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Auto Loans
Updated: March 1st, 2012 by
Timothy James
--
Looking for an auto loan? We have compiled a
useful guide to help you through the process
and have also reviewed a number of
recommended auto loan companies who can help
you finance a new car
This guide
will give
you
important
information
you should
know before
applying;
such as:
Introduction
To Auto
Loans.
Getting Auto
Loan
Approval.
Dealer
Finance
Tricks.
How To Get
An Auto Loan
Fast.
Bad Credit Auto Loans:
Auto Credit Express-
A new and recommended
service who can help
if you have credit
issues.
Most
people buy a car backwards by visiting a dealership
first to find the auto they like and then look for finance. This often results in disappointment as well as a big waste of time because that dream auto you set your heart
on stays on the lot because you can’t raise the
finance!
The sensible way to buy an auto is to check out your credit status, how much you can afford to borrow
first and then look for an auto that fits your budget.
Getting Auto Loan Approval
Find out how much you can likely borrow by speaking
to an auto loan provider such as one of the companies we have listed further below. If you speak to someone, be clear that you are
checking out how much you can borrow and not making
an application - you don’t want unnecessary credit
searches marking down your credit score.
As I said, you can check this out online for free at one of the providers that we will recommend in a moment. They have affordability calculators that
will give you an instant quote without searching
your credit file. (You can also try our vehicle affordability calculator)
Always be realistic about your budget and do not
over commit to borrowing more than you can
comfortably repay. Remember, dealerships will blur the financial issues by trying to persuade you that your auto makes a personal statement about you - but they earn money selling
autos and don’t have to pay your bills. The reality is that they don't care about you one bit!
Dealer Finance Tricks
If you go to a dealer with a pre-approved auto loan,
they will try and switch or flip you to their own
auto finance by offering lower repayments.In most cases, dealer finance is more expensive than
arranging your own loan and they make their loan
repayments look cheaper by manipulating the
borrowing terms.
Remember, autos are depreciating assets - their value
decreases with age and use - so extending the
repayment term to four years or more or making a
balloon payment bigger means you'll have less money as
a deposit for another auto when you want to change.
The rule is, always take the shortest repayment term you can
afford, and unless you intend to keep your auto
long-term, three years is the best timescale for an
auto loan. (Try using our auto loan payment calculator)
If the dealer has flexible loan terms and
repayments, that’s because they have a hidden charge
called a ‘marked up interest rate’.
Often, a dealer tries to sweeten and close the deal.
They don’t do this because they are kind people,
they are taking less profit from the auto finance -
that means you are not receiving as competitive a
rate as you could find by arranging your own loan.
Dealers have a margin they want to earn from the
auto sale that comes from marking up the finance and
auto price. They will simply switch the figures to
make the deal seem more attractive.
Auto Loan Terms Explained
Lenders and dealers tie up their auto loans with
jargon - so here are some of the most common terms
explained:
Annual percentage rate (APR) - Loan
interest rates are expressed as an annual
percentage rate to help consumers compare
deals on the same terms.
It’s also helpful to look at the total cost
of borrowing - for instance a four year loan
will have lower monthly payments than a
three year loan, but more interest is
charged because the loan lasts 12 months
longer even thought he APR stays the same.
Balloon - the final payment you make
to the lender to own the auto.
Cash due at signing - the cash you
hand over to secure the auto, like the
deposit and first month’s loan payment plus
any set up fees.
Gap protection - insurance that
covers any difference between the insurance
pay out if the auto is written off before
the loan ends and the amount outstanding to
the lender.
Marked up interest rate - the margin
charged by the dealer on top of the APR.
If you are looking for a auto loan, please read the following reviews of our recommend services and lenders and choose which is suitable for your needs and circumstances.
Auto Credit Express specialize in auto loans for bad credit
Auto Loan Soup is a great auto loan comparison site
Money Aisle is a loan site with a difference!
Read the reviews below...
Auto Credit Express
A recommended
service who can help
if you have credit
issues.
Who are they?
Auto Credit Express began life in 1999
and has so far helped over 1million
people with bad credit to successfully
apply for an auto loan. They specialize
in providing competitive auto loans to
people with bad credit, no credit,
bankruptcy orders and previous auto
repossessions.
What do they do?
As mentioned above, Auto Credit Express
provide bad credit auto loans to people
who have need of them. They manage this
by working in close unison with car
dealers who are willing to give car
buyers the second chance they need. They
also work closely with the internet’s
largest auto loan financing companies to
ensure a good deal for their clients,
even with bad credit.
To make sure you are eligible for an
auto loan before actually applying, Auto
Credit Express have a ‘qualify before
you apply’ process. You simply choose
which category you fall into with
regards to your credit status (good,
fair, bad etc), input your monthly
earnings and your principal monthly
outgoings, and the calculator tells you
roughly how much you are eligible to
apply for.
If you don’t know your credit status you
can find this out on the Auto Credit
Express website as well.
Once you have a figure, you can apply
for an auto loan with a single click.
What services do they provide?
In addition to the ‘qualify before you
apply’ service and the instant
application process, Auto Credit Express
also provides a number of financing
calculators aimed at helping you
discover just how much you can
comfortably borrow in the form of an
auto loan. They have credit tools and
resources on the site as well as pages
of information pertaining to auto loans,
and in particular bad credit auto loans.
Highly
Recommended!
In
Summary...
Use the
‘qualify
before
you
apply’
service
to see
if you
are
eligible
for a
bad
credit
auto
loan.
Apply
online
in a
matter
of
minutes,
and
receive
an
instant
pre-approval
decision
in many
cases.
Get the
car that
you want
even
with bad
credit,
bankruptcies
and
previous
repossessions.
Another good auto
loan service which
allows you to
compare quotes
online.
Who are they?
Auto Loans Soup was launched in 2003 as
an all-in-one auto finance shop. They
have a policy of not discriminating
against those with sub-prime issues or
bad credit and offer all of their
services free of charge.
What do they do?
By inputting your personal details into
the Auto Loans Soup website you begin a
search that not only provides you with a
list of potential auto loan lenders, but
also a list of dealers within your area
willing to work with you to get you the
car of your choice.
Even if you have a less than perfect
credit score you can still get plenty of
auto loan quotes from a single search.
It doesn’t matter whether you want to
buy a new vehicle, a used vehicle or you
want to refinance the vehicle you
currently own, you can still get auto
loan quotes from the top lenders in the
nation. And if that isn’t enough you can
also get a wide range of insurance
quotes to go with the auto loan quotes
and the list of auto dealers willing to
help…hence their status as an all-in-one
auto finance shop.
The search facility and indeed the
application process are free to use at
Auto Loan Soup, and if you decide the
quotes aren’t to your liking then you
are under no obligation to buy.
What services do they provide?
The main aim of Auto Loan Soup is to
provide you with a range of auto loan
quotes and the names of auto dealers in
your area that will accept you as a
customer. To do this they offer a
comprehensive online search and
application service, a loan repayment
calculator and the ability to search for
insurance quotes as well.
Recommended!
In
Summary...
Find
both an
auto
loan
lender
and a
dealer
willing
to work
with you
in your
search
for the
vehicle
of your
choice.
Find
insurance
quotes
at the
same
time.
No
discrimination
for less
than
perfect
credit
scores.
An
all-in-one
auto
finance
provider
with no
hidden
fees.
Money Aisle launched in 2006 with the
intention of offering consumers a way of
finding the lowest possible rates on
refinanced, new and used auto loans.
Today they offer a wide range of
financial products, including all forms
of auto loan, personal loans and savings
accounts.
What do they do?
Money Aisle works is a very different
way to most auto loan websites. Normally
you would input your personal details
and wait for lenders to quote you on
what it would cost for the amount you
want. These quotes are fixed quotes and
no amount of negotiation is going to
reduce them.
At Money Aisle however you input your
details and lenders bid for your loan
request. The auction is live and the
bids progressively get lower as one
lender outbids another. When you reach
the point where no further bids are
coming in you choose the lender you feel
most comfortable with.
This reverse auction method provides a
number of instant quotes and you can
apply for the one(s) you’re interested
in from the website. The application
process is very simple and you can even
get instant approval in some
circumstances. Many consumers have saved
upwards of 5% on their interest rates
just by refinancing through the Money
Aisle site.
What services do they provide?
The main service offered by Money Aisle
is the reverse auction method of finding
auto finance. They do however offer the
same method of finding boat finance, RV
finance, CDs and high-yield savings
accounts.
Recommended!
In
Summary...
Enter
your
details
on the
Money
Aisle
website
and see
nearly
190 of
the
nation’s
top
lenders
bid for
your
business.
Save an
average
of $1200
per year
by
refinancing
your
auto
loan.
Find new
and used
auto
loans at
much
lower
interest
rates
than you
would
from the
major
banks
and
building
societies.
Take
advantage
of the
online
application
and
instant
approval
processes
for
peace of
mind.
Approvals.com is a
Credit
Card, Loans and
Mortgage website with great
deals for saving money. Our
main offerings include:
Credit
Card Comparison
shopping, Credit Score
Information, Current
Financial News, Bad Credit &
Auto Loan Approval Guides
and
Personal Loans.
Common Tags:
Loans, Auto loans,
Bad credit auto loans
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