Thursday, 15 November 2012

Car loans are the way to go for quick purchase of a car

If you have not been able to buy your dream car yet, you don’t have to worry. In the modern day, buying a new car is not such a big deal. Whether you have the money in hand or you don’t, purchasing a car is no longer an ordeal. Car loans are available from various sources and on availing these auto loans you will be able to buy your preferred car easily. Lots and lots of options are available for you to choose from but here, you have to be careful about which option you choose. There are certain pitfalls of availing a loan like high interest rates and if you are not careful, you might end up spending a substantial amount of extra money. 

How to get a car loan? The first step to getting a car loanis to apply for a car loan. After you have applied for a car loan, you will be given all the details you need to comply with and on compliance with the details, you will be either accepted or rejected. 

Different sources like car dealers, private financiers and banks give car loans. Choose the option that is best suited to you.

With a car loan, you can purchase either a brand new car or a second hand used car.

The main issue while applying for a loan is your creditworthiness. If you have a good credit score, you will be able to get the best interest rates in the market. If you do not have a very good credit score, the interest rates offered to you will be higher and therefore your best bet will be to take a loan through a car dealer. 

The best way to start off is by first making a down payment at the beginning. If you make a down payment in a lump sum amount, then the pressure of the loan reduces and it increases the faith of the financier in your ability to pay him back. It also helps in lowering the rates comparatively. 

If you need a lot of money for your car, you should arrange for collateral security. It is a good way to make sure that you have extra cash for purchase expenses. 

Short term loans are more profitable than long term loans while buying a car.

Make sure you do thorough research about the car loan market before deciding on availing a particular loan. Even though the interest rates won’t differ much, some loan givers offer other leniencies and deductions that you should pay attention to. 

Make use of the internet to get the best loans possible. Various online websites allow you to compare rates given by different agencies. All you need to do is specify your requirements like loan amount, repayment period etc and the website will do the research for you. It is an easy and effective way of getting information.
Keeping these few tips in mind, you will be able to make the best decision while availing a car loan.

Bad credit auto loan helps re-establish and improve your credit history

A bad credit auto loan is meant for those with poor credit and who are not eligible for regular auto loans. Earlier, bad credit carried a stigma and no one was willing to extend any loans whatsoever to such people. But, the recession has made bad credit unavoidable in hitherto unimpeachable cases also and it no longer carries a totally unsavoury reputation. Although those with bad credit are still handled more strictly than those with a good credit history, nevertheless, it is no longer difficult to avail of loans because of bad credit. The lenders also have realized the vast potential of auto loan seekers because a vehicle is a must to carry out day to day activities and most people want a vehicle even if it has to be taken on a loan.
Bad credit auto finance loan attracts a very high rate of interest, much more than the regular one. It therefore makes sense to improve your credit rating if you are stuck with a bad one before you apply for car loan. Lenders are wary of loaning money to those with bad credit and hence they like to extract their pound of flesh by asking for exorbitant rates of interest. The higher returns are their way of compensation for granting loans on bad credit. They also may ask for a larger than normal down payment which is their way of securing themselves against potential non-payment. However, in this case, a large down payment actually works out in favour of you because it leaves with you less monthly repayments.
Many banks, financial institutions specialize in these types of loans and there also loan brokers who help get you the car loan with bad credit. Loan brokers offering loans on bad credit are of two kinds. They are hard money lenders and subprime lenders. Subprime lenders do not charge an excessively high amount of rate of interest although the rates are higher than that of loans on good credit. The hard money lenders, on the other hand, charge very high rates of interest because primarily they do not require much information from you to give you the loan. Hence, they charge unusually high interest rates for their lenient outlook towards gathering the relevant information from loan seekers.
If your credit history is not flawless, do not berate yourself and resign yourself to ‘no loan, no car’ aspect. Bad credit auto loan is there exactly for such situations and you can fund your car as well as re-establish your credit history with this loan.

Refinance Auto Loan-good plan for those in a difficult financial situation

Auto loans can be refinanced due to a number of reasons although the primary one is usually to save money on the monthly payments. You may want to refinance your car loan because of bad credit or because the current rate of interest is too high for you to cope up with and you would be comfortable with a lower rate of interest. In refinancing, you get a better rate of interest and you are also able to extend or shorten the loan term. Refinancing comes in very useful if you have taken the loan on bad credit auto finance or if you simply wish to improve your credit rating. An improved credit rating will mean a better interest rate and a reduction of even a few percent will save you a lot of money on monthly repayments.
To be able to refinance auto loan, however, you will have to meet with certain criteria laid down by the lender. One of the requirements will be that the value of your car should be greater than the current amount owed on the auto loan. If the amount owed is greater than the value of the car, it is referred to as an upside loan and you will not be eligible for refinancing auto loans. One of the ways to get around this problem is by trying to reduce the amount owed and then again make an attempt to get the auto loan refinanced. This means that you will either have to put down a lump sum or temporarily increase your monthly payments.
The other criterion is that the car has to be less than five years old. Many lenders also lay down the criteria of a specific minimum amount of money which must still be owed on the current loan although not all are very strict about this.
It is easier to get online lenders for refinancing car loans as there are plenty more available on the net than otherwise. However, it is important that you select the correct lender since there will be so many vying for your business. It is vital that you make online comparisons and choose the one which offers the best deal and seems the safest.
It is not difficult to refinance auto loan provided the criterion for it are met with satisfaction and this scheme works out really well for those in a bad credit situation or who have to save money.

How to Get a Car Loan- a quick guide to make availing of auto loans easier

Not everyone can afford to buy a car directly and yet a car has become quite indispensable for the majority of people. The best way to circumvent this issue is by applying for car loans which will let you purchase the car of your dreams. If you are wondering as to how to get a car loan, the process is not very complicated. A lot of options are available for the borrower but obviously, you must go in for the one which offers you the best deal. Most car dealers will offer auto loans when you go to buy a car but although this certainly is the easiest way for you, it is not the best way to go about it. Like in everything else, it is a good idea to shop around a little bit for the best auto loan possible before settling for the first one which comes your way. 
When you shop around for loans for the car, you will notice that different auto loan lenders have different packages on offer. Differences in interest rates, loan choices, down payments will surface and all these need to be researched before committing to any deal. The interest rates for a car loan vary from lender to lender and it also depends to a large extent upon the financial situation of the borrower himself. Your credit history, the duration of repayment and the down payment you are willing to put are all crucial factors in increasing or bringing down the interest rate.
It goes without saying that a bad credit auto loandoes affect your chances of getting a good interest rate because simply put, the borrower will not have much confidence in your ability to pay back the loan. You may either be charged a very high rate of interest or you may have to make a huge down payment or get a co-signer on your auto loan. While checking out various auto loans, it is also important to read the terms and conditions for rebates as in many cases, the rebate offer may actually work out more expensive than the ordinary offer.
Another important question which you need to address is whether early repayment of the car loan carries any penalty and if so, what are the charges. Many borrowers impose a hefty penalty on early repayment of loan and you need to clarify this before you avail of the loan.
If you are still wondering on how to get a car loan, then going online is a good option. Not only will it save you a lot of time and energy, it will also give you a lot of information. You will also be able to compare prices and offers simultaneously and you will be able to find a good deal for yourself.

Wednesday, 14 November 2012

Auto loans have helped millions realize their dreams of owning a car!

Auto loans are very handy for purchasing any vehicle if you do not have sufficient savings to make an outright purchase. These can be used to buy new cars or second hand cars. The terms and conditions for loans for new cars are better than those for used cars but a lot depends upon other factors also.
Firstly, loans for cars are usually secured loans which mean that you will have to offer collateral as security against payment. The collateral can be the car or your house. This is done to protect the interest of the lender. You can even take a homeowner’s loan to purchase the car.
A certain amount of down payment is expected when you go for an auto loan. In some cases, the down payment expected may be of a larger proportion than normal. Although it may appear difficult to cough up a substantial amount of down payment, in the long run, it actually works out for the best. This is because then your monthly repayments become considerably low putting less pressure on you. Also, if you do not make a down payment, the interest charged will be very high.
Other than secured loans, unsecured loans can also be got but, again, here the rate of interest will be very high. Unsecured loans do not require collateral and are usually available in the form of personal loans.
People with bad credit need not despair as bad credit auto loan is also readily available nowadays. Earlier, it was difficult to get loans if you had a history of bad credit but since the car consumption has increased by leaps and bounds, it is in the lender’s interest also to make bad credit car loans easily accessible. The catch here will be large rates of interest unless you manage to give a good amount of down payment or are in a position to offer collateral. In severe cases, lenders may require co-signers in order to extend the loan. Getting co-signers too is not a bad idea especially for students as they can get their parents to be co-signers.
You can also get your auto loan refinanced if you are unhappy with the current rate of interest. Many lenders are willing to be a part of refinancing. The interest on the new loan will be cheaper than on the existing auto loan. The internet is a good place to make comparisons of all types of auto loans and is a much faster and less tedious method of getting information about the loans.
Auto loans have helped millions of people realize their dreams of owning a car and are certainly very popular and useful.