Auto Loans Articles

Stopwatch sitting on gold background
Dec, 29, 2011
When trying to determine the best time to take out an auto loan and buy a car, two words should help consumers the most: “The End.” Car dealers grant their salesmen incentives to meet a series of quotas each month and each year. As a result, salesmen forego some of the sneaky profit-optimizing tactics they employ and instead just try to seal deals quicker by offering lower prices at the end of various cycles and quota deadlines.  The End of the Month  
The number 78
Dec, 15, 2011
There is an old method of calculating prepayment penalties on pre-computed auto loans (and other types of loans) called the Rule of 78s. Also referred to as the Sum-of-the-digits, both references receive their name from the sum of the digits 1 through 12 (1+2+3+4…, etc., all the way to 12)—the number of months in a single year.  What is the Rule of 78s?  
Toy car sitting on a pile of coins
Dec, 6, 2011
For many, car shopping is among the most miserable of activities. Looking for a new vehicle is a shopping activity unlike any other. It’s not as easy as walking into a mall and picking your favorite one off a shelf. Rather, the weasely car salesmen, haggling, games, and fear of being ripped off are all expected obstacles, and have successfully played a part in ruining the public’s vision of the car purchasing process.  
Two hands exchanging keys
Dec, 1, 2011
So you want to sell your car, but your auto loan is still outstanding. It’s not the most ideal situation, but it’s still very manageable and happens far more often than you may expect.  What’s the Remaining Balance on the Loan?   The first step to selling your car that’s still being financed is determining the exact dollar amount remaining on the loan. This is crucial, as it spells out exactly how much you have to make in selling the car.  
Bear trap with dollar sign as bait
Nov, 25, 2011
First they entice consumers with advertisements on car windshields saying, “We finance anyone,” and, “Bad credit welcome.”   They don’t even ask for a credit check or credit score. It doesn’t matter.   The Buy Here Pay Here dealer then collects a down payment and hands keys over to an excited new car owner.   Sounds like a dream to those who have bad credit and have struggled to obtain financing for an automobile. But this dream is one that often starts pleasantly, only turn into a dark, horrifying nightmare.  
Blue car in shopping cart
Nov, 21, 2011
When it comes to purchasing a used car there is no greater tool than education. While many car dealers and independent sellers are honest businessmen, the ones who aren’t make it necessary for all buyers to know their rights and to know what to expect out of a used car purchase.   How Will You Pay for Your Car?  
Stamped word showing "Rejected"
Nov, 9, 2011
When a buyer shops for a new car, some dealers may offer a type of financing called “spot delivery” or “spot financing.” Spot financing is one of those too-good-to-be-true terms in which a car dealer offers you a deal and lets you drive away with a car under the assumption that if you receive a certain credit approval (which will be determined after you leave) you may keep the car and receive the agreed-upon financing. But lenders slip through a loophole by having the buyer sign a disclaimer promising to return the vehicle if the buyer doesn’t meet the credit mark required for the deal he or she’s receiving.
Small toy car next to toy house
Nov, 7, 2011
Car loans are usually given with a lifetime of three, five or seven years. There are exceptions, but consumers often find themselves being forced to conform to the standard of a loan lasting no more than seven years. That short lifetime leads to high payments; but unlike houses, cars do not hold their value and instead lose their efficacy as collateral after just a few years. Car dealers and lenders know this, so they administer car loans with short lifetimes in an effort to collect on their money before the value of the car has deteriorated beyond the worth of the loan.
Keys sitting on stack of money
Sep, 12, 2011
New vehicles may lose upwards of 20 percent of their retail value as soon as they have left the dealership. As a result, many consumers choose to purchase a used car, which can offer a price closer to the vehicle's actual value. Obtaining financing a used vehicle is similar to financing new autos, although interest rates for used cars tend to be higher.
Row of dollar signs growing as arrow underneath goes downwards
Sep, 12, 2011
Each year, over 20 million car financing arrangements are made and signed – and not all buyers go through the process with excellent credit. Securing a car loan with bad credit, no credit or after a bankruptcy may be more challenging than doing so with a high credit rating. As a result, certain advertised incentives such as low interest rates during special sales may be unattainable. A less than perfect score, however, doesn't eliminate the opportunity for auto financing.