Category Archives: New & Used Auto Loans

Does Shopping for Car Loans Hurt My Credit?

If you’re fearful that a car loan application will hurt your credit score, then this is the blog for you. Follow along as we explain how the top three credit reporting agencies typically roll multiple auto inquiries into one inquiry on a continuous, 14-30 day cycle, and why applying for a car loan typically won’t hurt your credit.

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Car Loan Shopping Doesn’t Hurt Credit

While shopping for credit can sometimes signal bad news bears to creditors (i.e higher risk), most credit scores aren’t drastically impacted by multiple inquiries from auto lenders within a short period of time.

The top three credit reporting agencies (TransUnion, Experian, and Equifax) understand that people are typically going to shop around when searching for the right auto, home, or student loan. After all, not all financing companies and loan offers are created equal! Shoppers may find varying interest rates and payment plans depending on where they go and when they apply. It’s all about finding the right loan offer for you and sometimes, it takes more than one loan offer to get there.

Lenders also know that you’re probably not trying to buy multiple homes or cars–you’re just trying to find the best rates and terms. Credit scoring systems have evolved over time to reflect this reality.

But You May See Multiple Inquiries on Your Credit Report

While your credit score isn’t likely to take a hit when applying for car loans, you may notice multiple inquiries on your credit report. Each time your credit report is reviewed by a different lender, an inquiry will appear showing who accessed the report and why. This is technically called an “inquiry,” though you may also hear “check” or “pull.”

Inquiries include information about who’s making the inquiry, what it’s for, the date it’s made, and the type of inquiry.

Experian, for one, will list each inquiry that is made in your file for two years, but these inquiries will only be counted as one inquiry when calculating your credit score.

That said, you want to apply for credit wisely. Don’t spread out your loan applications over a long period of time, as this will spread out the credit inquiries, too. As long as inquiries are made within about 14 days, they are counted as just one when your credit score is calculated. Space them out too much and you run the risk of having them be counted as separate inquiries.

And Certain Inquiries CAN Impact Your Credit Rating

A single hard credit inquiry typically won’t play a major role in whether or not you’re approved for financing. Lenders understand that most people compare loan options when buying something as big a house or car.

Still, it’s not a good idea to apply for a bunch of different credit cards and loans at one time. Multiple hard inquiries for different types of credit in a short period of time can signal to lenders that you’re in a financial pickle. They may assume you’re having trouble paying bills, getting ready to rack up debt, or that you’re short on cash—all signs that you could be a risky loan recipient.

Examples of hard inquiries include applications for a mortgage, auto loan, credit card, student loan, personal loan, or apartment rental credit checks.

The lesson? Only shop for one type of loan at a time and don’t drag out your financing applications over a long period of time. If your credit has been hurt in the past, work to build a healthier credit score by paying your bills on time, having a low balance on your credit card, maintaining a long credit history, and applying for new credit sparingly.

Go the Easy Route, with myAutoloan

myAutoloan is one of the fastest routes to smart auto financing. There’s no need to submit multiple applications in order to view multiple offers, and no need to navigate to different websites. Just submit one application and view up to four offers in a matter of minutes. Our applications are free, fast, and easy, and we’ll never pressure you to use one of our lenders’ offers or loans. Apply worry-free to buy the car you want. When you have nothing to lose, why wait?

Ideas on Getting the Best Used Car Finance Rates

Ways to Get the Best Used Car Finance Rates

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Getting financed for a used car can sometimes seem like an overwhelming and daunting task, but it doesn’t have to be. Finding the best used car finance rates can only occur when you take the time to research and understand the various advantages and disadvantages of different financing alternatives. There are a number of things to take into consideration when searching for financing solutions:

Credit Score

This is an important factor to take into consideration when searching for used car financing options. Many times, your credit rating will be the determining factor in whether or not you are approved for financing. Getting used car finance approval will likely be made difficult if your credit score is less than satisfactory, which means that you have had late payments, missed payments or underpayments on past credit cards or loans. Essentially, the financing agent will use the credit score to determine how likely you are to make payments on time based on your previous credit history. If approved, this may also determine how high your payments are and how long you are able to be financed. It’s not likely but It is also possible that you may be required to have a co-signer in order to be approved.

Income

Another vital consideration in used car financing options is your income. The financing provider will take into consideration what your monthly income is before determining a proper payment plan. The lower the car payments, the longer the period of financing will be. To get the best used car finance rate, try to stick with a car that you can have paid off within 12 to 18 months. Yes, that is not always possible but it’s worth the effort to see if this is something that you could make work for you. This will help to insure that you do not face additional or higher rates, yet the loan period is sufficient time to dramatically improve your credit rating. If you are required to have a co-signer to obtain used car financing, keep in mind that his or her income will likely be included in determining the finance rates.

Research

As you know, some car dealerships have their own financing agency on the lot, others go through an outside bank to finance the auto loan for their customers. Those that finance on the lot are often easier to obtain financing through because they focus more on income and less on credit scores, a valuable trait to the customer who has a blemished credit history. You might want to learn more about how this process works so it might be beneficial if you take time to review a Guide on Auto Financing. The key to finding the best financing rates is taking the time to search around before making a decision. Purchasing the first car that you qualify for is not always a good idea because it could leave you with higher rates than you would have faced if you had done a bit more researching before making a purchase.

Getting a good auto financing rate is challenging but not hard. Learn as much as you can and understand the process of auto finance. Make the effort and you will come out ahead when you move forward to buy and finance your next new or used auto loan. Good luck and good shopping!

Why Memorial Day Weekend Is Best Time to Buy a Car

The start of summer is a time for cleaning up, starting fresh, and saving big. Think neighborhood yard sales, beach vacations, and block party picnics! Hands down, it’s also the best time to buy a new car. Could summer be any more awesome?!

Memorial Day weekend, along with the month of June, is the absolute best time to buy a car. Find out what makes this time “the best time to buy a car” and how you can maximize your savings on a new car purchase.

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When It’s the Best Time of Year to Buy a Car…

Leverage the Dealer Inventory

Just like you feel the need to clean out the garage and comb through the attic at the start of summer, in a way, so do car dealers. Auto dealership need to clear inventory to make space for next year’s models, which come out around August. Memorial Day weekend is early enough in the year that there’s also leftover inventory of brand new vehicles from the previous year.

Inventory levels are in your favor through June. You can not only get a new car, but also a huge discount and sometimes a warranty that starts at the time of purchase.

Look at cars that are being phased out or replaced with newer models, as they’re more likely to be deeply discounted.

According to TrueCar data via CNBC, May proves to be one of the best months to get a great deal on a car, especially if you’re looking to buy a family-oriented midsize SUV.

Be an Informed Car Shopper

Walk into the dealership equipped with knowledge (and auto financing). You’re in control when you know the incentives and rebates, and already have your financing secured. Dealers will look at you like a powerful cash buyer. Plus, auto manufacturers love showcasing some of their best deals over Memorial Day weekend. If you’re flexible on the make and model of your new car, you can maximize your savings by narrowing your search to only these vehicles.

According to U.S. News & World Report, the best Memorial Day new car deals include:

  • 2018 Buick Enclave – Lease deal of $389/month for 39 months with $2,989 due at signing; the deal includes total of 32,500 miles
  • 2018 Nissan Sentra – Lease deal  of $149/month for 36 months with $3,249 due at signing; the deal includes 12,000 miles per year
  • 2019 Jeep Cherokee – Purchase deal of up to $2,000 cash bonus
  • 2018 Fiat 500X – Purchase deal of up to $1,750 cash back
  • 2018 Ford Focus – Purchase deal of $4,000 cash back
  • 2018 Toyota Avalon Hybrid – Purchase deal of $5,000 cash back
  • 2018 Chevrolet Cruze – Purchase deal of $2,000 cash back

Call ahead and check with your local dealership to confirm that these deals are available in your area. Manufacturer-backed lease deals and cash back offers offers can vary around the country.

Secure Financing Ahead of Time & Don’t Give Up!

Can’t buy a car at the best time of year? There’s still plenty of savings to be had, especially if you secure auto financing before you arrive at the dealership. With financing in hand, you’re ready to get the best pricing on your new or used car. You’ll know how much you can afford and how your purchase is going to fit into your budget. Plus, you’ll be treated like a powerful cash buyer.

Other great times to buy a new car include:

  • The week between Christmas and New Year – Look for sweet deals on leftover models and large rebates on all remaining models
  • January and February – Consider the most recent models, as manufacturers tend to raise prices as the year goes on
  • President’s Day, 4th of July, and Thanksgiving weekend also top our list for great times to buy a car

Move fast to make your Memorial Day dreams of buying a new car a reality. Summer will be over before you know it! Get the auto financing you need, fast, with help from myAutoloan. Whether you want to buy a new car or a used car, you can submit one car loan application and compare up to four offers today. Don’t miss out on one of the best times to buy a car!

 

How to Refinance Your Car Loan & Save Money

If you’ve ever refinanced your home mortgage, you know that refinancing can come with plenty of headaches and paperwork. Such an experience may keep you from refinancing your car, too. Is it really worth it to refinance your car loan? In many cases, yes! Refinancing can lead to less stress and big monthly savings. Plus, it’s much easier and faster than you could ever imagine. We’ll walk you through how to refinance your car loan the simple way.

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5 Steps to Refinance Your Car Loan

1. Evaluate your current car loan situation

While there’s almost never a bad time to refinance your car loan, some moments can prove better than others. How do you know if it’s time to make your move? Look for these signs:

  • Interest rates have gone down since you originally bought your car
  • Your credit score has greatly improved
  • Your income has increased or decreased
  • You’re unhappy with your current car loan
  • You want to remove or add co-signers to the loan

If any of these reasons sound familiar to you, keep reading and follow our steps to refinance your car loan.

2. Gather your documents

Make the refinancing process go as quickly as possible by having the right information ready to go. Note that the first three pieces of following info can be found on the monthly statement from your lender. Before refinancing, make sure you know:

  • Your current monthly payment amount
  • The amount of time you have left to repay your loan (in months)
  • Your current interest rate
  • Your driver’s license number
  • Your car’s VIN number
  • Pay stubs from current employer
  • Your Social Security number

3. Apply to refinance your car loan!

Now for the fun part. (We say this because saving money is always fun!) You have a few options here. 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, fill out one application, and evaluate multiple offers side-by-side within a matter of minutes. The first option wastes valuable time. The second option gives you more time and more choice. 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.

4. Choose the best loan offer for you

When you refinance your car, a new loan is used to pay off your existing one. The refinanced loan is a new contract between you and the lender, with a potentially different interest rate, term, and monthly payment.

Choose the refinance loan offer with the interest rate, loan term, and monthly payment that works best for you and your current situation.

5. Wrap up the refinancing process with the lender.

Once you select the best refinance car loan offer for you, your lender may ask you to complete some additional paperwork. They may send it to you via overnight mail or make it available to you online.

The lender will complete the underwriting process on your behalf, contact your current lender (if different from your new one), and arrange a payoff of your old auto loan. Then you can consider your car refinanced!

But will refinancing save me money?

Yes, refinancing really can help you save money.

LauraKay, a myAutoloan customer, was able to save $100 a month on her car payment by refinancing her car loan. That’s thousands of dollars in savings over the course of her loan.

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“I was able to save almost $100 a month on my car payment,” says LauraKay. “Went from 16.75% due to my age and no credit history at the time to 3.10%.”

Renee was also able to drop her payments and her interest rate by refinancing.

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“I was able to get my car refinanced from 24% interest down to 10% and my payments dropped over $100. I am very pleased with my experience!”

Another myAutoloan customer was stuck in an unfortunate situation with an upside down car loan. Refinancing helped them lower their interest rate and monthly payments by almost 50%.

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“I couldn’t get a refinance on my upside down loan anywhere, I was paying a super high interest rate over 20%!!! MyAutoloan found me a financer who lowered my interest and monthly payments by almost half! The process is smooth and almost effortless in securing a refinance. I would recommend this site for anyone with a high interest car loan at least 1-2 years into the loan.”

Refinance your car loan today

What are you waiting for? Take charge of your old auto loan. Complete your refinance application online and get matched with up to four refinance offers in minutes. Don’t wait—interest rates could change tomorrow!

5 Fresh Ideas for How to Keep Your Car Smelling Good

Between the dog, the kids, their sports equipment, and all the dirty shoes that come in and out, it can feel impossible to keep your car smelling fresh and clean. Wouldn’t it be great if you could hold on to that coveted “new car smell” forever? Maybe you can. Whether your car is brand new or just new to you, here are five low-cost ways to keep your car smelling awesome for months to come. These tricks will help fight bad car odors for good!

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How to Keep Your Car Smelling Good

#1: Laundry Scent Boosters

This trick is perfect for the guy or gal who loves the smell of fresh laundry. Stob by the dollar store or your local Wal-Mart and buy a pack of sheer organza bags. You can get a pack of 10 for less than $5. These little bags are often used to hand out wedding favors, but they can pull double duty to help keep your car smelling fresh, too.

Next, fill the organza bags about halfway full with your favorite laundry scent booster, like Downy Unstoppable or Gain Fireworks. Place the bags under your seats and in the car doors for a vehicle that smells as fresh as a daisy.

Pro-Hack: Don’t have any scent boosters to spare? You can also open up a new pack of dryer sheets and stick the whole package under the driver’s seat. Then when you’re in a pinch and smell like cigarettes, the gym, or a double bacon cheeseburger, just grab a dryer sheet and rub it all over your clothes. You’ll smell like you pulled your clothes right from the laundry!

#2: DIY Fabric Refresher

Sure, you could buy a bottle of fabric refresher from the store for around $5 or $6, or you could make your own with stuff you already have at home. Try this trick to keep your floor mats and fabric car seats smelling like they’ve never seen a french fry or wet sneaker.

Make your own car-friendly fabric refresher by combining 1 part liquid fabric softener, 1 part baking soda, and 2 parts warm water in a spray bottle.

  1. Using a funnel, pour 1 part baking soda into a spray bottle.
  2. Fill with 2 parts warm water.
  3. Add 1 part liquid fabric softener.
  4. Close bottle and shake.
  5. Spray on your car seats and floor mats.
  6. Enjoy affordable freshness!

NOTE: Do not try this on leather, faux leather, or suede interiors. When in doubt, test this homemade spray on an inconspicuous area of your upholstery before you spray it throughout your car. Baking soda is a safe, natural, and effective odor absorber even when dissolved in a liquid, however, you can never be too safe when it comes to the interior of your car.

#3: Bring Out the Baking Soda

Yes, we’re still talking about baking soda! Baking soda is a rockstar when it comes to deodorizing and cleaning. It’s especially great at absorbing pet, baby, and smoke odors.Plus, a box often costs less than a $1. It’s essentially a miracle powder for frugal-minded drivers!

For fabric upholstery and carpeting, sprinkle baking soda on spots and stains. Rub into the fabric with a brush or towel. Let sit overnight. In the morning, vacuum your car and enjoy an odor-free drive for days.

#4: Candles and Wax Cubes

There are a few different ways you can use scented wax cubes or unlit candles to freshen up your ride. One option is to put scented wax cubes into a half-size mason jar. Screw on a top with holes to create a DIY air freshener that you can place under your seat or in a cup holder. Your car will smell better and better as the wax gets softer and softer!

You can also keep an unlit candle in one of your cup holders. As your car heats up, the candle will release your favorite scent, whether it’s fresh cut roses, lavender vanilla, or clean cotton!

#5: Replace a Dirty Cabin Air Filter

If you’ve never replaced your cabin air filter and you’re dealing with a stinky car… this one’s a no-brainer. It’s definitely time to replace your cabin air filter! This filter is designed to keep the air inside your vehicle’s cabin clean. It’s job is to filter the air that comes through the car’s HVAC system to prevent dust, pollen, smog, and mold spores from entering your car.

Mechanics generally recommend that you have this filter replaced every 15,000 to 25,000 miles, or once a year. Thankfully, changing a cabin air filter is a do-it-yourself project. Cabin filters are relatively cheap (around $15 to $25) and you can turn to your owner’s manual or YouTube for instructions on removing and replacing this filter.

Maintain Your “New Car Smell”

The best way to keep your car smelling good is to deal with messes as soon as possible, avoid smoking in your car, clean it on a regular basis, and deodorize as soon as a bad smell invades. Even so, knowing how to keep your car smelling good doesn’t mean it’s easy to do.

Sometimes, it doesn’t matter how clean you keep your car, how fresh it smells, or how shiny the windows are. Every car feels less than new at some point. If you’re ready to upgrade your ride, apply for a car loan on myAutoloan today. We’ll connect you with up to four car loan offers that match your needs, and we’ll do it in just a few minutes— that’s faster than you can vacuum your floorboards!