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Vehicle financing online: How to get Pre-qualified

Posted on April 25, 2012 by Carlyn Driver

Before you commence shopping around for either a used or new car, it is important to secure financing in advance. One can easily get pre-qualified for vehicle financing in a bid to hasten the procedure of purchasing the car. Here are some essential tips that can assist one in identifying the most suitable vehicle financing online.

Vehicle financing Pre-qualification Information

Anyone can get pre-qualified for an auto loan. The typical car buyers usually secure car loans after they have already selected the car that they would want to own. In such a situation, the dealership submits the loan application through another finance firm. This company can either approve of reject the loan application. A large percentage of auto loan applications are approved by these companies. This is mainly because the funds issued out are protected by the car. However, finance firms and dealerships usually charge higher rates for those with poor credit ratings. This makes it important for one to secure his or her financing.

The pre-qualified vehicle financing option is beneficial in the sense that that amount is based on the applicant’s income and other costs. Therefore, one is well aware of the sale price that is comfortable enough for his or her budget. Once one has a pre-qualified financing amount, the next step is to start shopping around for a vehicle.

How to get Pre-qualified for a vehicle financing

There are a good number of strategies that one can use to get pre-qualified for vehicle financing which are listed below: • Good credit rating- the loan options for those with good credit scores are numerous. • Consider dealing with banks and credit union since they offer better terms as compared to finance companies.

Those with poor credit scores can only obtain pre-qualification from specific lenders who are commonly referred to as sub-prime lender. The best place to identify such lenders is online. Once one accepts the pre-qualification offered by the lender, he or she should expect a letter. However, this letter is not a guarantee for getting a loan.

5 Car Loan Myths Exposed

Posted on December 6, 2011 by Carlyn Driver

Perhaps you’ve heard some things about car loans from a good friend or family member. You may have even read a few things about auto loans that just don’t seem true. There are a lot of myths about car loans and this list will set the record straight.

Sticker Price/Full Price
Drivers purchasing an automobile don’t have to get a car loan for the full price of the car. In fact, it behooves many motorists to put down a sizable down payment to lower monthly payments. Also, a driver can get a better car loan rate with a reasonable down payment.

Pre-Owned/Used Cars
Getting a loan for a used car is just as easy as getting an auto loan for a new car. A car does not have to be new to get a loan. Any lender, whether a bank, credit union or in-house dealer financing can determine the true market value of any vehicle, new or used.

Perfect Credit
Many buyers fret at the thought of getting a car loan without having perfect credit. In fact, 60 percent of American consumers don’t have a score of 750 or more, according to Bankrate. You don’t need “perfect” credit to apply or even qualify for a loan. There are many things a driver can do to get a loan and/or a better rate.

Refinancing
Many drivers purchase a car, pay the loan over five years and never think about refinancing to get a lower rate. Interest rates change. Moreover, the less you owe on the car, the better your refinancing terms will be.

Homeownership
Contrary to conventional wisdom, a motorist does not need to own a home or be paying a mortgage to get an auto loan. Though making mortgage payments may help your credit history, you don’t need to own your own place.

New Car Loan Options

Posted on November 21, 2011 by Carlyn Driver

new car loan New cars often come with many attractive offers, such as interest-free financing or a cash rebate. Consumers should carefully compare these options to choose the best for themselves.

First of all, consumers need to have a good or an excellent credit score to take advantage of these offers. Score requirements vary. A consumer must have a score of 700 to qualify for some offers. Others may require at least a score of 630 or 650. Today, consumers may have difficulties qualifying for such deals, as many of them have seen their credit ratings decline during the tough economic times. Those who qualify will need to do some calculations to find the best deal.

If you are looking for a low monthly payment, avoid the interest-free financing offers. Interest-free loan length is usually 36 to 48 months. Depending on the loan amount, the monthly payment amount can be twice as high as a payment on a 60-month loan at a current interest rate. If you can afford a higher monthly payment, interest-free option gives two advantages. First — the obvious one — you are not paying any interest. Second, you will pay the loan off much faster.

If you are considering between taking a rebate and the interest-free financing, do some calculations. Cash-back options sound very attractive, but aren’t always a great deal. Most rebate offers range between $2,000 and $3,000. On occasion, you may find a $5,000 rebate. The rebate and your down payment will reduce the total amount of the car loan. Then, calculate the total amount of interest you would pay if you financed it at the current interest rate for the same period of time as the interest-free loan. An online interest calculator can do the job for you. Add the interest amount to the price of the vehicle. You may be surprised to see that taking an interest-free financing may be a better deal. Forgo the rebate option, unless the cash amount is higher than $2,000-$3,000.

Things to Consider Before Getting a Used Car Loan

Posted on November 11, 2011 by Carlyn Driver

With the car prices continuously increasing, consumers need to finance all or part of a vehicle purchase. When financing a used vehicle, the key is to get a low interest rate. Used car loan interest rates depend on several factors.

Car loan rates vary widely among financial institutions. Bank interest rates for used auto loans depend on a consumer’s credit rating and the year of the vehicle. The higher your credit score is, the lower your rate will be. Banks are reluctant to finance older cars with low values. It is a high-risk investment for them, therefore, if they provide financing, the rate is likely to be high. Compare interest rates from several banks before buying a car.

Usually, credit unions offer lower interest rates on used car loans when compared to banks. They also may offer the same rate for new and used vehicle loans, regardless of your credit rating and the vehicle age. This is the best option for consumers who are purchasing older vehicles or have a lower credit rating. Compare credit union interest rates and membership requirements when shopping for a used car loan.

Before buying a vehicle, find out what your credit score is. If your credit score is low, a lender may ask you to get a qualifying co-signer before she can approve your loan. Talk to your friends and family members to see if anyone would co-sign the loan with you. If you credit score improves within six to twelve months, and you have a good payment history, the lender will consider refinancing your loan to release the co-signer of the obligation.

Before making a commitment to buy a car, consider the amount of a down payment you can to make. Lenders rarely finance the full value of the vehicle and require between 10 and 20 percent of purchase price as a down payment. A down payment also lowers the financed amount and gives your in a lower monthly payment.

How To Get A Car Loan

Posted on November 10, 2011 by Carlyn Driver

Your old car broke down and needs to be replaced, or maybe you decided that it is time for an upgrade to a newer model. You might have the cash on hand, but if not, you are going to need a loan to cover the cost of the car. How does one go about getting a car loan?

Credit Score

The biggest thing you need to worry about is your credit score. The higher your score, the better chance you have to score a loan at a lower interest rate. You can check your credit score for free through various sources, and have your loan approved online before you even get to the dealership. You can expect an interest rate of anywhere between 3-6 percent on average.

Choose Your Lender

You can get financed by the dealer, a bank that that the dealer works with, or go to your own bank or credit union. The goal is to get the best deal possible. You want the highest loan amount you can afford with the lowest interest rate. It is often easier to get a loan if you have down payment, or a trade in.

Length Of Loan Makes A Difference

Most lenders are going to give lower interest rates on shorter car loans. This is because the lender will see their money back faster. Longer loans tend to have higher interest rates and cost more in the long term. The average loan for a car is 60 months, but they can be longer or shorter depending on your needs, or incentives given. Your lender may also impose restrictions on the length of your loan depending on your credit history.

Once you have your credit score, found a lender that is willing to to loan you the money and have signed the paperwork, you are free to drive off in your new car.

How to get an online car loan: useful tips

Posted on November 10, 2011 by Carlyn Driver

Many assume that getting an auto loan online is difficult. However, this is far from the reality since there are several online companies that have simplified the loan application procedure significantly. Today, people are more informed about the factors to consider when looking for an online car loan. Those trying to secure such loans should ensure that they are properly armed with all the information needed to simplify the process and also make sure that they get the best deal possible.

There are some tips that one can use in order to get an online car loan which are mentioned below:
• Do not overemphasize on the issue of payments with the sales person
• Consider the rates of interest since different companies will change varying rates
• Make comparisons of the offers being provided by different lenders
• Research on different companies online
• Ensure that you ask questions on all charges and fees so as to avoid situations when hidden charges become imminent when the contract is already in force
• Before signing for any loan, it is advisable to read the terms and conditions carefully so as to avoid making a misinformed decision. Where you need clarity, feel free to ask.

Most of the online lenders have a very efficient loan approval system. Within a few minutes one can be informed on the approval status of his or her online car loan.

Before one considers getting an online car loan, a credit report should be strained from the credit bureaus. In case your credit score is low, you may not be in a position to get a good interest rate. Most of the low interest online car loans are issued to those who have a credit score of 600 and above. One should ensure that he or she makes comparisons of the different offers that are available in the market.

Best Locations to Buy a Car

Posted on November 6, 2011 by Carlyn Driver

In buying property, realtors will often say that the three most important things are location, location, and location. However, you might be surprised to find out that this philosophy also applies somewhat to buying a car as well. If you are thinking about buying a car and are willing to travel, there are definitely deals to be had in certain cities. For example, in the Orlando/Tampa area, cars tend to average about 10% less than the MSRP. Other cities worth looking at include Washington DC, Atlanta, Newark, and Los Angles, all which normally have car sales prices of 9% less than MSRP.

If you’re thinking about travelling to buy your next vehicle, it’s important that someone local is available to help you do the shopping. Have a friend or relative take the vehicle out for a test drive. Even better, if the car is used have them take it to a local mechanic to give it a once-over.

If you want to get a good deal but a longer road trip isn’t possible, consider going to the outskirts of the city where you live. Often dealers on the outer edges of metropolitan areas have lower prices because they have to compete with dealers in more convenient locations. However, don’t get too remote! Dealers who are in rural locations tend to have higher prices because they have less competition.

Remember that even if you choose to buy remotely, you can still finance locally. You have the option to obtain an car loan from a third party, such as a financial institution, and then take their check to the dealer or seller. Because you’ll be approaching them as a cash buyer, you might even be able to negotiate a lower price.

There is the additional expense of the trip, hotel stay and food expenses to consider when buying remotely. However, you may find it is worth spending a hundred or two to save thousands. Online websites are your best friend when shopping for cars in a different city. Do a little digging and see what treasures you can find! You may be surprised at what kinds of discounts are available.

Don’t pay “delivery charges” at the dealer

Posted on October 25, 2011 by Carlyn Driver

At the dealer used cars Once a driver has a car loan in hand, they’ll be able to walk into a dealership with cash in hand, increasing their purchasing powers. With that in mind, drivers can negotiate with dealers in order to knock down the prices on some vehicles.

When a driver settles on a used car, they’ll have to sign some paperwork. Before a driver signs anything, however, they should look over all the charges carefully. There are many fees that must be paid – destination charge, tax, title and license fees. However, there are a few others that may be open to negotiation, according to cars.com.

While a driver must pay a destination charge – this is charged by the automaker, not the dealer – they don’t have to pay any “delivery charges.” These are usually tacked on with the destination charge and are usually bogus. Some dealers even call these “destination charges” as well. Buyers should look up the destination charge for the vehicle they’re considering online. Most brands have a website where drivers can enter their zip code and find out exactly how much it will cost to ship the vehicle there – and not settle for paying a penny more.

Avoiding hidden charges

Posted on October 21, 2011 by Carlyn Driver

Avoiding hidden charges After a driver has their car loan in hand, they’ll have the ability to negotiate with the dealer a bit. Dealers like it when drivers pay cash because it means a quick injection of funds rather than money over time from financing. By securing a car loan through a third party before hitting the showroom, drivers have an extra incentive for dealers to make the sale.

This means that buyers have a bit of negotiating power when talking with the dealer. One of the ways that dealerships make extra money is through bogus surplus charges tacked on at the end. Not all the charges are unscrupulous – some, like a destination charge, title and tax are legitimate. Others are open to negotiation.

According to cars.com, the “document or conveyance fee” is often about $50, and is said to cover the cost of “paperwork.” While car agreements are certainly lengthy, they certainly don’t cost $50 to print. Drivers can usually get dealers to take this off.

Another possibly suspicious charge is a “prep fee.” While sometimes the dealer will do work on a car to get it ready for sale, this number can be heavily inflated. Drivers should ask the dealer to break down the costs piece by piece to make sure they’re not overcharged.

Negotiation strategies at the dealer

Posted on October 18, 2011 by Carlyn Driver

How to negotiate at the dealer Once a driver has been approved for a car loan, they still have to go into the dealer and negotiate the price of a vehicle. Often, this process makes consumers nervous and ends up costing them money in the long run, as dealers can make a lot of money off of extras and hidden charges.

Yet drivers can save money by keeping a level head and maintaining a cool disposition. There are many things that buyers should research before they go – dealer incentives, when new models are coming in, and best times to buy, as all of these can affect the final purchase price. They should also be sure that they have their car loan taken care of, as securing financing beforehand ensures that they avoid the financing room at the dealer, where car loan rates can be confusing and various extras can get tacked on quickly.

But more than being up to date on offers and pricing, buyers can help their case quite a bit simply through their attitude. According to Cars.com, remembering to relax can be especially helpful. Even if a driver knows that the car is the one he or she wants, the dealer doesn’t have to know that.

Another thing that news source recommends is to be aware of one’s appearance. Salesmen are smart and they deal with hundreds of customers a day. Rolling up in a high-end vehicle and nice suit will not help him buy a low-ball number.

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