Showing posts about "financing"
After air, food and water, cars are the next necessity for surviving in America. Yes, all car lovers will be in sync with this statement. But, cars are getting expensive day by day which makes auto loans indispensable.
As always, many loan options are available for car buyers with good credit score. Now, do borrowers with an imperfect credit history have the same choice? Sadly, they are not offered loans by banks and other stringent lending institutions.
Why do lenders discriminate car buyers on the basis of their credit history? The answer is simple. Credit report manifests your pattern of availing credit and paying it back. It helps them decide whether you are a risky proposition or not. When you haven’t paid your loan in the past and have a bad score, there are chances you won’t pay now. This is their logic to deny you loan.
When you have a no credit score, lenders don’t have any precedence to judge you. You may make the payments regularly or you may not. There is a sense of uncertainty which makes you perilous. The case is worse for someone with bankruptcy. When you are declared insolvent and your property is used in repaying debt, your credit-repaying ability is greatly damaged.
But, all this was your past. It should never affect your present, right? If you have a bad credit score, does that mean your car dream is shattered? Will you never be able to buy a car if you have a zero credit history? When you won’t get an auto loan after bankruptcy, will your chances of improving your credit dwindle?
Your Ray of Hope
Well, you need not worry about all this anymore What if I tell you that you can buy your car and get a car loan from one single place? Yes, auto dealership is the place that provides you one-stop solution for all your car needs. You can get loans irrespective of your credit situation. This is perfect choice for improving your credit score.
Most of us shy away from dealership financing because of scams and other con-stories associated with dealership. But, you must know that dealers are like other businessmen. If they don’t keep their customers happy, they are going to ruin their business. So don’t write off dealership. Instead just stay a bit cautious and get the most of dealer financing.
Why Dealership Financing Is For You?
1. Dealers often offer 0% financing for the first year and several other schemes which can lower your loan cost.
2. Auto Dealership addresses all your car needs. Not only financing, repairs can also be done at the lot. This means you don’t have to run around for several things.
3. Lenders want you to provide vehicle information like manufacture year, make and model, VIN, etc. before finalizing the contract. But, when you are getting your loan from the dealer’s lender, this process will be done much faster.
4. As dealers have tie-ups with many lenders, you get to check several lenders in one go. This makes comparison easy and also lets you take a perfect decision.
5. Lenders get large amount of business from dealers. As the dealer has a huge network, there is high competition among lenders. So, you get special deals at the dealership.
6. There are many lenders in the dealer network. High means you get great rates and flexible loan terms.
7. When you avail a loan from a dealer, you get to keep your local lines of credit open. It is obvious that a bank or union won’t offer you another loan in a short span of time. So, dealership auto financing seems like a good alternative.
What Are The Requirements for Getting Dealership Auto Financing?
1. You must at least earn $1,000 per month.
2. Your employment term should be at least six months.
3. You must be living at your residence for at least six months.
4. Dealers do offer no down payment auto loans but to get maximum advantage of low rates, it is advisable to get at least 10%-20% down payment.
5. A co-signer can also work wonders for your loan application.
All these requirements are very easy to fulfill and are not very rigid. Because of less stringent approval criteria, dealership financing is a blessing for borrowers with credit issue. So, next time you decide to buy a car, think of dealership finance.
Cars are not just a materialistic invention anymore. They are part of us and we absolutely love them. Americans are extremely emotional towards automobiles. Owning that perfect car is everyone’s dream but not every American has the privilege to fulfill it. And, what acts as an obstacle in buying that perfect car? Bad credit - It’s one of the most dreaded situation in the world of auto financing.
People have faced their worst financial fears in the past few years. There have been lay-offs which have made regular payments difficult. All this has resulted in bad credit scores. A poor credit score guarantees high interest rates and unaffordable monthly payments. This means you never get to satisfy your car requirements. But, it’s time to say good-bye to these troubled times. Dealership financing is a ray of hope for troubled credit borrowers. Dealers understand that people are unable to purchase a car through credit unions and banks. Demand for bad credit loans is ever increasing and it makes sense to offer such a loan type. If poor credit is your story, dealers can help you.
Dealers and Finance
In dealership financing, dealers don’t finance your car. They act as an effective link between lenders and borrowers. They have a network of lenders and banks and this network provides car loans. Also, dealers work with car manufacturers’ “captive” finance company. This means you have greater chances of availing a bad credit auto loan because of several options.
How Can You Benefit From Dealership Financing?
When you have a bad credit score, lenders consider you very risky. They don’t want to lose money and so, shy away from offering car loans. For a poor credit borrower, a dealership can be a great option. Other than this, there are several other advantages when it comes to getting a loan from dealers.
1. It is quite simple and a rather quicker option.
2. One stop shop solution for all your car needs.
3. Tie-ups with several lenders mean easier car loans.
4. Owing to stiff competition, dealers offer several low-rate programs.
5. Banks have stringent lending rules and it may act reluctant in future for another loan. But, if you opt for dealer financing, your car is used as collateral so you get to keep your credit options open.
6. Lenders ask for detailed information about the car. But, as the dealers know about their own lot, undue scrutiny can be avoided and you won’t be required to give all the tiring details.
Precautions to Avoid Any Frauds
Dealership financing is often considered a sham to con borrowers. But, not all dealers cheat borrowers. They want to continue business and satisfying their customers is the only way to remain in business. Interest rates would be high because of your bad credit history, but by no means unfair.
Not every dealer will con you, but it is always important to be careful. Solve your doubts every step of the way. Understand each and every aspect of the deal. If you are not confident of the loan contract, take legal help. It’s always better to be clear from the beginning.
So, be cautious and get that car you always wanted with the help of dealership financing. Your automotive dream should no longer be left to fate. Don’t suffer because of bad credit history because your future looks great with car dealer financing.
Modern technology has gifted man one of his greatest passion – cars. Ever since the invention of steam engine vehicles in 1769, cars have been popular. Everyone is just floored by the beauty of a car.
Sadly, buying a car has become difficult. All thanks to high purchase prices of these beauties. Most new cars start from $20,000 and a good used car is also expensive. Also, the gas prices are increasing which makes car buying very hard.
The economy is reviving and people have just started getting their jobs back. Finding a high income job is still a challenge. This creates a very bad situation because a car is needed to reach your work place but you cannot afford it with your job. Lenders have understood this situation quite well and that is why auto loans for low income borrowers have been introduced.
Most lenders require you to earn at least $1,500 per month. But, you can avail these loans even if your income is as less as $1,000. Now, don’t worry if you earn less than it because there are many other factors which decide your approval. Know them so that you can tackle them well.
1. Credit Score - Higher the score, better it is.
2. Credit Profile - Here the requirement is that it should be longer.
3. Term of Loan - You should try and keep it short.
4. Loan to Value Ratio - 70% -80% is optimum.
5. Down Payment - 10%- 20% would improve your chances.
6. Employment Term - At least six months.
7. Time at Residence - You need to be living at the same residence for at least six months.
8. Co-signer - Having a co-signer reduces lender’s risk.
When you have a low income, you must be better at these aspects. Now, it is quite possible that you have a bad credit score and earn less. For such a situation, get a larger down payment and search for a co-signer.
Now, as you have low income, it is essential that you don’t go for a very expensive car. If you go for an expensive car, its payments would also be huge. To avoid them, you will have to go for an unnecessarily longer loan term. This will increase the chances of an upside down loan. Hence, a used car is your answer. Once you improve on your income, you can always buy your dream car. Right now, it is important to get you a car that works for you. When you go for a pre-owned car, don’t forget to read the Vehicle History Report. It’s always good to know what you are getting into. Also, get the Odometer Disclosure Report because few lenders do ask for it.
Applying for low income auto loans is simple because you don’t need any additional documents. The only important thing is to prove your income. For that, you can use your recent pay stubs. If you are self-employed, it is important that you provide your IT details to the lender.
Low income auto loans are easy to get and a boon to those who are struggling with low income. So, don’t wait anymore. Cars are a necessity and it’s time to fulfill your car needs. Avail them and get ready to ride comfortably in your car.
What America drives, drives America. How true! Each one of us is extremely passionate about the four-wheeled invention. From the humble beginning in 1907, to the sleek cars today - cars have come a long way. Manufacturers keep launching new cars every year and we absolutely love to drive those beauties on street.
The New Car Prestige
Most of us search for a chance to replace their clunker with a brand new car. A new car means reduced maintenance cost, warranty coverage and more importantly, peace of mind. Moreover, there are higher chances of buying a junk and salvaged used car.
Buying a new automobile is fulfilling the ultimate American dream in true sense. A new car means you have established yourself and are now responsible of making a huge financial commitment.
Now’s The Time
New Year means several auto shows and new car launches. The Year has ushered in good news for the auto industry. The sales are anticipated to go higher than last year’s 12.8 million. Higher car sales mean many are replacing their aging automobiles. Be one of them and get ready to chuck your old car for a new-flawless beauty. If you are concerned about high cost of financing a new car, here’s a comprehensive guide to help you buy the car of your dreams.
Money-Wise For a Wise Decision
A mark, a yen, a buck, or a pound is all that makes the world go around
One can understand the importance of money with this Liza Minnelli song. Yes, money is important when it comes to buying a car. Although car loans will do their magic, you should have some amount for making a decent down payment.
Ascertain your affordability. You must understand that when you set out to make a major financial decision, you must be ready with everything. Prepare your budget. Deduct all your expenses and current loan payments from your gross monthly income. You must consider all the major future expenses like college fees, marriage, holiday trips, etc. If you have a balance enough to make easy car loan payment, only then think of buying a car.
While deciding on monthly payments, you must not forget all the car-related expenses like fuel, maintenance and insurance.
Buying a new car is an important rite of passage for us. It is very crucial investment decision and you don’t want to lose your hard-earned money. So, even though it is rather tedious, it will definitely help you to narrow down your choices.
Once you know your affordability, start scouting for an auto loan. A new car is certainly more expensive than a used one and you must sort out the finance before going to the dealer’s lot.
You have many options for availing finance. Dealership financing, credit unions and banks are the traditional options. Most banks have stringent lending criteria and you need to be a member of the credit union to avail finance from them.
You can also go for an online auto loans. Most buyers opt for it because of the convenient lending process. You will have to fill a simple application form for a new car loan and that’s it. Your work gets over there. These companies will search for a lender in their network and help you get the best deal.
While going the online way, you must take care of your data’s safety and security. Check the company’s security certificate and ensure its reputation.
What Factors Will Determine Your Approval?
Your credit score is not the sole reason of your approval or rejection. Here’s a list of all the variables involved:
Your credit profile should be for longer term. Along with a stellar score, it is important that you have a credit history of at least two years.
As the cost of a new car is high, be ready to make slightly higher payments. Most auto lenders will want you to earn at least $1,000. Pay stubs or W-2 forms can help you to prove your income.
It is essential to have a stable income source. If you are constantly switching jobs, lenders won’t trust you. You must be working at your current employer for at least six months.
Time At Residence
Most lenders want to know if you have a constant place of residence. It allows them to know if you are regular in paying your utility bills. Lenders will ask for a copy of utility bills.
It is the initial upfront amount that you pay while buying a car. A larger down payment will reduce your loan amount.
Having a co-signer will make a huge difference to your approval chances. A co-signer will assume the responsibility in case of missed payments.
Once you get approved, the lenders will contact you. Most financing companies have a network of lenders as well as dealers. So, it may happen that a dealer will offer you financing options. You must take this as an opportunity to build your credit score.
You Deserve the Best
It’s your time to judge the best auto loan quote. Look for APR (Annual Percentage Ratio). It will tell you the exact cost of loan including all the fees and charges. Also, consider the loan term. Longer the term, higher is the chance of ending up with an upside-down auto loan. Repayment terms, prepayment penalty, repossession terms, etc. should be considered in advance.
After your application is approved, choose your dream car. Select the one that really fulfills your needs and suits your style. Don’t forget to read reviews and also consider manufacturers’ incentives.
Here’s wishing that you get your perfect new car. Take a wise decision and enjoy your charming and elegant beauty on wheels.
Every car is much more than a four-wheeled automobile. It’s owner’s glory, passion and a source of great admiration. Yes, a car is not just a means of transportation. It’s America’s pride and its ultimate ecstasy.
When one sets out to buy a car, several things are to be considered. Most people have an idea of what car to buy. But, there is confusion and dilemma when the topic of car loans comes up. This article will give you a detailed understanding of the many auto financing options available with you.
>> Money Before Everything Else <<
It is so true. You cannot venture out for buying a car when you have no idea about your finances. If you think car loans are going to do everything for you, think again. You will have to manage down payment and also ensure regular payments. Car loans are just to provide ease in buying.
Finding that perfect car loan requires you to carefully put together all your income and expenses and then preparing your budget. You will have to consider your savings and choose something that will not give you financial trouble.
>> A Plenitude Of Options <<
Everything depends on getting the information that suits your situation. So, don’t settle for the first financing option you get. Don’t just stroll into your local dealer’s office or your neighborhood bank. You must first do a complete research and analyze your condition and needs.
To help you make a good choice, here’s all the information about car loan types. Check out all the advantages and disadvantages of every option. It will help you make a wise decision.
>> Dealership Financing <<
A car loan with a car from the same yard- seems too alluring to ignore!
Most Americans choose dealership financing because it offers a one-stop solution. Dealers offer loans for new as well as used cars. You must know that most dealers are link between you and the lender. Such dealers won’t themselves lend you money, instead will sell you loan application to lenders.
This option is convenient but make sure that dealer is not charging a high interest rate. For that, you must research and be wary of any red flags. Also, don’t opt for any add-on if you don’t feel their need. It will help you reduce the cost.
>> Personal Loans <<
Banks and financial institutions offer loans for almost any purpose like buying a personal item or even a holiday trip. You can avail personal loans for buying your dream car. Now, this type of financing is useful when you need a loan for a smaller amount like $15,000.
>> Car Leasing <<
This is another option for you. When you lease a car, you only pay for the cost of using it. The biggest advantage with leasing is that your monthly payments will be significantly lower than the usual car loan payments.
You don’t have to worry about down payment and the lease agreement will get over in two-three years. You always have the option of buying the car at the end of lease agreement.
When you go for lease financing, don’t forget to negotiate the car price. Most buyers think that one must pay the full sticker price which is wrong.
>> Equity Loans <<
If you are one of those few lucky people who have sizable assets like a house, you can go for equity loans. You can avail a home equity loan by using your home as collateral.
Although the rates are lower and the interest is tax-deductible, there is the risk of losing your home.
>> Credit Cards <<
Though it may sound unusual, but there are many who opt for this method. A credit card can help you buy a car for a smaller amount like $10,000. You must have a low-interest credit card. With large competition, getting a low-cost card won’t be a trouble for you.
The only thing is that you will have to restrict other purchases on your card. Also, most credit card companies charge a 3% processing fees. If you are sure of paying this charge to the dealer, go for it.
>> Car Loans <<
This is as popular as dealership auto financing, if not more. In this type of loan, your car is used as collateral against monthly payments.
It is very good option if you make regular payments. The only thing that you need to keep in mind is that you won’t be able to finance a car older than six/seven years.
>> Online Car Loans <<
This type is just the blend of car loans and the internet. With technological advancements, you can get everything on the net and car loans are no different. Online lending companies have a large network of lenders and dealers who bid for your application. All you need to do is fill a simple online application form.
As there is a wide network, getting a loan is relatively easy. Also, the convenience of availing a loan without moving out of the house is very tempting.
You should only be concerned about the company’s reliability. You can check the website’s safety by going through their security certificate. Don’t go for a company that charges for loan quotes because there are many reputable sites that offer compare auto loan quotes.
How To Choose That Perfect Car Loan?
Just go over with a fine-tooth comb.
Once you decide on the type of car loan and apply, it’s time to scrutinize the loan quotes. Loan payments are important but it shouldn’t be the soul of your decision. There are several factors which are equally important. Before you rush to your decision, take a look at these variables.
Your loan term will have a huge impact on your loan. A longer loan term will mean that your monthly payments are smaller, but you may eventually be paying more interest rate. It is advisable that your term should be in accordance with the useful life of the car. Your loan should get over before the life of car to avoid the risk of an upside-down loan.
Interest depends on factors like the loan amount, loan term, credit score, financial condition, etc. One important tip to lower loan rates is by making a substantial down payment. This will reduce your loan amount and also instill a sense of faith in the lender.
The Annual Percentage Ratio will tell you about the total cost of the loan including all fees and charges. Most borrowers consider just monthly payments. But, it is impossible to compare different loan quotes with different loan terms. When you compare two loan quotes with the help of APR, you are taking into consideration all the variables.
You must compare loan quotes on the basis of the clauses in the loan agreements. Few lenders prohibit you from refinancing your car loan for the first few months. Some lenders also offer zero percent financing for the first few months only and then charge a floating interest rate. So, check for such clauses which may cause problem in the future.
Charges And Penalties
Check the loan contract for origination fees, annual charges, prepayment penalty and penalty for missing out on a payment. Choose a lender that has lesser fees and doesn't charge you for making early re-payment. The latter will be useful if you decide to refinance your loan.
It is important to know whether you are supposed to make payments weekly or monthly. If you can afford monthly payment, don’t consider any other option. This is so because it will give you the choice of making regular payments without any undue financial restraints.
Once you compare auto loan quotes on these factors, you will definitely get a winner. Choosing your car loan by this method may take time but what matter is the ease in making payments. Every factor is important in making your life simpler and your car buying experience more pleasurable. So, memorize these important tips.
Owing a car is a dream for many, but one who takes a wise decision can fulfill it in true sense. Car loans won’t be a trouble if you consider your needs and financial condition. Remember a good decision comes with a thorough research process.
A car loan is a very crucial decision and you need to choose the best. Get your perfect car loan with ezautofinance.net. Our wide coverage and a huge network of auto lenders allow us to give you great choices. Apply now and open doors to huge car loan opportunities.
All the best for choosing the best!
Your cousin is selling his Impala that you always loved or you have found a perfect car on Craig's List. Your colleague is thinking of selling his Altima or your neighbor is putting up his Malibu for sale. You can now buy any car with private party car loans.
It is great to buy a car that has a history. Would not you want to buy a car that has a story behind it? Private seller car loans will be useful when you purchase a pre-owned car from an individual instead of a dealership. This means a licensed car dealer is not involved. These loans were easy to get in the past but since the tightening of lending criteria, availing private party car loans has become a bit difficult.
Lenders are wary of financing person to person car loans. Why? A private party sale increases the lender's risk as there is no dealer to provide warranty after sale. Also, no repair services will be offered. There have been cases in which borrowers have fraudulently inflated the price of the car and got more than their car's worth. So, lenders do not want to risk their money by spending it on a risky proposition.
Do not you think this is harsh? Just because some random people committed frauds, you should not be the one to suffer. I believe that if you have chosen your car, you must be able to buy it without any problems. If you decide, then no one can stop you. So, here are some tips that can help you get private party auto loans.
How Will You Pick Up The Tab?
When you are sure about buying a car, you must know how much you can spend on a car. In addition to the price of the car, remember to factor several other costs like State tax, Title and License fees, registration, insurance, fuel, maintenance, etc. If you think you can pay these expenses, then it is a right decision to get auto loan.
Make Sure you are Not Buying Pandora's Box
Many buyers gleefully purchase someone else's problem. The owner is selling you his prized possession and it is crucial that you find a reason to it. Also, you must be very alert when choosing your car. If you have seen your neighbor's car breakdown almost every month, then there is no point in thinking about it. If you have heard negative remarks about a car, you must not buy it.
Whenever you decide to buy a car, be assured of its quality. It is essential that the car is running well. Carefully check the car for any fault. Now, you should not trust the seller to tell you all about his car. So, what you can do is get the car's VIN. There are several websites like Carfax.com and AutoCheck.com that help you check VIN. You will be able to know if the vehicle is salvage, stolen or recalled. After that, ask your mechanic to inspect the vehicle.
Knowledge Has It All
Once you are sure, it is time to search for a loan. You must know that as it is risky, lenders may charge a high rate of interest. But, you can combat higher rates by knowing all about this loan type.
Bill of Sale is essential for any loan. So, make sure that you complete all the documents. It will validate your sale which will ensure the lender of a legitimate transaction.
1. You must be at least 18 years old to apply for auto loans. If you are not 18, your co-qualifier should at least be.
2. You must have a valid SSN.
3. You must at least earn $2400 a month. There will always be companies that will require less than that but this is the general average.
4. You must have been residing at your current home for more than six months.
5. You must be currently employed with your employer for at least six months.
6. The lenders also want that you should not have any open bankruptcies.
When it comes to private party lending, lenders want your selected car driven for at most 80,000 miles. It should not be older than six years. Your minimum loan amount should be $ 7,500.
How to Assure Your Guaranteed Approval?
The Down Payment
Whether it is private party or for that matter any other financing, down payment can really up your approval chances. When you make a down payment, you lower the loan amount. This reduces the lender's risk and so, he will readily approve your application.
When you ask someone with a decent credit score to co-sign your loan agreement, lender's risk gets divided. If you do not make your monthly payments, the lender can hold your co-signer responsible. This ensures safety of money which helps you in getting your loan approved.
Will The Internet Help?
Internet has opened new vistas for Americans. Now, you have the option of availing auto loans without the leaving the comfort of your home. There are several websites that will cater to your needs. But, you need to be careful in selecting the company. It must be a reputed one and should be lending in your area as well. Check the security certificate also.
If you are a bit of cautious, then getting auto loans will be easy for you. So, do not wait anymore. Live your dream car with private party auto loans.
"Make the most of yourself, for that is all there is for you". - Ralph Waldo Emerson
All the Best!