Robert Worley asked:




Fixed rate car finance loans are like off the shelf car financing loans. They are loans whose rate, amount and repayment duration is fixed. Fixed rate auto finance loans are very suitable for people who are in dire need of these types of loans. These loans are readily available; they are also easily accessible and come with low interest rates that would definitely match the budget of an average consumer looking for a vehicle loan.

Amongst the different kinds of car finance that exists, pre-determined rate financing is the second best kind of loans that one can apply for. They come in second after low interest car financing. Most people who apply for low pre-determined rate auto financing usually find the rates suitable because most lenders that give out fixed rate finance approvals normally fix the rate at the amount that they feel is affordable to all.

A fixed rate car loan comes with, fixed interest rate, fixed down payment, and fixed surcharges. Most lenders and givers of fixed rate car loan may vary the amount that is required as interest rate and down payment. The required amount that a consumer might be required to pay might depend on certain factors such as the amount that he requesting to be financed with, his credit score and the repayment duration that he is requesting for.

Taking out a pre-determined car finance loan has certain disadvantages. Some of its disadvantages emanates from the fact that a fixed rate car financing loan has rigid terms and conditions that are too rigid to be amended to suit customers and consumer preference. Often time, customers and consumers have to readjust their budget and preference to suit that of the loans.

The advantage of taking up a pre-determined rate car financing loan outweighs it disadvantages.

Rosemary

Jason Lanier asked:




Many people that are looking to buy a car and have bad credit, really don’t know what to expect in regards to the interest rate that they will be asked to pay (or TOLD to pay by some dealers). Average car loan rates for people with good credit can be anywhere from 4% to 7% depending on the market and the source that you use for financing.

When you have bad credit, average car loan rates can vary dramatically. This is where finding a good source for your auto financing is crucial.

For example, if you use a car lot that has in house financing, you can expect to pay upwards of 20% interest and up to 28%, depending on your state of residence. Average interest rates charged by these establishments used to be unregulated and eventually state laws had to come in to keep things from getting out of hand.

In all truthfulness, there is no such thing as an average rate for a car loan when it comes to people that have bad credit. There are too many variables and too many stipulations and conditions that determine the rate. Getting the lowest rate for a car loan when you have a low credit score is determined more by the lending source that you select, over all other factors.

You can expect to pay a higher rate than someone that has excellent credit… that is to be expected. You should not however, accept any offer at a rate of over 12% unless you have thoroughly researched and explored other possibilities first. There’s nothing worse than having bad credit and having high payments… that makes getting ahead and improving your credit that much more difficult.

To obtain the lowest car loan rate on a car when you have bad credit, you should look into using reputable, legitimate sources for online car loans. Lending services vary one from another. Some are reputable and some are not. Be sure of what you’re doing before you jump in and sign a contract.

Rick

Scott Stanko asked:




When your credit score gets below a certain point you may have to turn to sub prime lenders for your auto financing needs. As you apply for these types of loans you will notice that their interest rates are considerably higher than your traditional lending sources you have used in the past. Although it may feel like it, sub prime lenders do not charge higher rates just because they think you are a bad person, or to punish you for your current financial situation. There are some very real and calculated reasons that the rates are higher on these types of loans.

1) Higher Risk Of Loss- Sub prime lenders have much larger default rates as a percentage than regular prime banks do. When a lender has high default rates they have to charge a higher rate of interest on all their loans to help off set the losses they incur on the defaults. Banks are in the business of making money and charging higher rates allows them to collect more money in interest up front and hopefully remain profitable after the losses they incur. If they were to charge low rates on all their loans and still incurred the same amount of losses they would go out of business because the losses would exceed the income that their loans generate.

2) Higher Collection Costs- When a lender has higher default rates they also incur higher collections expenses. Repossession, legal, title, and staff expenses all increase when you have large amounts of loans that default. All these expenses affect the lenders bottom line.

3) Verifications- Sub prime lenders have very strict guidelines that they have to follow. Before any sub prime lender will disperse funds on a loan they will verify all the information you provide on your application. Staff is needed to contact employers, landlords, mortgage companies, and insurance companies. This can be a long and tedious process that takes time and hourly employees.

As you can see there are some very real expenses that sub prime lenders incur as cost of doing business. The best plan is to make timely payments on this loan and as your credit score starts to rise look to refinance through a prime lender at a lower rate in the future.

Juan

Aidan Mosteller asked:




You are looking into buying a new car and you’ve saved up enough to make a down payment. But you find that you still need a loan to be able to buy that car. What’s the next step from here? Well most people will tell you to shop around for loans. This is of course the most practical thing to do as you get around to comparing prices and realize you don’t have the whole amount available to buy your car. While it seems like a simple task, the most important thing to look out for when shopping is the auto loan interest rates because they can greatly affect how much you’re actually paying for the vehicle in the long run.

How do auto loans work? To begin with, auto financing loans are like any other loan and impose certain obligations. The bank or credit union loans you the money to buy the car when you don’t have the entire amount needed to buy the car. These institutions then let you pay them back monthly until you’ve finished reimbursement. Technically speaking, they own the car even if you’re the one driving it around and parking it in the garage at home for as long as repayment of the loan in full hasn’t been completed.

Sounds pretty simple, but there’s a catch. Auto loan interest rates are part of the deal so as to assure the lender that you’ll be forced to meet deadlines and pay in the right amounts. Interest is an added expense that you pay along with your monthly repayments of principle. The terms you get are affected by your credit history and loan term. The cleaner and stronger your credit history is, the lower your interest will be.

The same goes for the loan term – the shorter the term is, the more likely that your auto loan interest rates will be lowered too. If you are on a tight budget though, this may not seem like the best option. With a longer term, if you’re offered low down payments as well as low monthly charges, do expect that your interest rates will be slightly higher.

One thing to keep in mind when looking around for the perfect loan is that no matter what your situation is, companies will try to make a profit from you. Try learning how much you qualify to borrow and never mention during any pre-qualification interview or questionnaire how much you intend to pay monthly. They can easily compute interest rates according to what gives them the most benefit while making it appear like you’re getting a bargain, which you’re not.

Avoid no-money-down or unbelievably low down payments since interest will surely make up for it. Bear in mind that auto loan interest rates can make you end up paying much more than your car’s actual worth. Having the right mindset when it comes to your budget and being realistic about your ability to repay will enable to get you the best possible deal out there.

Jeremy

luvys20 asked:


im looking to buy a car soon and i was just wondering what banks offer the best interest rates for an auto loan?? plzz. help. thanks
i also have a credit score of 690-700 im not sure but its around there.

Laurie

Barry Wilder asked:




Most lenders who specialize in RV loans base their underwriting criteria on different factors than other loans, such as home mortgages and auto financing. Home and car loans are considered to be “necessities”, while RV loans are considered to be more of a “luxury” type loan.

Even though statistics show that RV loans have a lower default and late payment percentage; these same statistics show that most people, when strapped for cash, will pay their “necessary” loan payments first. Because of these statistics, lenders will normally implement more stringent underwriting guidelines for RVs and even boats.

The number one factor that impacts RV loan approval is Credit History. Most lenders will want a credit score of at least 640, but a score of 700 or better is more likely to obtain an approval at the best rate and most favorable terms.

The second factor considered is your Debt-to-Income ratio. This is basically your monthly revolving debt, (mortgage, auto and credit card payments) divided by your monthly gross income. Most RV and marine lenders look for a maximum debt-to-income ratio of approximately 45% or less, however some will go as high as 50% or more with excellent credit.

The third factor considered is the Loan Value of the RV. Each lender has their own formula for determining the amount they will loan on any particular RV. Most lenders will loan somewhere between wholesale and retail, depending on the previous factors listed above. Some will loan up to the RV’s retail value on refinancing. Again, the better the credit history, the more flexible the lenders are likely to be.

Other factors are considered when determining interest rate, such as the age of the RV and the total amount financed. The higher the loan amount, the lower the interest rate, with common break points commonly set at amounts such as: $25,000 – $50,000 – $100,000, etc. Also, the older the unit, the higher the interest rate, but this also varies.

Many online financing sources specialize in RV loans – and it’s your right as a consumer to find what is best for you. You should however be aware that each time you submit an application, your credit history may be pulled up from 1 to 2, or even more times. Each time a company accesses your credit report, it can result in 2, 3 or even 5 points deducted from your credit score. You should always avoid lenders or brokers who “shotgun” your application to numerous lenders.

Your online rate and lender shopping can be done by going to your favorite search engine and typing in search terms such as: “RV loans”, “motor home financing”, etc. Normally, approval takes only a day or two, with loan completion and funding in about a week. Loan documents are usually sent directly to your home or work.

The best policy is to check rates with different financing sources without enabling them to pull your credit report until you are relatively sure you have found the company you would like to work with. At that time you should submit your actual application.

Happy RV’ing.

Jesse

Jane Hale asked:




There are a large amount of car purchases in Riverside, CA. It’s important to know the laws and rights that the state of California has in place to protect car buyers when they purchase and finance their vehicle. There are a few important things to know before you commit to a car purchase and auto financing.

1. Don’t Be a Victim to High Pressure Sales – The state of California has specifically advised car buyers and auto loan borrowers to make the decisions that are best for them financially and avoid making decisions based on pressure from sales people.

2. California Has No Limit On What Car Loan Interest You Might Pay – There are usury laws, which limit interest rates, but most banks and financial institutions are exempt from that law. So, it’s important to compare quotes when applying for an auto loan to make sure you are getting the most competitive interest rate you can.

Try getting financing in order before you visit a car dealership. Having financing in place before you go can help you have more negotiation power. If the dealer thinks that you are dependent on them to finance your vehicle, they know you are more likely to walk away with a higher price on the car.

3. Compare Quotes Online – Many Online Companies Service Riverside, CA – Sometimes the fastest way to get competing loan quotes is online. Within a few minutes, you can have multiple auto loan offers without any obligation or pressure from a sales person. Most online companies service the Riverside area.

Even if you have bad credit, most companies will still offer auto loans to you. It’s important, especially with bad credit to try and get multiple loan quotes in order to get the lowest interest rate possible.

Marlene

MARK WARNE asked:


Auto loans rates give the best opportunity to all people having dream of driving their own car, but due to insufficient financial back up being unable to fulfill. It will get you enough money to buy a car of your own either a new one or used one. If you are in some credit problems then also you will get the chance to avail this opportunity.

Auto loan rates are mainly of secured type of financing. It is mainly secured against the car itself you are going to buy. If you want to place any other collateral against the financing then also you are having option to put your home, jewelries or any other valuable asset against the loan. And if you do not want to put any of your property at stake then you can go for unsecured type of financing.

Other useful features

Auto loan rates will enable you to secure enough money to buy a car of your own choice. You will get an option to choose your car and all other figures related to the loan will be decided afterwards. You have to pay a down payment against the loan.

You have an option to select in between long term and short term auto financing. In case of the previous one you can pay the money back after a time period of 5 to 25 years and interest rate will be quite low in this case. But if you go for short term financing then you have a repayment term of 3 to 5 years and interest rate involved in this case will be quite high.

Nowadays with the increasing popularity among customers these loans are being more and more available in market. Loan lenders are coming online to be more accessible. Other wise if you want you can take the financing from auto dealers also.



Holly

Bhaiyanak asked:


Hi,
Personal loans and lines of credit are good deals these days as an option for financing an auto purchase. Any idea why dealers are still charge high financing rates? I know the expected answers (they are preying on the unaware, etc. – but I am just curious…

Is there a drawback to financing via a personal line of credit? I amseriouslyconsidering this option for a new vehicle purchase.
Live in Toronto, Canada.

Thanks,

Kathleen