotive mechanic. You shouldn’t take for granted the maintenance of your car. Human being wants regular examine as much as their docs while auto wants common tune up and examine up from auto servicing.
By no means do the automotive maintenance by your personal unless it is a minor upkeep and you had expertise with cars. But in case you have no expertise at all, do not danger any of it and simply go to the closest car servicing in your area. Listed under are some maintenance suggestions it’s best to consider in taking good care of your vehicles:
. Regular Automobile Service – It is important you comply with the automotive service schedule in keeping with precise distance/miles or time period. More often than not, car companies scheduled it for you. It usually happens in first 1-three years of proudly owning the car.
. Correct Oil Change of Engines – Oil change needs to be performed every year or depending on it operating miles. Follow the mechanic advice. With proper engine oil change guarantees a protracted engine life.
. Test Fluid Stage – It’s something may be accomplished with the car proprietor but when you don’t know find out how to do it ask to your mechanic helps although it’s totally straightforward to do it yourself. The important fluids like coolant fluid, Brake fluids, battery fluid, and transmission fluid ought to be checked and maintained on a daily basis.
. Test Break and Tyres – These are the commonly used factor of your automobile so it advisable to examine them day-after-day if they works high-quality before utilizing the car. Test if the break stress is on the right level. Test if tyres are performing well with the correct amount of air.
. Car Body Maintenance – You also needs to preserve the appears to be like of your car. See if it needs body repaint. Examine the minor components reminiscent of side mirrors, headlights, bumper, doors, seats, and different body elements of the car. It isn’t necessary to have model new physique components on daily basis however simply be sure that it nonetheless working fantastic for you.
Have you ever but not found your finest used van even after visiting varied retailers for car gross sales Dublin? It’s time to stop hopping from one shop to a different for an used auto. Getting in touch with one of the best used automobile dealers Dublin is where your search will certainly end. With reputed automobile sellers you’ve gotten an opportunity to get an excellent discount as far as the worth of the car is concerned. You may as well make sure that you will get good high quality autos from skilled and reputed dealers. Furthermore, the most important point is that reputed sellers don’t get into pretend or unlawful deals.
Resale of stolen automobiles
Just be sure you ask for the history check stories from the automotive sellers whenever you purchase a second hand van. Dublin or Cork, reputed car brokers in most of the Ireland’s areas do the mandatory historical past checks of the car. One of the major reasons for this is to avoid any legal hassles. There will be cases the place stolen cars are repainted and repaired after which sold to car dealers at low prices. These cars are then bought by car sellers to the last word customer. If your dealer doesn’t have the history check stories, you possibly can yourself do a web-based history test of the car you wish to buy.
Hackneys offered at car gross sales Dublin
It can be actually daunting to discover a genuine dealer amidst the plethora of used car agent in Ireland. Checking the status and experience of assorted dealers on-line and being cautious whereas buying second hand cars is the only resolution to purchasing a very good second hand car. Dublin car dealers principally present their customers with the historical past check experiences of the automobile the client has chosen to buy. Even then, you need to go in for a double historical past verify to make it possible for your chosen car was never used as hackney or taxi. Cars which have a history of being used as taxis are principally extremely depreciated and worn out. You need to avoid shopping for these cars as they will require frequent repairs and an excessive amount of maintenance.
Article by Greenbee
Minor radiator leaks can be temporarily fixed by pouring metal flakes from a product called Bar’s Leak into the radiator. Use epoxies from local auto parts stores to fix a radiator leak with help from an auto mechanic in this free video on car repair and diagnostics. Expert: Tom Brintzenhofe Bio: Tom Brintzenhofe has been a mechanic for the past 17 years. Filmmaker: Reel Media LLC
Video Rating: 4 / 5
We all know all the major financial irresponsibility or default will bring down significantly credit score but your practice of paying late or ignoring continuously payments of smaller amount of various forms of bills/debt which seem quite insignificant and minor to you such as unpaid housing rentals and medical bills etc. can also become a detrimental to your overall credit score if you do not understand the intricacies of credits
Here are five ways, though not limited to, hurt your credit score
1. Late Payments and Large Balances of Credit Card
Late payments of your credit card not only force you to pay additional infringement fees, but also put a black mark on your credit history. Some credit report experts say poor payment record consists of between 30 and 40% of your overall credit score, and in some cases even a single late payment can reduce 100 points in the worst scenario. If your credit card has a significantly large balance, it would also compound unimpressive to lenders and creditors.
2. Unpaid Or Not Fully Paid Medical/ Health Care Bills
This can damage your credit score. Should it get to the stage that a collection agency gets involved, this will be noticed in the lending circles.
3. Non-Payment Of Housing Rentals
This can also aggravate your credit ratings. Your landlord can report your eviction on the grounds of defaulting on your housing rent payment and this is definitely a big no-no for real estate agents/property management companies and lenders. Apart from resulting in poor credit score, you might have to rent properties directly through generous landlords as you might face difficulties in renting though real estate agent.
4. Piling Up Utility Bills
Though late payments on utilities, telephone bills for a cable TV are not often referred to credit agencies, a number of US states actually report these types of infringements to collections agencies. Payment of this type of bills on time may actually do you a favor in credit score.
5. Unpaid Library Fines And Parking Tickets
These might not seem a significant amount but unexpected consequence on credit score can be brought upon you, These days most municipal and local governments tend to resort to collection agencies to recover these unpaid bills. Should you ignore continuously for long time to pay library fines or parking tickets by due date and this end up with a collection agency, this could make your credit score drop by maximum 100 points depending on severity.
Though late payments and large balance of credit card, piling medical or utility bills, paid housing rentals and unpaid parking tickets for library times may sound like only small hiccups, these actually contribute to slowly strangle your credit score and may end up preventing you from better quality of your life by purchasing a new home or car or paying for your child’s future college tuition. And you are forced to embark on credit repair to reverse your fortunes.
Where To Get Free Credit Score
Where To Get Credit Repair/Debt Management Services
Related Minor Car Servicing Articles
Everyone knows that car repairing and tuning up requires a lot of expense and is also not a very easy job. However, considering the fact that it is really very expensive, a lot of people try to solve these car repairing issues themselves. Servicing your own car is not that difficult a task and this can be done quite easily too. So what is the right procedure to get the car repairing done on your own? Let us find out here:
Change fuel filters
The very first thing you need to consider is changing fuel filters. These filters are changed only once annually. Changing fuel filters enhances your engine efficiency and also helps in letting you get better mileage.
Change oil filter
Another thing you need to do is change the oil filter. Oil is the engine lubricant and it is essential that oil is kept clean so that it can perform its task efficiently. This filter needs to be cleaned every 3000-7000 miles.
Change the oil
It is again very important to change the oil every time you are servicing your own car. This task can be a bit nerve-wrecking and you need a mechanic most often. Do not worry since this is not too much an expense and will require you to pay $25 approximatelyto your mechanic.
Replacethe car fluids
While servicing your own car, next thing you need to do is replace all the fluids of the car and these include engine oil, windshield fluid and motor oil. It is simple to see when you need to replace these fluids using dipstick. So learn this usage so you can avoid unnecessary expense.
There are a lot of other things such as battery and wiper blades that require a change from time to time. By learning this process of servicing your own car, you can indeed save a fortune!
Car maintenance: Can you or should you do it yourself?
Some types of maintenance you absolutely should do yourself. An example would be tire inflation. Check the tire pressure regularly, and add air to any tire that is low. Low pressure in one or more tires reduces gas mileage and makes the tire wear out a little faster. Simple things like checking oil and coolant levels should also be performed by the owner.
Oil changes and lubrication are a bit more complex and should probably be done by professionals. These services are quick and cheap. You might save 5 or 6 dollars by changing your oil yourself but you will spend an hour or so doing it, you will get dirty, and you will have to deal with the old oil and filter. It is a simple task and you can certainly do it yourself, but it is hardly worth it.
When it comes to things considered minor repair, it just depends. If you need a timing belt, and you have the tools and the know-how to install a new one, by all means do it. It can save you 200 to 400 dollars (depending on your car model and who does the work for you; auto dealerships have certified, trained professionals but they are by far the most expensive places to have work done). Likewise with brakes. If, for example, you need to repair disc brakes, and you are knowledgeable and experienced in diagnosing problems with disc brakes and installing pads and calipers and having rotors turned or replacing them, then you can save a chunk of money by doing it yourself.
Beware of tackling a project that is above your knowledge and skill level. There was a sign on the wall of the Triumph motorcycle shop in Austin, TX in the early 1970’s that read:
Labor is an hour
If you watch– an hour
If you help– an hour
In other words, if you need a professional to do a job, hire one and let him do it. If you try to do it and botch it and then need to hire somebody, it will probably cost you more than if you had let it alone and hired a pro to begin with.
I was in Sears a couple of years ago, waiting to have a set of new Michelins mounted on my car. A guy was at the service desk arguing about the the price they had estimated for brake repair on his late-model SUV. He insisted his wife had called and was given a price over the phone that was substantially less than the price they were giving him. The agent patiently explained that they never give a price quote over the phone for something as variable as a brake job, because they cannot know the specific parts and labor required until they examine the vehicle. He told him the estimate he had just given him was for specific parts and procedures, which he listed in detail, and that if more was needed it would cost more. The guy said the parts he had purchased and installed himself were much lower-priced than the ones Sears wanted to use. The agent stopped him and asked, “Did you try to do this job yourself?” The man said he had, and obviously had not done it right. The service agent started to laugh, and told him that if they had to track down and correct the damage he had done in addition to the regular work, it would definitely cost more than the estimate, maybe a lot more. The point here is that if you have the knowledge and the tools to work on your car yourself, by all means do it and save some money. If you do not know what you are doing, it could be a very expensive education.
Windshield wiper blades, fuses, light bulbs, and any fluids that need to be topped off are all things you should take care of yourself. If your transmission is making a funny noise, have it checked out by a professional. If white smoke comes out of your tailpipe and your engine overheats, you probably need a head gasket, and that is not a job for a handyman. By all means save some money by checking what you can and doing what you can do yourself.
Related Minor Car Servicing Articles
While not everyone is blessed with incredible mechanical skills there are many aspects of auto servicing you can do yourself to save big money over having work done by a professional mechanic. Although the large automotive repairs are best left to those with the skills, time and tools to complete the task at hand correctly, the minor preventative auto servicing you can do yourself is in most cases simple and quick. Over the long haul servicing your own auto can save big sums of money when viewed in the proper perspective, and best of all there is a sense of independence that comes along with doing tasks without help.
The normal auto servicing you can do yourself to save big begins with a chore as simple as keeping car tires properly inflated at all times. It is perhaps the easiest of all auto servicing you can do yourself, and considering a new set of tires can easily cost over 0 you will absolutely save big money. Every time you fill the tank with gas take a few extra minutes to check the air pressure in the tires – properly inflated tires give a smoother ride and increase gas mileage which also saves big money.
Oil changes are another aspect of auto servicing you can do yourself to save big money. Buying motor oil by the case as well as oil filters can save as much as 50% over the price a mechanic will mark-up the items, not to mention the labor and tax involved. The same goes for flushing the radiator and refilling it with anti-freeze – a very simple task using products bought in bulk that demonstrates how auto servicing you can do yourself will save you big money.
The area of auto servicing you can do yourself to save big money also includes changing spark plugs. It is a very easy chore to buy a set of spark plugs and a gap setting tool and change the plugs yourself using a common socket set. Auto servicing you can do yourself to save big also includes changing headlight bulbs that have burned out. A half dozen screws are about all that need to be removed, the new bulb is installed, the screws are replaced and the job is completed in less than 15 minutes. Take the same problem to a mechanic at the dealer and you’ll probably faint when the bill is delivered.
Auto servicing you can do yourself to save big is really all about knowing your limitations and working within them to enable success and savings. While the money saved with each task may not seem like much at the time, the auto servicing you can do yourself will save literally thousands of dollars over the life of a new car.
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A little history into my vehicles and why I have a great knowledge of automotive buying and selling. I have owned a lot of cars over the last 8 years since I got my drivers license none of them have been more then your average 0 beater with a heater. I usually replace my vehicle every 6 to 8 months because they have become just to costly to repair. I have owned a: 87 Olds Cutlass, 88 Cadillac Coupe Deville, 92 Pontiac Sunbird, 3 89 Toyota Tercels, 89 Chevy Corsica, 86 Chevy Celebrity, 86 Dodge 600 Convertible and my 88 Honda Civic.
Today I’ve decided to share with you the experience I’ve had with my current car which is a 1988 Honda Civic sedan. I have nicked named her the energizer bunny of cars and once you read this article you will understand why.
The story of the Civic begins when I was driving an old leaking convertible, so I began looking through the local websites for at least a beater with a roof that didn’t leak. I came across a little white Civic sedan listed for 0 as an a to b beater or parts car so I emailed about it. The guy got back to me later on that day and let me know that he just wanted it gone and I could have it for . Unfortunately at the time I did not have so I told him this in my next email and asked if he could hold it until I did. He emailed me back shortly after saying he didn’t really need the money or the car and it needed some work so I could come and get it free of charge. Needless to say I was excited so I scheduled to pick it up a few days later but I didn’t get my hopes up knowing the chances of a free car being road worthy were slim to none.
When we went to pick it up it was sitting on the side of the road in front of his house my boyfriend already had it running and the guy handed me the paperwork for it. I was surprised to see that for the year it was in excellent condition except for some minor rust and a very broken tail-light. Now for the fun part the Civic was a standard transmission and I had a general idea how to drive one but never really had. After what felt like a million times of stalling her I finally got her going lets just say it was an interesting drive home with my boyfriend following me in his pickup and laughing at me the whole way home. We decided afterwards that he would drive and we would take it out for a spin and discovered she had a fare bit of sputter in the low rpm range which we later discovered was due to an oil leak from one of the seals between the valves of the car. The leak was causing oil to leak into one of the spark plug tubes which was a quick and easy fix with some gasket maker.
Since the fix of the oil leak which did take us about a month to figure out the car ran a lot better but still had a sputter to it. I went out and purchased some new spark plugs and wires which I installed myself. I took her for a burn right afterwards and it was like driving a totally new car no more sputter. When I went home I looked at the dates on the wires that were on the car before I changed them they were dated 1988 the same year as the car. The plugs and wires had never been changed and the car had 316,000km on it. I was amazed that she was still running with such a severe lack of maintenance.
I’ve owned this car since Nov 2009 and I drive it everywhere the only other problems I’ve had with it is my starter went, my heater motor quit and my rad developed a small pinhole leak which I quickly sealed. I have driven it everywhere without hesitation and it has never let me down. As I stated before it had 316,000 when I got it and is now sitting at 331,000. I have also done some other work to it included replacing the broken tail-light and covering the minimal rust so it would not get worse which can be done with basic rust paint.
Since I got her she has seen twice a week washes, regular interior cleaning, oil changes, any required maintenance, some fun decals to dress her up a bit and the respect a 331,000km car deserves. I baby her and she has never seen any abuse under my hand and she thanks me with her continued reliability. I couldn’t care less that’s she’s not a real looker or a fast little sports car but I’m proud to drive my Honda I can’t honestly say I’ve ever owned a better car.
I will be purchasing another vehicle in the next little while and it will be the first one I can really afford to spend some decent money on but I will remember how my little Honda served me so well and so faithfully no matter what. The Honda will be staying in my family I’ve decided to pass her on to my sister who turns 16 April of 2011 for her first car because there isn’t another car I would feel better about her driving I know the Honda will go on to serve her well and then on to my brother when he gets his license in a few years.
I will be sad to see my Honda go I never knew why people loved their Honda’s so much till I got mine. I can see why these cars invoke such an extreme loyalty to the brand. Honda knows what they are doing when they build a vehicle and I have no doubt that my car will faithfully see 400,000 and beyond and will give many mores years of faithful and reliable service after we part ways.
The point I want to get across by writing this article is that a Honda even with high mileage and what might not seem like much of a car can have some really great potential with a little work. My car has honestly proven to me over the last 9 months that she was well worth the 0 I’ve put into her and has shown me the true faithful reliability Hondas are known for and has proven herself to be the energizer bunny of cars. It is a car that would have probably ended up in a scrap yard somewhere because of a few minor issues that cost next to nothing to fix.
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Step 1: Where to Find The Vehicle of Your Choice
Step 2: Making the Initial Contact (Common Questions and Answers)
Step 3: The Face to Face Presentation
Step 4: Closing the Deal
Step 5: Paperwork and Insurance
Suggested “Assignment Agreement”
Telephone Information Sheet
Power of Attorney
Uniform Commercial Code, Article 9, Section 311
PROBLEM: A person has a car he no longer can afford. It may be about to be repossessed.
PROBLEM: Another person has a “Bad Credit” history and cannot buy a car, but can well afford to make
the payment on a recent model vehicle.
SIMPLE SOLUTION: Put these two people together. One person will assume the other persons payments
NEW COMPANIES EMERGED
A few years ago an industry emerged that served the needs of individuals who have had past credit
problems, but can now afford monthly car payments. These companies helped people with past credit
problems such as:
No Past Credit History
Many Other Problems
These setbacks are held against these individuals by lending institutions for up to seven years.
WHAT THESE COMPANIES DO
These companies would find vehicle owners who can no longer afford their monthly payments. These
owners would gladly allow someone to take over payments on their vehicle in order to save their credit,
with no credit check.
These companies charge the Buyer/Assignee between ,500.00 and ,000.00 for their services just to
put these two parties together, without doing a credit check.
This information package gives you all the simple secrets on how these companies perform their services.
You can save the ,500.00 to ,000.00 fee that they would typically charge.
With your persistence and guidelines in this information package, you can get the recent model vehicle
that you want, without paying any fees or down payment.
(NOTE: This information will not assist you in going to a new or used car dealership to get a car. This
information is intended to target individuals wishing to sell their vehicles to an individual buyer, one on
THE SELLERS DIFFICULTIES
Ideally, these sellers would like to sell their vehicle for the bank payoff amount. Several factors may be
preventing them from doing this:
A. They have high mileage.
B. They are unable to show their vehicle to a prospective buyer (because of work, school or other
C. They are in an area experiencing a soft used car market.
D. They put very little money down when they bought the car and still owe more than the book value
E. They financed their car for a long period of time (6072 months) and have not built enough equity in the
F. The biggest reason is they cannot sell their vehicle because they simply owe more on the vehicle than
the vehicle is worth.
THE OWNERS CHOICES
A. They can sell their car for market value, then pay the lien holder the difference of what they owe, (in
cash). This could cost the owner several thousands of dollars up front.
B. The second choice, which has recently gained in popularity, is letting the car go back to the lien holder.
(If the dreaded repossession choice is used, the owner will have a seriously damaged credit history for
YOU AND THE OWNER CAN HELP EACH OTHER
You help the owner by taking over his or her monthly obligations (car payments and insurance), and the
owner helps you by putting you into a recent model vehicle. You both help the lien holder because you
will be making the payments on time and the lien holder will not have to take a big loss on the vehicle by
SUGGESTED ASSIGNMENT AGREEMENT
The Suggested Assignment Agreement included in this information package is a suggested agreement
only. There may be provisions added to or deleted from the agreement between you and the assignor
(owner) to make the transaction acceptable to you both, but remember, it is intended for you to use as a
guideline only. The Assignment Agreement is between you and the owner of the vehicle. The vehicle
remains titled in the owners name until all payments are made and the original loan is paid off. At this
time, according to your Assignment Agreement with the owner, he/she has to sign the title over to you
within thirty (30) days after the car is paid off.
LIEN HOLDER PURCHASE AGREEMENT
This type of transaction is very common with Real Estate. Typically, the owner of a house will rent his
property and still be solely responsible for the monthly mortgage payments. The payments are being made
even though the owner is not living in the house. The renters have a contract between them and the owner,
not involving the mortgage company. Some purchase agreements from the lien holders may have
provisions against subleasing or assignments , claiming it would be a default of contract. Many disregard
this provision and do not contact the lien holder for their approval, claiming that as long as the payments,
insurance and vehicle maintenance were maintained, the assignment of the vehicle would fulfill the lien
holders requirements, and it would not be necessary to inform the lien holder of the transaction. We
recommend that you contact the lien holder in writing to inform him about your agreement.
YOUR SUCCESS IS GUARANTEED
Using this system, an individual can obtain a vehicle on merits such as character and ability to pay, rather
than credit history. There are no turn downs. Everyone qualifies because a credit check is never run. Your
success is guaranteed.
Remember, you must be persistent, make several calls, and always project a good image over the
telephone and in person. This information is not intended for purchasing a vehicle from a new or used
automobile dealership. It is not our intent to give legal advice. Each state has different laws. If you have
any questions pertaining to state or local requirements, contact your State Department of Motor Vehicles
or your attorney.
UPSIDE DOWN OR NEGATIVE EQUITY
Let us take this opportunity to explain what is meant by upside down or negative equity. Lets use the
following as an example: Say the owner of a car owes ,000 to the bank for the payoff of his car. The
average retail value of the car (what a car lot would sell the vehicle for) is only ,000. If the vehicle is
selling at a car lot for ,000 then few people would be willing to pay them the ,000 that they owe.
The loan value on this car (what the bank will loan someone with good credit) may be only ,000. This
means that if a person with good credit wanted to buy this car for ,000, they would have to borrow
,000 from the bank and would have to come up with another ,000 in cash to satisfy the lien holder.
Payoff to Lien Holder ,000
Average Loan Value $ 8,000
Average Retail ,000
Difference or negative equity (in cash) ,000
The seller will have a difficult time finding someone who is willing and able to put ,000 in cash down
for a used car. A buyer with good credit can go to a dealership and get a new vehicle with only a few
hundred dollars down. So, the chances of the owner selling the car to a person with good credit are very
By explaining upside down or negative equity to the owner, you will let him know why he is having
problems selling the car and that he may only have three (3) options left at this point. The owners options
Option #1: Sell the car for market value of ,000 and pay the bank ,000 out of his own pocket.
Option #2: Turn the car back to the lien holder for repossession and not pay the lien holder the difference
of ,000. This option will ruin the credit status of the owner for seven (7) years.
Option #3: He can let you assume his responsibilities of payments and insurance, save his credit status
and not have to pay the negative equity of ,000.
LISTED ARE THE “FIVE (5) STEPS” YOU WILL NEED TO FOLLOW
STEP 1: WHERE TO FIND THE VEHICLE OF YOUR CHOICE
You can find the vehicle of your choice in the auto want ads of your local newspaper, auto trader
advertising magazines, or any other publications that list vehicles for sale.
(NOTE: Finding an individual who is upside down or in a negative equity situation on their vehicle loan is
easy. Most cars within the first three years of their finance contract are in this situation. You may even
have a friend of family member in this situation. It goes without saying that a friend or family member
would be ideal under these circumstances).
NADA BOOK (NATIONAL AUTOMOBILE DEALERS ASSOCIATION)
Your local library will carry a NADA book. This book will give you the average retail price of any
particular car model. The NADA book is published monthly. It also gives you the amount that most banks
will finance on those models. If the payoff amount on a car is more than the NADA retail book value, then
you will know this seller is in an upside down position and will be very interested in talking to you.
THE EASIEST PEOPLE TO WORK WITH
The easiest owner to work with is one who is considering letting his car go back to the lien holder for
repossession. You can find these owners in your local newspaper or local car magazine. Best results are
obtained in aging these issues for two or three weeks before calling. The owners will always become more
flexible the longer they try to sell their vehicles if you focus on ads proclaiming “Take over payments” or
“Down and take over payments”. These are individuals who realize that they are in a negative equity
situation and cant sell their vehicle outright. Even though their ad requests a down payment, they will
almost always waive it.
Most lenders who recommend to the seller that he finds someone to take over his payments will still hold
this individual liable for the payments if there is a default. Many of these lenders will request an
application to be submitted from the assignee.
If the seller (assignor) has been making his payments on time, the lien holder may want to keep him in this
vehicle. They will want the assignee to have a stronger credit rating than the assignor, before they will
give their approval at all.
Traditionally, the companies mentioned earlier do not even contact or go through the lien holder. The
assignor still remains liable for the payments, whether or not an application is submitted.
This arrangement allows the owner to monitor his own payments so he is actually more secure, as is the
The companies contend that under the Uniform Commercial Code, Article 9. Section 311, the owner of
a vehicle has the right to assign his property regardless of provisions in the original purchase contract by
the lien holder (which might claim such a transaction to be in default). The lender will always hold the
original owner primarily liable for payments. Even though the payments are submitted by the assignee, the
lender will still acknowledge the assignor/owner as the driver and owner of the vehicle. This because, the
assignment agreement is between the assignee/buyer and assignor/owner, and not between the
assignee/buyer and the lender.
STEP 2: MAKING THE INITIAL CONTACT
When you have identified several cars that you have an interest in, you are ready to make the initial
contact with the owner. Throughout this conversation your goal will be to find out if the owner is in a
negative equity position (or upside down) on their vehicle. Best results are obtained if the owner is just
asking for what he owes on the car.
A TYPICAL PHONE CONVERSATION MAY GO AS FOLLOWS
Caller: Hello, I m calling about the car you have advertised in the paper. Is it still for sale?
Owner: Yes, its still for sale.
Caller: Can you tell me about it, what color, mileage, options, etc. , (refer to your telephone information
sheet). Are there any nicks or scratches?
Owner: (The owner will normally give you all the information, except for the price of the vehicle.)
Caller: How much are you asking for the car?
Caller: Is that what you owe on it?
Owner: (Answer) Yes or No
Caller: (If the answer is Yes, ask how long he has been trying to sell the car). The reason Im asking these
questions is because I would like to take over the payments on this type of car. How much are your
monthly payments? (Try to get a feel for how badly he wants to get out of the car. If this vehicle sounds
appealing to you, and you sense the owner is flexible, set up an appointment to look at the car).
(If the answer is No, the owner may have put a large down payment on the car, and it may not be in a
negative equity situation, or he may not owe anything on the vehicle at all.)
You will typically have to make twenty or more phone calls to find a vehicle owner willing to assign his
vehicle. One very important thing to remember, be persistent keep calling. There are thousands of
desperate people needing to get out of their vehicles in every area of the country. Its also a good idea to
call the owner back a week or so after your first contact. The longer he sees that he cant sell his vehicle,
the more eager he will be to work with you.
STEP 3: THE FACE TO FACE PRESENTATION
The owner will normally want the car out of his name. His credit is riding on your making the payments.
You will need to show him that he is secure and protected in dealing with you. When meeting face to face,
it is extremely important that you present yourself in a professional manner. Treat this meeting as you
would a job interview. This person is essentially giving his approval of you to assume his ,000.00 to
,000.00 investment. Look Sharp.
Once you have seen the car and feel that it is what you want, you are ready to make a proposal. Explain to
the owner that you earn more than enough income to afford this car payment, but you cannot get financing
from a bank because of some credit problems that you had in the past. Tell the owner strengths about
yourself that show your stability and credibility, such as:
Length of residence in your house or area
Length of current employment
Job description or job title
Home ownership if applicable
The reason for your credit problem
If you paid back past creditors
What your income level is with bonuses, future pay raises or possibly a job promotion
Describe what makes you a good risk. Let the owner know that you are building his equity in this vehicle,
until you pay it off. The more payments you make, the less will be owed on it. Give him a copy of the
enclosed credit report, personal references and a copy of your drivers license. Allow him to verify your
employment and that you make your rent or mortgage payments on time. Show them a copy of the
suggested Assignment Agreement.
COMMON QUESTIONS ASKED BY THE OWNER OR ASSIGNOR AND ANSWERS TO
Question: What if you wreck the car?
Answer: The insurance company will issue a check with both your name and the lien holders name on it.
This check will be applied towards repairing the vehicle.
Question: What if you get a ticket while driving this car?
Answer: Any points are charged to my individual drivers license, not to the car.
Question: What if you hit someone?
Answer: The Suggested Assignment Contract states that I am driving the vehicle, and am responsible for
all liabilities. Your liability is limited because I will carry 100/300/50 liability coverage or whatever your
Purchase Agreement with the lien holder requires, which will protect you. As the owner of this car, you
are put in the same position as an independent leasing company or car rental agency. You own the car, but
you are not driving it.
Question: How do I know that youll make these payments?
Answer: Youll receive a cashiers check or money order made out to the lien holder at least ten days before
your payment due date. If Im late, you have the legal right to take the vehicle back. Believe me, I dont
want to lose it. The agreement basically states that I will make the remaining payments or pay it off early.
As long as I do this, you are under contract to sign over the title to me. Nothing hidden, no surprises, its
fair and legally binding.
Question: Why do my tags stay on?
Answer: You are still the legal owner, just as leasing companies and rental agencies are. I am the one who
is primarily liable for what happens while its in my possession.
Question: What if you move and cannot be located?
Answer: You have a list of personal references, my drivers license number and my social security number.
Any repossession firm could track the car in a matter of hours. I can understand your concern, but let me
assure you that I have no intention of going to jail for car theft.
STEP 4: CLOSING THE DEAL
Once you have satisfied all the owners questions, and have subdued all fears, you need to get a
commitment. If the owner will not commit and wants to think about it, find out when the due date is for
the next payment. The closer he gets to the next payment, the more flexible he will become. If the owner
remains undecided, you may try offering him concessions. You could offer to make a whole payment or
two payments in advance. He may request some kind of security deposit, which would be held for
damages. At this point, be creative and willing to empathize with the owners concerns.
STEP 5: PAPERWORK & INSURANCE
LIMITED POWER OF ATTORNEY This form needs to be signed by Assignor and notarized by a
Notary Public. It gives the Assignee the authorization to sign on behalf of Assignor in matters concerning
the vehicle. (To be attached to registration)
SUGGESTED ASSIGNMENT AGREEMENT The provisions recommended in this agreement are
meant to protect both parties. If individual concerns are not covered, they can be added while others can
be deleted. This agreement is only meant to be a guideline for constructing your own finalized contract.
CREDIT INFORMATION SHEET The Assignor will need some information on the Assignee just for
his protection. If the Assignee does not make payments, the Assignor will be able to give this information
over to a repossession firm on the Assignee just for his protection.
INSURANCE Insurance regulations differ widely from state to state. The simplest and most widely
accepted structure for this arrangement is as follows:
List the owner as primary insured and assignee as additional insured. The loss payee will always be the
lien holder. The policy address can be that of the assignor or assignee.
Insurance can remain on the existing owners policy by just adding the assignee as an additional insured.
The owner may prefer to set up a new policy so that the assignees driving record will not affect the rates
that he pays for his other vehicles.
Recommended liability limits of 100,000/300,000/50,000: 100,00 maximum limit of liability per person,
per accident; 300,000 maximum limit of liability for all persons per accident; 50,000 maximum liability
limit for property damage, per accident. These higher liability limits normally will account for a minor
increase in rates.
If the assignor has a poor driving record, that would make your insurance premiums prohibitive; however,
you do have some options. Some insurance companies will allow you to list the Assignee as Primary
Insured and the Assignor as NonDriving additional insured. They will treat the policy just like a normal
lease. In the place of the leasing company, they will insert the name of the Assignor. The Loss Payee
remains the bank or lien holder. Let the insurance company know that you have the Power of Attorney for
If this is the direction that is most economical for you, then you may want to find a creative,
knowledgeable agent (this is not always easy). Many agents may reject your policy without fully
understanding the relationship or legality of it. We recommend talking directly to the underwriters if the
agent does not seem knowledgeable. If you do set up your policy in this manner, then you may want to
contact the Department of Motor Vehicles in order to see if a lease tag can be issued in your name without
changing the title.
Each state has different systems. We have found that the following is the most common.
Register Vehicle in Assignors name in care of Assignees name and address. Keep Limited Power of
Attorney with registration. In most states, limited power of attorney along with the assignment contract, is
sufficient to register a vehicle. Registration and license plates are to remain in Assignors name, (normally
leave the same license plate on the vehicle).
Assignor will receive all property taxes on vehicle and then forward to the assignee.
ASSIGNOR Person who has vehicle for sale or who wants to be relieved of monthly payments and
ASSIGNEE Person who wishes to assume assignors responsibilities of payments and insurance.
ASSIGNMENT AGREEMENT Agreement between assignor and assignee.
UPSIDE DOWN VEHICLE A vehicle in which the payoff is greater than the book or loan value of the
vehicle. (Also referred to as negative equity.)
LIEN HOLDER The lending institution that financed the vehicle for the assignor.
PURCHASE AGREEMENT Purchase contract between lien holder and assignor signed at the time the
vehicle is purchased.
LESSOR A person leasing an item to another person.
LESSEE A person leasing an item from another person.
ODOMETER Mileage indicator stating exact mileage on a vehicle.
ODOMETER DISCLOSURE STATEMENT A form required by Federal and State law indicating the
actual mileage of a vehicle upon transfer of ownership.
NEW COMPANIES A company that finds a vehicle owner, who must relinquish his vehicle because it is
close to repossession, and then finds a third party to assume the vehicle owners responsibilities of
payments, insurance and maintenance.
NADA BOOK (National Automobile Dealers Association) A monthly publication found in most libraries
that lists average retail selling prices and bank loan values of late model vehicles.
SUGGESTED “ASSIGNMENT AGREEMENT”
This agreement is made and entered into the date indicated below by and between (assignee) and
(assignor). Whereas the assignor holds legal title or interest to the vehicle described below and has same
financed with (lender) having agreed to pay lender (monthly) for another months (note payments) with a
residual amount of (if a lease). Whereas, the assignor is desirous of assigning or selling the vehicle and
assignee is desirous of accepting assignment and/or buying the vehicle.
In consideration of the mutual covenants hereinafter made and for other good and valuable consideration
the sufficiency and receipt of which is hereby acknowledged, the parties agree as follows:
1. Assignor agrees to assign the vehicle to assignee/buyer for the term of the assignors note payments due
his lender, and hereby authorizes assignee/buyer to drive same, but only for so long as assignee/buyer is
current in the assignment payments set out below in paragraph two (2). The vehicle cannot be taken out of
the state without written approval from the assignor.
2. Assignee/buyer agrees to pay as assignment payments for such vehicle, the monthly amount of
assignors note payments to Lender, and to pay same by cashiers check or money order made payable to
lender and to mail such payment to assignor at least ten (10) days before the day of each month beginning
on the 199 . Any late payments shall be in default of the agreement.
3. Assignee/buyer agrees to take out and maintain insurance on the vehicle satisfactory to assignors lender
and to name assignor as primary insured, assignee as additional insured and lender as loss payee.
Assignee/buyer further agrees and does hereby indemnify and hold assignor harmless from any damage or
liability arising out of assignee/buyers use of assigned vehicle.
4. Assignee/buyer understands and agrees that should he/she fail to timely pay any of the assignment
payments called for above, or allow the aforesaid insurance to lapse, or should assignors lender declare a
default under its note or loan agreement, or deem such loan repayment or the collateral to be insecure, this
Assignment/Purchase agreement shall terminate at once. Assignee/buyer shall no longer be deemed to be
an authorized driver of the vehicle, and assignee/ buyer agrees to return the vehicle to the assignor or his
agent immediately. Failure to do so shall result in the immediate repossession of the vehicle by assignor,
its agent or the lender or its agent.
5. Assignee/buyer shall have the option to purchase the vehicle upon (a) its full and timely compliance
with this agreement and (b) the payment of all note payments to lender. Thereupon, assignor will deliver
to assignee/buyer the vehicles certificate of title. Default under this assignment by assignee/buyer, or other
authorized termination of this agreement, shall forfeit any option to purchase the vehicle that
assignee/buyer may otherwise have had. Upon full compliance and satisfaction of the lien, assignor will
have 30 days to deliver title to assignee.
6. Normally, legal title to the vehicle shall at all times prior to assignee/buyers proper exercise of his/her
purchase option described above, remain in assignors name and possession if applicable.
7. During the term of this agreement, assignee/buyer agrees to maintain the vehicle in good repair and full
operation condition. Any failure to do so shall be grounds for termination of this assignment/purchase
agreement and assignee/buyer shall be personally liable to owner for the cost and expense of any repair
deferred maintenance, other than for normal use and wear and tear.
8. Upon a 48 hour notice to the assignee/buyer, assignor has the right to inspect the vehicle at a location of
his choice, no more than once a month.
9. Any additional or special provisions applying only to this agreement are written as follows:
10. This constitutes entire contract. This assignment agreement including any addendums or exhibits
hereto which are by this reference made a part hereof, contains the entire agreement relating to the
assignment of the vehicle and shall bind and insure to the benefit of all respective heirs, personal
representative, successors and assigns of the parties hereto except as herein above expressly limited. Any
oral representation or modifications of this assignment agreement shall be of no force and effect,
excepting modification in signed by the party to be charged. No delay or forbearance of assignor in the
exercise of any remedy or right will constitute a waiver thereof and the failure to exercise or a partial
exercise of a remedy or right shall not preclude a subsequent or the further exercise of the same or any
other right or remedy by assignor. Assignor shall have no liability for any delay in delivery of the vehicle
for any reason beyond the control of assignor.
In witness whereof, the parties have executed this agreement as of the ________________________ day
of __________________ 199_____, at
Assignee/Buyer Signature Assignor/Seller Signature
Print Name and Address Print Name and Address
TELEPHONE INFORMATION SHEET (QUESTIONS YOU
SHOULD ASK WHEN CALLING ABOUT A VEHICLE.)
Owner s Name:
Make of Car:
5 Speed Transmission
Number of Payments Remaining:
Full Pay Off Amount:
Are Payments Current:
Address Where Car Is Located:
Owners Phone Number:
SUGGESTION: Make photocopies of the above questions. Then when you call and ask these questions
you will have an easy method of documenting their answers, as well as a convenient record for followup.
1. Make payments to assignor, by money order, cash or bank draft made out to lien holder/lender and
forward to assignor 10 days before due date. (NOTE: Put account number on money order or bank draft.
Assignor will promptly forward this to lien holder in order to maintain his credit status.)
2. Provide copy of insurance, naming assignor as primary insured, assignee as additional insured and lien
holder as loss payee.
3. Notify assignor of any change of address.
4. Provide assignor with credit application (included in this information package) and at least eight (8)
5. Provide assignor with original assignment agreement.
6. Receive all manuals, warranties and other information pertaining to the vehicle. Keep warranty in the
name of assignor.
7. It will be the assignees responsibility to pay for and keep current the collision and liability insurance,
property tax, inspections, permits, and other taxes or fees pertaining to the vehicle.
8. Maintain the vehicle in excellent working condition as described in the owners manual.
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