Bargain Buyers and Car Loans

164Many automobile buyers get really excited about the thrill of the bargain. There’s probably no other sales situation where price negotiation is such an accepted part of the process as at a car dealership. A quick search on the Internet will reveal pages upon pages of strategy on everything from how to dress to how to get some premium options thrown in gratis. What many of these tipsters don’t explain is that dealerships make up to 40% of their annual profits through the finance and insurance departments. So, unless you plan on paying cash for the whole thing up front, that sweet deal you think you’re getting could end up costing you in the long run through expensive car loans. Here are a few quick and easy tips to remember if you’re looking to save money on the bottom line, not just when you drive off the lot.

Do the Math

There are a lot of numbers flying around when you go to buy your ride, and it behooves you to crunch at least some of them before you step onto the lot. One thing to especially be aware of is the bottom line between low-interest car loans and cash rebates. Many times, dealers offer instant cash back when people finance their vehicles. But sometimes those rebates are attached to slightly higher interest rates. If, for example, the $500 rebate comes with an extra 0.5% interest over a five-year loan, compare the overall costs. If an extra 0.5% interest rate costs you an extra $800 over the financial term, is that really worth it?

Do Your Homework

The three credit reporting bureaus keep tabs on creditworthiness, and a buyer’s credit history will largely decide the interest rate. Credit scores vary from 350 to 800, and it is highly recommended that a prospective buyer go in to the dealership knowing their number. Armed with this knowledge, a buyer has more leverage to bargain over terms.

Do It Yourself

Another way that auto dealership’s finance departments make money is through bundling. Bundling refers to the practice of adding a bunch of extra features. Extended warranties, satellite radio, roadside assistance, all of these can be folded into one cost that is paid off with the loan. By combining all these costs together with the big purchase, what seems like a few hundred dollars in extras can end up costing thousands after interest. These extras often get thrown in after the sticker price has been negotiated down, and the buyer is less guarded, thinking they’ve already won the day. In fact, it is much cheaper to purchase many of these extras individually from separate businesses.

So, if you’re going to the dealership looking to get a good deal, remember that it’s not just the dollar price on the car, but the car loans that the dealership makes money off of. Keep these tips in mind to save on your bottom line.

Bad Credit Car Loans Steadily Gaining Popularity Amidst Economic Stagnation

163Personal loans are common across the society since the historic times. These can be broadly categorized as secured and unsecured personal loans. It is easier for everyone to avail unsecured personal loans as compared to the secured ones. The sum of money involved in this category of transactions is usually petite, ranging between hardly a few hundred dollars at the most. In order to avail the type of facility, a borrower, usually, does not need to put up any asset as collateral. As such, the individual’s credit score is hardly taken into account while providing the facility. However, in some instances, lenders charge higher interest rates to borrowers with dismal credit scores, on availing unsecured personal loans.

On the other hand, to avail secured personal loans, borrowers need to put up some asset or the other as collateral. As such, rate of interest involved in this range of loans is usually more reasonable as compared to the other variety. Because of the collateral asset, lenders offer secured personal loans at lower interest rates. Thankfully, both the types of loan allow monthly installments to borrowers to repay the money. In a recent development, a range of registered money lending agencies is readily providing loan to people with bad credit. To avail the unique facility, however, one has to own the clear title of a car, truck, van or SUV. The amount of money disbursed as loan is determined by the condition of a vehicle in question.

The range of loans is steadily gaining prominence and is facilitating life for scores of people by resolving their small economic needs. The unique monetary facility is more popularly called bad credit car loans. Stagnant economy is compelling the corporate sector to downsize its workforce. Lay-offs, unemployment and pink slips are rampant across the industrial domains these days. In short, innumerable folks are suffering from low credit score. Conventional lenders refuse to give loans to these people for obvious reasons. Actually, these folks invariably fail to meet the eligibility criteria of the conventional lenders. Thus, it is indeed an uphill task for these people to secure money to combat unforeseen emergencies.

The best part about vehicle equity loans is it allows users to keep and maintain their vehicles during the loan period. Volume of business for the category of lenders is increasing at an exponential pace. An increasing number of folks who need cash on bad credit unhesitatingly approach these unconventional money lenders. Professionals working in these financial establishments maintain impressive level of professionalism and never reveal their clients’ identities to third-parties.

When the loan is repaid on time, a negligible sum is levied as interest. There is no penalty on early repayment of these loans. As there is no credit check, money is handed over fast to borrowers while availing loans with bad credit. In fact, money is handed over hardly within a few hours of filling the loan application. While availing such facility, it is advisable for the borrower to carry a photocopy of the driving license and a few other relevant documents. However, professionals working in these money lending agencies will definitely provide extensive list of documents that borrowers need to furnish well in advance.

More About Bad Credit Car Loans

162Everyone deserves a second chance. Just because you may have a bad credit history doesn’t mean you should not be able to get a car loan and put yourself back on the road.

After all, it can be hard to get around these days without your very own set of wheels. In this article I’ll talk more about bad credit car loans and what they mean for you.

What Is A Bad Credit Car Loan?

Some lenders out there will not loan you a cent if you have a bad credit history, no matter what it’s for or what your financial position may be today. But don’t despair. When it comes to car loans there are many lenders out there who are willing to give you a chance; financiers who specialise in loaning money to people who have a poor credit history.

So long as you can demonstrate that you are in a stronger and more stable financial position today, these finance companies will lend you the money to buy that car, despite your poor credit history.

You Are In The Driver’s Seat

Loans of this nature are generally no different to a loan for a person with a good credit history. Many will finance 100% of the car’s purchase price, interest rates are competitive, the lenders are reputable (think finance company, not loan shark), terms and loan structure are flexible in many cases, and loan approval times are fast.

You have control of your loan and you will literally be back in the driver’s seat in no time.

What Are The Risks?

The same as with any type of finance. You are borrowing money, there is interest to pay on the amount borrowed and you are required to meet the repayments every week, fortnight or month, however you choose to structure it.

Some Quick Tips

1. Don’t overspend. Purchase a car that is within your means to repay comfortably. Remember, cars cost money in upkeep, fuel, insurance and registration as well. It’s not just the purchase price or being able to meet the repayments.

2. Do your research and only deal with reputable bad credit car loan finance companies.

3. Take your time and only commit to a deal that you are comfortable with.

4. If you are purchasing a used car, have it thoroughly checked out by a qualified mechanic before committing to the purchase.

Conclusion

A bad credit history doesn’t have to spell doom and gloom for your borrowing future. In fact, successfully repaying a car loan obtained through a bad credit car loan finance company can be a great way to restore your credit score, making it easier to obtain finance for other things in the future.

We all deserve a second chance.

Get Into Your New Ride With the Help of Car Loans

161Borrowing money can help people get vehicles who could otherwise not afford them. Here are some of the basics.

How does it work?

The amount of the loan is based upon the value of the vehicle. Therefore, vehicles in excellent condition will earn more money than those that have seen better days. You must be the owner in order to qualify. This means you must prove ownership with a title. You can still apply even if you have a car that is nearly paid off. It’s important to make sure you have a record of payment receipts from the dealership as proof of ownership.

Why choose a car loan?

Other loans can be tricky, requiring proof of income, impeccable credit scores, proof of assets, employment status, bank accounts, and insurance. Automobile lenders understand that some people are not able to meet all the qualifications. Lenders are ready to assist anyone who owns a vehicle. Some banks and credit unions put up tons of barriers, but car loans do not. Car loans do their best to remove those barriers and help hard-working people get the financial assistance they need.

Who can apply?

The truth is anyone who owns a vehicle is eligible to apply. The paperwork is simple, and there are no credit checks. This reduces the amount of people who are turned away. Having a vehicle and some form of state or government-issued identification are the only real requirements.

What types of payment plans are available?

Car loans offer a wide array of payment plans and are committed to helping the client find the best option available. Clients should consider their regular bill cycle and employment status prior to agreeing to any payment plan. Talking to the lender will assist in the payment plan process and help borrowers make wise decisions. If there are any doubts, consult a financial specialist.

How quick is the process?

Most car loans can be obtained fairly quickly. In many cases, borrowers can have their loan in as little as 24-48 hours. Of course, each case is a little different, and each city, state, or province has their own set of rules when it comes to their policies. To be on the safe side, it is best to inquire at the agency.

Contrary to popular belief, title loans will not take cars away from their owners. Lenders understand that having a means of transportation is an essential factor in one’s life. The relationship between lender and borrower is tightly linked. In a matter of hours, clients can not only get the money they need but also drive off the lot with their new purchase.

Auto Loan Calculators Aurora

160If you need to figure out exactly what you can afford each month for a car payment, you should consider using the auto loan payment calculator on LotPro.com.

The Lotpro.com auto loan calculators allow you to input your personal information, which is kept completely confidential, and instantly you find out what you shouldn’t exceed for a monthly auto loan payment. Know before you go; using an auto loan payment calculator before you start your search for a new or used car makes the car buying process easier.

Before you apply for auto loans in Virginia or auto loans in Dallas, use the LotPro.com payment calculator. This online tool saves you time and from headaches in the you’re your at the car lot because you know what price range you need to stay within to not get financially strained later on.

Rarely will sub prime lenders rely on the credit bureau score alone when making their decision whether to approve or decline financing car bad credit loans. While the FICO score is the place that they start, these lenders always look beyond your credit score to try and find an underlying pattern of stability that will enable them to approve your application. Based on experience, here are a few examples of items that may be part of a subprime car lender’s score card:

Using the auto loan payment calculator is so simplistic and uncomplicated. You simply enter total months you want to repay the auto loan over. Next, you enter the interest rate that you are expecting to qualify for. If your credit score isn’t so well, add extra points on the rate to make sure your car loan estimate is accurate. Finally, type in the dollar amount you want to borrow, including monies for sales tax and registration fees.

After all your information is entered – hit calculate. Walla, the auto loan payment is calculated and on the screen right in front of you. If the auto loan payment is too high for your budget go back and change the loan terms until you are comfortable with the monthly payment that appears.

All consumers should use the LotPro.com finance calculators before they visit a dealership and start looking at cars to buy.  They provide car buyers a quick way to know what price range should shop at to ensure they can afford the payment each month.