Texas auto loan: Know your rights!
Texas auto loan. Whether you’re taking out a Dallas auto loan or a Houston car loan, Texas law sets maximum interest rates for financing used cars. The rates vary according to the age of the car and the amount owed on it. Texas law also gives dealerships the legal right to repossess your car without prior notice should you default. So, keep your Dallas car loan payments current and your records safe.
Texas auto insurance. Texas law requires that you have adequate liability insurance. Whoever finances your car might offer to include the cost of the insurance in the Texas car loans, but it is your responsibility to have it. Texas car loan lenders might also require you to have collision insurance to cover the balance owed on the car. If it is contractually required and you do not have it, the lender can repossess your car. Car loan Houston or car loan Dallas, before agreeing to allow the lender to obtain insurance for you, shop around. Generally speaking, you will pay less for insurance you buy on the open market than insurance purchased for you. Understand all of your insurance responsibilities before you sign for that car loan San Antonio!
Texas Extended Warranties. Ensure all service promises and guarantees are in writing in the contract. Further, ensure you have a copy in your buyer's guide. If the dealer promises you ANYTHING about the vehicle’s performance, get it in writing. Seller warranties must be in writing to be enforceable be valid. The last thing you want is to sign up for a Houston auto loan only to find you are making payments on a car that doesn’t perform as promised.
Odometer Statement. While federal law prohibits changing the number of miles on an odometer, Texas automotive law requires the seller of a used vehicle to state the total mileage on the title assignment. Ensure you have a copy of this odometer statement when you sign your purchase contract. Houston auto loan or Dallas car loans, ensure the mileage is noted on any car loan contract in Texas.
Texas Certificate of Title. Texas auto dealers are required to register and title your vehicle in your name within 20 working days, regardless of how much you may owe on your Dallas auto loan. Once your vehicle is registered in your name, the dealer should provide you with the original tax assessor receipt. If you took out a Texas auto loan, you will receive a non-negotiable duplicate title by mail. The original will be mailed to your auto lender. If you didn’t take out Texas auto loans chose to pay in full for the car, you will receive the original title by mail.
Texas Lemon Law. Your car may be considered a lemon if a qualified repair technition has made four unsuccessful attempts to repair a defect or problem where two of the four occurred within either 1 year or 12,000 miles. The other two need to have occurred within 1 year or 12,000 miles of the second repair attempt. Alternatively, if a qualified technition has made two unsuccessful attempts to repair a serious safety defect when 1 occurred within shorter of 1 year or 12,000 miles + other occurred within shorter of 1 year or 12,000 miles immediately following first repair; or 30 calendar days out of service within shorter of 2 years or 24,000 miles + at least 2 attempts were made within shorter of 1 year or 12,000 miles. If your vehicle falls into categories outlined above, you must provide the manufacturer written notice. A state-run arbitration process will help you manage the claims process.
Good luck shopping for auto loans Texas!
Need help running the numbers on your Texas auto loan?
Know your Texas auto loan principle amount: Use our Auto Loan Texas Calculator
Know your Texas auto loan payment amount: Try our Texas Auto Payment Calculator
Whether it's a auto loan Houston or an car loan Texas: Try our Texas Auto Loan Rate Estimator
Already taken out Dallas auto loans or Houston auto loans? Keep a couple things in mind!
Stay Organized. Keep all or your Texas auto loan payment receipts and in a secure place. Do not keep them in the car! If it’s stolen or repossessed, your payment history may be lost. Keep Texas auto loan payment records, titles, auto loan contracts, etc. in a safe place for future proof of ownership and performance.
Make timely payments. Your payment history directly impacts your credit score and your cost of borrowing. Get a receipt for each payment. If possible, pay by money order or check, and keep the stubs or carbon. If not, note the declining balance on your next bill. Check the numbers to ensure your payments have been applied correctly. If you’re going to run late, contact the lender and/or dealer. If they let you change the payment date or pay late, get it in writing. Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.
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