The Car Finance

Car Finance - Three Great Financing Options

2011-03-17T00:06:00.000-07:00

When it comes to buying your new or used car, there is more than one way you can finance your purchase. While it is possible to pay cash for a vehicle, 80% of people make use of today's excellent car financing options. This is a great way to own your new vehicle more affordably by breaking down your purchase into small monthly payments. There are a few ways to approach financing your car, each of which has pros and cons that you must consider before you settle on one route or another.

One option is to obtain something called 0% financing. What this allows you to do is extend the length of time that you can pay back a car finance loan without the usual interest that comes along with taking out a loan. This is a popular way for car retailers to draw customers in. However, to qualify you will need a very high credit score and the period of time required for you to pay it back will be less than other car finance options you might be able to find. Instead of lowering your monthly payments and paying back a loan over 48 months or longer, you may be required to pay the entire sum in 36 months.

Another option for car finance is one that offers a cash back incentive. If you have two opportunities, one that offers 0% APR financing and another that offers cash back, you can decide which is better by figuring out how much you will have to pay in interest over the length of the loan if you choose the cash back option. If the interest you will pay ends up being higher than the cash back amount, 0% APR will be the better deal for you.

Another option for car finance is to have the chance to get into the car of your dreams with no money down. The ability to forego a down payment is a great incentive for many people who need a car but do not have thousands of extra dollars to devote to a down payment. The advantage is you get into your car with less upfront, but you may end up paying more in interest over the length of the term. Plus, your monthly payments will be higher because you are not getting a few thousands out of the way at the start of your car loan.

Albano Stefani is the Marketing Analyst for Interactive Financial marketing group

How to Request an Auto Loan Modification

2010-07-03T20:47:00.000-07:00

Even though the economy is supposedly on the upturn, many individuals are still having a difficult time with meeting all their bill payments. You may just be trying to catch up on payments and worrying about whether or not you could end up having your vehicle repossessed. What numerous car owners don't realize is that there is a way to get your monthly payments lowered without having to start the process of loan refinancing. Have you heard the term auto loan modification?

By taking advantage of auto loan modification you can come back from the brink of financial disaster. Applying for an auto loan modification is not that difficult and can be done through your bank or at the automobile dealership where you purchased your car.

Finance companies and dealerships are more than willing to work with you, so you can keep your car. Don't forget they have been suffering through the recession and don't want to lose any sales or have any customers defaulting on payments either.

So if you feel you could be in jeopardy of losing your car then simply ask for information on how to go about the application process to request a modification on your present loan. No one wants to face car repossession, plus the fact that the damage from losing your vehicle could be devastating to your credit. That one item alone could take you years to recover from.

An auto loan modification is a win- win situation for everyone involved, the car owner, the loan company and the automobile manufacturer. As the car owner you don't want to lose the vehicle and the bank certainly doesn't want to have to take possession of the car either. This type of loan really is the best solution for all parties.

Requesting an auto loan modification can be as simple as picking up the phone and calling your financial institution. If you are still hesitant about this there is another approach you can use. By looking on line you can discover more in-depth information on how the auto loan modification process works. Then, by using this information and the documents provided you are totally prepared when filling out your application. This method can certainly give you peace of mind.

As mentioned an auto loan modification can be the best solution for all parties involved. It can be quickly result in manageable car payments and put your finances in a much better state.

To save you the trouble of searching online, you can get more detailed information on how to easily apply for an Auto Loan Modification in 30 minutes or less. Or check out this site at http://www.StopReposNow.com

By P.J. Edwards

Top 10 Car Finance Tips

2010-06-26T15:46:00.000-07:00

Step 1: Set your budget

Set your budget and stick to it! Make a list of what you need the car to do. For example do you have a baby? Do you need a big boot? Do you have a large family or is it just for you? Do you want Diesel, Petrol or Gas etc.

Look on the internet for the various advice guides that tell you the recommended price of the car you are looking for. you can also find this sort of information in magazines.

Make sure you keep an eye out for manufacturers’ recalls, and make a note of when the cam belt needs changing as this is an expensive repair that must be done when the manufacturer recommends.

If there is a problem with the cam belt it could inflict massive damage to your engine. Are the manufacturers still making the model you want? If they aren't, it could mean spare parts are hard to find and expensive.

Talk to other car owners you see in the street, tell them you’re thinking of buy a car like theirs and ask about fuel consumption and reliability.

Step 4: Compare prices

Try not to get a car that has been driven over over 100,000 miles as they will need a little more attention and maintenance than a more modern car.

Get a local paper and see what is on offer, you will usually find that a Friday is a good time to look for used car prices. You will want to have a drive to local garages and dealers within a reasonable distance of where you live.

Step 5: Arranging a car loan or car finance

Check out our top 10 car finance sites or try our personal loans site to get the best loan rates you can.You can also talk to one of our independent financial advisers on 0845 108 0505 or fill in the quick enquiry form.We recommend you look at 2-3 different places to get the best deal, but do not apply for 10 loans as it will damage your credit rating. If you would like to find out more about your credit rating then click here. Alternatively check our credit scoring advice section on our Mortgages sister site.

Remember to always stick to your budget, and make sure you can afford the payments.

Step 6: The test drive

Make sure you test drive the car for at least 20 minutes, so you can be sure you are comfortable with it.

Take it on to a motorway or dual carriage way so you can open up fully. See how much it smokes when you use the throttle, all cars will smoke a little bit but it should not smoke after 2-3 seconds of going up through the gears, but if you get to 5th gear and it’s still smoking then youBefore the car is moved for the test drive open the bonnet and check the engine is cold, always test drive the car from cold!

If when the car is first started it takes 2-3 turns of the key to start it could need a service and or parts changing. When you sit in it make you test all the buttons, electric windows and radio.

Step 7: Negotiation

Always negotiate face to face, as you will see if the sales person (or owner) is trying to hideNever try to negotiate over the phone, as any information given out could be denied later. Sales people will only try and bring you into the garage anyway.

Always stick to your budget.

If the car price, warrantee and finance deal is agreeable to you, say to the sales person that you want a coffee and 5 minutes alone to talk to your partner. Make sure that you are both happy with the deal. This five minute pause could save you from weeks of nagging later, or from spending thousands of pounds on a car which is not really suitable. If you are getting a car loan from the dealer, always try and get road tax, warranties and a tank of fuel included in the finance.
Always look at what the warranty doesn’t cover, as some warranties aren’t worth the paper they are written on.

If the warranty is a good one it should clearly state what is not covered.

Always try and get a better warranty if you are buying a second hand car from a dealer. They normally offer you the bronze warranty try and get at least silver as they normally go up to platinum. But remember that even platinum will not cover every single thing on the car.

If the dealer is confident in the car he should give you a 6 month warranty. Again most importantly ask when the cam belt is due to be changed and try to get them to include it in the service that should be done before you pick the car up. Also make sure if something does go wrong, the faulty part is replaced and has a new warranty.

Step 9: Get everything in writing

Make sure you get everything in writing. Any work that was promised to be done will be done i.e. paintwork, dents removed, radio code and all other agreed items. Get the service history if you can.

Step 10: Getting the keys

Most modern cars have central locking which uses an electronic key they can cost hundreds of pounds to replace. So make sure you get two keys and keep one in a safe place.

Car Finance UK

Car Finance - How to Decide Best Car Loan EMI

2010-06-26T06:53:00.000-07:00

Earlier, car buyers had to be fully dependant on the loan officer. Thanks to the various options we have these days, the loan agents have to compete with each other for our car deals. We have the 'pre-approved loan' and 'loan on phone'. Banks yearn for customers. This article will help car buyers get the best EMI on the car loan.

The car finance rates may be high. Yet, the car buyer is the one who gains. Negotiation is the best trick that one can play in the game of car financing. Brush up on your negotiation skills and you will be amazed at how the interest rate and car loan EMI decrease drastically. If a finance agent tells you that the rate and EMI are fixed, ask for the manager. You never know, the EMI may go down.

Do not forget to do your home work. Use the EMI calculators that are present on most car loan web sites. Calculate the EMI for the amount you would have to borrow as auto loan. Compare the EMIs from as many Web sites as you can. It is advisable to later lower down the choice to may be five car finance agents who offer the lowest interest rates and the lowest EMIs. Don't be happy though, that you've got the best car loan deal. You need to negotiate on those interest rates. Even very little amount saved in margin down payment and interest counts. There are enough options available for an average Indian to obtain an auto loan on sensible terms as long as he knows what to ask for and assess what is being sold.

Suppose you take a car loan of Rs 1 lakh for a 3-year term and EMI of Rs 3,331, the amount you would repay at the end of the three-year tenure would be Rs 1,19,916. The extra sum you would have repaid over the principal is Rs 19,916. On a yearly basis, the same works out to Rs. 6,638 or 6.6 per cent a year. This is the flat rate charged by the loan agency.

The reason the rate is so good is because it takes for granted the simple interest, which is not appropriate for our EMI based loan. The flat rate is applicable, if you are allowed to pay only the interest at the end of every year for three years and repay the principal after three years.

Most car loans come with monthly payments in the form of EMIs that include principal repayment and interest charges. Your principal outstanding decreases every month and the monthly interest is calculated on this reducing balance. See to it that you settle for the lowest EMI in order to get the best deal. However, do not forget the interest rate.

Today, car finance agents offer loan tenures as long as seven years that naturally lower the EMI. However, such car loans may not be optimal. You may end up constantly owing more on your car than its worth as your car is depreciating faster than you're paying your loan off. You will not even be able to sell off your car midway without losing money. Then comes the pre-payment penalty too. You will be happier considering a cheaper car than a longer loan.

Deepthi Alvares
Get more information on Car Loans and Sell Cars

Car Shopping With Bad Credit - Little Tricks That Save Money

2010-06-25T16:03:00.000-07:00

Car is no longer a luxury, as it was a century ago; it is a vital necessity, especially for people outside major cities, where public transportation is not widely developed. We need a car for many reasons: grocery shopping, work commute, and so forth. For most people, the need for reliable transportation is hard to overestimate.

As car prices are steadily going up over years, most Americans utilize auto loans to finance their car purchase. While for people with good credit, getting an auto loan is not a problem, consumers with credit blemishes often find it challenging to get decent terms on auto loans, or to get approved for an auto loan at all. That is why many people with bad credit find themselves trapped financially, as they spend humongous amounts of money for fixing their old ride, being unable to purchase a newer, more reliable vehicle due to credit problems. It is possible, however, to get approved for a car loan with competitive terms and rates once you know the way auto financing works.

Fix Your Credit
While many people associate credit improvement with a costly investment or a lengthy period, it is not so. Most consumers with bad credit have mistakes and misrepresentations listed on their credit report that prevent them from qualifying for a car loan. You may be surprised how easy and fast it is to improve your credit score by removing such items from your credit report. First, you need to obtain a free copy of your credit report from all leading credit reporting agencies. Then, you need to examine your credit report for any inaccuracies, such as unauthorized inquiries, wrongfully reported amounts, old negative items, and so forth. Last, you need to contact credit bureaus in writing, asking them to remove these items. Typically, it takes a little over a month to resolve these issues, often resulting in better credit score.

Set The Vehicle Purchase Price You Can Afford
To avoid further credit problems, it is important to take a realistic look at your financial situation. How much money can you contribute monthly to make payments on your auto loan? How much money will you save by replacing your gas-guzzling, maintenance-heavy old vehicle? How much will you be able to get for your old car? Honest answers to above questions will help you greatly to determine how much money you should be able to spend on your new ride without overextending yourself.

Do Not Trust Your Dealer
Auto dealers are in business to make money, and they make most of their money off people with bad credit. How? Very simple - they know that individuals with poor credit will be happy to get approved, and offer them higher vehicle prices, as well as marked-up interest rates on loans. Dealers think that bad credit consumers have less bargaining power due to their credit problems, and take advantage of them. Therefore, do not take the first offer from the dealer. Shop around to get the best prices on cars, and never go by what they tell you - they are not finance gurus, after all.

Shop Online For Auto Loans
Dealers may tell you about their special relationship with lenders or about their exclusive financing offers for bad credit borrowers. There is nothing special they may do for you! In fact, your own search for online auto lenders that service bad credit borrowers may produce better results, as going direct always saves you money. That is why you should go online and look for lenders, specializing in bad credit auto loans, until you find a deal that suits your budget.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Loans. Hilary publishes informative articles about loans for bad credit and other financial topics at FastGuaranteedLoans.com

By Hilary Bowman

Car Dealership Bad Credit Financing - 5 Tips

2010-06-25T03:15:00.000-07:00

Getting your car financing through a dealership can give you some additional leverage over the price you pay for your vehicle. On the other hand, it also gives the dealer the same leverage to potentially work against you. When you walk through the door of the car dealership for bad credit financing, you are walking into a real-life negotiation situation, the outcome of which will have a big impact on your wallet.

Here are 5 tips for navigating car dealership bad credit financing in a way that give you an excellent chance of coming out ahead:

1. Prepare yourself before you walk through the door: Knowledge is power. When it comes to auto financing at a dealership, you have to keep your wits about you the entire time you are on the lot. Just how you carry yourself - how you walk, how you hold your head, how you look into the salesperson's eyes - tells them volumes about how demanding you will be of a good deal.

A great way to bolster your confidence to get the best-possible financing deal is to do your homework first. The key items you should research before you set foot into the dealership are: your current credit score (check with all three of the Big Three scoring agencies), the price you should willing to pay for the car, and the interest rate you should expect to pay.

2. Remember that there is always an angle: Think about it: a dealership has to make money. Otherwise, they would just fold up shop and go home. No matter how much of a good deal you believe you got on the price of your car, you are not done until you have met with the financing manager and have penned your John (or Jane) Hancock a financing contract. For example, if your car is being offered at a price below the amount the dealer paid, the dealer is likely getting a rebate from the manufacturer. Either that, or the dealer believes they can charge you a huge interest rate on the car and make their money that way.

3. Write down everything the salesperson said before you meet with the financing manager: Make sure you get the final, agreed-upon price of the car in writing before you leave the salesperson's side. You want to make sure there is no wiggle room on the price once you have shaken his or her hand. Now, as you walk yourself into the financing manager's office, you are playing part two of the game: the financing part. It is important to have all of the facts straight so that, between the two of them, the dealership personnel don't try to sweeten their end of the deal while leaving you in the dust.

4. Try the flinch technique: When you are negotiating the interest rate for your car, you will be offered an initial interest rate figure by the finance person. Make sure you flinch when you first see the figure. In case you have never heard of this, the flinch technique in negotiations simply means acting like the amount is so high as to be surprising or dismaying, making you flinch with an audible "Ooooooh." Doing this is going to make them want to come up with a lower number fast.

5. Always negotiate for a lower interest rate: No matter what your credit score, remember that the dealership will use your low FICO score to try to get you to agree to a higher interest rate. That is just not the way you want to play ball. Do not let them take advantage of you, given your bad-credit status. Hold strong and always ask for a much lower rate than you think you can qualify for. Ask and ye shall receive. (Or at least, ye shall receive a better rate than they initially offered you.) And, this could save you thousands down the road.

Getting bad credit financing at the car dealership is a great option. For one, it's a handy thing to have a one-stop-shop auto purchase experience. Just make sure to keep your senses about you and remember that it isn't over until you've signed the contract and driven off the lot with your car.

Get access to a list of car dealerships that offer bad credit financing at: www.Best-Car-Financing-Deals.com.

By RobbieT. James

How to Choose a Car Finance Broker - Some Useful Tips

2010-06-24T16:54:00.000-07:00

Financing a car is a very important process and today with the availability of numerous car finance brokers it has become an easy option to get secure car loans. Today these car finance brokers are also playing a vital role in assisting car buyers. In fact, consulting and taking help of car broker can definitely be most appropriate option if you don't have any clue about what to look at according to your budget. A finance broker is the most experienced personnel and clued-up on how to approach the financiers in a way that can persuade them to approve the loan. They usually have good relations and reputation with the lenders as being reliable, and so they know which lenders are likely to be open to a client.

In general, they act as the key source and offer services such as finding a used or brand new car model that the customer wants and within a budget range. At times, these car brokers even assist car buyers in negotiating with a used car seller. However, these days there are many car finance services and making a proper selection is turning out to be a very complicated process. You need to understand that not all car finance services are fair. Therefore, if you are looking to finance a car or choose a car financing service then here are a few important points that you should keep in mind while making a selection:
Standards
You must confirm whether your car finance consultant or broker is a member of FBAA or COSL or both of these industry associations. While Finance Brokers' Association of Australia Ltd. (FBAA) is one of Australia's leading membership bodies for finance broking professionals, the Credit Ombudsman Service Limited (COSL) is an independent organisation that is mainly indulged in handling complaints about finance brokers. You can easily confirm finance consultant's membership by searching through their member list. Adding to this, WA Finance Broker License is yet another additional requirement for finance brokers serving in Western Australia. Nevertheless, if you are looking for finance broker and residing in the state of WA or other states of Australia, it is essential that the broker must hold a WA Finance Broker License. A broker holding WA Finance Broker License entails passing a comprehensive range of checks, educational requirements and operational requirements.

Accreditation
While selecting a car finance broker also ensure you know about their range of lender accreditations. The range of accreditations held by a broker governs the range of options they can offer. You must note that a broker's accreditation can not just change the range of finance options available to you, but it may even affect the quality of those options.

Experienced Staff
You must choose car finance service that recruits and retains professional and knowledgeable staff. The broker must be an experienced professional who can demonstrate and explain about why a particular product is highly recommended or even suites your specific circumstance. If possible make sure you even ask for testimonials from previous clients that in turn may help you in the confirmation of their experience.

Services Offered
As mentioned earlier, today there are many finance services available in the market. Therefore, you must find out more about any extra service that a broker can provide. You should expect your finance consultant to supply detailed information about timeframes, and any fees or extra charges related with your finance. The key point is if a broker is being able to clarify the comparison rate of your recommended vehicle finance and the overall cost of your finance package then it is quality sign of a good finance broker.

These are some important points that can help you in choosing your car finance services easily. Today a lot of responsibility goes along with buying a car and taking financial help through car broker. Just taking care of few essential steps can help you select your car broker and further purchase a nice new or used car.

Get car finance at great interest rates. Automarket.com.au offers car finance and car loans for new or used car Australia wide. Compare our discount car loans through a variety of lenders and use our online car loans calculator. Also find a wide range of new or used cars for sale from car broker services in Australia.

By Amit Kothial :