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5 Ways to Get Cheap Car Loans

admin — Wed, 15 Oct 2008 20:04:11 +0000

Because many people change cars as often as clothes the need for cheap car loans is pretty high. Even if you don’t switch cars this frequently you probably want to get the cheapest car loan possible when you do buy a new car. Well then how do you find a cheap car loan?

First of all, don’t simply accept the initial offer. If you do some research and check with various lenders you’re likely to find a better car loan. You’ll find that the competition in the car loan business is pretty fierce which makes it much easier for you to find cheap car loans and save money.

Here are 5 tips to make it easier for you to get cheap car loans.

Do Your Research

The fact that there is so much completion for auto financing works to your advantage. With so many lenders out there trying to get your business you are in the driver’s seat and can accept or reject whatever loan you like. The best way to find cheap car loans is by getting out there and contacting several lenders to get quotes. Then take those quotes to compare the interest rates, fees, terms and other features to determine which loan is the best for you financially. This step will take some time, but the results are well worth it. To save time with your research do it online. Online auto lenders will get you instantaneous quotes in many cases, saving you hours of time.

Improve and Maintain a High Credit Score

Getting a good interest rate on a car loan is a piece of cake if you have a high credit score. So, the first thing you should do before going car shopping is to check your credit score and make sure it is high. Anything over 700 should get you a cheap car loan. If it’s below that you may want to consider taking a few months to improve it or you could end up paying more than necessary in interest.

It’s actually pretty simple to improve your credit score, it simply takes time. Pay all your bills on time and close any unnecessary accounts. Check your credit history to be sure there is nothing on there that doesn’t belong. Remember, the higher your credit score, the lower your interest rate and this applies to all kinds of loans, not just car loans.

Have a Trade-in or Large Down Payment

These will help you get cheap car loans in two different ways. First of all, the more money you’re putting down on the car purchase, the less you have to finance and that means lower monthly payments. Plus, many lenders will offer you a lower interest rate if your down payment is large enough. So, your down payment does double duty.

A trade-in functions pretty much the same way as a down payment, decreasing the cost of your new car purchase. Sometimes you can get a good trade value from the dealer, but you may be able to do better if you sell your old car privately.

Get Your Car Loan Before You Go Car Shopping

Most if not all car dealers offer some sort of financing, but that doesn’t mean that it’s good financing. Now I’m not saying you can’t get cheap car loans from an auto dealer, but chances are you won’t get the best deal on a loan from them. Additionally, you’ll be in a much better position to negotiate the car purchase if you already have financing since the car salesman will see you as a cash buyer. This alone can save you a couple thousand dollars on your next car purchase.

Don’t Let the Salesman Talk You Into Things You Don’t Need

Car salesmen make their living on commission from selling cars. This by itself should tell you that the salesman doesn’t have your best interests at heart when they are suggesting add-ons and upgrades to your vehicle purchase. Often the salesman will try to upgrade you to a more luxury model, but consider carefully how this will impact your budget. If you want to get cheap car loans you may need to exercise some willpower when dealing with the car salesman.

Getting the Best Car Loan Rate

admin — Mon, 13 Oct 2008 19:24:45 +0000

If you want to get the best car loan rate then going online to look for car loans is your best bet. No longer are you trapped into whatever auto loan rates you can find locally. The internet has made it possible to shop across the nation for your auto loan. That still doesn’t mean that you should take the first offer though. You’ll still want to do some research to find the best car loan rate and that means contacting several lenders and possibly even negotiating the terms of your loan.

The best way to start your quest for a low interest car loan is to compare a variety of auto loan companies. Only after getting a quote from each and comparing the interest rates, terms and repayment schedules will you know that you’ve found the best deal.

Luckily it’s now quick and easy to compare loan rates among lenders. The online lenders application process is quick and many online auto lenders will either email you quotes from a variety of lenders or actually let you compare quotes online side by side. The online auto brokers work with many different lenders and they negotiate very good rates. In fact, because they negotiate so well, you’re likely to get a better rate from an online auto lender than you will at the dealership or through your local bank.

You do want to make sure that your quote is as accurate as possible so make sure you fill in as many details as possible when requesting a quote. There are many factors that go into making a credit decision and just one small piece of missing information could cause your quote to go up by several points in interest.

Another way to get the best car loan rate is to balance your interest rate with the length of the loan. A shorter duration loan will get you a better interest rate, however the monthly payments will also be higher. You’ll need to look into your budget to determine how much you can afford on your monthly auto payment and whether it makes sense to go for a lower rate and higher payment or a longer term loan with a higher interest rate, but lower monthly payment.

If you’re trying to get the best car loan rate then you should try to put at least 10% down on the car and 20% or more is even better. A large down payment will help you in two ways. First, it will lower the interest rate on your loan. And secondly it will lower the amount you have to borrow as well. Definitely a good start on your loan.

One final benefit of being pre-qualified for your auto loan is that you’ll be better prepared to negotiate a good deal from the auto dealer. Car salesmen will see you as a qualified buyer and will do whatever is necessary to get you to buy from them. You will be able to negotiate for a lower price, higher trade in value and additional rebates and get the best car loan rate ever.

Where To Refinance Auto Loans

admin — Mon, 08 Sep 2008 00:32:22 +0000

When you refinance auto loans you can reduce the pain of your monthly car payments significantly. There are several ways to refinance auto loans and if you follow through with the auto refinancing you stand the chance of saving yourself some serious cash. Imagine saving up to $70 a month on your car payment by going through a simple refinancing. That works out to $840 a year or a whopping $4200 over the course of a typical 60 month car loan. That’s some serious cash!

So where do you refinance auto loans?

1) Your local bank.

This can be a very good solution, especially if you’ve got a good relationship with your local bank. It’s still a good idea to do some research though to make sure that you’re getting the very best terms, interest rates and repayment options.

2) Your local credit union.

If your credit score is excellent this is a great option, however in my experience most credit unions don’t want to work with those who have any history of past missed payments or blemishes on their credit record.

3) Your local car dealer.

Some car dealers will let you refinance auto loans, but most will simply try to get you to buy a new car. While it’s really nice to have a new car it defeats the purpose of refinancing to get a lower monthly payment since it’s almost guaranteed that your new car payment will be higher than your prior car payment.

4) *BEST* Refinance auto loans online.

If you refinance auto loans online you’ll find that you have the best selection of lenders to choose from. Most people also find that the application and approval process for online auto refinancing is much quicker and easier than through offline lenders. Another positive is that online auto lenders typically use a network of brokers to match you with the best possible interest rates and terms for your situation. Finally, the online loan specialist will only pull your credit report one time to compare rates from a variety of lenders. If you try to compare loan rates from a variety of lenders on your own you’ll find that each one will pull your credit report and this can actually damage your credit score.

In closing, it’s pretty apparent that when you refinance auto loans the best way to get a good deal is to refinance online. You’ll be able to compare various lenders to get the most competitive interest rates and terms for your car refinancing and you’ll save more money in the end. And saving money is the reason you wanted to refinance the auto loans in the first place.

Auto Loan Bad Credit Online – Is It Worth It?

admin — Mon, 08 Sep 2008 00:17:22 +0000

Getting an auto loan bad credit online is definitely the quickest and easiest way to get an auto loan, but is it necessarily the best way to get a car loan? Some think that it is the best way and others disagree. In the end only you can decide if the auto loan bad credit online is the best option for you, so consider the following carefully.

There’s no doubt that getting an auto loan online is faster than the traditional method. Simply find an auto lender, log on and fill out the basic application in minutes to get an almost instant quote. This is a perfect way to apply for a car loan in these busy times when many of us just can’t get away from work and family obligations long enough to go to a traditional bank and go through the lengthy auto loan process. Online auto lenders are available 24/7 and you can log on to apply anytime day or night and get a quote in less than a day.

Another way that auto loan bad credit online is superior is the anonymity that it provides. We all know that bad credit is embarrassing to say the least and having to meet face to face with a loan officer can be a stressful situation if your credit is poor. When you apply for a bad credit auto loan online there is no reason to feel embarrassed or as if you are being judged. Plus you can apply online even in your pajamas! A small thing I know, but kinda cool none the less.

On the other hand, many experts assert that you have a better chance of acceptance if you apply for a bad credit auto loan in person. Actually this applies to any kind of loan. They claim (truthfully) that the loan officers prefer to speak with you face to face so that they can look you in the eye and appraise your body language and demeanor. They want to know if you appear to be honest and sincere.

These face to face meetings also make it easier for you to tell your side of the story and give you the opportunity to show how serious you are in your need for the loan and your intention to pay it in a timely manner. You will have the opportunity to let the loan officer know about any extreme circumstances or emergencies that may have led to your past credit problems. We all know that illness, divorce and the loss of a job can lead to bad situations for good people all the time. If you apply for an auto loan with bad credit online you’ll never have the chance to explain the reasons for your bad credit like you will when meeting in person with a loan officer. And loan officers are human too. They are much more likely to show compassion and empathy if they see you and speak with you in person.

In the end there are plusses and minuses to both traditional and online auto loans. You know your situation best and you know how you would handle an in person meeting with a loan officer so only you can decide which course is best to take. A traditional bad credit auto loan may give you a slight advantage in securing the loan, but an auto loan bad credit online gives you anonymity, is faster and can also get you a better interest rate in some cases.