Buying a Car: Cash or a Car Loan?

Cash vs. Car Loan - When you decide to buy a car, one of the main decisions that you will need to make is related to the mode of finance. You can buy a car with your cash or with a car loan. Learn why a car loan will be a better choice when you look at the bigger picture.

Do you have a substantial amount of savings? Or have you received a large amount of money in the form of a gift? Do you want to use to buy a car? Many people believe that buying a car with cash is a good thing because it helps them to avoid car loans.

What are the Benefits of Buying a Car with Cash?

·         You can get rid of making regular monthly payments.

·         You do not have to worry about obtaining low-interest rates.

·         You do not have to pay the interest rate for a depreciating asset (car).

·         You do not have to worry about repossession.

·         You can sell your car quickly.

There are multiple benefits of buying a car with cash. But, is it advisable to do so?

Should you buy a Car with Cash?

Buying a car with cash is an option for those car buyers who have cash. Today, an average new car costs $33,560 and an average used car costs $15,900. An average American doesn’t have that much cash in hand to buy a car. Even if you have cash available, you should consider obtaining a car loan.

Why consider a Car Loan for buying a Car?

It is advisable to assume the responsibility of a car loan because of the following reasons:

·   A Chance to buy a Better Car

Cars are expensive and if your funds can only allow you to buy an older car, you could end up with a high maintenance vehicle. On the other hand, you can use your money for making down payment and buy a new car. Also, remember that making down payment of a substantial amount will reduce your loan amount as well as the interest amount.

·   A Chance to improve your Credit Score

Even if you are capable of buying a new car with cash, it is advisable to opt for a car loan. The reason is simple. Buying a car with cash will have zero impact on your credit score. Alternatively, regular payments on your car loan will improve your credit score and enable you to qualify for better interest rates in the future.

·   A Chance to buy Any Other Thing

If you use your cash for buying a car, you will not be able to use it to buy any other important thing such as a house. Instead, you can put your money into a savings account and use it to make down payment while buying a house in the future.

·   A Chance to safeguard your Future

Instead of spending your cash on a depreciating asset like a car, you can invest it and safeguard your future. You can opt for long-term investment and obtain 6-8% returns. When you compare the returns to 3-4% interest rate on the car loan, you will realize that choosing a car loan is the lucrative option.

Car loans have a terrible reputation because people tend to misuse them. If you took care of the loan responsibly and made regular payments, you will realize that a car loan will benefit you and help you buy the car of your dream.

Remember to always look at the bigger picture!

All the best!

Fast Auto Loan Approval is the perfect choice for obtaining online auto loans. Trust the company for providing you with stress-free bad credit auto loans without down payment. Apply now. 

Dealership Financing – Don’t be an Ignorant Bad Credit Car Buyer

Car shopping is fun but waiting for car loans isn’t. Many car buyers wait for months to get car loan approval. However, there is a way to complete your car buying and car loan shopping quickly. Dealership would certainly save a lot of time and save you the trouble of rejection from traditional banks and lenders. Don’t take tension of your bad credit score because dealerships have experience of working with sub-prime borrowers.

Although dealerships are available in almost every town and city, car buyers stay away from them. There is a constant fear of deception and fraud. But, you must understand that dealers cannot continue their business if they cheat customers. And, most buyers are cheated because of their ignorance. Don’t be an ignorant bad credit buyer. Know how to tackle dealership financing and emerge successful in the car buying pursuit.

What you need
 

Know your requirements. You should determine the kind of vehicle size and performance you want. Also, don’t just select one car. Keep two or three options with you. It will help you when your most preferred car is out of stock.
 

Don’t be Ignorant
 

Ignorance about credit score is the most common cause of dealership frauds. Dealers justify higher rates by explaining you about your terribly bad credit history. But, in reality, the truth may be different. So, it is very important to know your current credit score. Your credit score may have improved over the time. If you remain unaware of your credit score, you will give dealers a chance of offering you higher rates.

It is also important to do your homework before visiting the dealer. Prepare a budget. Calculate your debt-to-income ratio and ascertain whether you will be able to manage the additional debt. It will help in choosing the best bad credit dealership financing deal for you.

Be Clear not Desperate

You need a car, but your neediness shouldn’t reflect in your communication with the dealer. If he comes to believe that you are in desperate need of a car, he will provide approval at higher rates. He may try and sell you a disastrous car. So, make sure that you visit a dealership with a practical approach and not an emotional one.

Matters of Money
 

Don’t confuse the Maximum Suggested Retail Price (MSRP) and the sticker price. MSRP is the price that the manufacturer recommends the retailer to sell. The sticker price is the amount that the dealer is looking to get on the automobile. It includes the cost of the car plus the dealer’s profit.  Often, dealers list MSRP on the car as well as the sticker price. They manifest that the sticker price is lower than the MSRP and give you a feeling that you are getting a profitable deal.

However, you can negotiate the dealer for a price below sticker price. Tell them that you know about the manufacturer incentives offered to dealers. Most car buyers don’t know about this. But, you can ask the dealer to pass on some amount of the incentive benefits to you. Also, check for customer cash/rebate programs. Such programs will reduce the price.

Don’t get lost in Numbers
 

Many dealers believe that car buyers have the memory of a goldfish. So, they try to confuse you with numbers. They ask your budget and start confusing you with discount rates, MSRP, down payment ratio, interest rates, monthly payments, etc. Don’t fear this number-dumper.

When the dealer starts his number game, ask him to give you loan rates and everything else in writing. Also, ask for incentives. Go home and study them. You can use online car loan calculators to calculate your exact monthly payments and total interest amount. Take the decision only when you have considered everything in detail.

The Coin lying around
 

If you have spare money, you can use it as down payment for securing bad credit dealership financing program. Inform the dealer that you are ready to make a down payment. Tell him that you want the advantage of reduced price against it.

Don’t worry if you do not have cash to make a down payment. If you have an old car lying around, you can sell it and use the money. Another alternative is trade-in. But, do remember to calculate the resale value and trade-in value of your old car. This way you will be able to make use of your car in the most profitable way.

The Most Crucial Thing
 

Most importantly, don’t become relaxed after you get auto loan quotes from the dealer. You must analyze them. Many dealers let you believe that you are getting the most affordable loan program. They tell you how low your monthly payments are. But, you must not concentrate on monthly payments only. Calculate APR. It will show you the annualized cost of the loan. It includes the car loan amount, rates, plus other expenses. It will give you a better idea of the loan quotes.

If you are fine with loan quotes, concentrate on the loan contract. Check that everything you negotiated is there in the contract. Don’t believe anything unless it is in writing. If you have any doubt, clear them with the dealer. Sign only when you are fine with every term of the contract.

Remember that you will get the best bad credit dealership financing program only when you are calm and cautious. So, don’t worry. Go out there and buy the car of your choice. You are ready for dealership.

4 Easy Tips 4 Instant Auto Loans Approval in Washington State

Auto financing companies and car lenders in Washington often make a pitch for "Instant Auto Loan Approval". But, you should not apply without thorough preparation. Remember that if you plunge into the auto financing world without a proper plan, you will fail in your pursuit of instant approval.

It’s not very difficult to obtain instant auto loan approval in the Evergreen State. With just few tips and strategies, you will be confident of achieving your goal. So, without wasting any time, let’s start.

1. Myths about Credit Score

Many people are scared of their credit scores. But, credit history or credit score is not the only criterion for approval. Lenders consider several aspects of your loan application e.g. your income, age, employment, financial details, etc. So, don’t worry if you have bad credit history. Simply provide your income and employment details along with your financial documents. It will help the lender in ascertaining your stable financial condition.

2. Down Payment in Cash is not compulsory

Many experts of the auto financing field suggest making a down payment. But, it is not important if you have a good credit score. Lenders analyze your financial history. And, if they find regular payments in the past and current stable financial condition, they won’t compel you for down payment.

Also, down payment becomes less crucial if you are buying a used car. It is because used cars have low price and lower depreciation rate in comparison to new cars. In such a situation, lenders don’t have to undertake higher risk and thus, they won’t worry much about putting money down.

3. Trade-ins and Car Sale can help you

Now, you know that a down payment is not compulsory for used car. But, if you are buying a new car in Washington, it can very helpful. You don’t have to spend money from your wallet. You don’t even have to break your savings for down payment. Simply use your old car as down payment. Confused? Well, it is simple. You should ascertain the trade-in value of your old car. Your local dealer will be able to tell you that. Also, ask its sale value. In this case, you must not just rely on dealers. But, you can put it up online and check the response for your car.  If you are getting good price, sell it online and use the same money as down payment.

4. Co-signer aids in Instant Approval

It doesn't matter if your credit score is good or bad, additional help is always welcomed by lenders. A co-signer will help you in getting instant approval and affordable rates. The reason is simple. Lenders view co-signer as a guarantee of regular returns. They don’t mind if the co-signer makes monthly payments as long as they receive regular payments. Co-signer ensures the lender of safety and security. So, find a person with good credit score. He should be able to assume additional debt responsibility.

So, these are things that can help you in getting instant auto loan approval in Washington state. Remember that the key for instant loan quotes lies in increasing lender’s trust in your loan application. Increase his faith in your financial stability and your chance of quick approval will increase instantly.

All the Best!

Start your Preparation for New Car Financing in Texas NOW

“2014 Editor’s Choice: Best Cars”

“Top Picks for 2014: Best Car Models”

“2014 Best Family Car”

These are just a few articles on the launch of new car models. But, the publishing world (online and offline) is full of it. As the new cars were rolled in Austin and Houston auto shows, car enthusiasts started giving their car reviews. Almost every auto-related magazine has a panel of experts that judge a car model and declare it ideal or a dud. The reviews make car buyers ready for choosing the car. This is great, but are you really ready for the TX car loan that comes with the new car?

Are you ready?

Texans are known to be sweet, humble and hard-working bunch of people. And, when you have worked so hard for your money and everything else, you certainly don’t want it to go away. It is for this reason that you should think properly before buying a new car. Keep your financial status in mind. Calculate your monthly expenses and reach an approximate amount that can be paid every month as payment. Don’t opt for a very high number. This is because if you are unable to make a high payment, it will affect your credit score.

A car is the second biggest purchase after a home. Today, new cars are very costly. This results in higher auto loan amounts. It is not advisable to opt for longer loan terms because you may end up having an upside down loan. To avoid such a situation, you need down payment. So, start preparing for down payment as well.

Auto lenders will also check your financials and so, you need them to be solid. They will also require you to have a lower DTI (Debt-to-Income) ratio. So, make sure that you don’t have large mortgages when you are applying for new car loan in the state of Texas.

Are your Documents ready?

There is no point in being just mentally prepared for a new auto loan. It is also important to keep your documents ready. This way your loan process won’t lengthen unnecessarily. So, organize all these documents before applying online for TX auto financing.

1. Identification Proof

2. Recent Pay-Slips

3. Employment Verification Letter

4. Bank Statements

5. Mortgage Details, if you have any.

Are Lenders ready?

Last but not the least; the lending community should be ready to offer you a loan. It is obvious that you might not get approved in the first attempt, but you must at least be desirable by the lending companies.

Check your credit score and find out whether Texan lenders and dealers offer new auto loans for your score.

>> Remember that bad credit history is no longer considered bad but it can cause troubles. If you have a bad credit score, apply with a sub-prime auto financing company only.

>> If you have been in a bankruptcy, make sure that it is not a red-flag for the lender.

If not, are others ready to help you?

If the lenders are constantly rejecting your loan application, don’t feel alone in the Lone Star State. You can take help of a friend or a relative. Ask them to co-sign your new auto loan agreement. It will help the lenders in establishing faith in your application form.

That’s the end of “getting ready for a TX new car loan” list. Hope you will be able to judge your situation in better light and make preparations for the loan process.

So, Texans! Go get ready for your new car.

All the best!

3 EASY Steps for Poor Credit Car Loans with Low Rates

A rather unusual report by CNN Money says Americans avoid marrying those with credit troubles. Never has poor credit had such an impact on American lives! But, don’t worry if your credit report says “poor credit”. You can improve your credit and that too, while buying a car.

Don’t think it’s a far-fetched dream. You can definitely get a low rate poor credit car loan. And, affordable payments will increase your credit score. This way you will be able to repair your credit ratings.

Now, when your aim is low rate poor credit car loans, this article will help you. Just three simple steps mentioned in this car financing guide will prove to be extremely fruitful in your pursuit.

Simple Steps that guarantee Success

1. See your Score before you Shop

Even though you are very sure of your credit score, it is crucial to check it before starting any financing process. Do not worry about negative hit on your credit score because checking your own report doesn’t affect your ratings.

Benefits of checking your credit score:
A. It gives you the opportunity to make improvements by removing errors.
B. You can increase score by paying-off few debts.
C. As you know your accurate score, chances of any fraud become zero.
D. You can know the average auto loan rates that are available for your score. This will help you select the best possible car financing deal.

2. Unwise to Select a Car

Most experts will suggest you to search for a car at your nearest dealer. The logic is that it saves time after approval. But, you must refrain from doing so. It is because many lenders and sub-prime auto financing companies want their applicants to buy the car from a list of specific dealers. This means there is absolutely no point in choosing the exact car make and model. All your hard work will go down the drain. So, get approved for a poor credit car loan and then search for a car.

3. Online to avoid Lines

With the advancement in technology, the extremely tedious process of car loans has become extremely easy. You can get every kind of auto loan at the click of mouse. There are many online auto financing companies that offer poor credit car loans.

The benefit of opting for the online mode is that you can easily compare and calculate loan rates. Many car financing websites provide an online calculator to help you calculate accurate monthly payments and interest.

Ideally, you must apply with more than two websites. It will give you a better chance of comparing rates. This way will you will be able to choose the best rate despite a poor credit rating.

When you want low rates on auto loans, you must optimize your time. Spend it wisely on improving your credit score and searching reputed lenders. It will ensure that you get affordable rates.

Use these simple suggestions to uproot poor credit from your life. The problem of poor credit history can happen to anyone but these suggestions can help you deal with it. Start working on securing lowest rates on poor credit car loans and improve your score today!

Dealership Financing – A Perfect Car Buying Guide for Better Auto Loan Deals

It’s “Dealership Financing” and not the Devil’s Workshop. Many people detest dealership financing because of stories related to dealership scams. But, it’s one of the easiest ways of getting a car loan. The best thing about a dealership is that you get your car and car loan at the same place. You can certainly get better deals from a dealer if you are prepared for the car financing process. This article will help you prepare for a car loan from an auto dealership.

The SCORE

It is very important to know your credit score before going to the dealer. You must have heard about scams related to credit scores. But, if you know your accurate credit score, no dealer will be able to offer you higher rates under the pretext of bad credit scores.

The CAR

When you go to a dealership to select the car, test-drive is a must. You must check the Odometer for miles. Don’t buy a car with more than 80,000 miles because it won’t last long. Also, ask your trusted mechanic to inspect it. It’s always better to get expert opinion.

The benefit of dealership finance over private party auto sale is you get special offers. Many dealers offer extra warranty and cash rebates on car sales. If you are confused in choosing a car, you can select on the basis of offers.

M.S.R.P.

Most car buyers pay the MSRP or the list price. But, this is where they go wrong. You don’t need to pay the “Sticker Price”. This is because dealer’s profit is added to it. You can negotiate it and pay a lower amount.

The PAYMENTS

When you are done lowering the car price, talk about finance with the dealer. The salesman will concentrate on monthly payments and talk about lowest payments. But, you must look at the big picture. Consider the total loan amount and total interest. It is quite possible that lower payments for a long term will increase the total interest amount.

The CONTRACT

After car financing has discussed, read the contract. Don’t go for “spot financing”. Most dealers allow you to take the car without getting you approved for a car loan. It is quite possible that the dealer is unable to find a lender for you. In such circumstances, you will have to take back the car to the dealer. So, avoid “spot financing” and take delivery of the car only when the loan contract is signed.

Being cautious is the key while working with a dealer. If you follow the tips mentioned in this article, you will certainly get the very best of auto financing.

Fast Auto Loan Approval can get you approved for dealership financing. Lowest rates on auto financing deals even when you have bad credit score. Apply now and get ready to get best rates!