Car Loans

Truman · by **Truman** » 28 Nov 2009, 17:50

Can you claim interest paid on car loans or other debt on your taxes?

I know you can itemize mortgage interest paid, but all my end of year loan statements and credit card statements are specifying the YTD interest paid. Is that for tax purposes or just to shock the heck out of me?

Jordon · by **Jordon** » 28 Nov 2009, 17:50

They should be shocking the heck out of you.

what you need to do is pay all of those off and keep them that way -- then you'd have all of that money to invest for your retirement.

which is exactly what we did. retirement will be pretty soon here and we're not worrying about where the money will come from.

Yoko · by **Yoko** » 28 Nov 2009, 17:50

Is it possible to refinance your home and include your car loans and credit card debt in the refinance?

With no money down? This is our first home and we've owned it for 4 years and looking to refinance.

Mirian · by **Mirian** » 28 Nov 2009, 17:50

Very bad idea. You take unsecured credit card debt and a car loan and put that all into your mortgage and you'll be paying on it for the next 30 years. Stringing it out means you'll pay a lot more interest.

Many people do this but turn around and run the credit cards right back up. And of course, you will need to buy a new car long before that mortgage is paid off. Now you have that bigger mortgage and all theother debt. If you can't keep up, you could lose your home.

If you refinance, do it to lower your interest rate. That will lower your payment and free up cash to throw at that credit card debt.

Keli · by **Keli** » 28 Nov 2009, 17:50

Does anybody know what the usury laws for car loans in Illinois are?

I know the usury law in Illinois is 9%, but everywhere I try to research for bank and auto loans, it says that can be a different rate, but nowhere does it say what the highest rate allowed by law is. Can anyone help on this matter? Thanks so much!

Lorrie · by **Lorrie** » 28 Nov 2009, 17:50

The key is that the highest rate allowed by Illinois law for banks domiciled in Illinois is 9%. However, states do not have teh power to regulate interstate commerce, so a bank which is domiciled elsewhere but does business in Illinois has the option of charging either the 9% Illinois maximum rate or the maximum rate as set by the state in which the bank is domiciled (is registered). Since a number of states have no usury laws (Delaware and Georgia for example), this is where banks tend to domicile and as such, they are not regulated by usury laws where they do business.

Hanh · by **Hanh** » 28 Nov 2009, 17:50

My younger brother is 17. He wants a car and neither his mom or my dad will co-sign for him. My husband and I told him we would, but my brother's mom told him that he can't legally get a loan without her concent. I used to work at a bank and I know that minors cannot open a bank account without an adult, but the adult does not have to be the minor's parent.

I have been searching the internet for the law in Illinois regarding this issue, and I can't find anything. Can someone help?

Buck · by **Buck** » 28 Nov 2009, 17:50

Since he is a minor, he cannot enter into any kind of binding contracts until he is 18. There is nothing that states that the adult co-signing a loan for a minor HAS to be a parent or guardian. The only thing is, if he defaults on the loan you will then be responsible for the loan (but since you used to work @ a bank, you should already be aware of what you are getting yourself into if he defaults on the loan).

If you haven't considered this yet- he's going to be in the same position when he goes to get insurance & his tags for the car. Can't due to being a minor.

Good luck.

Mica · by **Mica** » 28 Nov 2009, 17:50

Why does the blue book and bank loan prices differ on car loans?

I'm researching a used car. Kelly Blue Book and NADA guides state the value of the car at between $5500 and $6300. I've haggled the sale price down to $4800. However, the bank Ive spoken with about the loan says they can only loan $3500 on the car. Why is there such a discrepancy between the estimated value and loan value?

Kit · by **Kit** » 28 Nov 2009, 17:50

They are protecting themselves - if they need to repossess the car because you don't pay the loan, they want to sell it quickly to a wholesale buyer, which yields them less money than a retail sale would.

I've had good luck here...

http://auto.deal4-you.com

Best wishes

Car Loans

Can you claim interest paid on car loans or other debt on...

Is it possible to refinance your home and include your car..

Does anybody know what the usury laws for car loans in...

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Why does the blue book and bank loan prices differ on car...

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