25 Car and Auto Loan Tips ( For Short Term Needs)



1.) Auto Title Loans Through Your Bank


Is your local bank offering auto title loans? If so, if you own a car and you badly need a loan, your car title can serve as security for the loan you wish to take.
The good part about an auto title loan through your bank is that you are usually considered for this type of loan even if you have bad credit history or you’ve previously declared bankruptcy. And since banks are generally known for offering better rates, you are better off getting a car title loan through a bank than any other lender.

2.) Requirements for Auto Title Loans

Thinking of auto title loans? If so, you need to prepare the following: your vehicle, the original car title, auto registration, driver’s license, proof of insurance, and others to avail of this type of loan. If you want to give this a try, there are so many online lenders who are willing to extend a loan against your car title. Rates are determined based on the information you provide when you submit your application online.

3.) Auto Title Loans are for Short-Term Needs

Auto title loans should only be used for real financial emergencies. These are easy to get loans that are usually characterized by a short loan term period (usually two to four weeks) and have high rates of interest. Note that lenders who are willing to extend these types of loans target individuals who are badly in need of cash. For them, this may be a quick way to get a car because if you don’t pay on the due date, you risk losing your car to the lender.

4.) Auto Equity Loans - Tiding You Over

Are you badly in need of cash? Why not take a look at auto equity loans? An auto equity loan is a type of security interest where you pledge your equity in your vehicle in exchange for cash. A car equity loan can usually be availed thru a bank or financing company. The money you get can be used to eliminate another loan with a much higher rate of interest or simply for everyday use such as paying the electricity bill, groceries, and others.

5.) Break Your Auto Equity Loans Habit

Has what started as a real need in getting auto equity loans now spun out of control because of the relative ease in how you get such car loans? You are not alone. Millions of Americans find themselves getting sucked in to car equity loans or any loan for that matter that enables them to get their hand son fast cash. Break this cycle now before you plunge further into debt? How? Major lifestyle changes are in order. If the task is too daunting, consult a credit counselor.

6.) How To Ensure You Get the Best Auto Loan Rates

There are three main things you can do to ensure that you get the best auto loan rates. First, start by checking out the auto loan rates in your city or state. You can easily get this data online. Second, check your credit standing as this affects the loan rate you’re likely to get. And third, shop and compare the loan rates offered by online lenders, your auto dealer and your local bank. Now, it’s just selection time!

7.) Online Auto Loan Rates - Protect Yourself

This is a common scenario – you are searching online for the best auto loan rates when you are asked to fill out a form BEFORE you see the car rates applicable to you. Many people actually stop at this point and leave the online lender’s site. One of the main fears of people when dealing with online lenders is that the loan information they provide will be made available to others. As such, ensure that when you do provide loan information, the site is secured (normally, you will see https: on the web address).

8.) The Benefits of Using Online Car Loan Lenders

Try and get over your fear and skepticism of using online car loan lenders. These lenders offer real benefits: no processing fees, availability of handy tools such as loan calculators you can use, fast processing of auto loan applications (some are pre approved in minutes!), numerous loan articles you can read and review, and more! Even if in the end you opt for your local bank or neighborhood auto dealer, the effort of looking up these online lenders will be worth it.

9.) Car Loan Savvy - What to Do When You Give a Deposit

Before the car loan - you must first determine the car. There are a wide range of websites that offer information on buying used and new cars. These sites offer information on pricing as well as other information about cars. Always do comparisons on cars whether used or new to make sure you are getting the best deal possible. Never give a deposit on a car unless you can get your money back and try to get this in writing before you give any money for a deposit.

10.) Auto Loans - Beware of Dealer Scams VI

Often, car dealers will add ‘extras’ to auto loans as part of the ‘deal’ or ‘so you don’t have to waste time getting it done elsewhere’. Don’t fall for this scam; this is just a ploy to increase the auto loan figures. For example, car dealers throw in window etching for $500 when in fact you can get this easily done for as low as $50(!) if you bring the car elsewhere and have it done there.

11.) Auto Loans - Beware of Dealer Scams VII

Everybody gets tempted by 0% rates on auto loans! But beware - special funding arrangements apply mostly to select (i.e., slow-moving or hard to sell) car models and the 0% come-ons are usually just that – a come-on. If you are up to date with car models and their market prices, and prevailing loan rates, you will soon realize that even if the loan is presumably 0%, the price of the car itself has been jacked up.

12.) Auto Loans - Getting Around the Dealer

No quite ready for auto loans? If you are the non-confrontational type and fear that a car dealer might dupe you into a high-priced car AND a high APR auto loan, then opt for the easy way and CALL the dealer first. One of the effective things that you can do to get information is to get on the phone and call different dealerships. Two things to keep in mind when making that call is not to accept a refusal to talk over the phone and don't talk with a dealer who demands your presence before offering you any information.

13.) A Bank Auto Loan May Offer Friendly Terms

Are you avoiding a bank auto loan? Do not disregard your local bank. True, they may be a bit more strict but they are also know to offer the lowest annual percentage rate (APR). Further, if you are a current client, they may be a more lenient when it comes to previous credit problems. In the end, it never talks to a bank’s loan officer; it is just another way of ensuring that you are thorough with your ‘shop and compare’ routine.

14.) Auto Loan Schemes - Low Interest Rates and No Down Payment Deals

Sometimes there are auto loan advertisements that offer low interest rates or no down payments. Be sure to check that this does NOT entail that the car's price is higher than it would be on other deals (i.e., as compared to people who pay cash or has pre-approved financing). If in doubt, ignore the advertised special and try to see how much another car (of the same type) is priced. It also never hurts to ask the dealer to explain (and compare) how this ‘deal’ differs from others.

15.) Covering Auto Loan Details - How Much IS that Car?

Sometimes, there’s so much ‘hoopla’ at car dealers that you don’t really know how much the car is worth. Auto loan value, known also as loan value, book value or retail value, refers to the assessed worth of the car you like. It is based on many different factors – make and model, manufacturer's suggested retail price and car rates, transmission type and mileage (for second hand cars). Other features such as airbags, sophisticated audio system and vanity accessories also affect the value of the car.

16.) Auto Loan Terms - Shorter Is Better

Do not give in to the temptation of low monthly payments if this means a long loan term. Some lenders even convince you to extend a loan period to as long as 10 years! Realize that by doing so, your interest payments sometimes equal or even exceed the loan value of the vehicle. Go ahead, calculate the interest ratio of the loan arrangement by dividing the total interest over the value of the vehicle. You’ll be surprised to find out that you’re interest payments ALONE amount to 50% to 80% of the actual car value.

17.) It's Time to Get a Bad Credit Car Loan

Getting a bad credit car loan can indeed be a bad idea but do you really have a choice? To start paying off debt or improving your credit rate, you need to work, and to get to work, you need a car. So yes, a bad credit car loan may indeed be a not so nice but necessary choice. Still, do not succumb to convenient (less requirements) or easy (fast approval) auto loans. You still need to shop and compare for the best bad credit car loans.

18.) Bad Credit Car Loans - How Much More in Interest?

There is no way around it – bad credit car loans mean higher interest rates. But just how high? It is not surprising to avail of an auto loan with a 12% and upwards interest rate compared to a 6% to 7% interest rate for people with good credit standing. That’s a big difference indeed. So if you can delay the loan, see if you can improve your credit score first. If not, try to get a loan with interest rates nearer 12% (instead of upwards!).

19.) How To Get Out of a Bad Credit Car Loan

Ok, you are better off financially now and although you appreciate the car you got via a bad credit car loan, you do not want to pay those high interest monthly payments anymore. The answer? Car loan refinancing. Pay off your current auto loan with another car loan that you take from another lender. The difference? The second lender charges a much lower APR. The dynamics is that with the new lender with the lower interest rate, your monthly car loan payments are smaller and easier for you to maintain.

20.) Bad Credit Car Loan - Easy Bad Credit Fix

If you can wait a bit, improve your credit score before you get a bad credit car loan. This will reduce the interest rate applied on the loan and entail lower monthly payments. Start improving credit with these steps: (1) Pay your bills on time! If you can, pay a bit more than the minimum amount due. (2) Never max out your credit limit! If possible limit charges to only 50% of your credit limit.

21.) Lowest Auto Loan Rates through Your Employees

Sometimes, you don’t need to look far at all to get the lowest auto loan rates. Does your company have low interest auto loan benefits? If they do, take advantage of it. Getting a low interest on auto loans from external sources can be risky so why not go for this option that’s readily available to you? Your company’s financing scheme can save you hundreds of dollars on interest payments. If your company is in the financial services industry, all the more you should avail of their car loan benefit.

22.) Factors Affecting Your Chance at the Lowest Auto Loan Rates

Looking for the lowest auto loan rates. Consider these factors.

Look for loans that use prime lending rates. These are rates based on the average loan rates of banks and other financing institutions. It gives you a good idea of what the best money rates are for a certain period in the market.

Cars that have great value get better rates. For used cars, the better the condition it is in, the better its value. As for new cars, a model, make and brand considered great by lenders can mean better rates.

23.) Lowest Auto Loan Rates for Great Credit Score Holders

If you have a great credit rate (higher than 650) then you have a great chance at getting the lowest auto loan rates the market can offer. So if you have this high a credit rate, demand nothing else but the best car loan deal! Of course, other factors such as other loans taken and the type and price of the car you want to purchase affect the loan interest rate a lender will apply on your auto loan.

24.) The Perfect Candidates for a No Credit Car Loan

A ‘no credit’ car loan solves the dilemma that over 50 million people in the US face – they do not have enough data on file to generate a valid FICO score (i.e. credit score). So if you are a student, recently widowed or divorced, a new immigrant to the United States, or just someone who’s never had a need to establish credit before, then no credit auto loans are for you. Go online to jumpstart your search for the right lender!

25.) No Credit Car Loan - Lender Selection Tips

Just because you require a no credit car loan does not mean you cannot be picky. After all, there are many lenders out there just out to scam you. Keep these in mind.

How long the lender has been in the credit lending business? Do they have a good reputation?

How many borrowers does the lender serve annually?

Is the lender’s site readily showing a loan or repayment chart where their standard interest rate is seen?

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1 Feedback:

Salma on June 10, 2009 at 8:26 AM said...

Hi,

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