Car Financing Tips – Auto Finance Rates

To be the smartest consumer possible when it comes to car financing, it’s important to keep several factors in mind.  First is to be able to get car financing that is competitive.   It can be the difference between being able to own a car that is affordable or one that drags you deep in debt.  Comparing rates keeps you from being overcharged for your car loan as well as giving you a choice. It’s a great feeling to be able to select the rate and terms that fit your needs.  As you shop online, understand that not all online financing offers are from a real lender.  myAlutoloan.com is a lending platform that does work with all qualified and real car finance lenders.  If you want to check out how to get a great loan offer, you might check out this guide on car financing. It is free and full of helpful tips.

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Shop Around for Best Loan Offers

Your goal is to get the best rate possible so it is important to shop.  Finding an online website that offers you multiple loan offers is very important.  It’s seems obvious when you get to have “choice” is a really good thing.  To be an expert consumer in the purchase and financing of a car, it’s wise to comparison shop.  Not all online auto finance providers actually quote firm offers.  With them, you may have to re-apply to get approval and a final interest finance rate.  Some lenders are more competitive at car financing than others.  Being able to compare side by side loan offers is a real advantage and as we have mentioned, “Choice is Empowering”, and a good thing.

Lenders on the myAutoloan.com platform are knowledgeable and helpful so make sure you ask any questions as your receive offer on the site.  They are knowledge about car finance will be able to most effectively help you decide on where and how to find the best rates for the particular car you want to buy.  When you are able to compare up to four car finance rates all at once.  You can see how the new car loan offers vary and how the length of the loan and the payment amounts are all different.  When you can choose the offer you want, you are very much in charge of the car buying process.

Bad Credit Auto Loans

Vehicle loans for car financing for individuals with bad credit can also be easily obtained through myAutoloan.com. This is where you can see side by side offers for your requested loan amount.   A down payment may be required but you don’t know until you ask.  It’s not unusual to see a higher annual interest rates from lender to lender but that is simply a part of the process to secure the loan.  So even if your credit is not the greatest, that shouldn’t at all deter you from searching for a high quality, affordable car loan for the vehicle of your dreams.

Used Car Financing

Looking to finance a used car can be a very simple matter.  Sometimes the rates for used car loans are a bit higher than for new ones, but with a little effort to compare loan rates and a down payment or trade-in, nearly every car shopper can successfully obtain a used car loan from a great lender.  It’s important to select a vehicle that’s in excellent running condition so you don’t have too many problems with it down the road.  But you’ll definitely be able to obtain that used car you want via superb used car loans that are available to a wide variety of individuals.

The lenders at myAutoloan can often give you the very best deals on about any vehicle you desire.  They have the expertise and skill sets to be able to place you with up to four lenders that best suits your specific financial requirements.  For over 16 years, myAutoloan.com has been providing outstanding lending offers to its customers.  Give it a try.  See for yourself that the lending process just gets easier when you have a choice.  Good luck and happy shopping.

What Kind of Motorcycle Should I Get?

Choppers, cruisers, scooters, and sport bikes! Looking at different types of motorcycles? If you’re trying to choose what kind of motorcycle to buy, read on. We’ll walk you through five basic categories of motorcycles to help you pick the best one for you. Each type has its pros and cons, so read carefully! And don’t forget—comparing options is one of the best things you can do when buying a motorcycle and securing financing

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Different Types of Motorcycles to Consider

Adventure Touring Bikes/Dual Sports

The adventure touring bike is a newer style of bike. It’s a dual-sport motorcycle that rides comfortably on almost any terrain. Take it down Route 66 or hit the road less traveled. Heck, the road doesn’t even have to be paved! Adventure touring motorcycles are designed with on- and off-road capabilities, with higher ground clearance and reliable engines that’ll serve you well on long and short trips alike. Adventurer tourers come in all shapes and sizes. Gear Patrol’s top picks for adventure motorcycles include the KTM Adventure 790 Adventure R, which costs about $13,499.

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You might want to buy an adventure touring bike if…

  • You want to spend equal time on- and off-road.
  • You enjoy trail riding.
  • You rarely ride with passengers.

Choppers

You don’t have to know motorcycles to spot a chopper from a mile away. Choppers are a type of custom motorcycle that was first made in California in the late 1950s. Choppers gained popularity in the 1960s, thanks to Peter Fonda and his chopper named “Captain America” in Easy Rider.

Choppers are designed to look “extreme,” with long front ends, raked forks, reclined seats, hardtail frames (frames without rear suspension), and lots of shimmery, flashy chrome. One chopper does not fit all, so make sure you know what you’re getting into when you buy this type of custom motorcycle. Axle Addict has a great quiz that will help you figure out which type of chopper is right for you: Classic Bobber, Pro-Street, Fat Bob, or Bagger.

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You might want to buy a chopper if…

  • You want to turn heads everywhere you ride.
  • You enjoy riding in comfort and style.
  • You want your passengers to be comfortable.

Cruisers

Cruisers are one of the most common types of motorcycles and are a true American icon. A cruiser looks like a toned-down chopper and is designed for comfortable, relaxed riding. The rider usually sits with their feet forward and hands up, with their spine erect or leaning back slightly. Cruisers focus on rideability, not horsepower, and traditionally have V-twin engines. They’re a great option if you’re buying your first motorcycle. But if you’re looking for a cruiser with more oomph, consider a Power Cruiser. Power Cruisers often comes with upgraded brakes and suspensions, premium finishes, and more horsepower.

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You might want to buy a cruiser if…

  • You value soul over speed—cruisers are nostalgic!
  • You want to relax while riding.
  • You always want the option to carry passengers and luggage.

Dirt Bikes/Off-Road Motorcycles

“Life is short, so grip it and rip it.”

Does that sound like your philosophy on life? If so, you might be destined to ride a dirt bike. This type of motorcycle is specifically designed for off-roading. It features knobby off-road tires, long suspension, high ground clearance, and a minimal frame. Dirt bikes are used in competitions like Enduro, Motocross, and Trials.

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You might want to buy an off-road motorcycle if…

  • Travis Pastrana is one of your heroes.
  • You’re after adrenaline.
  • You love riding hard and getting dirty.
  • You value speed and agility.

Scooters

Alright, so some readers are going to say that scooters don’t belong on this list, but hear us out! A scooter is a lightweight, economical option for many riders. It’s a small bike that makes it easy to get around town and run errands, and many can be purchased for a couple thousand dollars. Plus, the majority of modern scooters don’t require manual shifting—motorcycles mostly do!

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You might want to buy a scooter if…

  • You want something that’s cheaper than a motorcycle.
  • Gas mileage is top priority.
  • You don’t want to get a special license.
  • You don’t plan on hitting the highway.

Next step? Compare motorcycle financing

Hit the open road on the motorcycle of your dreams. Heck, maybe you want to hit the motocross track! Either way, myAutoloan can help you finance all types of motorcycles. Apply for motorcycle financing today, even bad credit motorcycle loans.

Auto Loans vs Car Title Loans: What’s the Difference

Auto loans and car title loans may sound similar, but they are two different things. An auto loan is a loan you get to buy a car. A car title loan is a short-term, high-interest loan that uses your vehicle title as collateral. It’s not used to buy a new car, and could actually lead to you losing your car. Here we’ll dive into the key differences between auto loans and car title loans, and explain when you might want to choose one over the other.

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What is an auto loan?

You want to buy a car, but you don’t have enough cash on hand to pay for the car outright. An auto loan is a lump sum of money that’s loaned to you for the sole purpose of buying a new or used car. You pay for the car with the auto loan and then repay the loan, with interest, over an agreed upon number of months.

How much is the typical car loan? According to Experian, the average new vehicle loan hit a record high of $31,099 in 2018, and $19,589 for a used auto loan. The national average for U.S. auto loan interest rates is 4.21% (for a 60 month loan), adds ValuePenguin.

Auto loan terms are getting progressively longer, too. New car loan terms are up to 69 months or more, reports Experian, and the average used vehicle loan has a term of just over 64 months.

If you miss too many payments or don’t pay back your car loan, the car will be repossessed and sold at auction. If the car isn’t sold for enough money to cover your loan, then the financing company may come back to you to collect the outstanding balance, warns Sapling. Your credit score will also take a pretty sizeable hit.

What is a car title loan?

A car title loan is a small, short-term loan that comes with a high interest rate that uses your vehicle as collateral. It has nothing to do with buying a new car. A car title loan usually has to be paid back within 15 or 30 days and can come with a super high interest rate. Car title loans are on the smaller side, like $100 to $5,500, but some lenders offer amounts of $10,000 or more. A car title loan is also called a pink slip loan, title pledge, or title pawn.

Car title loans sound simple enough, right? But you want to approach them with caution.

“The Federal Trade Commission (FTC), the nation’s consumer protection agency, advises you to put on the brakes and understand the costs of a car title loan.”

That’s what it says on the FTC’s website — verbatim — because a car title loan puts you at risk of losing your means of transportation. If you don’t pay the car title loan back in the 15 or 30 day term, then the lender might roll your loan into a new one (with plenty of fees tacked on) or repossess your vehicle. Lose your vehicle and you lose the freedom to go where you want to go, when you want to go.

Car title loans are not only risky, but they’re also expensive. Lenders charge an average of 25% per month to finance a car title loan, reports the FTC. Do the math and the costs can really add up! Here’s an example from the FTC:

If you borrow $500 for 30 days, you could have to pay, on average, $125 plus the original $500 loan amount — $625 plus additional fees — within 30 days of taking out the loan.

It might surprise you to learn, though, that car title loans generally don’t affect your credit score. Most title loan lenders don’t check your credit when you apply for a title loan and paying off a car title loan on time won’t boost your credit score. However, a car title loan will be reported to credit bureaus in the case of vehicle repossession. That has the potential to knock your credit score down, notes the Fiscal Tiger.

Auto Loans vs. Car Title Loans Comparison Chart

Auto Loan Car Title Loan
What is it? A loan that’s specifically used to buy a car A small loan that uses your car as collateral
Who gets it? Someone who wants to buy a new or used car Someone who needs a small amount of cash, fast
Other names for it Car loan, auto loan, vehicle financing Pink slip loan, title pledge, title pawn
What happens if you don’t pay back Your car is repossessed Might roll the old loan into a new loan, or your car could be reposessessed
Average amount $31,099 for a new car loan and $19,589 for a used car loan $100-$5,500
Average Term 60 to 70 months 15 or 30 days
Average interest rate 4.21% (on 60 month loans) 25%

Shop myAutoloan for a car loan today

Now that you’ve compared auto loans and car title loans, which one is right for you? If you’re ready for an auto loan, NOT a car title loan, then apply through myAutoloan to review up to four loans. We’re here to help connect you with your best financing option, not just any financing!

Key Challenges That College Students Face When Buying a Car

While some college students can rely entirely on public transportation, others don’t have that option. Some students need a car to make the daily campus commute or take their stuff home for the holidays.

While a personal vehicle might be necessary, it’s not easy to manage the expense of buying a car. This is especially true if you’re applying for a new auto loan with little to no credit history and limited income. Finding the right car deal can be tough. Here are a few challenges to consider.

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Problems Faced By College Students

There are a number of challenges faced by those looking to buy their first car, including steep interest rates, intimidating loan plans, and a lack of cash for the initial payment. Hefty upfront costs and monthly payments for the foreseeable future will look pretty unappealing for college students already operating in the red.

High Interest Rates

Many students have either just begun building credit or have no credit history. When they search for a starter car, they’ll likely run into trouble when trying to secure an auto loan. Loans with decent interest rates usually require good to great credit, so most college students may be offered auto loans with higher interest rates.

Realistically, a student earning a meager wage at a part-time campus job may not have the means to easily pay off an auto loan on schedule. Not only does this cost more, but falling behind on expensive payments may damage an already vulnerable credit score. Check out this rate calculator tool to see what rates are possible with your credit.

Long Repayment Terms

Students who have poor credit or a limited history may also be forced to opt for lengthier repayment terms. It may not be obvious at first, but this is a significant cost factor. When you choose to repay over a longer period, the overall cost of the loan will go up.

Interest will have more time to accrue as you slowly pay down the balance. Simply put, it’ll cost you more in terms of interest. Additionally, the idea of borrowing for an extended amount of time on a depreciating asset can be a major turnoff to students who are looking to buy. Here’s a payment calculator to help you understand what monthly payment to expect from different repayment terms.

Low Cash For A Deposit

Another potential barrier to buying a car is the initial down payment. Most college students lack the cash for a large deposit, which means they may face higher interest rates and loan costs. Why is the down payment important? You get a better deal on a car loan when you can pay more upfront, but that’s not always an option for students early in their asset-buying careers.

How To Solve These Problems

By now it’s fairly evident that college students lack in two car-buying requirements: cash and credit. How can you solve the problems that are both the problem and the solution? You want shorter repayment terms and low interest rates, but you don’t have cash on-hand for a deposit that would make this possible.

Luckily, college students can take steps to improve their financials, which will improve their chances of getting a lower rate or qualifying for a loan in the first place. While these aren’t the only tips to consider, here are several basic tactics for prepping your credit profile for an auto loan.

Start Building Credit

For starters, you can take small measures to begin building a trustworthy credit score. You may want to apply for a credit card thatcaters specifically to students. For many, a credit card is the starting point to credit building. Student credit cards generally require average-to-good credit, and these card providers understand that students who have no experience with credit need to get started.

If you secure a credit card, be sure to consistently pay off your balance. Wiping the slate clean each and every month without fail may prove to your lender that you’re a responsible borrower. Your overall credit score should improve through proper debt management. With a higher score, you are more likely to receive loan offers with lower interest rates and better repayment options.

Budget Like Your Car Depends On It

Another way to improve the car-buying outlook is to take a closer look at yourbudgeting habits. Saving is king when it comes to purchasing major assets. Consider what you earn and spend each month, and decide where you might be able to cut back on and store away. If you have cash left over at the end of the month, set that aside. Use a long lens, remind yourself that your goal is a car, and you’ll force yourself to forego some miscellaneous purchases.

For those who find it tough to keep money management in perspective, budget apps may help you to break down and better organize your spending choices. Some personal finance apps are invaluable tools for students who need a bit of guidance, and they establish positive habits that will come into play when bigger purchases such as a first home crop up down the road.

Consider Shopping for a Used Car

There’s no shame in going used. Previously owned cars tend to be much cheaper than new options. You could get to the point of purchase sooner, whether you’re paying fully in cash or taking out a used car loan. If you’re short on cash, then you may want to think about an auto loan.

If you shop around for different auto loan options, then you may be able to find an even better deal for a used car. myAutoloan is always a great option. According to Lendedu, myAutoloan is one of the top choices, especially when it comes to finding affordable rates in a short amount of time.

Used car dealers offer an enormous selection of vehicles, and you’re bound to find a dependable ride, whatever your needs might be. So don’t shy away from the pre-owned route; it’s often the best choice for students!

By Andrew, a Content Associate from Lendedu – a website that helps consumers with their finances. Andrew bought his first car, a 2000 Mazda Protégé, in high school; he heavily relied on the “Budget Like Your Car Depends On It” and “Consider Shopping for a Used Car” tactics to make that happen!

The Top Benefits to Getting Pre-Approved for an Auto Loan

Nowadays, you can start and finish the whole car buying process at the dealership. You can secure financing, take care of your state registration, and sometimes get car insurance. But just because you can, doesn’t mean you should—especially when it comes to financing. You probably aren’t getting your best financing offer if you go through the dealership. Learn the real benefits of getting pre-approved for a car loan.

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Pre-approval vs. pre-qualification

Real quick – there’s a difference between getting pre-approved and pre-qualified for a car loan.

Pre-approval is more serious than pre-qualification. Pre-approval is what you need if you want to be treated like a cash buyer at the dealership. Pre-approval requires a hard credit check.

NerdWallet advises that you “wait to get pre-approval until you’re serious about buying a car and know your credit score because applying will have an impact on your credit.”

Pre-qualification is less serious. Getting pre-qualified is like “putting out feelers” to see what you might qualify for. It’s a great first step if you don’t know what your credit score is, just know that it won’t give you the negotiating power of a cash buyer. Pre-qualification requires a soft credit check.

3 Benefits to Getting Pre-Approved for Auto Financing

You’ll pay less in dealer loan markups.

We’re starting with the biggest and best benefit: pre-approval can spare you hundreds of dollars in dealer loan markups.

“Consumers paid an average of $1,791 in undisclosed fees and markups in 2018,” reports the Outside Financial Markup Index, the leading measure of dealership loan markups paid by consumers for new cars.

Undisclosed fees and markups have increased 5% since 2017 and 71% since 2010, adds the Markup Index.

How does this happen? Because car shoppers just don’t know.

Sonia Steinway, Outside Financial’s president, explains that “More than two-thirds of consumers don’t realize dealers can mark up their interest rates. Because markups on auto loans and ancillary products can vary greatly, even for the same car or product at the same dealership, the consumer is vulnerable to the extent they don’t know their options.”

But you? You’re going to be one of the shoppers that avoid dealer loan markups. You’re doing your research and learning about all of your options.

You can set a better budget.

There’s nothing worse than falling in love with a car, only to find out that it costs way more than what you can actually afford. Getting pre-approved can save you from this heartache!

Pre-approval means you’ll know how much you can borrow and at what interest rate. You can limit your search for cars that only fall within that price range. With this information, you can also use an auto loan calculator to estimate your monthly payment.

Don’t forget to factor in the cost of car insurance, gas, and maintenance, too. The total cost of owning a car is made up of more than your auto loan payment.

You can negotiate like a cash buyer.

Getting pre-approved for an auto loan gives you the negotiating power of a cash buyer. The car salesperson won’t be able to distract you with promises of a low monthly payment that’s sneakily padded with extra charges and fees that have nothing to do with the car’s actual price. Since you’ve already calculated your monthly payment and budgeted accordingly, you can focus on arriving at the lowest possible price for the car.

Our Financing Guide helps explain the negotiating power that comes with being a cash buyer.

Get preapproved for a car loan online.

Take myAutoloan (and NerdWallet’s!) advice and get pre-approved for an auto loan today. You could save money by avoiding the dealer loan markups, setting a reliable budget, and negotiating like a cash buyer. myAutoloan can help, by connecting you with up to four lenders in just a few minutes. Get pre-approved for a car loan today!