Advice for Buying a Used Car

Through the years we’ve seen a lot of people come through our used car lots looking for a good deal on used cars. Based on this experience, we have some advice for consumers, whether you are a first-time buyer or an experienced car buyer. Most importantly, relax and have fun. Pay attention to these few simple tips and there’s no reason you can’t drive off the lot with a great car at a great price.

Prepare a Budget

It’s smart to come into the dealership knowing how much you want to spend. You can do this as a total price. If you plan to finance the car, it may make more sense to calculate a monthly fee that fits into your budget. When you pay more than you wanted for a car, it can cause unnecessary stress. If you scrimp too much you could deprive yourself of the vehicle you really wanted.

Do Some Research

A number of industry publications give insight into each model and make of vehicle you are interested in. You can find out the estimated value of each vehicle depending upon how old it is, how much mileage is on it and its condition. You can also find out estimated ownership costs for such things as gas mileage, expected maintenance costs and anticipated insurance premiums. The more research you do the more likely you will buy a car that is perfect for your lifestyle and budget.

Must-Have Features for New Cars

Car technology has most certainly come a long way over the centuries. As you’re exploring which new car is the right fit for you, you might feel overwhelmed by the sheer number of features and technology you have to choose from. As you’re preparing your finances for car loans, make some time to see which features are true must-haves for your next car.

Height-Adjustable Lumbar Support and Power Driver’s Seat

You want to be as comfortable as possible while behind the wheel, for your own sake as well as everyone else’s on the road. Your car seat should have height-adjustable lumbar support so you can sit easily and comfortably. When you’ve thrown your back out of whack and are driving to the chiropractor, you’ll be glad your seat can change positions to accommodate you and your needs.

Automatic Emergency Braking

Because there’s no accounting for everyone’s driving ability and habits, you should drive a vehicle that has automatic emergency braking. This particular feature can sense a potential collision and brake for you if you don’t do so in time yourself. Not only is automatic emergency braking good for your safety, it’s a feature that can save on the cost of insurance as well.

Forward-Collision Warning

Paired with automatic emergency braking, a car with forward-collision warning can go quite a long way in keeping your car structurally intact. A combination of lasers and cameras is what allows this particular feature to work. Rather than automatic braking, you’ll receive an audible warning to take action before an accident occurs.

Backup Camera

Get a better view of everything behind you while in reverse with a backup camera. This can come in handy while parallel parking, and it can keep you from running over an object behind your car that you might otherwise be unaware of.

These are just a few must-have features for your next car. Use them as a jumping off point to explore more and find the car that’s perfect for you and your driving needs.

Tips for Purchasing a Used Car

If you’re planning to purchase one of many great used cars, you may be wondering how to get the best deal. Price can depend on the type of vehicle and the dealership, but if you’re looking for a sale on your preferred model there are a few things you might want to consider.

Timing

 

In many cases the day of the week and time of year can have an effect on your shopping experience. Midweek is usually better if you’re looking to shop when the sales floor is the least crowded. They may also mean you get more time to talk with a sales associate about your car selection, purchase options and discounts. Shopping late year or very early in January could also lead to some discounts. The dealership may be trying to meet a sales quota before their cutoff date for that year.

 

Trade-in Value

 

Another option is to ask your dealership about trading in your current vehicle. In many cases they can apply the trade-in value directly towards your new used car. This may also save you the time and hassle of selling the old vehicle on your own.

 

Great Sales

 

Many dealerships offer some great sales around holidays. These can be a great time to find deals on the car model you’ve been looking at. It may be a good idea to come before the sale to ask any questions you have about the vehicle you’d like, and then return to make the purchase during the sale event.

 

Remember to consider your timing when selecting from the many used cars available. Certain times of day may give you a better chance to browse without a crowd. You may also want to consider shopping during sale events or asking your dealership about trading in your old vehicle. Remember to ask the dealership staff if you have any questions about a vehicle or its purchase options.

Need an Auto Loan? How to Borrow Wisely

There are always risks involved in borrowing money, especially when it comes to taking out car loans. Still, if you keep some important tips in mind, then borrowing does not have to be a scary and daunting experience.

Know What You Can Afford

It is crucial to know how much you are able and willing to spend on a vehicle before shopping for one, and certainly before applying for financial assistance. How much cash can you afford to front for a down payment? This will affect the principal amount you have to borrow. How much can you afford to pay back each month? This information will help you decide which loan options are best for you.

Do Your Homework

Before deciding on a loan, it’s important to be fully aware of all terms of the agreement. You should know the details like interest rates, the length of the loan, and the need for any collateral. Taking out a loan means a promise to pay it back, so you shouldn’t agree to the financial responsibilities involved unless you believe you’ll be able to follow through on your end of the bargain.

Examine the Loan as a Whole, Not Just Monthly Payments

There is much more to a loan than just a monthly fee, so it’s imperative to look at the larger picture. When taking out a loan, you should be aware of not just what you’ll owe every month, but also the total purchase cost of the loan, and the full payoff amount including interest. This information should help give you an idea whether that particular loan fits your needs and abilities as a borrower.

Understand Your Credit

When applying for a loan, it’s imperative to know your credit score and history, and how it might affect your loan. You might also want to research the minimum credit score required to qualify for certain auto loans you may be eligible to receive.

Ready for that new car? The above suggestions should be helpful as you go about soliciting the car loans you need.

How to Purchase a Car Loan

Purchasing a new or even a used car is an exciting experience. However, trying to get a car loan to help pay for the car can be challenging. You may simply be wondering where to start. Here are several steps that will show you how to go about buying an auto loan.

 

Keep Your Credit Score in Mind

 

Before you even begin to look for car loans, you should find out your credit score if you don’t already know it off the top of your head. This can help the overall process go smoothly. Your credit score is typically the greatest factor in determining what type of rate you are eligible for. It is important to know that a higher score often leads to a lower rate.

 

Compare the Different Options

 

The next step is to compare the lender options you have. They type of loans and rates can vary by dealership, which is why it is vital that you shop around. After you find a dealership that offers the car loan you are looking for, be prepared to provide some detailed personal information.

 

Consider Pre-Approval

 

One reason to consider pre-approval for a loan is that it can give you more power when it comes to negotiating a vehicle’s price. Pre-approval may also help you avoid any last minute surprises from a car dealer.

 

Seal the Deal

 

After you have decided on the type of vehicle you are going to purchase, you will have the chance to do some final negotiations. This is usually where you can try and lower the car price or get a better deal.

 

As you can see, navigating the process of securing a car loan doesn’t have to be a complicated ordeal. By following these simple steps, you will be well on your way to securing a car loan that can help finance your dream car.

Basics of Bad Credit Loans for Car Purchases

Buying a car can be an intimidating process. The majority of buyers will obtain a loan for this large and important purchase. Many believe that bad credit from defaults, collections, foreclosures, bankruptcies, judgements and other reasons will disqualify them from all loans. Having poor credit, while not ideal, does not have to keep you from the new car you need. Having some basic knowledge of bad credit car loans will help you locate the best financing option for your auto purchase.

 

When obtaining any loan, it is important to be realistic about what you can afford. When you have bad credit, the interest rate on any loan offered is going to be higher than if you had good credit. Higher interest rates mean higher payments. Determine a payment amount you are comfortable with and stick to it, even if it means buying less of a car than you want right now. Your bad credit loan can help rebuild your credit score provided you make payments on time. Don’t take on a payment that puts an uncomfortable strain on your budget.

 

There are many lenders who specialize in bad credit loans. Since loan terms will vary from lender to lender, it is helpful to do some advance research. Consider getting preapproved for a loan. A preapproval for a set loan amount will keep you from looking at more car than you can afford. It can also be a good tool in negotiating the car’s sale price.

 

While you may have loan offers from multiple lenders with different terms, try to keep the loan duration as short as possible. It is in your best financial interest to pay off this type of high interest loan as fast as possible.

 

Don’t let bad credit discourage you when vehicle shopping. A little advance planning will help you make the best of your car buying experience. Bad credit car loans are available to help with this important purchase

Car Loans Explained

Most folks aren’t able to buy a car in cash and so they need to take out a loan. When it comes to explaining car loans, it’s important to understand what things can influence customers’ monthly payments. This is because how much someone pays is determined by three main factors: the down payment, the interest rate and the loan term.

 

What do those terms mean? The down payment is the amount a customer pays toward the total cost of a car. The more money someone can put down, the less money they will have to borrow. However, customers don’t always need to have a down payment to walk away with a pair of keys in their hands at the end of the day. A zero down payment means that the principal of the loan covers the full cost of the vehicle.

 

The interest rate is how much someone pays to borrow the money. Making payments on car loans each month means the customer is paying back the interest on the loan along with the overall balance of the loan. The loan term is how long a borrower has to pay back the money. Loan terms can range from as short as one year to six years or more.

 

The interest rate offered to a customer depends on a several factors. One factor is the customer’s credit score. This number is based on things like paying bills on time and using available credit without maxing it out. Another factor is the length of the loan term. The shorter amount of time borrowers select to pay back the loan, the lower interest rate they are typically offered at our dealership.

 

Car loans help customers take cars home. We work to make the buying process effortless, including offering on-site financing. By working with several lenders, we can provide competitive loan rates. This makes buying a car a simple one-stop shopping experience.

Save Money When Obtaining Car Loans

When you have a poor credit history, you can expect to pay a higher interest rate when you purchase a new or used car. However, knowing that you’ll be paying higher interest doesn’t mean that you have to settle for the worst payment/interest combination. Consider the following tactics for saving money when you obtain bad credit car loans.

 

Get the Shortest-Term Loan You Can

 

Shorter loans typically have lower interest rates than longer-term loans. However, you do need to be realistic about the monthly payments you can afford and don’t forget to factor in auto insurance, gasoline, and maintenance. If you must have a long-term loan now, ask about prepayment penalties. You may be able to shorten the length of the loan if circumstances improve over time.

 

Skip the Expensive Features

 

You don’t need a sunroof and you can probably get by without paint protection. All of the little add-ons offered by the salesmen will quickly add up and, when you consider interest, even a smaller addition to the main price will become very expensive in the end.

 

Do Not Take Out Other Loans

 

It is very common for many people to get excited about the idea of the new job that makes the purchase of a car possible. With the promise of extra spending money, those people may head out and open up accounts at shopping centers. Remember that each credit inquiry will affect your credit score and every open account will also damage your score. When you need to buy a vehicle and you’re already working with a loan for people with bad credit, you can’t afford the extra hits to your score.

 

Ultimately, you can benefit from the existence of bad credit loans. Just be sure that you are aware of your options and the steps you must take to save money on those loans. Work to improve your credit score and be prepared to work for the best possible circumstances.

The Power Behind Planning Ahead

If you have had experience with buying a car, you likely know it is a good idea to arrange financing before beginning your search for the perfect vehicle. One of the best places to look for car loans is at the financial institution you already use to do your banking. By prequalifying for a loan, you will have a better idea of what your budget is and the ability to make a responsible decision.

 

Bargaining Power

 

Besides giving you a firm budget, prequalifying for car loans also gives you some bargaining power. As a dealership, we work with several different lending institutions in order to best serve our customers and get them the best rates possible. When you show up on the lot with prearranged financing, it gives our salesman a challenge. Their goal is to see if they can find a deal on a loan that will beat what you have already found.

 

Quite often, our lending institutions are willing to give a slightly lower interest rate on a new loan in order to get a new customer. Your hard work will pay off when you get a lower rate than you thought you could. If our dealership is unable to find you a lower rate, you will know for certain you’ve found the best rate available.

 

Comparing Loans

 

When comparing different loans, whether offered by your lending institution or the dealership, make sure you are comparing all of the features. For example, don’t just compare monthly payments. If one loan is for 24 months and another for 36 months, the second loan may have lower payments, but you will be making payments for an entire year longer. At the end of the loan you will likely pay more for the 36 month loan than the 24 month loan.

 

Spending some time doing a little research before beginning your car shopping can save you a lot of time and money. By being prepared, you can rest assured that you found the best car loans available.

5 Mistakes to Avoid When Applying for a Car Loan

There are auto dealerships in various territories and provinces offering car loans, even if you have less than perfect credit. The loan approval process may seem daunting. There are common pitfalls you can avoid that make obtaining auto financing a lot easier.

 

  1. Not Knowing Your Credit History

 

Your credit history plays an important role in the loan application process. For example, your credit affects the interest rate. Generally, the higher the credit score, the lower interest. Get copies of your report from credit bureaus. Identify and correct inaccurate information. Sometimes making these changes can boost your credit rating.

 

  1. Not Knowing the Total Cost

 

Many car buyers only focus on keeping the monthly car payments low. That’s fine, but there are other factors that determine what you can afford. Always include costs such as taxes, maintenance, gas and insurance.

 

  1. Not Test Driving Cars

 

Take cars for a test drive. Think about how and where you drive on a daily basis. Drive the automobile the same way you normally do. Take your time with this process. Don’t rush back to the dealership. Pay close attention to how the vehicles handles.

 

  1. Not Reading the Fine Print

 

It’s not a good idea to sign a loan agreement without reading the terms and conditions. Make sure you understand everything before signing on the dotted line. As a rule of thumb, shop around for the best auto loan.

 

  1. Not Having the Necessary Paperwork

 

There are several documents you need when you apply for a car loan. The most common requirements are proof of insurance, pay stubs and driver’s license. If you don’t bring the right paperwork to the dealership, it can delay your approval.

 

There are reputable auto dealerships in Canada that finance car loans for consumers who have bad or no credit. By avoiding the above mistakes, you increase your chances of getting the quality vehicle you need.