Auto Loan - How To Drive A Hard Bargain
by Ronn Jones
Taking an auto loan these days are not much of a matter. However, even in case of an easily available auto loan, one can end up paying a lot more than he should have. So bargaining becomes essential as usually is the case for many other things. A complete control of the bargaining process needs to be in the hands of the buyer. Here are a few tips to handle the bargaining process confidently:
Get pre-approved.
Avoid hassles over financing and focus on prices and rebates by getting your loan pre-approved.
* Tell the loan counselor the type of vehicle you want and the amount you want to borrow. Remember that tax, title and tags will add to the price, so factor those costs in.
* When your loan is approved, you'll probably get a "not to exceed" draft that you can use just like cash when you go car shopping. The draft is good for up to 60 days.
Before taking the loan or going in for the bargain a complete knowledge of the auto loan terms is a must. This will help you understand all the statements and offers clearly and remove any tricky and hidden costs from your bargain.
Negotiate the purchase price
The "sticker price," otherwise known as the Manufacturer's Suggested Retail Price (MSRP), is not what the dealer paid for the car. Ask to see the invoice price--the cost to the dealer when the car is delivered to the lot. The final cost to the dealer is normally even less than the invoice amounting. That's because the dealer gets rebates from the manufacturer of 2% to 3% of the invoice price. Never negotiate down from the MSRP. Always negotiate up from the invoice price. Dealer options--extended warranties; undercoating, rust proofing, upholstery and paint protection; insurance; add-ons; and fees for tags, title and taxes--all add to the price. They're high-profit items for the dealer, and their prices are negotiable. Most new cars today don't need undercoating or rust proofing. Extra warranty insurance is usually less expensive if bought from an insurance company rather than the dealer. If at any time you feel pressured, hurried or confused--leave.
Get it in writing
Make your final offer and state that the price includes all of the agreed-upon items. Get it in writing. Now ask if there are any rebates in effect. After you and the salesperson have agreed on the price, only then should you mention your trade-in.
The trade-in: Do it last
* Determine the real wholesale value of your car in advance. The "Book Price" is an average for trade-in and resale values.
* Clean up your car; drive it to three or four used car dealers; ask them what they'll pay you for it. Check average figures in the National Automobile Dealers Association (NADA) Official Used Car Guide.
* Don't talk trade-in when you are negotiating the purchase price of the new car. Only after you've reached an agreement on price should you ask the dealer what he'll give you for your trade.
These factors not only help to have complete control over the auto loan bargain but also makes the entire process smooth and free of any misunderstandings.
Showing posts with label Auto Loan. Show all posts
Showing posts with label Auto Loan. Show all posts
Thursday, April 9, 2009
Getting an Auto Loan
Getting an Auto Loan
by Jeff Simpson
Before you try to get an auto loan for a car you want to purchase, there are nine questions that you should ask your lender. These are probably the most important questions you will have to ask in order to know what kind of auto loan you are getting, and to make sure you are getting a good deal. After you ask your auto loan questions, if there is anything that is confusing or doesn't seem "just right" to you, you are better off walking away and thinking about before committing to any auto loan that may leave you with regrets later on.
What interest rate am I really paying for this auto loan? The annual percentage rate (APR) is the best way to know what your auto loan will cost you over the next 3 to 6 years. It is the actual interest rate you pay annually on the unpaid balance of your auto loan. This rate will depend mostly on your credit score and credit history.
Are there any penalties on my auto loan? Find out if paying off the loan early will earn you any penalties or extra charges that will occur.
What is the actual price that I'm paying for the auto? This means that you need to know the exact price, down to the last penny that your auto loan is costing you.
What is the total amount that is being financed through the auto loan?
What is the exact amount of each payment if I get an auto loan?
What is the actual dollar amount I am paying just in interest for the auto loan?
What is the total number of payments on the auto loan?
Is there financing from a third party? When at a dealership, they may sometimes tell you that they were unable to get you approved at the auto loan rate they quoted you, but they were able to find a lender to cover the auto loans with bad credit at a higher payment. This is a trap that many people fall into. Know who the lender is before you agree to any auto loan.
What do I need to know about credit insurance? Your lender may require or offer credit insurance. You need to find out if they offer auto loans with bad credit and what it will cost you.
by Jeff Simpson
Before you try to get an auto loan for a car you want to purchase, there are nine questions that you should ask your lender. These are probably the most important questions you will have to ask in order to know what kind of auto loan you are getting, and to make sure you are getting a good deal. After you ask your auto loan questions, if there is anything that is confusing or doesn't seem "just right" to you, you are better off walking away and thinking about before committing to any auto loan that may leave you with regrets later on.
What interest rate am I really paying for this auto loan? The annual percentage rate (APR) is the best way to know what your auto loan will cost you over the next 3 to 6 years. It is the actual interest rate you pay annually on the unpaid balance of your auto loan. This rate will depend mostly on your credit score and credit history.
Are there any penalties on my auto loan? Find out if paying off the loan early will earn you any penalties or extra charges that will occur.
What is the actual price that I'm paying for the auto? This means that you need to know the exact price, down to the last penny that your auto loan is costing you.
What is the total amount that is being financed through the auto loan?
What is the exact amount of each payment if I get an auto loan?
What is the actual dollar amount I am paying just in interest for the auto loan?
What is the total number of payments on the auto loan?
Is there financing from a third party? When at a dealership, they may sometimes tell you that they were unable to get you approved at the auto loan rate they quoted you, but they were able to find a lender to cover the auto loans with bad credit at a higher payment. This is a trap that many people fall into. Know who the lender is before you agree to any auto loan.
What do I need to know about credit insurance? Your lender may require or offer credit insurance. You need to find out if they offer auto loans with bad credit and what it will cost you.
Auto Loan - Bad Credit Auto Loan - Consumer Auto Loan
Auto Loan - Bad Credit Auto Loan - Consumer Auto Loan
by Kamal patel
Are you interested in cooking? Do you love to make fun, new dishes for your family and friends? Do you love the praise and accolades you receive from them? Would you like to have more options to "wow" them with? Why not find some more great cooking recipes!
You can find cooking recipes in a limitless number of places. Some of the most common places you can find them are the internet,the bookstore, the grocery store, and many health food stores. But you can find cooking recipes in special gift shops and in some unexpected places as well. If you want to find cooking recipes right this very moment, you can do so with just a simple internet search! You will find more recipes than you may ever know what to do with! What a wonderful treat and gift for the avid cooking lover!
Cooking recipes are great to collect because you never know when you might want to whip up a special dish for a special occasion. You might even want to throw a party that is centered on exchanging cooking recipes! You could have each invitee bring one of their favorite dishes along with the recipe, or you could come up with some other unique ideas! Make finding cooking recipes fun, interesting and new. Make it a weekly or monthly get together that everyone plans for. Start your own club, the creative possibilities are endless!
Or if you like to have your recipes in a neat, already bound book, cookbooks are great purchases. Many already come with colorful pictures giving you an idea even before you attempt a meal as to what it should look like when it is done. Sometimes when you find a recipe without a picture, you are not entirely sure if it looks like it should when it's completed. Picture cookbooks will be of a great assistance in this respect.
Or maybe throughout the years you have created enough cooking recipes on your own and want to create a cookbook your own! What a wonderful endeavor. Or maybe you have a favorite chef that you follow religiously and you would like to purchase all his or her cookbooks so that you can have their great recipes on hand. You can fill your walls with great cooking recipes and your meals with new, savory dishes every meal!
Maybe you feel a little intimidated by cooking on your own. You have never cooked before or maybe very little. Cooking televisions shows, classes, DVDs, etc. are available for people just like you! You can learn to cook from the comfort of your home or with a room full of people wanting to learn just like you!
by Kamal patel
Are you interested in cooking? Do you love to make fun, new dishes for your family and friends? Do you love the praise and accolades you receive from them? Would you like to have more options to "wow" them with? Why not find some more great cooking recipes!
You can find cooking recipes in a limitless number of places. Some of the most common places you can find them are the internet,
Publish Post
Cooking recipes are great to collect because you never know when you might want to whip up a special dish for a special occasion. You might even want to throw a party that is centered on exchanging cooking recipes! You could have each invitee bring one of their favorite dishes along with the recipe, or you could come up with some other unique ideas! Make finding cooking recipes fun, interesting and new. Make it a weekly or monthly get together that everyone plans for. Start your own club, the creative possibilities are endless!
Or if you like to have your recipes in a neat, already bound book, cookbooks are great purchases. Many already come with colorful pictures giving you an idea even before you attempt a meal as to what it should look like when it is done. Sometimes when you find a recipe without a picture, you are not entirely sure if it looks like it should when it's completed. Picture cookbooks will be of a great assistance in this respect.
Or maybe throughout the years you have created enough cooking recipes on your own and want to create a cookbook your own! What a wonderful endeavor. Or maybe you have a favorite chef that you follow religiously and you would like to purchase all his or her cookbooks so that you can have their great recipes on hand. You can fill your walls with great cooking recipes and your meals with new, savory dishes every meal!
Maybe you feel a little intimidated by cooking on your own. You have never cooked before or maybe very little. Cooking televisions shows, classes, DVDs, etc. are available for people just like you! You can learn to cook from the comfort of your home or with a room full of people wanting to learn just like you!
Is It Time To Refinance Your Auto Loan?
Is It Time To Refinance Your Auto Loan?
by Gregg Pennington
With interest rates near all time lows for the last several years, many people have been refinancing their mortgages, lowering their mortgage interest rates and monthly payments. It is also possible to save a lot of money by refinancing your auto loan.
Auto loans carry much shorter payoff schedules than do home loans, so it is to your advantage to refinance your car loan as early as possible, before a good deal of the original loan has already been repaid. If you are already several years into making payments on a car, the savings will not be as great.
When you refinance an auto loan, you will pay off the existing loan completely and enter into a new loan agreement, which will ideally carry a lower interest rate than the original loan. If your refinance loan has a payoff time longer than what was left of your original car loan, and your interest rate is equal to or lower than your previous interest rate, you will in turn have lower monthly payments. You may opt to take the interest savings from the new loan and apply it toward the principal, thereby reducing your payoff time.
Before you apply for an auto refinance loan, you should determine your credit score. To qualify for a refinance loan, you do not have to have perfect credit, but your FICO score should be at least 550 or higher to qualify for a competitive interest rate.
The next thing to look at is the interest rate on your current auto loan. You want to make sure you will be able to get a lower interest rate when you refinance. If you find you can't get a lower interest rate than you already have, it may not be worth it to refinance, unless you are satisfied to simply extend your payoff time to get lower monthly payments. In contrast, if you are able to knock down your interest rate by several percentage points, you could save thousands of dollars during repayment.
When refinancing a car loan, you will need to know the exact amount needed to pay off your original loan. While some companies offer an auto equity loan with cash back, most traditional lenders will only loan enough money to cover the payoff cost of the vehicle. In either case, you will need to know the payoff balance of your existing loan.
Another benefit of auto loan refinancing is that in most cases you will be able to skip a payment. Because you are entering a completely new financial agreement, there will be some time involved in paying off your original loan and receiving a payment schedule for the refinance loan. This will allow you to effectively skip a monthly payment.
Finally, compare several lenders and get a feel for what kind of interest rate you are likely to get on an auto refinance loan. Rates and terms will vary from lender to lender. Before getting your car loan quotes, collect all necessary personal information, including address and phone number, time with your current employer and salary level, residence history, and contact information. Doing your homework ahead of time will insure that you get the best possible interest rate for your auto loan refinance.
by Gregg Pennington
With interest rates near all time lows for the last several years, many people have been refinancing their mortgages, lowering their mortgage interest rates and monthly payments. It is also possible to save a lot of money by refinancing your auto loan.
Auto loans carry much shorter payoff schedules than do home loans, so it is to your advantage to refinance your car loan as early as possible, before a good deal of the original loan has already been repaid. If you are already several years into making payments on a car, the savings will not be as great.
When you refinance an auto loan, you will pay off the existing loan completely and enter into a new loan agreement, which will ideally carry a lower interest rate than the original loan. If your refinance loan has a payoff time longer than what was left of your original car loan, and your interest rate is equal to or lower than your previous interest rate, you will in turn have lower monthly payments. You may opt to take the interest savings from the new loan and apply it toward the principal, thereby reducing your payoff time.
Before you apply for an auto refinance loan, you should determine your credit score. To qualify for a refinance loan, you do not have to have perfect credit, but your FICO score should be at least 550 or higher to qualify for a competitive interest rate.
The next thing to look at is the interest rate on your current auto loan. You want to make sure you will be able to get a lower interest rate when you refinance. If you find you can't get a lower interest rate than you already have, it may not be worth it to refinance, unless you are satisfied to simply extend your payoff time to get lower monthly payments. In contrast, if you are able to knock down your interest rate by several percentage points, you could save thousands of dollars during repayment.
When refinancing a car loan, you will need to know the exact amount needed to pay off your original loan. While some companies offer an auto equity loan with cash back, most traditional lenders will only loan enough money to cover the payoff cost of the vehicle. In either case, you will need to know the payoff balance of your existing loan.
Another benefit of auto loan refinancing is that in most cases you will be able to skip a payment. Because you are entering a completely new financial agreement, there will be some time involved in paying off your original loan and receiving a payment schedule for the refinance loan. This will allow you to effectively skip a monthly payment.
Finally, compare several lenders and get a feel for what kind of interest rate you are likely to get on an auto refinance loan. Rates and terms will vary from lender to lender. Before getting your car loan quotes, collect all necessary personal information, including address and phone number, time with your current employer and salary level, residence history, and contact information. Doing your homework ahead of time will insure that you get the best possible interest rate for your auto loan refinance.
Tuesday, April 7, 2009
An Insight into Auto Loan
An Insight into Auto Loan
by Prerna Joneja
With expansion in the field of technology and automobile industry every year variety of latest models of vehicles are introduced in markets throughout the globe to attract new customers. There has been an innovative development in the production of cars and so has the need arisen to obtain quick money to finance it. The most suitable and simple way of getting a dream car is by applying for an auto loan.
In today's world having a car or any vehicle has become a necessity for everyone. If a person is planning to buy a car and is short of money or if a person is planning to buy a car on installments the best option is to take auto loan.
The first step of getting a good auto loan is talking and discussing with lenders. The terms of the loan should be well understood by the borrower and he has to make sure that he agrees to them. There can be various points which a person does not like in the terms of the loan, so they should be known to the lenders and should be worked upon.
Various ways to secure an auto loan are:
* Banks/Financial institutions: Now a day nationalized banks and financial institutions provide their customers a wide range of auto loans containing various terms in compliance with their demand. Any person can borrow up to 125% of the assessed value of car. Such loans are generally available for a term of 3-5 years but the term of the loan can be extended up to 6 years if the value of the car goes beyond a certain limit. Generally bank or financial institution grants the loan only after checking the financial position of any individual.
* Online lenders: In order to secure an auto loan a person can browse through relevant websites and compare rates with different schemes with a lender only with few mouse clicks. Such lenders starts the process of granting loans immediately through mails and one finds the best deal knocking his door within minutes at his doorstep.
Various types of auto loans:
* Bad credit loans: Generally a person intending to buy any vehicle must have a good credit score. But, such loans are offered to people with bad credit on a higher rate of interest. One must be smart enough to negotiate a best deal with a suitable lender.
* Unsecured auto loans: This type of loans can be obtained easily without placing any security against the vehicle. Here there is no fear of losing an asset but it carries a higher rate of interest as compared to secured loans.
* Secured loans: Secured auto loans are the loans that are secured by the assets on the car/vehicle that is being purchased. It gives the much needed security to the lender on the lent out money. As the full loan payment with the interest is over the loan amount becomes zero. The main thing is that the person should be regular in paying his installments.
Getting auto loans today should not be a difficult thing to do. Auto loans are available for people of all different credit backgrounds and with different options. It is not hard for buyers to get an auto loan that works for them.
They should be able to find something that fits their budget so that they do not have to end up paying outrageous interest and fees. There are auto loans that are perfect for almost anyone. All it takes to find them is a little hard work. Secure your loan an easy way and take your dreams for a long drive.
by Prerna Joneja
With expansion in the field of technology and automobile industry every year variety of latest models of vehicles are introduced in markets throughout the globe to attract new customers. There has been an innovative development in the production of cars and so has the need arisen to obtain quick money to finance it. The most suitable and simple way of getting a dream car is by applying for an auto loan.
In today's world having a car or any vehicle has become a necessity for everyone. If a person is planning to buy a car and is short of money or if a person is planning to buy a car on installments the best option is to take auto loan.
The first step of getting a good auto loan is talking and discussing with lenders. The terms of the loan should be well understood by the borrower and he has to make sure that he agrees to them. There can be various points which a person does not like in the terms of the loan, so they should be known to the lenders and should be worked upon.
Various ways to secure an auto loan are:
* Banks/Financial institutions: Now a day nationalized banks and financial institutions provide their customers a wide range of auto loans containing various terms in compliance with their demand. Any person can borrow up to 125% of the assessed value of car. Such loans are generally available for a term of 3-5 years but the term of the loan can be extended up to 6 years if the value of the car goes beyond a certain limit. Generally bank or financial institution grants the loan only after checking the financial position of any individual.
* Online lenders: In order to secure an auto loan a person can browse through relevant websites and compare rates with different schemes with a lender only with few mouse clicks. Such lenders starts the process of granting loans immediately through mails and one finds the best deal knocking his door within minutes at his doorstep.
Various types of auto loans:
* Bad credit loans: Generally a person intending to buy any vehicle must have a good credit score. But, such loans are offered to people with bad credit on a higher rate of interest. One must be smart enough to negotiate a best deal with a suitable lender.
* Unsecured auto loans: This type of loans can be obtained easily without placing any security against the vehicle. Here there is no fear of losing an asset but it carries a higher rate of interest as compared to secured loans.
* Secured loans: Secured auto loans are the loans that are secured by the assets on the car/vehicle that is being purchased. It gives the much needed security to the lender on the lent out money. As the full loan payment with the interest is over the loan amount becomes zero. The main thing is that the person should be regular in paying his installments.
Getting auto loans today should not be a difficult thing to do. Auto loans are available for people of all different credit backgrounds and with different options. It is not hard for buyers to get an auto loan that works for them.
They should be able to find something that fits their budget so that they do not have to end up paying outrageous interest and fees. There are auto loans that are perfect for almost anyone. All it takes to find them is a little hard work. Secure your loan an easy way and take your dreams for a long drive.
Tuesday, March 24, 2009
Auto Loan and New Car Buying
Auto Loan and New Car Buying
by Alevoor Rajagopal
Shopping for a new car isn't a cake walk if count the stress, hassles and the big expense involved. Barring buying a house, new car purchase is without a doubt the big ticket purchase perhaps everyone of us make. Buying a new car, however, is not a straight forward activity, especially if you are buying for the first time.
When you set off, you must be clear in your mind whether you need to go for an auto loan or whether you can pay from your savings. If you decide to go for car loan, there are many options before you and one of which is having the finance arranged through the dealers which they do from their regular bankers. However, if you have time and patience, it is a good idea to explore the possibility of arranging finance from one of your known credit unions as they are known to be cheaper than banks. In any case, what you must keep in mind is that all these charges are an additional cost you.
Before signing on the dotted line make sure that you have read and understood their terms conditions and all surprising charges entirely. If you think you need a clarification, take a friend's advice. It is important to understand that having signed on the paper you are bound by their terms which is final. A hasty step, on your part, can be an expensive move than buying a new car itself. Buying a new car and car loan are all about patience, perseverance, preparation and some nerve wracking hard bargaining. The whole process of buying a new car can only be compared to buying a home for all the grind both of them possess. Your new car buying can be a pleasurable experience only if you are calculative to shop smartly and have time to do it.
New Car Loan - Critical Points to Mind Judging a car loan, given the myriad of lenders and products, can be equally hard as judging a car itself. A new car financier will always extend loans to buying a new car. However, when negotiating with them, remember not to focus too much on the monthly payment, which the lenders always push you towards. It is prudent to remember that new cars devalue faster while you will still be paying the same monthly amount.
Many car finance deals fall apart midway not just because of your difficulty to understand but also because of lenders. Your focus must be to escape, if posible charges as you identify them. The standard discount will be about 7-10% which, as a routine, they will be happy to give away. If the lender requires credit insurance; you must add this also into the cost of the credit. Never forget to include the overheads as some of them are inevitable. Online car finance lenders have lower operating budgets as opposed to banks and credit unions which you can explore.
All said and done, the unparalleled advantage of buying new cars is the current technology, warranty and the standard safety features. Paying for a brand new car is not at all a wrong decision only because of high price tags, depreciation and interest rates. If you are confident of buying a new car in all the comforts and full awareness of implications, you can drive away proudly.
by Alevoor Rajagopal
Shopping for a new car isn't a cake walk if count the stress, hassles and the big expense involved. Barring buying a house, new car purchase is without a doubt the big ticket purchase perhaps everyone of us make. Buying a new car, however, is not a straight forward activity, especially if you are buying for the first time.
When you set off, you must be clear in your mind whether you need to go for an auto loan or whether you can pay from your savings. If you decide to go for car loan, there are many options before you and one of which is having the finance arranged through the dealers which they do from their regular bankers. However, if you have time and patience, it is a good idea to explore the possibility of arranging finance from one of your known credit unions as they are known to be cheaper than banks. In any case, what you must keep in mind is that all these charges are an additional cost you.
Before signing on the dotted line make sure that you have read and understood their terms conditions and all surprising charges entirely. If you think you need a clarification, take a friend's advice. It is important to understand that having signed on the paper you are bound by their terms which is final. A hasty step, on your part, can be an expensive move than buying a new car itself. Buying a new car and car loan are all about patience, perseverance, preparation and some nerve wracking hard bargaining. The whole process of buying a new car can only be compared to buying a home for all the grind both of them possess. Your new car buying can be a pleasurable experience only if you are calculative to shop smartly and have time to do it.
New Car Loan - Critical Points to Mind Judging a car loan, given the myriad of lenders and products, can be equally hard as judging a car itself. A new car financier will always extend loans to buying a new car. However, when negotiating with them, remember not to focus too much on the monthly payment, which the lenders always push you towards. It is prudent to remember that new cars devalue faster while you will still be paying the same monthly amount.
Many car finance deals fall apart midway not just because of your difficulty to understand but also because of lenders. Your focus must be to escape, if posible charges as you identify them. The standard discount will be about 7-10% which, as a routine, they will be happy to give away. If the lender requires credit insurance; you must add this also into the cost of the credit. Never forget to include the overheads as some of them are inevitable. Online car finance lenders have lower operating budgets as opposed to banks and credit unions which you can explore.
All said and done, the unparalleled advantage of buying new cars is the current technology, warranty and the standard safety features. Paying for a brand new car is not at all a wrong decision only because of high price tags, depreciation and interest rates. If you are confident of buying a new car in all the comforts and full awareness of implications, you can drive away proudly.
Sunday, March 22, 2009
What Is A Preapproved Auto Loan
What Is A Preapproved Auto Loan?
by Joseph Kenny
When you want to go and look for a good deal on a car, you want to go and get a preapproved auto loan. These auto loans will save you some time and money, partly because the auto dealer will be glad to see you already have the cash on hand. Here is what you need to know about a preapproved auto loan.
A preapproved auto loan is very similar to being preapproved for a house. It shows the seller that you are serious. This makes them more serious about giving you some good savings up front. It also tells them that you are looking for a deal - right now. They know that if they do not deliver something that interests you quickly, then you will be out the door - and your money will be gone, too.
Going to your lender first allows you to know in advance just how much of an auto loan you can get. This will cut down your time in searching for a car because you will know what you have to work with in the way of cash from the start. After you fill out the application for a preapproved auto loan, the lender provides you with a blank check up to a certain credit limit. With that check in your pocket, you are free to look for the car of your choice.
You will also be given a limited time to spend the preapproved auto loan check. This check is usually good for only a few days. You do not even have to use the check at all. You are under no obligation to do so, and usually no charges will apply until you actually sign the check and use it to purchase your car.
You save money by knowing exactly what charges apply up front. Sometimes, when you deal with dealer financing, you may find that you get stuck with an unsatisfactory deal and higher interest rates than you wanted. But with a preapproved auto loan - if you do not like the rates - just do not use the check.
Before you sign the check, though, it would be a real good idea to find out the value of the car you are thinking about buying. That is, at least if you want to be sure that you really are getting a great deal. By going online, you can quickly determine the value and asking price of your car - anywhere. You may even find that you can get a better deal at another dealer in town. Then, you could even go back to the first dealer, where you saw the car, and see if they will match the price or come down even more. Having a preapproved auto loan check in your pocket will help you get a great deal - but you need to be informed as to the value of the car you want.
One more thing, before you go to any lender for your preapproved auto loan, remember that lenders are like auto dealers. Each one has their own set prices and rates, but by shopping around, you can find that better interest rate and terms. Also, don't forget to check your credit report first, and look for any mistakes and correct them before you apply. This will help you get the best interest rates possible.
by Joseph Kenny
When you want to go and look for a good deal on a car, you want to go and get a preapproved auto loan. These auto loans will save you some time and money, partly because the auto dealer will be glad to see you already have the cash on hand. Here is what you need to know about a preapproved auto loan.
A preapproved auto loan is very similar to being preapproved for a house. It shows the seller that you are serious. This makes them more serious about giving you some good savings up front. It also tells them that you are looking for a deal - right now. They know that if they do not deliver something that interests you quickly, then you will be out the door - and your money will be gone, too.
Going to your lender first allows you to know in advance just how much of an auto loan you can get. This will cut down your time in searching for a car because you will know what you have to work with in the way of cash from the start. After you fill out the application for a preapproved auto loan, the lender provides you with a blank check up to a certain credit limit. With that check in your pocket, you are free to look for the car of your choice.
You will also be given a limited time to spend the preapproved auto loan check. This check is usually good for only a few days. You do not even have to use the check at all. You are under no obligation to do so, and usually no charges will apply until you actually sign the check and use it to purchase your car.
You save money by knowing exactly what charges apply up front. Sometimes, when you deal with dealer financing, you may find that you get stuck with an unsatisfactory deal and higher interest rates than you wanted. But with a preapproved auto loan - if you do not like the rates - just do not use the check.
Before you sign the check, though, it would be a real good idea to find out the value of the car you are thinking about buying. That is, at least if you want to be sure that you really are getting a great deal. By going online, you can quickly determine the value and asking price of your car - anywhere. You may even find that you can get a better deal at another dealer in town. Then, you could even go back to the first dealer, where you saw the car, and see if they will match the price or come down even more. Having a preapproved auto loan check in your pocket will help you get a great deal - but you need to be informed as to the value of the car you want.
One more thing, before you go to any lender for your preapproved auto loan, remember that lenders are like auto dealers. Each one has their own set prices and rates, but by shopping around, you can find that better interest rate and terms. Also, don't forget to check your credit report first, and look for any mistakes and correct them before you apply. This will help you get the best interest rates possible.
Prepare Your Credit To Be Able To Get Auto Loan
Prepare Your Credit To Be Able To Get Auto Loan
by Jon Arnold
Whether you are in the market to buy a brand new car or a used bar, having a good credit score will not only make a difference in what you can buy, but it can also definitely save you big money.
Due to the steady rising prices and loss of jobs, many people live on credit and some are having a hard time managing their money. Often, credit scores are less than desirable. So what can you do when you are need to take out an auto loan?
You can get an auto loan even with bad credit. But you are not able to buy what you really want and the interest rates are likely to be sky high. So before going ahead with your purchase, you want to prepare to get the best possible deal for yourself.
You may take a look at your credit ratings by the 3 major reporting companies, Equifax, Trans Union and Experian. Most people are not aware that their credit report is not always accurate. Make sure that your credit reports are accurate and up to date!
Department store credit accounts can lower your credit ratings also. Lenders look at the amount of your credit accounts that you may have. For example you may owe $ 50 here and $180 there and you may owe another $120 on another store credit card. This may give the impression that you have open credit accounts scattered all around and that you may have a spending problem. So here is what you want to do. Take the smallest credit card and pay it off. And then pay off the next one and so on. In a short amount of time, your credit scores will go up and you will have a better way to keep your finances under control.
You really need to start a program like this now before you get an auto loan. You can prepare for this ahead of time and get a better interest rate.
A down payment for a car can also help in making things easier and less expensive. Make yourself a goal of saving every month and do not touch it, regardless of what emergency might come up. (A sale on designer purses is not an emergency!) Save this money for a nice down payment on your next auto loan. The amount you need to finance for your auto loan will be less, and the size of the down payment can sometimes influence the interest rate for that auto loan.
This can also help when you negotiate with the car dealer. Never pay the sticker price! You always want to ask for a price reduction! The auto market is highly competitive, and the dealership realizes that if they do not give you the best deal, you can and should go to a different dealership.
You may want to consider going online to get pre-approved for the auto loan you are seeking. You do not need to specify which car or which dealership, you simply get approved for a certain dollar amount. Now with that information in hand, you have a strong negotiating tool to use with the dealership, because now he knows you are serious and getting financed is not an issue that he needs to worry about for you. Our web site allows you to get a quote for the best pricing possible, regardless of what the dealer tells you.
You may have already an auto loan with a high interest rate or you are in the process of getting one, so what can you do now? Paying some extra money along with your required payment will save you time and quite a bit of money in interest.
by Jon Arnold
Whether you are in the market to buy a brand new car or a used bar, having a good credit score will not only make a difference in what you can buy, but it can also definitely save you big money.
Due to the steady rising prices and loss of jobs, many people live on credit and some are having a hard time managing their money. Often, credit scores are less than desirable. So what can you do when you are need to take out an auto loan?
You can get an auto loan even with bad credit. But you are not able to buy what you really want and the interest rates are likely to be sky high. So before going ahead with your purchase, you want to prepare to get the best possible deal for yourself.
You may take a look at your credit ratings by the 3 major reporting companies, Equifax, Trans Union and Experian. Most people are not aware that their credit report is not always accurate. Make sure that your credit reports are accurate and up to date!
Department store credit accounts can lower your credit ratings also. Lenders look at the amount of your credit accounts that you may have. For example you may owe $ 50 here and $180 there and you may owe another $120 on another store credit card. This may give the impression that you have open credit accounts scattered all around and that you may have a spending problem. So here is what you want to do. Take the smallest credit card and pay it off. And then pay off the next one and so on. In a short amount of time, your credit scores will go up and you will have a better way to keep your finances under control.
You really need to start a program like this now before you get an auto loan. You can prepare for this ahead of time and get a better interest rate.
A down payment for a car can also help in making things easier and less expensive. Make yourself a goal of saving every month and do not touch it, regardless of what emergency might come up. (A sale on designer purses is not an emergency!) Save this money for a nice down payment on your next auto loan. The amount you need to finance for your auto loan will be less, and the size of the down payment can sometimes influence the interest rate for that auto loan.
This can also help when you negotiate with the car dealer. Never pay the sticker price! You always want to ask for a price reduction! The auto market is highly competitive, and the dealership realizes that if they do not give you the best deal, you can and should go to a different dealership.
You may want to consider going online to get pre-approved for the auto loan you are seeking. You do not need to specify which car or which dealership, you simply get approved for a certain dollar amount. Now with that information in hand, you have a strong negotiating tool to use with the dealership, because now he knows you are serious and getting financed is not an issue that he needs to worry about for you. Our web site allows you to get a quote for the best pricing possible, regardless of what the dealer tells you.
You may have already an auto loan with a high interest rate or you are in the process of getting one, so what can you do now? Paying some extra money along with your required payment will save you time and quite a bit of money in interest.
Saturday, March 21, 2009
Improve Your Credit With An Auto Loan
Improve Your Credit With An Auto Loan
by Gregg Pennington
If you plan on financing your next vehicle, you should take some time to shop for car loan quotes. Naturally you want to get the best possible interest rate, since auto loan interest rates are closely tied to your credit rating and credit score. Although you will need an excellent credit scored to get the best auto loan rates, most people are still able to secure some kind of auto financing. Free quotes are widely available online, and by comparing a number of quotes, you will get an idea of what to expect.
The first step in shopping for a car loan is to order a free copy of your credit report. If you find erroneous items on the credit report, you should get them removed before financing a vehicle. Once you review your credit report and learn your credit score, you will have some idea of the interest rate you can expect to pay.
If you find that your credit is poor, there are steps you can take to improve your credit score. Close accounts that you use rarely or never, because having too many open credit accounts can adversely affect your credit score. Avoid having accounts maxed out, and try not to make any late payments before applying for your auto loan.
Be aware that an excessive number of inquiries into your credit can have an adverse effect on your credit score. However, some inquiries count toward your FICO score and others don't. If you authorize a lender to check your credit before applying for a loan or other type of credit, it will affect your FICO score. If you request a copy of your own credit report, or a business requests a copy of your report before performing a service or offering merchandise, it will not count against your credit score. Likewise, inquiries by a potential employer will not affect your FICO score.
There are a few steps you can take to improve your credit score before you apply for an auto loan:
- Close credit accounts which you seldom use, as having too many accounts may lower your credit score.
- Try to keep balances paid down as much as possible. A number of maxed out accounts could be viewed as a sign of the potential inability of an applicant to be able to make the payments.
- Obtain a copy of your credit report and check it for errors. Many people find inaccuracies on their credit reports that have lowered their credit score. You have the right to have corrections made to any inaccurate items on your credit report.
Once you have confirmed that your credit report contains only accurate information, you should build a history of timely payments, lowering your debt to income ratio and decreasing your total amount of debt. Increasing your credit score takes time, since negative items can remain on your credit report for seven years, and ten in the case of bankruptcy. Fortunately, older items are less important than your recent credit activity.
Now that you have the foundation for improving your credit in place, you are ready to begin shopping for auto loan quotes. Getting online quotes is a quick and efficient way to test the waters and see what kind of rates and terms you will be able to procure. Obviously you want the best car loan rates possible, but you should also be aware of the terms offered and the length of the loan. If lower monthly payments are your goal, you may greatly extend the time it takes to pay off the loan.
Don't overlook banks and credit unions where you already do business as sources of auto loan financing. They may offer you significantly lower interest rates and give you more flexibility in the repayment terms of your car loan. Don't eliminate dealer financing as an option when purchasing a vehicle; just be aware that car dealers often add extra points in exchange for a lower interest rate, or charge more for the vehicle itself.
Unless you are able to pay off your loan early, it will usually take several years to repay. Making timely auto loan payments will help increase your credit score, which will allow you to get a less expensive loan the next time you purchase a vehicle. In fact, demonstrating responsibility with an auto loan is one of the best ways to improve your credit.
by Gregg Pennington
If you plan on financing your next vehicle, you should take some time to shop for car loan quotes. Naturally you want to get the best possible interest rate, since auto loan interest rates are closely tied to your credit rating and credit score. Although you will need an excellent credit scored to get the best auto loan rates, most people are still able to secure some kind of auto financing. Free quotes are widely available online, and by comparing a number of quotes, you will get an idea of what to expect.
The first step in shopping for a car loan is to order a free copy of your credit report. If you find erroneous items on the credit report, you should get them removed before financing a vehicle. Once you review your credit report and learn your credit score, you will have some idea of the interest rate you can expect to pay.
If you find that your credit is poor, there are steps you can take to improve your credit score. Close accounts that you use rarely or never, because having too many open credit accounts can adversely affect your credit score. Avoid having accounts maxed out, and try not to make any late payments before applying for your auto loan.
Be aware that an excessive number of inquiries into your credit can have an adverse effect on your credit score. However, some inquiries count toward your FICO score and others don't. If you authorize a lender to check your credit before applying for a loan or other type of credit, it will affect your FICO score. If you request a copy of your own credit report, or a business requests a copy of your report before performing a service or offering merchandise, it will not count against your credit score. Likewise, inquiries by a potential employer will not affect your FICO score.
There are a few steps you can take to improve your credit score before you apply for an auto loan:
- Close credit accounts which you seldom use, as having too many accounts may lower your credit score.
- Try to keep balances paid down as much as possible. A number of maxed out accounts could be viewed as a sign of the potential inability of an applicant to be able to make the payments.
- Obtain a copy of your credit report and check it for errors. Many people find inaccuracies on their credit reports that have lowered their credit score. You have the right to have corrections made to any inaccurate items on your credit report.
Once you have confirmed that your credit report contains only accurate information, you should build a history of timely payments, lowering your debt to income ratio and decreasing your total amount of debt. Increasing your credit score takes time, since negative items can remain on your credit report for seven years, and ten in the case of bankruptcy. Fortunately, older items are less important than your recent credit activity.
Now that you have the foundation for improving your credit in place, you are ready to begin shopping for auto loan quotes. Getting online quotes is a quick and efficient way to test the waters and see what kind of rates and terms you will be able to procure. Obviously you want the best car loan rates possible, but you should also be aware of the terms offered and the length of the loan. If lower monthly payments are your goal, you may greatly extend the time it takes to pay off the loan.
Don't overlook banks and credit unions where you already do business as sources of auto loan financing. They may offer you significantly lower interest rates and give you more flexibility in the repayment terms of your car loan. Don't eliminate dealer financing as an option when purchasing a vehicle; just be aware that car dealers often add extra points in exchange for a lower interest rate, or charge more for the vehicle itself.
Unless you are able to pay off your loan early, it will usually take several years to repay. Making timely auto loan payments will help increase your credit score, which will allow you to get a less expensive loan the next time you purchase a vehicle. In fact, demonstrating responsibility with an auto loan is one of the best ways to improve your credit.
My Bad Credit Car Loan
My Bad Credit Car Loan
by Noel Clarke
There are not many people in this world who do not get excited by the prospect of buying a new car. This excitement can sometimes be deflated by the whole finance thing. If your credit history is not so good, or basically non existent, then you may need to find a bad credit car loan.
The fact is buying a car for most people is one of the biggest purchases they will ever make. Owning a car is kind of like a right of passage for a lot of people, and definitely a sign of "coming of age" for most teenagers. Let face it , we all need a reliable car to get around, and most of us would rather drive a nice new or late car than an old bomb. But nice new or late model cars are obviously a lot more expensive than old cars, and that means that most of us will require some sort of finance. The problem is that if you have a poor credit history, or have not had time to establish a good credit record, then its going to feel like the whole financial system has it in for you. Unfortunately banks and most financial or lending businesses do not look favorably on people with no or bad credit history's.
But before you decide to give up, bad credit finance is available, be it a bad credit personal loan, or in the case of buying a car, a bad credit auto loan.
The first choice is always to contact the bank you normally do business with, and always take a bit of time to prepare your case in writing before contacting your bank for an appointment. Make sure you have all the facts about the vehicle you would like to purchase, such as price , model, year , mileage etc. Also do a bit of research on repayment schedules, so that you have some idea of what the down payment and repayments are going to be, and how you intend to meet those repayments. On the subject of approaching your bank, it is a good idea to look respectable, wear some nice clothes and do your hair and in the case of men have a shave before going. Remember the old saying about "first impressions". Another point to bear in mind, is that quite often the bank will be more inclined to grant you bad credit finance on a newer vehicle, due to it having more value if the bank should need to repossess it.
If your bank turns you down, it is not the end of the line.
There are lenders out there who specialize in bad credit finance, and who will be able to furnish you with a bad credit car loan. The fact is , some of the bigger motor car dealers would be willing to give you a bad cedit auto loan. When considering bad credit financing, it is advisable to shop around and do your homework, because the interest rates offered can vary quite significantly between the various lenders. A good starting point for researching the various bad credit financing institutions is of course the internet. By using the search engines like Google, Yahoo etc, you will find many lending businesses where you can submit aloan application. From there it is a fairly simple matter of filling out and submitting an application form.
When buying a car, some things to keep in mind may include. If you are planning to buy a used car, get a friendly mechanic to give it a once over. Keep in mind additional costs such as insurance, registration etc. And most importantly, to enjoy the pride and freedom that owning your own car creates.
by Noel Clarke
There are not many people in this world who do not get excited by the prospect of buying a new car. This excitement can sometimes be deflated by the whole finance thing. If your credit history is not so good, or basically non existent, then you may need to find a bad credit car loan.
The fact is buying a car for most people is one of the biggest purchases they will ever make. Owning a car is kind of like a right of passage for a lot of people, and definitely a sign of "coming of age" for most teenagers. Let face it , we all need a reliable car to get around, and most of us would rather drive a nice new or late car than an old bomb. But nice new or late model cars are obviously a lot more expensive than old cars, and that means that most of us will require some sort of finance. The problem is that if you have a poor credit history, or have not had time to establish a good credit record, then its going to feel like the whole financial system has it in for you. Unfortunately banks and most financial or lending businesses do not look favorably on people with no or bad credit history's.
But before you decide to give up, bad credit finance is available, be it a bad credit personal loan, or in the case of buying a car, a bad credit auto loan.
The first choice is always to contact the bank you normally do business with, and always take a bit of time to prepare your case in writing before contacting your bank for an appointment. Make sure you have all the facts about the vehicle you would like to purchase, such as price , model, year , mileage etc. Also do a bit of research on repayment schedules, so that you have some idea of what the down payment and repayments are going to be, and how you intend to meet those repayments. On the subject of approaching your bank, it is a good idea to look respectable, wear some nice clothes and do your hair and in the case of men have a shave before going. Remember the old saying about "first impressions". Another point to bear in mind, is that quite often the bank will be more inclined to grant you bad credit finance on a newer vehicle, due to it having more value if the bank should need to repossess it.
If your bank turns you down, it is not the end of the line.
There are lenders out there who specialize in bad credit finance, and who will be able to furnish you with a bad credit car loan. The fact is , some of the bigger motor car dealers would be willing to give you a bad cedit auto loan. When considering bad credit financing, it is advisable to shop around and do your homework, because the interest rates offered can vary quite significantly between the various lenders. A good starting point for researching the various bad credit financing institutions is of course the internet. By using the search engines like Google, Yahoo etc, you will find many lending businesses where you can submit aloan application. From there it is a fairly simple matter of filling out and submitting an application form.
When buying a car, some things to keep in mind may include. If you are planning to buy a used car, get a friendly mechanic to give it a once over. Keep in mind additional costs such as insurance, registration etc. And most importantly, to enjoy the pride and freedom that owning your own car creates.
Things To Avoid When Getting Your New Car And Auto Loan
Things To Avoid When Getting Your New Car And Auto Loan
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
Know How To Play The Game With An Auto Loan
Know How To Play The Game With An Auto Loan
by Jon Arnold
Applying for and receiving an auto loan is a relatively easy process, even if you have bad credit or bankruptcy on your credit report. There are mountains of lending institutions that will give you very attractive rates on an auto loan, even if you have bad credit or a late payment history.
Obviously, the cleaner your credit record, the more attractive the rates will be. With the price of new cars these days, the difference of a couple of percentage points on a car that costs $30k or more can add up to several hundred dollars over the course of the loan. In that light, you may want to take the time to get a copy of your credit report and review it. This is particularly important when you consider the fact that the majority of consumer credit reports have errors in them, which in turn lead the credit bureau to produce a credit score for the consumer that is lower than it really should be without the errors. You have a right (and also, many say, a DUTY) to dispute those errors on your credit report so that your credit score is as accurate as possible.
The next thing to consider about the terms of your auto loan are how long you wish to finance the car for. Again, with the price of new cars being so high these days for a nice car, some loan companies are allowing up to 72 months (6 years) or even more in some cases to repay the loan. While this makes the monthly payment appear to be extremely attractive and affordable, keep in mind that you do NOT want to get into a situation down the road where the car is falling off the tires and you still have a year or more of payments to make on it. Gauge the number of years to take out the loan for, and then estimate realistically the number of miles that you will likely drive in a year. For example, if you estimate that you will drive 25k miles per year, do the math - that car will have 100k miles on it at the end of just 4 years, and will also likely have almost no trade-in value.
Now be aware of the "game" that car dealerships play with the base amount. You want to feel that you have gotten a good deal on the car, no doubt about that. So you haggle and negotiate with the car salesman to arrive at a price, where that price is significantly below what the window sticker says the car should sell for.
But that is not the end of the story. You have probably gone online and found the trade-in value of your existing car. If your existing car is somewhat late model, and realistically in "fair" condition (not "excellent" and perhaps not even "good"), there are places online where you can find out what the dealer should give you as a trade-in value on that car.
But what the online sites do not tell you is that you can expect that much trade-in value on your existing car if you are paying sticker price for your new car. But you should never pay sticker price for your new car! Let's look at an example.
Say the new car you want has a sticker price of $35k and you found online that your existing car in "fair" condition should be worth $5k on a trade-in. That means the new car will cost you $30k. If you pay sticker price, that is probably the way the deal would work out. But if you negotiate the price of the new car down to say $32k, now the dealer will only give you $2k for your trade-in, despite what your online source says you should get as trade-in value on it. The end result is exactly the same - the new car is going to cost you $30k.
Be realistic about how much you are going to finance for your new auto, how long you will take the loan out for, how much can you comfortably afford to put down on it so that you are financing less, then factor in the realistic trade-in value for your existing car, and after all that is done, THEN you have a figure to work with when shopping for your new car financing!
by Jon Arnold
Applying for and receiving an auto loan is a relatively easy process, even if you have bad credit or bankruptcy on your credit report. There are mountains of lending institutions that will give you very attractive rates on an auto loan, even if you have bad credit or a late payment history.
Obviously, the cleaner your credit record, the more attractive the rates will be. With the price of new cars these days, the difference of a couple of percentage points on a car that costs $30k or more can add up to several hundred dollars over the course of the loan. In that light, you may want to take the time to get a copy of your credit report and review it. This is particularly important when you consider the fact that the majority of consumer credit reports have errors in them, which in turn lead the credit bureau to produce a credit score for the consumer that is lower than it really should be without the errors. You have a right (and also, many say, a DUTY) to dispute those errors on your credit report so that your credit score is as accurate as possible.
The next thing to consider about the terms of your auto loan are how long you wish to finance the car for. Again, with the price of new cars being so high these days for a nice car, some loan companies are allowing up to 72 months (6 years) or even more in some cases to repay the loan. While this makes the monthly payment appear to be extremely attractive and affordable, keep in mind that you do NOT want to get into a situation down the road where the car is falling off the tires and you still have a year or more of payments to make on it. Gauge the number of years to take out the loan for, and then estimate realistically the number of miles that you will likely drive in a year. For example, if you estimate that you will drive 25k miles per year, do the math - that car will have 100k miles on it at the end of just 4 years, and will also likely have almost no trade-in value.
Now be aware of the "game" that car dealerships play with the base amount. You want to feel that you have gotten a good deal on the car, no doubt about that. So you haggle and negotiate with the car salesman to arrive at a price, where that price is significantly below what the window sticker says the car should sell for.
But that is not the end of the story. You have probably gone online and found the trade-in value of your existing car. If your existing car is somewhat late model, and realistically in "fair" condition (not "excellent" and perhaps not even "good"), there are places online where you can find out what the dealer should give you as a trade-in value on that car.
But what the online sites do not tell you is that you can expect that much trade-in value on your existing car if you are paying sticker price for your new car. But you should never pay sticker price for your new car! Let's look at an example.
Say the new car you want has a sticker price of $35k and you found online that your existing car in "fair" condition should be worth $5k on a trade-in. That means the new car will cost you $30k. If you pay sticker price, that is probably the way the deal would work out. But if you negotiate the price of the new car down to say $32k, now the dealer will only give you $2k for your trade-in, despite what your online source says you should get as trade-in value on it. The end result is exactly the same - the new car is going to cost you $30k.
Be realistic about how much you are going to finance for your new auto, how long you will take the loan out for, how much can you comfortably afford to put down on it so that you are financing less, then factor in the realistic trade-in value for your existing car, and after all that is done, THEN you have a figure to work with when shopping for your new car financing!
Thursday, March 19, 2009
Auto Loan and New Car Buying
Auto Loan and New Car Buying
by Alevoor Rajagopal
Shopping for a new car isn't a cake walk if count the stress, hassles and the big expense involved. Barring buying a house, new car purchase is without a doubt the big ticket purchase perhaps everyone of us make. Buying a new car, however, is not a straight forward activity, especially if you are buying for the first time.
When you set off, you must be clear in your mind whether you need to go for an auto loan or whether you can pay from your savings. If you decide to go for car loan, there are many options before you and one of which is having the finance arranged through the dealers which they do from their regular bankers. However, if you have time and patience, it is a good idea to explore the possibility of arranging finance from one of your known credit unions as they are known to be cheaper than banks. In any case, what you must keep in mind is that all these charges are an additional cost you.
Before signing on the dotted line make sure that you have read and understood their terms conditions and all surprising charges entirely. If you think you need a clarification, take a friend's advice. It is important to understand that having signed on the paper you are bound by their terms which is final. A hasty step, on your part, can be an expensive move than buying a new car itself. Buying a new car and car loan are all about patience, perseverance, preparation and some nerve wracking hard bargaining. The whole process of buying a new car can only be compared to buying a home for all the grind both of them possess. Your new car buying can be a pleasurable experience only if you are calculative to shop smartly and have time to do it.
New Car Loan - Critical Points to Mind Judging a car loan, given the myriad of lenders and products, can be equally hard as judging a car itself. A new car financier will always extend loans to buying a new car. However, when negotiating with them, remember not to focus too much on the monthly payment, which the lenders always push you towards. It is prudent to remember that new cars devalue faster while you will still be paying the same monthly amount.
Many car finance deals fall apart midway not just because of your difficulty to understand but also because of lenders. Your focus must be to escape, if posible charges as you identify them. The standard discount will be about 7-10% which, as a routine, they will be happy to give away. If the lender requires credit insurance; you must add this also into the cost of the credit. Never forget to include the overheads as some of them are inevitable. Online car finance lenders have lower operating budgets as opposed to banks and credit unions which you can explore.
All said and done, the unparalleled advantage of buying new cars is the current technology, warranty and the standard safety features. Paying for a brand new car is not at all a wrong decision only because of high price tags, depreciation and interest rates. If you are confident of buying a new car in all the comforts and full awareness of implications, you can drive away proudly.
by Alevoor Rajagopal
Shopping for a new car isn't a cake walk if count the stress, hassles and the big expense involved. Barring buying a house, new car purchase is without a doubt the big ticket purchase perhaps everyone of us make. Buying a new car, however, is not a straight forward activity, especially if you are buying for the first time.
When you set off, you must be clear in your mind whether you need to go for an auto loan or whether you can pay from your savings. If you decide to go for car loan, there are many options before you and one of which is having the finance arranged through the dealers which they do from their regular bankers. However, if you have time and patience, it is a good idea to explore the possibility of arranging finance from one of your known credit unions as they are known to be cheaper than banks. In any case, what you must keep in mind is that all these charges are an additional cost you.
Before signing on the dotted line make sure that you have read and understood their terms conditions and all surprising charges entirely. If you think you need a clarification, take a friend's advice. It is important to understand that having signed on the paper you are bound by their terms which is final. A hasty step, on your part, can be an expensive move than buying a new car itself. Buying a new car and car loan are all about patience, perseverance, preparation and some nerve wracking hard bargaining. The whole process of buying a new car can only be compared to buying a home for all the grind both of them possess. Your new car buying can be a pleasurable experience only if you are calculative to shop smartly and have time to do it.
New Car Loan - Critical Points to Mind Judging a car loan, given the myriad of lenders and products, can be equally hard as judging a car itself. A new car financier will always extend loans to buying a new car. However, when negotiating with them, remember not to focus too much on the monthly payment, which the lenders always push you towards. It is prudent to remember that new cars devalue faster while you will still be paying the same monthly amount.
Many car finance deals fall apart midway not just because of your difficulty to understand but also because of lenders. Your focus must be to escape, if posible charges as you identify them. The standard discount will be about 7-10% which, as a routine, they will be happy to give away. If the lender requires credit insurance; you must add this also into the cost of the credit. Never forget to include the overheads as some of them are inevitable. Online car finance lenders have lower operating budgets as opposed to banks and credit unions which you can explore.
All said and done, the unparalleled advantage of buying new cars is the current technology, warranty and the standard safety features. Paying for a brand new car is not at all a wrong decision only because of high price tags, depreciation and interest rates. If you are confident of buying a new car in all the comforts and full awareness of implications, you can drive away proudly.
Tuesday, March 17, 2009
What Is A Preapproved Auto Loan?
What Is A Preapproved Auto Loan?
by Joseph Kenny
When you want to go and look for a good deal on a car, you want to go and get a preapproved auto loan. These auto loans will save you some time and money, partly because the auto dealer will be glad to see you already have the cash on hand. Here is what you need to know about a preapproved auto loan.
A preapproved auto loan is very similar to being preapproved for a house. It shows the seller that you are serious. This makes them more serious about giving you some good savings up front. It also tells them that you are looking for a deal - right now. They know that if they do not deliver something that interests you quickly, then you will be out the door - and your money will be gone, too.
Going to your lender first allows you to know in advance just how much of an auto loan you can get. This will cut down your time in searching for a car because you will know what you have to work with in the way of cash from the start. After you fill out the application for a preapproved auto loan, the lender provides you with a blank check up to a certain credit limit. With that check in your pocket, you are free to look for the car of your choice.
You will also be given a limited time to spend the preapproved auto loan check. This check is usually good for only a few days. You do not even have to use the check at all. You are under no obligation to do so, and usually no charges will apply until you actually sign the check and use it to purchase your car.
You save money by knowing exactly what charges apply up front. Sometimes, when you deal with dealer financing, you may find that you get stuck with an unsatisfactory deal and higher interest rates than you wanted. But with a preapproved auto loan - if you do not like the rates - just do not use the check.
Before you sign the check, though, it would be a real good idea to find out the value of the car you are thinking about buying. That is, at least if you want to be sure that you really are getting a great deal. By going online, you can quickly determine the value and asking price of your car - anywhere. You may even find that you can get a better deal at another dealer in town. Then, you could even go back to the first dealer, where you saw the car, and see if they will match the price or come down even more. Having a preapproved auto loan check in your pocket will help you get a great deal - but you need to be informed as to the value of the car you want.
One more thing, before you go to any lender for your preapproved auto loan, remember that lenders are like auto dealers. Each one has their own set prices and rates, but by shopping around, you can find that better interest rate and terms. Also, don't forget to check your credit report first, and look for any mistakes and correct them before you apply. This will help you get the best interest rates possible.
by Joseph Kenny
When you want to go and look for a good deal on a car, you want to go and get a preapproved auto loan. These auto loans will save you some time and money, partly because the auto dealer will be glad to see you already have the cash on hand. Here is what you need to know about a preapproved auto loan.
A preapproved auto loan is very similar to being preapproved for a house. It shows the seller that you are serious. This makes them more serious about giving you some good savings up front. It also tells them that you are looking for a deal - right now. They know that if they do not deliver something that interests you quickly, then you will be out the door - and your money will be gone, too.
Going to your lender first allows you to know in advance just how much of an auto loan you can get. This will cut down your time in searching for a car because you will know what you have to work with in the way of cash from the start. After you fill out the application for a preapproved auto loan, the lender provides you with a blank check up to a certain credit limit. With that check in your pocket, you are free to look for the car of your choice.
You will also be given a limited time to spend the preapproved auto loan check. This check is usually good for only a few days. You do not even have to use the check at all. You are under no obligation to do so, and usually no charges will apply until you actually sign the check and use it to purchase your car.
You save money by knowing exactly what charges apply up front. Sometimes, when you deal with dealer financing, you may find that you get stuck with an unsatisfactory deal and higher interest rates than you wanted. But with a preapproved auto loan - if you do not like the rates - just do not use the check.
Before you sign the check, though, it would be a real good idea to find out the value of the car you are thinking about buying. That is, at least if you want to be sure that you really are getting a great deal. By going online, you can quickly determine the value and asking price of your car - anywhere. You may even find that you can get a better deal at another dealer in town. Then, you could even go back to the first dealer, where you saw the car, and see if they will match the price or come down even more. Having a preapproved auto loan check in your pocket will help you get a great deal - but you need to be informed as to the value of the car you want.
One more thing, before you go to any lender for your preapproved auto loan, remember that lenders are like auto dealers. Each one has their own set prices and rates, but by shopping around, you can find that better interest rate and terms. Also, don't forget to check your credit report first, and look for any mistakes and correct them before you apply. This will help you get the best interest rates possible.
Saturday, March 14, 2009
Prepare Your Credit To Be Able To Get Auto Loan
Prepare Your Credit To Be Able To Get Auto Loan
by Jon Arnold
Whether you are in the market to buy a brand new car or a used bar, having a good credit score will not only make a difference in what you can buy, but it can also definitely save you big money.
Due to the steady rising prices and loss of jobs, many people live on credit and some are having a hard time managing their money. Often, credit scores are less than desirable. So what can you do when you are need to take out an auto loan?
You can get an auto loan even with bad credit. But you are not able to buy what you really want and the interest rates are likely to be sky high. So before going ahead with your purchase, you want to prepare to get the best possible deal for yourself.
You may take a look at your credit ratings by the 3 major reporting companies, Equifax, Trans Union and Experian. Most people are not aware that their credit report is not always accurate. Make sure that your credit reports are accurate and up to date!
Department store credit accounts can lower your credit ratings also. Lenders look at the amount of your credit accounts that you may have. For example you may owe $ 50 here and $180 there and you may owe another $120 on another store credit card. This may give the impression that you have open credit accounts scattered all around and that you may have a spending problem. So here is what you want to do. Take the smallest credit card and pay it off. And then pay off the next one and so on. In a short amount of time, your credit scores will go up and you will have a better way to keep your finances under control.
You really need to start a program like this now before you get an auto loan. You can prepare for this ahead of time and get a better interest rate.
A down payment for a car can also help in making things easier and less expensive. Make yourself a goal of saving every month and do not touch it, regardless of what emergency might come up. (A sale on designer purses is not an emergency!) Save this money for a nice down payment on your next auto loan. The amount you need to finance for your auto loan will be less, and the size of the down payment can sometimes influence the interest rate for that auto loan.
This can also help when you negotiate with the car dealer. Never pay the sticker price! You always want to ask for a price reduction! The auto market is highly competitive, and the dealership realizes that if they do not give you the best deal, you can and should go to a different dealership.
You may want to consider going online to get pre-approved for the auto loan you are seeking. You do not need to specify which car or which dealership, you simply get approved for a certain dollar amount. Now with that information in hand, you have a strong negotiating tool to use with the dealership, because now he knows you are serious and getting financed is not an issue that he needs to worry about for you. Our web site allows you to get a quote for the best pricing possible, regardless of what the dealer tells you.
You may have already an auto loan with a high interest rate or you are in the process of getting one, so what can you do now? Paying some extra money along with your required payment will save you time and quite a bit of money in interest.
by Jon Arnold
Whether you are in the market to buy a brand new car or a used bar, having a good credit score will not only make a difference in what you can buy, but it can also definitely save you big money.
Due to the steady rising prices and loss of jobs, many people live on credit and some are having a hard time managing their money. Often, credit scores are less than desirable. So what can you do when you are need to take out an auto loan?
You can get an auto loan even with bad credit. But you are not able to buy what you really want and the interest rates are likely to be sky high. So before going ahead with your purchase, you want to prepare to get the best possible deal for yourself.
You may take a look at your credit ratings by the 3 major reporting companies, Equifax, Trans Union and Experian. Most people are not aware that their credit report is not always accurate. Make sure that your credit reports are accurate and up to date!
Department store credit accounts can lower your credit ratings also. Lenders look at the amount of your credit accounts that you may have. For example you may owe $ 50 here and $180 there and you may owe another $120 on another store credit card. This may give the impression that you have open credit accounts scattered all around and that you may have a spending problem. So here is what you want to do. Take the smallest credit card and pay it off. And then pay off the next one and so on. In a short amount of time, your credit scores will go up and you will have a better way to keep your finances under control.
You really need to start a program like this now before you get an auto loan. You can prepare for this ahead of time and get a better interest rate.
A down payment for a car can also help in making things easier and less expensive. Make yourself a goal of saving every month and do not touch it, regardless of what emergency might come up. (A sale on designer purses is not an emergency!) Save this money for a nice down payment on your next auto loan. The amount you need to finance for your auto loan will be less, and the size of the down payment can sometimes influence the interest rate for that auto loan.
This can also help when you negotiate with the car dealer. Never pay the sticker price! You always want to ask for a price reduction! The auto market is highly competitive, and the dealership realizes that if they do not give you the best deal, you can and should go to a different dealership.
You may want to consider going online to get pre-approved for the auto loan you are seeking. You do not need to specify which car or which dealership, you simply get approved for a certain dollar amount. Now with that information in hand, you have a strong negotiating tool to use with the dealership, because now he knows you are serious and getting financed is not an issue that he needs to worry about for you. Our web site allows you to get a quote for the best pricing possible, regardless of what the dealer tells you.
You may have already an auto loan with a high interest rate or you are in the process of getting one, so what can you do now? Paying some extra money along with your required payment will save you time and quite a bit of money in interest.
Improve Your Credit With An Auto Loan
Improve Your Credit With An Auto Loan
by Gregg Pennington
If you plan on financing your next vehicle, you should take some time to shop for car loan quotes. Naturally you want to get the best possible interest rate, since auto loan interest rates are closely tied to your credit rating and credit score. Although you will need an excellent credit scored to get the best auto loan rates, most people are still able to secure some kind of auto financing. Free quotes are widely available online, and by comparing a number of quotes, you will get an idea of what to expect.
The first step in shopping for a car loan is to order a free copy of your credit report. If you find erroneous items on the credit report, you should get them removed before financing a vehicle. Once you review your credit report and learn your credit score, you will have some idea of the interest rate you can expect to pay.
If you find that your credit is poor, there are steps you can take to improve your credit score. Close accounts that you use rarely or never, because having too many open credit accounts can adversely affect your credit score. Avoid having accounts maxed out, and try not to make any late payments before applying for your auto loan.
Be aware that an excessive number of inquiries into your credit can have an adverse effect on your credit score. However, some inquiries count toward your FICO score and others don't. If you authorize a lender to check your credit before applying for a loan or other type of credit, it will affect your FICO score. If you request a copy of your own credit report, or a business requests a copy of your report before performing a service or offering merchandise, it will not count against your credit score. Likewise, inquiries by a potential employer will not affect your FICO score.
There are a few steps you can take to improve your credit score before you apply for an auto loan:
- Close credit accounts which you seldom use, as having too many accounts may lower your credit score.
- Try to keep balances paid down as much as possible. A number of maxed out accounts could be viewed as a sign of the potential inability of an applicant to be able to make the payments.
- Obtain a copy of your credit report and check it for errors. Many people find inaccuracies on their credit reports that have lowered their credit score. You have the right to have corrections made to any inaccurate items on your credit report.
Once you have confirmed that your credit report contains only accurate information, you should build a history of timely payments, lowering your debt to income ratio and decreasing your total amount of debt. Increasing your credit score takes time, since negative items can remain on your credit report for seven years, and ten in the case of bankruptcy. Fortunately, older items are less important than your recent credit activity.
Now that you have the foundation for improving your credit in place, you are ready to begin shopping for auto loan quotes. Getting online quotes is a quick and efficient way to test the waters and see what kind of rates and terms you will be able to procure. Obviously you want the best car loan rates possible, but you should also be aware of the terms offered and the length of the loan. If lower monthly payments are your goal, you may greatly extend the time it takes to pay off the loan.
Don't overlook banks and credit unions where you already do business as sources of auto loan financing. They may offer you significantly lower interest rates and give you more flexibility in the repayment terms of your car loan. Don't eliminate dealer financing as an option when purchasing a vehicle; just be aware that car dealers often add extra points in exchange for a lower interest rate, or charge more for the vehicle itself.
Unless you are able to pay off your loan early, it will usually take several years to repay. Making timely auto loan payments will help increase your credit score, which will allow you to get a less expensive loan the next time you purchase a vehicle. In fact, demonstrating responsibility with an auto loan is one of the best ways to improve your credit.
by Gregg Pennington
If you plan on financing your next vehicle, you should take some time to shop for car loan quotes. Naturally you want to get the best possible interest rate, since auto loan interest rates are closely tied to your credit rating and credit score. Although you will need an excellent credit scored to get the best auto loan rates, most people are still able to secure some kind of auto financing. Free quotes are widely available online, and by comparing a number of quotes, you will get an idea of what to expect.
The first step in shopping for a car loan is to order a free copy of your credit report. If you find erroneous items on the credit report, you should get them removed before financing a vehicle. Once you review your credit report and learn your credit score, you will have some idea of the interest rate you can expect to pay.
If you find that your credit is poor, there are steps you can take to improve your credit score. Close accounts that you use rarely or never, because having too many open credit accounts can adversely affect your credit score. Avoid having accounts maxed out, and try not to make any late payments before applying for your auto loan.
Be aware that an excessive number of inquiries into your credit can have an adverse effect on your credit score. However, some inquiries count toward your FICO score and others don't. If you authorize a lender to check your credit before applying for a loan or other type of credit, it will affect your FICO score. If you request a copy of your own credit report, or a business requests a copy of your report before performing a service or offering merchandise, it will not count against your credit score. Likewise, inquiries by a potential employer will not affect your FICO score.
There are a few steps you can take to improve your credit score before you apply for an auto loan:
- Close credit accounts which you seldom use, as having too many accounts may lower your credit score.
- Try to keep balances paid down as much as possible. A number of maxed out accounts could be viewed as a sign of the potential inability of an applicant to be able to make the payments.
- Obtain a copy of your credit report and check it for errors. Many people find inaccuracies on their credit reports that have lowered their credit score. You have the right to have corrections made to any inaccurate items on your credit report.
Once you have confirmed that your credit report contains only accurate information, you should build a history of timely payments, lowering your debt to income ratio and decreasing your total amount of debt. Increasing your credit score takes time, since negative items can remain on your credit report for seven years, and ten in the case of bankruptcy. Fortunately, older items are less important than your recent credit activity.
Now that you have the foundation for improving your credit in place, you are ready to begin shopping for auto loan quotes. Getting online quotes is a quick and efficient way to test the waters and see what kind of rates and terms you will be able to procure. Obviously you want the best car loan rates possible, but you should also be aware of the terms offered and the length of the loan. If lower monthly payments are your goal, you may greatly extend the time it takes to pay off the loan.
Don't overlook banks and credit unions where you already do business as sources of auto loan financing. They may offer you significantly lower interest rates and give you more flexibility in the repayment terms of your car loan. Don't eliminate dealer financing as an option when purchasing a vehicle; just be aware that car dealers often add extra points in exchange for a lower interest rate, or charge more for the vehicle itself.
Unless you are able to pay off your loan early, it will usually take several years to repay. Making timely auto loan payments will help increase your credit score, which will allow you to get a less expensive loan the next time you purchase a vehicle. In fact, demonstrating responsibility with an auto loan is one of the best ways to improve your credit.
My Bad Credit Car Loan
My Bad Credit Car Loan
by Noel Clarke
There are not many people in this world who do not get excited by the prospect of buying a new car. This excitement can sometimes be deflated by the whole finance thing. If your credit history is not so good, or basically non existent, then you may need to find a bad credit car loan.
The fact is buying a car for most people is one of the biggest purchases they will ever make. Owning a car is kind of like a right of passage for a lot of people, and definitely a sign of "coming of age" for most teenagers. Let face it , we all need a reliable car to get around, and most of us would rather drive a nice new or late car than an old bomb. But nice new or late model cars are obviously a lot more expensive than old cars, and that means that most of us will require some sort of finance. The problem is that if you have a poor credit history, or have not had time to establish a good credit record, then its going to feel like the whole financial system has it in for you. Unfortunately banks and most financial or lending businesses do not look favorably on people with no or bad credit history's.
But before you decide to give up, bad credit finance is available, be it a bad credit personal loan, or in the case of buying a car, a bad credit auto loan.
The first choice is always to contact the bank you normally do business with, and always take a bit of time to prepare your case in writing before contacting your bank for an appointment. Make sure you have all the facts about the vehicle you would like to purchase, such as price , model, year , mileage etc. Also do a bit of research on repayment schedules, so that you have some idea of what the down payment and repayments are going to be, and how you intend to meet those repayments. On the subject of approaching your bank, it is a good idea to look respectable, wear some nice clothes and do your hair and in the case of men have a shave before going. Remember the old saying about "first impressions". Another point to bear in mind, is that quite often the bank will be more inclined to grant you bad credit finance on a newer vehicle, due to it having more value if the bank should need to repossess it.
If your bank turns you down, it is not the end of the line.
There are lenders out there who specialize in bad credit finance, and who will be able to furnish you with a bad credit car loan. The fact is , some of the bigger motor car dealers would be willing to give you a bad cedit auto loan. When considering bad credit financing, it is advisable to shop around and do your homework, because the interest rates offered can vary quite significantly between the various lenders. A good starting point for researching the various bad credit financing institutions is of course the internet. By using the search engines like Google, Yahoo etc, you will find many lending businesses where you can submit aloan application. From there it is a fairly simple matter of filling out and submitting an application form.
When buying a car, some things to keep in mind may include. If you are planning to buy a used car, get a friendly mechanic to give it a once over. Keep in mind additional costs such as insurance, registration etc. And most importantly, to enjoy the pride and freedom that owning your own car creates.
by Noel Clarke
There are not many people in this world who do not get excited by the prospect of buying a new car. This excitement can sometimes be deflated by the whole finance thing. If your credit history is not so good, or basically non existent, then you may need to find a bad credit car loan.
The fact is buying a car for most people is one of the biggest purchases they will ever make. Owning a car is kind of like a right of passage for a lot of people, and definitely a sign of "coming of age" for most teenagers. Let face it , we all need a reliable car to get around, and most of us would rather drive a nice new or late car than an old bomb. But nice new or late model cars are obviously a lot more expensive than old cars, and that means that most of us will require some sort of finance. The problem is that if you have a poor credit history, or have not had time to establish a good credit record, then its going to feel like the whole financial system has it in for you. Unfortunately banks and most financial or lending businesses do not look favorably on people with no or bad credit history's.
But before you decide to give up, bad credit finance is available, be it a bad credit personal loan, or in the case of buying a car, a bad credit auto loan.
The first choice is always to contact the bank you normally do business with, and always take a bit of time to prepare your case in writing before contacting your bank for an appointment. Make sure you have all the facts about the vehicle you would like to purchase, such as price , model, year , mileage etc. Also do a bit of research on repayment schedules, so that you have some idea of what the down payment and repayments are going to be, and how you intend to meet those repayments. On the subject of approaching your bank, it is a good idea to look respectable, wear some nice clothes and do your hair and in the case of men have a shave before going. Remember the old saying about "first impressions". Another point to bear in mind, is that quite often the bank will be more inclined to grant you bad credit finance on a newer vehicle, due to it having more value if the bank should need to repossess it.
If your bank turns you down, it is not the end of the line.
There are lenders out there who specialize in bad credit finance, and who will be able to furnish you with a bad credit car loan. The fact is , some of the bigger motor car dealers would be willing to give you a bad cedit auto loan. When considering bad credit financing, it is advisable to shop around and do your homework, because the interest rates offered can vary quite significantly between the various lenders. A good starting point for researching the various bad credit financing institutions is of course the internet. By using the search engines like Google, Yahoo etc, you will find many lending businesses where you can submit aloan application. From there it is a fairly simple matter of filling out and submitting an application form.
When buying a car, some things to keep in mind may include. If you are planning to buy a used car, get a friendly mechanic to give it a once over. Keep in mind additional costs such as insurance, registration etc. And most importantly, to enjoy the pride and freedom that owning your own car creates.
Thursday, March 12, 2009
Things To Avoid When Getting Your New Car And Auto Loan
Things To Avoid When Getting Your New Car And Auto Loan
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
Know How To Play The Game With An Auto Loan
Know How To Play The Game With An Auto Loan
by Jon Arnold
Applying for and receiving an auto loan is a relatively easy process, even if you have bad credit or bankruptcy on your credit report. There are mountains of lending institutions that will give you very attractive rates on an auto loan, even if you have bad credit or a late payment history.
Obviously, the cleaner your credit record, the more attractive the rates will be. With the price of new cars these days, the difference of a couple of percentage points on a car that costs $30k or more can add up to several hundred dollars over the course of the loan. In that light, you may want to take the time to get a copy of your credit report and review it. This is particularly important when you consider the fact that the majority of consumer credit reports have errors in them, which in turn lead the credit bureau to produce a credit score for the consumer that is lower than it really should be without the errors. You have a right (and also, many say, a DUTY) to dispute those errors on your credit report so that your credit score is as accurate as possible.
The next thing to consider about the terms of your auto loan are how long you wish to finance the car for. Again, with the price of new cars being so high these days for a nice car, some loan companies are allowing up to 72 months (6 years) or even more in some cases to repay the loan. While this makes the monthly payment appear to be extremely attractive and affordable, keep in mind that you do NOT want to get into a situation down the road where the car is falling off the tires and you still have a year or more of payments to make on it. Gauge the number of years to take out the loan for, and then estimate realistically the number of miles that you will likely drive in a year. For example, if you estimate that you will drive 25k miles per year, do the math - that car will have 100k miles on it at the end of just 4 years, and will also likely have almost no trade-in value.
Now be aware of the "game" that car dealerships play with the base amount. You want to feel that you have gotten a good deal on the car, no doubt about that. So you haggle and negotiate with the car salesman to arrive at a price, where that price is significantly below what the window sticker says the car should sell for.
But that is not the end of the story. You have probably gone online and found the trade-in value of your existing car. If your existing car is somewhat late model, and realistically in "fair" condition (not "excellent" and perhaps not even "good"), there are places online where you can find out what the dealer should give you as a trade-in value on that car.
But what the online sites do not tell you is that you can expect that much trade-in value on your existing car if you are paying sticker price for your new car. But you should never pay sticker price for your new car! Let's look at an example.
Say the new car you want has a sticker price of $35k and you found online that your existing car in "fair" condition should be worth $5k on a trade-in. That means the new car will cost you $30k. If you pay sticker price, that is probably the way the deal would work out. But if you negotiate the price of the new car down to say $32k, now the dealer will only give you $2k for your trade-in, despite what your online source says you should get as trade-in value on it. The end result is exactly the same - the new car is going to cost you $30k.
Be realistic about how much you are going to finance for your new auto, how long you will take the loan out for, how much can you comfortably afford to put down on it so that you are financing less, then factor in the realistic trade-in value for your existing car, and after all that is done, THEN you have a figure to work with when shopping for your new car financing!
by Jon Arnold
Applying for and receiving an auto loan is a relatively easy process, even if you have bad credit or bankruptcy on your credit report. There are mountains of lending institutions that will give you very attractive rates on an auto loan, even if you have bad credit or a late payment history.
Obviously, the cleaner your credit record, the more attractive the rates will be. With the price of new cars these days, the difference of a couple of percentage points on a car that costs $30k or more can add up to several hundred dollars over the course of the loan. In that light, you may want to take the time to get a copy of your credit report and review it. This is particularly important when you consider the fact that the majority of consumer credit reports have errors in them, which in turn lead the credit bureau to produce a credit score for the consumer that is lower than it really should be without the errors. You have a right (and also, many say, a DUTY) to dispute those errors on your credit report so that your credit score is as accurate as possible.
The next thing to consider about the terms of your auto loan are how long you wish to finance the car for. Again, with the price of new cars being so high these days for a nice car, some loan companies are allowing up to 72 months (6 years) or even more in some cases to repay the loan. While this makes the monthly payment appear to be extremely attractive and affordable, keep in mind that you do NOT want to get into a situation down the road where the car is falling off the tires and you still have a year or more of payments to make on it. Gauge the number of years to take out the loan for, and then estimate realistically the number of miles that you will likely drive in a year. For example, if you estimate that you will drive 25k miles per year, do the math - that car will have 100k miles on it at the end of just 4 years, and will also likely have almost no trade-in value.
Now be aware of the "game" that car dealerships play with the base amount. You want to feel that you have gotten a good deal on the car, no doubt about that. So you haggle and negotiate with the car salesman to arrive at a price, where that price is significantly below what the window sticker says the car should sell for.
But that is not the end of the story. You have probably gone online and found the trade-in value of your existing car. If your existing car is somewhat late model, and realistically in "fair" condition (not "excellent" and perhaps not even "good"), there are places online where you can find out what the dealer should give you as a trade-in value on that car.
But what the online sites do not tell you is that you can expect that much trade-in value on your existing car if you are paying sticker price for your new car. But you should never pay sticker price for your new car! Let's look at an example.
Say the new car you want has a sticker price of $35k and you found online that your existing car in "fair" condition should be worth $5k on a trade-in. That means the new car will cost you $30k. If you pay sticker price, that is probably the way the deal would work out. But if you negotiate the price of the new car down to say $32k, now the dealer will only give you $2k for your trade-in, despite what your online source says you should get as trade-in value on it. The end result is exactly the same - the new car is going to cost you $30k.
Be realistic about how much you are going to finance for your new auto, how long you will take the loan out for, how much can you comfortably afford to put down on it so that you are financing less, then factor in the realistic trade-in value for your existing car, and after all that is done, THEN you have a figure to work with when shopping for your new car financing!
Monday, March 9, 2009
Auto Loan After Bankruptcy
Auto Loan After Bankruptcy
by Alexander Anderson
In the past, people who had filed bankruptcy would not ever dream of getting a car loan. No financial company or bank would ever dare to extend a loan to people with poor credit, but now this is outdated, as there are more and more loan companies and they are ready to approve to these loan applications. It may surprise you, but it is easier to get approved for an auto loan, than for another kind of loan. As auto loans are collateral-based loans, and if you do not repay your money, the lender can use your car, or other type of vehicle as collateral against the loan.
The process of getting financing to purchase or refinance a vehicle after bankruptcy is a bit different from applying for a car loan with good credit. You will need to get approval from the trustee, who will handle your finances. To get this kind of approval you need to establish your expenses, also provide information about your current income. At last, give an acceptable explanation about the necessity of having a car. For example for taking kids to school, for transportation for work, or just some other serious reasons. After these provided information, the trustee will decide if you really need an automobile, and if you are capable to pay for your bad credit auto loan.
Auto loans after bankruptcy are very popular amongst people, because it is the easiest way to re-establish your credit soon. However, the downside is that it carries a very high interest rate, especially if your bankruptcy was recently discharged. Interest rate is very much depended on your credit score as well. If you have very bad credit, interest rate increases. For example if this rate is 9 or 10 percent, it may climb to 18% in case of having very bad credit. Nonetheless, if your credit score improves, you will have chance to refinance for a better rate.
The other option is to wait for a year or two to avoid high rates. During this period, you will pay most of your bills, your credit score will improve and then it will be possible to obtain an auto loan with fewer rates.
You should beware of unethical and shady lenders. Compare rates offered by different companies and find out the most reliable and reputable one. With this, you minimize the chance of being deceived, or use a service of an auto loan broker, for more financing options, as they have access to many lenders.
by Alexander Anderson
In the past, people who had filed bankruptcy would not ever dream of getting a car loan. No financial company or bank would ever dare to extend a loan to people with poor credit, but now this is outdated, as there are more and more loan companies and they are ready to approve to these loan applications. It may surprise you, but it is easier to get approved for an auto loan, than for another kind of loan. As auto loans are collateral-based loans, and if you do not repay your money, the lender can use your car, or other type of vehicle as collateral against the loan.
The process of getting financing to purchase or refinance a vehicle after bankruptcy is a bit different from applying for a car loan with good credit. You will need to get approval from the trustee, who will handle your finances. To get this kind of approval you need to establish your expenses, also provide information about your current income. At last, give an acceptable explanation about the necessity of having a car. For example for taking kids to school, for transportation for work, or just some other serious reasons. After these provided information, the trustee will decide if you really need an automobile, and if you are capable to pay for your bad credit auto loan.
Auto loans after bankruptcy are very popular amongst people, because it is the easiest way to re-establish your credit soon. However, the downside is that it carries a very high interest rate, especially if your bankruptcy was recently discharged. Interest rate is very much depended on your credit score as well. If you have very bad credit, interest rate increases. For example if this rate is 9 or 10 percent, it may climb to 18% in case of having very bad credit. Nonetheless, if your credit score improves, you will have chance to refinance for a better rate.
The other option is to wait for a year or two to avoid high rates. During this period, you will pay most of your bills, your credit score will improve and then it will be possible to obtain an auto loan with fewer rates.
You should beware of unethical and shady lenders. Compare rates offered by different companies and find out the most reliable and reputable one. With this, you minimize the chance of being deceived, or use a service of an auto loan broker, for more financing options, as they have access to many lenders.
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