Used Car Finance is Better Than New Car Finance – Here’s Why

Used car finance is a step up process to gaining your shiny new car. If you’re suffering from a bad credit rating you may find it difficult to get yourself started on the ladder to the car of your dreams. It can seem like the whole world is against you when you don’t have the sufficient credit rating to secure yourself any loans or other finance. Used car finance can help you raise your credit rating to a healthier level and can be a vital step upwards to getting your hands on a new car.

Buying a used car that is only one to three years old is a much better option than buying a brand new one and that is because of one major factor: depreciation. A used car which only two years old will be anything from twenty to fifty percent less than a brand new model. The key here is to shop around and find the best deal that you can. The used car will still be under warranty so you have peace of mind plus in most cases it will look like new.

Choosing used car finance over a new car purchase will also significantly increase your chances of acquiring the finance. This is because the amount will be smaller so you have a better chance of being able to pay back the loan to the finance company. Many finance companies will actively promote used car deals in order to acquire more business from people with a poor credit rating. In fact, they receive more business from people with low credit ratings than anyone else. A used car deal will therefore be much easier to obtain than trying to go for a new vehicle straight away.

Buying a used car has another bonus for you besides making it easier to obtain a car; it also helps to make your credit rating a bit healthier. As the finance is for a smaller amount it becomes more manageable and while you’re paying for your car, your credit rating gets healed somewhat. Once you have completed paying off your vehicle from used car finance your credit rating will be looking much better which will help you when applying for everything from a credit card to a mortgage.

On top of this there are various offers and schemes your car dealership will be able to provide for people with low credit ratings such as a trade in. Many places now offer you the choice of using your old car as part payment for your new one. The value of this sum will depend on the estimated value of your old car but this will decrease your required loan for the new car. This in turn makes it easier for you obtain a better or newer vehicle allowing you to climb that financial ladder more easily to the car of your dreams.

In summary, a used car finance loan will not get you a new car straight away, but if you need a car quickly or simply cannot get your hands on a new car loan this is the best option for you. Used car finance can help improve your credit rating, provide you with a cheaper car, improve your chances of getting a larger car loan and help you get a cheaper loan for a better car later on. Just because you have a poor credit rating, doesn’t mean you should suffer financially for the rest of your life. You can get a foot hold on the vehicle ladder today by having a quick look online for used car finance deals.

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Online Car Finance – The Fastest Ways to Find Financing For A New Car

The auto mobile industry is well urbanized now. You do not have to wait for a longer time for approval. You can consider internet to be your profitable idea. The Internet landscape is the place for the new generation. The self provoked individuals who want to accelerate their potential by utilizing their time efficiently. There are many new car finance provider available. The car loan market provides numerous ways to get financing for a new car. You don’t have to wait for days to get an approval. You can use the internet and find the perfect car loan for yourself and buy a car loan.

Consider all the search engines to be the place where you should be looking for the new car finance Search engine literacy is extremely important. You will require a personal computer either from home or public place with internet access and Google.com possibly can be utilized for an exclusive search of new car loan quote. You can also try for a search engine specially made to search car financing. Internet is the best place to search for new car loan quote so do not hesitate in sitting in front of computers for hours and be persistent in your approach. Be patient search for the best available new car loan.

If you are a first time car buyers looking for a new car loans, then be sure to get latest price quote from multiple dealers through online or nearby your location to get best car finance deals and making car more affordable in long run.

Discuss each and every detail with the online representative on the web. “If you are not happy with the deal anytime you can walk away without signing”. No lenders can pressure you to sign in with any deals. Be specific about your requirement and do not beat around the bush. Say what you are looking for directly. After you have chosen the new car loan rates and have gone through the entire process consider getting an external legal help in making the final decision. You can take help of a legal adviser or a family friend. In the end, it is you who will have to decide so believe using your own reason before saying yes or no!

Barack Obama made a gigantic technological hit in 2009 when he started promoting himself online. Just like this, there are many websites that are designed by efficient technical web developers. These website works with collaboration with million lenders through out the Nation. Each and every lender near your area is connected to these websites. All you have to do is to give your financial details on the website and save. The website will provide you the best rate available to new car loan. After comparing the terms and conditions and the rates all you have to is submit the selected car loan rate.

Run away from the Corporate Sharks

There are websites who supply lists of car lenders in your area who are ready to provide you loans for car even if you have a “Bad Credit” or even worse “No Credit” history. You can also qualify for a fast auto loan in a little bit of second. But, make sure you trust the good websites. There are many online websites who are nothing but Scams! You only want to trust the best one for you car loan. The fraud agencies might cheat you and then just disappear instantly. There are websites that act like sharks and eat your finances. But, again you will find many financiers ho provide you with new car loan finance.

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Advantages of Financing a Cheap New Car

Financing a cheap new car offers a lot of benefits. This is the reason why most car buyers are doing their best to obtain some of the auto loans offered by lenders to finance this type of vehicle. However, not all car finders know these benefits. As a result, most of them would end up with bad credit. In case you are planning to finance a car, try to consider financing one of the available cheap new cars and obtain the following benefits.

1. A lot of financing offers

One of the most common benefits obtained from financing a cheap new car is the abundance of offers from banks and other lenders. As a matter of fact, a lot of financing agencies are willing to provide financing for creditors who are planning to finance affordable vehicles.

This is because cheap new cars are easy to finance and involve lesser risks on the part of lenders. In the event that you fail to provide the needed payments, the lender has lesser to lose since the vehicle costs less. In addition to this, the financing provider could easily repossess the vehicle that you are financing.

2. Lower interest rate

Aside from the abundance of offers, financing an affordable car also involves lower interest rates. Lenders usually provide lower rates on this type of vehicle since the risks as well as the amount of money involved are minimal.

This is also the reason why most car financing experts suggest that bad credit holders should finance cheaper cars since this could help them reduce the premiums that they pay each month.

3. Lower monthly premiums

Since the interest rate involved as well as the price of the vehicle is low, the monthly premiums involved in this financing are also low. Due to this, you have all the chances of paying the financing off on time.

In addition to this, you can also increase your credit score. However, you just need to provide the monthly payments on time. Any late or missed payments would surely ruin your credit score so it is better to provide prompt payments.

4. Lower down payment

Finally, financing a cheap car also involves lower down payments. Since the price of the car is cheaper, the percentage that will be calculated as your down payment would also be lower than those that are paid by creditors who preferred to finance high-end or more expensive vehicle types.

Marty Bay is an Automotive Journalist and publisher, widely known as a contributor writer, editor, and publisher for some well-known Automotive Properties in the US like Car Finder, Auto Financing, and AboutCar to name a few. His expertise is in writing news and publishing content that would help New Car Finders, and buyers seeking information about Auto Financing and other New Car related offers, deals, and changes in the industry. He also specialises in producing and publishing New Car Buying Guides for various automotive websites in the United States.

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New Car Loan Buying Tips

If you are thinking of buying a new car through car loan, the task of choosing the car loan financer may be quite cumbersome. But you must be thankful to the technological advancements; it is indeed possible to decide on your car and also its financer just at the click of the mouse. You have to be strong enough in your research to actually strike on a good deal with much savings. If you were going to finance your car through Auto Finance, you would need to be extra smart in chalking out the best of the lot. You find many financers coming up with enticing deals. When you are amidst total confusion about which car finance to opt for, you can use some of the new car loan buying tips and it is sure to provide you with an indepth insight on car financing.

First step towards buying a new car would be accessing the Internet for a pool of information on the deals on new cars and various auto financing options available. Check for online deals on sale of the cars. If you have decided on your car model, you can check for its prices with different dealers. The next step is to find out the best deal on car loans. Low interest car loan is the hot selling point and inevitably attracts many customers. So while you too get drawn towards such a deal, check if such interest rate is really competitive and if it carries any collateral risk. Usually low interest car loans are given if the buyer furnishes a collateral security. Also, if the dealer is offering a low interest deal, check if any hidden costs would harm your pockets. Car financing option should be selected with great diligence, so that the EMI’s don’t over run your budgets. One should have eye to detail on many aspects before going for new car loan. The standard of the financer, the processing time, approval time, rate of interest, processing charges, repayment schedules, network of financers are things that one shouldn’t miss out checking on. Car loan deals can be compared online, which one could never do efficiently in the conventional way of loans. You can compare deals between 3-4 financers and go along with the best suited for you. And it was never so easy to apply for a new car loan. Instant Auto Finance are possible because of online processing. If you have come back from many financers’s offices with a long face just because your loan was rejected, you still have many online options.

Bad credit car loans are easily financed. Regardless of your credit scores, you can now avail of a guaranteed car loan. Well, buying a new car is easy. But, give a thought if that’s really your need. Many a times, people just drive their car out of fascination. When you feel you need a car, its time that you gear up and select the guaranteed car finance option for yourself. A loan makes a huge difference in your savings and life, so choose your deal a little wisely.

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Four Tips For Financing Your New Car

Whilst buying a car is without doubt an exciting time, it can also be stressful and costly. Most people (at least 80%) cannot afford to buy a new car outright. Therefore, most car buyers acquire a new car using a deposit as down payment and obtain car finance to fund the rest. The following five tips are valuable for people considering obtaining a new car as they give different options on how to best to fund the transaction.

1. Sell your current car privately instead of a part exchange – Whilst it is much more convenient to ‘trade in’ an existing vehicle as a part exchange on a new vehicle this will not maximise the money you get for your car. Done primarily for ease and convenience (if you put your car in as part exchange against a newer model you remove the whole selling process, advertising costs, people calling around your home to view the car and being annoyed by phone calls for weeks after the car has been sold), it is a known fact that a part exchange is the least profitable way to sell your car. Therefore, if you have the time and patience, it is advised that you opt for a private sale. Perhaps the best way to determine whether you should part exchange or sell is to determine the market value for your vehicle and compare this with some part exchange values. Whatever the difference between the two can be considered your payment for the hassle of private sale and therefore you can make an informed decision.

2. Car Finance From A Dealership – This is the most popular way to finance a car. Dealers provide approximately 65% of all car finance. The reason for this is that people shop for cars based on the price of the car and because 80% of all new car buyers need finance they end up taking finance from the same dealer that provides the best price on the car.

Dealers typically offer hire purchase or car leasing. Hire purchase is an arrangement where people sign a contract to make monthly payments across 3 – 5 years and they end up owning the car at the end of that payment period. Leasing is slightly different because it is often much, much cheaper you can have the option to buy the car at the end of the period or simply return it to the dealer. However, you must be careful with dealer finance (or any car finance for that matter) and you should always shop around and compare the monthly deal that you have been offered. Just because you negotiated a good price on the car doesn’t always mean that you are getting a good monthly price on the finance. In some cases the monthly payment could have a premium hidden in it with a high APR and therefore the calculation of your monthly payment may not relate to the ‘good price’ that you think you negotiated on your car. Therefore, shop around and compare the monthly payment, the total payment ensuring that you are comparing the same contract period etc with different dealers and finance providers irrespective of the price that you have negotiated on the car.

3. Car loans from a bank – Personal car loans account for only 13% of all new car finance. This is surprising because other than using cash, this is the only form of finance that enables the borrower to own the car from the point of purchase. Therefore, whilst most people think they own the car that they are driving, if they bought the car with finance and are still making monthly payments, then approximately 87% of all new cars are not actually owned by the drivers.

If you are thinking of purchasing a car using a car loan of some form you should always shop around based on APR. There are various comparison websites that enable you to compare car loans but you should always be careful about two things:

(i) the Apr that the website quotes to you is unlikely to be the one that you get. This is most likely the best APR you could get and it is often adjusted to meet how much of a ‘risk’ that bank may think you are;
(ii) do not submit too many applications for finance. If you submit three or four applications to different banks and you are refused by all of them, you might damage your credit record and make it difficult for you to obtain finance in the future. Some finance websites enable you to apply for a loan and they can advise you whether or not you are likely to succeed and this can be a safer way to apply

4. Lease your new car – As discussed above, car leasing is most often the cheapest way to finance your new car. In fact, according to the Finance & Leasing Association, in the first 6 months of this year it was the most popular form or finance provided by dealers. When making a decision on car finance, be sure that you actually need to own your next car? If so, then the only form of finance that permits this immediately is a personal loan from a bank – remember, with hire purchase you will not own the car. If ownership is not so important, then leasing is a cheap form of finance – but you must have a good credit rating. There are many benefits with car leasing as it allows you to receive a new car every few years (although this can change, depending on the lease agreement) without the hassle of a part exchange. However, make sure that you are familiar with the disadvantages (you need to agree an annual mileage limit) and as always be sure to shop around and compare like with like on all alternative car leasing deals.

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