Have you been thinking about the car of your dreams for years now but you just can't purchase it because you are still short of cash? You don't have to wait any further because there are lots of car financing options available in the market nowadays.
Car financing enables you to purchase and own your dream car without having to wait until you save the needed funds to pay for the car outright. You can always pay an amount now for a down payment and pay the rest in installments. However, you have to be careful when choosing the company to conduct your transaction with. One aspect that you should carefully look into is their car financing rate package.
Car financing rates vary from company to company. There are companies that offer higher interest rates than others, while there are some that offer a rate of 1.9 percent for the first year and increase the rate the following year without prior notice. This kind of increase can be very inconvenient if you are a fixed-income earner.
If you are on the lookout for really low rates, you can always go online business and check online business car financing companies. They can offer lower rates compared to other car financing companies. This is because the online business company saves a great deal in doing business with you online business, which can prove to be more efficient than most personal transactions. They are able to save time and effort explaining because you can understand the details of what they offer through their website's contents. Thus, the savings they get from the online business transactions are passed on to you as their customer.
Getting the best car financing loan can be very confusing. However, if you have the determination and patience to compare car financing rates from different car financing companies, you will be sure get the best deal for your car purchase.
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Kamis, 26 Agustus 2010
How to Get the Best Car car finance rates Rates
Car car finance rates rates are not set in stone. Rather, there are factors that influence the interest rate that applicants are eligible for and the accompanying terms of their loan. When investigating car car finance rates or securing a car loan, it is important to understand what these determining factors are. Being an informed car car finance rates customer will help ensure that you get the best possible car finance rates rates and are able to meet the repayment plan. Here's a rundown of the factors that influence your car car finance rates rate:
Secured loan: A secured car loan means that the loan is specifically for the car, and as such the car acts as security or collateral should you fall behind on your payments. If this happens, the lender can essentially take the car away. Because of this security for the lender, interest rates are often lower than personal, unsecured loans. Those planning on purchasing a second hand vehicle with their loan should check whether their lender provides secured loans for used cars - not all do.
Loan term: The loan term - the time period over which the loan is to be repaid - can influence the annual interest rate. Usually the longer the loan term, the lower the interest rate. However it is important not to extend your loan term just to achieve a lower interest rate as even though you'll be paying a lower interest rate per year, you'll be paying the loan back for longer and thus increasing the total amount of interest you pay. Also, if you secure a long loan term and want to pay it off early, it is likely that the lender will charge you for the interest he is missing out on. Make sure you check the particulars of the loan term with your lender.
Credit history: Almost all lenders will require some access to and information on your credit history. From your credit history, your credit risk will be assessed. The less likely your repayments will be unmet or something will 'go wrong', the lower your interest rate. There are many lenders who will give out loans to those with bad credit history or those with no - or who choose to give no - document history. The upshot? The interest rate will be higher to insure the lender against the risk of lending to someone with bad credit history.
Understanding that there are factors that help determine your car car finance rates rates will help you understand the loan you are getting and make you better prepared to meet your payments. Also, a basic knowledge of these three determining factors will leave borrowers better able to negotiate the best possible car loan or car car finance rates option to suit their budget and vehicle needs. baca selengkapnya......
Secured loan: A secured car loan means that the loan is specifically for the car, and as such the car acts as security or collateral should you fall behind on your payments. If this happens, the lender can essentially take the car away. Because of this security for the lender, interest rates are often lower than personal, unsecured loans. Those planning on purchasing a second hand vehicle with their loan should check whether their lender provides secured loans for used cars - not all do.
Loan term: The loan term - the time period over which the loan is to be repaid - can influence the annual interest rate. Usually the longer the loan term, the lower the interest rate. However it is important not to extend your loan term just to achieve a lower interest rate as even though you'll be paying a lower interest rate per year, you'll be paying the loan back for longer and thus increasing the total amount of interest you pay. Also, if you secure a long loan term and want to pay it off early, it is likely that the lender will charge you for the interest he is missing out on. Make sure you check the particulars of the loan term with your lender.
Credit history: Almost all lenders will require some access to and information on your credit history. From your credit history, your credit risk will be assessed. The less likely your repayments will be unmet or something will 'go wrong', the lower your interest rate. There are many lenders who will give out loans to those with bad credit history or those with no - or who choose to give no - document history. The upshot? The interest rate will be higher to insure the lender against the risk of lending to someone with bad credit history.
Understanding that there are factors that help determine your car car finance rates rates will help you understand the loan you are getting and make you better prepared to meet your payments. Also, a basic knowledge of these three determining factors will leave borrowers better able to negotiate the best possible car loan or car car finance rates option to suit their budget and vehicle needs. baca selengkapnya......
Auto car finance rates Rates and How to Get the Best
Normally when you are looking for a new car, two of the most important factors to consider are the price of the vehicle and the terms that you will be locked into. In other words, you want to make sure that your car finance rates rates are within reason. When you buy from a dealership and car finance rates through them, they will usually link you to a lender that is the maker of that brand of car (i.e. Ford Motor Co., Chrysler Credit, etc.).
You always have other options besides taking a loan this way for a car. The better that your credit is the more options that will be open to you and the better car finance rates rates you will be offered. You can go to your bank or credit union and inquire about them financing your car too. This is actually the best route to take if you want to get the lowest car finance rates rates.
If you secure your car finance rates rates away from the dealership you will eliminate a lot of negotiations, you will be better able to stick to the amount that you initially had in mind to spend on a car, and sometimes it is made even easier by shopping for online bank lenders.
Currently, the national interest rate for financing a new car for 3 years is 6.89%, for a 48 month loan it is 7.12%, and for a 60 month loan it is 7.32%. For a used car it is slightly higher, 36 months of car finance rates for 7.50%. You are not going to just stumble on a good car finance rates rate for your car, you are going to have to have the skill required to seek one out.
There are a few things that can assist you in getting the best car finance rates rate such as having good credit. If your credit is less than perfect you might want to consider working on fixing it up a bit before heading out for that new car loan. Another thing that helps is if you buy at the end of the month. Usually by that time the salesmen are frantic and also eager to close sales. Also, never give the lender a price that you are willing to work with and never take the first offer.
These are some of the things that you can do to keep those car finance rates charges down as much as possible. Keep in mind that car finance rates charges make a big difference in the amount that you pay for a car. baca selengkapnya......
You always have other options besides taking a loan this way for a car. The better that your credit is the more options that will be open to you and the better car finance rates rates you will be offered. You can go to your bank or credit union and inquire about them financing your car too. This is actually the best route to take if you want to get the lowest car finance rates rates.
If you secure your car finance rates rates away from the dealership you will eliminate a lot of negotiations, you will be better able to stick to the amount that you initially had in mind to spend on a car, and sometimes it is made even easier by shopping for online bank lenders.
Currently, the national interest rate for financing a new car for 3 years is 6.89%, for a 48 month loan it is 7.12%, and for a 60 month loan it is 7.32%. For a used car it is slightly higher, 36 months of car finance rates for 7.50%. You are not going to just stumble on a good car finance rates rate for your car, you are going to have to have the skill required to seek one out.
There are a few things that can assist you in getting the best car finance rates rate such as having good credit. If your credit is less than perfect you might want to consider working on fixing it up a bit before heading out for that new car loan. Another thing that helps is if you buy at the end of the month. Usually by that time the salesmen are frantic and also eager to close sales. Also, never give the lender a price that you are willing to work with and never take the first offer.
These are some of the things that you can do to keep those car finance rates charges down as much as possible. Keep in mind that car finance rates charges make a big difference in the amount that you pay for a car. baca selengkapnya......
What You Should Know When Looking For Low Car Finance Rates
Car financing is the basic step when one is trying to acquire a new. Knowledge of car car finance rates rates is therefore important if one is to get a perfect deal. Apart from this, there are numerous other ways, which you can use to secure better car finance rates rates. The first option is to use a car car finance rates broker. The broker will provide you with all the information regarding the current rates for car loans. Apart from this, the broker can be able to negotiate for better deals on your behalf.
Although the broker presents huge benefits for your case, it is not wise to go blindly. You should check certain things about the broker such as the accreditation and the services he or she provides. It is also important to check how hospitable they are to help you judge whether they are the right people to trust with your money. It is also important to check whether the broker is a member of industrial associations such as COSL or FBAA. COSL is an independent body, which has the mandate of handling, complains about the car finance rates brokers. Membership in these bodies means that the broker is unlikely to err.
Another way to better your car finance rates rates is by increasing your initial down payment if you can afford it. This will ensure that you cash flow is not totally interrupted. It will also ensure that you get better rates as there is lesser chance of default. You can also take a co-borrower to help improve your rates. This applies when your credit rating is not so good and therefore the good credit rating of your co-borrower will be helpful in ensuring better rates on your part.
Apart from these, the loan itself also plays a big role in determining the rates. What this means is that someone who goes for a secured car loan or a long-term loan will enjoy lower car finance rates rates. The secured loan uses the car that you are purchasing as collateral hence there is no need for other assets. The security provided by the car means that the lender runs no risk from default hence the provision of better rates. With the long-term loan option, the rates are lowered because you will be paying the loan for a longer period. However, it is not wise to extend your repayment period just to get lower car car finance rates rates since you may end up paying more in terms of the total interest payable. baca selengkapnya......
Although the broker presents huge benefits for your case, it is not wise to go blindly. You should check certain things about the broker such as the accreditation and the services he or she provides. It is also important to check how hospitable they are to help you judge whether they are the right people to trust with your money. It is also important to check whether the broker is a member of industrial associations such as COSL or FBAA. COSL is an independent body, which has the mandate of handling, complains about the car finance rates brokers. Membership in these bodies means that the broker is unlikely to err.
Another way to better your car finance rates rates is by increasing your initial down payment if you can afford it. This will ensure that you cash flow is not totally interrupted. It will also ensure that you get better rates as there is lesser chance of default. You can also take a co-borrower to help improve your rates. This applies when your credit rating is not so good and therefore the good credit rating of your co-borrower will be helpful in ensuring better rates on your part.
Apart from these, the loan itself also plays a big role in determining the rates. What this means is that someone who goes for a secured car loan or a long-term loan will enjoy lower car finance rates rates. The secured loan uses the car that you are purchasing as collateral hence there is no need for other assets. The security provided by the car means that the lender runs no risk from default hence the provision of better rates. With the long-term loan option, the rates are lowered because you will be paying the loan for a longer period. However, it is not wise to extend your repayment period just to get lower car car finance rates rates since you may end up paying more in terms of the total interest payable. baca selengkapnya......
The Best Car Deals
How To Get The Best Car Deals:
Quick tips that will help you at the car dealer:
How to understand Rebates and low financing offers:
Vehicle MSRP: Manufacturers Suggested Retail Price - This price is always negotiable - don't ever agree to pay MSRP
Exception: Some vehicles that might be "hard to find" or "limited in production" might be sold by the dealers at MSRP or, sometimes higher. This is usually called Market Adjustment.
Manufacturers Rebates: This is your money and has nothing to do with discounts given by the dealership. This money is given to you directly from the factory. Never let the rebate be used as a negotiation tool by the dealer. Any discount or negotiation from the dealer should be separate of any rebates offered.
Low car finance rates rates: 0.00% 1.00% 1.9% etc... These are called Sub-vented rates, they too are offered by the factory and not the dealership. Do not allow a "low" car finance rates rate to be used as part of a negotiation by the dealer. These rates are granted over and above any discounts, rebates, etc.
Exceptions: There are several exceptions to Sub-vented car finance rates rates, but here are two that you really should be aware of:
1. Not all people qualify for these rates. So, if you suspect that you might have some issue that will cause you not to qualify, there is nothing wrong with expressing to the dealer that the low car finance rates rate is something you are interested in, and you would like to apply first, before going through the long, timely steps of deal negotiation. Many dealerships will view this as unusual; however, any "good" dealer will be happy to let you submit an application first if you insist. Why is this important? As we always say, knowledge and preparation are the keys to not overpaying at a dealership. What happens if your entire deal is worked, negotiated and finalized with the dealer? Then you head over to the car finance rates office to finalize the car finance rates terms and payments... You expected to pay 0.00% interest, then at the last second you are told: "Sorry" because you don't qualify... NOT GOOD THE WHOLE DEAL CHANGES.
2. Rebates and "low" car finance rates rates can not always be combined. Some factories allow it some times, however there is no rule; you must do your homework first. For instance, Chrysler offers manufacturers rebates on most their vehicles, plus they offer low car finance rates rates on most vehicles as well. Though, you the customer must decide which offer you want, you can't have both. Although, sometimes Chrysler will run special offers that allow you to "combine" both the financing and rebate offers at once. But be careful, dealers won't always tell you that these offers are available, if you are unaware and you agree to pay higher car finance rates rates, you are stuck.
Commonly Asked Question: Which is the right choice, Rebate or Low Financing?
This is an interesting question asked by many customers, the answer is simple yet many people have no idea.
Remember this rule: You should do what's best for you, do not ever inquire with a person, dealer, or anyone else that has any other motive than what's best for you.
What that means is this: When you ask a dealership which makes more sense, the dealer will likely tell you: "Take the rebate - not the low interest rate."
The reasoning behind this answer is, if you take the rebate you are actually paying "less" for the vehicle than if you elected the low interest rate. So, being that the vehicle price is the most important issue, you should always take the rebate. Is this correct or incorrect?
Rule: Don't be concerned what the dealer is making or loosing, it's not relevant to what's best for you.
Does the dealership stand to gain more if you chose the rebate vs. the low car finance rates rate? The answer to that question is yes, the dealership does stand to gain more. They receive a little more in "reserve money" from the lender if you chose conventional car finance rates rates. The fact is however; that this point is completely irrelevant. Who cares what the dealership is making? Why is that important anyway? Is there some rule that says a dealership is not entitled to make profit? The only person who is doing something wrong in this scenario is you. You're asking the wrong party for information. If the complete and honest answer might cause the dealer to make less, chances are more than likely the answers will be carefully weighed to fall on their side.
Remember: Your concern is getting the best deal for you, don't waist time caring about what the dealership makes. Prepare yourself by considering all the facts. Do not make the common errors of all the people we constantly heart about who over pay all the time.
Fact: People who think that dealerships are loosing money on them are usually the ones who pay the most!
Note: Please understand the purpose of this and every other post we write is NOT to condemn dealerships for making profit. Why should a dealer not be entitled to profit? What right do we have to ask them to lose money? Would you ever go to a restaurant and tell them that you insist they sell you dinner and lose money? It's a stretch, but equally as ridiculous.
The purpose of this post is to assist fair people in getting the best deal for themselves. Protecting people from being "ripped off" by a deceptive dealership is our motivation. We don't claim that all dealers are unfair or "rip off artists", in fact we are aware that most dealers are honest and forthcoming. Although, everyone is in business to make a profit and the topics written about within these posts are for the purpose of assisting "fair" consumers achieve "fair" and honest deals. Why do we keep mentioning "fair". Because equal to us having no concern about a cheating dealership, we also have no concern about the "unfair" consumers who want the good dealers to close down their business and lose money. baca selengkapnya......
Quick tips that will help you at the car dealer:
How to understand Rebates and low financing offers:
Vehicle MSRP: Manufacturers Suggested Retail Price - This price is always negotiable - don't ever agree to pay MSRP
Exception: Some vehicles that might be "hard to find" or "limited in production" might be sold by the dealers at MSRP or, sometimes higher. This is usually called Market Adjustment.
Manufacturers Rebates: This is your money and has nothing to do with discounts given by the dealership. This money is given to you directly from the factory. Never let the rebate be used as a negotiation tool by the dealer. Any discount or negotiation from the dealer should be separate of any rebates offered.
Low car finance rates rates: 0.00% 1.00% 1.9% etc... These are called Sub-vented rates, they too are offered by the factory and not the dealership. Do not allow a "low" car finance rates rate to be used as part of a negotiation by the dealer. These rates are granted over and above any discounts, rebates, etc.
Exceptions: There are several exceptions to Sub-vented car finance rates rates, but here are two that you really should be aware of:
1. Not all people qualify for these rates. So, if you suspect that you might have some issue that will cause you not to qualify, there is nothing wrong with expressing to the dealer that the low car finance rates rate is something you are interested in, and you would like to apply first, before going through the long, timely steps of deal negotiation. Many dealerships will view this as unusual; however, any "good" dealer will be happy to let you submit an application first if you insist. Why is this important? As we always say, knowledge and preparation are the keys to not overpaying at a dealership. What happens if your entire deal is worked, negotiated and finalized with the dealer? Then you head over to the car finance rates office to finalize the car finance rates terms and payments... You expected to pay 0.00% interest, then at the last second you are told: "Sorry" because you don't qualify... NOT GOOD THE WHOLE DEAL CHANGES.
2. Rebates and "low" car finance rates rates can not always be combined. Some factories allow it some times, however there is no rule; you must do your homework first. For instance, Chrysler offers manufacturers rebates on most their vehicles, plus they offer low car finance rates rates on most vehicles as well. Though, you the customer must decide which offer you want, you can't have both. Although, sometimes Chrysler will run special offers that allow you to "combine" both the financing and rebate offers at once. But be careful, dealers won't always tell you that these offers are available, if you are unaware and you agree to pay higher car finance rates rates, you are stuck.
Commonly Asked Question: Which is the right choice, Rebate or Low Financing?
This is an interesting question asked by many customers, the answer is simple yet many people have no idea.
Remember this rule: You should do what's best for you, do not ever inquire with a person, dealer, or anyone else that has any other motive than what's best for you.
What that means is this: When you ask a dealership which makes more sense, the dealer will likely tell you: "Take the rebate - not the low interest rate."
The reasoning behind this answer is, if you take the rebate you are actually paying "less" for the vehicle than if you elected the low interest rate. So, being that the vehicle price is the most important issue, you should always take the rebate. Is this correct or incorrect?
Rule: Don't be concerned what the dealer is making or loosing, it's not relevant to what's best for you.
Does the dealership stand to gain more if you chose the rebate vs. the low car finance rates rate? The answer to that question is yes, the dealership does stand to gain more. They receive a little more in "reserve money" from the lender if you chose conventional car finance rates rates. The fact is however; that this point is completely irrelevant. Who cares what the dealership is making? Why is that important anyway? Is there some rule that says a dealership is not entitled to make profit? The only person who is doing something wrong in this scenario is you. You're asking the wrong party for information. If the complete and honest answer might cause the dealer to make less, chances are more than likely the answers will be carefully weighed to fall on their side.
Remember: Your concern is getting the best deal for you, don't waist time caring about what the dealership makes. Prepare yourself by considering all the facts. Do not make the common errors of all the people we constantly heart about who over pay all the time.
Fact: People who think that dealerships are loosing money on them are usually the ones who pay the most!
Note: Please understand the purpose of this and every other post we write is NOT to condemn dealerships for making profit. Why should a dealer not be entitled to profit? What right do we have to ask them to lose money? Would you ever go to a restaurant and tell them that you insist they sell you dinner and lose money? It's a stretch, but equally as ridiculous.
The purpose of this post is to assist fair people in getting the best deal for themselves. Protecting people from being "ripped off" by a deceptive dealership is our motivation. We don't claim that all dealers are unfair or "rip off artists", in fact we are aware that most dealers are honest and forthcoming. Although, everyone is in business to make a profit and the topics written about within these posts are for the purpose of assisting "fair" consumers achieve "fair" and honest deals. Why do we keep mentioning "fair". Because equal to us having no concern about a cheating dealership, we also have no concern about the "unfair" consumers who want the good dealers to close down their business and lose money. baca selengkapnya......
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