Buying Your Dream Car, You Should Consider Auto Financing

In situations where individuals have the monetary capability to buy the car upfront might also look at the option of financing, since the money saved at that moment could be employed elsewhere with better returns. The great American dream of owning a car is no more just an American dream; it is now a global phenomenon. Cars have long been a cherished dream of many, which was only a distant dream, primarily due to lack of monetary power. The top brands were not available across the globe. Liberalization and new monetary mechanism has made it possible to own your car faster than one ever imagined. Usually one would have saved for years to muster up the money to buy a car, these days you don’t have to wait. There are options offered by the financial institutions which allow buyers to borrow money at an interest and repay in easy installments, to buy the most valued possession. Cars truly have become the signatures of style and symbol of social stature. Making this dream possible for many, who otherwise would have to wait for years, is the auto financing option.

Auto financing option is simply put a loan which is offered by the financial institution, for a 5 to 7 year period. The incumbent has to qualify for the loan amount. The repayment capability is determined by the financial institution from the income, debts at hand and the age of the individual, amongst other markers. Once the quote is generated, the applicant has to fill all the forms and submit the documents required. Documents about financial standings are important to assure the lender of the repayment capacity of the borrower. Usually the process of qualifying and securing auto finance is simple in Canada. The applicant can actually apply for the loan online; most of the processing is fast and hassle free. The regulations in Canada are not very strict in terms of prequalification. Also, the financing option is not only available for new cars but also for pre owned cars as well.

With the number of providers of auto financing increasing by the day, the interest rates have really become competitive and repayment terms more comfortable. There could not have been a more conducive time to get your dream car financed at the best possible terms. In addition, if your financial record has not been exactly clean in the past, you do not have to worry. There are many lenders who are willing to offer auto finance to individuals with a bad credit score. Once you qualify and the papers are in order, the loan can be processed within 24 hours. The due diligence that one has to do before choosing a lender is to compare the interest rates, coverage terms and prepayment charges. Auto financing is really a boon for people who have been dreaming about their car for long, now; it’s definitely the time to take action.

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When Should You Shop For Auto Financing

Unless you are planning on paying cash for new vehicle, then you will want the best interest rate you can get. The best time to shop for your auto financing is before you look for the automobile you want to purchase.

When you have financing available, you minimize the time you will spent in making your purhase. If you allow a dealer to find you financing, you will not be guaranteed the best rate.

Purchasing a new car is the second largest purchase most of us will usually make in our lifetime. You will be making payments on this vehicle for the next five years. It makes no sense to spend anymore of your money than you have to in interest rates. That is literally throwing money down the drain.

If you have good credit you can get a decent interest rate, however it may not be the lowest rate you qualify for. By shopping around for your financing you will find the lowest.

If you do not have the best credit,financing is still available to you. However you will be required to pay a higher interest rate and your purchase will require a larger down payment. Each lender will differ in the amount of down payment they require. Some may require 10% of the purchase price and some may require a larger amount.

If you are looking to purchase (not lease) a vehicle your note will be a secured note. This means the lender is taking the vehicle as collateral for the loan. Should you default on a payment the lender will take it back and sell it to recoup a portion of their losses. The majority of car notes are secured loans.

With a secured loan the money can only be used for its intended purpose. In this case the purchase of a vehicle. However the interest rate the lender will offer you will depend on your credit history. The interest rates offered by the lenders will widely vary. Each lender has the right to set their interest rates.

With any loan it is in your best interest to borrow as little as possible. You may have a trade-in which will be used as a down payment, but if possible you will want to have some cash to go along with it. Your loan will be for the dollar amount owed on the purchase of the vehicle after the down payment has been figured in.

Some people may be able to get what is known as a signature loan or an unsecured loan. To obtain these types of loans you must have good to excellent credit because there will be no collateral involved. These types of loans can be used for anything. The interest rate may be a little higher, however you are not restricted to the age of the vehicle.

Lenders will typically not offer you a secured loan on a vehicle over 10 years of age. Lenders differ on what they will allow to be financed. In the case of an overpriced used vehicle, the lender will determine the amount of the purchase price they will loan toward the purchase. The lender as a rule will lend you what the vehicle is worth. The remaining balance you must pay cash if you wish to purchase that particular vehicle.

With an unsecured loan you are not bound by the lenders constraints. The lender is counting on you to pay the money back so there is no collateral to guard the lender against non-payment.

Whether you have good credit or bad credit you will find financing for a vehicle. The interest rate you pay on your loan is up to you. If you shop around and do not rely on the dealer to find financing for you, you can probably get a better rate by shopping around. Having financing available when you make the purchase of your vehicle will cut your time at the dealership in half.

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What Are The Different Types Of Loan Programs Offered To Car Buyers?

Cars we love but loans we hate!

Every car aspirant feels hatred towards car loans. Each one of us loves the automobile but detests the car loan process. And, the reason is simple. Lenders and dealers often confuse car buyers with different loan programs and leave them distressed. But, you don’t have to worry anymore.

Whenever you decide to buy a new car, you must plan for the purchase and understand the different loan program available in the market. This way you will be able to protect yourself from shoddy lenders.

Plan your Purchase

It is very important to plan before choosing a car because it will help you in creating your “Affordability Range.”

Affordability Range = Total Monthly Income – (Total Monthly Expenses + Savings)

If you keep your monthly payments in the affordability range, it won’t create any problem in making regular payments. It will also help you in deciding whether you should go for a used car or a new car.

Make Financial Decisions

After you decide the amount of monthly payments that is comfortable for you, you have to make a few decisions that will help you in choosing the right loan for your dream car.

1. Loan Amount (Do you want 80% LTV or more?)

2. Loan Term (Are you comfortable with a 60-month loan term or not?)

3. Loan Fees (Are you okay with Application Fees, Process Fees etc.?)

4. Down Payment (Are you willing to make down payment and how?)

5. Co-Signer (Do you have someone to co-sign loan contract?)

Understand Different Car Loan Programs

America is the Land of Choice. Car buyers can choose from several loan programs available. Here are the most common financing programs offered by lenders, dealers and online auto financing companies to car buyers:

1. Good Credit Car Loan

A good credit car loan program is available at low rates for car buyers with:

>> Excellent/Good/Average/Prime Credit Score

>> Gross Monthly Income more than $2000 per Month

>> 10%-20% Down Payment/Trade-in

>> A Co-Signer with Good Credit

>> No Past Bankruptcy

>> No Recent Repossession

2. Poor Credit Car Loan

If you are a car buyer with credit score in the range of 580 to 619, lenders will offer you a poor credit car loan. You will receive slightly higher rates than the usual rates. Don’t worry. If you make regular payments on the loan and improve your credit score, you will be able to get better rates in future.

3. Bad Credit Car Loan

These loans are reserved for car buyers with credit scores less than 580. Most bad credit car loan borrowers receive interest rates that are double to those offered to people with excellent credit score. But, all hope is not lost. You can make the loan rates affordable by:

>> Reducing the LTV

>> Bringing a Co-Signer

>> Choosing a Used Car of Lesser Value

4. Sub-Prime Auto Loan

A lender may approve you for a sub-prime loan if your credit score is anything but good (lower than 620). There are few lenders who don’t differentiate between bad credit buyers and poor credit borrowers. They simply categorize them as borrowers with sub-prime or non-prime credit ratings and so, offer them sub-prime loans.

5. Zero Down Finance

Zero down finance is the name of the program that lenders approve without asking for down payment. This loan program is available at slightly higher costs because the lenders assume higher risks by providing a loan with higher LTV.

6. No Co-Signer Car Loan

The loan program is usually provided to car buyers with good monthly income and higher down payment. You must remember that both the things reduce lender’s risk and so; he/she will not have any problem in approving your loan application without a co-signer.

So, these are the common loan program offered by the lending agencies. Whenever you go out to obtain a loan for your car, ask the lenders about all the different type of programs available with them. Choose the one lender that offers you multiple loan programs because it will give you the power of a favorable choice.

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Grab A Car Loan When Rates Are Still Low

U.S. debt is making everyone uncomfortable. Don’t think that it’s just a pain for Washington. Every American in the street is going to get affected if the government doesn’t come up with a permanent solution. If the government defaults, investors will lose confidence in America and will start asking for higher rates on bonds. This will push rates higher and your car loan will also become expensive.

So, if you are planning to buy a car in the near future, buy it now. The rates may go higher in the next year. It is quite understandable that making a car purchase quickly is difficult. But, with this car loan guide, you can plan you auto financing program. It’s time to take the benefit of low rates before they become extinct.

Plan your Car Loan today for it may be too late tomorrow

Buying a car is not building castles in air. It is about making meticulous plans and achieving your goal of low rates. To get affordable rates you must:

Be Financial Wise

A low rate auto loan requires you to be financially stable. Lenders will offer you lower-than-usual rates when you are capable of making regular payments. So, you must decide on your capacity of making payments. Prepare a budget. Calculate the total expenses and income sources in future. It will help you in ascertaining an affordable monthly payment.

Also, keep aside money for down payment. Making a down payment lowers the loan amount and ensures the lender of your financial capacity. It will aid you in getting low rate car financing options.

Judge your Score

When you don’t know your credit score, you end up ruining it more. This is because you may apply with a traditional lender/bank for a car loan with bad credit. Most of them don’t offer auto loans to people with credit issues and past bankruptcies. Your credit score will get unnecessary hits and will reduce further. So, get your credit score before applying for a car loan.

Where to apply with your Credit Score?

Based on the credit score range given below, choose a lender/auto financing program. You can go online or ask you friends for recommendation. But, remember that the lender must be reputed and trustworthy.

330 – 619: Poor Credit Auto Lenders and Online Auto Financing Companies
620 – 659: Sub-prime Car Financing Program
660 – 751+: Any Bank, Credit Union and Car Loans Website.

Knowing where to apply for a low rate auto financing program as it increases the chances of approval. So, make sure that you submit your car loan request to a lender who will cater to your needs.

So, this is how you can prepare yourself for a low rate car loan program. Don’t waste time in contemplating your automobile purchase. It’s advantageous to make a purchase now than in future.

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Auto Finance – Six Steps to Follow When Financing a New Vehicle

If you are planning to buy a new or a used car, the first thing you would require is proper auto finance at a reasonable rate. However, in order to get the best deal, it is very necessary to do the required research and homework before getting your car financed. Following are six steps you should follow when financing a vehicle:

Step 1:
Compare and contrast all the available models from different automobile manufacturers and choose the one that best suits your interests, needs, as well as your budget.

Step 2:
Once you have chosen the vehicle you wish to purchase, look out for discounts and special financing rates available on it. Generally, most of the manufacturers offer attractive interest rates, such as 2.9% for 5 years and 0% for up to 3 years, on their new models to lure customers. The current incentives and rates offered on different makes and models of automobiles can be easily found online on popular automotive websites.

Step 3:
The next step is to decide the duration for which you want to finance your vehicle. However, this decision largely depends on your budget and present income. If you can afford to pay bigger amounts as monthly repayments, it is always advisable to opt for shorter repayment duration. On the other hand, if you cannot afford big monthly payment amounts, you can reduce them by getting the automobile financed for a longer period of time. However, bear in mind that with longer repayment periods, you would have to bear the burden of auto finance for a much longer period, and in due course of time, you would owe much more on your auto loan than it is worth in the open market.

Step 4:
The fourth step is to decide the amount of the down payment you want to make on your new car or truck. Here are a few guidelines to help you take this decision:

- If no special incentives are offered by the manufacturer on the model you are targeting, it is advisable to make a large down payment as it will help you save big by reducing the total amount of interest required to be paid on the total loan amount.

- However, if special interest rates are offered on your vehicle, it is better to put as little money down as possible. In such a case, it is advisable to invest any down payment and get the entire car financed at 0% or 2.9%.

Step 5:
The best way to obtain auto finance is to get it from a car dealership. However, before you get in touch with local auto dealers, it is not a bad idea to get pre-approved to finance it through a local bank, credit union, or an online bank. This will help you in two ways:

- It would prompt the dealer to offer you a rate lesser than the one that you have already been quoted.
- It would give you an estimate of the interest rate you qualify for and thus help you negotiate a better deal.

To get pre-approved, get in touch with a local financial service or an online loan officer and negotiate a low selling price.

Step 6:
Choose the most reliable, local car dealership that has the vehicle you want to purchase on its list. Get in touch with the dealer and try to negotiate a rate lower than the one you have already been approved at by the financial service. If the dealer agrees at a lower rate, get your vehicle financed through him without a second thought. If you could not negotiate a better deal, get back to the bank that you are already approved with.

Thus, in order to get the best deal, you should follow the above six steps when financing your new vehicle.

To start off,

1) Get Pre-approved to Finance your Vehicle [http://www.onlineloanofficers.com] from a local financial service through Online Loan Officers, and

2) Browse through the free Car Dealerships Directory to find details of the best car dealerships in your city and get in touch with them to obtain proper car finance.

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Getting Auto Financing – The Best Way to Buy a Car With Bad Credit

Bad credit auto loans are planned to help anyone get a car loan despite poor credit ratings. Auto financing for poor credit are not only for people with worse credit, but it can also help customers who are working, specially made employees or first time auto buyers. Bad credit auto loan comes into the picture when FICO score is below 640. However, you need to make sure that the auto finance companies offer variable interest rates on the auto finance, and you cannot just get affordable vehicle financing just by filling the bad credit loan application. In the backdrop, you have to do your homework in detail so that your loan application is approved. In addition, there are number of auto finance companies and lenders available on Internet, which you need to check and find whether the auto loan lender is offering the best loan interest rates. Are the loan rates offered really the best, or they are just meant to entice you to go for the vehicle loans? Make it a point.

With online auto loan facilities available to average auto loan borrower, things have changed massively in the auto loan market. The borrower can compare the interest rates offered on the loans by the auto financing lenders, and this will help him/her to go for the auto loan of his/her choice, which will quite obviously be the best auto financing options. If you are planning to hire a tote the note dealer for low interest car loan, you need to keep in mind that it will not solve your credit situation because the dealer will not notify about your loan payments to the credit bureaus.

Get prepared avail low interest auto financing from the genuine car dealers and have peace of mind. Make a choice from the network of online dealers that offer low interest car loan to the loan borrowers who have poor credit and their loan application has been declined. The trick that works out here is that the borrower should choose the best auto dealership financier, and not just any one from the crowd.

The bad credit car loan financing will become realty for a borrower only if he or she gets acquainted to the car loan lender who is adepts in all aspects of bad credit loans. The lender should hold the experience in the bad credit auto financing. For the borrower who is otherwise eagerly wanting to drive home in his/her new car, the responsibility lies in choosing the car loan that is offered at low interest rates and that too without undergoing through hassles.

Again, you should not go for buy here pay here financing or what is known as in-house financing. It is because the inventory or vehicles that are listed with these auto finance dealers are old and, many of them are high-mileage cars. Nowadays car loans are available at attractive interest rates and you can get pre-approved to avail these auto loans from online auto financing. All you need is to fill up bad credit auto loan application and submit form for the quick approval process.

Marshall Fairchilde is a customary writer on AutoLoanFinance.net, a US based online auto finance company, which provides updated information on bad credit auto loans buying a car if you have bad credit score.

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Getting the Best Interest Rates on Auto Financing

If you are in the market to purchase an automobile, you also need to have your eyes peeled in order to find the auto financing that you will need for your purchase. In that regard, if you are like other people shopping around to buy an automobile, you want to get the best interest rates on auto financing. However, in these challenging economic times, it can be a bigger challenge to obtain truly favorable interest rates on auto financing.

There are some tips and pointers that you should bear in mind when it comes to seeking and finding good interest rates on auto financing. By following these pointers, you will be in the best position to save money on the interest rates on any auto financing you obtain.

Get Your Auto Credit History in Order

When you are seeking auto financing it absolutely is imperative that you get your credit history in order. In this day and age lenders are becoming more restrictive when it comes to who they will make loans to … even when it comes to bad credit loans. Therefore, you really do need to make sure that you credit score is as high as it possibly can be and that your credit report is in as good of shape as possible.

In this regard, the first step that you will want to take is to make sure everything on your credit report is accurate. Unfortunately in this day and age the majority of credit reports contain inaccurate information. Therefore, you by making sure your credit report is accurate you will be taking an important step in making sure your credit score and history is in the best position and condition possible.

You will also want to make sure that all of your current credit accounts and loans are current. Lenders will closely at the status of any outstanding financing when it comes to your own application for auto financing.

With all of this in mind, it is important that you start working on getting your credit history in order well in advance of the time that you will be applying for auto financing. You truly need to be proactive in this regard if you intend to be successful in obtaining auto financing today.

Shop Around for the Best Auto Financing Interest Rates

Keep in mind that there can be differences in the costs associated with auto financing from one lender to the next. This can include differences in the interest rate as well as in the other costs and fees associated with auto financing.

Therefore, it is in your best interest to spend a bit of time shopping around for the best rates, the best deal when it comes to auto financing. For example, even a minimal difference in the interest rate from one lender to the next can add up to thousands of dollars over the life of an auto loan.

Don’t Be Afraid to Negotiate

Finally, if you have decent credit, when it comes to auto financing you should not be afraid to negotiate. In this day and age, many lenders will be amenable to at least some negotiation on your part. Therefore, as you start to undertake the auto financing process, you do need to be prepared to do a bit of wheeling and dealing.

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Ins and Outs of Auto Finance

There are several ways of saving money on your next car loan. The easiest research you can do is right from your own computer. By using the Internet, you might find that often times the best financing comes from non-franchise, independent financing companies.

Usually they will offer the better deal to you, just so they can continue to compete with bigger companies. Dealer financing is usually more expensive because they are using your credit rating while working with banks. There is money to be made from the financing, sometimes even more than off the sale of the vehicle itself.

Did you know by using your home equity that might be the best way to lower interest payments? Typically, a home equity line of credit and a home equity loan will provide lower rates than traditional car loans. This is simply because they are secured against the value of your home. You can even itemize the interest on your federal tax return and it will be tax deductible.

A HELOC usually has the lowest interest rate in the beginning, just be cautious since the rate is variable. This will leave you open to the possibility of payments increasing if the rates do as well. This is considered the better option if your loan is looking at 36 months or less in length.

Anything over that, a fixed-home rate equity loan is ideal. This has a guaranteed rate for the entire term and would be the best financial choice. Always keep in mind that you are using your home for collateral, so make sure that you never miss a payment.

Watch out for zero interest loans. This might sound appealing, but not if you are giving up a substantial rebate. If you decide to finance and take even a 5% rebate that could add up the savings over a time period on your loan, better than taking the zero interest in the beginning.

Consider increasing the down payment toward the vehicle. The idea of no money down sounds good, but usually you will make up for that within a year of car payments. It might be better to hold off on the purchase until you can save more for the down, which will help you to save a lot more money in the long run.

Take a look at your credit report and know your score before entering a dealership. There might be errors that could hurt your rating when the dealer runs a check. If you have time to work on your credit score, hold off on the purchase. Take care of unpaid credit card bills that might be negatively impacting your score.

Lenders take into account your credit score and their rates are a direct result from them. If you improve your credit, you might be able to get a better rate.

Car payments have been made affordable for many people through leasing, where you are not paying the complete purchase price for the car. There are online calculators that can help you compare the best auto loans.

A monthly lease payment is usually less than monthly loan payments. Some new cars can be leased for as low as $200 a month, some for even less. Unfortunately, through leasing you lose any resale value once the lease is up. If leasing works for you, watch out for specials if you want the best deal. As with any contract, read the terms and conditions surrounding your lease before you sign.

Make sure to completely read the terms of the lease and know whether the advertised monthly payment includes sales tax and fees. If you are paying a larger than average down payment to secure the lower lease rate, take that into consideration as well. A lease is the best choice for someone who is not fiscally sound.

Know when it is considered the best time to buy a car. Fall is the season when auto makers would like to get rid of their older models, to make way for the new. Auto financing rates can be reduced greatly if you purchase at the right time of year. Financing a car is sometimes the only way possible for the purchase to be made.

Make sure you completely understand your loan and how much you are going to be responsible for. There are good deals to be found, just keep in mind the ins and outs of auto finance so you will get the best financing rate possible towards the purchase of your vehicle.

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Sears Promo Codes – What Can I Buy With Them?

A lot of people are looking for ways they can save money. Whether they are buying food, clothing, household items, and necessities, it is the innate nature of an individual to look for a discount. If they cannot find a discount, they will look for a cheaper option. This though, does not apply with Sears promo codes.

The beauty about having a code is that you can get to save some items on your shopping venture. Since you have gotten a promo code for Sears, you can make use of the discount only with the brand. But you should not worry on what you can use it with as Sears has a complete line of everything that you can possibly need or want. The only thing they lack is food.

You can use your promo code if you will buy appliances, automotive/tires, beauty, baby, bed, bath, home, books, clothing, electrical gadgets, gifts, fitness, sports, health, jewelry, and a lot of other products. With Sears, you can easily have choose what you want to buy as they have such an extensive array of available products that you can choose from. You can even buy gifts for your friends.

The list of items that you can buy with your Sears promo codes seems to be endless. Your needed items can simply be bought at Sears. Because of this, you do not need to go to another retail store so you can complete what’s on your list. Truly, this fact alone can already save you some money on transportation costs that you would have otherwise needed to spend.

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Top Brand Professional Automotive Tools Reviewed – Know Your Budget

The tool market is well serviced in terms of brands, design, quality and price. The key consideration is to evaluate your needs. For example, it is pointless buying a laptop capable driving sophisticated 3G games when really all that is required from the unit is basic desktop and internet work. This kind of example also applies to buying tools. For instance, why waste one’s budget on buying the most expensive tools when their application is for occasional hobby type tasks.

Lets start with an overview comparison. It is widely agreed that the best quality and designed tools are manufactured by the Snap-on company. This brand of tools is designed for the professional market. No tool brand is perfect and infallible to failure. However, the Snap-on lifetime warranty means that when a tool breaks, it is replaced or repaired by the service representatives. Snap-on tools can be bought from their distribution trucks and vans that visit automotive workshops. Alternatively, their online catalog allows purchasing via the internet. Second-hand and recycled Snap-on tools are also eagerly traded through websites like eBay and eBay Partner sites.

As noted above, Snap-on automotive tools are at the upper price range. However, there is no shortage of professional grade tool brands at price points below that of the Snap-on brand. For example the brands: Matco, MAC and Cornwell are equally respected in the professional automotive sector. Matco, MAC and Cornwell off a range of professional tools that deliver quality and reliability while carrying sound lifetime warranties and professional after sales service. And are less expensive than the Snap-on brand for the budget minded professional automotive technician. The availability of these brands for sale is similar to Snap-on tools. Trucks visit and distribute tools at automotive workshops. Also, online catalogs and auction type websites offer buy opportunities.

For those budget sensitive buyers, the next set of tool brands is SK and Craftsman. The manufacturing quality of these brands meet USA standards and carry similar lifetime warranties like those brands mentioned above. So, for the semi-professional or hobbyist application these tool brands are an ideal choice. Some may argue that the SK brand, although not as popular, is a little superior to the Craftsman brand. But this opinion is subjective. Craftsmanship and SK brand tools are a more accessible to the buying market. For example, Craftsmanship brand tools are stocked at Sears stores, while the SK brand is found in automotive parts stores and outlets.

In summary, if price is no restraint, then tools from the Snap-on range are considered to be the best quality. Where quality and service is still a priority, then brands such as: matco, MAC and Cornwell offer offer quality profession lines of tools as less expensive price points. Finally, the brands SK and Craftsmanship serve the semi-professional market with tools that are not subject to the high demands of daily professional usage. The advice for any buyer is assess the task application of the tool, and allocate your budget to buy the right tool for the right job.

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