Can You Afford It?

As of this writing, the average American makes about $33,000 per year. Most brand new cars cost well over $12,000. This means that the cost of a brand new automobile makes up a large percentage of the annual income made by most Americans each year. Most people cannot afford to pay $14,000 up front for a brand new car, so many choose to get car loans. When you take into consideration the interest that must be paid, it can take as long as 7 years for the average worker to pay off this loan. At the same time, the car will depreciate in value, and will be worth very little once it is paid off compared to its original value.

Job Security

It is also important to remember that most people don’t keep their jobs for seven years. Many people, especially those that are young adults, may work multiple jobs within a single year. This shows a lack of stability, and it is easy to get into a financial strain if the economy suddenly experiences a downturn and jobs become harder to find. It is for this reason that you should avoid car loans and consider buying used vehicles instead. There are many advantages to buying a used car instead of a new one.

Benefits of Getting Used

Used cars tend to be much cheaper than brand new cars. Because of this they are easier to save money for. They will often be sold by private owners instead of a company, and the owner is likely to be much more flexible. You save money because you are purchasing a car at a wholesale price. Unlike a car loan, you won’t have to pay interest when purchasing a used car. At the same time, there are some disadvantages to buying a used car. Used cars will often have a large number of miles on them, and are much more likely to breakdown faster than new cars. This could leave you having to make costly repairs.

Cant Addon

Used cars don’t have the options that you will get with new cars. The color and other accessories can’t be chosen, and what you see is what you get. While there is little you can do about this, you can have a mechanic check the used car prior to buying it to make sure there are no mechanical problems. If the transmission goes out, it could cost you well over $1000 to get it fixed, and this could put you into a financial strain. You should buy quality used cars from companies which have a reputation for making good vehicles.

Pay the True Value, Not What You Are Told

You should also check the bluebook value on any used car you’re interested in to make sure the price the owner is asking isn’t to high. If the bluebook value on a specific car is $3,000, don’t buy it from an owner who asks for $4000 unless there is a good reason to do so. Car loans should be avoided at all costs unless you have a stable job, a high income, or a large amount of savings.

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Car loans may be secured or unsecured; you can opt for any one of these depending upon your financial capabilities and circumstances. Secured car loan suits those people who possess a property and wish to offer it as collateral. Presence of property minimizes the risk of lender and he is comfortable to offer low interest rate. You get all the benefits in secured car loan such as long period of repayment, small and affordable monthly instalments and flexible terms and conditions. However, the only thing you have to take care of is to make regular monthly instalments to avoid repossession of property in case you fail to repay the amount.

While unsecured car loan does not have any risk of losing your property because it requires no collateral from the borrower. However, you are burdened with heavy monthly charges with short repayment time and heavy interest rate.

However, buying a car is a big time investment hence, before you shop around for your dream vehicle it is for your benefit if you take into consideration your budget and other financial issues. A fierce competition among lenders may help you get the best car loan deal. You can explore the market on the Internet and approach lenders directly online.

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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.

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Are you tired of the hassle of trying to buy a car through a dealer? Haggling with the salesman to get what you think is a great price only to find out from your buddy the great price he paid for his car. Or worse yet seeing the same car advertised at a lower price a day later. Have you ever heard of someone getting a car at an incredible price, or wondered what happens to cars seized by the banks, police agencies or government. Are you curious about what happens to t pre-owned government vehicles?
These cars are sold at auction; some at onsite auctions and some at online car auctions. Buyers can get these cars for thousands less then retail and some starting at bids of $100.00. If saving that kind of money isnt a good enough reason to visit an online car auction then here are six more.

1. Online Car Auctions are Fun

Online car auction can be a lot of fun. First there is the excitement of bidding for that car youve always wanted. Then there is the thrill of getting your dream car at a dream price. You could even practice by guessing what the top bid will be and see how close you come. How much would you have saved?

2. Online Car Auctions Are Convenient

What a better place to shop for a car then in the comfort of your own home. Or if you have a laptop then you could bid anywhere. You could bid at your favorite coffee shop, or at the office (during lunch of course). In addition you can be researching your car, the seller, loans, insurance, or surfing your favorite sites while waiting for your winning bid to come through.

3. Online Car Auctions Save Time and Effort

Driving from dealership to dealership, or from private owner to private owner can waste a lot of your precious time and play havoc with your nerves. What if your schedule just doesnt give you the time to run around? At todays gas prices who wants to do all that driving. With online car auctions you set your own schedule for research and can bid at home or during coffee break or lunch.

4. Online Car Auctions Make Paperwork Easy

Many online car auction sites provide services to make your buying experience as simple as possible. They have automated forms to allow the processing of your sale to happen as quickly and easily as possible. They provide courses on proper bidding procedures. Online car auction sites provide access to companies that help you with finances and insurance. For your sense of peace many sites offer the ability to check the V.I.N number of the car you wish to purchase. There is a lot of competition out there so they do what they can to provide that great customer service experience.

5. Online Car Auctions Are Where You Get Your Car At A Bargain Price

Online car auctions are one of the best places to get a great car at a bargain price. Thousands of cars, trucks, motorcycles and SUVs end up in auctions. Many of these vehicles are in prime condition; being either repossessed by banks or law enforcement agencies, or pre-owned government vehicles. Many sites boast cars sold for savings as high as 90% of retail. While this is possible most vehicles go for around wholesale or blue book value. Still a sizeable savings over anything you can get from a dealership.

6. Online Car Auctions Help You Stay On Budget

A major problem faced buy most buyers is letting your emotions influence your buying decision. Something the average car dealer knows how to exploit. Online car auction sites protect you from the heat of bidding by allowing you to place a maximum bid level before starting the auction. This way you can only bid as much as you common sense will allow. That is as long as you dont let your emotion decide the maximum bid to begin with.

7. Online Car Auctions Offer Great Choice

There is thousands of seized and pre-owned cars at auction. You can find almost any make or model of vehicle at online car auctions. Even if the car is unavailable in your area it may be available in the near future or in a city close to you. Depending on the site they may offer access to vehicles in your immediate area or across the country. There are free online auction sites and sites where you purchase a membership for a small one-time fee. These sites offer instant access to large databases of online and conventional auctions across the United States.

8. Online Car Auction Sites Provide Peace of Mind

Its very important to online car auction sites to maintain a good reputation. To this end many sites provide services such as vehicle history reports for a small fee, or programs to protect buyers from fraud or misrepresentation. You may even be able to check out the sellers rating if they have sold on that site before. There are also resources on how to purchase a car online and how to bid to your advantage.

Give Online Car Auctions a Try… Kust Remember

Information is your friend. Like any major purchase you should do your homework on the vehicle you plan to purchase. Once that homework is done familiarize yourself with the policies and guarantees offered by the online car auction site. Find out what you can about the vehicle and the seller. Look into insurance and financing options. Prepare well and you should have a very enjoyable experience and own the car of your dreams for thousands less than the guy next door.

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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.

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