Car repossession can be embarrassing, but if you’re not paying your bills, you’re going to find that you owe the bank, since they are the ones that are lending you the money for your car.  They have the every right to get their car back.

Now, if you’re wondering about car repossession laws, here are a few that you should be aware of.  The more you know, the better it will be, when you’re trying to get prepared for the process.

It is bad for your credit – If you get your car repossessed, it’s going to hurt your credit very badly.  You will find that this will stay on your report for more than 7 years.

Bankruptcy won’t help – If you’re filing bankruptcy, this won’t matter until everything is settled.  The car repo team can still take away your car.

Can I go to jail? You can go to jail if you don’t give up the car, or assault the individual that is trying to take the car.  As long as you give up the car without a hassle, you will avoid jail time.

Can I get my car back? Absolutely.  You will have to send in money to your bank and most of the time, you will have to get up to date, or even owe for the future.  Once this is done, you can pick it up at the nearest office.  Keep in mind that if you take too long, the car will be sold.

Generally, if the lender is going to sell the car, they are going to give you a date, in which, you can act on.

Talk with the lender - If you know you’re going to be late, talk with the lender.  Most of the time, they will appreciate your honesty and try to work something out for you.  You don’t want to just hide under a rock and skip out on your payments.

You can be sued - What is known as a “deficiency”, the lender can take you to court.  For example, if you owed $3,000 on the car and they sold it for $2,000, they can take you to court to claim the $1,000 difference.

When can they repossess? They can generally take your car once you “default” on your loan.  This means that once you miss your payment, they can take your car at any time during the day.  Most lenders will wait for a few months before they act on this though.

Every state has different laws when it comes down to car repossession.  The best thing that you can do is to talk with your lender and know your options.  Hiding the car or running away just won’t help you.

Learn your laws in your local area and by doing so, hopefully you will be able to understand the process a little better.

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You want to buy a new car, that’s great!  Now, before you pick up the phone and start calling dealers, you’re going to want to get your financials straight.  Is it really going to make sense to you?  Should you buy new?

Now, I’m not trying to bust your bubble here, but let’s take a look at a new car compared to a used car.  You will be surprised with the numbers and how you can get more out of your purchase.

Looking at a new car

With a new car, you’re not getting much more than a used car.  Sure, not one hasn’t drove it before, and yes, you can customize it, but once you drive it off the lot, you’re losing money instantly!

The thing with a used car is that while you won’t lose that much money, you’re going to be buying someone else’s misfortune.

Take a look at the math

I’m in the process of buying a new van for my family.  I was able to look at some new, basic Town and Country vans.  I was shocked at the price tag, as I would have to pay $25,000 for a bare bones mini van.

I started searching the used vans and I could find one with 40,000 miles on it for only $17,000!  That’s a $8,000 savings.

Now, you may worry about a used car, but if you buy from a reputable dealer, they are going to do the inspections, and make sure the car is running at 100%.  Sure, while you can’t get everything that you want, you should come fairly close.

How much should I save?

The reason I brought up the used scenario was just to show you how much you can save on top of the money you’re saving.  If you wanted that $25,000 new car, you’re going to have to save a lot more than the $17,000 used car.

Any expert will always tell you that it is best to pay in full, 100% cash.  While a lot of us can’t do this, you will find that 20% will suffice.

If you’re going to apply for a loan, most banks / credit unions will want you put a certain percentage up.  Every bank will vary.

A good down payment is $5,000+.  The more you can save, the smaller your loan payments will be, and the less you will have to throw toward interest!

Leasing a car can be a good choice for some.  You will find that you will get a new car every 2 or 3 years, but the downfall is that you will have to sign into a contact, offer a lot up front, and if you hate it 1 year in, you’re going to be stuck with it!  This is something that you probably don’t want.

Now, if you’re in a lease right now and it is up, you’re going to get the option to buy.  You’re probably going to wonder if it’s going to be a good deal, or not.  Chances are it won’t be, but let’s do the math and see if you should highly consider it first.

Look into the value of the car

What is the car worth?  Check out sites such as KBB to see what the actual value is.  If the dealer is charging you more than this value, you will probably want to run.  Even if it’s slightly less, it doesn’t mean that you’re going to get a good deal.

Do the math – is it worth it?

Leasing is the worst way to get a car, trust me.  You’re going to pay a ton up front, if not, you will have high lease payments.  If you had to lease today, let’s take a look at this example below:

You want to buy a new Camry.

They will require $1,999 at signing, and you will pay $179 a month for 36 months.

After 36 months, you will put $8,443 total into the car.

Now, you will be limited to the mileage as well.  Generally, you won’t be able to go over 12,000 – 15,000 miles.  Let’s say that you go 12,000 miles a year.  This is going to give you a total of 36,000 miles.

If you wanted to purchase a Camry with 36,000 miles today, it will probably cost you around $17,000.  Now, let’s say that you buy the car from the dealer for $13,000.  It seems like a good deal, but when you add the $13,000 on top of the $8,400, you’re going to be paying $20,000+ for the car AND the thing is, I’m low balling on that $13,000 number.  It’s probably going to be way more.

Don’t consider the option to buy

The thing here is to just always buy used, or consider buying new even.  While the best bet is used, you will find that the option to buy will never be a good deal.  Granted, there will be times when it will be, but not always.

Do your math, see if it’s worth it and go from there.  The more you know financially, the better it is for you.

There aren’t that many hybrid SUVs on the market, but the ones that are on the market tend to get some pretty good reviews.

If you’re in the market to purchase a hybrid based SUV, I wanted to give you some comparison notes that you can use if you’re thinking about purchasing the car.  They will all vary in price, as well as gas mileage and more.

Cadillac Escalade Hybrid – 20 city / 23 hwy
MSRP:  $73,000+

Chevrolet Tahoe Hybrid – 20 city / 23 hwy
MSRP:  $50,000+

Chevrolet Tahoe Hybrid 4WD – 20 city / 23 hwy
MSRP:  $50,000+

Ford Escape Hybrid FWD – 34 city / 31 hwy
MSRP:  $29,000+

Ford Escape Hybrid 4WD – 30 city / 27 hwy
MSRP:  $29,000+

Mercury Mariner Hybrid – 34 city / 31 hwy
MSRP:  $30,000+

Toyota Highlander Hybrid – 28 city / 28 hwy
MSRP:  $34,000+

According to US NEWS, the follow hybrid SUVs were ranked as follows with their scores (from highest to lowest out of 10):

• GMC Yukon – 8.5 overall
• Toyota Highlander – 8.4
• Chevy Tahoe – 8.3
• Ford Escape – 8.3
• Mariner – 7.9
• Escalade – 7.6

How to choose the best Hybrid

Don’t be fooled by the MPG.  You’re going to compare other features besides the gas price tag.  It would be foolish to buy a $75,000 Escalade, when you can get an equivalent car in terms of gas mileage for less than $30,000.

The Fuel Economy site created by the government has a great comparison list that you can use to compare what you’re going to spend per year, as well as how good the car is with the environment.  Check the greenhouse and gas emissions.  You can also get test results from the NHTSA (National Highway Traffic Safety Administration)

With these SUVs, you’re going to want to compare the tank size, what you’re going to get on the miles per tank, as well as how much fuel you’re going to use for every 25 miles.  Remember, with a hybrid, you’re going to get better gas mileage when you drive throughout the city.

Compare the 2011 models up above and see which one you may want to consider for your next purchase!

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They say that when you drive a car off the lot, it loses it’s value relatively fast and while this is true 99% of the time, you’re going to find that purchasing a used car is generally the way to go.

Now, if you’re thinking about selling your car in the future, you’re probably thinking of how you can get more out of your car.  While you will never get more than the KBB value, if not, the value, you will find that you can do a few things to get more money for your car.

#1 Detail your car – When you want to buy a car, do you want to show up, get in the car and find out that it smells like cat pee, or smoke?  If you’re a smoker, let your car air out for about 3 weeks.  Get it professionally detailed and let it sparkle.  This investment alone will pay off wonders.  People love clean cars.

#2 Get an inspection – Head to a local dealer or mechanic and have them check it out from bumper to bumper.  If there is anything wrong, get them to fix it.  Like a home, many people will get an inspection to see what is wrong.  Trust me, people will complain about the smallest things out there!

#3 Don’t worry about the upgrades – Generally, alloy rims, a DVD player and more won’t pay off.  It’s not like a kitchen where you can put in granite counter tops and have it pay off down the road.  Keep the car as is, because there aren’t that many features that will pay off.

In the end, you will find that you’re going to have to use the Kelley Blue Book more for a guide.  Yes, while a clean car isn’t going to sell cars for more money, it’s going to tempt more people to bite the bullet and purchase.

Make the car run and make sure everything is working okay.  This is what is going to make your car worth the most in the long haul.