Category Archives: Buying & Selling

3 Key Advantages of Direct Car Finance

Are you looking for affordable car finance options?  Do you want to avoid dealer loans that have a high markup or added extra fees?  Learn 3 key advantages of direct to consumer auto loan financing and how it can save money in the long run.

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Do You Need a Car Loan?

Are you struggling to keep money in your pockets? Besides your food, clothing and rent, you might also have a myriad of other expenses to deal with.  All it takes is one natural disaster or accident to put you behind the eight ball.

Unfortunately, bad things happen to good people. And, you might have gotten more than your share of bad luck.  But, let’s say you need an automobile loan.  Most families have multiple cars to provide them with transportation for work and play.  What are your best options for vehicle financing?

Fortunately, if you want to finance a car, there is a site that makes the process very easy for you.  The site is myAutoloan.com.

Why Working With a Direct Lender is Smart

Most dealers have a captive audience.  Some people want to go the dealer for everything since that has been the process in the past. Dealerships figure that since you are looking at their cars, you will simply get financing from them too.  But why should you?  Dealerships charge higher prices because they cater to those who have no alternative.  Fortunately, direct to consumer car loan financing through a lending platform that has many lenders is a viable alternative.

1. Compare Car Financing Options

We are a direct to consumer lending platform that provides you with the opportunity to compare auto finance offers from up to four different lenders.  This way, you can select the best lender that best fits your needs.  Avoid the dealer for financing since you will not be able to compare rates and terms.

Gain real empowerment with a higher level of control over your new or used auto finance needs.  With more choices, you win.  You become an empowered consumer.  You have freedom of choice with our auto finance direct to consumer lending platform.

2. Up to 4 Loan Offers

Not all car loans are created equal.  With only one option from the dealer for a new or used car financing loan, you might feel stuck.  You need a car loan but you don’t want to agree to unfavorable terms or conditions.  Auto finance is an important commitment.  It will tie up a portion of your future earnings.  That is why you must find the best car loan that fits your budget.

With our direct loan lending platform, you could get up to 4 loan offers.  That should provide you with plenty of room to maneuver.  Choice is a wonderful thing – You can see what is available and select which is best for you.

We empower you with the means to get the transportation, you need.  How many people have perfect credit today?  There are so many groups trying to siphon off your funds; we understand that good people might have bad credit.  Our loans cover the full credit spectrum.

3. More Affordable Loans

Economics 101 teaches that those with a monopoly can charge higher prices.  The dealer has the advantage when you find the car you want to finance.  Why should he offer you cheap car financing when you are in a hurry to make the purchase and move on?

Many dealerships believe you won’t go anywhere else.  You might go to the dealer lot and figure you can get car maintenance and car financing in the same place.  But, that might be too costly, especially on the finance side of things.  When you have 4 different car loan offers, you get to choose!  What could be better than that?  You choose which lender is going to meet your needs best.  

Unlike the dealer, getting up to 4 direct financing offers allow you to select who you want to work with.   Since the lenders are competing for you business they know that they must be more efficient and provide competitive financing options. They must offer an affordable loan to seal the deal.  At myAutoloan.com, with our direct auto finance options, you are likely to find a more affordable loan and one that works best for you. If you want a cost-effective process, we offer it.  We are in 48 states and empower the consumer.

Cut out the middle man markup. Direct car financing on our lending platform provides you with car financing at an affordable price.  Don’t be afraid to try it yourself.  It’s easy and fast with no obligation.  Why not save some cash when you can choose the car loan that is best for you?  Try it. Get the best deal with our direct auto financing for new, used and even auto refinance loans.

When NOT to Cosign an Auto Loan

To cosign, or not to cosign. That is the question. While cosigning an auto loan for a friend or family member can help them get a car they might not be able to afford on their own, you could be taking on undue risk. As the cosigner, you’re agreeing to pay the amount due and perform all the agreements stated on the contract if the borrower fails to meet contractual obligations. You’re on the hook for the loan payments if the other person stops making them for any reason. Even if they die.

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As the cosigner, you’re essentially the loan company’s Plan B.

Sometimes, the risks of cosigning for someone don’t outweigh the rewards, even if the person is your [insert relationship here!]. Here’s when you should think twice about cosigning an auto loan.

Think twice about cosigning a loan when…

You’re planning on making a major purchase soon.

Considering renovating your home, buying an investment property, or purchasing anything that might require credit? Then be careful. Being a cosigner could ding your credit in two ways.

First, if the other person fails to make their auto loan payments on time, your credit could be damaged right along with theirs.

But let’s say they never miss an auto loan payment. There’s another risk to consider, too.

Cosigning an auto loan will increase your debt-to-income ratio, which is the percentage of your debt payments in relation to your income. Any auto loan you cosign for will show on your credit report, even if the financed car isn’t yours and you never get to drive it. New lenders will review your debt-to-income ratio when you apply for financing, and they might not be too excited when they learn you could be on the hook for someone else’s auto loan.

“Because you’re liable for [the loan’s] balance in the event of a default, being a cosigner can decrease your ability to get new credit,” says Money Crashers.

It doesn’t matter if the other person makes their payments on time. “Cosigning a loan can also lower your credit score because the amounts you owe makes up 30% of your FICO score,” adds Money Crashers.

According to Smart Assets, a debt-to-income ratio of 36% is generally accepted as good. The closer you get to 36%, the more your credit score could drop and the more hesitant a potential lender might be. Keep your debt-to-income ratio low for less stress and more credit opportunities.

Your relationship with the borrower is rocky.

You may feel tempted to cosign for a loved one to show them you care, to help them out of a tough time, or because you feel guilty for things that happened in the past. These feelings are completely normal and understandable.

Keep in mind, however, that cosigning a loan could make your relationship worse, not better. When you turn a personal relationship into a financial relationship, you put a lot of undue stress on the personal relationship.

“You’re putting your relationship in real jeopardy,” Megan McArdle, business and economics editor for The Atlantic, told NPR.

McArdle explains, “If you become this person’s primary creditor, which is what’s going to happen if they default, that really damages the relationship. And even if you don’t, you know, as Dave Ramsey, the financial guru, likes to say, Thanksgiving dinner tastes different when your father-in-law is asking – is looking at you across the table and wondering why you couldn’t pay off your car loan and yet you have a TV or whatever. Keeping those kinds of decisions outside the family, outside of relationships is usually better for everyone in the long run.”

There are libraries of information about the psychology of money, and especially around money and family. Don’t put your most important relationships at risk by cosigning a loan.

Remember that cosigning a loan means:

  • You’ll be responsible for the loan.
  • Your credit could take a hit.
  • You’ll have difficulty financing your own purchases.

Are these risks you’re ready to take?

You can help in another way.

Having a friend or family member cosign is one way many drivers are able to get car loans with little to no credit, but it’s not the only way. You can help a loved one get behind the wheel of a new or used car by:

  • Helping them build better credit. Can you help them set a budget, stick to it, and improve their own credit situation? It might not take as long as you think. Teach your loved one how to build their own credit and you’ll be doing them a favor for years to come.
  • Gifting them money for a bigger down payment. Making a bigger down payment means they’ll need to borrow less, and this could make a car loan easier to get with poor or no credit.
  • Comparing auto financing options. Their first option might not be the best financing option, especially if they’re trying to get a car loan with minimal credit. Different lenders offer different loan terms and interest rates. Encourage them to shop around. Another lender may not require a cosigner!

If you have a friend or family member asking you to cosign a loan with them, there’s a chance they simply haven’t done their research. Have they compared all available loan options? Have they researched how to qualify for an auto loan? We can help. Encourage your loved one to try myAutoloan, where we present applicants with up to four auto loan offers at once. We even work with applicants who have bad credit… which could help keep you out of a bad cosigning situation.

5 Best Cars for People Who Really, Really Love Their Dogs

You only eat at dog-friendly restaurants. You have a tattoo of your pup’s paw prints somewhere on your body. Your bumper sticker proudly proclaims that you just want to drink wine and hang out with your dog.

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We get it. You’re a dog person. We’re dog people, too. That’s why we compiled this list of awesome, dog-approved vehicles. These dog-friendly cars will make it easier for you and Fido to travel together in comfort and style.

You’ll notice that while these vehicles are all different makes and models, dog-friendly cars tend to have a handful of things in common.

The best dog-friendly cars all have:

  • Great, versatile cargo space: Seats can fold flat or easily be removed for maximum storage and space for a dog crate.
  • Low floors: Low floors make it easy for your dog to hop into the car, no matter their age or size.
  • Built-in window shades: Tinted windows or built-in shades can help your dog avoid direct sunlight and stay cooler on long car trips.
  • Easy to clean interiors: $%*# happens. Literally. Parents and pet lovers know this to be true firsthand. An interior that’s easy to hose down and vacuum out is a godsend when a long car ride turns into a long day at the car wash.
  • Little space between seats: The less nooks and crannies there are, the less places you have to worry about cleaning up dog hair and losing rouge treats!

5 Best Cars for Dogs & Dog Parents

#1: Kia Soul

The Kia Soul is top choice among dog lovers and even musicians. Its massive, easy-to-clean cargo area makes it easy for you to transport almost anythingGreat Dane or full drum kit. The Soul’s body sits low to the ground, so even if you do have to help an ol’ dog climb in, you won’t have to lift for long. It can easily accommodate a medium-sized crate. One drawback, though? The rear seats fold down, but not completely flat.

Used Kia Souls cost well under $15k. Think $6k to $13k.

#2: Chrysler Pacifica Hybrid

As a general rule of thumb, minivans make great dog cars! Thanks to their wide sliding doors, large rear hatches, and low floors, minivans make it easy to travel with dogs and still leave room for passengers and luggage.  

The Pacifica Hybrid rises to the top of the dog pile with its completely flat floors and convenient seat anchors that make it easy to tie down a dog crate. Safety and comfort? Two paws up for that!

A new Chrysler Pacifica Hybrid will run you close to $40k, but you can find reliable used Pacificas for closer to $30k and with fewer than 50,000 miles.

#3: Subaru Outback

No list of dog-friendly cars would be complete without a Subaru! Subaru loves featuring dogs in their commercials and regularly invests time and money in pet causes around the country. They work with the American Society for the Prevention of Cruelty to Animals® (ASPCA®), The Center for Pet Safety, and Southeastern Guide Dogs. As a company, Subaru is paws-itively passionate for pups and lives out their passion every day!

Drive a Subaru Outback and you can take your dog pretty much anywhere. The Outback’s low height makes it easy for Fido to jump in and out, and the spacious cabin means plenty of room for him and all of his toys and treats. Plus, every Outback comes with all-wheel drive. In an Outback, you can both answer the call of the wild.   

Subaru has an almost cult-like following, so good luck finding a used Subaru Outback. A new Outback costs about $26k.

#4: Honda CR-V

On first glance, the Honda CR-V sits a little higher than the Kia Soul and Subaru Outback. Don’t start sniffing elsewhere just yet. Dogs and people alike adore the CR-V’s spacious cargo area and composed, stable ride. Upgrade to a CR-V EX-L for leather seating, a power liftgate, and additional safety features like automatic emergency braking, lane assist, and adaptive cruise control.

Honda CR-V prices vary quite a bit depending on mileage and year. For the most part, you can find newer-model used CR-Vs with fewer than 50,000 miles for $15k to $20k.

#5: Volkswagen Atlas

The Atlas doesn’t yet have a reputation among pet parents, but we think it soon will. The perks? A cavernous cargo area plus three rows of versatile seating. The CR-V, Outback, and Soul can’t match that versatility.

The third row of seats even features a 50/50 split so you can secure a dog crate and still keep one of the rear seats for passengers. Atlases are also available with tri-zone automatic temperature control, so passengers and pups alike can stay warm or cool no matter where they’re sitting.  

Volkswagen Atlases are still new to the market. A quick Internet search shows that you can find used models for as low as $25k in some areas.

Buy the car your dog deserves!

Your dog deserves the best. So do you. The pawfect dog-friendly car is waiting for you and your fur baby! Compare up to four used car loan or new car loan offers today and choose the best offer for you, then use your extra cash for some sweet dog treats!

Used Car Loans – Direct to Consumer

Direct to consumer used auto loans can cancel negative equity!

Yes it’s true.  Thinking of buying a used car?  If so, you’re making a smart financial decision.  New vehicles lose 20 to 30 percent of their value the moment a new owner drives them off the lot.  For many people, that means acquiring negative equity on their car loan balances right from the start.  By using a direct lender and buying a good used car, you can avoid this negative equity trap.

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Why Negative Equity Hurts

Negative equity is the amount over a car’s value that a person owes on it.  For example, if Joe owes $30,000 on his brand new car, but after driving it off the lot, it’s worth only $24,000, he has acquired $6,000 in negative equity.  The more Joe drives his new vehicle, the more it depreciates.  Because of this, Joe is going to be difficult for him to ever reduce his negative equity.

Joe may not feel the impact of this negative equity for many years; however, when he eventually goes to trade in the vehicle, he may get a surprise.  If his $6,000 negative equity amount remains even, he may try to trade the vehicle in while owing $10,000, only to discover it is worth $4,000.  He now must cover some of that negative equity or, (upon the purchase of another car), his negative equity hole will grow well beyond $6,000.  Eventually, there will come a day of reckoning, where Joe must cover the whole negative equity amount or be unable to purchase another vehicle.

Why Buying a Used Car Could Help

When you decide to go the used car route, you create much less negative equity at the time of purchase.  If you buy it close to its fair value, you may have some negative equity, but you’re still in pretty good shape.  The smaller amount of negative equity can be more easily covered with a down payment.  Making extra payments on used auto loans is another way to eliminate negative equity.

The Loan Matters

How much interest a consumer pays on their used auto loans makes a huge difference in the amount of negative equity they generate.  By choosing a used vehicle, you’ve made a one smart move.  Make a second smart move by opting for a used car loan that comes direct to consumers, available from money-saving sources like myautoloan.com.

Used car loans direct to consumer saves you the most money because you deal directly with the lender and there are no hidden fees.  When you obtain auto financing through a dealership, the dealer makes profit on the loan by adding percentage points to the interest rate, known as the reserve.  In addition, there may be dealer fees tacked on the loan, which you must finance at the higher interest rate.  Check out a finance calculator to see for yourself.

Adding hundreds or thousands of dollars to an auto loan balance never helped anyone avoid the negative equity trap.  In order to avoid this hassle, obtain used car financing direct from the lender before even setting foot on a car lot.  Having preapproved financing in hand before car shopping not only saves you on the financing, it also gives you negotiating leverage.  Learn more by checking out one of our handy guides.

Direct to consumer used auto loans can also be used for private party purchases. Purchasing from a private party with direct to consumer used car financing provides one of the best ways to prevent negative equity.  By getting both the car and financing much cheaper than possible through a dealer, you create the least amount of negative equity and possibly none at all.

People who decide to work with a direct lender for their used car loan direct save the most money and have the least negative equity.  When you avoid the depreciation of a new car and the extra financing charges of the dealership financing, you put yourself in a vastly better financial position.  Paying off a negative equity car loan is painful, let’s face it and it can become difficult to do.  To keep negative equity minimized, obtain used car financing direct from one of the lenders at myautoloan.com.  Having a choice is real empowerment!

Top 4 Mistakes When Refinancing Your Car Loan

Refinancing your auto loan means getting a new loan, typically one with a better interest rate. It could save you hundreds of dollars, maybe even thousands over the course of the loan. Saving that much money is exciting, right? Don’t let that excitement cause you to overlook simple details in the refinancing process. Watch out for these common auto refinancing mistakes to make sure you secure your best refinancing deal yet, all with a little help from myAutoloan.

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1. DON’T: Assume your credit is great

Refinancing is a smart move if your credit score has greatly improved since you first applied for an auto loan. If you’ve been making your car payments on time since you first purchased your car, whether for a few months to a full year, your credit score may very well have gone up. Maybe it’s pushing 700, maybe not. There could be errors on your report that are damaging your credit score, but you won’t know unless you check.

Check your credit with the three major credit bureaus, Equifax, Experian, and TransUnion. Report and resolve any errors before applying for refinancing to help make sure receive your best refi interest rate. Your new lender will run a credit check to determine the conditions of your refinance loan. Beat them to it!

2. DON’T: Go with your first refinancing loan offer

When you’re learning how to refinance a car loan, you might be tempted to think that all loan offers are created equal. Or, that you don’t have enough time to compare more than one auto refinancing offer. Well, you’d be wrong on both accounts.

Refinancing offers vary from lender to lender, company to company. Offers can even vary by day depending on events in the economy. If you take the first offer you apply for, you might not be getting the best loan terms or interest rate.

Do yourself a favor and compare multiple refinancing offers. You can visit multiple websites and financial institutions, fill out multiple applications, and then separately evaluate each offer one by one. OR, you can visit one website (like myAutoloan.com), fill out one application, and evaluate multiple offers side-by-side. Apply to refinance your car loan on myAutoloan and in a matter of minutes we’ll match you with up to four offers from trusted lenders. It’s one application, multiple loan offers.

3. DON’T: Refinance a car you can’t afford

Let’s say you bought a new car that was a stretch for your budget from the get-go. Maybe it’s a luxury coupe or convertible that lightens your mood, every time you hop behind the wheel. You’ve become attached to the car but not your monthly payments.

Refinancing a pricey car may look good on paper at first, but it could end up costing you more in the long run. Do the math. If you need to refinance to lower your overall car expenses, you might want to consider selling the car and buying a car that’s more affordable.

4. DON’T: Overextend the new loan terms

According to Investopedia, “Overextension describes a loan or extension of credit that is larger than what the borrower can repay comfortably.”

Refinancing your current auto loan should make you feel more comfortable, not less. Overextension can happen when you extend the loan terms beyond your means. You pay less, but for longer.

A 36-month loan refinanced to a 60-month loan will lower your monthly payments, but those lower monthly payments will come at a cost. The longer you finance a car, the more interest you’ll pay on it, and that’s on top of more financing charges over time. If you’re in a long loan now, refinance for a shorter term.

Longer loan terms come with more drawbacks than one. Downsides include:

  • Negative equity (and an upside down car loan)
  • Low vehicle resale value
  • Getting tired of the car before your loan term ends

At myAutoloan, we’re here to help you avoid auto refinancing pitfalls by giving you the power of choice–all with no pressure. Compare up to four auto refinancing offers today and make your choice, at your own pace and on your own time.