Auto Car Loans

Financing car repairs is a tremendous idea when looking to save on repairs, but you do have to be smart in your decision when shopping for the loan. Often times you will find that some lenders like to take advantage of their customers, so proper research is required when financing car repairs.

Usually the single most important determining factor in getting approved for a loan is your credit score. The quality of your score will determine the interest rate you receive, and obviously the better the score, the better the rate. Unfortunately if you have a bad score, the interest rates can be inflated to unfair levels, and make taking out a loan difficult.

You can avoid these ridiculous interest rates by doing a couple things. If you can, always go with an asset based lender. These lenders focus very little on your credit score, therefore the interest rates are fair and equal for all applicants.

If you are not going with an asset based lender, make sure you only apply for what you need. When financing car repairs, every little bit you finance is going to affect your payments, so only apply for what you absolutely need. If you have any amount of money to pay a portion of the repair before taking out the loan, do that. This will lower the principle amount that you must borrow, therefore lowering your payments. Continue Reading

Here are some alternative car financing options you may never have thought about before. Researching these options could save you money and give you peace of mind, knowing you are not over-paying on your next auto loan.

Because a new or used car is usually one of the second largest investments we have after our home; it is wise to look at alternative car financing options. Having an automobile in today’s world is more of a necessity then it is a luxury. Most people need a car to get back and forth to work and get their kids around town.

The most common car financing option is that which the dealership offers. This could be through the manufacturer or another financial institution the dealership has a relationship with. Where this may be the most convenient car financing option, it may not be the cheapest. However, because you will be taking care of the financing right there at the dealership, this could save you time. So, take a look at what you are paying for the convenience.

Leasing could be another car financing option. Leasing a car could save you in up-front costs. Typically leasing a car requires no down payment. In addition, the monthly payments are usually lower than purchasing the vehicle. And, one more feature is that you will probably not have your first payment due until 45 days after the lease is drawn up and signed.

With a lease, you will want to read the lease agreement thoroughly. Be aware of the mileage limits so that you can avoid the high fees you will be charged at the end of the lease if you should go over.

Next, you could finance with a credit card. If you have a card with a large limit, you can usually get cash for the amount you need to finance the car. Compare the interest rate on the card with other loan financing to see which would make more sense and save you money. Go with the terms that offer the lowest interest rate. Continue Reading