The amount of time a person has to pay on a car loan depends on the laws governing the area they live in, as well as on contractual agreements with the car loan company. According to the Federal Trade Commission, some creditors are allowed to seize vehicles the moment the loan goes into default. Usually, default is legally defined as not making a payment on time.Continue Reading
Creditors have discretion on how much time they allow someone to make a car payment. According to Edmunds, grace periods vary according to factors determined by creditors. For example, a person that usually pays on time may be given more leeway than someone that always pays late.
Payment periods may also be discovered by reading the loan contract. Ultimately, the car owner is responsible to contact the lender in order to discuss delinquent payments before the lender takes action. Lenders might be agreeable to an extension of up to 30 days. If such an extension is granted, it is important to note that the car owner has 30 extra days from the regular payment due date.
If car payments extend beyond the due date and a repossession is imminent, car owners should remove all personal items from the car.Learn more about Financial Calculations
The main difference between a home loan table and a car loan table is that while the home loan table follows an amortization schedule, some car loan tables are structured under simple interest-add on schedules, reports HSH.com. Some car loans, however, are also structured under an amortization schedule.Full Answer >
If a borrower defaults on his car loan, most state laws allow the lender to repossess the car without any warning, says Nolo. Borrowers with a poor credit history are generally considered flight risks by both banks and may have as little as 10 days after the default of a loan before the lender comes for the car, warns Edmunds.com.Full Answer >
There is no set amount of time a person has to own a car before they can refinance. The length of time often depends on the lender.Full Answer >
KJE Computer Solutions’ online commercial loan calculator requires users to input details such as loan amount, interest rates and amortization period in years to compute results. Bankrate.com’s more comprehensive business loan calculator asks users for information that includes loan repayment commencement dates and length of loan term in months or years to give the required output. In addition, the web-based number cruncher allows users to generate loan amortization tables and determine the impact of extra payments on their obligations.Full Answer >