Posts tagged ‘car loan’

Subprime Car Loans for People With Poor Credit

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Categories: Bad Credit Auto Financing
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Dreaming of driving a new car, but tormented by a poor credit history? Don’t worry. There are funding options available.

Shop Around

True, a perfect credit history can get you a better loan with lower interest, but if you shop around, you will be surprised at the financing options out there. First off, don’t rush into anything. Buying a new car is a big deal and should be thought through carefully. Take some time to save a few bucks every month. In no time you will have a nice sized down payment. The more you can put down, the less you will need to borrow. Also, don’t switch jobs just before looking for a loan. A solid work record will improve your chances for loan approval.

The Sub Prime Loan

You may try for a Sub prime auto loan. These loans are designed specifically for people with a poor credit history. And don’t forget collateral. If you have good collateral, the lender has security and is therefore more likely to give you a good deal. Anything you own outright or something with enough equity, like your house, can be used as collateral. But, a steady income is still the most vital point for securing any type of loan.

Get a Co-Signer

Getting a co-signer with good credit is another option for obtaining the car loan you want. With the co-signer taking equal responsibility for your loan the lender feels more confident in lending you the money you need. And you will get a better interest rate, too.

Choose Your Lender Carefully

Aside from the type of loan you need, you also need to consider who you are borrowing from. Car dealers are usually not your best choice. They want to sell you a car, usually more of a car than you can actually afford. They are more interested in the incentives they get for securing your loan than they are in getting you the best loan for your circumstances. It is better to get your own loan on your terms!

Guaranteed Auto Loan Pre-Approval

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If you are like most Americans then buying a car with cash is not an option

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!

Know the Value of the Car Before You Buy

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It is important to understand the value of a car value before you start looking into getting a loan. Never jump into some tempting auto loan deal before you do your homework.

Get to Know the Car

First off determine what the value is of the used car you are looking at. Know the history of the car and how well it is working. Many banks and loan institutions will approve a car loan by looking at your employment record as well as your credit. The problem here though is that in this day and age a lot of people have found themselves with bad credit through no fault of their own and the banks and institutions are never happy to serve you if you are one in this position. This brings the option to have a No Credit Check Car Loan.

Only Borrow What You Need

The amount that you need to borrow will carry a large interest rate, so don’t borrow more than you need. Even if you qualify for more, why get in deeper than you have to?

Living Without a Car is Not Easy

We all need a vehicle these days with having to drive to work, drive the kids to their activities, shopping, etc. And now there is an option for everyone. There is no need to feel discouraged and without hope at not being able to afford a car to get you around. So whether you have found yourself in dire straights because you have just found out that your credit has taken a nose dive these past couple of years, or you simply have never had credit before, you can find a better way to acquire what you need in a vehicle at a reasonable rate and most importantly, a rate that you are able to afford.

Different Car Financing Options According To Your Credit History

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Categories: Bad Credit Auto Financing
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These days everyone really needs a car, with long distance jobs, school activities, shopping, etc. Not everyone is able to go off to the bank and get a loan. There are now a lot of car financing companies on the internet that are offering auto loans to people who either have no credit yet or have bad credit. There is something for every situation.

Your Credit Rating

Your credit rating always seems to play the top role in whether or not you are able to get a loan.

You Can Get a Car Loan

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It`s common knowledge that with bad credit or no credit, things are made very difficult for the person wanting to buy a car. We all need a car these days and if you have absolutely no credit history or have a bad credit history, what can you do?

You can get yourself a no credit check car loan. These are also a great way for someone new to the country without credit here to be able to purchase that needed car for their new job.

What You Need to Apply

To apply for any type of loan the most important part is proof of employment or some type of income. Lenders need to know you have the ability to repay the loan. A good credit record helps, but you can get a loan with a low credit score these days. You also need a permanent address. The lender wants to know where to find you in case you don’t make your payments.

Research Different Companies

For no credit check loans you can expect to pay a higher interest rate because the lender is taking more of a risk. In these times of overpriced items and high taxes, the last thing you need is a high interest loan. Research different online companies and you should be able to find one willing to give you a loan with terms you can live with. There is a lot of competition on the internet. This means a lot of chances for you to find the right deal for your situation.

Get a Co-Signer

If you are able to get a co-signer, then that is the way to go! A co-signer with good credit is like money in the bank. You will get a great loan, low interest and the car of your dreams. Also make as big a down payment as possible. The less you have to borrow, the better!

Low Cost Auto Finance Packages

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Deciding to buy a new car is not something most of us jump into lightly. Much thought and preparation go into this decision as it is an expensive investment. Not only do you have to carefully examine your budget to see how much you can afford, you also have to be prepared to make payments for several years. Since most people need a car loan to buy a new car, finance companies try to make it possible for everyone to get one.

Choose Your Lender Wisely

Choosing an auto finance company is also not something to jump into lightly. Do your homework and make sure to read all the fine print before you sign anything. Online lenders offer all types of car loans to people with various credit ratings. From low interest rate car loans for people with a good credit history to bad credit loans, no credit check loans and after bankruptcy car loans for people with less than perfect credit history. Many online lenders offer instant loan approval so you aren’t sitting by the phone nervously waiting for the bank to call. In some cases you may even get approval the same day.

Benefits of Shopping Online

One of the main benefits of searching for a car loan online is that you can instantly compare loan offers from several lenders at the same time. Many sites are set up as comparison only sites. They don’t actually offer any loans themselves. Much like a comparison shopping site for goods. This is also a good way to assess rebates and discounts and decide which is best for your situation.

Various Financing Packages

Finance companies and banks offer various auto financing packages. Each package has its own set of rules and regulations, such as:

  • the length of the loan
  • how much your monthly payment will be
  • the rate of interest
  • and the size of the down payment

Bottom Line

How much of a down payment you put on your new car is essentially up to you. But, lenders do have a minimum amount they are willing to accept. Do your homework and you will get the right loan for you!

Points to Consider About New Car Loans

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With the vast number of new vehicles coming on the market every year, the main challenge isn’t finding the right one for you, but also to find the one you can afford. Most people have to borrow money to buy a new car. The economy being what it is, few people can dish out the cash needed to pay for a car out right. Therefore, new car loans are the only real option. Before talking to a potential lender about a loan, there are a few things you should consider.

Your budget

Your budget should be your first consideration. How much can you comfortably afford to pay every month? Once you know that you can start searching for financing deals that fit your budget. The interest rate and payment schedule are important factors, but specific stipulations also need to be considered. Is there any part of the agreement you won’t be able to live with? Another factor you need to seriously consider when buying a new or used car is the amount of down payment. Figure out how much you can afford, but keep in mind, the more the better. The more you can put down, the less you have to borrow. This could save you hundreds in interest!

Length of the loan

The length of your car loan is an important consideration. The lower your monthly payments, the longer time it will take to pay off the loan. This is good if you are on a tight budget, but will cost you more in interest. If you can make higher monthly payments you will be debt free sooner! You need to decide which method works best for you. Once you have your strategy figured out you are ready to approach lenders. And remember, new cars may come with a higher price tag, but in many cases cost less than a used car in need of many costly repairs!

Don’t miss payments

Once you have found the car you want at a price you can afford, secured your loan and taken possession of your new car, the only thing left is the payments. Missing even one payment puts a black mark on your credit. The more payments you miss the more black marks. Over time this has a very bad affect on your credit score. Your lender has trusted you with their money, now it is your responsibility to justify that trust. You don’t actually own your car until the loan is repaid. If you miss too many payments your loan is in default and the lender can repossess the car. If you fall upon financial difficulties, it is better to talk to your lender and come to a mutually agreeable solution before you start missing payments.

Car Finance – Three Great Financing Options

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When in the market for a new car purchase, there are more ways than one to finance this new car! Most of us can’t pay cash for the entire vehicle up-front. More than 80% of car buyers use some sort of financing options. With this method more people are able to get the new vehicle they need at a more manageable way of paying for it. The purchase price is broken down into manageable monthly payments. You have several financing options, each has its own pros and cons you must carefully consider before deciding on which is better for you.

0% Financing

Newly made popular by the automotive meltdown is 0% financing. This allows buyers to extend the life of the car loan without the normal interest rate that comes with a loan. Dealerships have this to be a great way to draw in customers. However, in order to qualify for this type of financing you have to have a nearly perfect score. Plus, you have less time to pay back the loan. Rather than having lower monthly payments and repaying the loan over a 5 year period, you might have high payments spread out over a 3 year period.

Cash Back

You might want to opt for a cash back incentive, instead. This option offers two choices. One offers a 0% APR and the other a cash back. Deciding which option is for you, you first need to figure out what dollar amount the interest amounts to over time. For example: a $10 000 loan at 5% will cost you about $500 in interest. If the cash back incentive is more than $500, take the cash back. If it is less, take the 0% financing.

No Money Down

Another option is the now famous

Auto Financing – Guaranteed

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In these trying times many families and individuals are suddenly finding themselves without a job. This quickly ruins the good you have spent years building up. Payments become overdue and there is nothing you can do about it. You are likely forced into taking a job at a drastically reduced wage and that doesn’t help you to get the car you so desperately need! Well, good news.

You Can Still Get the Car Loan You Need

It is no longer a must to have a huge income or perfect credit rating to get the car loan you need. Lenders are just as desperate for your business as you are for theirs! You can find many lenders extending bad credit car financing. A little research is all you need. Find the lenders and learn exactly what you need to do to improve your chances of getting accepted.

Trust the Experts

There are many more lenders than you may think, who are experts in dealing with credit problems of any kind. These lenders are easily approachable and they may be able to help you get the right loan for you. Even if you are rejected by dealerships, these lenders know the tricks of the trade and can often arrange to have your loan approved.

Dealers Can be Tricky

Don’t let the dealer pull your credit report, this could be a very costly mistake. Instead, find a reputable lender you can trust and allow him to handle your credit issues on a regular base. Browsing for cars does not automatically entitle every dealer to look at your credit report. The more inquires about your credit score, the worse this looks to potential lenders. A better plan would be for you to know your score and to have your own copy of the report.

Although you might not want to go around broadcasting your credit score, it is okay to discuss your credit issues with people you can trust and who can give you sound advice. And unless a lender is serious about financing your car loan, he has no business looking at your credit report!

Things to Consider About Auto Financing

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Cars have definitely become one if the “necessities” in our fast paced world. In days gone by one could walk to the local shops to get the things needed, but alas they are no more. Our population has grown, the land prices have risen and no imperative market place can be gotten to by foot for most. One needs a vehicle to get to the grocery store, the mall or ones place of employment. The problem is that being the owner of a car is no bargain. It has its own many demands.

This makes car

Find the Best Deal on Car Loans

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There are many of different kinds of APR

Ideas for Instant Auto Loans

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The internet has brought with it some fantastic options in the elements of finance. By just browsing online, you will instantly see how easy it is to get a very wide range of different options to choose from.

Faster Approval

If you use the online choices for auto financing your approval comes much faster than on foot! There is what is called

Points You May Overlook

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You might think that getting a car loan is a difficult thing to accomplish, but you are wrong! There are a lot of companies that will assure that you get what you need in a car loan.

Just remember to take into consideration the amount of time it will take to pay it off and tally that into your budget. Also, know that the car will lose value over that time.

Adequate Insurance

Make sure that you are covered well in case of an accident or if your vehicle is stolen. The costs of replacing the car are going to very much different than the actual cost of the car. We

Refinance to Lower Your Payments

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An auto refinancing loan is one of the best things that you need to obtain if your main goal is to cut down the monthly expenses that you have. However, not all creditors really know that car refinance is even available to them or even exists for that matter. Yet there is a very substantial amount of savings involved in actually doing this.

Save big

With just a few clicks of the mouse a big savings could very well be on its way. It

Keep Your Loan as Short as Possible

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Eventually there comes a time when we all need to get another car, whether new or used. Having the debt that comes along with it can be a burden. There really are very few alternatives though, unless you happen to have the cash that is. And how many of us have that stashed away for times like these?

Lower Your Payments

There are, however, a few tips to help lower the amount of payments coming out each month. First off if one has bad credit, there are dealerships

How to Get the Best Interest Rate

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You will want to find the best interest rate for your car loan, so it

Risks and Benefits of Refinancing

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Is it a good idea to refinance your car? You may have seen an ad on television telling you what a great opportunity this can be to allow you some extra money in your pockets. But before you run out and do this, it is important not to be reckless and do some homework.

What is Refinancing?

Refinancing is actually the transfer of your vehicles title from one lender to another. You are able to refinance your car as long as you are still making payments on it. Many specialists believe that if the record of your credit has improved, it is time to do some refinancing. If the rates of interest were high when you bought the car, and they are now lower, refinancing is a good way to lower those annual interest payments.

You May Get Lower Interest

Another good reason to do this is if you find a better loan interest rate. A 1% reduction is even worth looking at.

If you have never considered doing this it is worth going and having a look at some of the websites that will help you with your rate shopping. These are legit and helpful places.

After you

Car Loan Packages From Finance Companies

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For most of us it is well near impossible to buy a vehicle with our own cash, as in pulling it out of your pocket and not having to pay it back to anyone.
But now there are auto companies that will finance for you and they specialize in just that.

Nobody Wants to be Without a Car

Cars have become a necessary purchase in these times and there doesn

Low Rate Financing AND No Credit Check?

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Having the money is always the obvious factor in being able to buy a car. A major one at that!

Whether one has good or bad credit, it is always preferable to have low interest rather than high in auto financing. No one wants their monthly expenses to go up sky high after borrowing money for a car and now there is a solution. The internet will take you to lenders and dealers who provide many more options than if you were to go somewhere in person. This way one can also compare what each has to offer from your home.

Online service lenders allow you to skip all the running around to banks or other financial institutions who will want nothing less than a perfect credit rating.

One needs to also decide on which type of loan is the best and how to get a lower interest rate.

In helping to get you some low interest rate auto financing, check the tips below.

  • to achieve a guaranteed approved car loan with a low interest rate, it is wise to change the unsecured loan into a secured loan. Lenders want safety on their investments.
  • lenders online know that there is much competition out there for them in issuing low auto rate financing so they are

What You Need to get a Car Loan

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If you plan to finance your next car purchase you are not alone: more than 90 percent of all new car buyers need some sort of financing to buy their new vehicle.

If you are planning to buy a new car and finance it there are a few things you will need to do to make the experience less painful and more satisfying in the long run.

First Decide on the Car You Want

First things first. If you need a car try to determine exactly which one you want. Be a savvy consumer and investigate the different models and brands on the market. Look for the qualities you want, like interior space, cargo room, price and mileage. You should also consider the service record of the model you are considering: have previous buyers been happy with their new vehicle or have there been a number of service issues? Consider everything carefully before deciding on which model you want, but make certain you narrow down your choice before you ever set foot on a dealership lot.

How Much Can You Afford

You should start looking at financing options. How much car can you afford and what sort of financing can you get for it? These are questions you need to ask yourself and find answers before the real shopping begins. If you let the dealership make all these decisions for you, you might end up with a vehicle you would rather not have. A new car purchase is a big decision and one you have to live with for several years. Do your homework and don

Car Loans Online

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The days of running around all over town for the best deal on a car loan are over! With the Internet many things have become easier, that includes shopping for affordable car loans. Lenders certainly haven’t missed this golden opportunity to attract clients from all over the country. With a few clicks of the mouse you can have lenders competing for your business. There are many car loan sites that don’t even offer car loans. They offer you the chance to compare lenders. They do the research and compile a comprehensive list of lenders for you to choose from. You have your choice of numerous dealers and lenders from all over the nation. In many cases you might have to provide your Social Security Number, address and phone number. This helps the comparison site find the best rates for you. But, beware! You don’t want to hand out this type of information to just anyone. Be sure to only visit sites that can be trusted sites with this type of sensitive information.

Buyer Beware

Don’t let the convenience of online shopping let you throw caution to the wind! Arranging a car loan online is fast, convenient and effective. You can save a lot of time and money. But, if your identity is stolen, you contract a virus or you get ripped off by an unscrupulous lender, you no longer save anything. All you get is stress, extra costs and a big hassle!

Shopping for Car Loans Online

Online loan applications give you the opportunity to pick the deal that suits your needs from several different lenders in a matter of minutes. Finance companies on the Internet often cater specifically to clients with poor or short credit histories. Just as with any other type of contract, always read the fine print. A company may boast

After a Repossession: How Can You Get a Loan?

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Just because you have had a car repossessed doesn

If I Refinance a Car Loan Due to Bad Credit, Will it Lower the Chances of Approval for other Car Loans in the Future?

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These days everyone is concerned about their credit rating. They want to protect it like the treasured and valued asset that it is. A good credit rating can make the difference between a new house or an apartment; a new automobile or the same clunker you have been driving around for years.

Protecting your credit rating by paying all your debts on time and not defaulting on loans is an excellent idea, even if you do not have a new purchase in mind. However sometimes, despite our best intentions, things go wrong. We might lose a job, get divorced or have a serious medical issue which costs us thousands of dollars we didn

Is a Balloon Payment Car Loan Right for You

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If you need a new car but need a little time to pay it off, a balloon payment car loan might be a good choice for you.

With a balloon payment car loan borrowers pay smaller installments in the beginning and larger payments at the end of the loan. This is a great idea if you know you will have more cash on hand to pay off the debt toward the end of the loan repayment schedule.

Balloon payment loans are easier to get if you have good credit. If you have poor credit it is more difficult to get any type of loan, much less a balloon payment loan because lenders consider you a higher risk.

If you are pursuing a balloon auto loan you might need to consider making the deal a little sweeter for the lender. Securing a cosigner with excellent credit is one option for making you a better risk for the lender. You might also consider increasing your down payment. Increasing your down payment decreases your risk and shows the lender you have a vested interest in paying off the loan in order to recoup your investment.

You also need to consider the interest rate the lender is offering you. If the interest rate is too high it will not benefit you to pursue a balloon car payment loan. You need to know how much total interest you will be paying over the term of the loan. This will keep you from over reaching and ending up too far in debt to get out.

You should also be certain the loan fits your circumstances. Balloon payment car loans are best for borrowers who have a maturing investment or some other forthcoming payment which will enable them to repay the largest part of the loan when it comes due. You want the balloon car payment to come due when you are most able to repay the loan. If your loan continues too far beyond that point you will pay too much interest over time.

As the borrower you need to be certain you have the means to meet your obligations. Leaving a car loan unpaid can have drastic consequences for your credit history.

Is Getting a Car Loan Approved Online Within 24 Hours a Sure Sign of a Scam?

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A car loan approved within 24 hours of applying is not necessarily the sign of a scam, but there is a good chance you will be dealing with a sub-prime lender. More often than not, these types of loans are from loan companies specializing in sub-prime loans. These loans carry higher interest rates and the terms are much tighter. Be sure to read all of the documentation, especially the fine print, very carefully. The first place you should go for a car loan is your primary bank or financial institution. Loans from these lenders normally have the best rates and are these are the safest type of lenders. A dealer may be able to arrange a loan for you, as well.

The Internet is full of legitimate, as well as illegitimate lenders. Securing a loan online is fast, convenient and you may never have to step foot in a bank. Scammers, unfortunately, take advantage of borrowers looking to secure an auto loan online. It is quite simple for just about anybody to set up a legitimate-looking website. Always research the site. Make sure it is in good standing with the Better Business Bureau and other security organizations before you give out any sensitive information.

Some common online loan scams to look out for:

The Guaranteed Approval Loan Scam

When a lender claims you are absolutely guaranteed a car loan, keep in mind the old adage

What Are Your Online Auto Financing Options

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Online auto financing options have many things in common with standard in person auto financing options. As more and more consumers are buying their new or used cars online, it is important to be fully aware of all of your car loan options. It is a good idea to explore and compare car loan types and options available before you decide on which vehicle you want to buy. The first thing you need to know is how much you can comfortably afford. Then, you can begin your search for the best deal based on your financial situation.

Big Bank Loan

This is the first place you should look for a car loan. Whether you want to deal with a bank online or a brick and mortar bank, the loans provided by formal lending institutions are secure and most of the time, they offer the most competitive interest rates. Big banks can finance a loan for your vehicle purchase in person or online, it makes very little difference. To secure this type of loan, some extra effort may be required. You will probably have to have a face to face meeting with a loan representative and fill out quite a bit paperwork. In addition, you will have to agree to a credit check and any other financial history reports they might ask for. The payoff for this extra effort is well worth it as you typically get a much lower interest rate.

Non-Bank Lenders Online

Online lenders not associated with banks are many times considered less than reliable. These lenders vary vastly in terms of trustworthiness. Unfortunately, it is difficult to determine which lender will give you a fair deal. You can’t even be sure you will actually see the money you are applying for. In some cases you are hit with a slew of hidden fees, such as enormous service fees and high interest rates.

Loans Arranged through the Dealer

If you are buying a car from an online car dealer, just as in person car dealers, they will typically give you the option of in house financing. These loans are very convenient. You can submit your loan application while you are negotiating the purchase of a car. The loan application process is usually easy and hassle free. However, beware of dealers who provide loans with unfavorable interest rates. Dealers see lending money to customers as a convenience, but they are cautious of the potential risk to their business. They want to do everything possible to ensure a sizable profit and the least amount of risk, from the money they lend out.

If you are cautious and carefully read the terms of your loan agreement, agree the terms are reasonable and you are satisfied that you won’t be paying outrageous interest rates, then you won’t have any trouble securing a good car loan online.

Traps you Need to Avoid When Applying for a Car Loan Online

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Websites offering used car loans are very convenient. It is an easy way for people to obtain a loan for their vehicle purchase quickly and usually, hassle free. However, it is extremely important not to let yourself get caught up with the quickness and ease of the process. This could land you right in the middle of a scam. Some traps in the car loan industry can wind up costing you a small fortune, in addition to the loan itself.

Quick High Interest Car Loans

High interest rates and quickie loans go hand in hand. This is the most common trap for a quick, easy, no questions asked online car loan. Lenders will offer to finance your loan without looking at your credit score or asking for any other financial documentation. You might not even have to verify your income or your residency. They will lend you money without knowing any of your financial history. This might sound great upfront, but in exchange for this convenience, you will be paying astronomical interest rates. You could well end up paying more than double what your car is worth.

Unbearable Loan Terms

You might find that easy online loans leave very little wiggle room. You either agree to the lenders terms or you don’t get the loan. These terms might not seem too bad at first, especially if you desperately want that loan! But, after a while, these terms can become unbearable. Say your hours get cut or you lose you job altogether, you won’t be able to make your payments. This company is unlikely to let you renegotiate your terms. You will be stuck with high interest rates and high monthly payments with

Simplified guide in calculating the car loan cost using Excel

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Calculating the car loan cost by using an ordinary calculator can be difficult and time consuming. In addition to this, you might obtain an in accurate result due to unavoidable error. However, you can calculate the cost of a car loan by using Microsoft Excel. The use of Microsoft Excel can make the calculation easier. Besides this, it reduces the risk of mathematical error. In case you would calculate the loan cost using Excel, make sure to use the PMT function and the steps below.

1. When you use Microsoft Excel in calculating, make sure everything properly. Place the interest rate on cell A1 and label it as Interest Rate. The Months of Repayments should be placed on cell B1 and labelled as such. Use cell C1 for the amount borrowed and label it as Loan Amount.

2. Key in “=Interest Rate/12” in cell A2 and replace the Interest Rate with the yearly interest rate. For example, if your car loan has an interest of 5 percent, key in “=0.06/12”.

3. In order to calculate the number of months for repayments, use cell B2 and key in “=Years of Repayment*12”. After doing this, change the Years of Repayment into the number years of the loan. For example, a loan with a five-year term should look like “=5*12”

4. Type the amount borrowed in cell C2. In case you loaned $20,000 type $20,000 loan in cell C2.

5. Key in”=PMT(A2,B2,-C2)” in cell D2 to calculate the monthly payments of your car loan.

As soon as you know how to use Microsoft Excel in calculating the cost of the car loan, you would be able to determine the monthly payments that you would be paying each month. Through this, you can prepare the needed budget so as to avoid delayed payments.

How to conduct a car loan repayment calculation

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Calculating the car loan repayment is important before going out to shop for a brand new or used car. By doing this, you would increase the chances of getting the best deal from everything that is offered by dealerships. In addition to this, calculating the repayment amounts of the loan would allow you to determine that payment that you need to pay for each month. You can the principles of amortization and the basic algebraic formula in calculating the repayments. To make the calculation easier, you can use the steps given below.

1. To calculate the repayment for a car loan you can use this formula:

P x (i / 12)) / (1 – (1 + i / 12)-m)

This is consist of (P) which is the principal amount, (i) for the interest rate, and (m) for the number of monthly payments.

2. Start calculating by replacing the letters with the actual amount involved on the loan. For example, you obtained a loan of $15,000 with an 6% annual interest for 36 months , the formula would look like:

($15,000 x (6% / 12)) / (1 – (1 + 6% / 12)-36)

3. Try to calculate the monthly repayment of your loan using a scientific calculator using the formula in Step number 2. The answer would be ($15,000 x (6% / 12)) / (1 – (1 + 6% / 12)-36) = $463.15. This amount is free of taxes and fees, with no down payment.

4. Calculate the total amount that you would be paying on the entire term of financing. This can be accomplished by using the total monthly payment and multiply it with the number of months financed. Using the example on the 3rd Step, the total purchase and loan repayment would be:

$463.15 x 36 = $16.673.40

5. In order to figure out the total interest that you paid for the loan, you need to subtract the amount of principal from the loan

Simple steps in calculating the car loan cost

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It is important for you to calculate the car loan cost before you signing the loan contract. This is because knowing the cost of the loan would allow you to determine whether the payments involved would fit your budget or not. In order to do this, you should know the loan

How to gain advantage on a car loan

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Car buyers at present should exert efforts in order to obtain the best car loan for this year. This is because getting the best financing is not an easy task as it is during period of easy credit. In addition to this, most financial institutions are still experiencing the after-effects of the global financial crisis. Given this, it is still important to do your homework before dealing with car dealerships. You should bear in mind that even a 1% reduction from your current average car loan today could easily provide you with a $500 savings from the car purchase.

The best thing you could do still is to secure a pre-approved loan from a local bank or credit union before stepping on the dealership

Effects of failure to pay an auto loan

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Failure to pay the payments involved in an auto loan would probably create significant repercussions on your credit report. However, there are still a number of less serious outcomes in case you fail to make the loan payments. Lenders are businessmen so they don

Buying vs. leasing analysis

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When you are in need of a car you might encounter the situation wherein you need to decide whether to buy a car through a car loan or get a car lease. The decision that you would make should not only based on which of the two options has affordable rates. You also need to consider your preference on how to obtain the vehicle and how you would drive the car.

Outcomes of buying and leasing

When you buy a car through financing, you need to obtain loan that usually lasts for 3-5 years. Within this period, you would be paying monthly payments and interest rates. However, you get the ownership of the vehicle as soon as you pay the loan off. In case you want to sell the car you have all the right to do so and enjoy whatever profit you earned from the sale.

Leasing a car on the other hand also involves monthly payments and interest rates. The term of the lease would also be similar to car buying but leasing has different outcome. As soon as the lease term ends, you are required to return the car. This simply means that you don

8 Steps in selling a car which is still under financing

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Selling the car which is still under financing might be difficult. This is because it involves a lot of things to consider such as the price that you would place on the car as well as the balance that you need to pay to clear the lien of the vehicle.

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 tips in getting the lowest interest rate on a car loan

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There are many ways on how to obtain the lowest interest rate on a car loan. You only need to be patient enough since finding the best interest rate usually takes a lot of time. Always remember that you should not accept the deals offered by most lenders without examining it carefully. Make sure to choose the offer with the lowest APR for this would provide you greater savings. In case the loan rates offered to you are higher, you can search for better rates using different sources.

How to find the best rates from quick car loans

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Quick car loans are currently quite common. These loans are easy to obtain. To provide quick car loans, most lenders such as banks and credit unions have created their own websites to accommodate customers that are in hurry to get loans to finance their car purchase. Although these loans are easy to obtain, you also need to be careful in selecting the loans you obtain, for this might cause damages to your credit report. In order to get the best quick car loans, this article has enumerated some tips on how to do this.

Choose the appropriate online lender

Since there are many online lenders that offer quick car loans, you need to select the appropriate lender that could provide you with good rates. You can use reputable websites such as LendingTree.com to locate the best lenders for you. Since these sites are connected to a lot of lenders, you have a greater chance of finding a reliable loan provider as well as loans with budget friendly rates.

You can also search for quick car loans using search engines such as Yahoo!, MSN or Google.

How to reduce your car loan’s APR

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Reducing the APR on your new car loan can help you to save hundreds of dollars. In case you are interested in reducing the APR, there is a need to for you to search for the useful ways on how to accomplish this. Some of the useful procedures in reducing the Annual Percentage Rate of the loan are written below.

1. Maintain a good credit rating

One of the most effective ways to reduce your car loan

What you need to know about auto loans

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There are a lot of concerns that must be taken into consideration before getting an auto loan. Since this type of loan allows you to purchase a car using the money from lenders, this involves monthly payments and interest rates. In order to avoid spending more than what you can afford on these loans, educate yourself with the important facts about car loans. Some of these facts are the following:

1. Getting auto loans require proper planning

Proper planning is important before you decide to obtain loans from lenders. You need to look upon your monthly income and expenses. Through this, you will be able to determine the exact amount that you can afford for a loan.

Based on what you can afford, search for a car loan that fits into your budget. Do not hesitate to consider a low-priced car in case your budget states that it is what you can afford. Shop for better loan deals offered and extend your search by using the internet.

2. Auto loan rates depends on your credit score

Your credit score greatly affects the number of loans that you can qualify for. When your credit score is high, this could mean that there are many loans that are available for you. In addition to this, the interests of these loans would probably be lower since your credit score is high.

A low credit score on the other hand could mean higher interest rates and limited loan offers. This is because lenders would view you as a high-risk creditor, thus placing higher interest on the amount you would borrow from them.

3. Auto loans might need building your credit score

You might also need to build your low credit score before getting a new loan. This helps lower down the interest that you pay for the amount borrowed. You can build your credit score by getting affordable loans and paying the payments involved in it faithfully. Once you pay the loan off within the designated term your credit score would probably increase. This makes your next loan application easier and more affordable than it was before.