CarLoans.com Blog

Car Loans Online,Get the Best Car Loan That Is Right For You.Apply Now!

Subprime Car Loans - Two Warnings to Know Before Applying For Them

Posted on Dec 07, 2011 by Thalia Green
Dec 07

When standard auto loans are denied, subprime car loans are sought instead. Subprime creditors lend their money to those without at least a "Fair" rating for a credit score. It may seem like a generous second chance, but often this second chance comes at a steep price. Here are two reasons why someone with a bad or poor FICO score may want to reconsider getting a subprime car loan.

 

Massive Interest Rates

Every time a subprime lender allows subprime car loans, they take a risk of the borrower defaulting on the loan. To make up for this risk, the lender spikes the loan's interest rates. It will be quite a frustrating experience paying for deliberately elevated interest rates, especially after knowing what the normal interest rate should be. A person with a bad credit history probably won't have a choice in this matter; it's either take the subprime car loan or go without a vehicle.

 

A Lurking Repo Man

Vehicle repossession is another risk in accepting subprime car loans. Subprime lenders won't hesitate to get the vehicle pulled from the owner's possession. Just one late payment could mean the difference between driving and using public transportation. Some subprime car loan lenders have gotten especially furtive about how they go about repossessing vehicles. For example, they may provide a free GPS device in the purchased car. This implanted device can and will be used to hunt down the vehicle for a speedy repossession.

 

In October 16th, 2011, this practice got out of hand and ended with a Jacksonville car dealer facing a lawsuit by Florida's attorney general. Having a car repossessed will leave a long-lasting smear on a person's credit rating. Additionally, the harsh interest rates may make a loan seeker think twice about subprime car loans. Even with these potential problems, however, both borrower and lender know that having to deal with subprime car loans is still better than walking. If you're thinking of getting a subprime car loan, please proceed with caution.

 

Link: http://www.sunshineslate.com/2011/10/16/jacksonville-auto-dealer-sued-by-attorney-general-for-fraud-deception/

5 Things to Know About Military Car Loans

Posted on Dec 06, 2011 by Thalia Green
Dec 06

As a military member, you may either be looking into purchasing your first car or upgrading your vehicle to something a little more attractive or eco-friendly. When looking for military car loans, though, there are a few things to keep in mind.

 

Check With Your Command
Before getting into any kind of auto loan, but particularly those specializing in military car loans, it is highly recommended to check with your chain of command. Many commands have lists of trusted lenders and those recommended to stay away from. If you stick to the recommended lenders on the list, you're more likely to get command support if something goes wrong.

 

Rank Does Matter
Your lender will take your rank into serious consideration when you apply for an auto loan. They will be able to tell how much money you make per month, and they will be better able to base your monthly payments on your pay. While this is helpful, you should do a full budget of your expenses - both bills and discretionary money - to understand what you can afford prior to going in to the dealer.

 

Check Your Interest Rate
Be sure that you are getting the best interest rate possible. Interest adds up exponentially and can turn a $10,000 car into a $40,000 car instantly. Read the wording of the loan paperwork to make sure that if you choose to, you can make extra payments toward the principal of the loan without any penalties.

 

Pay-Off Penalties
Just as you may incur fees for paying in advance, you may also incur fees when it comes to paying off your loan early. Be sure you read the loan paperwork thoroughly.

 

Military Discounts and Specials
Not many places will advertise, but they may offer special military car loans, so don't hesitate to ask if they provide any discounts or special arrangements.

 

Being in the military means you get to travel, and whether that's traveling the globe or to the grocery store, you'll need a reliable vehicle. Do your homework before getting a military car loan, and you'll be sure to get a good vehicle that you can afford. 

Tags: ,

Car Loans Online

Calendar

<<  October 2018  >>
MoTuWeThFrSaSu
24252627282930
1234567
891011121314
15161718192021
22232425262728
2930311234

View posts in large calendar

Month List