Receive updates via EmailChoose a Car Loan Wisely
After a house, the purchase of a car would, for most people, be deemed as the second most expensive personal investment. With that in mind, it cannot be overemphasised that it is important to choose a car loan wisely. How then do you find the best rate for a car loan? The key to this is diligence.
Firstly, consider your monthly income and your current liabilities – eg. loans, rentals, transportation costs, food, entertainment, insurance, etc. Make a conscious effort to put aside a sum of money each month towards savings or investments. Then, look at how much you have left to finance a car loan. That would give you an indicator of the type of car you can afford to purchase.
Apart from the usual monthly car loan repayments, you must also factor in other payables such as motor insurance, petrol or diesel, taxes and maintenance costs. You would not want to stretch your finances too thin every month resulting in your inability to save money consistently.
Once you are clear on your estimated funds availability to service your car loan, it is time to go hunting for a car loan. Finance companies and banks usually impose a higher interest rate for car loans for used cars compared to new cars. This is usually due to the risk and potential resale value. An unsecured car loan would also attract a higher interest rate compared to secured car loans.
The cost of borrowing would be lesser for a shorter loan tenure. Ask yourself if it is necessary for you to stretch your car loan repayment for up to 7 years or if it would be possible for you to manage payments within 3 or 5 years. You would be surprised at the potential savings on interest rates by having a shorter tenure.
Finally, compare the rates offered by the various finance companies based on similar terms. By using like for like comparison eg, secured car loan at 5 years for a new car, you would be able to obtain the interest rates quotation from the various finance companies for you to make a decision on.
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50 Responses to “Choose a Car Loan Wisely”
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Things are going to crash and car manufacturers are holding on to as many assets as possible. If they lease now they may never get that vehicle back.
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Great video to show folks exactly what they need to do….
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Published a new post: car loan refinancing
It should not be a problem as long as the loan is of a type that is allowed to be paid off in full before the full term. Some loans only allow a certain percentage to be paid off early and/or may charge a penalty. Check the loan agreement or talk to the lender.
If you have a bad credit history still the loan market place is full of lenders who are ever willing to offer you a fresh loan. But you should be meeting some conditions laid down by the lenders. Loans for bad credit people are in fact easier to get then they were ever before, thanks mainly to cut-throat competition amongst the lenders. Lenders are giving loans to the bad credit people who have late payments, payment defaults, arrears, county court judgments or any credit problems. These loans are available for any purpose like home improvements, purchasing a new or used car of your choice, for wedding and holiday tour, debt consolidation or for paying child’s tuition fees.
Every lender in approving loans surely likes to see if the bad credit borrower has sufficient capacity to repay the loan in timely manner. If the borrower earns well, has regular bank balance, has been an employee for some years and has a convincing loan repayment plan in place, then the lenders do not usually hesitate much. So ensure that you have adequate repaying capacity before applying for a loan. Also, you should first check your credit report for any errors. If your credit score is too low then you would be charged a very high rate of interest. So it is advisable to first pay off some easy debts to improved credit score and then you should apply for loan at better rates.
http://loan-house.we.bs/badcreditloans.html
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Yes you may take but spend some time to read useful tips in
Really Nice Info!!!!
Article by at 2010-07-10 10:45:50
Categorized in Mortgage Rates,
funny place to park a car-did a woman park it?
Auto Finance – Car Loan
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The banks still aren’t lending, I went to look for a car and the dealer processed the loan application and I was denied because my score was not high enough and my credit is good.The dealer told me that he would give me 4k off the price if I paid in cash.
Article by at 2010-07-13 19:17:02
Categorized in Refinancing Calculators,
Article by Real Deal Neal at 2010-07-16 13:28:25
Categorized in mortgage finance,
Bad credit car loan Texas is the best option for people to clear off pending balance and look out for a new vehicle. Texas car loan options are available for people willing to purchase a vehicle urgently to meet day to day travel needs.
You stay unaffected since the car is in your name and she's only a cosigner.
Article by at 2010-07-14 16:35:52
Categorized in Auto Loan,
The banks still aren’t lending, I went to look for a car and the dealer processed the loan application and I was denied because my score was not high enough and my credit is good.The dealer told me that he would give me 4k off the price if I paid in cash.
LOL whose car
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Article by at 2010-07-14 13:00:16
Categorized in Vehicle Refinance,
How A Vehicle Name Finance Loan Functions | Car Search: A single way of obtaining emergency money is via a vehicle…
Getting A Car Loan With Bad Credit Is Easier Now! | YodZiaN.CoM …:
i wanted to thank you from the bottom of my heart, for getting my application to the right people, i was able to get the car of my dreams, and i am so very happy and again i thank you with all my sole and i hope that you can continue helping people like me!!!
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Apprehensions about getting a car loan despite bad credit history are not uncommon. There are many prospective for first time car buyers who in the fear of getting rejected never applied for first time car buyers loans.
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The dealer will want to make about $3k profit on this car you need, and also $3k profit on the car you're trading in. That's why you just don't trade a used car for a used car at the dealer. Don't ever do that. So the dealer is going to be very happy. You won't be.
Instead of $3k you're in the hole now, you're expecting them to put you $5k or $6k in the hole with nothing down, right? You are going to get killed on this deal, and the hole will be even deeper a year from now.
It seems like there are a lot of people posting here lately things like. "I can't pay my bills, and I want to sell my car, but I owe $10,000 more than it's worth" . They usually play this game with new cars, though.
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Others, including local and regional banks, have relaxed car loan terms.
Things are going to crash and car manufacturers are holding on to as many assets as possible. If they lease now they may never get that vehicle back.
The real issue is that your original car still has to be paid for, in some way. No bank is going to finance your newer car and take a loss on the first one.
Just because the second car may have the same sticker price as the first, doesn't mean you can make a simple swap. If the lender assumes the title of the first car, the most they will offer you is the dealer's, "low blue book" value. In other words, the wholesale price. But, for the second car, you'll be expected to pay closer to the retail "high blue book" price. That could be quite a difference. It will be YOU, who'll have to come up with the difference. Essentially, you will be selling them a used car, and buying a new truck. Don't forget, the car you "trade in" will be a used car that they will have to sell as a used car.
It will be kind of like you'll have to come up with a new "down payment" to make up for this price difference, even IF you can find a lender who'll be willing to let you finance at the same rate and payment as your first loan.
The only way for this deal to make any sense to you is if you REALLY need the truck instead of the car.
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The banks still aren’t lending, I went to look for a car and the dealer processed the loan application and I was denied because my score was not high enough and my credit is good.The dealer told me that he would give me 4k off the price if I paid in cash.
Article by at 2010-07-22 13:00:08
Categorized in Refinancing,
Loan For Car Purchase. Better Loan For Car Purchase Also, auto …:
A large down payment or get one at a buy here pay here lot, then ask them to report to the credit bureaus. This will raise your credit and help you get a loan in the future.
why go and jump into the fire… buy a car you have cash for.. repair it yourself.. if you want to jump up a knotch or so save your money do your own repairs.. forget about the financ company.. ride a bike till you have the bucks.. ok
Question about a car loan
Do u know of a place that will accept self employed with only bank statements to prove income? transunion gave me a 658 score but experian didnt even give one because of no recent activity. there is a little on there thats negative, but from years ago. thanks
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Auto finance is what I do for a living and it's based on your gross income per month. Most times this requires a recent paycheck stub showing taxes taken out ans year to date gross income.
Car payment for a loan of 19k with 3.5K down would be $394.39 with a 48mo term at 10% interest. The insurance is another story
The real issue is that your original car still has to be paid for, in some way. No bank is going to finance your newer car and take a loss on the first one.
Just because the second car may have the same sticker price as the first, doesn't mean you can make a simple swap. If the lender assumes the title of the first car, the most they will offer you is the dealer's, "low blue book" value. In other words, the wholesale price. But, for the second car, you'll be expected to pay closer to the retail "high blue book" price. That could be quite a difference. It will be YOU, who'll have to come up with the difference. Essentially, you will be selling them a used car, and buying a new truck. Don't forget, the car you "trade in" will be a used car that they will have to sell as a used car.
It will be kind of like you'll have to come up with a new "down payment" to make up for this price difference, even IF you can find a lender who'll be willing to let you finance at the same rate and payment as your first loan.
The only way for this deal to make any sense to you is if you REALLY need the truck instead of the car.
I don't think that would be possible; i think you can defer payments for a month but not 6. Do you know what your credit/fico score is? if it's good, you can shop around online for
auto loans and possibly find one that can fit in your budget. Or with the car makers you narrowed to you can see if they are offering any finance specials. If all those won't work, how about borrowing money from family? Good luck to you guys!