How to Finance a Used Car – Getting it Right

The fact you’re reading this article probably means you want help on how to finance a used car purchase.

It would be nice to say that if you contact the “Free Money On Demand” company, they’ll immediately deliver a truckload of cash to your front door and charge you nothing for it. If only!

In reality you’re probably going to have to think a little about things and avoid rushing in – at least if you’re looking for the best deals possible.

Try to clarify your own financial position.
Before you get any loan from anyone, you will need to be able to explain your overall financial position. They’ll most likely need to know how much you’re earning, the nature of that income and what your monthly outgoings are.
They need this to try and understand how much you can realistically afford to pay back each month and from this they’ll know the maximum amount they could lend. You won’t help your case if to start with potential lenders see that you’re unclear about things as basic as how much you earn each month or how much you’re already paying out on things such as mortgage or rent. It won’t create a picture that you’re in control of your finances!

Deposits = confidence & lower cost.
Many lenders like to see that you are contributing some money to the purchase. The percentages may vary but asking for a big loan when you’ve only got 14.75 pounds to offer as a deposit won’t inspire confidence. There may be some zero deposit deals available but it’s worth remembering that these mean you’re borrowing more and therefore the repayments will be higher. In some cases ‘zero deposit’ interest rates may also be higher.
Keeping your feet on the ground.
Any professional and scrupulous lender will want to see that the value of the asset (car) bears some relationship to the reality of what you are trying to borrow and proposing to pay for it. Many lenders will have a comprehensive knowledge of vehicle values and while you think that 20-year-old rust-bucket is in fact a future antique and a snip at the price – they may not share your optimism.
Thinking about the options for financing.
If you have verifiable regular income and assuming you do not have a catastrophic credit history, you will probably find that there are many lenders around such as banks, building societies, finance companies etc. It may pay to avoid the temptation to take the first one offered just because it means you’ll get the car faster. You may get a much better lower-cost loan by shopping around or getting someone to shop around for you.
Recognising the complexities of car finance deals.
If you’re not completely comfortable with the complexities of interest rates, repayment periods and service charges, or if you have a history of credit problems, then you may want to think about using a specialist car finance service.
That’s because it’s not always easy to tell at a glance what the best offer is for your particular situation. There are specialist car finance websites that do offer a broad-spectrum knowledge of how to finance a used car and you may learn a lot from reading through their services and advice. More importantly, you could also save yourself a lot of money!

Financing a used car will for many be easy. How to finance a used car in the most cost-effective fashion may be more demanding and need a little preparation combined with expert help to find the right deal. Good luck:

100 Percent Financing Bad Credit Car Loans – 5 Tips For Qualifying

When you apply for a car loan, the first thing that most auto loan lenders ask is, “What is your credit score?” The reason for this is simple: they want to know just how likely it is that you are to pay back their loan. In other words, they want to know whether you are creditworthy.

This is a fair question. After all, if you were an auto lender, you would want to be darn sure that the people to whom you are lending money are going to pay it back.

The trouble is, most car loan lenders go about it all the wrong way. They try to take a short cut by only looking at your credit score without really taking a deeper look at your credit report as a whole. This practice of looking solely at the borrower’s credit score works out pretty well for those folks who have excellent credit scores. However, if you have a bad credit score, you are almost always ushered to the back of the credit line – or maybe even out the door.

Fortunately, some auto lenders actually look past your credit score. Sure, they glance at it, but they are more interested in analyzing the report itself, line by line. These lenders are sometimes called bad credit auto lenders. And, they can be a real lifesaver if you have a credit score below 650 or even 600.

If you are looking for 100 percent financing bad credit car loans, here are 5 tips for qualifying for a loan:

1. Learn what it takes to find bad credit car loan lenders:

When you are searching for auto lenders, make sure that you only add to your list those lenders who call themselves “bad credit auto lenders” or “bad credit car loan lenders.” These are the ones who are willing to look at your financial and credit history as a whole, not just your credit score in isolation.

2. Create a list of 5 bad credit auto lenders:

Make sure that your list contains at least 5 such lenders. It’s a numbers game, and you do not want to sell yourself short by only applying to 1-2 of them.

3. Research the website of each lender before adding it to your final candidate list:

Before you start applying for an auto loan online, in person, or on the phone, make sure that you check out the reputation of each lender on your list. Find out, in particular, what other customers are saying about them. Check out online discussion boards and chat rooms, in particular.

4. Apply to more than 3-4 lenders:

Now, be sure to apply to at least 3-4 of these lenders, and push yourself to follow through in doing so. You will thank yourself later when you land a lower interest rate, which could save you hundreds or thousands in interest charges.

5. Remember that it is okay to haggle:

Haggling – or hard negotiating – is a lost art. Most people do not do it anymore because they believe that companies have no room to haggle. This is simply not true! Be sure to haggle with each company that makes you an offer and see if they can offer you even better loan terms, such as a lower interest rate.

Take these 5 tips into account in order to qualify for 100 percent financing bad credit car loans.

Saving You Money on Financing A Used Car

Without having the cash to purchase your used car, you may want to finance one with great rates and terms. Purchasing a new car may be a stretch for some people today. Buying a used car is a smart way to go if you have limited income.

When looking for a used car you will need to take some things into consideration. For example, the older the car is you may encounter some problems with constant repairs that can be very costly.

When looking to finance a used car, figure out what type of vehicle you need, such as a car, SUV,truck or a mini van. Ask yourself how long you will be keeping the car and what will you be using it for. Before signing any loan agreement make sure you understand all the fine print, such as interest rate, early pay-off penalties, etc.

After you decide what type of vehicle you want and you know how long you plan to keep it, you can start looking at the options you have for financing. Don’t just look at one lender do some comparison shopping.

To save the most money, paying for your car outright would be ideal. But lets come down to reality, most people cannot pay cash for a car. While looking for financing, consider putting a down payment on your car. This way you won’t have to finance so much for your car. If you finance your car and the taxes that go along with it will end up costing you more money in interest.

The less you borrow, the less you pay in the end. Shorter loan terms are a good way to save you extra interest charges. Loan terms 72-84 are not a good option to follow. It does not benefit you, just the lender. Longer term loans can cause you trouble as your car depreciates faster than you are paying it off. You will owe more for the car than it is worth.

Do not sign any documents that state you will have a pre-payment penalty if you pay your car off early. It may cost you a lot of money. The reason is that majority of loans are paid off before they mature, and its the lender that makes the profit.

There are options out there when it comes time for you to finance your vehicle. Do some shopping around and find the loan that fits your personal needs.

The Best Car Insurance Rates

If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.

In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.

Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.

Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.

Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.

Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.

In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.