Category Archives: Tips & Insights

4 Key Ideas for Getting an Auto Loan

Shopping for a new car is mostly a pain – it is from my perspective anyway and over time, there are things that can be shared to make this process a lot easier. To start with, getting pre-approved is one of the best things you can do.  The “Why” is very obvious if you have ever spent 3 hours in the “Penalty Box” at a car dealership!  It’s all meant to wear you down and keep you invested in the “buying” process.  The loan process can seem like a daunting and difficult process but it is not.  I’ll share a few things that can make this easy.  Here are a few tips for getting a car loan the easy way.

  1. Know How Much You Want to Spend

If you already know what you have to spend, great! So many car buyers really don’t know until they get on the dealers’ lot. If you don’t have a budget set, list your monthly income after taxes and subtract all your monthly expenses. If you are trying to save, don’t forget to put that on the list as to how much you want to put back. Consider that if you end up with being able to afford $600 per month, that is could take away from your monthly savings. If you have annual expenses that come in once a year, just divide the total expense by 12 and add to your monthly worksheet. One more thing to consider – You will have some “new car costs” from your purchase so don’t forget to add insurance, registration, car maintenance and possible repairs to your list. Keep working with the numbers until they come in at a range that will make your car easy to afford.

2.  What Can you Afford

If you have done your due diligence, you are now close to understanding and deciding on a reasonable monthly car payment that will fit your budget. Now, with a payment amount in mind it is smart to utilize a car payment calculator to get an idea of a total dollar amount you can establish for your car purchase.  You can use auto loan calculators to get an idea of interest rates, monthly payments and total costs that you are able to afford.  You can choose if you want a 36, 48 or 60 month loan and it calculates all the above for your convenience.  Knowing this puts you in a much better position to work with the dealership and can help keep you out of the lengthy negotiations with the finance manager.

3. Get Pre-Approved

You can now take control of the auto financing process by getting preapproved for your auto loan before you ever step on the dealers’ lot. Getting multiple loan quotes is an outstanding way to be in charge of your loan process.  Go online and see who offers multiple loan quotes and apply.  This is the best way to get the best interest rates, best terms and be in control of the loan amount that you can afford.  Since most loan offers online are only good for up to 30 days, make sure you are ready to get out and find the auto you want.  Know that some offers have stipulations attached to them but if you use a lending platform, you can get real auto loan offers in real time and they are all good at franchised dealers.  The better your credit, the better the offers as the lenders will try to be a competitive as possible to earn your business.

4. Start Shopping

Now the fun part begins – shopping for your new wheels. Make sure you do your homework and do some research to find the autos that will fit your needs the best. Consider things like miles you drive, MPG, color and size of car that you want and any extra features that you are looking for. If you do your research up front, you are going to be in a great position to come out on top when you finalize all the details. By using these steps, you’ll be in a position to not only find the best auto financing, but the best value auto. Be prepared. Be smart. Success!

 

How Your Credit Score Could Affect a Car Loan

Is there a connection between your credit score and your ability to get a car loan? What if you’re trying to buy a car even though your credit is less than perfect? Here’s what you need to know about credit scores and car loans.

What do I need to know about credit scores?

First, the basics about credit scores. Your credit score is a 3-digit number that will fall between 300 and 850, with 850 being a perfect score. This number is calculated based on your financial history, which is comprised of factors like your ratio of debt to available credit; the length of your managed credit history; the number of credit types you’ve managed; your recent credit inquiries; and your bill payment history. You can get your credit score for free by contacting one of the 3 major credit bureaus—Equifax, Experian, and TransUnion.

For a more detailed breakdown of credit scoring, see our articles about Understanding Credit Scoring and Tips for Improving Your Credit.

How are credit scores and car loans connected?

Your credit score helps lenders determine whether it may be a risk for them to lend to you. A higher credit score indicates better reliability, since lenders are considering your past financial activity to be indicative of your future activity. As such, a lower credit score may mean you’ll be charged a higher interest rate for your car loan (we’re talking up to 20%). Does that mean there is a minimum credit score to get a car loan? Not necessarily. It will vary from lender to lender.

Can I still get a car loan with bad credit?

It’s certainly possible to figure out how to get a car loan if you have bad credit—you just need to go about it the right way. One of the best things you can do is partner with a specialized lender that is willing to work with customers who have bad credit. To find one, start with a bad credit auto loan direct lender like myAutoloan.com. This will allow you shop around and get multiple offers to find the right lender for your situation.

Want a full breakdown? Read our 5 Steps to Find a Car Loan with Bad Credit.

Think You Don’t Have Enough for an Auto Loan Down Payment? Think Again

Many car owners-to-be think that if you don’t already have the money for a down payment, you’re out of luck when it comes to getting an auto loan. But in many cases, that may not be true! Here’s what you need to know about getting an auto loan with a small down payment, or even no down payment at all.

What Is an Auto Loan Down Payment?
A down payment on a loan is a kind of guarantee to the lender that you will be able to follow through on your loan. Whether or not a lender requires a down payment on a loan will depend on the lender’s policies.

How Can You Get an Auto Loan without the Money for a Down Payment?
The way it works may vary from lender to lender. Some lenders offer a loan without asking for a down payment, but some lenders may require you to put down up to $1,000, or else 10% of the sales price. If you are trading in a car, another option is to use your trade-in as a down payment. In the end, you’ll need to work with your chosen lender to determine what your specific down payment requirements are going to be, but know that it is possible to get an auto loan with less-than-perfect down payment choices.

What’s Next?
Once you find a lender that will meet your down payment needs, you’ll need to figure out what your loan amount should be. Use an auto loan calculator to figure out the amount based on your payment preferences. You can also figure out what type of interest rate to expect and what your payment amount would be, given a certain loan amount.

Learn More
For help securing an auto loan, work with myAutoloan.com to find the best lending solution for your needs. You can also check out myAutoloan.com’s resources to learn about the process of the basics of auto financing.

Understanding More About Direct Auto Loan Lenders

When coming across online auto loan lending companies, you might be surprised to learn that very few are actually direct lenders. Many of these online entities are brokers or companies who sell applicant data to other brokers or direct lending companies who can issue a loan.

Here at myAutoloan.com, our stance has always been, “Why have a middleman?” We feel that direct lending gives our applicants more informed options when choosing the right loan for them. Worried about direct lending having a difficult or lengthy application? Don’t be – the direct lending application is very similar to indirect lending and takes just as much time.

How It Works
For direct lending, a loan application is completed by an applicant online. The application is then transmitted to the direct lending company’s automated application processing system. From there, a credit bureau report is accessed and a credit score is computed.

Based on this information, the direct lending company’s proprietary automated underwriting system can then approve or decline the applicant. The applicant is then notified of the direct lender’s assessment and can determine if they need to find another lender or wish to continue with the rate they’ve been offered.

Next Steps 
All credit decisions made via the direct lending company’s automated application processing system are valid for a 45-day period. Declined applicants will receive proper notification indicating their declined application.

Want to Apply? 
Get started on your new myAutoloan.com car loan today. With just a couple clicks, you can be on your way to owning the car of your dreams. Apply with our direct lending application today!

myAutoloan.com – 2014 Best of DFW Texas Award

It’s always nice to be recognized.  Our goal is to provide the same positive choice, all across the USA.

FOR IMMEDIATE RELEASE

myAutoloan.com Receives 2014 Best of DFW Texas Award

DFW Texas Award Program Honors the Achievement

DFW TEXAS June 5, 2014 — myAutoloan.com has been selected for the 2014 Best of Dallas-Ft. Worth Texas Award in the Automobile & Consumer Finance Companies category by the Dallas-Ft. Worth Texas Award Program.

Each year, the Dallas-Ft. Worth Texas Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category.  These are local companies that enhance the positive image of small business through service to their customers and our community.  These exceptional companies help make the Dallas-Ft. Worth Texas area a great place to live, work and play.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2014 Dallas-Ft. Worth Texas Award Program focuses on quality, not quantity.  Winners are determined based on the information gathered both internally by the Dallas-Ft. Worth Texas Award Program and data provided by third parties.

About Dallas-Ft. Worth Texas Award Program

The Dallas-Ft. Worth Texas Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Dallas-Ft. Worth Texas area.  Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.

The Dallas-Ft. Worth Texas Award Program was established to recognize the best of local businesses in our community.  Our organization works exclusively with local business owners, trade groups, professional associations and other business advertising and marketing groups.  Our mission is to recognize the small business community’s contributions to the U.S. economy.

SOURCE: Dallas-Ft. Worth Texas Award Program CONTACT: Dallas-Ft. Worth Texas Award Program