Auto Finance and Car Loans

How do auto loans work?
  So how do auto loans work? Since most people buying a new or used car opt for financing it’s an important question, and understanding the answer will help you in the purchase process. To summarize, you take out a car loan with a lender to pay for the purchase of a vehicle and, by signing the loan contract, agree to pay back the money in installments over the course of the loan, according to its terms. These terms include key factors like the finance charge, loan duration and the size of the monthly payment. Most auto loans are simple… Read More

How much should a down payment on a car be?
  The right down payment on a car has the potential to make a significant difference to a vehicle purchase and how financing pans out, so it’s worth seriously considering how much you might be able to pay up front. By lowering the amount borrowed, a down payment may save the buyer money by reducing the monthly payment and finance costs, but there are other considerations as well. A payment of 20 percent has long been viewed as a healthy amount for a new car purchase, according to Edmunds. And when you consider factors like new-car depreciation of 20 percent… Read More

How to pay off a car early
    You might be looking to take control of your finances. Maybe you want to change your vehicle for a new one. Whatever the reason, pay off a car early and not only is the debt behind you, but you may have made a decent saving on interest payments, too. There are various ways to approach paying off a vehicle and, if you haven’t already done so, a good place to start is simply getting familiar with the details of your note, like the amount, term and annual percentage rate (APR). With these at hand, consider using an online… Read More

Getting a car loan as a first-time buyer with no credit history or bad credit
  As a first-time car buyer with no credit or bad credit,* you might feel up against it. That’s understandable. Consumers with long and strong credit histories generally stand a better chance of getting financing from an auto lender, and may enjoy better financing terms and a greater choice of vehicles. But now that we’ve aired some of the common realities of auto loan shopping as a first-time buyer, take heart. Many auto lenders accept applications from first-time buyers, and guess what? Many of those consumers have limited or bad credit histories. When you’re in one of these situations, there… Read More

How an auto loan cosigner might help you get moving
    If you’ve been denied financing for a vehicle because you have no credit or bad credit,* then an auto loan cosigner may be what’s needed to get on the road and on with your life. A cosigner may help by guaranteeing to repay the loan should you fail to do so. “Having a cosigner on your loan gives your lender additional assurance that the loan will be repaid,” says the Consumer Financial Protection Bureau (CFPB). And what a difference having your own transportation can make, whether it’s getting to college classes to further your education, getting to work on time… Read More

New car loans vs. used car loans: A helpful comparison for car buyers
  Weighing your options on a new or used car? It’s wise to consider new vs. used car financing as part of the process as it may have a big impact on how much you pay for the vehicle when all’s said and done. Advantages of buying a new car and new car loans The appeal of buying a new car never gets old: a chance to own a vehicle in pristine condition, complete with the latest technology and safety features; your choice of models and add-ons; a manufacturer warranty, and no history of maintenance issues, for example. There are… Read More

How to use your tax refund for a car purchase
If you’re in the market for a new vehicle then you should know something about tax season: tax refunds and car loans are a good match.* One of the main reasons is the chance for qualified buyers to use their tax refund for a down payment on a car. The average income tax refund in recent years has been around $3,000, and buyers may decide to use all or part of that check as money down. A down payment may help when purchasing a vehicle because lowering the amount of money that needs to be borrowed may also lower the… Read More

How to lower APR on a car loan
  6 tips for getting a low rate and boosting your chances to save Lowering the annual percentage rate (APR) on a car loan is one of the best ways to save on vehicle financing and the total cost of buying a car. And it’s not complicated – there are simple ways to approach it. Here are six tips for how to lower the APR on a car loan. 1. The credit question Whether you want to save cash on financing for your existing car or are looking for a low interest rate and APR to buy your next vehicle,… Read More

How to buy a car in 10 steps – and make it a great experience
  Buying a car can be a daunting task. People often devote large amounts of time, money and thought into purchasing their next vehicle. However, we think that buying a new car should be an exciting time for people! It often marks an important moment in one’s lifetime – whether it be a sweet 16, a new job, or finally saving up enough money for your own car. Some of you may have asked yourselves, “What do you do when you buy a car?” With research, and a bit of help from us, you can understand how to buy a… Read More

How to buy a truck with bad credit
  It’s easy to see why a pickup truck, the Ford F-150, has been the best-selling vehicle in the United States for years on end. There are lots of people who need a truck for work, that’s for sure. But it’s also very handy to have one for personal use. The convenience of dropping the tailgate, loading up and driving off is unmatched by an SUV or car. No lifting up to the roof rack or folding down seats, and no vacuuming the interior afterwards. Trucks are often more expensive than cars, but not all pickup owners are driving around… Read More

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