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Why Would I Want A Cosigner for a Car Loan?

Posted on Oct 04, 2011 by Thalia Green
Oct 04

Are you unfamiliar with the concept of a cosigner? A cosigner is someone who agrees to sign off on a car loan with you. In addition to your credit history, the lender will also take into consideration the credit history of the cosigner. If the cosigner's credit history is good, it can act as a trump card on the loan application, moving it to the top of the stack. Obviously if you have someone who is willing to cosign for you, it would be a favorable option. Here are some situations in which having a cosigner is a good option.

 

Bad Credit
Bad credit can happen for all kinds of reasons. Some are as a direct result of your actions, others are outside of your power. For example, identity theft can wreak havoc on your credit report, and can sometimes take weeks or months to undo the damage. In the mean time, you might need an auto loan so you have a means of transportation. But acquiring one with a cosigner could be a great option. If you are otherwise responsible, a cosigner might be willing to take on partial responsibility for your car loan. In time, as you get your credit cleaned up, you might be able to take on the loan exclusively. The cosigner can be a temporary solution to identity theft.

 

No Credit
College students who are just starting out have no credit history to speak of. They will almost certainly need the help of a cosigner. In this scenario, it's usually a parent who acts a cosigner, while the student makes regular payments on the loan. Over time, the student will build their own credit history, and after a period they might be ready to take on full responsibility of the loan.

 

Regardless of the reason for the loan, open lines of communication are crucial. Trust between the cosigner and the buyer must be maintained. If you are taking the initiative to seek out help from a cosigner, you should offer also to give the cosigner access to view your bank statements and other financial records. An agreement should also be made as to the consequences of defaulting on the loan. Payments for the loan should be made a top priority, one of the first things that you should pay when your paycheck comes in. Your goal should be to eventually take over complete responsibility for the loan.

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Bad Credit Car Loans

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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General Car Loans Tips

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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General Car Loans Tips

Special Consideration Car Loans If You're In The Military

Posted on Sep 27, 2011 by Thalia Green
Sep 27

military car loansAre you serving in the armed forces? Or are you veteran? Few people sacrifice more for their country than those who agree to serve in the armed forces. If you are a current or past member of the military, we want to thank you for your service and help you with some tips on how to get the best deal on your next military car loan.

 

1) Beware of dealers located near military bases.
Although there are many dealers who operate their business honestly, there are also a number who attempt to scam those who buy cars from them. The number of shady dealers is proportionately higher among those who do business close to a military base. These tend to attempt to take advantage of young soldiers looking to buy their first car, and often fly oversized flags and have big signs that say "WELCOME MILITARY". Although the appearance outside is inviting, inside you might feel like you've stepped into a hornet's nest. Unscrupulous lenders will set up what seems like a good deal for a buyer, and then call a few days later and say that the terms have changed for some reason that is "beyond their control". Of course the dealer will give the buyer the option to back out of the deal, but they will find that the car they brought for a trade in has already been sold, making them feel compelled to take the new, less favorable terms of the loan. If you're in the military, it might benefit you to drive a little further off base to do your auto shopping.

 

2) Consider buying through a federal credit union.
Navy Federal Credit Union is the largest credit union in the world and welcomes people from all four branches of the military, as well as the Department of Defense. They are famous for having highly competitive car loan rates. If you aren't a member already, consider opening an account with Navy Federal Credit Union to take advantage of these great rates.

 

3) Do some research on special discounts.
Depending on the car you buy, the manufacturer may often have special discounts available to members of the military. These can be doubled up with current incentives, giving you an even greater discount.

 

If you are thinking about buying a car, get some advice from people who have been on base for a longer period of time. They may be able to give you a name of an honest, military-friendly dealer. 

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Car Loans Online | General Car Loans Tips | Used Car Loans

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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General Car Loans Tips

Why Shop For Car Loans Online?

Posted on Sep 26, 2011 by Thalia Green
Sep 26

For some, shopping for larger purchases online is outside of their comfort zone. They might be afraid of getting scammed, or don't like the idea of not being able to see who they are doing business with face to face. If you think that you might fall into this category, rest assured that shopping online with a reputable country is nothing to be afraid of. Here are some advantages to shopping online that you might not have considered.

 

Faster turnaround time.
While applying for car loans in person might take awhile to complete, shopping online for a car loan could take as little as 24 to 48 hours! This is because the process is expedited by your loan adviser, who works to get you back on the road as fast as possible.

 

More options.
One of the biggest reasons to shop for a car loan online is because you can take advantage of a network of lenders. Just as other industries compete for the business of customers, by working with an online company you'll have lenders competing to do business with you. The customer simply submits their application to the online company, and the loan adviser will match the application up with two or three of the best options available for that application.

 

Only speak with the best options.
Some people have a fear of working with an online company because they believe they will be bombarded with solicitations from lenders. Rest assured that no reputable company will let this happen. Most will only share your information with the best matches, for the purpose of getting you the car loan you need.

 

How can you tell if a company is reputable? One of the best ways is to check for their standing with the Better Business Bureau. Companies that have many unresolved complaints will not have a good rating with the BBB. Another way is whether or not they charge money for using their services. Normally, the lenders will pay the online company for the privilege of new leads; the customer does not pay to have the loan adviser match them up with a lender. If the company you are working with asks you for money, run fast in the other direction!

 

Hopefully this information will help you gain some confidence in using an online company for your next car loan. Hundreds of thousands of people have used online companies for their loan with great success, and we're certain you'll have a similar experience.

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Car Loans Online

Beyond the Dealer: Options for Where to Buy Your Next Car

Posted on Sep 26, 2011 by Thalia Green
Sep 26

If you asked a group of people where they bought their last car, most likely virtually all of them would say at a new car or used car dealer. There are many good, honest dealers out there, but there are also some that do business dishonestly. If you were burned on your last experience with a car dealer, here are some options for alternatives on where to buy a car.

 

Private Sellers
One of the most common ways to get a used car outside of a dealer is to purchase it through a private seller. Private sellers list their vehicles through newspaper classifieds, but also through websites such as Craigslist. If you choose to go through this option, make sure that the seller is willing to let you get the vehicle checked out by a mechanic of your choice. This is especially important as the mechanic will be able to alert you to any possible issues you might face in the near future. It's also a good idea to run the VIN # through Carfax.com, to get a history on the vehicle and see if it has been in any bad accidents.

 

Auction Websites
Another source for private sellers is through online auction websites. You might have used such sites in the past to purchase housewares and kids' clothing, but were you aware that you can also purchase cars on internet auction sites? This can broaden you options beyond what is available in your immediate city. Should you decide to purchase the car at a remote location, make sure that you still have it checked out by a mechanic who is local to the seller before finalizing the sale.

 

What about Financing?
One of the reasons people opt to purchase a car through the dealer is that they need financing. But are there options for financing if you purchase through a private seller or online auction? The answer is YES! Banks and credit unions can help you get the car that you want, even if its through a private seller. You would go to the lender and explain to them the type of car you are looking for. Assuming that the bank approves your car loan, they will give you a cashier's check for the full amount of the vehicle. You would then use this check to pay off the seller, and you would make payments on the loan to the bank. Visit with your local bank or financial institution to find out what your options are when dealing with a private seller.

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General Car Loans Tips | Uncategorized

Special Car Loans for Students

Posted on Sep 23, 2011 by Thalia Green
Sep 23

Whether you are an undergrad, recent grad, or working on a master's or doctorate, car dealers love students and have special deals to help make it easier to get into your first car! However, there are special considerations when buying a car for a student. Here are some things to mull over when you are considering buying a car as a student, or for a student.

 

Other car-related expenses.
Money is a commodity that is in short supply while you are a student. If you are thinking about buying a car, there are additional expenses to consider. The price of the new insurance must be considered, as well as any maintenance costs. Domestic cars are a good choice for these reasons, as the maintenance costs on a domestic car tend to be relatively low. The cost of gas will also need to be factored into your budget.

 

Driving style.
Very often, driving through college towns means navigating narrow streets and lots of parallel parking. You'll want a car that has good rear visibility. It should also be easy to turn down smaller roads. With this in mind minivans and SUV's are usually not good choices for cars while on campus. You're better off going with a smaller car, such as Chevy Cobalt.

 

New car specials.
To help move their new car inventory, some manufacturers offer specials for students. Credit isn't considered as much as the student's current transcripts, to show that they are a student in good standing. The types of specials offered vary throughout the year, but often include very low or no APR financing, as well as Bonus Cash offers to be put toward the purchase of a vehicle. If you choose to purchase a new car, it could also have the added benefit of helping you to establish credit. As you make regular, on-time payments to your car loan, you'll begin to build a credit history.

 

While some students do just fine without purchasing a car while in college, others may find that it is a necessity. If you fall into the latter category, be sure to consider how much driving and the type of driving you'll be doing in your new car. Think about how many miles you'll be logging each week, as well as how often you'll be driving home, and if anyone else will be relying on you for transportation, such as younger brothers and sisters. You want to make sure that you choose a car that matches your budget, as well as your lifestyle.

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Car Loans Online | General Car Loans Tips

Finding Out The Invoice Price On a Car

Posted on Sep 23, 2011 by Thalia Green
Sep 23

used car pricingRich or poor, everyone loves a good deal. This is especially true on big-ticket purchases such as cars. However, determining what a good price on a car is can feel like trying to hit a moving target. Many cars have a variety of options available, which will greatly impact the price of the car. While the dealer is likely to laugh at you if you ask him to tell you what he paid for the car, there are ways that you can get a fairly good idea as to what the invoice price on the car is.

 

Get Specific.
If you want to figure out the approximate invoice on the car, you need to know more than the make and model. For example, let's say that you are considering purchasing a Ford Mustang. Do you want a hard-top, or a convertible? If it's a hard top, do you want a moon roof? Are the seats cloth or leather? What color is the car? What kind of stereo system does it have? What type of engine does it have? Get as specific as possible. If the car you are considering is on a dealer's lot, you may want to pay the dealer a visit after hours and take some notes on the car's fact sheet.

 

Do The Research.
Once you have pin-pointed the car that you want, use the internet to help you do your research. Websites such as Edmunds and Kelley Blue Book allow you to enter the various options on a particular make and model. The more detailed you can get in the trim options on the car, the more likely it'll be that you'll get an accurate estimate of invoice price. You'll want to go through this process with a couple of different sites, to ensure that you are getting accurate information.

 

Add-ons?
So you've picked out your car. Is it perfect as-is, or do you want to customize it? Adding options on will obviously increase the price of the car. Again, it helps to be specific. For this part of the process you may need to meet with the dealer to find out what options are available, and how much extra they would be.

 

Although it can take awhile to do the homework involved, it is well worth the effort to get an estimated invoice price on the vehicle. Knowing this one number will put you in a better position to know if you are getting a good deal.

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General Car Loans Tips | Used Car Loans

Hard Truths for Buyers with Less Than Perfect Credit

Posted on Sep 23, 2011 by Thalia Green
Sep 23

Bad credit car loansIf your credit score has taken a dive recently, you'll no doubt feel the impact when you attempt to apply for car loans. Its understandable that the car loan might be necessary to procure a means of transportation, but there are some things you'll need to be aware of if you decide to go this route.

 

1) The interest rate on your car loan will be higher than usual.
If you have bad credit, the interest rate on your car loan could be anywhere from a few points to several points higher than the normal rates. Good interest rates are a means to reward customers who have done a good job maintaining their credit history. If you don't have a history that shows that you would be responsible for the loan, lenders could charge a higher rate to offset the risk of offering you the loan.

 

2) You'll need to make a sizable down payment.
Depending on the state of your credit score, you could be expected to make a down payment of 20% or more of the price. The reason for this comes back to the risk that the lender takes as accepting you as a customer. Should you default on the loan for some reason, they already have amount that you have given as a down payment, which will help lessen the possible loss on the loan. Being willing to make a larger down payment will also send a message to the lender that you quite serious about paying on the car loan, as you would obviously stand to lose that money if you default.

 

3) Your options may be limited.
Even with being willing to pay a higher interest rate and make a larger down payment, you may find that not all lenders are receptive to doing business with customers who have bad credit. If you need help finding a lender for a car loan with bad credit, websites such as carloans.com can be a great help. This type of company already has a network of lenders in place, including several that specialize in customers with bad credit or no credit. By using the network of carloans.com, you can save yourself lots of time in the process of completing the loan application.

 

The purpose of this article is not to discourage you from getting a car loan if you have bad credit, but to give you a realistic expectation of what the loan experience will be like if you need a car loan with bad credit. This can help you be mentally prepared for the process of getting a car loan with bad credit.

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Bad Credit Car Loans

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