• Tag Archives car loan
  • Tips For Finding The Best Car Loan Rates

    Finding the best car loan rates is never easy. Yet there are some nifty tricks by which you can grab the best deal which are discussed in this article.

    Online car loans usually ensure better rates and your location is not an obstacle for finding the best deals. Yet to find them, you will have to do proper research on various financing options available. While searching for the best car loan deal, you will need to follow certain steps which are discussed in this article. By doing these steps you will be able to get the best interest rates for your car loan.

    First step for finding the best deal is to assess various financing companies. There are numerous car financing institutions in the loan market operating both online and offline. Offline lenders are located mainly at high streets and can be directly contacted for getting quotations and other information. Generally, most of the offline lenders offer higher rates because their working costs are far higher than that of online lenders.

    Online lenders, on the other hand, offer better rates and greater convenience to borrowers. With them, you can perform all the steps for availing the loan in your home or office. You will only need to spend some time online for getting quotations and related details. They also offer better interest rates as the working costs of them is much lesser compared to offline lenders. They do not need to open many offices or appoint many staff to run their business. This directly reflects on the interest rates also.

    Getting the service of online brokers will also help you achieve your goal. They will help you make accurate comparison between the deals and will help you negotiate lower interest rates with the lenders. The term best is relative and varies with individuals. Suitability factor depends on the financial background of the borrower. To find the best deal, you will have to wisely balance the interest rates and the repayment tenure of the loan according to your financial status. Shorter repayment tenure is always better as you will have to pay more money as interest.

    Increasing the down payment is another effective step to cut down on interest rates. There are many zero down or slight down payment schemes available. But you have to pay higher interests for such deals. Lenders consider those who are willing to pay bigger amounts initially as more credit worthy and offer them better rates. As a general rule, down payment of around 20% of the total loan amount will get you lower interest rates. Getting pre-qualification is another step to lower cost of car loans. By doing so, you can reduce the costs by asking discounts and extra offers.

    Follow the above mentioned steps and get a cheap car loan saving a lot of you hard earned money.


  • How To Spot The Best Car Loan

    Do you want to get a car loan instead of forking out a large sum of money upfront for a car? Well did you know that some loans are better than others? When looking for car finance you should be aware of what to look for and try and opt for the Best Car Loan to suit your needs.

    What is a car loan?

    A car loan is basically a loan for the purpose of purchasing a car. You can usually go through a car dealership that works in partnership with reputable car financing companies who can provide the quote, help you with the application and finalise the loan, – all in one simple visit.

    A quick snapshot

    • Look at the interest rate and compare with others
    • Look at the monthly repayments
    • Enquire about up front charges
    • Find out how much you will pay overall on the loan The best car loans The Best Car Loan will usually have a competitive rate of interest; the company will offer you sound advice on the amount of money you should opt to borrow. The company will ensure you understand the process and your obligations fully. They will help you with a realistic payment plan and ensure you have the means to pay it back before offering you the loan. A quick snapshot
    • Reasonable interest rates
    • Realistic monthly repayments
    • Helpful unbiased loan advisers
    • Realistic payment plan What if you have bad credit? If you have bad credit, it is not advisable to try and apply for a car loan. There will be very few lenders, if any , who will offer a loan for a new car to people who have had credit issues in the past. What you need to get car finance?
    • Good credit
    • Full UK drivers license
    • Deposit
    • Three to six months bank statements
    • Three to six months wages slips Employer information
    • Proof of address dated in the last three months Address details for the past five years You may need more or less, however if you are looking for the best car loan, it is advisable to make sure that you have all of these things to hand. Get your finances in order and make sure you have enough money for the deposit, insurance and any other costs associated with owning a vehicle.

  • Discover How To Get A Car Loan If Your Score Is 480

    In this article I’m going to share with you how to get a car loan, even if you have a low credit score. The information in this article might be the only information you will need to learn, so you will know how to get the bank to say yes to your car loan. So, let’s get started and get you on your way to driving that car you need and want.

    Auto lenders look at more than just your credit score when considering making you a loan. They look at your entire financial picture, including income, the debt you owe, monthly payments and credit history before making the decision to approve or decline a loan. Before you go out and apply for a loan, make sure that your employment history, credit, income and address information is acceptable, based on what the lender is looking for.

    If you have sufficient employment history and income, a lender may approve your loan even with a low score.

    Here’s What Lenders Are Looking For:

    Employment and Address History: Have at least two years of employment history and address history at the same job. The longer you have been at your job and the more money you make, the better chance you have of getting the approval on your auto loan. However, if you have had several jobs and moved from one residence to another and have low income, it’s going to be tough getting approved for a loan. You should also have enough income every month, to cover all your monthly debt. If your debt is high and close to or over your income level, a bank will decline the loan.

    Vehicle Value: The lender calculates the vehicle’s value by the year, make, model, options and miles on the car you are looking at purchasing. Based on your credit history and score, the lender will approve a percentage of that value as the loan amount. If you have poor credit you will need to come up with a larger down payment. You may not be able to get the entire amount of the loan that you applied for, because of a low credit score.

    What You Can Do:

    Pull your credit history. Know what your score is before you apply for a loan.

    Save some money for the down payment. If you have things around your home that you aren’t using, consider selling them and use the extra cash for the down payment. The more money you put down, the better chance you have of getting the loan.

    Choose a car based on what you can afford, not on the latest style. When you have bad credit you can’t be picky on the finance terms or the car. Dealers who offer programs for people with poor credit have cars that will fit the program for the lenders approval.

    Don’t worry about having to pay a higher interest rate right now. Provided you make your payments on time, you can usually refinance for a better interest rate and terms within 12 to 24 months. Remember you are rebuilding your credit and it takes time to get it back up in the higher scores.