Can You Modify a Car? – Can You Really Modify a Car?
Can you modify a financed car? The answer is yes. Modifying the finance agreement is one way of saving money when going to buy a new or used vehicle. Most finance companies will not allow for changes in the loan structure once the loan is signed. However, you can make some changes and have some fun while saving money.
One way that many people get around having to modify the finance agreement is to create a separate loan for the modifications. These loans are usually called DIY or Do It Yourself loans. You can use the money saved to pay off the balance on the loan. This is an option for borrowers with good credit because the finance company may not be so willing to approve a loan if you have bad credit. However, there are other options available for those who have less than ideal credit.
Most finance companies will require that you take the time to get the details of your modified car in writing. They will also require a written settlement figure with a balance that you agree upon with the finance company. This settlement figure will be based on the price of the modified car and the interest rate. This is one way of getting around having to modify the finance agreement because you agree to the settlement figure before the negotiations begin.
If you do not have good credit and/or a good settlement figure, this may be a tough negotiation for you. In these situations it is important for you to try to get the lowest possible interest rate for the modified car. You should do this even after you have been approved for the modified car. As a matter of fact, if the finance company lowers your interest rate before you have been approved for the modification, you can use that money to pay down the loan early.
Some other options that finance companies offer their customers who cannot afford the full purchase price of a new or modified car are performance upgrades. Performance modifications, such as lowering the suspension, installing new tires and installing better brakes can help you save money. You will also be helping to keep the car on the road longer by improving its performance.
It is important for you to understand how the finance company calculates depreciation. Your vehicle depreciates over time and the amount of time it takes for the vehicle to be totally depreciated is based on several different factors. These factors include the age of your vehicle, how many miles you have driven it each year, how much you have spent on repairs and tune-ups, and how safe the vehicle is. The type of performance upgrades that you install could affect the way that the auto company measures the worth of the vehicle. So, be careful to read through the fine print on any modifications that you decide to make to your vehicle before you actually go ahead with them.
If you plan to have your vehicle modified so that it meets all of the automobile manufacturer’s standards but you can’t afford the total cost of a new or modified car, you can contact a finance company for a pre-qualified used car loan. The pre-qualified used car loan will allow you to take advantage of a brand new or modified car at a much lower rate than what you would get from a dealership. The difference between a dealer’s financing and a company that specialize in used cars and modified cars is that a dealer’s finance company is not likely to perform any modifications to your financed car unless they are being paid for in advance. A specialized finance company, on the other hand, will perform any necessary modifications to a car as they are agreed upon beforehand.
You should now understand the basics of used and modified cars. Be sure to shop around before you settle on any particular make or model. Also, ask your dealer or finance company for information on any available discounts before you purchase your new or modified car. If you do not have the time to perform all of the research required to qualify for the lowest rate, then you should consider using an auto loan calculator. A good auto loan calculator can help you determine how much your monthly payment will be when you finance a used or modified car.