Category Archives: Credit & Auto Loans

Car Loan & Car Buying Tips

Get the best price and best car loan on your next car

The auto finance world is changing and finding a competitive loan is getting a bit tricky.  If you’re like many people, you may find the car buying and car loan process confusing and intimidating.  Sometimes the dealer rep is a bit aggressive, and they may use car buying and car loan terms you’re not familiar with.  It just gets difficult to see what is the best for you so we put together a list of car buying tips that will help you make a smart choice when you start shopping.

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Understand Your Car Loan Options

We have all been to dealerships that often treat the financing of an auto loan as an afterthought.  They would much rather sell you a car first and then discuss the terms later.  Happens all the time.  

However, that approach puts you at a disadvantage and it often results in buyers agreeing to finance terms that aren’t right for them.  So here are some tips for getting the right car loan for you.

1. Determine Your Budget & Car Loan Payment Limits 

Before you apply for a car loan, it’s essential to know exactly how much you can afford to borrow, and what your monthly payments will be.  To make it easy to determine your budget, myAutoloan.com offers two convenient tools: A Car Loan Payment Calculator and a Car Loan Rate Calculator. By using these car loan calculators, you can easily determine what kind of car you can afford and have a good idea of the loan payments with your trade in.

2. Understand the Components of Your Car Loan

The key components of any car loan are:

  • Vehicle Price
  • Down Payment
  • Interest Rate
  • Length of Car Loan (Term)
  • Monthly Payment Amount
  • Fees: Taxes (government fees)

Frankly, understanding these components and knowing that only the Government Fees are not negotiable is important.  Everything is negotiable as it relates to the vehicle and add-ons.  For an overview of how to get a good deal, check out this finance guide – knowledge is power so check it out as you prepare to finance your car.  

Whether you get a car loan through myAutoloan.com or through a dealership, always review and understand each point on this list.  Don’t become so preoccupied with your interest rate or monthly car loan payment that you agree to a higher vehicle price or additional products such as service contracts or other “back-end” products that you may not want or need.

3. Shop around for a Car Loan Before Going to a Dealership

Car financing options are available to consumers – having a choice is a powerful thing.  At myAutoloan.com, you can get up to four loan offers from which you can choose the best one for you.  You are not limited to loans offered only through auto dealers.   Having your financing approved before you go to the dealer gives you more leverage when you start negotiating on the price of an auto you are interested in.  Being a “cash buyer” is a great way to keep your costs low on financing and negotiate a great price for the auto you want.

Today, there are many car loan sites offering a range of new and used car finance solutions.  Online car loan companies like myAutoloan.com offer some of the most competitive APR’s in the market, because their loans are not “marked-up” like dealership car financing.

4. Negotiate Your Price & Get Your Car

Okay—you’ve secured your car loan, done your research, and found a car that fits both your budget and your practical needs. It’s time to get yourself to a dealer, find the car you want and begin negotiating a sale price. Many auto dealerships have internet departments that will provide a price quote via e-mail.  Start by contacting a local dealer and request a price quote or, go directly to a local dealer’s website.

You’ll find it’s possible to save hundreds if not thousands of dollars from the MSRP before ever stepping foot into a dealership showroom.  Next, go to the dealership, take a test ride, with your financing already taken care of you can then drive home in your next new or used car!  

By using these resources mentioned above, you can and will find competitive financing and save on the car that you decide upon.  Good luck and happy shopping.

4 Ways to Feel More Confident Buying a Car

Buying a new lawnmower. Buying groceries. Even buying new curtains. There are some things in life you’re confident about purchasing. But buying a new car?

Most consumers are not confident when it comes to understanding the purchasing process, finds a recently released study from Capital One. And few folks feel like they’re getting a good deal when buying a car.

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Capital One’s survey of 1,000 U.S. adults found:

  • Only 20% of consumers feel sure of themselves when buying a car.
  • Even fewer respondents (16%) feel like they’re “a boss” when it comes to negotiating.
  • And just 6% of consumers think car buying is a transparent process.

When it comes to getting the best price, most people feel like they just can’t hit the mark. Capital One reported that:

  • 62% of consumers feel they didn’t get the best price on their last car.
  • Yet, 47% of consumers noted “finding a deal” as the most important part of the car buying process.

So, what can you do to feel just as confident about buying a car as buying groceries? myAutoloan has the info you need (and a free eBook about the auto buying and financing process).

Know what kind of vehicle you want to buy.

Knowledge is power. Start with a plan! Before you head to the dealership, research the make, model, and style of vehicle you want to buy. The information available to you online is nearly limitless.

Think about the features that are most important to you in a car, like safety, storage, tech compatibility, and gas mileage.

Make a list with three columns: your “must-haves,” “nice-to-haves,” and “can-live-without” features. This foundation can help you feel surer of yourself when you walk into a dealership. You won’t be swayed by flashy marketing or dealer inventory!

Bring insurance and vehicle information with you when shopping.

Bring your research to the dealership with you, just like you would go to the grocery store with a list, coupons, and maybe the week’s meal plan.

Your research includes your feature list, some potential makes and models to test drive, and yes—car insurance estimates!

“Even the savviest car shoppers often forget to estimate car insurance costs before buying,” notes USA Today.

But the type of car you drive is one of the most important factors in determining the cost of your car insurance. Even if you estimate potential fuel and maintenance costs, you need to evaluate the price of car insurance to know the long-term cost of owning a car. The same driver could end up paying hundreds of dollars more depending on the vehicle.

Read up on basic negotiating techniques.

Only 16% of respondents in Capital One’s survey reported feeling like “a boss” when it comes to negotiating, yet 82% believe negotiating price is still necessary.

Here, we have two things to say: 1) Negotiating is a necessary evil, and 2) The internet is your friend! Check out NerdWallet’s car negotiating secrets for people who hate haggling or Forbes’ punch list of good tactics to use to lower the price of a car.

Recurring themes include:

  • Knowing your numbers and the real price of a car.
  • Timing your purchase based on the day of the month and the weather.
  • Securing auto financing ahead of time.

Get pre-qualified for financing before going to the dealership.

Securing auto financing beforehand is one of the best ways to make the car buying process smoother. It also takes control away from the dealership and puts it in your hands. But buyer beware! The dealer will likely claim that they can beat your other financing deal. They’ll do this by lowering your monthly payments but increasing your term, the sales price, or the interest rate (APR). Focus solely on your monthly payment amount and you could overlook an increase elsewhere, then end up paying more for the car or auto loan. Know your numbers, and you won’t fall prey to this trick.

You can feel more confident about buying a car, and you can do so today. Prequalify for auto financing now!

How to Make Your Tax Refund Check Go Further When Buying a Car

You already know you can use your tax refund check to buy a car. But you may not know that doing certain things can help you avoid more fees or get a nicer car with that very same check. One check. Different (and better) results for you when buying a car. So, how do we recommend you go about doing this? Check out myAutoloan’s strategy for stretching your tax refund check when buying a car.

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Take your time.

From the bank to the grocery store, every business knows it’s tax refund check time. And they all want a piece of your check. If you jump on the first flashy deal you see, you may miss out on an even better one a few miles away. Do your research and avoid acting impulsively to help make sure your tax refund check is wisely spent.

Stick to used cars.

Buying a used car means less of your tax refund check will be eaten up by depreciation. According to CarMax, cars lose about 10% of their value within the first month of being driven. After 12 months, their value has decreased by more than 20%.

Let another driver eat the biggest dip in depreciation. Analysis from U.S. News & World Report shows that the best way to find the cheapest car is to buy the oldest modern card you can find in good condition. Models that are 2012 and newer will have more safety features, as that’s the year electronic stability control became mandatory for all cars. Buying a rental car is another great option for saving money on a newer, reliable ride.

Buy from a private party seller.

When you have cash in hand, buying a car from a private seller can be one of the best ways to save money. Absolutely $0 of your tax refund check will go toward sneaky dealership fees. As Consumer Reports warns, dealership fees can include:

  • A destination charge: The cost to deliver the car from the factory to the dealership
  • Title and registration fees: The price to have the dealership handle ownership transfer, temporary tags, etc.
  • A documentation fee: $150 to $300 for processing title and registration documents
  • An advertising fee: A fee sometimes tacked on by regional dealers to help cover marketing expenses
  • A dealer markup: The additional price you have to pay to drive away with a car that’s in really high demand

Together, all of these fees could total thousands of dollars and consume your entire tax refund check. Go with a private seller and you won’t have to pay any of them, as private sellers are not dealers and have no overhead costs.

Don’t go with your first financing option.

Instead, compare auto financing options to make sure you’re picking your best loan offer. We know it’s tough to wait when you have a cashed refund check in hand. You want to buy a car fast, and you don’t want to wait. But comparison shopping doesn’t have to take more than a few minutes. You can submit one auto loan application through myAutoloan and quickly receive compare up to four loan offers. There’s no need to navigate to different websites, submit different forms, or even drive to various places around town.

Shop local around tax time.

Buying a car around tax time has two benefits. One, you likely have a tax refund check. Two, the auto industry tends to see a slowdown around tax time, which is good negotiating leverage for you.

“Ask any small business owner who is not in the tax business and they will tell you that business always sees a cyclical slowdown in April. The reason being that plenty of people owe taxes by April 15,” says the Financial Samurai.

While other folks are pulling from their savings account to pay Uncle Sam, you can use your tax refund and savings to put down a sizeable down payment on a car—assuming you don’t owe a hefty amount of taxes, too.

Start with myAutoloan.

We’re all about getting you more financing for less hassle. Fill out a quick auto loan application for a used car and get ready to enjoy a newer car, all thanks to your tax refund check and money-savvy research!

A Better Way to Finance a Car Loan

INTRODUCTION 

When consumers like you are looking to get an automobile loan or automobile financing, they will often rely on a car dealership to get it.  Things have changed and you need to be aware of some of the positive changes that have taken place to improve your chances to get a great car loan.  At car dealerships, consumers will be able to conveniently get a car loan but generally at a higher overall financing cost.  They will usually have to pay a higher interest rate (APR%) as the dealership is a middleman to the finance company.  They make money and you pay more for the convenience of doing it all at the dealership.  

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However, with direct auto loan lenders, consumers like you can avoid this situation and save a considerable amount of money.  Apply at your home using a lending website like myAutoloan.com and obtain up to four real loan offers that you can choose from.  All you will need to do is fill out a simple application and it’s possible to get up to four auto loan options to choose from.  Choice is a good thing you know!  By taking advantage of this direct to consumer method, consumers will be able to make the process of getting auto financing much easier and with less overall cost.

FAST APPLICATION PROCESS

One of the reasons to use a direct lender when seeking an automobile loan or a refinance automobile loan is because it offers a fast application process and choice.  Consumers will not have to spend up to three hours filling out an application and waiting for someone to make an offer by the salesman’s manager – it’s part of the “wear them down” strategy that puts you into a waiting situation.  By working with an online lending platform website, it will enable you to save a considerable amount of money.  Anyone who is looking to get an auto loan from a direct lender will have the opportunity to get the funding they need within minutes and then use those funds to make the purchase as a cash buyer.  As a result, one of the best reasons to use a direct lender is by taking advantage of an application process that is faster than dealerships.  Getting multiple loan offers gives you choice on rates and terms that fit your needs.

DIRECT AUTO LOAN – IT’S EASY TO DO

A key reason why using direct lenders is very beneficial is due to the simplicity of the application and process.  When you go to a dealership, you may need to fill out a number of forms for the loan.  As a result, this can take up a lot of time.  It may also consist of questions that may be difficult or time consuming to answer.  However, a direct auto lender will allow you to just fill out a very short form and then submit it online.  

If you would like to get a better understanding of the process check out one of the guides for getting the best loan offers for you – Choice is what happens as you may get to choose from more than one offer.  Another tool that can help you see what payments and different terms can do for you is a rate estimator and loan offer payment estimator.  As a result, you will not have to worry about filling out lengthy complex forms in order to get a decision on your auto financing options.  With simplicity offered by a direct lending platform, consumers will be in position to get auto financing more easily and have a choice in the selection of the best loan.

VARIETY OF OPTIONS

When looking to get an auto loan, having a variety of options will allow you to get the type of financing you need.  Going to a dealership limits you to the lender they want – they pick the lender, not you.  As a result, you will usually have to accept the offer or go to another dealership.  However, direct lenders can offer you a list of numerous loan options to choose from.  This allows you to get a better idea of what you qualify for and what options are available in terms of getting a new or used car loan.  Using these options can allow you to review which loan package will allow you to get the car you want.  Consumers will have a choice of interest rates, loan amounts and loan terms.  With a number of different options, you will be able to get an auto loan that will be the best match for your car financing needs.

CONCLUSION

Getting an auto loan can be a stressful process.  While you can go to a dealership, their process can be both time consuming and restrictive. However, you can avoid this situation by using a direct auto lending platform that will give you the option to choose one from up to four offers.  This type of lending website like myAutoloan.com will allow you take advantage of a number of options in terms of loan amounts, terms and interest rates.  The website will also provide you with an application process that is fast, easy and free.  Therefore, if you are in the market for an auto loan, then using a direct auto lender is one option that you can take advantage of and save some money.  The direct auto lender will provide you with what you need to get your car financed on favorable terms that you choose – It’s just that easy.

Getting the Best Deal on a Used Car

Used Car Financing

The decision to buy a used car is one that can positively affect you in numerous ways.  Instead of driving the old, unsafe or unpleasant vehicle that you currently own, you can travel to work, school and social outings in style.  Even though you’re purchasing a used car, you don’t necessarily need to pay for the vehicle out-of-pocket.  Instead, by applying with an online lending platform like myAutoloan.com you can experience a positive car loan lending process and obtain the best deal on used car financing.

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Get Approved 
You might be planning to purchase a used car instead of a new one because you’re trying to save some money.  It’s possible that your financial situation isn’t the best right now, but our lenders are waiting for your application so that they can get you approved.  Used car financing is a possibility because the loan amounts can be very reasonable compared to a new car.  For example, an online lender platform offers loans for people with all different types of credit and credit scores.  A low credit score doesn’t equal an automatic rejection.  Knowing that you have a higher chance of a competitive car loan approval than you would with other lead providers can give you confidence as you begin this journey.  You might find it helpful to review a short guide on financing – check it out.

See Options 
Some customers also worry that they won’t have much of a choice when it comes to their used car finance agreement.  In other words, they think that they’ll be presented with one loan offer and, essentially, forced to take that option if they want a car loan.  At myAutoloan.com we offer up to four different possibilities, from up to four real lenders, thereby allowing you to select one that makes sense for your financial situation.  As you’re browsing the options available, you may realize that you can afford more than you originally thought.  Try using a simple loan calculator to help determine what that number might be.  That’s what having a choice can do for you.

Deal Directly 
When you go to a car dealership to search for a used car and take out a loan, you are generally also paying additional financing fees to the dealership.  Instead of going straight to the lender, you are working with an intermediary or a middleman finance manager.  By using a direct lender site like myAutoloan.com, you can get a used car finance offer directly from the lender.  Saving on fees could potentially allow you to take out a larger loan amount.  Also, you may simply be able to keep more money in your bank account or put these funds toward other endeavors since you won’t have to pay additional fees each month.  The real savings come when you don’t have to wait for 3 hours of back and forth chatter to get an offer that you must take or walk.

Check out Certified Pre-owned 
As you start to review your loan options and recognize that the dealership fee has been eliminated, you can begin to recognize that an online used car financing option is very simple.   In other words, you may have previously thought that you could only afford a later model used car but with your savings from dealing directly with the lender you have more choices.  Now, because you have a choice it may allow you to look for a newer car.  Maybe it could allow you to examine the certified pre-owned selection at the dealership.  Someone may have returned a vehicle after leasing it for three years, and you are able to purchase it at a competitive price.

Have a Safe Vehicle 
When you feel financially constrained but are in need of a car, you might just pick out the first one for which you qualify.  Knowing you have options can be a real benefit that you did not know existed.  You could pick out the car you want and choose the loan offer that makes it all happen.  Choice is a great thing to have.  Working with a direct lender from myAutoloan.com gives you options – choice is empowering.  It’s a great path to take.

myAutoloan.com is a leading online automotive finance marketplace where consumers with fair, good and great credit get real loans from real lenders without a lot of nonsense.