Car Buying Tips   -   How to Get A Car Loan
  • Our Car buying tips are from 35 years real experience
  • Get a car loans with bad credit with no down payments

How to Get a Car Loan

Do you need to buy a new or used car? One of the critical parts of buying this new car is how to finance it. Getting the financing for a car loan in many instances is more stressful than actually buying the car. If you have excellent or very good credit the process is quite simple. On the other hand if you are with the 73.5% majority of us and have bad credit, bankruptcy or a low credit score the bad credit car loan approval process can be quite tricky.

We are going to provide you with more than 35 years of knowledge and experience in the auto finance business which will help you navigate the treacherous waters of how to get a car loan and save thousands of dollars.

Understanding the different types of car loans Good or Bad Credit Car Loans

Car loans fall into two main categories:

  1. Excellent or good credit car loans. In today’s revised credit score system, this type of loan generally requires a credit score that would be 700 and above. Finance rates will certainly be in low single digits and manufacturer subsidized financing many times is your best option as they often offer 0% for terms up to 72 months but those longer terms should be avoided if possible. Examples of auto dealer financing would be captive auto lenders like Ford Motor Credit or Ally Financing for GM brands.
  2. Bad credit car loans represent roughly 68 to 72% of all the auto loans being approved today. To clarify one thing the term “bad” simply refers to a credit score range that really consists of scores below 650 all the way down to no credit score. We are going to guide you through how to get a car loan with bad credit or no credit. First thing you should know is that it is easier right now to get a car loan than it has been in the last 10 years.You’ve probably heard in the news recently about subprime auto loans are really growing. The reason for this is people who have bought a car in the last year or two have paid their monthly payments, which allow the banks to be more aggressive when reviewing your loan application. OK ready for the real information on how to get it done?If you are in the 2ndcategory, here are the inside steps to getting approved that dealers really wish you didn’t know.
    1. Determine what you can truly afford and not necessarily your dream car. We provide a great tool to do just that. Take a look at our free auto loan calculator. You can try all types of combinations with the car payment calculator that will show you what will fit into any budget. You should always know how much your monthly payment will be and don’t forget to include any insurance payment as well.
    2. This may come as a bit of a surprise for you but the best source for subprime auto finance are the car dealers who specialize in special finance. Why? If you went to a bank or credit union you have one shot. The bad credit car dealers have anywhere from 10 to 25 banks who specialty is making auto loans for bad credit people. So does it make sense you have a much better chance of getting approved with so many choices? I most certainly think so. You can use the security and privacy of the Internet to apply for a car loan online.
    3. Be informed about new or used car prices. It is very easy to save a lot of money by simply knowing what is reasonable especially when it comes to used car pricing. New cars are easy as you can find out exactly what the dealer paid the manufacturer for the car. Used cars are totally different as the local dealer determines what to charge for the car. All the more reason for you to be informed, after all it’s your money. We provide this great information here: new & used car prices. Once you are armed with this information, you won’t be taken advantage of when negotiating the price of the car. Hope you didn’t miss that last sentence; you can negotiate the price of your car and should always do so. You are never going to get the best price the first time regardless of your credit situation. If you happen to be trading in a car always check car values to ensure you are getting the best trade in book value for your car.
    4. Once you get the call from the dealer with the good news here are some tips on finalizing your deal once you select the car. Most banks require some documentation like current pay stub; this is to verify your income. You may also need a utility bill, phone bill and proof of insurance.
    5. Here are some final suggestions to ensure both a pleasurable car buying experience and yes save some money in the process. First you are always in charge. If you have followed the information above you are well prepared to negotiate your best deal. Make sure the car or truck you chose is what you want and not what the dealer is trying to sell you. After all you are responsible for making those monthly payments. If your finances permit, you will improve your chances of getting the best car loan if have a down payment. The lenders love to see that you have an investment in the automobile. It doesn’t have to be a huge down payment but it will lessen the amount of interest you pay over the life of the loan.
    6. If you need to get a bad credit car loan, you now have the confidence to get the best possible deal. Please remember just because you have to find a car loan with bad credit doesn’t mean you can’t get a great low rate. Don’t be afraid to ask about the many car finance options offered by the dealer.

Car Loans for Bad CreditWe have helped literally tens of thousands of people with bad credit, poor credit, no credit or bankruptcy get approved for car loans they never thought possible. Make the most of the opportunity the lenders are providing right now so you can buy the new or used car you really want. You can get approved today!

Car Dealers Specialize in Bad Credit Auto Loans

car financing for bad creditCar dealers in general don't have the public's greatest trust, second only to lawyers. When it comes to really needing help for instance when you might need an auto loan for bad credit, your local car dealer is your best choice. As you will see below they can provide services for special finance situations that you can't get through a local bank or credit union.

 

Getting on the right track can all start by working with the dealers in your local area who has seen and helped people in a similar situation as yourself. For example if you live in Michigan and have a credit score of 520 or less, it will not make sense to go to a auto dealer that helps people with a 620 score, right?…More at Finding Car Dealerships For People's Bad Credit Auto Loan

The article above was a very example of customers in Michigan who couldn't get proper financing for a car loan anywhere but through their local dealer.

 

More Reading

Typically, credit unions and banks avoid offering motor finance loans to individuals who have bad credit and even though they may consider an application for an individual with poor credit, they might charge an extremely high interest rate.

A lot of people have been affected by the current recession and also have ended up with a poor credit history which a couple of years ago could have prevented them obtaining virtually any loans.

I would say this author above overall had some really good ideas about how to approach this situation if you have some sort of issue with your credit history.

Also they confirm that although dealers get well deserved critical comments in some areas, helping you get a car loan with bad credit isn't one of them. I believe with 35 years experience that a new or used car dealer is the best source for multiple choices when it comes to financing and credit problems.

Humor is good for everything. Reverend Rob is a legend with his sense of humor. I hope you enjoy this as much as I do.

I hope you got a good laugh from Reverend Rob thing is most people don't understand that about 75% of us simply don't have perfect credit.

I am glad were able to let you know that although dealers always want to take your money, they do serve a useful purpose as the best single source to help you with a bad credit auto loan.

If our post has helped you understand better your options when it comes to financing or perhaps will give you the confidence to work with a local dealer then please consider sharing this information with friends and family in hopes they may also benefit from our efforts. Please feel free to use the buttons below to let them know about this information.

 

Breaking News:: Car Buying Tips – Current Car Prices Trends

Best New and Used Car PricingThis is a great time of the year to get the best new and used car prices as you will see below. There are some pretty exciting things happening right now which could ultimately save you thousands of dollars.

I think you are in for quite a surprise. In years past it was more of a game that most car dealers played when it came time to buy a new or used car. Now with the help of the Internet you can be fully prepared with incredible information on anything from what the dealer actually paid the factory for the new car or truck. In the case of used car prices you can know the most recent used car pricing as well.

Car dealers aren’t eager to share the lowest possible price with customers, and it can take some time to pay far less than that sticker price. Making an effort to research your car of choice’s blue book value, lifetime repair costs, and other details can help you make the most informed decision.

Use these tips to get a great deal from car dealers:

 

1. Arrange for financing before you go

2. Have your price in mind. 

3. Find out how long the car has been sitting in the lot.

4. Be assertive. 

5. Don’t fall for one-day-only deals. 

6. Shop during the last week of the month

…More at Snag Great Deals from Car Dealers – U.S. News & World Report (blog)

I agree with the tips above but do take exception with items 1 and 3. I say this because with more than 35 years experience in managing dealerships if you have stellar credit, which 74% of us don't then yes you should have your financing arranged but don't discount the fact the dealer may have factory incentives for financing as well. The other aspect that wasn't covered  in item 1 was, what if you don't have stellar credit. The answer is the dealer has far more lenders that will make a loan for you that you won't be able to find for yourself.

This writer did a great job overall but it is clear they have no first hand knowledge of dealer operations. Think about it, why would a dealer tell you a car had been on the lot for 3 months. I know they won't but other than that the information is pretty solid.

If you happen to be looking for a used car the review below will provide a lot of great information.

More Reading

Why used-car prices are rising so much – San Francisco Chronicle

A shortage of used cars - combined with higher demand from buyers who have lost a job, wrecked their credit scores or just become more frugal – has narrowed the gap between new- and used-car prices.

Since 2007, the average trade-in value of a 6-year-old car has escalated much more rapidly in percentage terms – and almost as much in dollar terms – compared with a new car.

The used car has risen by $2,124, or 33 percent, to $8,495. The new car has risen $2,434, or 9 percent, to $30,545, according to Edmunds. com.

Read more: http://www.sfgate.com/business/networth/article/Why-used-car-prices-are-rising-so-much-3886105.php#ixzz27R2cvzef

As you can see from the great resources above this is a great time to buy a car. It really doesn't matter whether it is new or used there are some fantastic deals to be had.

Here's a very funny video on buying a car. I bet some of you will feel like you have been there before.

Hope you enjoyed it. So do your homework and happy shopping.

If you have found this post to be informational and helpful, please consider sharing with your friends and family with our buttons below. We would love to save them some money as well.

 

 

Car Buying Tips – Advice on How to get Car Loan with Bad Credit

Car Buying Tips for Bad CreditSo it's finally time to buy a new or used car but you have bad credit or a low credit score, what do you do about financing?

When the economy took a nose dive in late 2007 it was almost impossible to find a car loan with bad credit or a credit score below 750. Over the last 18 months or so those car loan lenders have come back strong even lowering their rates.

There hasn't been a better time to buy a car with bad credit in the last 4 1/2 years. There is some good news. I came across this site http://zavod-vetraz.com with some pretty good tips for people that may have less than perfect credit which currently represents about 74% of the US population of car buying age.

[Read more...]

Advice on How To Get a No Credit Car Loan

How to get a no credit car loanIf you need advice on how to get a no credit car loan the information below is well worth reading.

Times have changed, lenders have changed and requirements to get a bad credit car loan have improved greatly already this year and there appears to be good news for no credit customers on the way.

Lenders who provide car financing for people with bad credit or [Read more...]

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