auto loan rates

February 19, 2011

Car Loan Interest Rates – What Rates Can You Expect to Pay For Your Next Car Loan?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 5:20 am
Jimmy Harris asked:




What are the car loan interest rates, and how much will end up paying per month and total for your next car purchase? These are factors that definitely need to be addressed before you buy your next car.

The basic kinds of loans available are between thirty six and seventy two months, and which you decide to get ultimately is based on how long you plan on keeping the car for, and what you can afford. There are pros and cons two each.

For example, the longer period loans (seventy two months) will net you a lower monthly payment, but also much higher total amount you have to pay off, because it is taking the loan company longer to get the cash.

On the other hand, getting a short term loan will force you to pay a higher dollar amount upfront per month, but a lesser amount overall. Your decision will be based on how long you want to keep the car for, and of course, which you can afford.

Also affecting the car loan interest rates you will be shelling out are whether the loan is secured or unsecured, which definitely plays a huge role in determining the final price. An unsecured loan is certainly much more expensive, but has the benefit of not being required to pay any collateral should you not be able to make your payments on time.

A secured loan is probably your best bet, however, because even though you will have your car repossessed in the event of a default on payment, this shouldn’t even be a concern assuming you have enough cash flow coming in.

The car loan interest rates you will pay are all different, depending on the current interest rates, whether the loan is secured or unsecured, your past credit history, where you are buying the car, and again, how long the loan is for, and the company you decide to go with. However, the general rates are between seven and fourteen percent.

However, keep in mind that the car loan interest rates you see advertised is not the price you have to pay in most instances, when you know some simple crucial haggling tips to get the price down.

Joe

January 5, 2011

Factors That Affect Car Loan Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 7:15 pm
Peter Gitundu asked:




Buying your dream car when in financial distress can be made possible by taking a car loan. There are finance companies that will give you car loans as they strive to help you achieve your dream. What differs in the services offered are the loan rates. This tells you that, you should make a comparison of all the companies that offer these services.

Be keen on what you see being advertised because some may offer you lucrative rates but exploit you on the side. The car financing rates will be affected mostly by two factors, which are, the amount you wish to borrow and the repayment period you wish to take to clear the debt. This may sound simple and you may actually dismiss it as common sense, but wait till you have done your calculations and you realize just how much money is at stake here. You can make use of the online finance calculator for an easier estimate.

The rates will also be affected by the type of financing you are applying for. These include, personal unsecured loans and the secured ones. The former will attract higher interest rates. Secured means that the automobile will serve as the collateral for the financing, meaning that the financing company may repossess your auto if you default on payment.

Another factor that the financing company may wish to consider is whether the car you are going to buy is old or new. If you are buying a used one, the rates may be different from those charged on a new auto, and in most cases, they tend to lean towards the lower side.

Joe

November 23, 2010

Shop For a Cheap Car Loan Rate

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 9:41 am
Apurva Shree asked:




A cheap car loan rate is something that you should watch out for when you are shopping for a car. Purchasing a car can have a significant impact on your finances, so do not just impulsively rush to the dealer and sign a deal, before you think it through. You need to sit down and consider your financial situation, you need to figure out if you can actually afford a car that you like or compromise for another one that is friendlier on your pocket.

You will then have to consider getting car loans, as most of us need to take out a loan in order to purchase a car. It will help if you did some research about auto loans, various kinds of lenders that you can approach and decide if you will opt for a secured or an unsecured loan. You need to compare quotes to determine who offers you the lowest interest rates and flexible repayment options.

Purchasing a Used or a New Car

If you have bad credit history, you need not worry about buying a car, as many online lenders offer competitive rates for people with a poor credit profile. You may have to get a loan from a sub-prime lender, but consider it as a chance to set your credit records straight by making payments on time. Soon you may be able to apply for refinancing car loans and get lower interest rates with more flexible repayment options.

Some people are confused when it comes to buying a car, as they are on a limited budget and wonder if they ought to buy a used car or go for a new one. You easily secure bad credit used car loan, but you will find that a new car can be financed for longer durations and when compared to used cars, have a lower interest rate, so just make sure you consider all options available to you, analyze carefully what choices are right and then decide on the type of car and the lender.

You can get cheap car loan rate, if you use collateral, perhaps even the very same car that you are purchasing. The lender will have the car’s documents and if you default on payments, you may lose the collateral. Think twice before you commit yourself, as you need to have enough cash left to pay for insurance, registration, monthly up keep and servicing etc. You have to set aside a certain amount each month for gasoline and the monthly installment. If you unrealistically sign a deal for a dream car at high APR, you may not get to enjoy driving around in it, much considering the strain on your finances instead consider shopping for a loan from a lender who offers a cheap car loan rate.

Ronnie

August 22, 2010

Good Rate Car Loans

Filed under: Finance — Tags: , , , , , , , , — @ 6:19 am
Chris Goodman asked:




Regardless of your credit history, everyone is looking for the lowest possible rate on a car loan. There are many factors that go into determining the ultimate rate you will be changed by the lender/dealer, but your credit score is one of the largest factors. In addition to score, lenders are looking at actual history in profile to determine your “credit worthiness” or better said how you have paid your bills in the past. They are also looking at the collateral you are purchasing and the down payment you are providing.

Since credit score is the main factor a lender looks at, here is a breakdown of how Experian, one of the largest credit reporting agencies, breaks down the different credit categories:

Super Prime = 740 and above
Prime = 680-739
Non-Prime = 620-679
Sub-Prime = 550-619
Deep Sub-Prime = below 550

Your credit category will determine how easy or hard it is for you to get a car loan. If you fall into the Sub Prime or Deep Sub Prime tiers, you are having the hardest time finding a car loan. Those whose credit falls in the top three are still getting financing all be it harder and more expensive than it was a year ago.

The internet opens up many options for consumers will all types of credit. There are benefits to going online and securing your auto financing regardless of the credit category you are currently in. Some of those benefits include data security, the ease of applying from the comfort of your own home, better negotiation power with the dealer since if you get your car loan before heading to the dealership, you are viewed as a cash buyer.

You owe it to yourself to explore the internet as an option for your car finance needs. Many lenders offer finance products for the purchase of a vehicle from a dealer, products allowing you to refinance your existing loan and some even give you the option to finance a vehicle you purchase from another individual. Regardless, getting a car loan online will save you time and money.

Gregory

June 2, 2010

Auto Title Loans – How Much Can You Borrow Against Your Car Title?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 11:04 pm
Andrew Stratton asked:




Auto title loans are subprime loans given to borrowers with bad credit who use their auto equity as collateral, allowing consumers to borrow money based on the value of their vehicle.

When you apply for an auto title loan, you’ll have to show proof that you hold the title of your vehicle. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan.

Some lenders may also require proof of income and/or conduct a credit check, bad credit does not disqualify you from getting approved. Auto title loans are typically considered subprime because they cater primarily to people with bad credit and/or low income, and they usually charge higher interest rates than conventional bank loans.

How much can you borrow with Auto Title Loans?
The amount you can borrow will depend on the value of your vehicle, which is based on its wholesale price. Before you approach a lender, you need to assess the value of your car. The Kelley Blue Book (KBB) is a popular resource to determine a used car’s value. This online research tool lets you search for your car’s make, model and year as well as add the appropriate options to calculate the vehicle’s value.

Estimating your vehicle’s worth will help you ensure that you can borrow the maximum amount possible on your car equity. When you use the KBB valuation as a baseline, you can accurately assess the estimated pricing for your used car.

The trade-in value (sometime equal to the wholesale value of the vehicle) will be the most instructive when you’re seeking a title loan. Lenders will factor in this calculation to determine how much of that value they are willing to lend in cash. Most lenders will offer from 25 to 50 percent of the value of the vehicle. This is because the lender has to ensure that they cover the cost of the loan, should they have to repossess and sell off the vehicle.

Different states have varying laws about how lenders can structure their auto title loans. In California, the law imposes interest rate caps on small loans up to $2,500. However, it is possible to borrow money in excess of $2,500, if the collateral vehicle has sufficient value. In these situations, lenders will typically charge higher interest rates.

When you cannot depend on your credit rating to get a low-interest loan, a higher-limit auto equity loan can get you cash in time of a financial emergency. An auto pawn loan is a good option when you need cash urgently and can offer your car as collateral.

Make sure you find a reputed lender who offers flexible payment terms and competitive interest rates. Most lenders will allow you to apply for the loan through a secure online title loan application or by phone and let you know within minutes if you’ve been approved. You could have the cash you need in hand within hours.

Gladys

February 4, 2010

Auto Loans Rates: so Now Your Car is not a Far Away Dream

Filed under: Loans — Tags: , , , , , , , , , , , , , , — @ 2:38 am
Carney Alden asked:


Owning a car makes you a part of that society which believes in having luxury. You earn well, your credit is good but still spending it on a car at a go is not something you can afford. A monthly installment scheme which will help you get a car should work out better. Auto loans rates offer you just that very installment scheme you are looking for.

Auto loan rates are influenced and keep changing with the credit score of the borrowers. There are multiple auto loans in the market, some are for good credit holders and some are for bad credit holders. To get the cheap rates, there is a small trick. If you are among those who can bargain well, then you are lucky. If you can bargain smartly and effectively, you can get a loan rate which suits you completely. It is better to start the bargain with very low rates so that, at the end, you can get affordable and easy payable rates.

Many people just consider rate of interest to lower the rates. But annual percentage rate or APR is the important thing to look for when calculating the total loan cost. Down payments are important feature which affects the other loan features. If the down payment is big, the interest rate is low and the loan term is long. Long term loans have low interest rate than the short term loans. a good credit scorer can get the loans with lower interest rate comparing to a bad credit scorer, whose interest rates will be little higher. Secured loans are low in interest rates and extended loan term than the unsecured loans.

Auto loans are generally secured with the car itself. Many lenders also take other assets as the collateral against the loan amount. The borrowers can get these auto loan rates online and by visiting the lender’s offices. These days online mode is more convenient.



Joel

December 11, 2009

Auto Loan Rates – What Are They?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 12:44 pm
Alan Drakovic asked:


Most buyers have this very same way of thinking when buying a car: the moment they set eyes on the car they want, they immediately fall for it and brought one home without determining the rates that come along with it. Feeling the same thing is typical for a wise and responsible buyer, what with its spectacular profile and seamless totality, the preferred car would surely be a hit. But the big difference is, a responsible buyer would primarily ask for auto loan rates prior to taking the car home, something that impulsive buyers wouldn’t dare think of.

So, what are these rates in the first place? Auto loan rates are charges estimated as a percentage of a higher figure given to a borrower on the condition that it will be repaid at a specified period of time. There are two types of auto loans and each type represents different rate calculations. The secured auto loan is deemed as a type of loan that provides a borrower with competitive interest rates and fees, longer tenure of repayment, and greater loaned amount. Conversely, an unsecured loan is a type of auto loan that offers expediency especially to those people who prefer faster approval with lesser documentations and paperwork to accomplish. However, auto loan rates are changeable reliant on the type of loan you choose, the security you provide or collateral for secured loans, if any, and the amount of your initial payment.

To get a good rate on your car loan, you would need to follow these simple tips:

1. Look for credit union offers. They mostly give the lowest rates compared to rates offered in banks.

2. Look for pre-approved offers. Asking your bank about this will allow you to extend your negotiating capacity. Since you have an idea as to how much the amount of loan you can get, it is much easier to negotiate with different car dealers.

3. Look for the shortest tenure loan. This is more advantageous weigh against longer-term repayment process as interest rates are lesser and more economical.  



Charlotte

November 19, 2009

Auto Loans Rates – Ways to Get at Loans Cheaper Rates

Filed under: Loans — Tags: , , , , , , , , , , , , , , — @ 11:56 am
Heather Stomes asked:


Auto loans are of different kinds: bad credit loans, fast loans, instant loans, poor credit loans. In secured auto loan, money lenders keep any asset as collateral. There are many types of auto loans. Some auto loans rates are high while others are cheap. You have a range of choice to select a lower interest rate.

How to Negotiate or Lower Interest Rates:

Many financial services and online money lenders are offering various choices. Due to fierce competition in the industry, there is a chance of getting auto loans at lower rates. Only thing you need to know is some few tricks. Let us discuss some of them.

Make a Survey of Financial Companies:

Research must be done to find out true information about the auto loans rates. You can request quotes and rates from various companies. Searching through online is the easiest way. Most of the financial companies have their own websites, surf the sites, and grab the information. Compare the rates and choose the best one.

Negotiate:

Fierce competition in the financial services gives us a better chance to negotiate with the money lenders.

How to Plan:

You know your financial condition. Plan accordingly, keeping in mind, how much you can afford as a monthly installment. Choose the car you want to buy and search for the money lender who can finance for your car in the best way.

Down Payment:

Many of us prefer zero down payment or low down payment loans. But to lower the auto loans rates, it is better to pay huge down payments, at least for first few months. For the rest of the amount, loan rate would not be much higher.

Rebates or Discounts:

Usually auto dealers have targets to achieve at the month end. So they introduce some rebates or discounts to attract customers. People who pre-qualify for the loans can demand easy auto loans rates, discounts or some extra features.



Frank
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