Archive for the ‘Car Loans’ Category

The Time Is Now To Buy A Car!

Friday, May 15th, 2009

There hasn’t been a better time to buy a new car in a long time!

Hundreds of car dealers are closing their doors, and the numbers are rising daily. Now here’s the good news: those that remain open are literally overflowing with inventory, trade-in values are lower than when you bought your last car, lease deals are harder to find and generally less appealing than in the past, and traditional financing is becoming harder and harder to get.

This is the right time to purchase a car. Right now, automakers have pulled the emergency brake on production, working to desperately balance out their inventory with demand. The effect will be to bring down the dealer inventories to sustainable levels, at which point the incentives and willingness to negotiate will be drastically reduced.

Most shoppers would be wise to consider a fuel-efficient car now while discounts are available and gas prices are relatively low; once inventories level out and gas prices rise, finding incentives on thrifty four-cylinder and hybrid models will be much more difficult. Also, resist the temptation to buy an SUV, truck, or other gas-guzzling model on the belief that gas will remain cheap (the reason: there is no basis for such an assumption).

Incredible deals can be found in today’s market, but make sure to make smart choices, and go into the buying process with your eyes wide open.

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Never Fall for this Car Dealer’s Trick

Friday, March 20th, 2009

There are many car dealers who will claim that they are going to pay off the balance on your current car loan, no matter how much money is still owed on it. However, if you agree to such a deal, you will simply be transferring your remaining balance onto your new car loan (this is a fact). What this means to you: if you’re interested in purchasing a $21,000 car, but you still have $7,500 left on your current car loan, you’ll be taking out a $28,500 loan in order to cover your expenses.

Such a program is not attractive in the long run. You would actually be much better off if you simply waited to pay off your outstanding balance before purchasing a new vehicle. If you simply cannot wait to buy another car, consider one that is much more affordable. Otherwise, you could find yourself falling even farther down the economic ladder into debt hell.

What to do: don’t worry, with some smart strategic planning, you can obtain an auto loan that will leave you in a good financial position in the years ahead. Consider the fact that cars tend to lose their market value quickly, and you’ll be able to better see that a cost-efficient car loan may be one of the best financial decisions you’ll ever make.

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Other Options to Title Loans

Friday, February 20th, 2009

In the face of an emergency, a title loan might seem very attractive, especially if you need cash right away or have exhausted all your options for getting a loan from a traditional lender, such as a bank, savings & loan or credit union. However, if you take out a title loan, and then don’t bother making sure you’re making the payments on time, you might just end up losing one of your most valuable possessions, and your sole means of transportation (which is usually a person’s way to get back and forth from work to make more money).

Instead of a title loan, you should first consider some of your other options that you may not have thought of yet. So, before you sign any title loan papers, why not try to:

1. Work out a payment plan with the seller or provider of whatever it is that you are taking the title loan out to pay for.
2. Contact a credit counseling service, which might help you sort out your finances at a reduced rate, or for free depending on the city or state where you live.
3. Borrow some money from a friend or family member.
4. Seek financial help from a charity or government agency.

Remember that a title loan is not that risky for the lender, so they’ll usually be more than willing to “give” you one. However, it may be very risky for you, so just be careful (just like anything else in life)!

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Talking the Car Dealer’s Language!

Wednesday, February 4th, 2009

Understanding car-buying terms will certainly help you in the price negotiation process at any dealership you go to. It will also show both the salesperson and their manager that you are no one to be messed with. So without further ado, here goes the following pricing terms, listed in order of increasing amount, which you’ll need to throw around in there:

Invoice Price. This is the manufacturer’s initial charge to the dealer. However, dealers often pay less than invoice price since the dealers receive rebates, allowances, discounts, and incentive awards from the manufacturers. Invoice price includes freight or destination and delivery charges. Note: if purchasing a vehicle based on the “at invoice” price, you should make sure that the dealer does not add freight to the sales contract.

Base Price. This is the cost of the car without options, but includes standard equipment, factory warranty and freight.

Monroney Sticker Price. This is required by federal law and shows the base price, the manufacturer’s transportation charge, and the fuel economy (mileage). Only the purchaser may remove these labels.
Dealer Sticker Price. This is the Monroney sticker price plus the suggested retail price of the dealer-installed options, i.e., additional dealer markup (ADM), undercoating and dealer preparation.

Now that you know this terminology, go show them a thing or two (note: they’ll be impressed and slightly scared of you at the same time)!

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How to Find the Perfect Car

Tuesday, February 3rd, 2009

There are so many options to choose from when buying a car, that a decision that should be fun can become overwhelming. But don’t despair, we’re here to help you narrow down your choices…

First off, determine how much you can afford. If you have the cash to pay for a new car, figuring out what you can spend is fairly easy. However, if you need a loan to buy that same new car, you need to determine what your down payment will be, and how much you can afford to pay each month. Note: the bigger the down payment, the lower your monthly payments are going to be.

Next, you need to narrow down your choices. Ask yourself, “What type of car am I looking for?” Think about your budget, your daily commute, who will be driving the car and how long you plan to keep it. Use this list of needs and wants to narrow your choices down to a few models within your price range. Research each model to figure out which ones make the most sense, and then go for a few test drives.

Finally, for each model you’ve considered, check to see if it has the features you’re looking for, and how much they’ll cost you. Consider safety features such as airbags and anti-lock brakes, and luxury features such as leather seats, satellite radio and a navigation system. Keep track of how the base price increases as you add features; you may find some base models come with more than others, giving you more for your money.

After all this, you are ready to drive away in the ideal car, for you!

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