Car Loan Tips
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Obtain a car loan no longer than necessary
   
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16.4% APR $5,000 Auto Loan...HELP!
Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:
DEAR L .....
Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:
DEAR L .....
By Jakob Jelling http://www.cashbazar.com
Some time in your life you will need a new car. You may not want
to have the burden of a new car debt, but you may find there are
very few alternatives. There are some simple things you can look
for that will help reduce the amount of money every month.
Depending on your credit situation, a car loan can be very easy
or rather difficult. Even though there are dealerships that
specialize in selling people cars with bad credit, the purchaser
must realize what they are getting themselves into.
Before You Start Investing
There maybe several reasons why you to want to invest your money. You may want to retire early, want to build your own business in the .....
Get the loan firstThere maybe several reasons why you to want to invest your money. You may want to retire early, want to build your own business in the .....
One of the greatest advantages you can have over the dealership
is to get the loan before you buy the car. You can shop
dealerships on weekends and at night and look at the prices and
figure roughly that the car will be about 15-25% less than what
the sticker says. Go to a bank or lending institution and fill
out the appropriate paperwork. Once they give you the loan, you
can figure out approximately how much the car will cost you in
advance and apply for a blanket price. You can also sign a
contract to purchase depending on financing. This means you can
haggle your best price and then tell your bank or financial
institution how much the car loan should be for exactly.
Dealerships do not want you to bring your own financing. This
takes the deal out of their hands. Most dealerships provide
finance departments who are more than willing to lend you the
money should you meet their credit requirements. An average car
loan can cost the consumer between 7 15% depending on their
credit rating, financial history and ability to repay the loan.
Some dealerships offer teaser rates at 0% financing. A chosen
few people in the world can actually get these rates. If you are
not careful, you can find yourself paying double for the car
loan.
Using dealership financing
You may be pressed for time and have credit issues that make it
difficult to get qualified at a bank. Your best option should
you be able to get a car loan is read the fine print. You should
know the exact dollar amount you are paying before you sign a
sheet of paper. Dealerships can be sneaky and try to extend the
life of a loan at a certain payment to get you interested.
Should you only want to pay $200 per month, the car loan for
five years would be $12,000. A dealership will try to finance
the deal to go to six, seven and even eight years in length!
That would mean a car that would cost $ 12,000 could run up to
$19,200. The downside to longer payments is that the cars value
could be worthless by the time it comes to buying another
vehicle.
About the author:
Jakob Jelling is the founder of http://www.cashbazar.com. Visit
his website for the latest on personal finance, debt
elimination, budgeting, credit cards and real estate.