auto loan rates

April 8, 2010

Bad Credit Auto Loan Rates – Online Lenders Offering Lower Rates

Jason Lanier asked:


You’re thinking about getting an auto loan but you’ve got “slow credit”? Have you thought about applying for an auto loan but are concerned that you won’t get approved and that if you do, you’re going to end up with high auto loan interest rates?

The solution is on the internet with online auto loans…

There are many different companies that can help you, however not all are created equal. Just like every other kind of business, there are good and there are “not so good”. You’ll find that there ARE reputable lenders online that can help you, but finding them may be a bit of a challenge if you’re not familiar with financial services. (Recommended Site)

One of the best things that you can do is to not accept the first offer that you are given, especially if it’s at a car dealership. Make sure that you’re getting the best deal for you, and not necessarily for the dealers commission check. There’s good options for you if you just take a little time an check them out.

Make certain that any lender that you deal with online is legitimate and reputable. Some are in great standing with the Better Business Bureau, which is always a good sign. Others just come and go and aren’t even around for very long at all. Using a respectable, legitimate source to get a real auto loan quote is the only way to go if you want a real loan that will be affordable and allow you to drive something that you’ll be proud to own.

The best auto loan rates for people with bad credit can be found with some good companies. Remember to always avoid predatory lending practices and make sure that you read the fine print in any auto loan contract!



Connie

December 10, 2009

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

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.

http://www.BuyingCarswithBadCredit.com can help you with lower loan rates. If you have bad credit, there are sources that are willing to help you to overcome the challenges that you are facing, while helping you to rebuild your credit with a good auto loan.



Michele
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