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By: James Peeler

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Sunday, 16-Jan-2011 12:33 Email | Share | | Bookmark
Fundamentals of Auto Financing Online

Internet has created a paradigm shift in loan markets across the world. Faster approval, hassle free processing and quicker disbursal have made loan raising through online mode a preferred option for millions of borrowers. Car financing online industry is no more exception to this ongoing trend. All the major institutions and lenders engaging in auto financing are now offering online finance plans. This article deals with fundamentals of auto financing, its advantages and how one can avail these opportunities easily

What is auto financing online?

Honestly, auto financing online follows the same spirit of other onsite auto loans. The difference is that the borrower applies here online and the processing takes place through internet. Like general loans plans it also require the borrower to have the repayment capacity and should posses good credit scores. All the borrower has to do is filling the online loan application form available on lender’s website. The loan quote is free from any obligation. You can fill the form with in 10 minutes. Then you need to submit documents related to your repayment capacity, credit score, age, identity and the amount of loan you want to borrow. Once the formalities are over representative of the lender gets back you and the processing is carried on. After the loan is approved the loan amount is deposited in your bank account.

What are the advantages of auto financing online?

It is the fastest and most convenient method of raising loans to buy a vehicle. As every thing is done online you do not need to go to lender’s office time and again. Hence you save a good amount of money. As it removes paperwork from processing the process becomes much faster. You can apply for the auto financing online 24X7 from the comfort of home or office. Hence, no need to bunk office or postpone your urgent work for loan application. The most important benefit of easy auto financing online is the opportunity of comparison. The rate of interest and other terms vary from lender to lender. With few clicks on computer you can access scores of auto finance loan quotes. After a thorough comparison, you can easily go the lender that offers at a competitive rate and offers other borrower friendly advantages.

How to avail auto financing online?

For this all you need is a computer with internet connection. Then search for the lenders specializing with auto financing. Before applying them, make an estimate of the amount you can bear as down payment and your current credit status. If you suffer from adverse credit score make sure that you are approaching bad credit auto loans lender. For faster approval, get the required documents ready while you fill the loan application form. While filling the loan quote make sure to read the terms and conditions carefully. If a lender imposes processing fees or any hidden cost do not opt for him. Behave wisely and get the best out of auto financing online.

Sunday, 16-Jan-2011 12:32 Email | Share | | Bookmark
Few Tips for Buying a Vehicle with Bad Credit

Approving a car loan considers a number of factors. They are repayment capacity, credibility and source of income of the loan applicant. Loans are for no charity. For lenders it is their business. Hence, they need to be assured that you have a regular source of income and able to payback the money with the mutually agreed period. This is not enough. Before approving you vehicle or any loan that involves higher amount of money, lenders check your credibility. It means they check your past behavior related credits. Late payments, arrears, defaults, filing bankruptcy are treated as vulnerable credit behavior. People having such adverse tags with their credit behavior are refereed as bad credit borrowers. Lenders generally used to hesitate while they were approving loans to bad credit borrowers.

However, there is a turn in this situation with the advent of global slowdown. The economic recession has made bad credit a rule than exception. Instability in financial market, job loss and global recessionary wave has created millions of bad credit borrowers. Hence, they are no more treated as untouchable by the lenders. Bad credit borrowers are now allowed to take vehicle loans by paying a little extra rate of interest. In this article we will talk about the process of approval related to bad credit car loans and how you can get these loans faster. The tips for availing hassle free bad credit vehicle loans are:

Assess your credit score

The first step while taking loans for vehicles is having a clear idea regarding your current credit status. You can get it from your credit score. It is provided by credit bureaus without any cost. Here you will find all the minute details regarding your credit past. Once you access it and come to know that your credit score is below par never approach a lender who deals with good credit borrowers. It will lead to rejection of your approval. Search for the bad credit auto lenders and apply for them.

Estimate your budget and loans amount

After analyzing your credit status the next step is estimating your budget. You should keep in mind that no auto loan financing company offers 100% finance. You have to bear a part of it. Hence prepare a budget regarding the amount of money you have and the amount you need as finance. As bad credit vehicle loans come with a higher rate of interest, it is advisable go for a higher down payment and lower loan amount.

Compare loan quotes of multiple lenders

Rate of interest on bad credit vehicle loans vary from lender to lender. Hence to get a fair deal you need to compare loan quotes of multiple auto lenders. These quotes are free of cost and you can access handfuls of them through few clicks on computer. While choosing a lender make sure that he has no hidden charges like processing fee and early payment penalty.

Repay on time

Repaying bad credit auto loans on time helps in improving your credit score. Once the dark patches of adverse credit rating are cleared you can raise loans at competitive rate.

Thursday, 23-Dec-2010 12:00 Email | Share | | Bookmark
Pros & Cons of Getting a Blank Check Auto Loan

Blank check auto loans can help the potential car buyers in great ways. It offers enormous amount of time in selecting the right kind of vehicle according to their requirements. It is rather easy to obtain blank check auto loans when compared with traditional loans. The borrower need not step out of his home to obtain this kind of loan. The borrowers can get pre qualified for a specific amount of money with which they approach various dealers. They look for cars which will fit their budget and drive home back happily. This will save enormous amount of time for the buyers and they can concentrate on learning about the features of the make and model. The loan terms are very flexible and are offered to people from all walks of life.

Let's have a look at the pros of getting blank check auto loans.

Ignore the lenders: Having pre-approved with blank check car financing, the borrowers can bypass the dealers without worrying about financing. The borrowers have the desired amount in hand and can straight away ask for discounts or rebates which will save them huge amount of money. The complete process of buying the car becomes hassle free with blank check auto loans. The borrowers will not be scammed by faulty credit scores and other procedures.

Reliable lenders: Most of the traditional lending institutions have started offering blank check auto loans considering the rise in demand for such types of loans. Established banks and private lenders are adding themselves to the list of lenders offering blank check auto loans. It gives enormous trust to the borrowers and makes them free from worries of extra interest rates.

Know your limit: A blank check car loan will fix up the budget and borrowers can search for models that will fit in this budget level. It saves them huge amount of money in the long run. It is a wrong concept to buy a vehicle based on the monthly payments.

Any kind of auto loans might have its own pros and cons. I think it's high time to discuss some of the disadvantages in getting blank check auto loans.

Higher interest rates: Lenders try to grab the attention of lower income groups and people with bad credit rate to offer these kinds of loan. They charge higher interest rates for people having less than stellar credit rate.

More paper works: The borrower has to complete the procedure in getting pre approved auto financing. After this, the borrower has to choose the desired car and has to run back to the lender to sign in more number of forms to complete the procedure. It becomes an additional burden for the customers.

It is up to the borrowers to analyze these pros and cons and obtain the loan. The loan should be obtained purely depending on the individual requirements after a thorough financial assessment.

Thursday, 23-Dec-2010 10:27 Email | Share | | Bookmark
When To Refinance Your Car Loan?

Do you have a car loan?
Do you want to save money?
Do you want to lower your monthly payments?

Refinancing your existing car loan can be a wise option to save money in the long run. It is highly recommended to trade in high interest rates loan to low interest car loan when you have a better credit rating. This will also help you to lower your monthly payments and relieve you from the financial clutches. I have tried to shed some light on refinancing automobile loans and the facts that will help you to make informed decisions.

Trade in high interest rates: Refinancing car loans become sensible when the interest rates drop. Another factor is the tenure of car loans that will help you to make a decision. If you still have only a year to complete the loan term, it is not sensible to opt for refinancing. Since you have paid most of the loan amount, you cannot save more money in this process.

Interest rates can be reduced to certain extent by refinancing it for a shorter term. If you can reduce the loan tenure by 2 years, it can save you thousands of dollars on interest rates by still having the same rate of interest. For example, if you have taken a loan for a car that values $10,000 presently at 8.9% interest rate, you will end up paying $2500 as interest amount over a period of 5 years. However, if you can reduce the interest rate to 6.9%, you can save up to $575 over the lifetime of loan. This amount can be diverted to other funds which will be very useful on several occasions.

Better credit rate and better rates: If you have repaid your existing car loan promptly, your credit rating should have improved drastically which gives better credibility. This allows you to qualify for better rates even if the interest rates have not dropped in general market. You can also improve your credit rating by reducing the debt ratio apart from paying the loan amount promptly.

Lower repayment and longer term: Reducing the interest rates is not the only option to be considered to refinance the car loan. You can reduce the monthly repayment amount by rolling over the term to extended period. However, it is important to remember that you will end up paying more when you opt for this. This option should be considered when you feel like you cannot afford to pay exorbitant monthly payments and want to get relieved. This could certainly save some bucks which can be used to pay off other bills.

The timing of automobile refinancing is an important factor. Do not refinance at a wrong time which will not allow you to enjoy the benefits. It is important to take your time and analyze the situations after which the decision should be made.

Saturday, 30-Oct-2010 05:27 Email | Share | | Bookmark
No Credit Car Loans - Tips for Financing Your Car with Zero Cred

Thinking as how to get better interest rates than what is being offered to you especially when you have no credit score to bail you out? Getting a car loan with no credit is not an impossible work, but a tedious task to undertake. You have a disadvantage on which you have to work to make it your strength by some means.

One of the initial steps will be to find as many lenders as possible. And I am not talking of financial institutions or banks because most of them will not like to deal with you. The reason is simple - you have no credit rating. Not having credit rating is not a crime, it just increases the risk. So the traditional financial institutions are afraid to take that risk as it involves an uncertainty of default on loan. Hence we are aiming at those institutions, banks, credit unions, lenders and dealers who are offering the no credit vehicle loan services.

These lenders are willing to take the risk and so they expect a reward. They will offer no credit auto loan at a higher rate of interest than the usual loans. Are you hesitant about the no credit automobile loan after seeing the rates? Do not be alarmed because you have to keep in mind that they are practically taking the risk to finance regardless of your credit history. When you come across such high rates, do not get upset. Instead use your negotiation skills. You can actually bring down the higher rates of the interest offered by the lender by showing your positive points such as your income or paying down payment.

In no credit auto loans, collateral plays an important role. In car financing, the car is part of your collateral. The lenders who are offering no credit auto loan may ask you to put down additional collateral and sometimes ask for a co-signer. The additional collateral should be such that it covers the value of the loan and its interest. They trend to ask for additional collateral comes from the conception that the value of the car depreciate with time. The collateral can be anything from a house, land or another vehicle you may have.

However, it might be that you do not possess collateral. Even then you can avail no credit vehicle loan if you are employed and have regular source of income. Your employment history, amount of income, investments made, etc will come into forefront. Lenders may actually go through the process of checking this information to satisfy them. Your annual salary for the previous year will be looked into because your annual income will be one of the deciding factors. You will have to keep your patience and go through all the paper work if you want to secure no credit car loans.

Once your paper work is over and the no credit auto loan gets approved, visit the dealer of your choice to get that dream car of yours.

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