Used Car Loans

A person buying a used car will most likely need to apply for a used car loan either before or during the process of car purchase. Used car loans can be had from banks, credit unions, auto dealerships, and online financing companies. It is easiest to apply for a used car loan through the Internet. This is because you can find hundreds of car loan lenders competing to get customers. Therefore, there’s a higher possibility of getting a lower rate for the used car loan than from a randomly chosen bank or dealership.

It is really easy to apply for a used car loan on the Internet. All you need to do is fill an online vehicle loan application form wherein you could obtain a quote on the same day. In fact, you can get a used car loan at lower rates by comparing the different rates from different companies. It is always better to apply for a used car loan if you have a good credit score (at least 680). People with a bad credit score end up paying higher interest rates. Thus, you should apply for a used car loan only after you get your updated credit report with your credit score. If you have a credit score that is less than 540, then you should apply for a car loan only after you learn how to repair your own credit score.

Most banks do not issue loans for used cars that are more than 4 or 5 year old. This is because there is a higher risk of the car breaking down and going in for repairs, as they grow older. Generally, banks charge at least 2% higher APR on used car loans than for new car loans. However, as said before, online lenders are cheaper and tend to use car loan rates that are closer to the rates of new car loans.

Posted in Car Loans at May 25th, 2010. No Comments.

Car Loans






Buying a new car is one of the single biggest purchases most people are likely to make in their life. Other than their home and maybe their education, there is not really much personal expenditure that can compare in size to the purchase of a new car. Therefore it is not surprising that most people cannot afford to pay for a car outright. This is so even if they have a very good income. It is a simple fact of life that to buy a new car, most people will need to use a car loan to do so.

If you are considering taking out a car loan to finance the purchase of a new car, then you should make sure you are completely aware of all the financing options that are available to you so that you get the best deal available. It is highly likely that to car dealer that is selling you the car will have some sort of financing options available to you. This may be in the form of a loan to purchase the car or leasing options that are also available. You should be clear of the vital difference between a loan and a leasing arrangement. With a loan, you are borrowing the money so that you can purchase the car. With a lease, you are only paying for the use of the car, and at the end of the leasing period, you simply return the car and that is the end of the arrangement.

There are some leases that will give you an option to buy the car at the end of the leasing period. If you borrow the entire amount for purchase of the car, it is likely that your monthly repayment amounts on the car loan will be higher than those for a lease, this is because you are paying for the full price of the car and at the end of this time, after you have made all the repayments on the term of the loan, you will be the owner of the car.

There are a number of factors that you should look at when deciding which car loan to opt for. First of all, you should know that you do not have to accept the financing options that the dealer offers you. You can also shop around with other lenders, such as banks, and make sure you get the best deal on offer. Car loans are expensive and you should be willing to look into the various options that are available before settling on any one option.

Posted in Car Loans at May 25th, 2010. No Comments.

Auto Loans With Poor Credit – The 4-1-1 For Your Approval

Auto loans with poor credit are not every car dealers specialty and there are some things you’ll want to know before choosing a dealer to work with. Here’s the 4-1-1 to help get the poor credit auto loan that you need…

Can they help you?

*4 questions to ask upfront

*1 car buying tip to consider

*1 final thought about your new loan

If you’re looking to buy a new or used car and know ahead of time that you have poor credit, then it’s beneficial to know what to ask upfront so that you do not waste your time working with a dealership that will not be able to get you approved for the auto loan you need.

4 Questions To Ask Upfront

1) Does the dealership have a special finance department?

If they don’t, it doesn’t mean that they cannot help you, but the following questions become more important. If they do, then great! They take auto loans with poor credit seriously and will probably be able to help you.

2) Does the dealership buy cars specifically for special finance?

If the dealership does not buy cars for special finance, then you may run into a wait and see type of situation. I’ve worked for dealerships that had all the right lenders and the right people to get approvals, but never seemed to stock cars that would fit for the approvals.

What this meant was we would have an approved customer that we’ d have to ask to wait until a car came along, usually as a trade in, that would work for the approval before we could put a deal together. This sometimes took weeks and that’s no good for you if you are wanting or needing a new car now.

3) Does the dealership work with one or more of the following special finance auto lenders?

*Credit Acceptance Corp

*Drive Financial

*Westlake Financial

*Regional Acceptance

*Consumer Portfolio Services

*United Auto Credit

*Americredit

These are some of the nations top special finance auto lenders and if the dealership you are talking to is not working with at least one, preferably more, of these lenders, then they definitely do not take special finance seriously and you should look elsewhere.

Unless, they can answer yes to question 4.

4) Does the dealership offer in house financing?

If the dealership is both selling cars and offering their own in house financing, then they are all about helping people get auto loans with poor credit. All you’d have to do is make sure they have a car that works for your wants / needs.

1 Car Buying Tip

Flexibility is the key to auto loans with poor credit. If you set your sights on one (and only one) type of car, ex. that 4×4, lifted, truck with the cool paint job,. then you might be setting yourself up for some disappointment. This disappointment comes when the dealer tells you that it will require twice as much down and three times more in monthly payments, then you had expected, in order to buy it.

More often than not it’s easier to get approved first and then pick out a car that fits the auto lenders loan approval. Of course, you’ll want to only buy a car that fits your needs, but be flexible and put your needs before your wants.

1 Final Thought

You may not always get the exact car that you want when you buy a car with poor credit, but keep in mind that rebuilding your car buying credit is a process and you’ll need to crawl before you walk and walk before you run.

Use your new auto loan for poor credit as a stepping stone to rebuild your credit and then look to get your dream car on the next go around. Remember, you are only dating your new car, not marrying it and it’s easy enough to get a new one in a year or two.

Posted in General at March 7th, 2009. No Comments.

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