MakeMoneyOnlines's Blog

November 19, 2008

Auto loans with no down payment are an excellent way for a person to get a car. This type of financing offers traditional borrowing without the collateral. They can also be considered no down personal financing through private lending agencies. If a person happens to have a trade-in vehicle, the majority of dealers who issue auto loans with no down payment will accept it as equal to cash down. An auto loan with no down payment will be for the exact amount of money needed, so the trade-in will help lower monthly payments for the life of the loan.

They are often arranged through the dealership in order to creatively finance just such a transaction. However, every buyer should shop around to make sure that the price of the car is fair and reasonable. If a person is going to pay double digit interest rates, at least know that the sticker price is not artificially inflated. There is enough risk of defaulting without being price gouged. Buyers who are not savvy may sign a contract that obligates them to pay double or triple what the car is worth. Every financial agreement should be well communicated and clearly understood. The principal, interest, and fees should all be calculated out so that the buyer of an auto loan with no down payment can see exactly what it will cost monthly, yearly, and for the life of the loan. If auto loans with no down payment outlive the life of the car, buyers may find themselves in a similar predicament: debt but nothing to show for it. Finding honesty with a dealership (or anywhere) can be tricky. Make sure the essence of the establishment has Proverbs 11:1 present. "The Lord hates cheating and delights in honesty. If you cheat on your work, you cheat yourself and others."

Another advantage is that the financing comes from two sources other than one: the vehicle and the money borrowed. Dealers can offer more strategies for buyers who seek auto loans with no down payment. If a person has bad credit and is seeking an auto loan with no down payment it is important to realize that the car this person wants may not be what they qualify for. As a person works steadily to improve credit rating, shop around for financing that will allow the purchase of a starter car: reliable but not fully loaded with extras. Try to limit the to about four years or less so that it can be paid off in a timely manner, repair credit, and end with a vehicle that still has resale value.

For more information: http://www.christianet.com/autoloans

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Auto Loan With Lowest Rate

November 19, 2008

An auto loan with the lowest rate can be found by searching various lenders via the Internet or by leafing through local newspapers in the classified car sections. Such offers can be obtained if the borrower has a good solid credit history, and if the vehicle in question for purchase is worth what the borrower is willing to pay for it. Most lenders will not offer a low-rate loan to a bad credit borrower for a car that has lost a higher percentage of value than normal due to high mileage, body damage, or internal electrical problems.

Low-rate loans can be obtained by a borrower willing to pledge another piece of collateral as security. Lenders feel that offering a borrower an auto loan with the lowest rate should only be done when it benefits the lender more than the borrower. Lending institutions are in the business for the reason of interest earned or a return on their investment. Typically, larger low-rate loans are common, as the longer the balances remain unpaid, the longer the lender receives interest on that balance. Borrowers looking for a shorter term may find the searching more difficult.

It is always best to first deal with the local lending institutions. The local lenders may be able to offer an auto loan with the lowest rate to borrowers in their community to facilitate more local business. The Internet, however, is becoming an ever-growing source of lending institutions. Experts recommend caution with Internet lenders, though. There may be higher fees associated with credit checks, pre-payment penalties or repayment variable interest rate terms. Ideally, a borrower should submit all lending document information to their attorney. If attorney viewing is not possible, reading the promissory note and purchase agreement carefully is required. "How much better is it to get wisdom than gold! and to get understanding rather to be chosen than silver!" (Proverbs 16:16).

Deals on car lending will be more available to those with outstanding credit (usually 700 and above). Borrowers should first receive copies of their credit report from all three nationally recognized credit reporting agencies: Equifax, Experian, and TransUnion. Reviewing the credit report for inaccuracies should be done, as an inaccurate credit report could be lowering a borrower's credit score and thus eliminating them from an auto loan with the lowest rate. Knowing one's own credit score can enable the borrower to shop around and gather quotes before actually applying for lending.

For more information: http://www.christianet.com/autoloans

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Vehicle Collateral Loans

November 19, 2008

Vehicle collateral loans may be one way to get someone out of an unexpected financial crisis. They may not be the best way out however, and there are a number of things a person ought to consider before diving in to such a business arrangement. There are a number of companies online that will loan a customer a certain amount of money for any reason as long as there is a clear title to a car. In order for a person to qualify for a loan of this kind, certain requirements must be met. "Therefore, my beloved brethren, be ye steadfast, unmovable, always abounding in the work of the Lord, forasmuch as ye know that your labour is not in vain in the Lord." (I Corinthians 15:58)

Vehicle collateral loans are based on a number of requirements. To begin, most companies offering such loans require someone to be at least nineteen years old, and some states require the person to be twenty-one. In most cases, the car, motorcycle, boat or truck must not be more than ten years old and clear title must be held by the person seeking the loan. Additionally, full collision and comprehensive insurance must be in place on the conveyance in question and the conveyance must be registered in the name of the customer seeking the loan. Also, the customer must have a valid driver's license and show a piece of computer generated mail addressed to the customer at the address provided on the loan application. Finally, the customer will have to give the loan company an extra set of workable keys to the auto so the loan company can easily take the car if a default on the loan occurs.

Vehicle collateral loans are usually never for the full amount of what the car is worth on the day of application. Rather, the loans are typically for about half of the car's wholesale value. Some companies use the Kelly Blue Book value which is a wholesale value to decide how to structure their vehicle collateral loans loan amount and some companies use their own resources to place a value on the vehicle. Of course, while some of this application process can take place on the phone, a person will have to bring the vehicle in question into an office so that the condition of the automobile can be assessed. Once the process is completed, usually a person can leave the office with a loan based on one to sixty months of pay back.

Vehicle collateral loans are also available to those who do not have clear title of a vehicle. These are called car title pawns and are based on how much equity a person has in the automobile at the time of the loan request. This kind of loan can be very tricky, especially if it is based on a car that was once financed new to the loan customer. For example, if a person buys a car new and finances most of the cost of the vehicle, the car loses about twenty percent of its value as soon as the car in driven off the lot. On a fifteen thousand dollar vehicle, this is a three thousand dollar loss immediately and if the customer only placed one thousand dollars down on the car, the owner is already "upside down" on the vehicle loan, owing more than what the car is now worth. As the car begins to depreciate as all cars do, the gap between what is owed on the loan and what the car is worth only widens. This all means that unless a car was bought used, when much of the depreciation has already taken place and the owner got a good deal on the used vehicle initially, no car title pawn will happen.

There are a few companies offering vehicle collateral loans that offer fairly low interest rates. Take for example one of the vehicle collateral loans taken out for a forty-eight month period. If a person would be so fortunate as to have sixteen thousand dollars free and clear on the title, that money could be loaned at an interest rate of six and a half percent. For some companies, there are no mileage restrictions and no model year restrictions. Of course, the shorter the loan period amount, the better the interest rates can be for the auto collateral loan offerings available for the consumer.

It is unfortunate to say, but those individuals who seek out such vehicle collateral loans are often the people who are least in position to pay them back. From the earlier description of such loans, a person who has nothing else to offer as collateral on a loan except a used car can easily get sucked into a downward spiral of more and more debt if the money from the loan is not used wisely. For example, if a person borrows money on equity from a car to pay off a higher interest rate credit card, that might be acceptable. If the money is used on a valid home improvement such as the remodeling of a bathroom or kitchen, this kind of loan could possibly pay for itself. On the other hand, if this auto equity loan is used for a vacation or new clothes or new television set, prudence would dictate that the customer wait and save his/her money and pay cash for such items.

For more information: http://www.christianet.com/autoloans

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Cash Loans With Car As Collateral

November 19, 2008

Cash loans with car as collateral will allow borrowers to get money quickly because, essentially, they are promising a lender that if a payment is late, he can keep the vehicle. These are generally last chance loans to pay for an emergency expense. To seek one for any other need would be reckless since the borrower can lose the car and lose credibility. They are sometimes called auto title loans, since the lender holds the title (proof of ownership) until all debts are paid. Obviously, people can only get a cash loan with car as collateral if they own the vehicle free and clear with the legal title in their possession. For immediate cash flow problems, these loans can help. However, it is only a win-win transaction for the lender who profits from steep interest rates, fees, and perhaps a "free" vehicle ---one that can he can repossess and sell to pay off what he is owed if the amount is in default.

This type of lending is a lure for a fast financial fix. Many unsuspecting borrowers are fooled because they choose to trust what is too good to be true. Scam artists thrive in communities where there are young, low-income consumers who think from paycheck to paycheck. A short-range thinker sees cash loans with car as collateral as simple and safe. The Department of Defense has initiated legislation to help protect soldiers and veterans against high-risk loans like these. For instance, lenders can give at a mere fraction of the car's market value with no legal recourse for the borrower. He could be locked into a debt he can't pay with a car he can't sell. This is why a cash loan with car as collateral is high-risk in nearly every case.

If a borrower finds himself putting up his vehicle in order to borrow, the utmost caution should be taken to seek financial counsel from a reputable credit counselor. There are many non-profit financial planners, debt consolidation counselors, and clergy who can help a debt-heavy consumer plan for emergencies and protect assets rather than risk them in a cash loan with car as collateral. Reputable lenders know that a well-educated consumer is less enamored with slick promises that often accompany cash loans with car as collateral. Unfortunately, wise counsel isn't always as popular compared to an easy fix. We do well to remember that wisdom often requires trust and patience. "Shew me thy ways, O LORD; teach me thy paths. Lead me in thy truth, and teach me: for thou art the God of my salvation; on thee do I wait all the day." (Psalm 25:4-5)

For more information: http://www.christianet.com/autoloans

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Used Auto Financing

November 19, 2008

Obtaining used auto financing, in one sense, has never been easier. Many consumers are able to get a loan by filling out an online application at a lending institution's website. They may complete the application online even when applying through their own bank or credit union. Or they can choose one of the many online financing companies. Several of these promise an answer within minutes of submitting the application. A consumer who has all the required information close at hand may find that the entire process is completed in very little time. But the ease of completing online applications should not be the main criterion for choosing a used auto financing company. There are several things a prospective buyer needs to consider before taking this financial step.

Buying a used car can sometimes feel like a catch-22 situation. The consumer doesn't know how much money to borrow until she finds the car that she wants to buy. However, she may not know how much she can spend on a car until she completes a loan application. Financial websites help in this type of situation by providing car loan calculators. By entering different variables such as possible loan amounts, typical interest rates, and the number of months for the loan, the calculator calculates the monthly payment for the varying scenarios. The consumer can try out different variables to find a range that makes sense in her monthly budget. This will help give her an idea of how much money she may be qualified to borrow before she ever begins her used car search.

However, real life often seems to work the other way. The consumer may find the car or truck that he just has to have. Then he tries to figure out a way to pay for it with used auto financing. Online calculators can still be a help. The individual knows the amount of money he needs to borrow. The calculator can help him figure out how realistic his chances are of borrowing that amount given the probable interest rate and length of the potential loan. For example, a teenager with a part-time job may have his eyes and heart set on a specific truck model. After searching through want ads and conducting online research on the values of this type of vehicle, our teen knows about how much money he needs to buy a vehicle of this particular model that is about five- to seven-years-old. By using the online calculator and analyzing different interest rate/length of loan scenarios, the teen (and his parents) can decide if that part-time job is going to pay enough to cover the truck's monthly payments, the insurance, and the gas.

All three variables of used auto financing (amount of loan, interest rate, and length of loan) are important in determining a monthly payment. Of course, the amount of the loan may fluctuate depending on one's negotiating skills with the seller of the selected vehicle. The consumer may, to some extent, choose between several options when it comes to the length of the loan. The interest rate, also known as the APR (annual percentage rate), depends on several factors and the individual may not have much choice in what the final APR will be. An important factor is the consumer's credit history. Before beginning the used auto financing process, prospective buyers are well-advised to review copies of their credit reports. These can be obtained from the three major credit bureaus: Equifax, Experian, and TransUnion. Consumers have the right, on an annual basis, to receive one free credit report from each of the three bureaus. Consumer advocates often suggest that individuals set up a routine of ordering a credit report from just one of the credit bureaus every four months. This practice helps individuals stay on top of the information contained in the credit reports.

The credit bureaus assign a score to each individual based on a multitude of variables that include past payment history, lines of credit, and stability. The scores from the different bureaus will not be the same because each one has its own secret formula for determining the score. However, they should be in the same range. Generally speaking, a person with an excellent credit score and history will be able to get used auto financing at a lower APR than someone with a poor credit score. By getting the credit report before beginning the loan application process, the prospective buyer can check to see if there are inaccuracies in the report. This allows her to fix any mistakes before a lending institution pulls a copy of her report. If the score is low, the prospective buyer may be able to take some positive steps to raise the score before applying for a loan. On the other hand, if the prospective buyer knows, and can document, a high credit score, he will not fall prey to the scams of some unscrupulous auto dealers and finance companies who may try to dupe him into signing a contract for a loan with a higher than necessary APR. Unfortunately, not all people follow the instruction of Scripture: "A good man sheweth favour, and lendeth: he will guide his affairs with discretion" (Psalm 112:5).

The model year of the vehicle will also affect the APR. A newer car with a low APR may actually result in lower monthly payments than an older car with a higher APR. This is information that a savvy consumer will want to consider when applying for a loan. Another interesting tidbit: some credit unions will not provide used auto financing on vehicles that have more than a specified odometer reading no matter how new the car may be. A prospective buyer, especially one with good credit, may find it is easier to obtain an unsecured loan instead of designated used auto financing. An unsecured loan doesn't require collateral, but is based on the person's reputation as someone who has a history of paying obligations on time. With this money in hand, the prospective buyer can seek out the best possible used car deal possible.

For more information: http://www.christianet.com/autoloans

Used, Auto, Financing

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