Tips to Pay Your Used Car Off Faster

When you are checking out used cars, one of the biggest advantages is the cost. These will almost always be less than the same make and model that is new. When you are paying less for a vehicle, you can pay it off faster. However, there are a few tips to make it easier to get the loan paid off so that you can eliminate your monthly payments.

Put More Money Down

Even if you put an extra $500 to $1,000 down, this is less money you have to pay back with interest. This allows you to pay your vehicle off faster and it can also save you money overall. Consider your timeline for paying off the vehicle and do the math to determine the down payment amount that fits into your plans.

Pay More With Every Payment

Add to your payment every month to make each payment larger. You can choose any amount that you can afford during that given month. For example, add an extra $50 to your payment in August and September, but when the holidays come up and money is tight, plan to pay an extra $25. Every dollar counts and works to get the loan satisfied faster.

Make an Extra Payment Every Four Months

This is relatively easy and most people are able to afford this. This cuts off three months of payment per year. If you have a two-year loan, you will pay your vehicle off in 18 months instead of the full 24. Simply divide your monthly payment by four, put this much aside and once four months is up, make the extra payment.

You can use all of these tips together so that your loan is paid off before you know it. Just talk to the dealership and see if they have any rules about paying off a loan before it is set to be complete.

Who You Should Bring Along When Shopping for Used Cars

Shopping for used cars can be a daunting experience. With so many makes and models to choose from and with so many ways to finance your vehicle, going it alone can make you feel less confident than you normally might. To make your experience more pleasant, we have some tips about who you might bring along as you shop and take test drives, as this may help you make a more confident purchasing decision.

Your Spouse

Having your spouse along with you as you shop for a used car might make you feel comfortable in terms of helping you decide what kind of car best suits your needs as a couple or a family. You can also bring them to help you keep track of your paperwork and for moral support as well, especially if this is your first time buying a used car on your own.

Your Mechanic

If you have a good friend who is a mechanic, they can be an invaluable individual to have along when you’re browsing used cars. You can ask them questions about which models have the best track record when it comes to safety and reliability. Taking them on test drives might also help you understand and identify any unfamiliar noises you might hear.

Your Adult Children

Having your adult children accompany you on your used car shopping trips can be extremely helpful, especially if you have not purchased a vehicle in some time and are now a senior. They can help you make decisions about which finance option is best for your budget and assist with filling out paperwork if you find yourself running low on energy. If you are not familiar with today’s technology, your kids can help a dealer explain features such as GPS, Bluetooth capability and more.

Shopping for used cars can sometimes feel overwhelming if you go it alone. Bringing along a spouse or a loved one can help you feel more confident that you are getting the most for your money.

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.