Posts tagged ‘Car financing’

Why You Should Get Car Financing Online

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Getting a guaranteed auto loan can be a very daunting experience, especially if you don’t even know where to begin! Luckily, you have options. The Internet is full of companies specialized in getting you the loan you need. There is a large variety of guaranteed loan companies, just make sure you do serious research before deciding to put your trust in one.

Your Credit Score

If you have ever tried to get a guaranteed car loan you might have noticed the main concern for the lender is your credit score. This is no longer a problem! Many financial institutions realize that times are tough and are more than willing to take a chance on you. However, you may find it difficult to approach these lenders.

Search Online For the Right Lender

An online search could result in a lender that offers a car loan without a co-signer, but still with a reasonable rate of interest. In many cases, these lenders will suggest a used car. This makes the size of the loan smaller and the monthly payments more manageable.

Comparing Lenders

Once you find suitable lenders you can compare terms and conditions. Compare before you apply. Too many applications results in too many people looking into your credit report. The fewer people looking into your report the better it is for you in the long run.

Online Research Gives You More Info

If you need a new car a guaranteed auto loan from an online lender may be the best option for you. It is fast, easy and you have access to many more potential lenders than you would otherwise. Online research also lets you examine each potential lender more closely. Talking face to face with a loan officer is intimidating. You might forget to ask relevant questions. You might skim over the fine print instead of reading each document thoroughly. Plus, more choices means you will be able to negotiate a better deal!

A Quick Guide for Student Car Financing

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There are now auto loans for students that enable them to get a loan without having any credit. By showing that you have a down payment, proof that you are employed and have a checking account you can be off to the races at achieving that purchase you so long for. But in many cases this is a lot easier to say than do.

Establishing Credit

Most students have never had a credit record or are just at the beginnings of acquiring one and the banks want you to have one already established before they take a chance on lending the money.

With all the expenses that a student already has, tuition, books and other living expenses, it`s hard to find any extra to purchase a car. That`s where the student loan car financing comes in.

Apply Online

By applying online a student can almost right away be accepted for a loan. It`s hassle free and fast and you won`t get charged for late payments. Also this is a good way to either build your credit or repair it.

Searching online for pre approved loans will bring up quite a good selection of companies willing to help you and give you a loan quote. The quotes are free and there is no obligation to purchase. Of course the quotes will depend on your budget and what you need for the car purchase. Based on the strength of your employment record they will select the best options for you to choose from and allow you to go on out and select your car.

Sub Prime Lenders

Sub prime auto lenders are good if you have a bad credit rating as well although keep in mind the interest will be a little higher due to the fact that they are risking lending you the money.

All in all auto lenders will make it a lot easier for the student to get that car.

How Car Financing Works

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If you have ever bought a new car before you probably have a pretty good idea how financing works. Or do you?

Think Before You Sign

Most car buyers never think twice about the financing options they are offered at the dealership. They take whatever is offered, sign away their rights and agree to a series of things they don’t need but think they do because the salesman or financing agent at the dealership, told them they do.

When it comes time to finance your next car do yourself a favor and shop around for the best deal.

Consumers don’t think anything of driving two miles further down the road to save fifty cents on a gallon of milk, but they won’t budge from their seat at the dealership to get a better deal on financing.

Little Extras Add up Quickly

Dealerships make the majority of their money from the little extras they tack on at the end of the deal, after you agree on a price for the vehicle. The undercoating, security system, stereo and navigation system they offer to add on.

Dealers also make a bigger profit off you than they would care to admit. They get rebates from the manufacturers which they could offer you, sure, but they also get discounts for selling certain vehicles which they usually don’t offer buyers.

No one sells cars for free, it wouldn’t make any sense at all. Paying cash for a new car is not an option for most of us. If you can save more on interest than you would earn if you put that money in a savings account than it is definitely a good idea to pay cash for it. If not, or if you just don’t have the cash on hand to pay for your car in full you are just like most people. That doesn’t mean you let yourself get ripped off, however.

Everybody Wants to Make Money

Financing comes down to money. The lender wants to make money, and they will from the interest they earn off you in the form of monthly payments. The term you set for your loan also has a lot to do with how much money they will make. Sure, you can lower your payments by extending the life of your loan, but in the long run you will pay more in interest so you really are not saving yourself any money at all.

Put More Money Down

You can also lower your payments by putting more money down on your vehicle. This is always your best option because it shows the lender you have a vested interest in paying off the loan and that in turn should result in a better interest rate and lower monthly payments.

Do Your Homework

When it comes time to finance your next new vehicle do yourself a favor and do your homework. Compare vehicle prices, compare financing options and don’t sign anything or buy anything you are not absolutely sure you need.

Why You Should Shop for a Loan

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When it comes time to buy your next new vehicle do yourself a favor and start shopping for a great loan first.

The financing part of buying a car is usually the most important part. Sure, you need a certain type of car and you will be stuck with it for years to come, but the money you could lose by choosing a financing option that doesn’t offer you good terms is worth more than a good looking car.

Know Your Credit Score

Start by getting your credit report and giving it a good review. Check for errors, they are not uncommon, and fix anything on there you can fix. Your credit report impacts your credit rating which in turn impacts the rate of the loan you will need to buy your new car.

How Much Can You Afford

Next, decide how much car you can afford. Look at your monthly bills and determine how much more you could afford to pay every month for a car payment. You also need to know what the likely interest rate is that you will pay. Look around and see what is being offered, because it is likely what you will pay too. Then go online to a car payment calculator (there are many) and use this information to determine how much car you can afford.

Put Down as Much as You Can

Remember, the more money you put down on your new car the lower you can make your payments. Also, the longer you need to pay it off can also have an impact on your monthly payment. It also means you will pay more in interest, so be careful.

Ask Your Bank First

Once you have this information in hand you can start shopping around at lending institutions. Start at your local bank. They have known you for years and are more willing to deal with people they have an on going relationship with. Ask about financing your new car through them and see what terms they can offer you. Then take this same information to the local credit union and comparison shop. Don’t be embarrassed to show them the deal you were offered at your bank and ask them to beat it. Credit unions were mostly unaffected by global recessions and are looking to expand their businesses right now so they might be more willing to deal with you and make a great offer.

Go Online

With those bids in hand head online and start shopping internet financing agencies. Unlike a traditional bank an online financing agent does not have a brick and mortar office they need to pay for so they will likely offer you a better rate than either a bank or credit union. You won’t know if you don’t ask so do your homework and check around before committing to anything.

Now You Can Face the Dealer

With all this information in hand you are ready to face the dealership. Once you pick the car you like, knowing full well what type of financing you can get for yourself, you can ask them what they can do for you. If it doesn’t measure up to the offers you have received, no need to worry. You did your homework like a savvy consumer and can take care of the financing yourself.

Should I Get My Own Financing?

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Every good shopper knows the importance of comparing prices before you buy anything. The same rule applies to buying a new car. In fact, with prices as high as they are and interest rates going up, now it is even more important to shop around for the best rate on everything.

If you can get your own financing deal, do it

The best way to secure your own financing is to check your credit report for errors and get a copy of your credit score. Keep this with you at all times.
Lenders will want to know your credit score before they can give you a quote on financing terms. The dealership too will want to know your credit score before making any sort of financing offer.

Getting your own financing deal is all about saving money in the long run. Banks and lenders of all sorts are in business to make money and they make money in a number of ways. If you are not a savvy shopper they will try to make as much money as they can from you, but you have control. Keep a good credit record, pay your bills on time and avoid bankruptcy and you will have a pretty good credit score. This is an important step toward securing a good loan.

Dealerships will want to arrange financing for you

Dealerships make financing available to their customers because they can make more money this way. In fact, after you negotiate the price of your car the financing person, who is paid on commission, will try to sell you a number of things you likely do not want, did not ask for and do not need.

Undercoating body spray for one, is a great way for the dealership to make a little extra money off your car purchase. So is the addition of a security system, a new stereo and navigation system. An extended warranty is another great excuse for them tack a little extra on to the cost of your vehicle. Before you know it they have increased the price of your new car by a few thousand dollars, all of which they will gladly provide financing for.

Shopping for your own financing deal is a way of self-preservation

Don’t let the dealer take advantage of you by being your sole banking representative. They are looking to make a profit, nothing wrong with that. You need to be looking to protect your investment, and there is nothing wrong with that.

Do yourself a favor, next time you are in the market for a new car, get your own financing. Then when you walk onto the lot you will know how much new car you can afford and relax knowing it is already paid. All you have to do is decided which one you want.

6 Disadvantages of a car lease

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Car lease is a common option for individuals who are not capable of buying a car. This is also an option for individuals who want to switch vehicles every now and then. Just like buying a car through a car loan, lease involves monthly payments, interest rates, and credit checks. There are also differences between the two. In financing a car purchase through loans, you can actually own the car as soon as you pay the loan off while in leasing you need to return the car to the leasing company where you obtained it when the lease term ends. Besides these, there are other disadvantages involved in a car lease. Some of these are included in this article to provide you with greater understanding and this includes the following.

Payments and costs involved

Leasing a car is actually expensive compared to buying a vehicle through auto loans. This is because there are many fees involved in leasing that are not found on car loans. These fees include leasing costs and financing charges.

Useful advice for bank auto loans

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Bank auto loans are considered as one of the best loan to finance a vehicle. Banks may offer competitive and most of the time lower interests for car loans compared to other lenders. In addition to this, banks also offer longer loan terms for most loans. However, bank auto loans are not for everyone. There are certain aspects of these loans that you need to qualify.

In case you decide to consider loans from banks to finance your car, it is important to conduct some research first before doing the actual search. Useful advices on how to secure bank auto loans are outlined in this article to guide you in doing your research.

Know your credit score

Banks perform extensive credit checks before allowing you to apply for bank auto loans. Most banks require a credit score of more than 600 to qualify for their loans. Given this, it is important to know your credit score.

Try to visit more banks and inquire for the credit score requirement for the loans they offer. You can also search for the credit score requirements from websites owned by banks. Take note of these and make a short list of those that requires the score that is similar to what you own. Through this, you can identify the banks that could provide the loan.

Check your current loans

Before going to banks to apply for loans, it is important that you check your current loans. This might be included on your credit history but it is best to examine this separately. Most banks would not provide loans to individuals with many outstanding loans.

In some cases, banks would grant loans with higher interest to borrowers with few outstanding financial obligations from other lenders. To avoid higher interest, you might consider paying some of your loan off before getting a bank auto loan.

Check your history with banks

Checking your previous transactions with a bank could also help you qualify for the loans they provide. In case you obtained a loan from them previously and was able to complete the payments on time, the bank would most likely offer the financing you need. They might disregard the current loan check requirement and even provide you with better loan rates despite your low credit score.

Tips in obtaining financing for an exotic vehicle

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Car financing can also be used to finance an exotic car. This may sound like a conventional car financing. Financing an exotic vehicle is more risky and involves greater capital outlay. This type of financing requires careful planning compared to conventional car loans. You need to do the necessary procedures involved in order to obtain your goal of exotic car ownership. Obtain the proper financing option for an exotic car using the following tips.

1. Figure out the proper budget for the exotic car purchase. Consider the budget that you can afford and the available sources of funds to pay for the monthly payments involved in the exotic car financing. Be realistic in making the budget to avoid getting additional risks.

2. Consider the possible assets you own and use it to obtain the best financing terms offered. These assets include home equity and life insurance. You can also apply for personal loans by using these assets as the collateral. You can use the amount from your personal loan to finance the exotic car purchase. Personal loans are advisable since this type of loan involves lower interest rate and longer loan terms.

3. Look for credit terms and financing with competitive interest rates for exotic car using the internet. Look for online exotic car lenders using popular search engines such as Yahoo or Google.

4. Search for exotic car financing offers from banks and other credit unions. It is advisable to start searching for this type of financing from banks where you have an existing personal, business, checking, and savings account. You need to do this since banks are known to offer financing for their loyal and existing customers. Your local bank might offer you a better financing for your car since they have a record of some of your financial transactions with them.

5. Reverse the credit application process by allowing exotic car lenders to compete for the chances of financing your exotic car purchase. Competition between lenders could possible give you lower interest rate and monthly payments.

How to sell a car and provide financing for the buyer

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Car financing can be an attractive method to attract buyers for the car you sell. Besides this, you can also place advertisements on the local newspaper and the internet to further extend the chances of getting attention from car buyers. In addition to this you should also prepare the car as well as the necessary documents needed to allow the buyer to obtain financing. You can easily do this using the steps below.

1. Prepare the car for the upcoming sale. Inspect the car

Useful tips in financing an electric car

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Car financing can also be used to obtain loans for an electric car. Financing an electric car would be useful since its price is probably higher than a conventional vehicle. All you need to do is search for an appropriate lender as well as the most affordable loan rates. Search for the best financing for an electric vehicle using some of the useful tips below.

1. Check your credit report

Check your credit record before you start looking for financing designed for electric cars. Upon knowing this, you will be able to determine the interest rate suitable for your credit score. It is also advisable to check the FICO score you own. This three-digit number summarizes your credit worthiness. This also helps you to choose the appropriate lender that is willing to offer the financing you need.

2. Search for available financing deals offered for electric cars

Look for available financing options offered for electric cars. You can start shopping for loans from local banks and credit unions. This can be accomplished by visiting or calling the loan divisions of these agencies. You can also request for financial quotes from these agencies.

You can also search for available financing options through the internet. Websites maintained by electric car manufacturers are good sources of financing. Most of these sites are connected to lenders that offer electric car loans. You can make a short list of the rates offered by online and offline sources.

3. Choose the appropriate electric car

Choose an electric car that suits your needs. Since the prices of electric cars are relatively higher, you can select the cheaper type. The important thing is that it is able to provide the services you need.

4. Compare the loan rates offered for the chosen car

Upon knowing the available loan offers for your chosen car, you can compare the best rates they are offering. Choose a loan with the lowest interest rate and the monthly payments. You can select a loan from all of the available offers.

5. Apply for the chosen loan and have it approved

As soon as you choose the appropriate loan, make sure to apply for it right away. Submit all the requirements and do not hesitate to provide the additional documents that the lender would ask. Wait for the loan

Rights of an auto loan co-signer

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An auto loan requires a co-signer especially when the lender demands the loan applicant to produce such. A co-signer is usually required when you want to apply for a loan and your credit score is low. Due to your low credit score, lenders might consider you a high risk applicant. The co-signer serves as the lender

How to obtain commercial vehicle loans

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Commercial vehicle loan is an ideal type of financing in case you are planning to start a business as commercial vehicle owner or operator. This type of loan helps you start the business with minimum capital outlay. In order to obtain a commercial vehicle loan you need to know the proper procedures involved. Some of these procedures are included in this article.

1. Design a workable budget before applying for commercial vehicle loans offered by lenders. Be realistic with the budget in order to determine the amount that you can afford to pay in case lenders would grant the loan applications.

Although you expect the income of the business to increase on the first year of operation, you cannot use this to convince the lenders to grant the exact amount needed to start the business. The amount of loan you might obtain still depends on your credit score.

Since your credit reputation would serve as the basis of the loan rates you can obtain, there is a need to secure a copy of your credit history from one of the trusted credit reporting agencies. You need to study this and base your budget for the commercial vehicle loan. As soon as the budget is done, choose the best loan offer and apply for it.

2. Secure a copy of the lease agreement from the carrier you are planning to lease your vehicles with. Attach this with the loan application you submit to the lender. It is also helpful to choose a specific type of vehicle before negotiating with a lender.

You can also bring along pictures and other necessary information about the vehicle when you apply for the loan. Bank and other credit unions usually want to run the VIN to clarify your chosen vehicle

Tips in calculating car lease payments

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Calculations for your car lease payments are usually done by dealers and other financial agencies offering

Tips to calculate auto financing rates

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Car buyers need to calculate the auto financing rates they pay in order to avoid spending more than what they should. Although the calculations involved in this particular task is complicated, car buyers should allow themselves to learn how their payments are calculated. Try calculating your auto financing rates using the following tips.

1. Try to determine the interest rate placed on your loan. Always bear in mind that the interest rate is influenced by the credit score you own, the amount of money borrowed, and the loan

Benefits of auto loans

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Auto loans allow car buyers to purchase the cars they want without the need to pay the entire sum all at once.

How to assess different car dealer finance options

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Car dealer financing is one of the best options to finance a car. These loans are offered by car dealers to qualified customers in order to increase their sales. However, car dealers sometimes place hidden charges on these loans to earn additional profits. In order to avoid getting inflated loan rates, buyers should learn how to assess the best car dealer finance options using the steps below.

Step 1: Check the financing rates offered available lenders

Since car dealers are not lenders, assessment of the financing options they offer should start by checking the rates offered by lenders that are connected to dealerships. Check the loan rates offered by banks and other credit unions. Knowing the actual interest rates offered by these lenders helps car buyers to determine whether the loan rates from dealers are inflated or not.

Step 2:

Top car finance options

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Car financing allows car buyers to purchase their vehicles using different options. All they need to do is to determine the advantages and disadvantages of these options in order to get the best out of it. In addition to this, car buyers are able to select better ways to finance their cars based on the budget they possess. The best car finance options available in the auto market include the following:

1. Car financing from banks and financial institutions

Loans used to finance car purchases provided by banks and other financial institutions are considered as one of the top options in the market right now. These lenders provide competitive loan rates for existing and potential customers.

In addition to this, these lenders handle loans based on the existing Annual Percentage Rate and minimal hidden charges. Car buyers who want to secure loans from these lenders needs to be familiar with their credit scores in order to get their loans approved easily.

2. Dealership financing

Dealership financing is considered to be the most convenient type of lender. These lenders however offer high interest loans especially to those with bad credit status. Dealership financing are also popular for hidden charges.

The only advantages these lenders possess are they have specific loans for individuals that are not able to obtain from other lenders. Examples of these are loans for low credit score holders and loans for individuals with no existing credit records.

Tips to search for the best online car finance

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Car financing options are also offered online. All you need to do is search for these options on the internet using appropriate keywords. This set up is more convenient since it allows you to search for a lot of offers without going out of the house or the office. Some of the best ways to search for best car finance deals online are the following:

1. Search for financing deals using reputable search engines

One of the best ways to search for the best car financing deals online is by using popular search engines. Search engines such as Yahoo!, Google, and Microsoft