Auto Loans Questions

Waiter holding a dish with a car on it
Jan, 18, 2012
One may ask them self what on Earth do these two things have to do with one another? Unless borrowers wait on tables themselves or make their income through tips in a different profession, the answer to that question may not be immediately obvious. However, to those whose primary income is derived from tips (an often unreported or underreported source), obtaining an auto loan proves to be no easy task. Since the full extent of tip wages is often not included on a waiter’s yearly tax report, their reported earnings tend to be far lower than what they actually earn. To a car loan provider, though, that matters not.  
Inspecting cars with magnifying glass
Jan, 11, 2012
There are several factors that go into making an educated analysis of a vehicle’s value: age, usage, condition, and additions should all be considered when determining the price of a car.  Age is Just a Number… Right?   The age of a car is important for getting auto loan borrowers into the right ballpark when pricing a vehicle. Generally speaking, if a car is older then it’s cheaper. Granted, there are exceptions: classic cars, restored cars, and cars of limited availability are the most notable examples. But for most cars, value depreciates as time progresses.  
A car with leaves covering the body
Jan, 10, 2012
While auto loans for hybrid vehicles are about the same as any loan for a similar-priced vehicle, hybrid owners may be eligible for various incentives or rebates that make purchasing an energy-efficient vehicle an attractive choice. In addition to incentives, hybrid vehicles can prove to be money-savers in other areas of auto ownership.  Current Incentives  
Lemon with wheels
Dec, 26, 2011
A lemon car is a vehicle that a consumer finds to be defective after purchasing it. In the event a buyer finds they purchased a lemon car, there are state-specific “lemon laws” that may require a car manufacturer to buyback the vehicle for the full cost of the consumer’s auto loan.  Spotting a Lemon  
Newspaper clipping with 0% financing
Dec, 20, 2011
Zero-percent financing deals are so appealing because they promise free money. But auto seekers need to realize that this type of car loan is too good to be true, as zero-percent financing deals come with comparatively enormous monthly payments and hidden fees.   Auto dealers capitalize on these hidden fees by allowing little to no room for negotiation on any car eligible for zero-percent financing. A salesman’s response will be the equivalent of, “Take it or leave it,” since dealers know they have the power when wielding zero-percent financing over borrowers’ heads.  
Fingers pinched indicating small size
Dec, 12, 2011
Borrowers have a variety of methods available to them in their quest to keep monthly payments on an auto loan to a minimum. There are pros and cons to intentionally reducing monthly payments but close consideration on all of the options can help borrowers with the decision.  A Lengthy Loan   According to a study by Kelley Blue Book, six out of ten borrowers opt for long-term loans when financing new cars.  
Blue car on a five dollar bill
Dec, 9, 2011
A borrower should refinance their auto loan if they will acquire lower interest rates or lower monthly payments. In the best cases, a refinance will produce both those benefits.  Interest Rates and Monthly Payments  
Car advertisement in newspaper classified section
Dec, 8, 2011
Car advertisements are riddled with promises of low interest auto loans and abbreviations for included features. Careful consideration is required when deciphering whether or not a particular advertised car is the right one for you.  Low Interest Car Loans  
Sign with options of good choice or bad choice
Dec, 2, 2011
It’s not uncommon for a parent to co-sign on an auto loan for their children. But co-signing doesn’t just lower interest rates and assist in helping an applicant qualify for a loan—it also puts the co-signer at risk. Given those risks, it’s wise for a co-signer to know his or her responsibilities and rights. Co-signing on a loan is simply the act of saying, “If the borrower defaults, I will cover his loan.” Co-signing alleviates risks lenders take on when granting loans to borrowers—particularly borrowers with bad credit or little credit history.
Scale with a car and stack of money on either side
Nov, 21, 2011
After you’ve found your dream vehicle and sit down with a salesman in his office, you’ll be asked a seemingly straightforward question: Do you want to buy or lease this car?   In order to provide an educated answer, it’s important to understand what each of these options entail, and what the long-term results for each are.  Leasing a Vehicle   When leasing a vehicle, you make monthly payments to the dealership in order to essentially rent the use of their car out. As a result, you never actually own the car.