The Need for Speed: What You Need to Know about Getting Your Auto Loan Pre-Approved

Auto loan pre-approval can help save a significant amount of time during the car buying process. 

Whether you have a great credit, poor credit or no credit at all, using the pre-approval process will let you know how much you can afford and what types of cars are within your price range. It will help you understand what cars you will also need to stay away from. 

It can also be a good indicator on whether not you should by it new or used. If you're in the market for a new or used car, the following tips will help you along with the pre-approval process.

Check your Credit Report

Make sure you know what your credit score and history look like before shopping for a pre-approval offer. 

Fixing any negative items will increase your credit score and allow you to take advantage of lower interest rates. Up to 5 percent of consumers in the United States are given higher loan interest rates solely due to errors on their credit reports, so this step is essential before contacting the dealership for pre-approval.

Limit Your Debt

If you are the kind of person that tends to have a lot of debt, it can make the pre-approval process for your auto loan much harder. 

Think of it like going to a bank and asking for a loan. Only you already have a lot of debt and your credit is not very good. The bank isn’t just going to give the money you want. 

And if they do, you may not qualify for the amount that you had hoped for if at all because you are too much of a risk financially. Therefore if you want to make the process go easier to pre-approve your car loan, then you want to make sure that your debt is very minimal to show that you are not a financial risk. 

You want to be able to show that you can afford what you say you can afford and be able to pay your auto bill on time. 

Make sure you Meet the Minimum Requirements

While dealerships and banks like Markosian Auto try to work with all potential buyers, you'll need to meet some minimum qualifications for pre-approval:

Some of those qualifications are:
Income - In most cases, and depending on the type of car you're looking for, you'll need at least $1,500 in pre-tax monthly income to qualify.
Down payment - Depending on your credit history, you'll need some type of down payment for the vehicle.
Residency - Proof of residency is also required, which can be in the form of a utility bill or apartment lease.
Debt to Income Ratio - Your deb to income ratio, including the car loan and any monthly credit card payments, should be less than 45 percent of your income. 

If all qualifications are met, you'll most likely be pre-approved for a loan in less than 24 hours.

Compare Rates and Begin Shopping

Once a pre-approval comes through, compare it with rates from other lenders to determine which one best suits your personal needs. 

Applying at a dealership can make this process much easier because their finance department will send your application to multiple lenders at once and will choose the best option for you.

It's important to remember that your interest rate will be determined by your credit history. The pre-approval process might seem daunting at first, but working with the right people can take alleviate stress and get you driving away in the car of your dreams within 24 hours.

Buying A Used Car? Why You Should Look For Certified Pre-Owned

Buying a used vehicle can save you quite a bit of money, but there are also some risks that you should be aware of. 

Those who purchase vehicles through private sellers might find themselves dealing with a “lemon” that costs them thousands of dollars over the years. Another option is for people to go to dealers to purchase used cars that are certified.

Only The Best Vehicles Qualify

In order to be accepted into a certified pre-owned program, the vehicle must be in excellent condition. 

Not only will it be backed by the dealer, but it might still be under the manufacturer's warranty. Before qualifying for these programs, an experienced mechanic will inspect all of the major systems to ensure that they are working perfectly. 

Most certified pre-owned programs only accept low-mileage vehicles that have a clean history.

An Extended Warranty

Buyers do not need to take anyone's word that the vehicle will continue to run perfectly after the paperwork is signed. 

Once the vehicle has passed the inspection and been certified, the warranty will most likely be extended. If any recalls take place in the near future or one of the primary mechanical systems fail, then the repairs or replacement parts should be covered. 

The warranty might be extended for 12 months or longer depending on the manufacturer.

Buy The Same Car For Less

As soon as a vehicle is driven off of the dealer's lot, its value will immediately begin to drop. 

Even if it is identical to a new car, you might be able to buy it for just a fraction of the price. In many cases, you can save thousands of dollars by purchasing a pre-owned vehicle that only has a few miles on it. 

It might even have the exact same warranty and features as the most recent model.

Roadside Assistance And Maintenance Plans

No matter how well you maintain your vehicle, there may come a point when you need roadside assistance. Instead of using a third-party company to register for roadside assistance, you can save money by going through the manufacturer. 

These dealerships want you to continue coming back, and they often throw in extras such as maintenance packages and roadside assistance to keep their customers satisfied. These add-ons will continue to save you even more money over the years.

Certified pre-owned vehicles, like those offered at Leopardi Auto Sales, are reliable, affordable, and packed with all of the features you will ever want. You could drive off the lot with the car of your dreams for just a fraction of the price.

Provident Pocketbook: How to Live Within Your Means and Save Money

For most people, trying to live within their means is tough enough. But trying to live within your means and leave enough money left over for savings is next to impossible. Or is it? Here are some simple ways to live within your means and save money, too.

Avoid Debt

To live within your means and save money, you need to try to avoid taking on debt. When you carry debt, you pay extra money in the form of interest costs every month. 

Some debt is unavoidable and makes sense, such as a mortgage for a house or a student loan. However, you should avoid other debt, especially credit card debt. The easiest way to do this is to pay for everything in cash. 

That's not always practical, though, so if you need to use a credit card, use it only for necessities and pay the balance in full each month.

Make Savings Automatic

When you automate your savings, you not only guarantee you save money but you also have an easier time living within your means. 

Money that automatically goes into savings is money that you won't even figure into your budget, so you won't even consider spending it. 

The easiest way to automate your savings is to have a portion of your weekly or monthly pay direct deposited straight into your savings account. 

If that isn't an option, open a savings account at your bank and have an automatic transfer set up so a certain amount of money goes from checking to savings each month.

Save Money on Household Services

Your house or apartment may seem like a money pit that does nothing but suck money, but it offers an opportunity to save. 

Professionals, like those at Moon Valley Plumbing, realize that doing some simple plumbing tasks yourself can help you learn how to care for your home better. You can install more efficient light bulbs or a smart thermostat to save on electricity. 

Bundling your cable, phone, and internet services can reduce your rates and provide more money for savings.

Living within your means isn't really that hard to do if you put some effort into it. And there are chances all around you to save more money. 

Can you raise insurance deductibles? Are you using that gym membership? Do you eat out too much? Are you carrying debt on credit cards? All of these areas offer potential cutbacks that will put more money in your pocket that you can put toward savings.

Family Finances: How Divorce Can Change Your Financial Outlook

Most people think about the financial burdens when they think about getting divorced. Money always comes between two people when personal incomes, property and tangible assets must be divided. 

Learn how divorce can transform your views about finances for the better or worse.

Separation

The first step in the process of divorce is separation. Usually, one former spouse stays in the main house, and the other one finds another place to live. 

Many couples have separate jobs, but they are better off financially when they combine their two incomes.

For people working normal jobs, paying the bills becomes more difficult. Now, there are two mortgages, two electric bills, two grocery bills and no discounts for married couples. Each person's income remains the same, but the expenses double.

Some people say that going through a separation is an awakening. They become more aware of their situation before and after the divorce. 

Many people feel the urge to become more independent and enjoy their newfound financial freedom.

Child Support

In a divorce, some arguments arise over which parent should get custody. In a separated household, one parent usually has to pay child support from afar. 

One parent can ask for support and request a certain amount for the monthly payments. The court has the authority to determine the amount of compensation that one parent must pay the other.

Some people have to find another job or rearrange their lives just to make payments. They may think that they've received an unfair judgement and have the right to bring the case to court again.

You may not realize how important money is until you go through a situation like this. As a result, you are more likely to guard your finances. Most importantly, anyone who goes through a divorce will be more cautious about who he or she marries.

Dealing with child support is a hassle that could turn into an 18-year-long battle. Find an experienced lawyer who has dealt with many divorce cases and will give you advice on which route to take and which to avoid. It is important to evaluate your options with legal providers like Divorce Matters.

Other Matters

Often times in a divorce, there are other matters to take care of other than just simply paying child support. 

You are now a single parent. This means that you have half of the financial responsibility of your child. And technically, you also have full financial responsibility of your child when they are with you. 

You have to make sure there is food on the table and that they have clothes on their back. They may not be with you full time, but you are still their parent and therefore you are still responsible. 

It isn’t the same as having your spouse there to take care of them too. Your finances are split. Each of you share the responsibility of raising that child.

Another expense may be alimony. This is basically financial support to your ex-spouse if they are not bringing in sufficient income to live on their own while raising your child as well. 

Child support is more or less money you pay to the other parent for the child. Alimony is more or less so they can cover some additional living expenses. Alimony is something to be prepared for in the judge’s ruling in your divorce case.

Whenever people hear about divorces, they hear about a spouse who gets drained by the other and takes their disputes to the court. 

Money, in the form of spousal support and division of property, is one of the biggest challenges that affect most divorces. Before the divorce, contact a legal expert to go over your options and avoid going through lengthy battles over money.