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How to successfully get new car loans

Posted on Aug 13, 2012 by Thalia Green
Aug 13

Those interested in securing a new car loan require carrying out some research in order to get the best possible deal. It is common practice for all the dealers to claim to have the best rates of interest. However, discrepancies among the lenders exist, which makes it necessary to make comparisons before making the final decision on the specific lender to use.

 

It is important to point out that the auto loans that are advertized are not easily obtainable by the average kind of client. This is because; every detail must be perfect for one to meet the requirements. Some of the details considered include:
• The income to debt ratio
• Credit ratings
• Employment stability
• Residency
• Open kind of credit account
Further to this, in order to qualify for a new car loan, one has to purchase the specific model that the dealer has targeted. This is a limiting factor for most buyers who would like to have a wide choice. The reality is that it is hard to identify the best car loans by totally believing the dealer advertisements.

 

One’s credit union or bank can sometimes provide one with the best car loan quotation. Many lenders will allow you to apply for a car loan online with most of them responding in a very short time. It is important for one to make comparisons of different offers before making the ultimate decision. The internet is the best platform to get several quotations. There are several sites that can assist one in comparing rates.

 

Since not all of the lenders of new car loans are registered, one may have to visit a good number of websites and get further information on the organization and its operations. The procedure may sound tedious but it only takes a little time to view each site keenly. The best new car loan is the one that fits right in to one’s budget. 

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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. 

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Information on car loans and credit score

Posted on Nov 10, 2011 by Thalia Green
Nov 10

Those looking at acquiring a new car may probably be concerned about their credit scores. This is because; one’s credit rating is an important factor that is considered during the loan approval process. With the current economic turbulence, it is only natural for many people to lag behind in paying some of their bills. Previously, a large percentage of the lenders would only approve car loans for those with very high credit scores of six hundred points and above. However, times have changed since the lenders are also dealing with business challenges such as increased competition and the adverse effects of the economic recession.

 

The interest rates on the car loans offered in the past were quite high. In this day and age, those who have a credit score of above four hundred and eighty usually get reasonable interest rates. There are several online lenders who are ready to approve car loans very promptly as long as the applicants meet the basic requirements. It is possible for one to get more than one offer from lenders who are ready to issue out these loans. However, do not be too quick to jump in to the first boat that comes along; take time to do some research. It is also worth mentioning that loan approval for people with bad credit is also possible today. Surprisingly, the approval process for such loans is also very fast.

 

Competition in the auto industry has compelled the players and stakeholders to work together in a bid to lower the average credit score needed for approval of a bad credit low interest loan. The lenders have reduced on the credit score expectations with the aim of making car loans accessible to more people.

 

It is very simple to identify a car loan lender online. This is because there are many sites that issue this service. However, one should ensure that he or she deals with a well renown company since there are those that are out to take advantage of innocent applicants. 

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How to Lower Your Auto Loan Interest Rate

Posted on Nov 06, 2011 by Thalia Green
Nov 06

If you think your auto loan interest rate is too high, there are many options for lowering the rate. Here are some ways that you can lower the rate, whether you have already agreed to the loan terms or just received a quote.

 

If you are shopping for car loans...
If you haven't signed for a loan agreement yet, your first step is to shop around and get a number of rates. Not all lenders will offer the same rate, so it definitely makes sense to shop around. Dealers, banks, and credit unions can all offer different rates on loans. If you need help shopping for loans, you can also use an online company like Autoloan.com, which already has a network of lenders established.

 

In addition to shopping around, also consider making a very large down payment. Sometimes doing this can lower the interest rate. If you need an auto loan with bad credit, consider getting a cosigner. Having someone with good credit willing to vouch for your loan can help bring the interest rate to a more reasonable level.

 

If you have already agreed to a loan...
Even if you have already signed the papers with a lender, there are things you can do to lower the interest rate in the future. If you stay current with your payments, you can later on negotiate a lower interest rate with your lender. However, even if your lender is unwilling to lower the rate, you still have the option of shopping around and switching to a different lender. You may find that another lender is willing to offer you a lower rate in an effort to win your business.

 

A lower interest rate can save you a large amount of money. Whether you are in the process of deciding on a lender or want to lower a rate for your current loan, it is definitely possible for you to get a lower rate. 

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What to Expect When Shopping for Car Loans Online

Posted on Oct 18, 2011 by Thalia Green
Oct 18

If you have reservations about shopping online for car loans, this article is for you. Here is a brief overview of what shopping online is like, and what you can expect.

 

Is shopping online safe?
Although internet scams abound, shopping online with a reputable company is completely safe. There are certain things you should look for when examining a company's website. First, look over the grammar and spelling on the site. No legitimate company will permit bad spelling or grammar on their site. If you see a homepage with numerous spelling errors or unnecessary capitalization, it should send up a red flag. Another thing to look for is whether the website displays the Better Business Bureau emblem. Companies that are accredited with the Better Business Bureau can generally be trusted. Finally, no legitimate loan company that is trying to earn your business will ask for money up front before they provide the service for you. In most cases, the company will be compensated by the lender that they match you up with, therefore you should not have to provide any money of your own.

 

Couldn't I just go to the bank myself and get a quote?
Yes you could. However, when you're shopping for a large purchase such as a car loan, it's smart to get multiple quotes from people, to make sure you are getting the best deal possible. A difference of a couple percentage points on your interest rate could mean a savings of several hundred dollars over the course of the loan. You could go from lender to lender to get numerous quotes, but shopping online provides a faster way to get a good deal. The online company will act as a liaison between you and the lender. They will match your application up to the best options possible, which means you spend much less time shopping for a great loan.

 

What if I have questions?
While the initial process is done online, in most cases a representative from the online company will get in touch with you by phone. They will hold your hand through the process and be there to answer any questions you have. In this way, the online loan process still has a human factor.

We would encourage you to include online loan sites such as Carloan.com in your car buying plans. You might be pleasantly surprise at how competitive your loan bid from an online company will be. 

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Why Some People Get Better Car Loan Rates Than Others

Posted on Oct 12, 2011 by Thalia Green
Oct 12

"I have a car loan with 3% interest!" "That's nothing, I have a car loan with ZERO interest!" If you have ever heard others brag about their super-loan car loan interest rates, you might wonder where how they got so lucky. The truth is, the car loan interest rate by itself means nothing. Here are some reasons why some people get better car loan interest rates than others.

 

1) Better Credit
Make no mistake about it, in most cases having great credit can mean you will get a lower interest rate. Those with great credit have shown that they are worthy credit risks, and are accordingly rewarded with lower car loan rates. Those with bad credit will have higher rates in order to make the loan more profitable. The lender views bad credit as higher risk, therefore to offset the risk they will raise the interest rate. This way if the buyer defaults on the loan, the lender can still make some money.

 

2) New Cars vs. Used Cars
Another factor to consider is whether the individual is buying a new car or a used car. If they are buying a new car, there's an increased likelihood of getting an outstanding interest rate, even with so-so credit. This is because the financing for a new car can come directly from the car manufacturer, and as such they have the flexibility to offer zero interest, because they are still making a profit off of the car. Keep in mind that if you elect to go with a zero interest car loan at the dealer, it's very likely that you'll end up paying the sticker price on your new car or close to it; there is very little wiggle room on the price when you opt for a zero interest car loan.

 

3) The Source of the Loan
If you think all loans are equal, think again! Interest rates can vary greatly among lenders, so be sure to shop around to find out who can give you the best rate.

 

Bottom line, while a low interest car loan is usually a good thing, you need to look at the whole picture, such as the length of the loan, the type of car (new or used), and where that loan originated from. Knowing these factors will allow you to determine whether you truly got a good deal on your car loan.

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Interest Rates

Steps In The Car Buying Process

Posted on Oct 10, 2011 by Thalia Green
Oct 10

Buying a carThinking about buying your first car? If you're new to the car buying process you might be a bit worried about what you can expect. Here is a suggested process to follow when buying a car.

 

Step 1: Look at your budget (or, make a budget if you don't have one.)
Before you even head to the car lot, you'll need to do some homework to make sure you can afford the car payment. If you don't already have a budget, now is the time to create one. List all of your income at the top, followed by all your expenses. Everything you spend money on during the course of an average month should be included, even "fun" expenses like money for evenings out or your morning coffee. You may find it helpful to also journal all of your expenses for a month or two, if you're not really sure where your money goes.

 

Step 2: Research the car.
Once you have an idea of your budget, the next step is to research your car. Keep in mind how you will be using the car, how many people on average will be travelling with you, and what features are important to you. Remember that when you budget for your car, you'll need to not only allot money for the car loan payments, but you'll also need to budget for gas and regular maintenance, such as oil changes.

 

Step 3: Shop for the car loan.
Now that you have an idea of what kind of car you want, and what price you can afford, you should begin shopping for car loans. Most dealers have onsite financial departments, but by no means is this your only option. You may also find options for financing through your local bank or credit union. Interest rates can vary greatly among lenders, so it's worth it to shop around and get a few different options for your car loan.

 

Step 4: Visit the car lot.
You might be surprised at the amount of research that should be done before going to the car lot, but this is so that you get the best deal possible. Car salesmen are quite good at turning car buying into an emotional process. By doing your homework in advance, you'll be able to lead with your head rather than your heart.

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Is refinancing right for you?

Posted on Oct 03, 2011 by Thalia Green
Oct 03 There's a certain satisfaction that people get when they know they've gotten a great deal. If you've ever gotten a clothing item or appliance at a steep discount, you are no doubt familiar with the feeling of euphoria that follows acquiring such a purchase. However, you rarely have a second chance to get a good deal once the transaction has been made. Refinancing, however, is an exception to this rule.

 

Refinancing is a hot topic these days. Depending on the size of your car loan, even an interest rate deduction of a couple percentage points can mean a savings of a few thousand dollars! Refinancing is attractive to many, but the motivations are diverse. Here are some reasons that people consider refinancing.

 

Paying off debt faster.
With little promise of the economy getting better in the forseeable future, people are becoming more committed to reducing their debt. Getting debt under control means independence; no matter what may come, you have 100% ownership of your items that you have no debt on. This is true whether it is your television, your car, or your home! If you want to pay off debt faster, refinancing your car is one way to do that. A reduction in your interest rate can free up additional money to attack other debt and get it under control.

 

From leasing to buying.
At the end of a lease, many customers make the decision to buy. Banks or credit unions can be quite helpful in refinancing the loan, which will allow the lessor to approach the dealer as a cash buyer.

 

Buyer's remorse.
Finding out that you paid too much for a car can be a humiliating experience, but there are solutions to this problem. If you have good credit, a bank or other financial institution can be quite helpful in bringing the interest rate under control. They take over the loan, get new business, and you get a lower rate. It's a winning proposition for both buyer and lender.

 

If you are thinking about financing a new or used car, Carloans.com can help wade through the various options and give you the best offers available for your situation. A loan advisor is assigned to each customer, and they help determine which lenders would be most beneficial. Regardless of your motivations, the end result is the same. You save thousands of dollars, and have the satisfaction of knowing you made a smart decision. 

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Take It To The Bank: Setting Up A Loan With Your Local Financial Institution

Posted on Sep 30, 2011 by Thalia Green
Sep 30

Thinking about getting a loan? Setting a loan up through a bank is a great option for many. Not only do you entirely bypass the finance department at the dealer, but you can often get a better rate from a bank. This is especially true if you are thinking about buying a used car. In addition, by getting your financing through a bank, you'll be able to approach the dealer as a cash buyer, which will likely mean that you'll get a better price. Here's a little more information to help you understand what to expect with a bank loan.

 

Types of bank loans.
There are a couple of different ways that people approach getting a car loan from a bank. The first is to shop at the dealer first, and then go to the bank knowing the amount you'll need for the car you'll have in mind. This can be a bit tricky because you'll need to have the backbone to say "no" to the option to finance the car on-site, and get a number for the full amount that you'll need to cover the loan, including any taxes or fees. Another option is to request a "blank check" loan from your bank. In this type of loan, both you and the bank, agree on an acceptable range for the loan, and the terms for the loan. You can shop for a car within this price range. Once you have the full amount, you just write that amount into the blank check given to you by the bank. This option has the added advantage of having a little bit of flexibility.

 

Documents to bring with you to the bank.
Regardless of your credit standing, there are certain documents that you'll need to present before you can purchase the car. You'll need to show your driver's license, to show that you are legally able to drive the car. You'll also need to present proof of insurance. A minimum of liability coverage is required in all 50 states, and you can expect that some lenders will also require you to carry comprehensive and collision insurance to cover the vehicle while you are paying off the loan. You'll also need to show some proof of income, whether through past paystubs or other means. Finally, you'll need to show proof of a permanent residence, usually by showing business mail with your name on it.

 

Getting a loan at a bank is a fairly easy process, provided that you have done your homework. If you are not sure of what documents your bank requires, talk to them before your loan appointment so that you will be prepared. 

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Preparing to get your first car loan

Posted on Sep 27, 2011 by Thalia Green
Sep 27

first time car buyingAre you getting ready to buy your first car? If you will be needing a loan for the car, there are some things that you can do to help get ready for this big purchase. If you have no credit, taking these extra steps can help save you some money and make the process go more smoothly.

 

Get a secured credit card.
One of the biggest catch-22's that first-time buyers face is the problem of a credit history. You can't get credit without a credit history, but you don't have credit you can't begin to build a credit history. What to do? One option to begin building credit is to get a secured credit card from your bank. A secured credit card is linked to a savings account at the same bank, and the limit on the card is identical to the amount in the savings account. For example, say that you open a savings account and deposit $2000. The secured credit card linked to this account would have a spending limit of $2000. If you make regular payments on the credit card, you'll slowly but surely begin to build a credit history.

 

Save a down payment.
While you're building credit, you'll also want to be setting aside a percentage of your income for the purposes of making a down payment. How much of a down payment you want to make is up to you, but the general rule is to make the biggest one you possibly can. At a minimum, you should make a down payment of at least 20% of the price of the car. This will help ensure that you pay off the car loan faster than the rate of depreciation on the vehicle, which will mean you won't be upside-down on the loan.

 

Ask for references.
In the absence of a credit history, lenders will sometimes ask for references to get an idea of the buyer's character. In general, references from a current employer are good, but you can also include references from past lenders, or people of authority who might be able to vouch for your character. You may find that a good reference will be what you need to tip the scales in your favor.

 

Getting a car with very little or no credit history can be hard, but not always impossible. If you have patience and are willing to let your credit history and down payment savings build, you'll find that the process is a lot easier. 

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