auto loan rates

December 30, 2010

Auto Loan Application.flv

hitesh975 asked: Get Your Free E-Book If your major interest is information related to low auto loan rates or any other such as loan financing with, car financing, guaranteed auto loan or bankruptcy auto loans, this article can prove useful.


Where is the best place to refinance my auto loan?

Filed under: Economics — Tags: , , — admin @ 8:58 am
staci fluke asked:

Does anyone recommend a great place to get a great rate?
Thanks I really appreciate it!


December 25, 2010

How to Compare Car Loan Rates

Susanne Svette asked:

Although pulling a new vehicle into your driveway for the first time can be exciting, car shopping is an experience many people dread. Choosing a vehicle and negotiating the price of your new automobile can be a difficult process, not to mention, you incur new debt when you take out a car loan.

Get the best deal on your new car by understanding how car loans work, learning how to budget for a new car loan, and using a car loan calculator to determine your monthly payments.

Determine Your New Car Loan Budget

Before you begin shopping for a new car, figure out exactly how much car you can comfortably afford by creating a monthly budget. To do this, deduct all of your monthly expenses, including everything from rent and mortgage payments to spending cash, food and other necessities, from your income.

The amount remaining is the free income that you can put toward a new car loan. Be sure to choose an amount that leaves you financially comfortable. You should still have money left over to pay for emergencies and regular deposits into your savings account. A good rule of thumb is to commit no more than 20 percent of your monthly net income to a car loan.

Also, you should understand how long you can commit to the monthly payment terms. New car loans are typically repaid in increments of one to five years, while the maximum on used car loans is about three years due to depreciation. For the best deal, look for a loan with the shortest repayment period possible. It’s simple; you’ll pay less in interest.

Finally, know your credit score. Not having these three key pieces of information ready before applying for a new car loan is the biggest mistake new car buyers make when it comes to finding and choosing the best car loan rate.

New Car Loan Rates vs. Used Car Loan Rates

The next step is to determine what type of car you want to purchase: new or used. This will affect your car loan rate. Used car loan rates are typically higher (about one percent) than new car loan rates because it’s easier for a lender to recoup the losses if a new car loan goes into default. This means that over time, purchasing a less expensive used car at a higher loan rate can sometimes be comparable to buying a more expensive car at a lower rate.

The example below illustrates how you can buy more for about the same monthly payment depending on the interest rate. Since new loan interest rates are typically lower, or you may even qualify for a zero-percent deal, you could buy a more expensive vehicle and spend less over time.

New Car: $15,000 at 0% interest rate for 36 months = $15,000 ($416.66 monthly payment)

Used Car: $13,500 at 7% interest rate for 36 months = $15,006 ($416.84 monthly payment)

Regardless, it pays to shop around for the best car loan rate. Search online for local new and used car loan rates, or call your financial institution. Check the Sunday classified ads for car loan deals at your local dealerships, too. Credit unions are another good source for car loans. They typically offer lower interest rates than larger lenders, but are usually more selective when it comes to offering loans.

Bad Credit Car Loans

The best thing to do if you have poor credit is to avoid a new car loan. It can cause you more problems than it’s worth in the long run. Clean up your finances first, and then buy yourself a fabulous (but affordable) new car as a reward.

However, if you absolutely must have a new car and need a loan, get a car loan pre-approval. This means you get your loan first, and choose your car second. Of course, this limits your ability to choose your car and dealer brands because your ability to obtain a car loan depends on each dealer’s ability to find a lender. For example, your favorite Jeep dealership may not be able to find a lender for you, but the Chevy dealership across town may be able to offer you financing.

If you don’t have a car loan credit history, or your credit score is below 600, don’t waste time filling out car loan applications. It can damage your credit even more. Instead, search online for a company that will locate a high-risk lender for you.

The Car Loan Calculator

Usinga car loan calculator can help you determine if you can afford that sleek new Mercedes, or if you should opt for something less expensive. It will ask you to enter the:
Price of the car Sales tax rate Other costs (title, registration, etc.) Cash rebates, down payment, trade in value and estimated trade-in value payoff (if applicable) Car loan rate Terms

Experimenting with a car loan calculator can help you determine the true cost of a new vehicle and understand how much car you really can afford. In addition, a car loan calculator shows how much impact a lower rate, cash back rebate and terms can make when comparing car loan options.


Bad Credit Car Loans – 3 Tips on Getting a Reasonable Interest Rate

Carrie Reeder asked:

Obtaining a car loan with bad credit is achievable. The downside to purchasing a car with bad credit is that you may receive a high interest rate. On average, individuals with poor credit can expect to pay about 2 or 3 percentage points higher. Higher interest rates may increase you monthly payment by up to $150. Those who can afford to pay a higher monthly payment may be willing to purchase a car with a high rate. Nonetheless, there are ways to improve your chances of getting a reasonable interest rate.

Fix Your Credit Problems

Before approving a loan, lenders review credit reports to determine credit worthiness. Credit reports reveal a lot of information regarding your credit history. Do you pay your bills on time? Have you filed bankruptcy? How much debt do you have? Based on this information, lenders will approve or deny credit. If you have a low credit rating, try and improve your score before applying for a car loan. It takes time to improve your credit score, but it is worth the effort. Improving score involves paying bills on time, reducing credit card and consumer debt, etc. If you have recently filed bankruptcy, consider opening two or three new credit accounts to rebuild credit and establish a good payment history with creditors.

Save for a Down Payment

Having a down payment is a great way to negotiate a lower interest rate on a new car. The average down payment varies. However, a down payment of as little as $1000 can make a big difference. An interest rate reduction may save you thousands throughout the life of the loan. If you are hoping for a very low monthly payment, consider a large down payment. Not only will you get a low interest rate, but you are able to pay off the loan balance quicker.

Compare Fees and Rates

Many people receive auto financing through a dealership. However, it is smart to obtain at least three quotes. The best way to obtain multiple quotes for a car loan is to apply for a loan with an auto loan broker. Brokers are the convenient way to compare lenders. Simply complete an online information request form, and auto loan brokers will negotiate with several lenders to provide you the best financing. After you receive quotes from lenders, compare their rates, fees, and terms. Select the lender with the best financing option.


December 18, 2010

Is it realistic that I will get this auto loan?

ceazon22 asked:

i went to an Acura dealer today to look at an Eclipse i want for $4995. I have bad credit because of 2 credit cards, 1 bounced check with Wal-mart and some unjust charges(to me) from Key bank. But I have a paid off auto loan through Chase. Before i went on I talked to the dealer on the phone and he said they dealt with banks who financed good credit and bad credit applicants. I went in filled out the credit app. and he Said he’ll contact me on Monday with an answer( I guess because the banks aren’t open on the weekend?) but I’ve done the math with the price of the eclipse, my trade-in, and what I make. And I would easily be able to afford payments on a 5- year loan. The thing is I’m still in school and only work part-time and make around $9000 per month. Will they look at that as too low? And what do you think my interest rate would end up at? more than 15%? thanks for the answers
I meant I make $900 per month not $9000, sorry.
tmladenka, STFU prick, I’m halfway trough my college degree and upon graduation I’ll be making more than your sorry ass will ever dream of. And I guess I have to wait till Monday because there was only about 45 minutes until they closed. BTW I just looked up my credit score and it is 548. It’s kind of bs, because my paid off car loan is by far more in numbers than any of my debts.
and 1 more thing, read the details added people I MAKE $900 A MONTH NOT 9000! THAT’s WHAT WE CALL A TYPO ;)
also, I should’ve mentioned that after doing the math ie. trade in, interest, income, My payments would be under $100 monthly on a 5 year loan.


December 16, 2010

All You Need to Know About Car Loan Interest Rates

Kalvin Jason asked:

Gone are the days when cars were bought just for luxury. Now, it has come out of its earlier label of luxury and it has become a basic necessity. No matter whether you are professional or not, but you must have realized the necessity of a vehicle. At the same time, financial crunch, many a time, restrain people to buy it. Under such circumstance, one can always go for car loan option. Car loans are available for all kinds of vehicles; be it new or used. One can avail these loans either in a secured form or in an unsecured form. However, various factors are there and on the basis of these factors, the interest rate of these options varies. These are as follows:

o It is seen that the interest rate of a secured car loan becomes cheaper than the unsecured one. Obviously, the reason is easily understandable. With a secured loan option, the security of the borrowers covers the risk of the loan. And therefore, the possibility of a lower interest rate is brighter.

o The interest rate of a used car loan is higher than the interest rate of a new car loan.

o With a good credit score, a borrower can always make the interest rate of a car loan pocket-soothing by negotiating. Similarly, if you have poor credit problems like CCJ, IVA, arrears, default and bankruptcy, then the interest rate of your car loan may be higher.

o Above all, some tricks are there, which will always help you to make the interest rate of your auto loan cheaper. Collect various loan quotes offered by different lenders and then compare them. Obviously, you will get a better deal on any kind of auto loan.

So, now you can easily buy a car of your choice by availing a car loan. And as far as the Interest rate is concerned, the aforesaid information will definitely help you a lot.


December 13, 2010

Used Car Loan Rates Affect Car Value

Louis Rix asked:

Buying a used car can be an intense process. One way consumers can reduce the stress and make the process enjoyable, is to have financing planned before looking for a car. Used car loan rates are very low in today’s competitive, low interest rate market. Used motor loans are often a little more challenging to get good deals with than new cars. This is because the lender may have trouble finding information on the vehicle’s history. However, in the competitive internet environment, which has become driven by loan brokers and specialists, rates are as competitive as ever.

Historically, car buyers have often depended on dealer financing plans. Buyers would go to a car dealership, look for a car, and once selecting a car, be hit with aggressive loan selling tactics. Dealers like to sell loans to consumer for two reasons. First, their financing rates are usually higher than the loan market meaning their income is greater. Second, they can more easily influence the buyer to make an immediate purchase rather than risk them changing their mind. These factors have led to many dealers pressuring buyers to take on dealer financing in order to drive away with their used car.

A major factor that has contributed to many consumers being stuck with expensive dealer financing is a lack of consumer education. Many buyers simply have been unaware of the loan options available to them. The lending market is usually much larger than most consumers are aware. Thanks to the internet, more consumer education and resources are available now than ever. Borrowers can learn more about the car buying process and loan options before going into buy a car. This preparation helps consumers’ better handle dealers when they begin talking about financing.

Loan specialists have given much greater access to cheap used car loan rates. They are independent brokers who maintain a large collection of provider relationships. This enables them to offer consumers access to the best products and loan providers in the market. Because of the power these independent brokers have developed, most brokers offer their best used car loan rates through them. Consumers can go to a specialist web site, enter some basic information, and quickly become aware of the best loan products and best rates available. Brokers are also generally extremely customer-oriented and anxious to get buyers ready for the car buying experience.

Used car loan rates greatly affect the total cost of buying a used car. Finance costs are a big part of the total cost of buying a car. Research has recently demonstrated that dealer financing options tend to cost 1,000-1,500 pounds more than lender loans. This has created greater interest from consumers to explore their financing before going to the dealer. Consumers are more empowered now and can focus on finding the best car deal. There is less obligations to negotiate car and finance purchases together. Ultimately, this separation gives buyers the best total car value because they can negotiate car deals and financing deals with focus on each independently.


December 11, 2010

How to get auto loan with bad credit?

Eleni Longe asked:

I’ve been quoted 18.99% on with a 630 credit rating. Is this something I should expect and suck it up and deal with it?

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