1.    Check your credit report. If possible, get a copy of your report three to six months prior to your car purchase. This will give you time to request corrections on incorrect information and make payments on outstanding debt. It can take a few months for the credit agencies to update information on your report and adjust your score appropriately.

2.    Know what you can afford. Define a reasonable monthly payment that you will not go over when buying a car. Then, use online calculators for car loans to determine what price, interest rates and loan terms will fit within that budget. Do not agree to terms that do not comply with your needs.

3.    Shop around by looking at vehicles online and at local dealerships. Even if you know you will deal with a certain company, come prepared to haggle with competitor pricing or information about special offers.

4.    Make the most of cash back and other manufacturer specials. If you a considering a car purchase in the next year, you should keep an eye out for advertisements or online information about offers. This is especially true toward the end of the year when the industry is preparing for the next line of models.

5.    Have a down payment ready, if possible. Down payments for car loans can take the form of a paid-off trade in or cash. Depending on the type of car you are looking to purchase, you should have between $1,000 and $5,000 value in down payment. Most financial institutions will not require this much or may not require a down payment at all. However, the more you are able to put down, the more flexible your purchase options will be.

6.    Be aware of your finance options. Research online to discover suitable loan companies. Through sites like MyAutoLoan, you can even apply for pre-approved car loans, providing instant leverage for haggling at a dealership. When you already have financing, you are less dependent on the dealership and can concentrate on getting a great deal.

7.    Research all the options ahead of time and write down the list of extras you really want. Do not let yourself be talked into spur of the moment decisions on things like warranties, special coatings or entertainment systems.

8.    Be sure you know what options are available on your vehicle of choice. If the dealership does not have a vehicle with the options you want, ask if they can order it or get it from another dealership.

Putting a bit of extra work in before you arrive at the car lot can make the entire experience less of a hassle. It is especially important when dealing with car loans to have your ducks, paperwork and expectations in a row.

Co-Buyer Verses Co-Signer

Many new car loans require a co-signer, especially if the buyer has no credit history or has poor credit history. A co-signer is required in cases where lenders feel the buyer is too big a risk. They want a backup plan in the form of someone who agrees to foot the bill if the buyer does not make good on the loan. The buyer must still meet minimum income requirements for the loan, and the co-signer’s income is not involved.

In contrast, a co-buyer is actually a buyer too. Most often, co-buyers are spouses. They could also be closely related individuals who reside at the same residence or even business partners. Co-buyers can combine their income in order to qualify for the loan, and they are both responsible for monthly payments.

Debt Ratio

Many people do not realize that debt ratio is an important factor in whether or not new car loans will be approved. If you already owe more than your income indicates you can pay, a bank is less willing to take a risk on you. You can calculate your debt ratio by adding up all your monthly bills. Divide this amount by your monthly pay. For example, if you need $1,500 per month to pay your debt and you make $3,000, you have a debt ratio of 1/2, or 50 percent.

GAP Insurance

This insurance covers any amount you still owe on new car loans that is not paid off by the insurance company in the event you total the car. For example, if the car is worth $8,000 and you still owe $10,000, the insurance will only pay what it is worth. Assuming you have a $500 deductible, GAP insurance means you pay $500 instead of $2,500. Some GAP policies even cover the deductible. It is important to note that GAP insurance comes from a third party vendor, not the dealership or the bank.

Loan to Value

The LTV is the ratio of how much you are borrowing to the actual value of the vehicle. Obviously, you would not want to pay more for a car than it is worth. With new car loans, however, there are fees, taxes and other items that may cause the total financed to be above the value. You could also affect the LTV by trading in a car with negative equity. The lower an LTV, the better chances are that you can find a lender.

By understanding some terminology about new car loans, you are in a better position to read and understand your loan paperwork. This means you can spot issues and ask the right questions to promote savings.

Debt to Income

The first step in determining how much of a car loan you can afford is to look at your debt to income ratio. In fact, a bank will look at this as well before they offer financing. Your ratio is determined by taking the amount of money necessary to make payment on existing debt each month and dividing it by the amount of your monthly wages or income. For example, if you need $1,000 to pay your mortgage, a student loan and a credit card and you make $3,000 each month, your ratio is 1/3 or approximately 33 percent. The ratio allowed before a bank will not provide you a loan depends on the bank, your credit history and other factors.

Calculating Actual Expenses

On paper in the above scenario, it looks like you have $2,000 each month left over after bills. However, that only includes your recorded debt. You also probably have to pay utilities, phone charges, insurance and other items each month. In addition, you must spend some portion of your income for groceries, clothing and incidentals. In order to determine how much you can afford for a car loan, you need to calculate your actual expenses. Assume you also have $500 in monthly bills from various sources, you spend $200 on groceries, $150 on fuel, $100 on clothing and $100 on entertainment. That is another $1,050 per month, leaving you with $950 after regular expenses.

Leave a Buffer Zone

Here is where many people run into trouble. After the above calculations, they determine they can afford anything up to $950 per month to pay a car loan. Most people will not go into the dealership intending to spend that much, of course. They may set a goal of $350. Once taxes and other things are added, they may end up with a monthly payment of $400. That leaves $550, which may seem like a great buffer. Depending on your situation, that sort of buffer may allow you to save some money, cover unexpected items and have a bit left over. When you decide how big your buffer should be, however, you need to keep the unexpected in mind.

In the end, how much car loan payment you can handle is a personal decision. Taking the time to organize your finances will allow you to gather all the knowledge and data you need to make the right call for your situation.

Numerous Offers for Change

When you apply for an auto loan at MyAutoLoan.com, you will receive up to four offers from various lenders. You can choose to accept any or none of the offers, so you do not lose anything with the application. In fact, you only stand to gain. If any of the offers include lower interest rates than you have with CitiFinancial Auto or your current lender, you can save hundreds or thousands of dollars over the life of the loan. Since it only takes a few minutes to complete the application process, that is like making a couple thousand dollars an hour. Talk about a way to get your finances in order and get out of debt faster.

Change for Friendlier Service

There are some companies who seem to spark many customer reviews online. CitiFinancial Auto is one of those companies. While these lenders may work fine for many people, they may not be working for you. If you are dissatisfied with the customer service of your current lender, it may be time for a change. If you have experienced any payment issues or billing mistakes and the company did not resolve the issue, it may also be time for a change. Many people who are not happy with the service or policies of their vehicle loan provider often think they are stuck until they can pay off the loan. This is not true, because there are plenty of companies willing to accept your business. Lenders like CitiFinancial Auto are not doing you favor by lending you money. They are making money on the deal just like any service company.

How to Make the Change

There are two ways you can get away from a lender without affecting your credit score in a negative fashion. The first way is to pay off the loan with cash. Although this will cut ties with the lender and reduce your debt, it is not always practical. If you do not have enough money to pay off the loan with cash, you can pay it off with money borrowed from another lender in an auto loan refinance. By visiting MyAutoLoan.com and completing a credit application, you take the first step toward making that change. Once you receive the offers, you can choose any lender you want. For the best results, you can research each lender online to ensure they do offer the level of customer service you are looking for.

You never have to stick with a lender such as CitiFinancial if you are unhappy with service or loan terms. You can always complete an application through MyAutoLoan.com to see what your other options are.

1.  Do not max out your credit cards or any other lines of credit. The ratio of debt to credit limit affects your credit score in a big way. A recent run on credit also looks suspicious to some banks. It makes it look like you are in the midst of financial distress and may be a high investment risk. If you do use your credit cards to pay for something like a vacation or large appliance, try to pay them down before seeking a car finance loan.

2. Do not miss payments on other debt obligations or allow accounts to reach the point of collection. Pay all bills in a timely manner and work with companies to develop a satisfactory resolution if issues do occur. Late payments can drop your credit score quickly.

3. Do not apply to dozens of institutions when the first four or five offers did not meet your needs. Every time you complete an application, there is a hit on your credit report. Each hit can reduce your credit score by several points, making it even harder to get a loan. If you want to shop around for a loan, consider applying with an online service like MyAutoLoan.com. You complete one application and receive several loan offers.

4.  Do not provide your personal information to companies you are not familiar with or have not researched. This is especially important online. Make sure you are entering your information on a secure server and the company in question spells out their privacy policy. Any time you are completing an application online for a car finance loan, ensure the site address in your browser begins with “https.” Some sites online are scams, seeking to steal your identity.

5. Do not enter a car dealership without preparing. You should have at least some idea about what vehicle you are looking for and how much they sell for in various places. You should also be prepared with information for financial purposes. If you have not received a pre-approved car finance loan offer, you should at least have your financial information with you for application purposes.

By avoiding some common notions about car finance loans, you can increase your chances for obtaining financing for your new car purchase. In addition to doing all the things financial experts advise before getting a loan, you should also avoid behavior that will make you look like a risky investment. Following these do nots will put you in a stronger position when completing a credit application and bargaining over a vehicle.

Riding the Interest Wave

During 2008, the average instant rate for someone with excellent credit who was buying a new car on 60-month terms was around 6.5 percent. Some people were able to obtain lower rates and others did take advantage of occasional temporary zero percent offers. However, some people saw even higher rates and subprime borrowers struggled to win approval for auto finance loans. In late 2011, however, the average rate for an excellent buyer dropped to a bit under 4 percent.

Bank Verses Credit Union

Regardless of your credit history, if you are looking to finance a vehicle purchase in the current environment, you may want to consider a credit union loan. In 2011, the average interest rates across all types of loans and for all types of buyers was about a percentage point lower at credit unions than banks.

Shopping Interest Rates

Not all financial institutions have reacted to the recovering economy in the same way. Many lenders have kept restrictive requirements, making it harder to get auto finance approval from them than with competitors. This is why it is important to shop around for the best interest rate. At the same time, you do not want to put in multiple applications during a short time period. Half a dozen or more pings on your credit report will lower your FICO score, making it less likely you will get the rate you are looking for.

If you want to shop for interest rates and auto finance options without completing credit applications with multiple lenders, you can consider the solution offered by MyAutoLoan.com.  With MyAutoLoan.com, you complete a single application that is reviewed by multiple lenders. Lenders who are willing to offer you an auto finance solution send a proposal through the website. You can review the offers and decide which one is right for you. This means you can see interest rates from multiple lenders easily and without spending a great deal of time on the process.

New Verses Used

In the current market, borrows with excellent credit ratings have no issues obtaining financing. Excellent is a score of 680 or higher. Those with subprime credit, or a score of 619 or below, may find the search for auto finance approval a bit more difficult. Many lenders are requiring 20 percent down on new car financing for these buyers. This means a $20,000 car loan would require a down payment of $4,000. Experts state data for car loans throughout the past year seems to indicate that those with subprime credit situations will likely have more luck in the used car market.

Make a Change for Better Service

If you went to a restaurant and the wait staff was extremely rude or the food was served cold, you probably would not return the next night. Even if you were willing to give the place a second chance, if the problems were repeated, you would take your appetite and money elsewhere. It may be possible to do the same with your vehicle financing. Although stellar credit will make car loan refinancing easier, you may be able to find another lender even if your credit is only fair. Begin by looking online for reputable lenders who are willing to refinance vehicle loans.

Make a Change to Save Money

Sometimes, individuals purchase a vehicle at a higher than desired interest rate due to poor credit history. Some people go ahead with the interest rate because they need the car for work or other purposes and cannot afford to be without a vehicle. If you were in such a situation, but have corrected your finances over time, you may be able to command a better interest rate. Instead of sticking with the current loan structure, check out options for refinancing. Something as small as half a percentage point in interest could save hundreds or thousands of dollars over the life of the loan. When dealing with a high interest financial arrangement, the sooner you make a change for the better, the more you save.

Make a Change to Optimize Your Budget

If you are on a tight budget or financial plan, the day your car payment is due each month can make a huge different. For example, if the car payment and mortgage are due in the same week, it might be hard to stretch your paycheck during that time. Some banks will work with you to change the due date for your loan, but others are not willing to do so. If you need a change in payment date or loan structure, you might consider car loan refinancing as a way to optimize your budget. You should only make such a move if you can secure a loan that will not cost more in fees or interest, however.

Car loan refinancing is a great way to correct past financial mistakes or get ahead with current debt. When done properly, refinancing can save money or provide a way to pay off bills faster. You should only refinance your automobile loan through reputable banks or online lenders and should never use credit cards to refinance your vehicle loans.

About the show:
Tire Kickers Radio covers the business of buying, selling and leasing automobiles. This show lets you peak under the hood and see behind the scenes of the automotive industry. 411 for automotive sales professional and consumers, alike.

Jake and Eve have a variety of topics that should be of interest to basically anyone who owns a car.  On some of the past shows, they have  discussed how Dealers can make the consumer buying experience more convenient.   For example: The Registration process and using the Drivers License as tools to assist the customer by looking for key elements such as expiration dates.

On another show they talked about the Auto Cap program, and DA Consumer Fraud Units and how to utilize those entities if you feel that a dealer is operating unfair business practices.

Yesterday, they had on myAutoloan’s very own Heather Dietel to talk about lending and the auto finance world. 

Overview:

Again, the website is wsRadio.com

1. How the economy is affected when people are defaulting on their loans.
2. How can consumers make getting a car loan easier?
3. What are some options that the consumer may have that can benefit them with their loan?
4. When banks are looking to approve, what is the hardest item they need to overcome?

Very interesting and when we get the Podcast, we will post that into this article.  It’s a lot more interesting than having me try to outline the conversation.

Follow on Twitter : twitter/tirekickersrdio

Follow on Facebook: facebook/evegreyproductions

Another question that we regularily get is: How many times can we check our credit without affecting the score?

Although it’s true that your credit score may fall slightly (2-3 pts) following some types of credit checks, experts and credit bureaus all say that when you shop around for auto, student or mortgage loans during a short time frame, it results in a single inquiry. If you have good credit, multiple inquiries may have zero effect on your score. Credit cards are a different story but we are primarily talking about auto loans and getting pre-approved for auto financing here.

To prevent credit score damage due to multiple hard inquiries over a short time period, scoring models recognize that borrowers often shop around for the best loan. We call it “Smart people Shop” so why would you get a lower score for being smart? You don’t! “Looking for a mortgage, auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan,” FICO’s consumer information advisor explains. For purposes of calculating the credit score, “inquiries for mortgage lending and auto finance (new, used & refinance) purposes within a given period of time, generally 14 days, are counted by credit scoring systems as a single inquiry,” says the director of public education for credit bureau Experian. We have heard this ourselves, directly from each of the credit bureaus and have posted this fact in our FAQ’s and on our website. “There is no limit to the number of inquiries for those purposes,” he says.

While auto, mortgage and student loan applications over a brief period are treated as a single inquiry, that isn’t the case for credit cards. For consumers, “this means that each additional credit card inquiry can potentially hurt your score — although by less than 5 points each in most cases,” says the consumer operations manager for myFICO .Com. “For this reason, randomly applying for credit cards is not a good idea. Instead, when credit card shopping, consumers should first do their homework by comparing rates, terms and features being offered by lenders, and then only apply for the cards that best meet their needs.”

Still, it’s unlikely that credit checks will prevent you from borrowing. “Inquiries alone will never be the reason an application is declined,” he says. That means as long as your credit report shows a record of on-time payments, you don’t need to worry much about having your credit checked from time to time.

Auto Refinancing

If you are looking for the best car loans available, then you need to find a lender that you can trust.  You need a lender who provides you with car loan options that meet your needs, while not taking advantage of you in the process.  This is a reality to all consumers, thanks to direct lending. With direct lending, you will receive up to four different car loan offers from lenders who we trust to look out for your best interests.

You will be better prepared to negotiate an excellent car price, new or used, when you know ahead of time that you have the financing ready to go.  Let’s face it, some dealerships will try to talk you into their car loans.  Compare the offer that you choose with what the dealership offers – if’s it better then take it but we think you will find that there simply is no competition.  We work hard to give consumers better car loans by giving you a choice – up to 4 real lenders, with real loan offers.  We work hard to teach consumers everything they need to know about car loan financing and we work with lenders who guarantee our customers the absolute best available and lowest cost finances.

We are a direct lender and we are trusted enough to be licensed in 48 out of 50 states.  We do not have any fees or charges added to a car loan quote.   We pride ourselves on providing consumers with the education necessary to select the best possible car loans.  We are licensed as a direct lender.  We have an excellent BBB rating – check us out, we are real.  This means that we cut out the middleman and save you money – lots of money.  We know how dealerships love to inflate interest rates and charge extra fees to give themselves a greater profit.  We don’t want that to happen to you!   Again, we charge no fees or blind charges.  We will get you the car loan you need and enable you to walk into any dealership with a same-as-cash check in your pocket.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

If you are thinking about purchasing a car, you will need to find out about your own credit score as this can have an effect on the out come of obtaining an auto loan.  Since you already know you will need some funds to buy an automobile, you will need to get auto financing - and you will want to know just how your credit score affects your car loan  rate.

Your score can consist of several factors and one of the most important is your payment history.   Any late payments or missed payments you have had will certainly have an effect on your rating and thus your credit score.  Also, all of your credit card balances are taken into consideration whenever loans are being estimated.  There are a few other things as well that are taken used in determining whether or not you can obtain any auto loan, like checking and saving accounts and any personal loans or any mortgage payments.

One good reason why having a good history of credit is so important is that it will certainly determine any eligibility you have for a car loan.  This can also have an effect on the interest rate you will be charges to secure your loan.   Your ability to pay off the car loan is evaluated along with any money that you may have borrowed and now need to pay back.

Any loan interest rate will be dependent upon your history of your credit.  Interest rates are lower for the people who have a good history of credit.  In most cases, people who have an average or a low credit rating, will need to pay a higher car loan rate towards the interest on a loan.

Whenever you go and apply for auto loans with any dealership, they use a credit report.  Then according to your credit score, the dealer will make a lending decision and interest rate based on your score.  They usually mark up the interest rate so consider using a direct lender and finance outside of the car buying efforts.  The thing to remember is that all dealerships will charge you a higher rate  of interest on any auto loan.

The credit rating that you have will make all the difference in whether you can be approved for your auto loan and what the interest rate will be.  It may be worthwhile to check out car buying tips to help save you the most cash or tips to improve your credit.  It is highly recommended that you try to keep any credit you have in good condition by paying your bills on time.  The score of any credit report will always be the deciding factor in determining your eligibility for a car loan and the rate that you will pay.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

As of January 2011, new federal rules were initiated where creditors must notify consumers when their credit report has been used to provide them credit on less-favorable terms than other consumers.  These are what they call “risk-based pricing” rules under the Fair and Accurate Credit Transactions Act of 2003.  Risk-based pricing occurs when a lender offers a different interest rate and different loan terms based upon their credit history and creditworthiness.  That means that if you have been notified, you can obtain a copy of your credit report for FREE.  This way you can immediately review your credit report for accuracy – important because things do happen that create an error reporting situation.

Here is a new twist – instead of providing the risk-based pricing notices, a creditor may decide to provide you, when you apply for credit, (such as an auto loan or an auto refinance loan), with a free credit score and information about that score.  This expands the existing requirement that mortgage lenders must give consumers the credit scores they used in whether or not they decided to grant you a loan.  Right now there is a credit score disclosure requirement in FACTA, but it will only apply when you are trying to finance a home.  Under final rules issued in 2009 by the Federal Reserve Board and FTC, credit card issuers and other lenders must tell you when they’ve been granted credit on worse terms than other consumers, based on their credit report or on a credit score.

With risk-based pricing, if a lender came back and offered you less favorable terms for an auto loan because of your lower credit score, you were not provided a notice of that.  It was not considered an adverse action of you accepted their offer.  Now if you get credit granted on less favorable terms, and they are using risk based pricing, they will have to tell you that you are getting a higher interest rate because of your credit history.  So, let’s face it, awareness is important when it come to your credit and now you will know when you are getting a higher price as a result of your credit score and your credit history.  That’s the first step in getting you to correct it and improve it so that you save money when you need to apply for credit.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

Should you want to purchase a used car and wish to have it financed, but do not know where or how to go about it, then this info is for you.  Where do you find financing for a used car loan?  In most cases getting any used vehicles financed will involve paying higher interest rates than any new car loan.  Also having any used car financed could involve a higher rate down payment, but that also varies depending upon your credit score. 

When you are ready to get a used (previously owned) car financed from a dealership then first you will want to choose a certified pre-owned auto that will be on site and available from the dealers car lot.  Then begin with some negotiating for the price and purchase of this used automobile long before ever getting yourself involved with any arrangements for the financing.  In some cases when a sales person is trying to let you know just what kind of monthly payments it is that you are wanting, he or she will take that information and use it to manipulate the terms of the financing equation so this way you will be stuck paying more than is needed for the car.  That’s just how the car buying game is, but you can eliminate that if you use an on line lender and get more than one quote online.

You can get yourself plenty of used car quotes, right over the internet, before you ever start making any deals towards the purchase of a used car.  When you are online be sure to check the terms of the used car loan and also the rate of the interest at one of the many websites that will offer you this kind of information. This will help you eliminate some of the games that get played at the dealership.  Going online for financing will result in you getting some of the best rates available via direct to consumer financing and could help you get the best sales price for your used car.  Start looking around for some alternative financing for a used car loan should you be planning on purchasing a used (previously owned) car.  Many of the lenders will offer a lower interest rate for newer cars than used cars. Finally be sure to know just what your credit score is whenever you are ready to discuss any financing options.

 Remember, the higher your credit score, the lower the rates.  Should you have a score above 680, you should be able to get very fair terms in regard to any financing of a used vehicle, via your online source.  Good luck and good shopping.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

What is an Auto Refinancing Loan?

Auto loan refinancing is nothing more than replacing the existing auto loan with a new one with a lower interest rate, so that lowers the monthly payments.  An auto refinance loan alters the original loan terms and conditions, and you get the new rates and payment plan according to your credit and ability to repay.  Thus, an auto refinancing is loan is the new loan that you take out in order to unwind the previous loan terms.  You can get an auto refinance loan either with the same lender with whom you have the loan or can try getting one from a new lender.  Obviously, you will want to shop around.

Why should you refinance?  Some reasons why you should refinance your auto loan are:

Want to make lower monthly payment:

You should refinance in order to lower the monthly payments if you are facing problems in keeping up your auto loan payments. If you get an auto refinancing loan with lower interest rate the monthly payments that you will have to make gets reduced too.

To avoid defaulting on loan: 

In order to avoid defaulting on your auto loan, you can get an auto refinance loan.  As you refinance your loan, the payments get lowered and so you need not fear of defaulting on the loan.

Need extra money: 

If you want to save extra money and if the interest rate on auto loans is lower than that of your current loan, you can refinance.

Improving your credit rating: 

With refinancing, you can even improve your credit rating as you make your regular payments according o the new payment plan.

Investing your money in a car is perhaps the second most expensive and important investment.  However, you generally need to have good credit in order to get approved for a loan.  In case you don’t have good credit and you want to improve your credit, you can get a loan from some lenders but the interest rate on these loans will generally be higher in comparison to other loans.

Look for a lending site that will help you find someone to finance your used car.  These lenders probably have multiple lending partners with most lenders being well known financial institutions.  You will not get as many lenders begging to give you a loan, because your low credit rating means that you are viewed as a risk, but you will be able to find something.  Getting two offers is better than arguing with a F&I guy at the dealership.    Sometimes you have to take what you can get so that you can get yourself out of your jam and rebuild.  Here is a good source to improve your credit.   Tips to Improve Your Credit

Finding auto loans for used cars can be a crazy and unpleseant experience.  There are many websites out there that are willing to sell your information the moment that you type it in.  It is important to use a trusted website when comparing rates for lenders when buying a used car. There are only a very few websites that are a great resource to help you find the best deal possible when buying a used car.  Most are lead buying sites that sell off your information to a lead generation network.  Anytime you see a site that says “100% Approved” or “98% funded”, it should raise the hair on the back of your neck.  Don’t be fooled.  Legitimate sites have their address on them so that you know where they are originating – others are coming out of China, India, Pakistan and Europe. 

These sites look real but frankly, you get the short end when you apply.  With most lending sites, you will get one loan offer or a decline.  There is one site, myAutoloan.com,  that get’s you up to four loan offers and lets you choose which one is best for you.  It’s really pretty cool to get even two auto loan offers since all you have to do is pick the cheapest one!   These are direct loans so there is no markups – look closely, as you can tell which sites are real and others that are simply to good to be true.  (They aren’t) By comparative shopping for an online auto loan Lender, borrowers can save thousands of dollars over the course of the loan, don’t have to deal with the finance game at the dealership and become both empowered and “like a cash buyer”.  By using the internet you can save yourself thousands of dollars on your next used car purchase!

Tips and Tools:
Car Buying Tips
Auto Loan Calculator

When you are ready to get a used (previously owned) car financed from a dealership then first you will want to choose a certified pre-owned auto that will be on site and available from the dealers car lot. Then begin with some negotiating for the price and purchase of this used automobile long before ever getting yourself involved with any arrangements for the financing.

In some cases when a sales person is trying to let you know just what kind of monthly payments it is that you are wanting, he or she will take that information and use it to manipulate the terms of the financing equation so this way you will be stuck paying more than is needed for the car.  That’s just how the car buying game is, but you can eliminate that if you use an on line lender and get more than one quote online.

You can get yourself plenty of used car quotes, right over the internet, before you ever start making any deals towards the purchase of a used car.  When you are online be sure to check the terms of a loan and also the rate of the interest at one of the many websites that will offer you this kind of information.  This will help you eliminate some of the games that get played at the dealership.  Going online for financing will result in you getting some of the best rates available via direct to consumer financing and could help you get the best sales price for your used car. Start looking around for some alternative financing should you be planning on purchasing a used (previously owned) car.  Many of the lenders will offer a lower interest rate for newer cars than used cars. 

Finally be sure to know just what your credit score is whenever you are ready to discuss any financing options. Remember, the higher your credit score, the lower the rates.  Should you have a score above 680, you should be able to get very fair terms in regard to any financing of a used vehicle, via your online source. 

Good luck and good shopping.

Tips & Tools:

Auto Loan Calculator & Car Buying Tips

If you are thinking about purchasing a car, you will need to find out about your own credit score as this can have an effect on the out come of obtaining an auto loan. Since you already know you will need some funds to buy an automobile, you need auto financing and you will want to know just how your credit score affects your car loan rate.

Your score can consist of several factors and one is the payment history you have had, and just how any late payments or missed payments you may have had, will certainly have an affect on the rating of credit. Also all of the credit card balances too are taken into consideration whenever loans are determined. There are a few other things as well that are taken into determining whether or not you can obtain any auto loan, like checking and saving accounts and also any personal loans and/or any mortgage payments too.

One good reason why having a good history of credit is so important is that it will certainly determine any eligibility you shall have for a car loan. This can also have an effect on the interest rate as well towards any money that you may have borrowed and need to pay back.

In regard to your score, any loan interest rate will no doubt have a lot to do with the history of your credit. Interest rates are available for the people who that have a good history of credit. And in most cases even the ones who have an average or a low credit rating will need to pay a higher car loan rate towards the interest on a loan.

Whenever you go and apply for auto loans with any dealership, a credit report shall be looked at and then according to the report of your credit score, the dealer will make a consultation and from there along with this score, will then determine what interest rate it is that you may need to be paying. Also one other important thing to remember is that all dealerships will charge you higher rates in regard to the rate of interest on any auto loan.

The credit rating that you have will make all the difference in whether you can be approved of obtaining your loan and what the interest rate will be and also whether or not you will even get an auto loan.  It may be worthwhile to check out car buying tips to help save you the most cash or tips to improve your credit.  So it is highly recommended that you try to keep any credit you have in good condition. The score of any credit will always be the deciding factor in determining your eligibility for a car loan.

Other helpful tools:  auto loan calculator, Free Auto Buying Guide

Rules for car shopping

With auto dealers hungry for business and used-car prices soaring, the rules for car shopping have flipped.  Today, buying a new car frequently costs the same or less than buying used.  “You’ll often pay one or two percentage points less on a new-car loan than on a used-car loan,” says Jeff Bartlett, deputy editor online for autos at Consumer Reports.  Some smart tips for buying, financing and leasing a car:

 BUYING NEW

Consider the true cost.

Factor in depreciation, insurance, maintenance and fuel when comparing models for ownership. Among the 2010 vehicles that Edmunds.com says will have the lowest ownership costs over five years: Honda Accord, Jeep Wrangler, Nissan Cube and Toyota Sienna. Hold off on new models. “We’ve found that cars are at their least reliable in their first model year,” Bartlett says.

BUYING USED

Follow the three-years rule.

Buy a used car that’s no more than 3 years old.  That way you will be sure to get the latest safety features.  Look for “certified” cars.  That designation means the dealer’s vehicle has passed a manufacturer’s certified inspection and is backed by an extended warranty.

FINANCING

Get financing approved.

Do this before visiting the dealer. “Then the dealer will have to compete against the financing you have,” says Jerry Edgerton, blogger at CBS MoneyWatch.com.  You can get preapproved at myAutoloan.com.

Scout for deals. You’ll want to find the latest rebates and low-cost loans. Edmunds.com lets you find dealer incentives where you live.  If you must choose between a dealer’s new-car rebate and its cut-rate loan, use Bankrate.com’s car rebate calculator to see which would save you more.

LEASING

Give it careful consideration.

Because you won’t receive any money back when your lease is up, most car experts say that leasing is best if you plan to replace a car within three years (the typical lease term) or if you can write off the payments as a work expense.

It is significantly important to maintain a steady job with the same employer for a minimum of six months.   Many lenders want you to have 1 year or more – so in this crazy lending market, with more regulations in store for the banks, figure more is better.  So just to reinforce what is taking place in the market, in some cases, 1 years of employment is required but having a steady job is the key.  This will provide proof to the auto refinance company that a steady income is present. Without a reliable source of income, there is no security in knowing how monthly payments will be made each month and thus, a turn down is highly probable.

It is crucial to do as much research and investigating as you can before choosing a company to refinance with.  First of all, the initial lender (the company you are using now) will not refinance an auto loan that was processed through their establishment.  Why?  Because it is not to their advantage to lower your interest rate so they will say no.  They already have the borrower trapped with high interest, so it would be a bad business move for them to decrease their own profits by lowering the APR on one of their own loans.  There may be many options to choose from locally, but there are even more available companies online.  Through diligently searching and comparison of rates, the borrower should be able to find a company that holds the ability to satisfy the desired monthly payment.

When seeking low interest rates, the most valuable component is being well-educated and knowledgeable in the credit score/history that you obtain.  Some of these services are really worth it if you want to get ahead in the borrowing game.  Car dealers often look for the opportunity to take advantage of people that are not aware of their own credit scores.  This lack of knowledge allows a few dealers to add an additional increase to the APR, while telling the buyer that it is due to bad marks that showed up on their credit check (whether there are bad marks or not).  The embarrassment and lack of knowledge/questioning makes it hard for the purchaser to argue the facts with the dealer, allowing the less than fair rates to follow throughout the entire term of the auto loan.  Just so that you know, working directly with a lender is the best way to get the lowest car loan rates possible.

A credit score is a good source that can be used to determine when it is best to refinance.  A person can begin watching their credit score for a few months before applying for a refinance loan, using an increase in their score as a cue to start applying for a new auto loan.  A couple points can make a very large difference in the rate that is given, and can save thousands of dollars by the end of the loan term.

Making car payments on time and paying off a couple of credit cards before trying to get an auto refinance loan will also provide more options for a person seeking to do a refinance loan. On-time monthly car payments are a necessity for a majority of companies that work with refinancing loans.  This shows the integrity of the auto loan seeker.  Credit cards can be a positive influence on credit scores, but too many credit cards with high balances will provide negative feedback. Even a few extra payments on credit card balances can make a noticeable difference on a credit score.

A car loan refinance can allow affordable monthly payments, along with saving a person thousands of dollars by the end of their car loan term.  This is a smart move for those who cannot afford their car loan payments in today’s uncertain economy.  The extra money that is given to the bank/financial establishment could be used for paying other bills, or even enjoying extra luxuries.  Finding a new source for an auto loan may take an excessive amount of time and energy, but the benefits can make a significant difference in the quality of life that is achieved.

myAutoloan.com for auto refinancing loan information
 Handy tools: auto loan calculator -

You may find that you have to qualify for some of the best interest rates and pay back terms that are being offered, but it’s worth checking them out.  The difference between a few percentage points in interest could turn out to be a substantial amount of money.  If you know the exact make and model of car you’d like, check out all of your options on it.

When you compare rates of auto loans you should take into consideration all of the financial terms and make sure you understand exactly how the auto loan works.  If things sound complicated to you, be sure to ask for clarification.  Once you sign a contract, you will be legally bound to it.

You may want to compare auto loan rates by visiting a few dealerships, banks, and other lending institutions in person.  It might save you some leg work if you do it over the phone, and to speed things up considerably, you might want to try searching for the best deal for your car loan over the internet.   Use the tools to understand monthly payments, and how much you want to borrow by checking out the auto loan payment calculator.   We don’t mean to brag but may we suggest a great place to get updated and get the current auto loan rates – myAutoloan.com

An online search will let you narrow down the region you’re looking in and you can also zoom in on the make and model of car.  If you are interested in financing your auto loan, try myAutoloan.com – This will let you compare multiple offers from national lenders.  You may also want to concentrate your search a little further and could perhaps choose a 100-mile radius where to compare auto loan rates. 

Whatever you choose to do, just gather information until you are ready to move forward.  By getting approved before you start shopping dealerships you become a cash buyer and it’s so much easier to negotiate price when you know where you need to be on price.  Happy shopping.

So how much are we really talking about here? For example, let’s say you bought a new car in the summer of 2008.  Just for this example, let’s say there were a few blips on your credit report that lowered your score and so the dealer told you that your auto loan would be 11 percent on a 60 month loan for a $24,000 car. Your monthly payments are $500.

Now let’s say that you look for a car loan refinance and you find an actual finance company that will do the application and approval process all online.  There are big differences in licensed finance companies and websites that promise to refinance and just sell off your information.  But that’s another story, for now, you have determined that the website is legitimate and actually works for you to get you refinanced.  That’s great because, as we identified earlier, rates are now at the lowest point in years.  If you want to lower your payments, do another 60 month loan.
 
If you want to lower the overall cost of the loan, refinance the balance that you owe on the car and do so in the fewest amount of months that you can, as long as you can handle the monthly payments. You could refinance the balance of your car loan and lower your payments to about $350 a month. 

How?  Because ideally, you have not only improved your credit, but you have been offered a very competitive interest rate and that could translate into a savings of nearly $6,000 over the life of the loan.

We could run a number of scenarios but one quick way to check out rates and payments is to use an auto refinance calculator to estimate payments and loan costs.  Other examples could well be more dramatic. In some cases, a new-car buyer could wind up with an auto loan based on an 18-percent interest rate. By refinancing at a competitive rate, the monthly payments would be slashed, and all it takes is about 10 minutes to fill out the application.

Regardless, you could save some cash by investigating the possibility of an auto refinance loan and get the New Year off to a great start.  Good luck and good financing.

Safety in cars has come a long way.   While there are still, believe it or not, some vehicles that have hardly any safety features (a certain Italian manufacturer springs to mind) the majority of cars have sophisticated safety equipment fitted as standard.   Even so, there are a few safety measures that you should insist upon having in your new vehicle when you buy.  If they don’t come as standard equipment, buy/add them as extras or options.  Most of the time they come in a package but they can always be purchases separately if you wish.  If you are buying a used vehicle, buy the vehicle that has added the most safety specifications and best safety record  as close to the best safety specification as possible.  This is an investment in your future, and not doing this means that you’re literally driving an unsafe vehicle making your car unsafe.

First up, and we know this sounds really silly, but especially if you are buying a used car, make sure it has seat belts.   Seat belts can mean the difference between life and death.  Safety records confirm it.   In todays world, seatbelts are law and must be used, therefore, don’t buy an auto without them.  That is that.  So always check that whatever auto you purchase, it has seatbelts and buy obviously they must be in good condition has good and they working seatbelts.  

Next make sure that the car you purchase has an anti-lock braking system fitted.  This is, for the most part,  now actually standard on most newer modern vehicles, but some have slipped through the net, so check that the vehicle has them, and don’t buy it if it doesn’t (or if it is a new car option,  make sure you purchase the system).   An ABS makes sure that you can still control the car when in a skid.   That really is all we have to say on the matter.

While we are on the subject, check to see if the ABS has something called Brake Assist.   This is a system devised by those nice people at Mercedes Benz.  The system actually makes sure that, in an emergency stop situation, the brake pedal is rammed to the floor, it subsequently reduces the problems that panic-braking brings to the situation.
 
The majority of cars (but not all) have airbags in the front.  However, there are many cars out there, especially the older ones, which do not have side-impact protection bags.  These do the same as frontal bags, but for the side.   Cars can be rammed into from the side.  So if you want to protect yourself from a ton of metal rushing at your head and body at 50 miles per hour, and the glass that will come with it, do your best to find either a used vehicle that has side impact, or a new one that can be upgraded if necessary.

Before you ever go shopping, search rates and check out auto loan financing in advance.  This helps keep your focus on the look, safety features, price and condition of the car.  Everyone knows that these machines need responsible handling.   Safety measures like those outlined above aid the responsible driver.  Be safe!

So what does one do if they want to improve their credit score?  There is no doubt that the effort to raise your score is a very difficult one.  Fortunately, there are a number of reputable companies out there to help you if you choose.  What you need is to find the right solution for you as every situation is different.  If you work with an outside company, you need to make sure that your consultant will provide a private and confidential review of your current financial situation. Their intent should be to learn about your situation, in order to best identify how they can work with you to improve your credit. These days, credit is important for securing your next mortgage, auto loan or credit card. We also know that some employers are running credit checks for new employment opportunities and simple consumer accounts must have a background credit check. This is why it is so important to take control of your personal credit score.

Improving Your Credit Scores

Improving your credit is not only worthwhile, it a smart thing to do.  A common misconception is that getting more credit means that you are more credit worthy.  That is completely incorrect because that’s not what happens.  For example, throughout the year, many retailers and credit card companies often offer you the chance to save 10-20% or more on purchases by opening a credit card account.  If you are also looking to purchase a house or buy a car during that time, you might want to stop and think twice about signing up.

Why?  Because by opening several credit lines in quick succession can actually lower your credit score.  This score is used by every company or business that provides credit from car dealerships to mortgage lenders and they calculate just how likely you are to repay your debts. You need to know that lower scores mean you may be charged higher interest rates on auto loans and other types of borrowing.  They can also affect you in less obvious ways.  Many auto insurers, for example, use credit scores to set premium prices, and a growing number of employers factor them into their hiring decisions as we mentioned before.

While the calculations and methodology behind FICO scores is extremely complex, there are a few key principles that you can follow to raise your credit score.

1. Basically the most important way to improve credit scores is also the least complicated.  Pay your bills in full and on time.  Your overall history of making payment on your current bills accounts for about 35% of the FICO score.  Missing credit card payments or submitting the minimum due each month will immediately lower scores, as will any debt collections or bankruptcy filings that show up on your credit report.  The only good news here is that credit scores reflect your most recent activity, so major negatives like collections will eventually mean less and less, even if it take years to work their way off your credit report.

2. Maxing or topping out your credit cards will drop your score like a rock.   Even using 50% or more of your limit can cause problems because it increases the risk that you may not be able to repay.  For anyone looking to boost their score the key is to maintain a low “credit utilization” level.  This refers to the percentage of available credit that you have on each of your credit cards.  The credit utilization level falls under a complex category known as “amounts owed.” This makes up 30% of the FICO score.  If you have five credit cards with a $5,000 credit line each, for example, it’s not wise to carry a balance of more than $2,000 per card.  It’s better to carry smaller balances on several cards than to pile everything onto one card.

3. Build up an active and lengthy credit history.  This means it’s usually better not to close out all of those old credit cards – unless new ones are replacing them – because keeping them open builds your credit history.  This makes up about 15% of the FICO score.  Keep a few dormant accounts active.  This will help lower the balance to limit percentage since limits are factored into the credit utilization formula.

4. Don’t open new accounts within 60 days of making a major purchase.  This results in about 10% of your score.  Taking out new credit lines raises red flags because it makes you look riskier.  This is why it’s best to avoid all those retail cards during the holidays – unless of course, a temporary decline in your credit score is no big deal.  Just be smart and think twice about your future purchases and what looks likely to take place over the next few months.

5. Have a wide variety of credit experiences and loans, over time.  This is called diversification and means that you have had and get credit for having a variety of loans, so it’s better to have an assortment, including installment plans like auto loans or mortgages rather than simply credit cards.

6. Get a copy of your credit report and make sure your credit report is accurate.  This is very important.  Since credit scores are based on credit reports, it’s very important to make sure the information in your reports are fee of errors and fraud.  Federal law gives you the right to get a free report from each of the major credit bureaus once per year. 

Want some help to improve your credit score?  Fast, efficient and effective help is just a click away – Improve My FICO Score

Curious about the amount of money you can borrow?

These calculators are provided to you as a convenience tool and the calculations are estimates based on your assumptions. These calculations are not guaranteed for any particular loan and we have no obligation to match these terms.

Your actual payment or loan amount may differ depending upon the actual term, Annual Percentage Rate, fees (if applicable), principal amount of the loan, and date to first payment.

To help ease the auto-buying experience, we have listed some tips and advice aimed at saving you money by understanding how things work and by helping you negotiate a better deal.