Car loans are more common than ever. Most people are learning that they can get into the car that they want much easier and much more quickly if they have a loan than if they wait until they have saved enough. The fact of the matter is that cars are expensive, even those that are not all that fancy. If you want a car that will last and will get you from point A to point B safely you’ll need to invest in it. And a simple way to do this is with a car loan.
Applying For a Car Loan
Applying for your first car loan is a little bit unnerving because you aren’t quite sure what you are getting into. The process is actually quite simple and depending on your credit, your lender, and your car dealership you could be driving home in your new set of wheels the same day as you fill out an application! Sound too good to be true? The whole point of car loans is that they make it simple for people to get a new car without actually having the cash on hand.
When you apply for a car loan you will first need to know what sort of car you would like to buy. Most lenders need to know the make and model of the car that you are looking at so they can verify that it is a car worthy of their financial support. In addition to providing the lender with this information you will need to supply your personal information such as your full name, your mailing address, your financial information, your date of birth, and your social security or tax payer identification number. When the lender has all of this information they run a credit check. They look to see how responsible you have been with credit in the past.
If you have had credit challenges in the past, there is no need to worry. There are many lenders out there who deal with those that have less than perfect credit. Regardless of your credit, you will usually hear back from the lender within an hour or so and they will let you know how much they are willing to finance, how much of a down payment you need if any, and what the terms of your loan are. The terms refer to how long you have to pay off the loan and what your interest rate is. Once you sign the paperwork and verify that you have automobile insurance you are free to drive your vehicle home.
With a car loan you will generally need to make one monthly payment. This not only pays on the amount that you have had to borrow to buy the car, but also the interest on the loan. While the idea of paying on a car loan is not something that people look forward to, it is a lot easier to come up with the money for a monthly payment than it is to save up for the car! Car loans really do make it simple for the average consumer to get that new car.
Tags: Buying Car, Car Buying, Car Dealership, Car Loan, Car Loans, Cars, Credit Challenges, Credit Check, Date Of Birth, Fact Of The Matter, Financial Information, First Car, Lenders, Little Bit, Model Car, New Car, People, Set Of Wheels, Social Security, Tax Payer Identification NumberRelated posts
Car buying is not a task to be taken lightly. The cost of a new car equals almost what my parents paid for their first home. It’s imperative to do behind the scenes research to ensure you get a great deal.
Do not be in a hurry. Car dealers can detect the scent of desperation a mile away! If you are totally without transportation, rent a vehicle until you find the right car. If you rush your purchase, you will usually end up on the bad end of the deal.
You can uncover the typical retail cost of a specific make and model right on the internet. With a little extra research, you can discover the wholesale cost as well. These two pieces of information give you an edge when it comes to negotiation.
It’s best to work toward a win-win situation with the car salesperson. They need to make some money on the deal, and you want to pay a fair price. You can often negotiate a price that is $500 above dealer cost, or about 20% off the sticker price. Make sure you take your calculator with you when car hunting.
You can often order a car with *custom* option choices. This could save you hundreds of dollars. You might wait a couple of weeks, but why pay for options that you do not need?
Always check with the dealership to see if you can return the car if you do not like it. Many dealerships now offer this option. Some dealerships will give you a three day trial period in which to try the car.
It is a good idea to wait until the end of the month to go car hunting. Salespersons who want to meet a certain quota will be eager to strike a deal.
Knowing the value of your old car makes it easier to negotiate a better price for it. Try not to talk about a trade-in possibility until you get a purchase price. Sometimes this is difficult, as most salespeople will ask upfront about a trade in.
I took my car to one lot, and was told the trade in value was $1,200. Another dealership said they would give me $3,500 for the same car! So do your research to make sure you receive a fair price on your used vehicle. Stick to your guns when it comes to getting the value of your trade-in, especially if you’ve had your car serviced regularly.
A service contract will likely be brought into the negotiation. Most consumer information shows no need to buy an extra contract on a new car, as it’s not likely a problem will occur during the first months of use.
Whatever you do, always read the fine print of any contract before signing it. Ask questions about what certain phrases mean if and when you do not understand something.
Also, just because a car is brand new doesn’t mean you should buy it without asking questions. New cars can land in the lemon category as well as used ones. Keep on your toes during the negotiation process. You will enjoy both getting a new car, AND creating a win-win situation for yourself and the dealer.
Tags: Car Buying, Car Car, Car Dealers, Car Salesperson, Custom Option, Desperation, Extra Research, How To Buy A New Car, Hunting, Hurry, Model Right, Negotiation, Option Choices, Quota, Right Car, Salespeople, Salespersons, Sticker Price, Trial Period, Two PiecesRelated posts
While it is possible to get a great deal and a bargain car at an auction, buying a used car this way isnt always the ideal way to buy a car, there are better ways.
If it is your first time of buying a used car or you know very little about cars, then buying from an auction isnt advisable. Perhaps the biggest problem with purchasing a car from an auction is the fact that that you have very little cover to fall back on if there should be any problem with the car. This is usually due to the auction house issuing a disclaimer, which many do, which states something such as sold as seen.
While many goods are covered by the Sale of Goods Act, some of the cleverer auction houses can get around this by altering the conditions of the sale by taking away the buyers rights under the Act.
If you do wish to purchase a car from an auction then it is advisable to visit an auction house several times before actually deciding to bid on a car. This way you can get used to the terminology used and the way auction houses work. It is also advisable to take someone with you who knows something about cars when you do decide to buy.
Most auction houses will hold preview days where you look at the car up for auction prior to bidding. This will give you a good chance to have a look at the vehicle.
You would be wise to consider having a vehicle data check done, which is a service that checks a vehicles history. It will show up really valuable things such as whether the car has been stolen, or the mileage tampered with etc.
Finally, it is essential that you know your spending limit. Dont ever be tempted to go over that limit no matter how good a deal something may seem.
Tags: Auction Bidding, Auction Car, Auction House, Auction Houses, Bargain, Bid, Buy A Car, Buying A Used Car, Car Auction, Car Buying, Cars, Checks, Good Chance, Ideal, Mileage, Preview Days, Purchasing A Car, Second Hand Car, Several Times, TamperedRelated posts
Should I Buy From A Used Car Dealer Or Privately?
Buying a used car from a dealer or buying it privately, which is the best?
Both have their pros and cons and these should be weighed up against the other before any decision is made.
Firstly, going with a dealer you will have a wider choice over the cars on offer, certainly more than you would by going privately.
When buying from a dealer the car will have been cleaned and any faults will have been corrected and it will come with some sort of warranty. When purchasing privately you will be liable to fix any corrections and have to valet the vehicle yourself, plus you will have no comeback if something serious goes wrong within the first year.
Going with a dealer gives you plenty of time to check the car over in perfect lighting conditions; however you might feel rushed or pressured when looking a car over privately.
A dealer usually wont mind at all if you wish to bring in your own expert to look over the car as they will have nothing to hide. However when going privately it could be harder for you to get an expert to look over the car with you.
Dealers also can offer finance often with high interest charges but this still gives you the option of finance which may be beneficial to you. With a private seller, you will need to pay the money in full.
The downside to buying from a car dealer is that the car could cost you more than by buying privately. Also, you wont be able to interrogate the owner of the car through a dealer however when buying privately you have the opportunity to do so.
It really is all a matter of which you prefer as there are good and bad points either way, but the above tips will hopefully give you a better idea of which way to go when looking for your used car.
Tags: Buy Car, Buying A Used Car, Buying Car, Car Buy, Car Buying, Car Dealer, Car Dealers, Cars, Downside, Faults, Finance, High Interest, Interest Charges, Lighting Conditions, Money, Private Seller, Pros And Cons, Purchasing, Valet, WarrantyRelated posts
Buying a vehicle can be quite an ordeal. You have to find the money in your budget for the new vehicle. Often you have to decide whether you want to sell your existing vehicle outright or trade it in. Then that decision is based on if you buy through a dealer or private party. You have to decide what you like.
Should you buy new or used?
Financial advisors say that the best way to get your money’s worth is to go used. However, the decision isn’t quite so simple. There are a lot of considerations.
Start by looking at your finances. If your only option is buying used, then do it wisely. But if you are choosing a used over a new, you have to remember that there will be no warranty of the vehicle in most cases. If the car needs a lot of maintenance, repairs or other modifications, you could find that your savings by purchasing used aren’t there.
Buying a used car is a gamble sometimes. You have to make sure that the title is clean. There should be proper documentation with the vehicle. Don’t trust anyone who says they will mail it to you. Never pay for a vehicle without a title, you could be in deep trouble later.
If you test drive the car and aren’t sold on it, you should keep looking. If you aren’t comfortable with the car, used or new, after driving it, it wouldn’t be a good deal for you. Don’t just buy the only car in your price range. Keep looking for one that will fit your budget and your needs.
When you buy used, you should take the car to a mechanic and have it checked out. This doesn’t guarantee that there won’t be any problems, it just helps you from buying a junk car. You might also consider doing a online check on the vehicle. You simply need the VIN and around $10. You should get a history of the vehicle. For example, we checked a vehicle out and found out that it was in the gulf when the hurricanes hit. It didn’t say it was damaged, but warned of the potential.
Even if you aren’t choosing to buy used — you have to — you should take the time to consider the purchase just as you would a new car purchase. Test drive several vehicles and shop around. Buy car trader and truck trader magazines and search online to see what other vehicles are bringing. If you are looking at purchasing a car from a dealer that is $5,000 cheaper than you have ever seen one priced for, you should probably be a little curious as to why it is so cheap. Make sure you know what the blue book value is and understand the process of buying.
When you buy a vehicle, you are spending money that you probably will never get back in your pocket. Do it wisely.
Tags: Budget, Buy Car, Buying A Used Car, Car Buying, Car Lot, Car Maintenance, Car Mechanic, Car Price, Deep Trouble, Financial Advisors, Hurricanes, Junk Car, Mail, Maintenance Repairs, Ordeal, Private Party, Proper Documentation, Purchasing, Vin, WarrantyRelated posts
Tips For Buying A Used Car At A Used Car Auction
Are you interested in buying a used car from an auto auction or a used car auction? If you are, have you ever done so before? Unfortunately, when it comes to buying a used car from a used car auto auction, there are many first time bidders who end up making costly mistakes. To prevent yourself from being one of those used car auction bidders, you will want to continue reading on, as a few helpful used car auction tips are touched on below.
Perhaps, one of the most important things that you need to remember, when it comes to buying a used car from a used car auction, is that not all used car auctions are the same. Auto auctions come in a number of different formats. For instance, there are auctions where only used cars are sold and then there are others auctions where a large number of products, including used cars, are being sold. To have a larger selection of used cars to choose from, you may want to focus solely on auctions that specialize in the auctioning of used vehicles.
In keeping with the type of used car auction that you wish to attend, it is also important that you examine whether or not you are even able to attend. If you are just one lone individual who is looking to buy a personal car for yourself, you will want to try to find a public used car auction. Public used car auctions are auctions where anyone is able to walk in and place a bid on a used car. It is important that you know what type of used car auction you plan on attending, as there are auto auctions that require proof of a dealership license.
In addition to the type of used car auction that you wish to attend, it is also important that you examine how the auction is operated. For instance, are you required to arrive at the auction and bid on a vehicle that you have never previously seen or had the opportunity to examine? While a large number of auto auctions work this way, you may only want to attend auctions that give you the opportunity to inspect their used cars. This inspection session, if it is available, is often scheduled in the days leading up the used car auction. In addition, you may want to see if the auction house or company in question has an online website. If they do, you may be able to find information, including pictures and detailed descriptions, of some of the cars that at the auction.
It is also important that you examine methods of payment accepted before you start bidding on a used car at a used car auto auction. Unfortunately, many first time bidders mistakenly believe that all auto auctions accept the same methods of payment. This is a mistake can be troublesome and result in a large hassle. That is why it is important that you examine the methods of payment accepted. In most cases, you will find that cash, credit cards, or certified checks are accepted. In some rare cases, you may be able to find a used car auction house or company that offers financing or one that accepts personal checks.
Before bidding on a used car at a used car auction, it may be a good idea for you to speak to an auction representative. Depending on the auction house or company in question, you may even be able to do so before attending an auto auction. When speaking to a company representative, you will want to inquire about the documentation that you will receive when you bid on and buy a used car. After buying a used car, you will need to register it with your local Department of Motor Vehicles (DMV). To register a vehicle with the DMV, you need to have proof of ownership. Most well-known and reliable used car auction houses or companies will automatically provided you with the required documentation, but it may still be a good idea to get verification ahead of time.
Since the used car auction that you choose to attend will have a significant impact on the success that you see, when buying a used car, it is important that you choose your auto auctions carefully. If you are a Chicago resident, a resident of a surrounding area, or would be willing to travel there, you may want to examine North Shore Auto Auction.
Tags: Auction Bidders, Auction Car, Auction Tips, Auto Auction, Auto Auctions, Bid, Buying A Used Car, Car Auction, Car Auctions, Car Auto, Car Buying, Car Tips, Cars, Costly Mistakes, Important Things, Personal Car, Proof, Public Auction, Public Auctions, Tips For Buying A Used CarRelated posts
Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.
Lets take a look at some tips, pros, and cons when it comes to making this decision.
First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, youll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars wont have all of those superfluous dealer add-ons stuck on the window either that will just never do.
In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades youd like to have on the used car that you couldnt otherwise afford going with the new.
Yet, with all of this, buying a used car isnt for everyone. Finding a used vehicle that fits ones entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.
Not so many years ago, reliability was a major concern when purchasing a used car and rightfully so. Today however, reliability problems are a fraction of what they used to be. Todays vehicles, when properly maintained will easily go for 100,000 miles and its not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.
Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.
As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty youll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that arent covered by any manufacturers warranty anyway; items such as brakes, tires, alignment, batteries, etc.
Of course nobody can guarantee that you wont encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.
When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle youll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car youre looking at. Be sure to crunch the numbers for both sides.
With used cars, insurance can save you some money as well because youll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.
And finally, (the latest) safety features could be a concern if youre looking at used car (particularly if youre going back a few model years).
All in all, if the touch, feel, and smell of a new car, isnt a top priority for you, I think youll find that a well thought out used car purchase you can get more car and features and still be within your budget.
Tags: Automotive Market, Better Chance, Buying A Second Hand Car, Buying A Used Car, Car Buying, Cars, Depreciation, Exercise, Fraction, Initial Price, New Car, Perspective, Price Tag, Pros And Cons, Purchasing A Used Car, Reliability Problems, Risk Factor, Second Hand Car, Standpoint, Todays VehiclesRelated posts
Home equity loans are a great way to borrow, and although many homeowners use them for home improvement projects, they can also be used for other purchases, like car buying. Equity grows as the value of your property rises, and many consumers take advantage of the gains in the real estate market without having to actually sell their house, by using convenient home equity loans.
Whereas a home equity line of credit operates much like a credit card, an equity loan is more like a typical bank or credit union loan the kind of loan consumers prefer when looking for a longer repayment schedule and more competitive rates. If you want to borrow a set amount of money with a fixed interest rate over a period of a few years, the home equity option is an appropriate choice. For example, rather than borrow money from a car dealership at a high rate of interest and with relatively unfavorable terms you might be better off borrowing against the equity in your home. The savings over the life of the loan (thanks to a lower interest rate and some potential tax deductions) can be considerable. And as your property continues to increase in market value, the otherwise untapped equity will work for you, to help make needed purchases along the way.
Consider, for instance, a homeowner who bought a house for $200,000 a few years ago and now realizes that the same property is worth $260,000. If the home appreciates in value at a rate of just 6 percent per year for the next three years, it will be worth over $300,000. With an increase in value of more than $40,000, the built-in equity is more than enough to offset the expense of a new vehicle in three years time.
Rather than sell the house to gain access to those funds, however, the homeowner can simply use an equity loan that is paid back at a fixed interest rate over a period of years. Once the loan is repaid, the homeowners untapped credit is once again available for other purposes. And at tax time, the interest paid on a home equity loan may qualify for an itemized deduction.
Consult a tax planner and your mortgage company or bank before you begin shopping for your next automobile. With a convenient home equity loan, you may be able to drive away with a great deal without ever having to put a dent in your savings account.
Tags: Amount Of Money, Borrow Money, Car Buying, Car Dealership, Car Loans, Consumers, Equity Line Of Credit, Equity Loan, Fixed Interest, Home Equity Line, Home Equity Line Of Credit, Home Equity Loans, Home Improvement Projects, Interest Rate, Rate Of Interest, Repayment Schedule, Tax Deductions, Tax Time, Typical Bank, Unfavorable TermsRelated posts
Looking for the cheapest car through buying used cars is a smart practice. However, when the buyer is truly saving and is on a tight budget, buying a used car should not be immediately decided upon and should take a lot of deliberation. This is to avoid throwing away your hard-earned money.
Therefore, for people who already know something about buying used cars but wish to know when not to buy them, here are some pointers that may help people in their decision-making:
1. Buyers should be wary of buying used cars from owners that do not have complete and pertinent documents.
This could mean a lot of negative things and the buyer is the only one who will be at the losing end. Documents are crucial especially if the car is second hand. It is the only solid guarantee that a buyer can get hold of when buying used cars.
If this is the case, then, the buyer might as well not pursue the deal.
2. Buyers should consider their budget
If the reason why the buyer is opting to purchase a used car is the budget, then it should be the same reason why the buyer should be careful and meticulous in choosing a used car.
Hence, if the car needs a lot of maintenance, repairs, and other modifications, it is best not to buy that used car.
3. If the buyer is not comfortable after test-driving the car, then, it is best not to buy it.
There are instances wherein some people tend to opt for used cars because of the model of the car being sold. It is their dream car and there is no other way they can purchase them but to buy them second hand.
However, if the buyer was not comfortable with the car after test-driving it, then, it would be better not to pursue the deal, even if it means the world to the buyer to have that car.
The bottom line is that buying used cars should never be the sole alternative to people who cannot afford to buy new ones. This means that people should value the process of choosing a used car like what they would do when they buy a new car.
After all, it is their money that will be put to risk that is why it is extremely important to consider all the factors in order to have the best buy ever.
Tags: Bottom Line, Budget Car, Buy Car, Buying A Used Car, Buying Cars, Buying Used Car, Buying Used Cars, Car Buying, Car Maintenance, Deliberation, Dream Car, Guarantee, Hard Earned Money, Instances, Maintenance Repairs, New Car, Pertinent Documents, Pointers, Smart Practice, Tight Budget