Tuesday, November 4, 2008

Is it a Smart Idea to Take Out High Risk Car Loans?

Your old car is huffing and puffing down the pike and it seems as if any day now, it will puff out its last huff and die a smoky death. You need a new car, but your credit is not as good as it should be. Whether you are looking to get a loan for new car or for a used car, you may consider taking out a high risk car loan.

High Risk Sounds…Well. Risky

A high risk loan is offered to people who have not taken the proper care of their credit. The higher your credit score, the better rates you will be offered. Those who have low and below the limit credit score can still find financing, but it will often be a high risk loan.

A high risk car loan may actually help you to raise your credit numbers. By paying the loan back in a timely manner, you are showing the reporting credit bureaus that you have taken positive steps to repair your credit.

High risk car loan officers will often take your situation into consideration. There may be unfair reportages on your credit report and it can take some time to get the facts straight and clean the record. If you are looking for a high risk auto loan and you can show the loan officer proof of your regular payment on a past auto loan, you may get a better rate than you had expected.

Situations that May Influence Your Rates

A big plus in your favor can be if you own your home, have a stock portfolio, any other type of real estate or assets that could be deemed valuable that you can offer as collateral. Sometimes if your collateral is equal or more in value than the new car purchase, you can get better rates than someone who has nothing to offer.

Comparing High Risk Car Loans to No Risk Loans

A person that goes onto a new car lot armed with golden credit rating is the one who can make the best deal and get the lowest rates available that day. A person that goes into that very same lot, yet has a credit rating no higher than a shin, will be offered a loan with stricter limits, higher interest rates and certain restrictions.

Find Out if You Qualify for a High Risk Car Loan

If you are considered high risk it is in your best interests to do as much research as possible in order to find the least restrictions and limitations as well as a fair loan rate. You can sign up with a number of sites that offer high risk car loans, but you must read the fine print to be sure you will not be paying any unexpected charges later on.

You can find sites that will offer you your credit score so that you can have that information at hand when the dealer runs your credit numbers through the hoops. If you have access to your credit score and you know it is 600, no one will be able to tell you it is a dismal 520 instead. You will have the proof in your hand, so when you find the car you want to spend some of your life with, you can negotiate a fair price with a high risk auto loan you got at another institution.

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Know Your Local Auto Finance Manager

Finding a good price on a new or used car can be one of the most challenging tasks you ever tackle. There is so much to consider when you are considering make, model and color. Price and finance options are the two things that the buyer can influence. If you are armed with the facts about your credit score and the financing options that are available to you, it can help you negotiate a more than fair price for the vehicle as well as get the best interest rates for your financing.

Buying a New Car

Now that you have decided which new car is to be yours, the dealer will sit down with you and discuss your finance options. It is always in your best interest to listen carefully and not be swept away by your new purchase when discussing finance options. If you are not hearing what you’d like and you are still determined to get fair financing through the dealership, ask to speak to the auto finance manager.

The auto finance manager will have the last say in what the dealership will offer the prospective buyer. The auto finance manager should be someone that has extensive experience in loan processing and applications as well as risk analysis. The auto finance manager is the one who will be making the credit decisions and if you can create a good rapport with this person, you will have the best chance to get the best rates that will be offered to you.

Money is King

Auto dealerships are in business to make money and the easiest way for them to do that is by taking your money by offering you less than stellar rates. They can offer you a financial deal that seems too good to resist and often it is. You must keep in mind when you are going into negotiation, the dealers and the auto finance manager want to make the best deal for them and you are the one who will have to make the best deal for your big ticket purchase.

What to Look for in an Auto Finance Manager

When you visit the new car lot, ask the dealer to introduce you to the auto finance manager. This will give you a sense of what you will be up against when it is time to hammer out the details. Look for an auto finance manager that is outgoing and has strong people skills. He or she should be courteous, helpful and well groomed. You will also want an auto finance manager that displays extensive knowledge about loans and seems to be fairly honest with shreds of integrity.

This description goes against what is usually assumed about car dealers and especially used car dealers. They are made out to be sharks cruising for prey. There are many car dealers and auto finance managers that are happy to give their customers the financing that their credit score reflects instead of trying to pull a fast one. Use your own common sense when deciding with whom to do business with and try to find an auto finance manager with whom you can come to a satisfactory deal for all parties concerned.

How to Apply for Online Auto Loan

Filling out an online auto loan application is quite the easy task. There are two different channels for an online car loan application which are either:

Directly to auto loan online company


Through an online auto dealership

Both of these ways of applying as well as the approval and transaction processes of are very simple and are convenient. With the first alternative even though you are not limited to the finance company the dealer is using and so you are likely to get a better rate since you are able to choose among several different offers. A loan through a car dealership is likely going to be more expensive than the first alternative but at the same time is a really simple and convenient process to let the online dealer handle the loan application for you online in the same time, which will then save you time as well as effort.

If you choose the first option for your online auto loan, you will have to apply for your at a few different lending websites. When you get these offers, you can then compare them by using an online auto loan calculator. Another thing that you need to do up front is check your credit profile to make sure there are no hidden surprises there. Just be aware that credit scores are prone to fluctuations. A relatively bad credit rating can easily change in as little as two or three years if you make your car loan payments on time. Then, when your credit score finally does bounce back, your car can be refinanced for much lower over all rates and costs. So if you are ready to get yourself a new or used car, a less than perfect credit profile should not at all stop you.

If you choose to take your car loan through a dealership, go online and be sure to check and see if there are any dealers that have the make and model that you are looking for and to purchase it online. As soon as you can find one, you can just then provide them with the needed information and they will immediately decide whether or not you can be pre approved. The best of these online dealers can even pass along your information to a dealer that resides in your area for final approval. You will then get contacted regarding the details of the loan that you would be available for.

Whether you want to finance your car through an online auto dealer or through an online lender the steps are pretty much the same for both:

1. Submit an online auto loan application to get pre approved.

2. The car dealer or online lender will instantly process the request.

3. A local car dealer or an online lender will call you and inform you of any other required documents that are needed to complete you finance approval.

4. Visit the dealer, select the car you want and drive it off of the lot!

Simple tips for online AUTO FINANCE

Getting good national car loan rates from an auto finance lender is not at all luck, but rather a skill that you should learn. There are good car loan rates available to you if you know the tricks of the trade and how to negotiate the best possible deal for yourself. Remember, you shouldn't be afraid or nervous when trying to negotiate for a loan from a national auto loan lender because you're going to be saving yourself money in the process. That should give the courage and motivation that you need to get the best possible car loan rate available. Follow these easy suggestions in order to guide yourself in buying a new vehicle and negotiating your car loan rate of interest.

Tip #1 Buy your car at the end of the month

Typically car dealerships have contests and the winner of these contests get a good prize, whether it be money or some other reward. Usually these contests are a month long, so at the end of the money the sales people are scrambling to make a sale despite the price. So, with that said, you should be able to negotiate a better price on your vehicle during these sorts of competitions. The lower the cost of your car, the better the terms you should be able to get for your car loan.

Tip #2 Have good credit

Now this could very well seem obvious to you, but everyone isn't aware of how exactly their credit can affect their car loan rate quote. If you have excellent credit, go buy a car whenever you want because you have the reason to be able to negotiate a great rate immediately. If you have poor credit however, work on rebuilding your credit by utilizing a subprime auto loan lender. While you will end up paying a higher rate, this is only temporary because after a year’s time you should be in a great position to renegotiate your rates.

Tip #3 Negotiate your national auto finance

When you talk to a national auto loan lender be sure not to allow them to have the knowledge of how much money you are capable of spending per month on your auto loan. If you throw out the highest number available to you then this is going to be the starting point for them and is exactly what you want to avoid. Instead, negotiate with them, knowing your limits though. There are always other car dealers and lending institutions out there. You should never ever accept the first offer you receive without trying to first get a better deal then what is presented to you.

These simple tips can help you on your way to financial freedom and grant you the ability to get you the car of your dreams without the struggle that most people go through each day.

Instant Car Loans Online

Owning a vehicle these days is a necessity of a modern day society since it saves time and cash apart from being convenient in tons of different ways. It's however not very easy to source the finance from your own pocket and the auto loan becomes inevitable. If you happen to be looking for cheaper financing for buying a car, instant car loan online is probably what you're looking for. Instant auto loans online enable you to buy any sort of car including the vehicle of your dreams.
Taking a loan through fast auto loans is beneficial in lots of ways. The loan is approved very quickly, within one working day. The borrower is saved from tons of paper work and time. You have this great luxury of comparing various different fast approval auto loans by applying for one online.

Another step that you need to take is choosing between the secured or unsecured versions of instant approval. The secured option comes with the collateral offered by the borrower. Any sort of property like a home or even the vehicle itself can be offered as collateral for your loan. You are able to take any amount of secured money depending on the equity of the collateral that you are presenting. What's more is that, the secured loan is more easily taken at a lower rate of interest. Even monthly payment durations are kept flexible to suit the person getting the loan.

Apply for Instant Auto Loans Online

Unsecured auto loans online do not require any sort of collateral, which makes the loan a risk free option for the borrower. The lender however, may end up asking for proof of your annual income and your overall financial position to be certain that payment capacity for the borrower is up to their standards. The loan is then offered at a higher rate of interest with smaller amounts of time for the payment duration. So the unsecured loan is clearly best suited for buying a low priced automobile.

In the case of having bad credit, you can still get yourself an instant car loan online without having too many worries. Just be sure to show the lender that you seriously intend on paying back the loan in a timely manner. Show him your monthly payment capacity in the form of your annual income or your financial profile and be ready for a sound payment plan.

Quick Car loans online give you easy access to required finances for owning the car of your dreams, but before settling for that deal, be sure to take note of the different aspects of it especially the interest rate that you are being quoted. Always compare the various loans that you are offered for the easiest terms and conditions that are you presented to you. Pay off the installments in time to avoid your debt.

Easy Auto Loans

Loans that you get for buying a car are called auto loans. There are two parties involved in auto loans usually, those being the lender and of course the borrower. The lender and the borrower then enter into an agreement where the lender agrees to give a certain amount of money to the borrower for buying a car of their dreams. The borrower has to then return the money with interest after an agreed upon period of time.

If you do not happen to have enough money to buy a vehicle, auto loans are an easy option for helping you buy the car without having to pay from money directly out of your pocket. It's simply just a form of credit by lending party of a banking institution.

You will of course need to pay back the easy auto loan on completion of the agreed upon terms. Payment amounts include your principal amount and the interest, which of course is the charge placed upon the borrower for being lent money. This charge is really the same as the Annual Percentage Rate or the (APR). You end up benefiting from low annual percentage rates because your monthly payment amount ends up being lower.

One other important thing to take into consideration while applying for an easy auto loan is to calculate the amount of money that you would like to borrow from the lender. You may of course need money for the down payment online or for down payments on the vehicle and fed additional monthly installments by chance. Plan out your needs in advance with a financial planner and then apply for the type of easy auto loan that you need.

Higher easy car loans mean liability for you to back them back with more interest. If you end up defaulting beyond the specified payment date, you end up paying extra interest, which also reflects poorly upon your credit rate. Again, interest rates end up being even higher if you have a bad credit profile.

You should be above the age of eighteen years with a minimum monthly income of at least two thousand dollars to qualify for an easy auto loan. Additionally, you will need to have an acceptable proof of your current residence and current employment.

You can also apply for a quick and easy car loan on the internet. This is usually the best solution. Online applications help you receive a loan sanction within just a few minutes and there is no need for you to step out to get the loan processed. It's a lot better to apply for multiple quotes online to get a really good comparative picture of the different landscape for auto loans, interest rates, payment periods, and more. Later on, you can then compare the quotes that you receive and then of course apply for the best easy auto loan that is available to you.

What are you waiting for?