Car loans can be difficult to acquire even under the best of circumstances. For those suffering from past financial hardships, such as filing for bankruptcy, finding the right loan for your needs can prove even more challenging. Many lenders are hesitant to offer loans to those struggling, even in cases where bankruptcy proceedings were all but unavoidable. In this event, after bankruptcy car loans can be a great way to re-establish good financial standing while also obtaining a reliable vehicle to get you to and from work.
While these circumstances can make securing the right loan a bit more challenging, there are steps one can take to ensure they’re afforded the best deal for their money. When seeking a loan, the right lender can make all the difference. Many post-bankruptcy car loans include higher-than-average interest to mitigate the risk associated with poor financial histories. This can result in paying for more for your car than the actual price, which will only add to further financial turmoil. However, a suitable lender can afford you the funding you need to procure a vehicle without incurring ultra-high interest rates in the process. In order to find a loan with reasonable terms, a bit of research can go a long way.
The internet can be a great place to start thanks to the abundance of resources related to finding an appropriate car loan for your existing financial outlook. You may also want to consider working with an auto loan broker, who will have the experience necessary to work with people of varying economic statuses. Rebuilding your credit history is an integral part of remedying prior financial missteps, as well as keeping you on the right track in the future.
Additionally, procuring a vehicle can be crucial for finding a lucrative and rewarding job to get you there. With the right loan, you can easily bounce back from a number of financial woes, thereby increasing your ability to plan the sort of future you deserve.
When you are looking to purchase a used car, but worry that you do not have enough money to pay in full right away, it can seem like your dreams of car ownership have stalled out. What you might not have considered is what options you have with used car financing. In order to know what to expect with financing, there are several points that you should keep in mind.
Your credit history will play a huge role in your financing experience. Before you begin to pursue financing as an option, it is a very good idea to know your own credit score. There are many ways that you can go about looking this up, ranging from various resources on the internet to your own bank. Take your time to learn your score so you are prepared for everything else that is to come during the process.
If you look up your score and discover that your credit score is less than ideal, it does not necessarily mean that you will not qualify for financing options. In fact, a great deal of dealerships and lenders have options that are designed specifically for used car financing. Don’t worry about a bad credit score, just be prepared for how that score can change what you will expect to pay over the course of financing.
Put it Down
Finally, take into consideration how much cash you have for a down payment. It is recommended that you put down at least 20% of the total cost right away. When you do this, you are giving yourself the room to make more manageable payments down the line. While this percentage might not always be possible, it is still wise to put down as much as you can in order to budget properly for your future payments. When you take the time to learn your credit history and budget accordingly, you will be hitting the road with your new vehicle in no time at all.
When you start shopping for used cars, it quickly becomes apparent that you have plenty of options. With makes and models from every year imaginable, it’s easy to get overwhelmed and go with the first car within your price range. Instead of caving too early and not getting the best deal, you should learn more about how to shop for a preowned vehicle that will actually work for you.
Short or Long Term
Is this a transitional car or something you hope to drive into the ground? If you need this car as a short-term replacement, sticker price and fuel efficiency are probably your biggest concerns. Think about how long you’ll actually have to use the vehicle, and then assess which features you can live without. If this is the car you’ll be driving for the foreseeable future, the amount you pay upfront should matter less than how long the car is expected to last. A little extra money at the outset is well worth it if you get another five years out of the vehicle.
Exterior or Interior Issues
Both the inside and the outside of the car are important, but you need to focus on what is actually selling you on (or turning you off of) certain used cars. If you can get a good vehicle at a good price and the only thing giving you pause is the color, is that an issue you can overcome? Remember that cars can be repainted, and perhaps you can make it a goal to save up for a color change. Similarly, is a cosmetic issue with the interior enough to make you look past a good deal?
When you really look at the used cars in your area and try to think about how you’ll feel once the novelty has worn off, it becomes easier to identify your real needs. Make sure you put in this effort when you start shopping around
A car can symbolize your independence. Public transportation can be limiting and most people don’t want to have to wait on friends or family members to drive them around. There are a lot of restraints put on people who don’t own their own car. Unfortunately, even when you have magnificent credit many people can be intimidated by vehicle financing. For those with a lower credit score it can be even more daunting. Bad credit car loans are available though. If you’re considering financing a new car, here are three questions you should answer.
Is a Car a Necessity?
The truth is that for most people this answer is going to be yes. Vehicles are not only a luxury. Without them, it can be difficult to have new job opportunities or to transfer the kids back and forth from school. There are a lot of inconveniences that not having a car can have but it can also keep you from carrying out basic errands. Cars generally are necessary.
Have You Shopped Around?
Before you settle on a lender or a car loan, you need to look at all of your options. Make sure to get as many price quotes as you can. You don’t want to settle for a loan that is going to be more expensive and at a higher rate than another would have been. Don’t get locked into anything until you have all of the facts.
Do You Know Your Exact Credit Score?
Knowing your credit score can help you when you shop around. While they will inevitably do a credit check and you may know that your credit is poor, it’s important to have an exact number. Credit scores can change quickly and you don’t want to be up against any surprises after you fill out your application.
Car shopping can be difficult. It’s hard to choose which car fits your lifestyle but even more difficult to figure out which financial plan will be best. When you have poor credit, you need to consider all of your options and know what you’re getting into.
There are many companies offering car loans. However, it may be difficult for some to distinguish between these companies and their offers in order to find the right loan.
Here are four keys we recommend you use to identifying the right company and loan.
Before you get started with your search you should know have a good understanding of your financial standing. Among other things, you should know your credit score, how much you can afford in monthly payments, and the total amount of financing you need. The more you know about yourself, the smoother the process is likely to be.
Know The Lender
You should make a list of possible lenders and do a search of their background. For many lenders, you can get an idea of the terms and fees they usually offer, their loan approval rate, or even their customer service practices by searching the internet. In most cases, our dealership is able to help you get the financing you need.
If your credit score isn’t ideal, don’t let that detract you from finding a lender. We specialize in working with individuals who have poor credit and look at each situation on its own prior to choosing the lender that has the options for you.
Know The Terms The loan that you agree to should be right for you. Don’t be afraid to shop around for the loan that fits your needs in regard to the monthly payment amount as well as overall terms such as interest rate, extra fees, and repayment period.
The best thing you can do when searching for a car loan is to start early. Once you have an idea of what your financing needs are, you should begin to identify potential options. You don’t want to wait until you’ve found the car you want to begin searching for financing options.
The majority of car buyers finance this major purchase. Given the statistics, it’s likely you will be looking at options for car loans when shopping for a vehicle. There are many benefits to purchasing a vehicle with financing. Here are some top advantages to using a loan to purchase your next car.
When you finance a car, you can obtain more vehicle than you may have the cash for. A better car can be safer, more reliable and save on maintenance and repairs. With financing, you make a down payment, then periodic (usually monthly) payments for the duration of the loan. As opposed to paying straight cash for a car, down payments required when obtaining a loan are usually a small percentage of the price being paid for the vehicle.
There is flexibility in terms when financing car. Payments can be made over various lengths of time such as 36, 60 or 72 months. Interest rates that lenders offer are often flexible too, varying with credit score and the desired length of loan. In an economy with low interest rates, your money may be put to better uses than paying cash for a car. Car loans free up that cash so that it may be used for higher interest earning investments, businesses or home purchases.
If you have poor credit or little credit history, financing an automobile may look less attractive. Higher rates are charged to those with low credit scores due to the increased risk to the lender. With a poor credit score, you may need to put down a larger sum of cash in order to keep the payment affordable. However, when you make consistent on time payments, your loan will help improve your credit score over time.
By offering greater flexibility and purchasing power, car loans play a critical part of the automobile purchase process for most.
Want to buy your dream car with all of the bells and whistles? Many car buyers attempt to purchase a luxury vehicle with all of the latest features and options, but simply cannot afford the high price tag that comes along with it. Interestingly enough, there is a way that you can get a beautiful, quality used car with the options you need, and still be able to afford the monthly payments. The first step is comparing your personal needs and wants with a used car.
You may not be able to afford a model with an exclusive entertainment system and heated seats; however, you can get a car that has everything you need. Start by separating the features that you need to have in your vehicle to make it functional for you, from the features that you simply want to have.
Although the specific needs that you require in a used car may differ substantially from those of another car buyer, safety features are an important aspect of any used car. Whether you have children or you are the sole driver of the vehicle, make sure that the car has adequate safety features. Another important need may be the fuel economy. If you drive great distances on a regular basis, you may want to find a used car that offers optimal fuel economy. This will save you money at the fuel pump.
Make sure that your used car has a warranty. Since you are buying a used car, you need to determine whether or not the original manufacturer warranty has expired. Many car dealerships will offer a certified pre-owned warranty or extended-length warranty on used cars. It is definitely reassuring to know that there is some protection on your used vehicle.
Juggling your needs and wants with a used car can help you select the best car for your lifestyle. All of the used car options available makes it simple to select a car that has exactly what you need, and a little of what you want as well, visit us at LP Auto today!
Budgets seem to be on everyone’s mind lately and when you are looking for a new or used car you may be worried about budget/car loans and how it will fit in with your current financial plan. Almost anywhere you go you can find offers of car loans and financing options that are geared toward getting you into a used car, regardless of how your credit stands. This can be a great option for those who are looking for a car to get them to work and a loan to help their credit rating. There are a few things that you should think about before settling on a car and a financing option such as type of car, financing rates, and how this will impact your budget.
Budget/car loans can vary widely between different companies and between different loans offered by the same company. One of the biggest factors seems to be the type of car you are looking for. For instance, if you are looking for a cheap car that will get you from point A to point B with little fuss and few bells and whistles, then you can usually find a pretty good financing option with low monthly payments; however, if you are looking for a top-of-the-line car to impress your friends and neighbours, then your payments and interest rate will probably be a little higher.
When you are looking at different budget/car loans rates you will want to take into account the fact that there are a lot of different companies which will offer financing. These companies include dealers, banking institutions, and even third-party financing companies. If you have the time and ability to shop around a little, then you should be able to find the best terms for your purchase and for your budget.
Financing will impact your budget, there is really no getting around that, but if you do your homework and get the best car and loan for your needs, then you can keep that impact to a minimum. Many people have a hard time finding financing for their cars because of past credit problems and many time if you can take care of all or most of those issues before looking for financing then you can get a better deal and have less of a negative impact on your budget.
Used cars are a great option for people who want a higher-end vehicle, but don’t want to pay that higher-end price. A brand new car can lose as much as 20 percent of its value within the first year of ownership alone. That means car buyers can get a vehicle that is just couple years old at a significant savings. But the term “used” comes with a bit of a stigma, with people assuming that a used car is more likely to have problems. Such concerns led to the creation of a new category of vehicle: the certified pre-owned car.
To qualify to be a certified used car, a vehicle can’t be too old and can’t have to many miles – usually no more than five to seven years old with no more than 60,000 to 80,000 miles. Vehicles that fall within that range are given a multi-point inspection and any damage is repaired. Finally, a certified pre-owned car is backed by the original manufacturer and comes with an extended warranty, limited bumper-to-bumper coverage and other services often associated with new car sales. While buying a certified used car will still net you savings over buying new, it is important to note that you may end up paying more than you would for a non-certified vehicle.
Some cars are misleadingly advertised as certified when they are not actually backed by the manufacturer and do not undergo the inspection and repairs that true certified vehicles do. In those cases what may be represented as a warranty is really a service contract entered into with a third party. Often these contracts require customers to pay for repairs upfront and seek reimbursement or, at the least, pay a deductible that can run hundreds of dollars.
If you do opt for a certified pre-owned car, you can rest assured that you’re getting one of the dealer’s best used cars that has been inspected, repaired and is backed by a warranty from the manufacturer.
People who sell used cars have a reputation, and it isn’t a good one. The title “used car salesman” conjures up images of cheap suits, greasy hair, and fake smiles. It’s an occupation that has a negative stigma attached to it, and some of the games that have been played between buyers and sellers on car lots are legendary. You may feel that there are very good reasons for withholding your income and financial information for as long as possible. In this antagonistic environment, it can be hard to let your guard down, but there are reasons why a good salesman should be trusted.
Salesmen are Professionals
Most salesmen are business professionals with an incentive to provide you with excellent customer service. They are working hard in an industry that is highly competitive. Repeat business and referrals are critical to their success, and playing deceitful games with customers is not in their best interest. The only salesmen that last for any length of time have earned reputations for fair deals, but that doesn’t stop most buyers from approaching them with suspicion.
Salesmen Have Helpful Knowledge
In order to serve you best, a car salesman must understand your needs. To do this, your trust must be earned. The relationship they work to developed with you is what puts you in a position to get the most out of the exchange. Without your cooperation, you are just making it harder on yourself. A good salesman makes suggestions that help you decide which auto purchase is the most advantageous for you.
The Final Deal Benefits You Both
As a buyer, you are working together with your salesman to produce a result that is mutually beneficial. You want to get the most out of your money. Every dollar you spend should be returned to you in the value of the vehicle you drive. A salesman needs to make certain you buy something that will satisfy your needs for as long as possible. From the salesman’s perspective, getting it right the first time around is less costly than continuing to provide follow up service for unhappy customers. By cooperating together, you both win.
Experienced salesmen have seen it all before. Being coy with them signals that you are they type of buyer that wants to play games. Used cars are tricky enough. Instead of approaching your salesman with suspicion, try giving the benefit of the doubt.