Auto Loans For New & Used Cars
Auto loan financing is very similar to shopping for any other loan product. You are likely to secure better financing terms if you plan and prepare ahead of making your vehicle purchase. Step one in the process should involve understanding your credit. Taking the time to research your credit scores will help you understand if lenders will offer you terms for excellent, good, average or poor credit scoring. Your credit score will impact the terms and rates you may qualify for and could impact the vehicle you are able to purchase. Securing your financing prior to finding your new car will position you to negotiate the best terms of the sale. Financing for a new car is likely to carry different rates and terms than financing a used car. Your loan term is likely to influence your interest rate. The shorter your loan term, the lower your expected interest rate should be. Most lenders are very cautious with rolling negative equity into a new car loan. In years past, auto manufacturers often were able to provide financing for their perspective customers through their own financial institutions. Companies such as GMAC, Ford & Toyota Motor credit provided a convenient process for car dealers to provide one stop shopping to new car buyers. These companies still offer financing to perspective car buyers, but have significantly tightened their underwriting guidelines following the credit crunch. Consumers who have credit scores in the mid six hundred range have fewer financing options today. A good alternative for consumers to explore auto financing is through a credit union. Credit unions are often more lenient on borrowers who do not have credit scores abve 720.
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Auto Loan News & Advice Articles
Is more bank regulation on the horizon
Long awaited legislation aimed at reigning in finance and banking companies may finally become a reality. Following an eventful week on Wall Street, where news out of Europe that ING would be broken up and divisions would be sold off in the near future certainly put a renewed emphasis on reform. European...
Busy day of news, Fed holds rates steady and banks reduce fees
The clear cut winners from today’s news were consumers. The FOMC policy to keep interest rates intact for the Fed Discount and Fed Funds rate was anticipated by almost everyone in the economy. The key news was not related to the Fed’s decision to leave interest rates unchanged; more specifically...
FDIC – Likely will need to raise rates for bank insurance
The FDIC is burning through depository insurance coverage at an alarming pace. This week, the FDIC announced another round of bank closings, including the largest bank of the year with the collapse of Colonial BankGroup of Georgia. The latest group of bank failures brings the total number of banks taken...
Cash for clunkers program goes live this week
This week the government finally kicked off their Cash for Clunkers program, aimed at helping to improve fuel efficiency and provide a sales boost to auto manufactures. The new “CARS” program will be a great avenue for consumers who have been in the market for a new vehicle purchase or individuals...