How to Prepare to Secure Auto Loans

Other than buying a home or paying for a college education, getting a car is probably the biggest purchase you’ll ever make in your life. Unless you’re fortunate enough to have a big nest egg saved up or if you have an impressive cash flow coming through each month, you’ll need auto loans to help pay for your new vehicle. You don’t want to get in over your head or get to the dealer only to find out you can’t qualify for financing. Fortunately, there are some things you can do ahead of time to help ensure you get the financial assistance you need.

 

Pay Down Your Debt

 

Your debt-to-income ratio will go a long way in determining whether you qualify for a favorable loan. If you’re struggling with credit card debt, start working today to whittle it down. Pay off your installment loans and begin to chip away at those items bringing down your debt-to-income ratio. The less debt you have and more income you bring in, the better chances you have of getting a loan for the car you want.

 

Know Your Score

 

If you don’t know your credit score, it’s a good idea to find out what it is before shopping at the dealer. This way, there won’t be any surprises. Make sure you pay your bills on time or that you don’t open any credit accounts or get other loans right before you start shopping for a new vehicle. The better score you have, the better interest rate you’ll secure when you start looking for auto loans.

 

Have Something to put Down

 

If you know you’ll need a new car in the coming months, start saving money now. This will give you something to use for a down payment when you’re ready to purchase your car. The more you can put down, the less you’ll pay each month.

 

Getting a car loan doesn’t have to stress you out. Keep these tips in mind, and you can make this a smooth, enjoyable process.

What to Know About Buying a Car in Canada

A car is a major purchase. Unless you have thousands of dollars lying around, chances are you’ll need to borrow money. Car loans are a viable option for buying all kinds of vehicles. By understanding different aspects of the car buying process, you can get the right auto for your needs.

 

Car Loan

 

A car loan is financing used for purchasing a vehicle. There are many institutions offering this funding option. For example, many auto dealers offer in-house financing for their customers. You can finance up to the maximum cost of the car. Working with dealership, is a convenient way of borrowing funds and buying your dream car all in one place.

 

Payments

 

Car loans are generally paid in full within one to five years. You have the option of making bi-weekly or monthly payments. Consider making a substantial down payment. It’s the easiest way of lowering your payouts.

 

Budget

 

There are so many automobile brands, makes and models. How do you know what car is best for you? Research costs associated with the vehicle. Consider things such as insurance, fuel consumption, maintenance and parts. You can find this information online.

 

Test Drive

 

Test drive the cars that interest you. Compare things such as handling, steering, braking, comfort and smoothness of the ride. Getting behind the wheel helps you make the right choice.

 

Used Car

 

There are many advantages to purchasing a pre-owned vehicle. Typically, these autos undergo extensive bumper-to-bumper inspections. In many cases, late model cars are equipped with the latest modern technology and features. It’s a budget-friendly approach to buying a high-quality, reliable vehicle.

 

Getting around in Canada is a lot easier when you have your own vehicle. The good news is you don’t have to break the bank to do it. With a little upfront leg work, you can obtain a loan and drive off the dealer’s lot in your dream car.

What You Need to Know About Car Leasing

Leasing a car can be a good alternative to purchasing one. If you’re wondering if car leasing is for you, take a look at these facts that can help you make an educated decision. After all, we want you to make the right choice.

 

When Does Leasing Make Sense?

 

If you don’t have the cash to buy a car or if you have a bad credit score that would keep you from securing a good interest rate, then leasing is a good option. You might even have your eyes on a vehicle that is out of your price range. If you are neither able to pay for it in cash nor get financing for it, leasing is your only choice. Are you someone who likes driving the latest vehicle or do you enjoy driving a different vehicle every few years? Then leasing is for you. Leasing contracts only allow you to drive the vehicle for a specified amount of mileage every year. Leasing a car makes sense if you don’t intend to go over this cap. It also makes sense if you like taking good care of your vehicle’s interior and exterior.

 

How Does the Leasing Process Work?

 

Before heading to the car dealership, you have to ask yourself what type of vehicle you desire or need. Depending on your own personal situation this can be a sports car, SUV, sedan, truck or convertible. You also have to decide on a model. It’s recommended to choose a vehicle that gets good gas mileage and that isn’t too expensive in regard to insurance. Furthermore, you want to pick a model that offers all the latest safety features so you can hit the road with a peace of mind. You want to take the car for a test drive, of course. After you decided for one specific vehicle, you have to negotiate the price with the dealership. Ask what you can do to bring down the monthly payment. Usually, putting down some money helps reduce the monthly bill.

 

Car leasing is a valuable option. Now you should be able to decide if leasing a car is right for you.

How To Get a Car Loan With Fair Terms & Rates With Bad Credit

If you have bad credit but you need a new vehicle, you may be worried about how you’re going to finance it. Even used cars cost upwards of $5,000, an amount that is not really pocket change for most people. If you have shopped loans and discovered that you’ll end up paying more in interest rates than the car is actually worth, you may be ready to throw in the towel and take up walking. While your health might appreciate that, walking everywhere is not really practical, or feasible for that matter. Fortunately, there are ways that you can obtain a bad credit car loan with terms and rates that you can get on board with.

 

Repair Your Credit

 

If your need for a new car isn’t urgent, take a few months to repair your credit. If you already have credit cards in your name, start to pay them off. By making even the minimum payments each month, you can gradually improve your credit score until it is high enough to affect the terms and rates of bad credit car loans. If you don’t have credit, apply for a secured card, which requires a deposit but that still works like a normal credit card.

 

Have a Down Payment

 

The bigger your down payment is, the less you’ll need to be financed for, which means the lower your interest rates and monthly payments will be. Aim to save 20 percent of the total cost of the vehicle you want. If you have an old vehicle you can trade in, that’s even better! Combine both your down payment and your used car to lower the overall price tag of your future new vehicle.

 

Be Patient

 

Finding fair bad credit car loans will take some time. Don’t just jump on the first offer you receive, as this could end up costing you thousands of dollars that you cannot really afford, which will damage your credit even more.

 

Fair bad credit car loans can be tricky to come by, but by utilizing the tips above, you can walk away with the financing—and a vehicle—that you can reasonably afford.

4 Mistakes Car Buyers With Bad Credit Make

There are benefits to bad credit car loans. For one, you can buy a car when you have low credit. You can also boost your credit score. Once you qualify for a loan, the next step is shopping for a vehicle. It is a major step, and there are some precautions you must take. There are missteps buyers make that cost them money. Below are the most common mistakes – and how you can avoid them.

 

Signing Documents Without Reading Them

 

The paperwork for a loan may contain unfamiliar information. Read the document and ask questions. If you sign without reading, you may be agreeing to terms that may cost you extra money or even worsen your credit score.

 

Taking the First Deal

 

Generally, bad credit car loans have higher interest rates. Still, it is best that you shop around for the best deal. Check with at least three dealerships and ask them about their interest rates. You can find a dealer with lower rates. This will save you a lot of money.

 

Adding Extras to Your Car

 

You can get all kinds of extra features for your car. While it is tempting, it is best to avoid them. These features add hundreds or thousands of dollars to the sales price. Stick with a quality car that is equipped with what you need. This way you can avoid monthly budget-busting car notes.

 

Making Payments at the Car Lot

 

There are car dealerships that require that you make payments at the lot. These dealers don’t report to the credit bureaus. Buy your car from a dealer who reports to credit agencies. When you make payments on time it will increase your credit score.

 

Bad credit car loans help people buy vehicles. Like any loan, it is always best to do your due diligence. You are getting your finances in order. The last thing you want to do is make a mistake that causes you more stress and financial hardship.

Tips to Secure a Car Loan With Bad Credit

Bad credit car loans do exist, you just have to know what you can do to secure them. There are a few tips you can utilize to help yourself when you need to get financing for your next vehicle.

 

Know Your Credit Score

 

Having your exact score can be an asset. When you arrive at the dealership, you want to know what you are working with so that you can best work with your salesperson. You can obtain your credit score in advance and take it with you. Let the person you are working with know what your score is and ask them what you might need to do to secure a loan.

 

Get Pre-Approved for Financing

 

You can talk to your salesperson about any pre-approval process they might offer. This can provide you some information about how big of a loan you might qualify for, the terms you may get and anything you need to do to improve your chances of approval.

 

Provide a Bigger Down Payment

 

A larger down payment tells the dealership that you are taking your vehicle purchase seriously. It also helps to reduce your risk because the larger your down payment, the lower the loan you have to take out. You can discuss your down payment with your salesperson to see which amount could benefit you the most.

 

Consider a Cosigner

 

If you know someone who is willing to help you to get a new vehicle, you might ask them to be a cosigner. If they have good credit, this can significantly improve your chances of getting approved. It might also help you with a better down payment and loan options.

 

You can see that a bad credit score does not automatically mean that the dealership will deny you credit. You can talk to your salesperson about these factors and determine which ones might benefit you.

What You Need To Know About Car Leasing

There are countless advantages to leasing a car as opposed to purchasing, but there are also a few disadvantages to be aware of before making your decision to lease. Here are a few things to be aware regarding leasing a car.

 

The Cost

 

Purchasing a car can be a huge expense and cause unnecessary financial distress. A benefit to leasing is the ability to avoid the massive payment of purchasing a car in its entirety. Since you are required to pay off the entirety of the car when purchasing it, the loans are often lower with lease payments. The only cost advantage to purchasing a car as opposed to leasing it is the resell value once you are ready to give your car away.

 

You Can Drive The Car of Your Dreams

 

It is not uncommon for your dream car to be out of your price range. Leasing provides the opportunity to drive the beautiful car you are envisioning regardless of its value. You can drive the newest, best equipped model by simply paying monthly payments.

 

Other Factors To Consider

 

Although leasing does allow you to drive your dream car and can save you money initially, there are a few things to consider before signing anything. When you lease, you are not allowed to alter the car or customize it in any way. Additionally, it is vital to take good care of your car and ensure you maintain the condition. Otherwise, you may face some charges at the end of your lease. If you take care of your possessions, this should not be a problem.

 

Car leasing can be a great way to save some money and not deprive yourself from driving around a car you love. A few things to keep in mind if you choose to take advantage of leasing include you are not allowed to alter the car in any way and it must remain in good condition.

4 Tips to Getting the Best Rates on Your Car Loan From a Dealer

Car loans can be extremely expensive these days and more Americans are finding that they can’t afford to make the payments. However, if you follow these easy tips, we at your dealership can help you find the best rate for your budget.

 

  1. Know Your Credit History

 

Your credit score is the main basis for your loan rates and helps determine if you’re worth the risk of financing. Knowing your credit score will even the playing field with reputable and seedy dealers alike so you can find the best rate for you. An honest dealer may even work with bad credit if you have a decent reason for payments being late.

 

  1. Choose Short-Term Loans

 

We suggest choosing shorter terms for car loans to avoid paying hundreds to thousands of dollars extra in interest over the period of financing. This might mean paying a little extra each month for your regular payments, but the overall savings are well worth it.

 

  1. Pay Attention to the Annual Percentage Rate

 

Look for loans with us that have a lower APR. This includes all interest and fees that will be added to the cost of the car, so the lower the rate, the less money you’ll pay overall. We can help you figure out the best rate available for your credit ranking.

 

  1. Concentrate on Overall Cost

 

Instead of focusing on the cost of your monthly payments alone, you should be haggling over three things, price, trade-in value and financing. Then we’ll find the best rate that encompasses all three. By doing this, we can help you save a large amount of money over the term of your loan. Lower monthly payments often mean longer loan terms and more interest payments.

 

Salesmen at your local car dealership are willing to work with you to get you the car loans you can afford. By following the simple advice above, we can get you into a safe and reliable vehicle that will get you everywhere you need to go for years to come.

Are Car Loans for You?

When buying a car, a lot of people struggle to decide if they should purchase outright or get car loans. While car loans aren’t for everyone, they can be a great option for some people. If you are having a hard time deciding what to do, ask yourself the following questions to see if getting a car loan is a good choice for you.

 

Are You Short on Cash?

 

Do you have the money to purchase upfront and outright? Unfortunately, in many cases, the answer is no. If you don’t have enough money to purchase a decent car but you need a car sooner rather than later, the best option is to apply for a car loan for a good car rather than spending what you do have on a clunker.

 

Are You Financially Responsible?

 

If your credit history reflects financial responsibility, you can most likely qualify for a low interest rate loan. This means that in the long run, you won’t pay that much more than the purchase price for the car, with the added benefit of having extra time to pay for it. Additionally, if you know how to be responsible with your money, you won’t suffer consequences of late or missed payments.

 

Do You Need the Money You Have?

 

If you have enough money for a lump sum purchase but are worried about using it, don’t do it. Having money as a safety net will give you more peace of mind than any car will. It’s always nice to know there is money available to use in an emergency. Rather than making a huge dent in your savings, get a car loan and make a payment each month from the paychecks you earn.

 

If you live paycheck to paycheck, barely afford rent, or know that you don’t handle your finances that well, car loans might not be your best option. However, if you asked yourself these three questions and you answered yes, look into car loans. They could be your best bet for immediate access to a safe and dependable car.

The Best Vehicles for Families

If you have a family, this is something that you want to remember when you are looking at used cars. There are certain features that will be beneficial for families. You can let your salesperson know that you are shopping for a family vehicle from the beginning so that you can better narrow down your choices.

 

Four Doors

 

While a family can use a two-door vehicle, four doors are so much more convenient. This is especially true if you have small children. It is much easier to place a carseat and strap children in when you have a vehicle with four doors. Kids can also enter and exit easier and without having to climb over the front seats of the vehicle.

 

Extended Safety Features

 

Features like a backup camera or lane change sensors can help to keep you safe and on the road. This is especially important for families because you want to ensure that your children are as safe as possible. You can also look at features like a child seat anchor and adjustable seatbelts to ensure a proper fit for passengers of all sizes.

 

Adjustable Seats

 

If multiple people will be driving the vehicle, you want to ensure that all drivers can operate the vehicle safely and comfortably. Adjustable seats are critical since all drivers will be different heights and sizes. Ideally, you want the driver’s seat to be able to be adjusted back and forth, as well as up and down, to best accommodate all drivers. Being able to adjust the steering wheel and the mirrors is also important and something to look at when you are exploring the vehicles available.

 

As you can see, there are several things to consider when looking for a used vehicle for your family. These are just a few things to keep in mind to ensure you find the perfect vehicle for everyone.