Posts Tagged ‘Car Loans’

Lenders defy Conventional Norms by offering 8 Year Term on New Car Loans – Is it worth it?

Cars and car loans have become equivalent. If you want to buy a new car, an auto loan has become a complete necessity. With growing need of auto financing and increasing competition in the car loans market, lenders are constantly trying to innovate. Past several years have seen pioneering ideas like no money down auto loans and no co-signer car loans. This year has been no different in terms of innovation because lenders have brought highly unconventional “8 Year Loan Terms”.

Auto lenders have become increasingly enthusiastic in offering car loans with unexpectedly longer terms. Experian Automotive March 2013 report divulged information about the average loan terms. The average terms have increased to an all-time high of 65 months. And, now the experts are predicting that 96 month loan term will become popular.

Why are Loan Terms becoming longer?

The report also disclosed the rise in new car loan amount. The average new auto loan amount for Q4 2012 has increased by $272. This shows that car prices are rising steadily which makes it difficult to buy a new car. But, if the new car sales dip, it would affect the automobile industry. So, lenders have started offering longer terms to help Americans fulfill their new car dream.

Also, there is a growing appetite of consumers for car loans. The current economic period is better compared to the recessionary years. Credit borrowers have performed exceptionally well in making regular payments. This allows the lenders to have faith in car buyers.

Benefits of Longer Car Loan Terms

Buying your Dream Car

It is not possible for everyone to buy a new car because of high monthly payments. But, longer terms ensure affordability. This gives you the opportunity of buying any car you want.

Lower Payments

If you opt for shorter term, you have to deal with high payments. But, longer loan terms allow you to lower your monthly payments. This means you will experience considerable ease in making payments. An example will make things clear. If you buy a car for $35,000 at 4% for 4 years, monthly payments will be $790.27. And, if you extend the term to 8 years, payments will be approximately $426.62.

Regular Payments can improve your Credit Score

A 7-8 year loan term is a big responsibility. If you are able to make regular payments, your credit score will definitely increase. It will also show other lenders of your commitment and financial capacity.

Problems with Extended Loan Terms

Pay More towards Interest

Longer loan terms give you flexibility by offering affordable payments. But, you have to pay a price for it. Over the entire term, your total interest amount will be on the higher side. Let’s use the same example of $35,000 car at 4% for 4 years and calculate your total payment towards interest. It will be $2,932.81. And, if you opt for 8 year loan term, it will be $5,955.97. This means you will have to pay $3023.16 more.

Higher Chances of Upside Down

A car is a negative asset because its value decreases over the period of time. The depreciation rate of a new car is phenomenal which means there are higher chances of an upside loan. If such a car is stolen or is involved in an accident, the insurance amount won’t cover your loan amount. This will be detrimental to your financial condition.

Maintaining your Car

If your car has warranty, your maintenance cost will be low. But, when you opt for 8 year loan term, your car will not have any warranty in the last few years. This is because most new automobiles come with warranty of 3-5 years.So, your maintenance cost will increase in the future.

Every innovation has its pros and cons. And, its importance is going to be different for every individual. So, think through and decide whether “8 Year Loan Term” is a stunning opportunity for you.

Best of luck in choosing the best new car loan term!!!

Be the first to comment - What do you think?  Posted by Rock Watson - July 6, 2013 at 4:37 am

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Renew Your Hopes of Getting Bad Credit Car Loans with These Important Tips

Facing constant rejection because of your bad credit history? Do you believe that low interest rates are just reserved for people with good credit? Do you think buying a car is just a distant dream for you?

Well, this piece of information can provide you relief and substantially increase your chances of getting an affordable auto loan. Last month Reuters ran published an article titled, “Car lenders ease credit standards and terms to spur loans”. It mentions that lenders consider car loans safe in comparison to mortgage and credit card loans. Also, lenders are now offering lenient credit terms due to weak credit demand. One of the credit bureaus, Experian, mentioned that percentage of new car loans for bad credit borrowers increased by 11.4% this quarter compared to last year. This means people with bad credit can even buy a new car without any trouble.

So, getting bad credit car loans has become possible today. There is no better time to buy the car of your choice. But, are you still unsure of getting an affordable car loan? If you are still in doubts, make use of these strategies and not only get instant approval on your bad credit car loan but also avail the lowest possible rates.

Preparation Is the Key

Buying a car is major decision because you spend your life-savings on it. It is a commitment of making regular payments. You just cannot go to a dealer without thorough research. So, before purchasing a car or applying for an auto loan, here are few important things that demand your attention.

Clean-Up Your Finances First

Whenever you want to buy a car, do not just rush into the decision. You must sign the dotted line only after you are sure of what you are getting into. There have been instances where lenders have duped innocuous borrowers on the pretext of bad credit score.

It is always important to study your credit report before visiting the lender’s office. You can get a free annual copy of your credit report from annualcreditreport.com. Study all the entries and dispute for any unwarranted transactions and errors. It is a known fact that credit bureaus commit mistakes while calculating your credit scores. You can improve your credit by removing all the errors. Also, start making payments on your debts. Even if you can pay-off a few of your debts, it will have a positive impact on your credit score. Doing all this requires time and that’s why you must comprehensively plan your car purchase and avoid a hasty decision.

Down Payment to Down Your Rates

The initial upfront amount that you pay for buying a car can be a useful way of reducing interest rates. Making a substantial down payment of ten to twenty percent can lower your loan amount and thus, the lender’s risk. Also, the lender will be assured of your financial stability. This will definitely bring down your car loan cost.

Co-Signer – A Comforting Thought for the Lender

When you have someone to co-sign your car loan contract, the lender is assured of his money. This is so because he can get it from the co-signer if you miss out on payments. Finding a co-signer is a bit tough but if you can manage one, it would work wonders for your car loan.

If you just cannot find a co-signer, you can avail auto loans without co-signer which come with slightly higher interest rates. Nonetheless, it is important that you exhaust all your options before opting for no cosigner car loans.

Online Bad Credit Auto Loans – A Better Option

An online bad credit car loan offers you the option of getting an auto loan without leaving the comfort of your house. You can apply by logging in to your computer. Online car financing companies are a perfect choice because banks do not entertain people with poor credit. To avail money from a credit union, you need to be its member. When you apply for a car loan from an online bad credit auto financing company, you have the option of comparing several auto loan quotes. This is not possible when you avail dealership financing.

Also, online car financing companies work with several subprime auto lenders which make it easier for them to process your auto loan application. This drastically improves your chances of getting a low interest bad credit auto loan.

How to Choose Your Bad Credit Car Loan?

Choosing a bad credit car loan is easy if you carefully read the vehicle loan contract. It is essential that you do not just focus on low interest rates, but instead look at the bigger picture. Calculate Annual Percentage Ratio (APR) which will tell you the interest rate for a whole year instead of the usual monthly rate. It also considers fees like loan origination fees and other miscellaneous expenses which will give you a better idea of the cost of car loan.

Check for any pre-payment penalty because it can significantly increase your expenses if you decide to pay-off your loan early. Ensure that the lender is a reputed name in the auto financing industry.

A little bit of caution can take you a long way in securing the best auto loan option. Bad credit is never an issue if you know how to tackle it. These strategies and important cues will help you get easy approval on your car loan application.

Remember bad credit is just your history; it is in your hands to write your future. Go out there and turn your car dream into reality!

Rapidcarloans.net firmly believes that bad credit history should never become an obstacle in buying a car. We offer bad credit car loans at competitive rates to buy new as well as used cars. Apply today and forget all about your poor credit score!

Be the first to comment - What do you think?  Posted by badcreditcarloans - December 4, 2012 at 10:56 am

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Used Car Loans – Great Alternative for People with Bad Credit

Are you interested in buying a used car but worried about your bad credit score? What if you are told that bad credit can no longer be a problem in getting such loans? Gone are the times of constant car loan rejection because of poor credit score. This article will let you know ways to enjoy lower rates on your car loan as well as help you improve your credit ratings.

Used Car Loans – Perfect for Bad Credit Borrowers

Auto loans for used cars are brilliant for someone with a bad credit score. The logic behind it is that used cars are relatively cheaper than new cars. So, the total loan amount reduces significantly. When you have lower auto loan amount, it becomes easier to pay-off the loan. That’s how you don’t need to put in extra efforts for improving your bad credit score.

How to get approved for Bad Credit Used Auto Loans?

Cars are not only a major investment but also an essential element of American life. When you buy a car, you make a commitment. So, it is important that you are prepared for it.

Ascertain your Financial Capacity

For buying any car, you need to be sure of it financially. You cannot buy a used car without thinking about auto loan payments. So, prepare a budget by calculating your income as well as expenses. Once you know how much money you can afford to spend on monthly payments, you will find it very easy to choose a car.

Reliability is the Key

Don’t buy a car just because it looks good. Buy a car because it works good!

It is extremely essential that you choose a reliable and efficient car because car purchase is not like buying coffee from Starbucks. You don’t do it every day. So, choose a car only after inspecting it thoroughly. Ask your trusted mechanic to inspect it. Also, check the car title and ensure that it is clean.

There is no harm in buying a car from private seller, but make sure that you know all about the car. Also, remember that when you buy a used car from a non-dealer option, opt for a private party auto lender that deals with subprime credit.

Checklist of Documents

Lenders require documents so that they have a written proof. Although every lender has different criteria of documents, these are the most common ones:-

>> Your Credit Report

>> SSN

>> Income and Employment Proof- Recent pay stubs can be used

>> Documents related to your Credit/Banking History – Bank statements, credit card details, etc.

>> Utility Bill

>> Car Title

>> Odometer Statement

>> Car’s purchase price, VIN, year of manufacture, car make and model.

It is quite possible that your lender may ask for an Employment Verification Letter from your employer. So, be ready for it.

Choosing the Right Lender

You must search for a lender who specifically deals with bad credit and gives you the much needed second chance for improving your credit score. You can make use of the internet to search for a subprime lender or a used car financing company. Don’t forget to ensure that the lender is reliable.

When you are prepared for a used car loan, lenders and dealers will know how serious you are in getting approval. When lenders will be very much sure about you, getting an auto loan for older car won’t be a trouble for you.

You may have been tired of ceaseless rejections from lenders and dealers. Being a high risk credit borrower is the reason for it. But, you can fight this problem by lowering the credit risk associated with you. Use the tips and information mentioned in this article and get ready for bad credit used car loans with low rates.

Best of Luck! Grab that second chance of improving your credit score and drive your car today!

Rapidcarloans.net is a reliable bad credit used car financing company that offers lowest rates on used car loans. It has several years of experience in providing car loans for bad credit borrowers. Apply now and get the benefit of free no obligation car loan quotes!

Be the first to comment - What do you think?  Posted by badcreditcarloans - at 10:54 am

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How to Avail a Car Loan with No Credit?

Are you frustrated of the fact that your auto loan application is constantly rejected? You filled out forms on several websites but no good came out of it. The only reason that lenders give you is insufficient credit history.

Well, credit score is an important factor for financing a car. To establish a good credit history, you need to make regular monthly payments. To make payments, you first need to get loan. And a no credit history disallows you to get easy car loans. This is a very frustrating cycle that continues.

But, you now have the option of breaking this horrendous cycle. You now have the opportunity of building your credit score without wasting money on outrageously high interest rates. You may think this is too good to be true. But, there are several lenders who offer auto loans to people with no credit.

Why Do The Lenders Offer No Credit Car Loans?

Lenders know that lack of credit history doesn’t mean you are financially incapable of making regular payments. It is definitely possible that you don’t have a credit history because you never needed to avail credit until now. Lenders also know that several people with no credit ratings are young college students.

They understand the importance of building a credit score and hence, offer zero credit auto loans.

Nothing Will Work Unless You Do – Maya Angelou

Lenders are ready to offer you car loans but you will also have to prove your financial capability. As your credit score is weak, you need to improve on other aspects.

What Factors Are Considered By Lenders While Approving Your Loan Application?

Your credit is one of the many factors considered. Others include:-

1. Employment

2. Income

3. Proof of residence

4. Down payment

5. Co-signer

So if you are employed for over a year and have a stable income, you can get zero credit auto loans. Generally, getting a co-signer becomes difficult. So, lenders offer no credit no cosigner car loans. But, like I said make other aspects strong to get more benefits.

How to Check Your Credit History?

Before applying for zero credit car loans, it is important to know whether you actually have inadequate credit history.

According to Federal Law, you are allowed to get one free credit report per year. Go to freecreditreport.com in order to get it. There is a possibility that a certain gym membership or departmental store credit card was just enough to generate a credit rating.

You must know that if your Experian report says 9002 it means insufficient reporting to establish a credit score.

After you are sure of no credit rating, only then apply for zero credit auto loans. Otherwise, you can for the usual ones.

How to Select an Auto Lender?

Choosing the right lender is an essential step in building an excellent credit score. This is because the lender is the only person who is going to inform the credit bureau about your loan.

As every lender has different requirements and criteria for approving loans, it is essential that you apply on several websites. Once you fill the form, the company sends your application to its network of lenders and dealers who bid for it. After that, the best offer is selected for you.

When you apply on many websites, it is obvious that you will have the decision power in your own hands. In order to do so, don’t just concentrate on comparing monthly payments. According to the law, every lender is required to mention APR (Annual Percentage Ratio) in the loan contract. It will help you to know the exact cost of loan per year. Also, evaluate the lending terms and conditions. If the lender has a pre-penalty clause, you must stay away from him.

What Should I Do If I Get High Interest No Credit Auto Loan?

It is unlikely that you get high interest loan. But, even if you avail an unaffordable financing option, you can always go for car refinance. After making few payments, there will be an increase in your credit score. Check it beforehand and then apply for refinance.

Do remember, “With smartness and patience, everything is possible”. So go ahead, avail an auto loan for no credit history and enjoy the comfort of your car.

Rapidcarloans.net believes that every individual must have the privilege of enjoying the comfort of car. Hence, we offer car financing for no credit history. Apply for guaranteed auto loans on our website and enjoy the most competitive interest rates.

Best of Luck!

Be the first to comment - What do you think?  Posted by carloans4nocredit - March 22, 2012 at 8:30 am

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Buying a Car from Your Neighbor is Easy with Private Party Auto Loans

A car’s basic purpose is to take you places. The lender shouldn’t mind if it is purchased from a dealer or a private party. Here’s your gold mine of information to help you get approved for private party auto loans. Get the best tips to buy your dream car.

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Be the first to comment - What do you think?  Posted by Alan Hendricks - February 24, 2012 at 11:24 am

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Pre approval for car loan help you in comparing prices

Auto loans are an easy and simple way of buying a new car. Previously there were limited auto car loans but now there are many different types of auto loan. Everyone can get the auto loan of his choice without worrying a lot. The base of all the loan plans is almost same however they might differ in name, terms and conditions, policies, duration or the interest rate. It completely depends upon the choice of the costumer what type of loan plan he wants to choose. Sometimes your bank history also plays an important role in selecting the loan type. One of the most important things about the loan is auto loan interest rates. Everyone look forward to avail lowest interest rates. The interest rate of the auto loan depends less on the choice of the costumer but more on the loan type.

Pre approved car loan is an easy way of getting car loan. The pre approved car loans safe your money as you can direct contact the bank rather than contacting the dealer. Doing this you can safe your time and you do not have to pay any extra amount of the dealer. The approved auto loans are the good choice for the people who have bad bank history. Most of the time the dealer tries to fear you regarding your bad credit history and you accept the deal at once offered by them. But when you have approved loan you can compare different rates in the market and can easily shop around. These loan types also help you to enjoy low interest rates.

Subprime car loans are also for the people who have bad credit history or have faced bankruptcy in past. The subprime loans are offered when there is some doubt that the borrower will not be able to repay the interest on time. The subprime loans usually have high interest rate or there is less facilities for the costumers. The subprime loan plan is for new as well as used car depending upon your choice. The interest rate for new car is different as compare to interest rate of used car.

Be the first to comment - What do you think?  Posted by Shelin Michel - January 18, 2012 at 8:44 am

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Pre-Qualify For A Car Loan Approval Despite Your Bad Credit

There could be few lenders on the internet who provide pre approved auto loans to help borrowers with poor in financing cars. The primary benefit of getting your car finances pre-approved is that based on your monthly income, you could be able to determine the overall affordability of the loan well in advance. As a result, there are less chances of defaulting on the monthly auto loan installments and one could find it much easier to build up credits much faster. Nevertheless, to make sure that you derive the best out of your car financing loan, it could be advisable to consider buying a used car. Besides, you need to have some information about the interest rate.

AutoDriver offers professional services online to guide borrowers in exploring various auto financing loan options as well as in enabling them to choose an option that best fits their specific financial situations regardless of the status of their credit histories.

Pre-approval car loans with bad credit could be extremely beneficial as they provide lot of bargaining power to the applicant. In a typical process, a borrower could be enabled to know the rates of interests which he could afford to pay back as well as the amount of loan he could be eligible to receive. Furthermore, one could get the interest rates lowered by opting to pay a sizable down payment or by providing a cosigner who has an excellent credit reputation. Such propositions invariably tend to reduce the lending risks of lenders.

For finding the lowest possible new or used car loans rates for bad or no credit online, it could be essential for an applicant to invest some time and engage himself in a bit of some comparison shopping online. To that effect, you could get plenty of free no obligation quotes offered by different lenders and compare them with the help of an online auto loan calculator or a comparison website. The process could be strenuous but by taking advantage of help provided by experts who are well versed with it, it could appear to be easy.

AutoDriver could actively assist you to get an instant pre-qualification car loan approval online even if you have a poor, bad or no credit history. In addition, you could be helped to secure a solution which is very much affordable as well as favorable to satisfy your unique financial needs and requirements.

Be the first to comment - What do you think?  Posted by Shelin Michel - January 4, 2012 at 8:43 am

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Get Military Auto Loans And Enjoy It’s Benefits!

Many military personals are searching for car loans. But most of them are not aware about special auto loans for military. These loans are especially provided to the military personal. They come attach to many more benefits than other traditional auto loans. Military members can surely benefit from such loans. Companies like Autodriverprovide services for s and help the needy people in getting their car of dreams easily.

Military auto loan can be availed by men and women in military forces; they can easily purchase their new or used car through this loan. The borrowers can even refinance their auto loan for low rates and long repayment plans; this would in turn help them to lower down their monthly payments easily.

Benefits of military auto loans
Military auto loans have many more benefits as compared to regular auto loans. The borrower can easily get low interest rates on new car loans after availing this loan. Even he can access the flexible terms that comes along with this loan. Lender’s risk is also reduced while dealing with military personal and thus he gets ready to offer loans at lower interest rates.

People who serve in military can also get car loans with no credit at flexible terms and affordable rates, thus this is the maximum benefit anyone can get. There is also a lot of flexibility in the loan terms and thus borrower can enjoy the required freedom.

Approval criteria
All those who serve in military can get this loan; even the retired personal and their family members can take advantage of the military auto loans easily. The borrower just needs to provide a certificate that he is actively serving in military. He also needs to give the address proof, telephone number and also the reference contact number. All these things are necessary to get approval for military auto loans.

Be the first to comment - What do you think?  Posted by Shelin Michel - December 30, 2011 at 6:05 am

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Qualify For Low Rate Post Bankruptcy Auto Loans To Improve Credits

It may not be easy to get an early approval for auto loan bankruptcy since not many lenders could be willing to take the risk of lending money to applicants who have a really bad credit. Typically, bankruptcy filing could have an adverse impact on your credit scores for years to come and by qualifying for a car loan after you have been discharged for your debts, you have the real chance to rebuild your credits. Nevertheless, it does not mean that finding an auto loan with a past bankruptcy record is impossible. On the internet there could be few lenders that specialize in providing car loans post bankruptcy. You just need to have proper information.

LoansStore offers professional services online to guide borrowers in securing highly customized new or used car financing loans which work best for their specific financial situations regardless of the existing status of their credit histories.

When you go online you could find certain lenders who provide car loans after bankruptcy to help applicants in purchasing vehicles that fit their budget. However, the rates of interests provided could be considerably higher as compared to those offered on other type of conventional auto loan finances. After all, lenders do perceive risks while lending money to borrowers that have extremely bad credit but such circumstances could be easily overcome by taking a cou0le of vital aspects into consideration at the time of filling out a bankruptcy car loan application. Remember, if lenders get convinced about your ability to repay the loan, approval is guaranteed.

You chances of getting a guaranteed car finance online after you have been discharged for your debts through bankruptcy process could get greatly enhanced if you could pay a large down payment or manage to get a credit worthy cosigner to provide guarantee for timely repayment of your loan dues. Such propositions tend to reduce the lenders’ lending risk and permit you to avail auto loan rates which you could afford to pay back regularly. In any case, for finding the lowest possible interest rates on your bankruptcy auto finance loan, you need to compare free non-binding proposals offered by different lenders by using a calculator.

LoansStore could actively assist you to get a quickly approved foe used or new car financing loans online even if you have a poor, bad, really bad or no credit history. In addition, you could be helped to secure a solution that is very much affordable as well as favorable to cater to your unique financial needs and requirements.

Be the first to comment - What do you think?  Posted by Shelin Michel - December 22, 2011 at 7:48 am

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Lower Interest Rate Is Not the Only Criteria to Compare Auto Loan Quotes

Commuting every day to work in crowded buses or traveling in jam-packed metros is a nightmare. It is for this reason that cars are being given a serious thought. If you own a vehicle, you can go places and get your work done faster. Cars are beyond doubt an essential element of every home!

Driving a car is an amazing experience, but buying it is a great pain. Why? Well, affordability is the main reason. Even used cars have become very expensive these days. One can buy a car only with an auto loan. And is getting loans, easy? I wish it was.

Walking down to every lender, filling up several forms, waiting for loan approval, too much, eh? Want to turn this awful experience into a fabulous one? Want to make it more quick and easy?

By the end of this article; you will be having an exact idea of getting that auto loan which has been so far elusive.

“Any Sufficiently Advanced Technology Is Indistinguishable From Magic” – Arthur C. Clarke

Truly, internet is magic. There is no denying that. It has ushered in an age of quick solutions to everyday problems. It has made the tedious auto loan process very simple. The era of waiting has long gone. So, without wasting any time, let’s comprehend the entire process of getting online auto loans.

To Do It the Right Way, It Is Important To Know It Well

When you have to avail instant loans, it is important that you do your homework. You will have to consider how much you can afford to pay and also take care of your credit score.

Money Matters

No matter what any lender tells you, never go for a loan when you cannot afford it. Lenders have the habit of luring you into their schemes and when you cannot pay they just take away your car.

So, please consider how much you can pay and then go for a loan.

What’s Your Score?

Your credit history has a lot to do with your loan approval ratio. Avail your free credit score from theAnnualcreditscore.com. Check for any errors and make sure you know your exact credit score. This is important because you will at least know where to apply.

Are You Ready For an Online Shopping Experience?

Get online to search for reliable lending companies. Online companies partner with several institutions to help you avail instant loans.

Different Companies Work In Different Fashion

Few companies work with a particular network of dealers. If a dealer approves your loan, you will have to go him in order to choose your car. Now, if you don’t like any car, you can move on to the next dealer who offered you the next-best deal.

Then, there are companies who do not work with any specific dealer group. Such companies will approve an amount for you, which can be used at any dealer. This method is more common than the previous.

Online lenders will have one common thing in their websites. It is the “Get a Quote” option. When you click on that option, you will get a loan application form. You will have to fill in your personal details like your SSN, employment history, income, existing mortgage, current loan payments, etc. If you have already chosen your car, the car’s VIN is asked. Also details about the dealer will be requested.

Be sure to complete the application form and don’t give any deceiving information. A small difference in income or employment date can cause major changes in your interest rate.

Once you fill the form, the site will send your quote to several affiliated lenders. These lenders will send it to the local lender (of your area). After the local lenders compete for your application, you will receive a list of lenders who are keen to offer you loans.

It may happen that your application is accepted by several lenders and you will have the option of choosing any one. It is also a possibility that you may only be given the name of the lender who offered you the best deal.

Whatever the procedure, you shouldn’t really settle on any company without due deliberation.

Compare Quotes

You must compare quotes and not rely on any one online lender. Make use of the “Compare Quotes” option. With it, you will be able to make a side by side comparison of quotes.

It is important to have a broad perspective and understand every aspect before signing the dotted line. So when you compare your quotes, you must keep the following factors in mind:

1. Be Cautious

You need to realize that there are several loan sharks lurking to trick you. You should be alert while dealing online. Ascertain the company’s reputation. Read its privacy policy. You shouldn’t decide on a company if it asks to pay a huge up- front fee.

Also check the security of the website. If the URL doesn’t begin with HTTPS ( https://www.rapidcarloans.net ), it is not secured. Never share your personal details on such a site.

2. The Total Cost

There are several costs that are not obvious but form an important part of your loan. You will have to pay origination/processing fees and several other charges to the lender. Be aware of all the hidden costs associated with the loan.

Make sum of all the monthly payments, fees and charges. Once you do that, it will be very easy to compare auto loan quotes.

3. APR

Lower the APR, the Better It Is!

The Annual Percentage Rate includes interest rate and all the fees and charges. It is shown in percentage and reveals the real yearly cost of the loan. If APR is lower, you will have to spend less on the loan.

When you compare APR, you will come to know that it is not always true that lower interest rates are beneficial. They are good when coupled with lower fees. So, don’t go for a loan just because it is available at lower interest rates.

4. Loan Term

Stay Away From Longer-Term Especially When Buying a Car

Any car depreciates as soon as you drive off the lot. A longer-term loan will be dangerous as you will be carrying more risk of owing more than the value of your car. You will have more chances of getting stuck with an upside down loan.

5. Payment Liberties

You can always benefit by making few extra payments. See if you can negotiate and have pre-payment privileges. Compare loans on the basis of number of extra payments allowed.

Also check for any pre-payment penalty. There are lenders who will impose a penalty for paying off the loan early. You shouldn’t agree on such a term as it is of no benefit to you.

If you consider all the factors, it will be useful to eliminate those scam websites. The internet is useful only when you are guarded.

Get online, stay vigilant and you will find that affordable auto loan within just few clicks.

Choose wisely and don’t forget to compare!

Be the first to comment - What do you think?  Posted by carloantypes - October 6, 2011 at 6:38 am

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