auto loan rates

May 30, 2010

Be on Your Guard When Researching Refinancing Rates For Auto Loans

Peter Kirkham asked:

Many people will choose to refinance their auto loan within a very short time of acquiring their original auto loan.

This is often due to the high interest rates that new buyers or those with less than perfect credit will pay, in order to acquire a decent car.

This is usually a great way to re-establish a credit rating following a year or so of good payment history, thus affording you a better interest rate and far less tedious terms when you go for the refinance option.

In order to be prepared for a refinance auto loan, there are a few things that you might want to have at the ready.

Keep in mind that most vehicles lose a great percentage of their original value the moment they are driven off the lot, so you will definitely need to procure an auto appraisal and compare it to the amount of money that you still owe on your vehicle.

This will usually begin to match up by the second or third year of ownership, as long as you are careful to keep your mileage as low as possible and all maintenance up to date during this time.

Keep records of all the scheduled and unscheduled work that is performed on the vehicle.

Once the value of your vehicle matches up to or exceeds the amount that you currently owe, you will be ready to prepare the rest of your documentation and proceed with finding the lender that will serve you best.

It is also important to note that you will most likely not find a lender who will offer you cash options over and above the remaining balance on your vehicle. This is very common practice, so if you need extra funds, additional financing options will need to be put into place.

Online tools such as refinancing calculators and lender listing services can be the most welcome and convenient methods available to the public when searching for the best refinance auto loan rates.

Because lenders and banks know that their fellow lenders are just a click away these days, there is enough healthy competition to keep you vying for a great interest rate and an ideal set of closing terms.

Other than this, there are timing issues that need to be addressed on your end, as the first three years of a standard auto loan are spent paying primarily interest. In order to avoid doing this twice, try to refinance as soon as possible.

Make sure that you’re fully aware of all out of pocket expenses as well as an closing costs that may apply.

You can avoid most of these fees by choosing your lender carefully and examining everything that you are expected to agree to thoroughly.

Fine print and a lack of understanding on your part can lead to a deal gone wrong, so be your own best advocate when sourcing refinance auto loan rates.


May 29, 2010

Best Car Loan Rate – Finding Cheap Rates Online

Carrie Reeder asked:

There are many ways to find the lowest car rate online. Today, many
lenders offer car loans for all credit types. Because of this, many smart
buyers are shopping around for the lowest rate before accepting an auto
loan offer. Having good credit makes it a little easier to secure low
rate financing. On the other hand, if you have a low credit score, it
may take a bit more effort on your part to find the cheapest rate.

What Contributes to a Low Rate Auto Loan?

Aside from comparing quotes from various lenders, other factors make
obtaining a low rate possible. For starters, individuals with a strong
credit history are more likely to receive offers with low rates. Never
underestimate the importance of establishing and maintaining a good
payment history with creditors. By following a few simple rules, you can
easily boost your three digit credit score.

If you are determined to get a low rate auto loan, make sure that all
creditors receive payments on time. Skipped or missed payments will
decrease your credit score by a few points. If this becomes a habitual
problem, your credit score will suffer.

Moreover, avoid applying for many lines of credits within a short
period of time. Credit inquiries are equally damaging. Lastly, reduce debts.
Having too much debt can actually decrease your credit score.
Additionally, it counts against your debt-to-income ratio, which may make it
difficult to qualify for a more expensive vehicle.

Use an Online Auto Loan Broker

To find the cheapest auto loan rate, you must be willing to search for
them. Several lenders advertise low rate auto loans. These loans are
generally reserved for individuals with superb credit ratings. However,
it is possible to get a good rate with perfect, fair, even bad credit.

Auto loan brokers provide a valuable service. If you are having trouble
finding a good lender, think about using a broker. Brokers have
dealings with many lenders and are familiar with various loans. Additionally,
brokers provide a unique service by matching you with up to four
different lenders. This is great for comparing and contrasting different


May 28, 2010

Question about my finances. Using overage check to pay off auto loan a good idea?

Sicks asked:

I have just started college. I am really enjoying it. Especially after being out of high school for 4 years. Anyhow, I am back into it and I have qualified for financial aid. It is an unsubsidized loan, with a total of a little over 6k. It is my first loan, and I intend to pay every bit of it.

My employer reimburses up to $5,200 a year, which is more than enough to pay for a year’s tuition at my college branch. If my calculations are correct, I should receive an overage check of about 4k, which is the same amount I have left on my auto loan.

I am being nailed on interest for the auto loan, which is 14.2 percent — I had no credit, no co-signer — so I had to bite the bullet of an extraordinary rate. So, I figure I will take the full amount of my award this once and pay off my auto loan. It will give me peace of mind because if I lose my job, I lose my car. But if I pay off the car, I can lose my job, but still keep going to school, for I do not have to pay back my loans until after I graduate. That way I can pay about $100 a month toward the overage check, paying it off well before I graduate.

So, for the people that have had much experience with their finances, been through many hardships, tell me, is this a good idea? Am I thinking on the right track for a young age — 23?

Also, the last time I asked this question, the answers were all from spammers promoting their websites. Please, refrain from that.


May 27, 2010

Auto Refinance Rates – Well Worth Researching

Peter Kirkham asked:

There are many tools and resources available to you should you be looking for auto refinance rates or a loan that will help you to either reduce your monthly payments, reduce your current interest rate, or both.

Access to the Internet is all that you need to get a great head start and begin to alleviate some of the financial burden that your car may cause. Before you move forward with the actual process of applying for an auto refinance loan or closing the deal, a few common tasks would be best served by you.

First, you will want to have an official appraisal done to the car that you wish to refinance.

This will establish a value for you vehicle that will be used to determine whether or not the lenders will be willing help you with auto refinance rates that beat the one that you currently pay.

If you owe more on your vehicle than the current appraisal value, you will most likely not receive an auto refinance option from any lender. In order to ensure that you may qualify for one in the future, you might attempt to keep the mileage low and to service it regularly through a certified dealership or mechanic.

There is a good chance that your original auto financier will not offer you a refinance option.

Be sure to use as many tools as you can to find the company who will help you to reduce your monthly payments, as well as the overall amount of interest you wind up paying at the full term of your auto loan.

There are interest rate calculators which will help you to determine the types of loans and financing options that will best suit your needs. You can find this and countless other helpful tools online, and can utilize them for free in your own time.

There are also options available for those who may have some sketchy credit ratings or black marks.

Most lenders will require that you have maintained a steady wage and a decent payment record for about 6 months in order to qualify for lower auto refinance rates.

This, again, will vary greatly from one lender to the next, but you will do well to keep your head above water until you have secured a decent auto refinance rate from a trusted lender.

Be sure that the names that are currently on the title of your vehicle are accurate and that, should there be another party on the title, all original signers are present for the refinance.

You may not be able to find an auto refinance option if you owe less than a predetermined amount of money on your current car loan, and this will also vary from one lender to the next.

Be sure that you ask as many questions as you can of each prospective lender that you choose to deal with, as you might be able to create yourself a very nice deal in the end by taking your time and being thorough.


May 23, 2010

After how long I can refinance my auto loan ?

Filed under: Credit — Tags: , , , — admin @ 8:55 pm
Jordan asked:

right now because of my bad credit I got a 21% after how many payments on time can I refinance to a lower rate ?


May 20, 2010

Just got approved for Capital One Blank check auto loan?

Filed under: Credit — Tags: , , , , , , — admin @ 2:58 am
Tim6298 asked:

havent actually gotten the check and used it yet. My question is how long can I shop for a better rate before my credit gets dinged more than once? I assume that even if I am approved from Capital One but havent used the loan yet that my credit only shows an inquiry? Is that correct? Does Capital One usually have better rates than what dealers might offer?
I didnt get an “ad” from capital one in mail or anything like that this is an actual loan I applied for online


May 19, 2010

Best Car Loan Rates – Prime Lenders vs. Sub Prime Auto Lenders

Carrie Reeder asked:

The best car loan rates are out there if you search for them. Based on
your credit past, you may find either a prime or sub prime auto lender
is your best choice. The surest way to find the answer is to request
free online loan quotes to narrow your choices.

The Differences Between Prime and Sub Prime Lenders

Prime and sub prime lenders differ in the types of loans they offer.
Prime lenders offer A loans to those with credit scores of 650 or higher.
Sub prime lenders provide loans to everyone else. Sometimes though,
financing companies offer both types of financing.

Sub prime loans have higher rates and fees since the risk is higher for
lenders. Reasonable lenders will only charge a couple of points higher
for most types of loans.

Who Has The Best Rates?

The only way to find who has the best rates is to do your own
comparison shopping. Depending on your credit score, you may be surprised who
can offer you the most competitive package.

As important as low rates are, fees should also be considered.
Fortunately the government made comparison shopping easy by requiring lenders
to disclose the APR of any loan. The APR includes both closing costs and

Find The Right Lender

You should start your car loan shopping online, not at the dealership.
There are too many incentives for the salespeople for you to be sure
you are getting the best deal.

Start with a car loan broker site that brings many lenders together.
You can quickly access free quotes from there. Then follow up with other

And don’t give permission for a lender to access your credit report
unless you are pretty sure you want to go with their offer. Otherwise, you
will find that multiple credit inquires will lower your score and hurt
your loan application.

While there are no instant solutions to finding the best auto loan
rates, online sites do make it faster. A couple of hours spent securing
your vehicle financing will both save you money and make the car buying
process easier.


May 16, 2010

how do I get an auto loan?

Filed under: Buying & Selling — Tags: , , , , , , , — admin @ 11:35 am
scribbler444 asked:

ok so I want to buy a car off my friends dad. The car is 11 grand and since not buying from dealor would have to go through a bank. I dont have credit so I know I need a cosigner, I need help can you guys tell me the process I need to go through and is it cheaper this way like how much would monthly payments be with 2 grand down. How much are interest rates usually and how would I go about getting this loan
ok thank you its just I work off the books at a restaurant I make great money but yeah off the books
yea I dunno I feel weird asking if I can just make payments to him. Is there anyway possibly I can have my boss do something to show income or something along those lines?

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