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Archive for the ‘Auto Financing’ Category

How do you find a Financial Service that does loans for all types of Classic, Antique, Muscle, Sports, Luxury, and Exotic Automobiles.With the advent of the internet, classic auto loans has become a lot easier for the classic auto enthusiast to find a loan company to help in financing his purchase of a classic car. The difficulty of finding a lender is as easy as clicking your mouse. Getting yourself a classic vehicle loan is that much easier.

Not every agency offers a classic car loan. However, dealers have reservations about the definition of the classic car model. The loan criteria are the same as in the case of a new car. Approvals for car loans are very quick and simple even with bad credit and as you will soon see there is hope even with challenging credit issues. One needs to understand the exact price being paid for the vehicle ( financing entirely would be costly ) , the components being a) the amount you decide to finance b) the cost of credit borne by you which is called the classic car finance charge c) the Annual Percentage Rate which is the main angle giving you a pinch may be and the d)the total sales price (the summation of the monthly payments with the down payment).
When looking for someone to finance your classic auto, take a look at specialty lenders that deal in classic auto financing. Thus they will have interest rates at a more reasonable rate than those of a regular lender. As well, they will have a better idea of what your car is worth, this will help so you won’t need to provide a lot of extra documentation to prove your classic car is worth the amount you want to finance it for. You could also benefit from these lenders in the form of extra loan money for restoration as well.

There are other challenging situations which many people face when trying to get a car loan such as self employment, short job time, unestablished credit, or being a first time buyer. Even though bad credit car loans can help individuals with derogatory credit there are also problems people encounter which are not due to poor credit. Bad credit car loans are available for all automobile types nationwide and getting approved online is the first step to purchasing a new or used vehicle.

With banks approving financing of new cars, its likely their interest rates on classic auto loans are going to be a bit higher than those of a specialty lender. You’ll also need to bring in extra paperwork in order to prove that your car is worth the amount that you’re borrowing. The blue book value of a very old car is going to be next to nothing, so you will be required to prove that either its improvements or its restoration has raised the value of the car. This will make your loan that much less of a risk having come in well prepared.

PRIVATE PARTY CAR LOANS

A person-to-person auto loan is when you buy your vehicle from a private party, not a dealership. This type of financing has some of the same characteristics as loans for dealership purchases. However, there are also some key differences.

Loan terms


Private party auto loan terms tend to be less than buying a new car from a dealership. New auto loans are typically offered for as long as 72 months. On the contrary, the maximum available loan term for private party auto financing is usually 48 months.

**Please note that the longer you finance your vehicle for, the more money you are going to pay in interest over the entire life of the loan. Therefore, try and finance for as short a time as possible.

Interest rates


The interest rates associated with person-to-person car loans are usually higher than new or used car purchases from dealerships. It is very common for interest rates to be as much as 2% higher than new car dealer purchases and 1% for used cars. What interest rates you receive will ultimately depend on your credit rating and history.

**It is recommended that you obtain a copy of your credit report before applying for any type of auto financing. You need to make certain that all of your information is 100% accurate and current.

Down payments


Most auto loan providers will not require any sort of down payment when applying for a loan for either a dealership or private party purchase. However, a good rule of thumb is to try and put down no less than 20% to avoid becoming upside-down on your auto loan. Meaning, you wind up owing more than the car is worth.

Taxes, title and registration


The fees associated with taxes, title and registration can be combined into the final loan amount when buying from a dealer. However, these fees can not be combined into your person-to-person loan. You will have to pay these fees out of pocket.

Name on title


When you buy a car from a dealer, your name is put on the title the instant you sign the papers and make the deal official. However, when buying a car from a private seller, it can take as long as two weeks for your name to be placed on the title of your car. This happens because it sometimes takes the seller’s lender some time before they fully complete the payoff process.

In conclusion, it is important to understand how private party car loans work. When you buy a car from a friend, family member or even a stranger, it is likely you will get a good deal. However, as mentioned, interest rates associated with private party auto loans are higher. This means that you may end up paying more for the vehicle as a result.

Bankruptcy attorneys don’t often disclose just how difficult it may be to obtain good auto financing after bankruptcy. Getting a car loan with reasonable interest rates and good payment terms can seem like pulling teeth at times. If you find yourself in a situation what you need is to be pointed in the right direction.

Some lenders are easier to work with than others. This applies to all areas of credit and finance. Different loan companies have different standards, different requirements, and will approve some types and disapprove others. It’s really hard to know where you should apply for an auto loan when lenders do not openly advertise what type of requirements and standards that they use.

Many times, car dealerships advertise that they can get anyone approved regardless of their past credit. What they may not be disclosing to you is that frequently there are conditions. While some dealerships may actually have the resources to do this, you’ll save quite a bit of money and get a better deal if you arrange your financing outside the dealership. Even better, is when doing this dealerships have to ask for your business, rather than you asking for approval.

When you initiate financing outside of the dealership… you are in a much better position to negotiate the price of a car. Whether you are wanting to get behind the wheel of a new or used vehicle, you will do much better by taking this approach.

Remember that you do not have to accept any offer for credit, although it is always good to know what is available to you. Remember to always read the fine print on a finance contracts before you sign the paperwork and make a solid commitment. Obtaining auto financing is simple if you just use legitimate sources.

A rumor that has been spread since the 1960′s is that whatever a car dealer gets for a down payment is nothing more than profit. This rumor is in part, true.

An Example

The following example applies whether you’re buying a car, truck or motorcycle with bad credit.

Let’s say that you want to purchase a used car that has a selling price of $15000.00 and the dealer is telling you that because of your bad credit history, you have to put down a 10% down payment of $1500.00. In cases like this, it is very likely that the loan company approving you will only “advance” $13,500.00 on the vehicle in question and this is generally based on loan value. Typically, the dealer will have paid somewhere around loan value for the car and if they sell it at this price, then they aren’t making any profit. So in this common example, requesting that you make a cash down payment of $1500.00 is in fact, $1500.00 of dealer profit and nothing more.

Dealers do have to make money and $1500.00 is a reasonable profit. It’s disheartening however, to fork over a couple weeks worth of income just to make that happen, though.

How to Get A Car with No Money Down

If you have bad credit and need auto financing, and you don’t want to put any money down, there is a solution. Now, hear me out on this, because this information can really benefit you and this information comes from 20 years of experience working in car dealership finance departments…

Buying a car from a private owner. This reduces the amount financed by around 7% or whatever your local tax rates are. This reduces the amount needed to buy the car and less money that has to be borrowed. There are also no dealer “doc”

Have you been told by many a car dealership that because of your bad credit, your financing application would not be approved? The sad truth is that this is the answer you may continue to get if you continue to search for auto financing in a particular way. Let’s see how you can get your auto loan approved.

When going for auto loans with bad credit, your options are greatly reduced. The first place you need to start is in your choice of car. In fact, the first question to ask is actually if you really need the car in question. When that question has been answered, you can then move on to what car is a need and which is mere luxury. The lower the amount you need for the car the easier it is for you to get it.

If you operate a checking account with a local bank and your account is well serviced and operational, do not rule out the possibility of their giving you a loan especially if the amount is low enough, and being a local bank, they can ascertain that due to the ties you have in the area, you would remain to make your payments. Remember, you do not need an expensive car to meet your car need.

If you are desperate enough for a car that you do not mind the rates you pay then you can look at dealerships that offer their own financing. Like I said earlier, it is not the cheapest option and you may likely need a down payment. You can avoid a down payment if you have a fully paid car to trade in. This option should be as a last resort as you would likely end up paying hugely for the car.

Another very viable option I would recommend is visiting online lenders. In fact, many times , I recommend it first because, due to a reduction in their cost of operation and the competition amongst them, they are able to offer lower rates to even applicants with bad credit. In fact, some don’t need a credit check.

Remember, with bad credit, you should be concentrating on repairing your credit so your car loan search should be borne out of genuine need and not just a whim.

Go online now and access low rate auto loans.

If you have a credit score of 480, are in the midst of a bankruptcy that is not completed and have an income of only $800.00 per month, then guess what? You’re not going to be getting an auto loan approved! While there are sources that can get you a real car loan with bad credit, there is simply no such thing as guaranteed auto financing for bad credit. It’s a marketing ploy that lures people into dealerships.

Buy here, pay here. While there are car dealerships that promise to finance anyone regardless of their credit history, like most things – there is a catch. Large down payments are required by these types of establishments and the amount that you have to put down pays for most of the car. The remaining payments that you have to make, along with the high interest rates charged make these dealers profit at the expense of your financial predicament.

There are better ways of purchasing cars with bad credit…

Cash. As hard as it may seem, you can get a reasonable ride that will take you from point “A” to point “B” for a couple thousand dollars. It might not be the best looking car on the block, but will allow you to save money for something better in the near future. Being able to have a title in your hand and own what you drive is much more rewarding than having used that money at a buy here, pay here dealership that you’ll owe thousands to for a similar vehicle.

Online Lenders. There are companies that don’t have problems giving auto loans to people that have bad credit if they merely meet income requirements and basic guidelines. There are a few good companies online that can accomodate you, if you qualify based on your monthly income. Is auto financing guaranteed with these companies, regardless of bad credit? Absolutely not. You will however, have a much better chance of getting a real car loan without the headaches and hassles of using a buy here, pay here car lot.