auto loan rates

November 7, 2010

RBI hikes rates up by 25 bps; home, auto loan rates may go up

Filed under: News — Tags: , , , , , , , , , — @ 9:29 am
istreamtamil asked:


The Reserve Bank of India has raised the benchmark short-term interest rates – repo and reverse repo – by 25 basis points. www.istream.in

Jonathan

September 22, 2010

Auto Loan Rates For People With Bad Credit – How to Negotiate a Better APR

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 1:06 am
Jason Lanier asked:




Once if you come to the realization that car dealers can add interest points to your auto loan rate, buying a car to car dealership can seem like wading into very murky waters. You know that the water is dark, but you’re just not really sure what it is that’s underneath the water. With a veil of secrecy being so closely guarded in car dealerships, it can be very difficult to ascertain exactly how to negotiate the best interest rate for an auto loan. If you have bad credit, this can be even more difficult. Let’s take a look at a simple way that you can negotiate not only the price of the car, but you’re auto loan rate as well.

Car salesmen are the driving force of a car dealership. When they are hungry, more cars are sold. Playing on the anxiousness of a car salesman to make a deal, is the most effective way to get a better price and a lower interest rate. By far, the most effective way to get a lower interest rate as well as, a lower price on a car is to back out of the deal once you get into the finance office.

You see, once you have agreed to payments and have moved into the finance office to finalize your contract, the salesman starts to relax. Is actually smiling inside as he figures what he is made for commission for the sale of the vehicle. The finance manager is relaxed and working hard to build as much profit into that sale as he possibly can. By backing out at the last minute, the salesman and the finance manager will work harder to preserve the deal that they think is already done, then they will to make one in the first place. This simple little tactic of backing out and saying that you’re having second thoughts about spending that much money, can save you a couple thousand dollars on both the price of the car and your APR.

Grace

September 12, 2010

Bad Credit Auto Loan Rates – How Can You Get the Best Deal at a Car Dealership?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 4:15 am
Jason Lanier asked:




Many people are under the presumption that the real way the car dealership makes money on a car is merely on the sale price. This is simply not the case and this article will explain to you the details of how profit is made of car dealerships with a focus on auto loan rates.

The dealership has many different avenues of profit that can be drawn from during the course of a car sale. The sale price and the profit made on that sale price is only a small percentage. With new car invoices being readily available on the Internet, car dealers have had to rely on secondary sources of profit to be able to stay in business. The secondary sources of profit are commonly called back end profit or “back end revenue”.

Back end profit is the money that the dealership makes on the finance products that are sold in the finance department. These include the sale of extended warranties, credit life insurance, gap insurance, and the inflation of the customers interest rate as is allowed by the finance company.

When you get approved for auto loan at a dealership, the interest rate that you are told that you’ll have to pay is commonly more than you are actually approved for. The dealer is authorized to add interest points, or what is referred to as dealer add-on rate, to your car loan. What this translates into for you is that if you get approved at an interest rate of say, 10% then the dealership can add two, three, or up to five percentage points to your auto loan rate. The difference between what you are actually approved at and what you actually pay equates to a commission check for the dealer.

Anna

September 6, 2010

Auto Loan Rates – Using Online Lenders to Get the Best Quotes Outside of Dealer Financing

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 4:15 am
Jason Lanier asked:




If you don’t know what you’re doing, you can get smoked at a car dealership. Most people don’t understand the process that a dealership goes through when comparing quotes and approvals for your auto loan. Understanding this and knowing how you can use the same process to your advantage with an online auto loan, can save you thousands of dollars in excess finance charges and fees.

This is how it works…

When you go into a dealership to get approved for a car loan, the dealer submits your credit application, along with information about the vehicle that you’re purchasing, to several lenders. Each lender responds with an answer that either approves your loan or not, with varying stipulations (if you have bad credit). The dealer then searches through the responses and picks the approval that will make the dealer the MOST money.

How do dealers make money on my loan or auto loan rates?

Believe it or not, a dealership gets incentives for sending your loan through some companies. Finance companies will even pay cash money to finance managers that steer business their way. For example, one company when I was a finance manager, would give me a $500.00 Wal-Mart gift card if I sent them 20 customers a month. Not a bad deal, huh? So do you think that when I could give a customer a better rate with another company, or send them to the more expensive company that was padding my wallet, who do you think the deal went to? You guessed it and that’s one of the reasons that I left the car business.

Also, dealers make money by inflating your interest rate. If you get approved at let’s say, 12%, the dealer can add 3 percentage points to your loan. Some finance companies allow the dealer to add as much as 6 percentage points. So if you walk out paying 15% interest, when you could have paid 12%, think of how much money you would save if you were able to cut the middle man out of your auto loan rate.

The only way around it is to REVERSE the system an put it to work for you.

You can submit your information to lending services online that will cut out the middle man. Buy initiating the financing end of your car purchase online, you can get better auto loan rates, and save money on excess finance charges that you didn’t have to pay to begin with. It’s only dealer profit that stands in the way of you getting better rates and a better approval that is more affordable. When there is no one that has a commission check at stake, it’s amazing at how much better of a deal you can get.

Carmen

August 23, 2010

Subprime Auto Loans – How To Get Financed With Bad Credit

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 2:44 am
Carrie Reeder asked:




Finding a bad credit auto lender is simple. When buying a new or used car, the auto dealer may offer bad credit financing, or refer you to a good lender. Even so, car buyers should consider arranging their own financing. Bad credit auto loans are tricky, and some lenders will take advantage of you. For this matter, it helps to choose a good lender and know your available options.

Check Your Personal Credit Report

Before applying for an auto loan, bad credit applicants should request a copy of their personal credit report. Review the report, and take note of your FICO score. Upon submitting your application, the auto lender will base approval on your credit score and credit history. Additionally, checking your report prior to applying reveals your credit standing. Some auto lenders classify sub prime borrowers as persons with scores below 640. On the other hand, another lender may qualify a borrower with the same score for prime rates.

Compare Different Auto Loan Rates

Making comparisons is a surefire way to get approved and find the best auto loan rate. Auto lenders qualify applicants for varying rates. If you have bad credit, failing to shop around and obtain multiple rates will cost you more money. For example, a dealer’s finance company may charge an interest rate of 10%, whereas a credit union may charge the same applicant 8.5%. The percentage difference could save you $50 – $70 a month.

The best way to compare rates is to visit an online auto loan broker site. Request a no-obligation quote, and wait for a response. Each quote received will include details such as qualifying interest rate, loan approval amount, loan term, and estimated monthly payment. Review the quotes carefully, and pick the lender that offers an affordable deal.

Make Efforts to Boost Low Credit Score

Improving your credit score doesn’t happen overnight. However, if an auto lender recognizes improved credit habits, they are more inclined to approve a bad credit loan application. Before applying for a car loan, practice submitting regular payments to creditors. Furthermore, attempt to reduce your overall debt ratio.

Gabriel

August 20, 2010

Best Auto Loan Rates

Filed under: Finance — Tags: , , , , , , , , , , — @ 9:25 pm
Benjamin Robert Ehinger asked:




Are you thinking about buying a new or used automobile? Do you want to make sure you get the best auto loan rates you possibly can for your purchase? There are some tricks to getting a good rate on your auto loan. You need to arm yourself with these tips so that you can get the best possible deal and rate on your car or truck.

First, you need to understand that if you are purchasing a used vehicle, you can check with your bank to see if they will give you a better rate than the financial institution that the dealership uses. Plus if they give you a better rate you can take it back to the dealership and see if they will make a counter offer. This is a great way to get a lower rate.

Second, shop dealerships and find a couple of vehicles you like that are in the same class. This would be if you are looking for a coupe go to a Chevrolet, Ford, Toyota, and a few other dealerships and find a couple at each that is in the same price range and work out a deal. Then, you can use the best deal as leverage with the vehicle that you really want.

Third, you should try to avoid any auto loan that is over 7% on used and over 3% on new right now. There are plenty of places that will finance you at 0% or very close to 0% on a new vehicle and at 5% to 7% on a used vehicle. There is no need to pay more and you should refuse to pay more than this or you are not getting the best auto loan rates.

Dale

August 7, 2010

Low Interest Auto Loans – Tips To Get Lowest Auto Loan Interest Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 1:46 am
Ancellin Marshall asked:




Unless you’re paying cash, it is no wonder that you are searching for low interest auto loans. Getting the best auto loan rates just makes good financial sense.

However it takes a little work to find the lowest interest, simple work that most people are unwilling to do. Here are some tips to get the lowest auto loan interest rates.

1. Low Online Auto Loan Quotes

There are many banks and auto loan companies online that offer competing auto loan quotes. Because of this almost global competition online lenders are more likely to offer you the lowest interest auto loan quote in order to get your business.

Safe, secure and fast you can apply for a auto loan and get approval in minutes. Then you can compare and choose the one with the lowest interest rate. This allow you to shop for a car like a cash buyer, saving you even more.

2. Get Your Credit In Order

Your credit history will ultimately determine how low the interest rate will be on your auto loan. You should know where you stand, credit wise, before you apply for a loan not after. Get your credit report, it’s easy, and by law you are entitled to one free credit report a year or every 12 months, get it. The three main credit reporting agencies are Equifax, Experian, and TransUnion.

3. Know Your FICO Score

This plays a big part in whether you will be approved and the interest rate of your auto loan. Your FICO scores are the credit calculations or scores many lenders use to determine your credit worthiness.

The FICO credit score range is widely accepted to be between 300 and 850, the higher the better. Raising low FICO scores not only can help you get the lowest interest auto loan but will also save you thousands on the total cost of the car.

4. Dealing With Bad Credit

It is not impossible to get a low interest auto loan with bad credit. In a perfect world you will have your bad credit erased, but as you know this can take time. Time which you may not have before you need a car.

In the case of a bad credit history a low interest car loan does not mean best low interest rate available, but lowest interest auto loan for people with bad credit.

You definitely want to have options in this case. Taking the time to research and compare auto loan quotes will pay off handsomely with a low rate auto loan with bad credit that will allow you to be able to afford that car.

In many cases low interest car loans are just a click away. If you can get your credit and FICO score high or high enough then it is just a matter of shopping for the best interest rate for a auto loan wisely. That is right, shop just like you will for a car, even if you have bad credit. Then compare a minimum of 3-4 auto loan quotes online or locally, this will enable you to find and secure the best low interest auto loans that you can afford.

Lillie

August 4, 2010

Getting The Best Auto Loan Rates With Your Credit History

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 11:16 pm
Jim Johnson asked:




It is very important to understand how your credit history affects the auto loan rates that you are able to qualify for, since not understanding the process can cost you significant amounts of money over the life of a typical car loan. So here is an explanation of how you can get the best auto loan rates by knowing all you can about your credit history. Let’s start out by understanding how your credit history is compiled.

There are three major credit bureaus that collect and store information about all of your credit purchases. They are Equifax, Experian, and Trans Union. Whenever you borrow money to buy something they are informed by your lenders on a regular basis about how much you borrowed and how diligent you have been on paying back that amount in the form of your monthly payments. All of this data is received by those three companies and stored in massive databases where it is packaged into an overall credit report, which is also called your credit history.

So if you are shopping for used car auto loans for instance, your prospective lenders will access that credit report and review it to determine how much risk they think will be presented by loaning you the amount that you need to buy the car you want. The number that most lenders usually refer to to get a quick and overall idea of how good your past credit history has been is called the credit score. It’s a calculation of several things including your payment history, the amount of outstanding debt you currently have, how far your credit history goes back in time, and so forth.

Obviously then, the better job you have done in paying all of your bills on time and in full, the better your overall score should be providing that you haven’t overloaded yourself with debt. When the auto loan lenders see your credit score, that enables them to decide what interest rate they will charge you for giving you a used car auto loan. The better your credit score, the better interest rate you get, and therefore the less money it costs you to get the loan.

One very important thing that you should also know is that you can get a copy of your credit score from each of the three credit bureaus and review it to be sure that it is indeed correct. Actually it is fairly common to find errors that have been made that are not in your favor, so it’s a good idea to regularly review your credit history to keep it up to date. If you find errors you can begin working with the credit bureaus to have them removed as soon as possible.

So if you want to get the best auto loan rates, you need to pay close attention to your credit history and guard it very carefully. If you review your current credit history every three months or so you should be able to stay up on any changes that will need to be made and can keep errors to a minimum. Then when you are ready to start shopping for used car auto loans you can get the best auto loan rates that are available and save lots of money.

Vincent
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