Showing posts with label Car finance. Show all posts
Showing posts with label Car finance. Show all posts

Tuesday, February 20, 2018

How to Get Bad Credit Guaranteed Car Finance With No Credit?

Many times, it has been seen that people struggle with their current credit history. They find that auto loans especially the car loans are near to impossible to obtain. Are you looking for a car loan irrespective of the new or used car but dread applying for a car loan? If yes, then you have come to the right place. 

Here, you are going to collect the information regarding the bad credit guaranteed car finance. It means that there is a possibility that you can get car loan even with the bad credit. There is no issue at all for applying an auto loan while having bad credit.

Easy to process

All you need to do is to visit online and find lenders, which offer many exclusive deals related to the auto loan along with poor credit history. You can get your loan approved within just a few minutes. 

It states that the process is very simple and fast, even eliminates the demand of more paper work. For auto loan for bad credit guaranteed approval, you can compare non-binding proposals free of cost with the advice from car loan experts so that you can find and make sure that the lender is appropriate to fit your needs of the credit and financial situations. 

With the best and reliable lender, people will also get a chance to rebuild the credit rating from the very first day of the application and help to make your finances come back on track. 

Due to an easy process application procedure, it provides you with an option to save a lot of time and money. By going online, you can secure guaranteed car finance with bad credit. No matter whether you want a new or second-hand car, you will get it in just 48 hours or even less time sometimes.

What do they offer?

When you are going to avail the services of the car loan providers regardless of the good or bad credit, make sure to attain complete information about their services. The range of services may vary from provider to provider. Hence, it is better to be careful about what they offer. Some features of these lenders offering guaranteed auto loan approval online with poor credit history are:

  • You will benefit from the flexible and cheaper car payment plans on a monthly basis. 
  • You can explore a wide range of in-house options for bad credit auto financing. 
  • They will offer you a chance to work directly with loan dealers. It means that there is no intermediaries between you and the lender. 
  • They secure assured car loan bad credit approval when you visit online. 
  • There are no pre-penalties clause, which is appropriate for a premature car loan payoff. 

Requirements to be met

There are some requirements you should meet while applying for a car loan when you are having bad credit like you must have a legal driver’s license, be ready with your down payment if you want to give, and much more. For more information, talk to a representative right now!

Saturday, February 1, 2014

How to Raise the Money for a New Car

There comes a time when an old car is no longer road worthy. It may have been damaged in a crash or simply run its time on the road and is now more expensive to repair and maintain than it’s really worth. With maintenance and spare part costs continuing to rise above the official rate of inflation, everyone needs a little help with their finances.

With many families finding it difficult to cover living expenses the need for a new car can be disappointing and stressful. However, when needs must there’s nothing you can do but work out how you’re going to be able to replace your four wheels. If you’re worried about the cost, here are some useful tips you may find helpful in helping you to finance the expensive purchase. They are in no particular order; rather, let them serve as a guide to helping you get the best car at the best possible price.

Raising Money in a Hurry

You may be tempted to look for payday loans or something similar but it’s always better to avoid these options. Short term loads can cause a lot of extra financial strain, and if you’re unable to make the payment on the deadline, the amount you need to pay back will rise quickly. Payday loans have been vilified in the press as being nothing short of ‘legalised highway robbery’ so do not fall in to the trap and become a victim.

Rather than opting for these short term loans you may be better off seeing how much money you can raise from what you already have.

For example you can:

Sell or part exchange your current vehicle and use the money towards the new vehicle
Ask your employer to give you some overtime; you’ll pay more tax but at least you can raise a deposit more quickly should you need to
Clear out the home and sell everything your family no longer needs or uses. Check for old electronics, phones, clothing, CDs and DVDs as well as furniture that you’re simply storing rather than using. 

Car Finance Options

It’s also worth looking at leasing a vehicle or using car finance as an option. Car finance can be sought even if you have a relatively poor credit rating, although the interest will be higher. Car finance deals are usually spread out over three to five years, making the monthly payments much more affordable and manageable.

Before you begin looking for car finance deals you’ll need to establish how much you can afford to pay each month out of your current income. Be brutally honest with your spending and err on the side of caution to ensure you really can afford the cost. Once you know your monthly limit you’ll be able to ask for quotes and find out what amount you’ll be able to borrow before you begin looking for cars.

Avoid the Depreciation Hit

When you buy a new car, even on finance, you immediately lose money within the first twelve months of ownership. This is money you won’t be able to get back or replace even if you sell a car that’s relatively new. Even if you are able to buy a new car using car finance it’s probably better to look for a second hand version instead. You may be tempted to go for what is known in the trade as ‘nearly new.’

Nearly new and used cars are a sensible option as the original buyer took the depreciation hit for you. If you buy from a dealership you’ll still be able to use car finance too, helping to spread the cost over the years without having to pay through the nose.

Image attributed to: –marcus-

Friday, January 31, 2014

5 Common Mistakes Made When Purchasing a Car on Finance

English: Car Dealer, The Brook, Chatham Deposi...
Most people will need to acquire finance to purchase a car. The main thing to remember is not to borrow more than you can easily repay. People can be seduced by the sight of a gleaming new car and the talents of a creative sales person and end up signing up for a car and a loan that is beyond their means to repay. Do not be talked into buying something you can’t afford and end up being the victim of bad credit car loans as it will take some time to repair a bad credit rating.

Here are 5 mistakes to avoid when you are buying a car on finance.

Not Doing the Research

The biggest mistake you can make is to go car hunting without doing the research. There is a wealth of free information available on the internet that can guide you to make a smart car purchase. Research as much as you can. Find out what others are saying about different makes and models. Consumer advocacy bodies will usually post warnings about negative experiences. Check out blogs, forums and also websites published by roadside assistance groups. Avoid buying a lemon by doing your research online.

Letting Emotions Rules

Buying a car is exciting and it is easy to get caught up in your emotions at the sight of a shiny new car. A good car dealer will realise this and they will leverage your desires to try and convince you to buy. This is where your research comes into play. Remember what you have discovered on the internet. Be swayed by facts not by your imagination. While it’s normal to get excited about buying a car, make sure you keep that excitement well hidden from the salesperson. Be prepared to walk away from a car and you will be in a stronger position to negotiate price and to analyse if a certain car is really what you need.

Buying a New Car

A new car will depreciate in value the moment it leaves the showroom. If you buy a new car on finance you are not only making the monthly repayments, you are also losing a certain amount each month in depreciation, which can add up to a lot of money. While buying a new car may be appealing, you will save on depreciation by buying a second hand car. 

Thinking in Monthly Repayments

Car dealers will often try to talk you into a car by framing it in terms of the amount you will need to repay each month: “for only $300 a month you can have this”. Keep your focus on the purchase price and how much you are willing to pay in total. 

Buying Extras

A car dealer worth their salt will try and talk you into buying add-ons, many of which you don’t really need. They will wax lyrical about the benefits of window tinting, leather seats and an alarm system. Don’t be tricked into this.

Tuesday, January 14, 2014

Can You Get a Car Loan If You Are Retired?

If you're a retiree and are wondering if you can borrow money for a car, this helpful guide will answer your questions. Though retirees are no longer working, you could have a leg up when choosing the right car loan.

Retirees own more assets and have less debt

Retirees are people that have worked all their life. They usually have high equity a home, or have completely paid off a mortgage. Having collateral like this means retirees can qualify for a loan and in some cases, lower interest rates.

A good credit history

Having a good credit history also increases your chances of not only securing a loan, but getting one at a lower interest rate. It makes sense to check your credit history to fix any mistakes.

Income beyond work

A lender usually asks prospective borrowers for their proof of income. This really means proof you have a stable job. Many retirees have alternative forms of income. They tend to have significant savings and/or superannuation packages. Some retirees have stock or property portfolios that provide a part of their income. This proves they have the funds necessary to pay back a loan.

Age can be a factor

Typically, five-year loan terms aren't a problem for financial institutions lending to retirees. They may offer 36 to 24 month loan terms if age is a factor. If you have significant savings, you can opt to put a larger deposit on the car, which reduces your monthly repayments further.

Find out what's right for you

Remember; it pays to find out what's out there. Don't apply for too many loans, as it will reflect negatively on your credit history. Consult a financial professional to help choose the most manageable and affordable car loan for you.

Monday, January 6, 2014

To Buy or to Lease?

2003-2006 Mercedes-Benz CLK photographed in Wa...
The UK automotive industry is beginning to pick itself up from the dark financial times experienced in the last few years. Car sales have continually increased month-by-month for over a year and a half, the industry is currently one of the strongest in Britain and has become widely regarded as one of the key reasons we avoided a triple dip recession. Aside from purchasing new cars, hiring and leasing vehicles are becoming a particularly attractive proposition in the UK. At CarMax, we believe that now is the best time to take advantages of the strong car market, but what option is best for you – buying or leasing? 


So what exactly is leasing? A lease is essentially a rental or hire agreement between two parties where a fixed monthly rate is paid during a set period – the length of time can vary from a few months to years. Once the leasing timeframe has passed, you simply hand the car back. It has been popular alternative to purchasing a car in the US for a number of years, but the appeal has increased in the UK in recent times.

This attraction can largely be attributed to driving away in cars that may be out of your normal price range, you often see BMW’s or Mercedes-Benz as popular choices when leasing cars. Furthermore, the leasing of cars enables you to drive a new car every couple of years due to returning cars once the leasing period expires. There are financial gains to make via leasing too, the monthly payments are traditionally more affordable in contrast to typical car finance options – however it is important to note that this does not always prove to be the case.


Research carried out by Which? looked at the cost of buying and leasing different car models, they found that traditional car financing options when buying a new car were still the more cost-efficient in most cases. This has been reinforced in the current high consumer confidence in the car market; sales of cars have recently hit a 5-year high – putting the UK automotive industry as one of the leaders in the wider European market. A large portion of the continued rise in sales comes from the various different car-financing options available.

Coming out of the rough financial times, the amount of people looking to use credit as a means of purchasing a new car has sharply risen to a record high of 75 percent. Car financing provides an easier and more beneficial means for the purchase of cars, however looking to secure the right financing package to suit you can still be an extremely stressful process. At CarMax finance, we specialise in offering excellent, affordable car finance regardless of your credit status. We hold the belief that everyone deserves the right to buy a new car; therefore, we are proud to assist you in securing bad credit car finance through our excellent service.

We acknowledge that leasing cars has its advantages; however, nothing beats the feeling of owning your own vehicle. Across the country many people are realising the incredible gains of owning your own car, the continuous growth of Britain’s motor industry over the last 19 months reinforces that purchasing your own car is still the more attractive option. Our car finance packages help with the considerable expense of a car, making CarMax Finance the only option to consider when buying a new car.

Saturday, November 30, 2013

4 Poor Life Decisions That May Still Be Costing You Money

You make decisions every day that will impact your future. It is not always something you realize in the moment. However those choices that may have seemed unimportant at the time may still be having an effect on you today. Below are four poor financial decisions that are likely still costing you money.

1. Defaulting on a Car Loan

Whether it is a few missed payments or a full out repossession, car payments will affect your financial resume. Delinquent payments are reported to credit bureaus. A repossession can put you in a position whereby you may have difficulty purchasing another car with a loan. Additionally, if you do obtain another car loan, you will most likely pay steep rates because of your previous payment history. This continues to affect the amount of money you will pay out on a monthly basis.

2. Defaulting on a Lease

Breaking a lease early without meeting your financial obligations to a rental home or apartment will certainly impact you on your next move. Your future landlord may require you to pay a higher deposit because of your previous default. As well it is negatively reporting on your credit which affects your rate if you choose to purchase a home. This as well will cause higher monthly payments. In more extreme cases the poor credit reporting could cause you not to be approved for the home loan.

3. Maxed Out Credit Cards

Credit cards can be a great resource. However, using your credit card past the allotted amount can cost you dearly. The rate for paying late on a credit card according to can cost you as high as thirty five dollars in late fees. As well your interest rate can reach as high as 29.99 percent. This will increase your payment drastically. And almost more than anything else the reporting on your credit can cause a big drop in score.

4. Co-Signing

Co-signing is certainly a noble gesture. However, it makes you responsible for someone else's financial habits. Co-signing causes more people credit problems than they know. Just as all the various institutions report negatively to the credit bureaus when you pay an item late or default on a loan, they do the exact same reporting when your co-signee makes his or her payments late or worse, defaults on said loan. In the long run, you may not be doing them or yourself any favors by carrying them with your name and credit. Everyone has to learn responsibility, and sometimes enabling a friend or family member's bad habits can seem like helping kindness, when in truth it will further harm you both.

Your credit is the way financial institutions decide to offer you a loan for a home, car, business and more.It is almost impossible to function in today's economy without having good credit. Credit repair can help you work through your financial history and positively affect your credit score and financial standing, giving you the chance to achieve all that you want to achieve.

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Tuesday, November 19, 2013

How Car Financing Works

When financing a car you will most definitely need the cash to do so! However, there are a lot of people who don’t have the cash needed in hand to finance a car. With that being said, you will need to apply for a loan so that you will have the money to put down on the car. Now, there are various different car loans that are available to apply for. The car loan that you choose or that you are able to get approved for will depend upon your personal situation. 

How the finance process works

The applications for car loan financing are typically the same with few differences depending on the institute that you apply with.

You will first need to fill out the application. In most cases nowadays, people do this online. You will need to add some details about your finances, such as your monthly income, rent/mortgage payments, etc. All of this is needed to determine whether you qualify for the finance loan. Some documents will also be required of you in order for you to be considered for the loan. You will need to provide a driver’s license that is valid and up to date, bank statements, and proof of where you reside at will also be required to present to the institute.

After you have provided all that is needed you will need to wait a couple of days in order for the application to process so that you will know whether or not you have been approved.

Options for financing

The bank is who most people go through when they want to finance a vehicle. You don’t have to go directly to the bank, there is also the option of having the dealership do all of the financing for you.

The repo rate that is posted for the vehicle that you buy will determine what your interest rate will be. Your credit score and how long you will be paying on the loan will also have a lot to do in determining the interest rate that you will be paying. The interest is basically the percentage that the bank adds to your monthly repo rate so that they will earn revenue off of your payments for the car. Good credit will allow you to have the benefit of getting a prime or minus prime. All banks have their own personal interest rates and loan periods, so it is would be wise to choose the bank that you know will be cheapest and most convenient for you with financing.

Leasing instead of financing

Another option that you can go with if you decide that you want an easier route of obtaining a vehicle is leasing one. Even though you would own your vehicle through financing it, it would be much easier and cheaper with monthly payments to lease a vehicle. If you want to learn more about vehicle leasing you can check out some options here at this link by clicking here. Compare the low leasing rates to how much you’d pay to financing a vehicle.

Thursday, September 12, 2013

How Are You Going to Pay for Your New Car?

When it comes to being over 50 and wanting to maintain the same lifestyle as you did in your 30s, budgeting and smart planning are your most important tools in this endeavor. Sure saving some weekly cash is a good alternative when you want to purchase something more substantial, but is that really going to get things done?

Are you interested in buying a car? If you have already chosen the desired model, all you have to think about is finding the most advantageous method of payment. Funding opportunities are own resources, bank loan or finance lease.

Since a car is a perishable good, irrespective of the acquisition, the cost should be minimal, while the ratio between quality and cost should be balanced. Thus, given the fact that “own resources” requires no further explanation, let’s go straight to the other two versions and ask the million dollar question: what is the difference between credit and leasing? Both options involve purchasing property in monthly installments. 

The difference between loan and lease

Unlike a financial lease, in the case of a bank loan, the owner of is the client (user) and the loan is paid in monthly installments (comprising a share of the purchase value of the property - including VAT, interest rate and borrowing fees).

In the case of lease, the owner is the leasing company that transfers the right to use to you, through a rental system, at the end of which, if you paid every installment on time, you will also become the owner of the car.

How’s the car loan market?

According to credit bureau Experian, nearly 85% of new-car buyers in the second quarter signed up for a loan or lease to fund their purchase. And car dealers had a lot to do with this impressive number (the highest since 2006) since they are offering incentives such as low-interest financing. But experts tell us to pay attention since on paper things might not be the same as verbally agreed to, especially with all the unscrupulous dealers out there who would say anything to make a sale.

Furthermore, the guys at Motive Auto Finance warn us about the “unholy” practices of certain auto dealers. They act like a middleman for car lenders. In order to make even more money, some dealers will offer you a higher interest rate than what they are actually paying to the lender. Known as the “dealer markup”, this “bonus” can add an additional 3% in interest, thus increasing the cost of your car. And it is perfectly legal to do so, with only a few states having specific regulations in order to limit how much a car dealer can markup rates.

Pushing for add-on services is no surprise. Dealers will try to sell extended warranties or supplemental insurance, causing your monthly payments to increase. Remember that these products are optional and if you don’t want them you shouldn’t be persuaded in purchasing them. A good idea is to contact your insurance company for further information.

Another thing you should consider is that certain banks are now offering loans at below the RBI-mandated base rate. They have taken advantage of a “grey area”, using special schemes to offer luxury car customers auto loans at 9-9.15%, which is below its base rate of 10%. How do they do it? It seems that banks get around the RBI's base rate stipulation by using two methods: booking the loan at the base rate on their books and booking dealer payouts separately as promotional or brokerage cost.

Sunday, August 11, 2013

When Is It Worth it to Refinance Your Car? 4 Situations You Need to Consider Today

When it comes to getting your newly refinanced car loan, it is usually rather difficult to time these kinds of things perfectly. Having said that, there are still certain situations when it would definitely make sense for you to put yourself into a new car loan. You need to know when these situations arise because you will only get a certain amount of time to take advantage of them. Here are four different situations where refinancing your car loan could definitely make sense for your financial future. 

Interest Rates Have Gone Down

Any time interest rates go down, you should usually think about refinancing your car loan. Even if there is only a slight difference in the current interest rates when compared to the interest rates of the past, it is important to realize that the smallest difference can mean everything over the long term. If you are someone who is locked into a long term car loan, then you should always be on the lookout for a lower rate of interest.

An Improved Credit Score

An improved credit report is not really something that should catch you off guard. The fact of the matter is that you will have a higher credit score when you are able to pay off your debt and pay your bills on time. If you have been rather financially responsible over the past few months, then you may want to see if there has been an improvement in your credit score. Even a small improvement in your credit score can have a dramatic impact on your available interest rate.

You Didn't Shop Around

Whether you are trying to get the best car loan or trying to find California car insurance quotes from Worldclimate, it is important to remember that it always makes sense to shop around. If you did not take the time to wait for the best rate of interest when you were getting your new car, then you may want to backtrack a bit and do your shopping around now. Even if you think you got the best deal that you would be able to get, it still makes sense to take a look at what kinds of other offers are available right now.

Go Long Term

One last situation where it could make sense to refinance your car loan is if you need to lower your monthly payments. If you have found yourself in a situation where you cannot make your monthly payments, then lengthening your loan may be your only option.

Friday, August 9, 2013

4 Considerations to Make Before Financing Your Car

Buying your first car is a scary thing, actually buying any car is scary regardless of what number it is. Dealerships and lenders can also use jargon that you don't know. Consider these 4 factors before financing your car to make sure you get a good deal on a vehicle that meets your needs.

Know How Much Money You Can Spend

As a recent retiree or if your career is coming to an end, you probably have a lot of money for a down payment but don’t want to put your lifestyle at risk. That means you'll have the money for the down payment while leaving your investments in tact.

It's essential that you make a budget that tells you exactly how much money you can afford to spend on your vehicle. A good budget will include expenses and savings. Some items to put in your budget include your: 

  • rent or mortgage payment 
  • auto insurance 
  • health insurance 
  • food 
  • entertainment 
You should also set aside at least ten percent of your earnings for retirement savings.

Once you have made your budget, you should know how much room you have for your monthly car payment. Don't exceed this amount. If you do, you'll have to reduce your spending in another area. That can make life difficult and less enjoyable.

Understand How Interest Increases Your Overall Car Payment

If you don't have an extensive credit history, then you might only qualify for a sub-prime loan. That means you'll pay higher interest than someone with a good credit score. This should influence how you see car prices.

Let's say you don't want to spend more than $15,000 on your car. If you qualify for a 5 percent loan with five-year term, then you should include the interest when comparing prices. A car priced at $15,000 will actually cost you close to $17,000 after you calculate interest.

That means you should look at cars with lower sticker prices or find a better interest rate. If you buy a car worth $13,500 with 4 percent interest, then you will spend a little under $15,000 over five years.

Explore Your Financing Options

Just because one dealership wants to give you a sub-prime loan doesn't mean that you can't get a better deal elsewhere. Your education and income prospects could qualify you for Lexus financing with an excellent interest rate. Then you can buy the car of your dreams without going over your budget.

Think About How Long You Plan to Keep the Car

$15,000 might fit into your five-year budget, but what if you plan to drive the car longer than that? Even pre-owned cars should last longer than five years.

Some people decide to budget more money to their car purchases because they know that they will eventually pay off the loan. If you drive the car for 10 years, then you could probably afford to spend $20,000 instead of $15,000.

If you know that you'll want to buy another car in five years, though, you should stick to what you know you can afford during the foreseeable future.

What other factors should buyers consider when they look into their financing options?

Friday, July 26, 2013

For Personal Needs Go For Personal Loans

Often it happens that we compromise with our needs and dreams, but now that time has gone. If you want then your bank will help you overcome this unwilling compromise. There are several kinds of personal loans available in the market for your personal requirements. Whether, it is a car loan or a house the bank offers you a short term or a long term loan.

Personal needs vary from person to person. It may so happen that you are in urgent need of money, but are unable to gather the amount at the moment. In such situations loans are the best option. It helps you to pay in instalments and also furnishes with the option of paying the principle amount when possible. Certain criteria are also to be followed while applying for a loan.

The medieval period people used to mortgage their property or any other particular asset when in need of money. When unable to do so they had to render the same to the money lender. People were exploited on such basis. Sometimes the forthcoming generations also had to endure this loan.

The best part about a loan is its flexibility. In terms of time, money etc. the loan system is the best. The one discussed here are about personal and car loan. A personal loan is the one which can be taken on any basis. The rate of interest is a little higher than all the usual loans.

This loan can be taken for fulfilling any need, say you need to renovate your house or want a new house or want a car. Therefore, it implies that the need is not specific but the amount is specific.

The basic requirement for applying for this kind of loan is a three year filed ITR, a salary receipt and an address proof. These three are the most basic and the most common one, but the specifications may vary from firm to firm.

However, for a car loan the system and the requirements are different. First thing or the point which differs is that this loan is specifically for a car. The next point is that the loan is given in the name of the seller and not for the buyer. The money is to be given in the form of instalments to the bank by the buyer. As soon as the loan is cleared legal papers are prepared which is a proof that the car now belongs to the buyers.

Well taking a loan is a very easy task, but it involves taking care of few points like there should not be any negligence at the time of EMI deposit or else the loan is supposed to be lapsed on account of lack of payment. There are several advantages of loan which can be studied when taken a deeper look.

The term loan is not new to people nowadays but there might be some confusion when it comes to applying or searching for a loan. Hence, for more information on personal loan or even car loan , you can refer the experts.

Saturday, June 8, 2013

4 Things You Should Consider Before Financing a Car

Good auto financing options differ from person to person. Not only do these options depend on your own financial situation and credit score, but they also are determined by the age of the car that you're looking to finance and the financial institution itself. Before you buy your next car, consider how these factors will impact your financing.

How Much Can You Afford to Pay Each Month?

Financing a car means you'll have monthly payments. Make sure you choose a car and financing option that fits into your budget. Do you think you can afford $500 a month, or is $300 closer to your range? The amount that you can afford will influence the kind of car that you buy, but almost anyone can find an affordable option. Also, keep in mind that most financial institutions won't grant an auto loan for less than $5000. 

How Large is Your Down Payment?

The more you can spend on a down payment now, the less money you have to borrow to purchase the car. That means paying more now could equal smaller monthly payments, which can come in handy during rough times.

Most lenders and finance offices will also give you better interest rates when you put down a significant amount of money. Someone with a $1,000 down payment might pay five percent interest. With a $5,000 down payment, that same person might pay closer to four percent. That single percentage point can add up to big savings over a few years.

Lower interest is attractive, but you shouldn't spend your entire savings on a down payment. What would you do if you lost your job or had unexpected expenses that made it difficult for you to repay the loan? A couple thousand dollars in savings could get you out of a difficult situation.

How Healthy is Your Credit?

Your credit rating will have a big impact on your finance options, so you should get a copy of your credit report before you start looking for a new car. If you have excellent credit, then you can expect lenders and dealerships to give you lower interest rates. That excellent score makes you an attractive customer, so they're willing to give you competitive rates.

If you have mediocre or bad credit, then you can expect to pay higher interest rates. That doesn't mean it's impossible to get financing. You can still get a bad credit auto loan, but it will cost a little more. 

How Long Will You Keep the Car?

Most people forget to think about how long they actually want their cars, but that's an important consideration when you plan to finance the vehicle. If you plan to drive the car for ten years, then you can probably live with a four-year loan. Then you'll have six years of payment-free driving.

If you only plan to drive the car for a couple years, though, you don't want a four-year loan. Then you'll have to worry about repaying the loan's balance before selling it for a new vehicle. Instead, you'll want to choose a shorter-term lease that helps you pay for the car quickly.

What other things do you think people should consider before financing a car? Have you ever found out too late that you made a mistake when getting a loan?

Thursday, March 7, 2013

How the Car You Choose Affects The Kind of Finance Deal You Can Get

English: Car Dealer, The Brook, Chatham Deposi...
(Photo credit: Wikipedia)
Buying a second-hand car can be an excellent decision if you are trying to save a bit of money. However, one thing that you should remember if you want to buy a used car is that it may affect your financing options. Indeed, people are often surprised when they decide to buy a second-hand car only to find that they cannot get any access to financing. Here is a quick guide to the reasons behind this, and factors that you should consider when choosing a second-hand car if you want to get better access to finance. 

Used Cars Present a Greater Risk to Lenders

If you want to secure financing for a second-hand car, you may find that the lender has strict requirements about what they will lend you money for. For example, many lenders will not consider providing any financing for second-hand cars that have traveled over 100,000 miles, or for cars that are older than five years. 

The reason for this is that such loans are seen as higher risks by lenders. An old second-hand car, or one with many miles on it, is more likely to break down. If this happens, the person who borrowed the money may be more likely to stop paying back the loan. 

There is also the resale value of the car to consider. If you want to arrange a hire purchase agreement, the car is used as collateral. If the value of the car falls too low because it is too old, and you decide to stop paying for it, the lender will not be able to recoup their money. 

As a result, many lenders will not provide loans for buying second-hand cars. If they do agree to lend you the money, they will often insist on a much higher APR or a larger deposit. 

How to Choose a Used Car

It is not impossible to secure a good car financing deal when you buy a new car. However, to find the best deals, you should: 

  • try to find a used car that is between six-months and five-years old. Although all lenders have their own specifications, you are more likely to get financing if the car is newer. 
  • look for a car that has traveled less than 50,000 miles. The higher the mileage, the less chance you have of getting access to a good loan. 
  • look for a make of car known for its reliability. If there is less chance that it will break down, a lender may be more likely to consider lending you money. 

In addition to the above, you may want to spend some time looking around for lenders that specialize in higher-risk loans. Alternatively, consider a different form of loan such as a secured loan. With this you will be able to use the money for any purpose, but remember that you risk losing your property if you fail to keep up with your payments. 

Find Financing for Your Used Car

Buying a used car can make a lot of sense if you need a vehicle but you cannot afford to buy a new one. However, take the above information into consideration to improve your chances of finding a suitable financing deal. Alternatively, do not completely rule out buying a new car. With the excellent financing deals that are available these days, and the fact that a new car will require less maintenance, it may still prove to be a better option in the long run. 

Neil Stelling has extensive experience in car sales and finance. In his spare time, he enjoys sharing his insights with others through blogging for a number of different websites. Click the car finance help link for more information.

Wednesday, February 20, 2013

How to Finance Your New Car

clip_image002You may have waited; the recent years have not been the easiest from a financial standpoint and many people who felt they were in secure financial jobs for life found that was not the case. However economies have suffered the worst of the problems and now might be the time that your patience pays off. A new car is a sign of looking to the future. 

There can be many reasons for changing a car beyond necessity. It may be there is a deal that is too good to ignore. It may simply be that you feel you deserve to give yourself a treat. Whatever the reason it can be fairly easy to look at the financial implications and make a decision.


The World Wide Web has provided every business with a major marketing tool because people are increasingly going online for information. This applies in most sectors though car purchase is still a function that involves a showroom and a test drive.

When it comes to deciding on how to pay for your new car though, the Internet is an excellent place to look for competitive financing. 

Where to look?

A specialist dealing in vehicles is the best place to try, someone who can do much of the hard work for you and find the best APR available for you. There will be factors such as your credit history that will determine what you will be offered.

The Internet has allowed companies to interact with their customers; an online application process is both simple and effective. You will be able to get an idea of your financial commitment using an online calculator even before you make an application.

An online application system does not mean that the whole process is impersonal because there will be staff available to answer any questions.

Decisions on individual circumstances are done extremely quickly so that you can get approval to proceed without delay. You will be given details of the APR, the monthly repayments and the term of the loan so that you have all the information you need. There should be no restriction on where you buy your vehicle; finance can be sent to any dealership of your choice.

It is important to use a website that can show a good track record; examples of people who have used the website and been happy with the service that they received. There is no mystique about the Internet and it is perfectly safe; anyone providing finance is regulated whether the transactions are done online or not, but testimonials provide further evidence that you are dealing with a service orientated company.

You do not buy a new car every day so it is important to be sure that when you do you get the model you want at the price you want. There is likely to be some scope to negotiate because the new car sector has been suffering the same as everywhere else in recent years. The financing of the car is critical; ensure you understand all the details by getting an experienced provider that understands the meaning of service.

Steve Smith is a freelance writer who lives on the South West coast of Turkey in the small town of Dalyan, famous as a nesting site for the endangered loggerhead turtle. He writes on a range of topics from current affairs and economics to consumer affairs and car finance.

Thursday, January 10, 2013

Car Financing for the 50 Plus Driver

Getting a car at any age can leave a massive hole in your wallet. Getting a new car is often out of the question, especially when you’re over 50. So you should choose carefully. Even without the option of buying a new car, there are a lot of great used cars out there, which are practically waiting for you to get them. There are always ways to finance a car that will leave both your wallet and your retirement funds seem almost intact. In this article, we will look at different options to car finance. These should come in handy as you make the decision on purchasing your car.

Borrowing from friends

Borrowing money from a bank may not be the best option when you’re 50, not to mention the interest they charge you. It’s not really smart to pay interest for a car. But unlike banks and professional lenders, your friends can lend you money, without charging any interest. Also, a friend wouldn't mind if you were late with the monthly payment. But always make sure you can afford to pay them back before you borrow!

Be persistent

Even if you’re able to borrow from a professional lender, at 50 it becomes a tougher option. But don’t give up on getting a new car for yourself or your family just because one of them turned you down. Be persistent. As you wouldn't apply to just one job if you’re jobless you shouldn't apply to just one lender when it comes to car loans. You will have to fill a lot of loan applications, answering a lot of questions, about your income, employment history and expenses. But whatever you do, do not misstate any information you are stating in the application. All of those applications go through a verifying process, and not telling the truth may put you in real trouble.

Know your credit

It is best to check where you stand before you actually get a loan for a car. You might be able to put your hands on a car loan no matter whether your credit is good or bad. But the difference is that the worse your credit is, the more you will pay. Loaners and banks have the ability to easily repossess your car if you can’t pay for the loan.But, you will be “lucky” to get a car loan if your credit isn't shiny.

Money for Down Payments

This is the trickiest part of buying a car. But you do have a few options. Chances are, that at age 50, you have to dip into your retirement funds to get those approximately $1000 to put down as the down payment when buying your new car. But, that doesn't have to be the case. A better option would be that you try to trade in your old car for a down payment.However, trading in your car as a down payment may not always be worth it, and you will most probably get more cash if you sell your old car yourself. But sometimes, if you know your old car’s value and the trade amount is approximate to the car’s value, this could be the option that you use. Otherwise, like mentioned above, you could always borrow some money from your friends too so you raise the money required for the down payment.

Be there with cash

Please beware that many dealers may find a way to manipulate you, or get you to sign one of their high-interest loan deals. That’s why sometimes it is better to get a loan from a bank or a credit union. They will usually take lower interest, and offer you better deals than the average car dealers. Though, that is not always the case.

In case you are really tight with money, you can always turn to finance companies. Even with sky high rates and really bad terms, you can turn to them if you have no other choice.

But to avoid making such harsh deals, in the very worst situation, the best option for you would be to tap into your retirement funds so you can raise the cash for the down payment, and a small bank loan.

Monday, December 17, 2012

Fleet Management Tips for a Growing Business

In general terms, fleet management is the process of maximizing the return on investment companies make in their equipment. In practical terms, this means getting as much production as possible from the equipment, at the lowest per hour cost, over the longest period of time, while obtaining the highest sales value at end of life. In order to do this, an owner has to monitor and manage the company assets through modern business techniques and technology.

The first step in proper fleet management is to obtain the vehicles in the most cost conscious way. Contract hire is one way to make vehicle acquisitions.

Contract hire is a type of vehicle lease. This type of lease allows you to hire a vehicle on a long-term basis with payments made for every month of use. The amounts that you are charged will be based on the amount of driving you do using the vehicle, which is measured using the mileage and value of the vehicle. In addition to mileage and the van's value, other factors that will influence your rental fee include the length of the rental period and the resultant depreciation at the end of use. Contract hire is one of the most popular ways business pays for its equipment.

Vehicle tracking: Just as it sounds, vehicle tracking is the process of knowing where a piece of equipment is at a specific time and date, or where it has been over a period of time. Functionally this means answering questions as diverse as “are they where they can be the most productive?” and “where did they go today?”

Theft mitigation: Closely related to traditional vehicle tracking, theft mitigation allows a construction company to know if a piece of equipment is being stolen. Data gathered for theft mitigation includes when a piece of equipment is started outside of normal working hours, when a piece of equipment is moved (with or without engine start), when the equipment is being transported and where the equipment is at any time.
Productivity: Managing productivity means being able to understand when and how much a piece of equipment is running, idling, working, moving, etc. This information should be specific to the tasks the piece of equipment is performing as well the project on which it is working. For example, a backhoe might be working but not moving about the job. The system needs to account for this.
Maintenance: Knowing how much a piece of equipment has been running, idling and working allows a construction company to know an equipment’s hour meter reading very accurately and in real-time. In addition, sensors on the equipment can identify when and measure how long or how far a piece of equipment is being run in reverse, how many lifts or dumps have been made and a host of other activities. This knowledge makes it possible to accurately employ a very effective preventive maintenance program.
Operator behavior:  While you can’t directly measure operator behavior, you can infer it from other data collected while the operator is using a monitored piece of equipment. Knowing when a piece of equipment is started in the morning, how much time the equipment runs during the day how much time the equipment idles during the day, how much time the equipment moves during the day and how much it worked can be interpreted to get a reasonable view as to operator behavior. This is particularly powerful when management has the ability to look back over months of data and identify trends.

Increased efficiencies and increased profits are the main goals of modern fleet management. The majority of these increases can be obtained through the implementation of new fleet management methods or the enhancement of existing fleet management processes. 

Thursday, December 6, 2012

Finance for First Time Car Buyers and Students

If you are buying a car for the first time, there are chances that you have a limited credit history. As a student, you may not have any credit history at all. This makes it difficult to get a good rate on a car loan and may lead to being rejected completely. Here are some steps to take to help get finance for your car.

Shop Around for Vehicles and Loans 

Do not just jump for the first lender offering you a deal. Shop around for different cars and finance deals available. The problem is that there is only a 14 day cooling off period but once this is gone, you are stuck with the loan. It can take months to find the perfect car and interest rate – and should take this time to avoid feeling pressured in taking a deal. 

Save Up a Big Deposit 

Save up for a big deposit for your car to help with being approved for a loan. By having 50 percent of the car price as a deposit, you will prove to lenders that you are sensible with your money and they are more likely to see you as a lower risk than the average first time car buyer or student. You will usually need at least 10 percent towards the total of your car. Another benefit of saving money is that you will need to borrow less, which will mean a shorter term or smaller monthly repayments to help with budgeting.

Establish Credit before Buying a Car 

At least six months before looking for a car loan, you should establish a credit rating. This could be from a credit card, a store card or setting up credit agreements with your mobile phone operator for example. This will help to show that you do stick to agreements and will help lenders see you as a lower risk. 

Look Into Different Types of Loans 

There are many different types of finance agreements for cars. Look into each of your options to find the best one to suit your needs. For example, hire purchases may offer you the benefit of arranging your credit through the dealership but is only available on cars under five years old, which are more expensive than the majority of first time or student cars. 

Budget for the Finance Deals 

Be sensible with the amount that you want to borrow, the term of the loan and the monthly repayments. First time buyers and young students have the dream of owning a flashy car but they are expensive and there are high chances you will be rejected for the loan. You will have to stick to the monthly repayments for the entire duration of the loan so avoid borrowing too much and struggling to afford all your outgoings. 

There Is the Option of Refinancing in the Future 

You may find that taking a loan with a higher interest rate is beneficial. After a couple of years, you will have the benefit of refinancing, which will help you gain lower interest rates and cut the cost of the total loan. 

Being sensible with your borrowing is extremely important. Build some credit at least six months before you start looking for a car and stick to the agreements. This will prove to lenders that you re sensible. When you are ready to start looking, shop around to find the best option for your needs. 

Author Bio: - Edwin Miles works at CarFinance247 as an Underwriting Manager. CarFinance247 is one of the fastest growing website that deals with automobiles in the U.K. where Edwin currently lives in Manchester. They have been doing their utmost best to build a high quality website that unites car buyers with the make and model of their choice.

Sunday, November 4, 2012

Car Loans Were Never Easy – Until Now

Most people would imagine that given the current economic scenario, car loans would be difficult to come by. But that is not the case at all. With car loans becoming available online, there has been a big change in the way people approach car loans. First of all, the amount of choices has gone up manifold. Secondly, people can compare the different offers and see which one suits them the most. While they do that, they can also choose from the many thousands of car models that these car loan websites have. What’s more, they can do it conveniently at home or at the office, without having to visit the offices of the car loan company itself. 

Do some research – you never know what you might find

So the next time you are browsing the Internet and are advised to click here for guaranteed car loans and finance deals, go ahead and do it. Now while you may be tempted to avail of the first offer that comes your way, you should try and exercise caution. You have to go through each of the offers carefully and see where you get the best deal. The rate of interest, the tenure of the loan, and more importantly, the total outgo are important factors to be mulled over before a decision is taken. 

Online loans give tremendous advantages to a prospective car buyer. First of all, there is the whole thing about how they save time by allowing the person to go through the various options, do a comparative analysis, and make the right choice. Secondly, the sheer diversity of choices ensures that you get a good price. Thirdly, because you can get a pre approved loan online, you are more confident in negotiating a good deal with a car dealer. 

Guaranteed car loans are yours for the taking 

The Internet is a wonderful tool for enabling commerce. It not only lets buyers exercise great choices; it also lets them get great prices. In effect, the Internet makes the playing field level in one fell swoop. This is a very empowering phenomenon, and it imparts great bargaining power to the consumer. Something that he or she has never had before! To the seller it provides access to a huge market at practically no price at all. This is just as true of car loans. 

At a time when the economy is sluggish, the Internet ensures that people’s credit lines don’t dry up. Anybody who wants to buy a car can do so. The car loan is just a click of the computer mouse away. 

Not only does the Internet get you access to more car loans than before, it also allows you to make an informed decision about things like the interest cost, and the model of car to be purchased. So if you never ever wanted to avail of a car loan the traditional way, could you be faulted for it? Online car loans have made possible a paradigm shift in the way people buy their cars now. People have taken to what may be called smart car buying practices. And that is all thanks to online car loans.
John Law is a car buff who likes to write. His recent article has become quite popular in various consumer blogs and automobile blogs.

Thursday, October 25, 2012

How to Avoid Extra Costs at the End of Your Car Lease

Car Lease (Photo credit: NobMouse)
$250 to dispose of your vehicle, $1000 for extra miles you put on the clock and $200 to replace the light bulb and the worn tires—lease agents constantly nickel-and-dime consumers when their lease runs out. 

Here’s a rundown of what can trigger those fees, and some steps to take in self-defense.

Disposition fee: Leasing companies charge you if you choose not to buy the
vehicle at the end of your lease. This fee is set as compensation for the expenses of selling, or otherwise disposing of the vehicle. It typically includes administrative charges; the dealer’s cost to prepare the car for resale and any other penalties. Make sure this fee is stated clearly in the contract and is agreeable by you before signing on the dotted line. At lease-end, you are left in no position to negotiate as the dealer can apply your refundable security deposit towards this fee. 

Excess mileage charges: Almost all leasing companies will charge a premium for each mile over the agreed upon mileage stated in your contract. This penalty can be as high as 25 cents per mile and can add up quickly. To avoid the risk of running thousands of dollars in excess mileage penalties at the end of your lease, always check the “per mile” charges in your contract and be realistic about your mileage before you sign any contract. If you think the limit is unrealistic given your commutation needs, then negotiate with the dealer to get a higher mileage or contract for additional miles. 

Excess tear-and-wear charges: Another potential cost at the end of the lease is any incidental damage done to the car during the lease. This is deemed any excessive damage done to the normal tear and wear of the vehicle. Notice the use of the terms “deemed”, “excessive” and “normal”. There is no standard formula to define what’s “excessive” and “normal” and it’s up to the leasing company to assess – or deem – the damage and determine what they are going to charge. This leaves you at the mercy of unscrupulous leasing agents who set stringent tear-and-wear standards. 

Make sure you read the description of these standards, understand them and agree to them. If your leased vehicle is damaged prior to the end of the lease, you may find it cheaper to repair the damage yourself than pay the excessive charges of the leasing agent. In the event of a dispute over the charges at the end of your lease, get an independent third party to do a professional appraisal detailing the amount required to repair any damaged parts or the amount by which tear-and-wear reduces the value of the vehicle.

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