Fast Auto Loan Approval can help you in bringing Home your Dream Car this New Year

The year is ending! Why not end your car loan woes with it? Apply with Fast Auto Loan Approval to welcome your dream car at lower rates and comfortable loan terms.

The online auto financing company is a leader of the sub-prime financing market. Don’t worry if you have bad credit history or past bankruptcy. Fast Auto Loan Approval will help you in obtaining low rates, easy approval and a better deal.

To obtain the multiple benefits offered by the company, simply submit your contact details and information about your financial background. The company will understand your car loan needs and provide you with best loan quotes. Apply now.

The 20/4/20 Rule of Car Loan Shopping

Car - The Only Eternal Love!

When it comes to cars, every American feels the same emotion of love. But, your emotion should not rule you during the car buying process. If you don’t consider your financial capacity, you may end up ruining your life. So, before starting your car loan shopping, use the 20/4/20 rule and determine how much monthly payment you can afford.

What is the 20/4/20 rule?   

The rule consists of three elements that are essential for every car loan program. The elements are listed as follows:

1st Element) 20 - Down payment should be at least 20% of the total loan cost

2nd Element) 4  - Loan term should be four years or less

3rd Element) 20 – Total Monthly car expenses (loan payment, fuel, maintenance, insurance, etc.) should be 20% or less of gross monthly income

Here’s an example to make things clear. We will assume the following things:

a) Down Payment Amount = $ 4000

b) Gross monthly income = $ 3000

c) Monthly car expenses (excluding loan payments) =$150

d) Interest Rate = 4%

The 1st element (20% down payment) tells how much you can afford to spend on a car. As you can manage down payment of $ 4000, you can afford a car of $20,000 ($4000/20%).

The 2nd element just tells you that the loan term should not be more than four years.

The 3rd element informs that your monthly car expenses should not be more than 20% of your gross monthly income. Your gross monthly income is $3000, so 20% is $600 ($3000/20%).  You will have $450 in hand after deducting the monthly car expenses of $150 (excluding loan payments). $450 is the amount that you can afford to spend every month on car loan payments.

Using auto loan rate as 4% and loan term of 48 months (or 4 years), the maximum loan amount that you can manage is $19,930.

Hence, the most that you can afford to spend on a car is $23,930 ($19,930 + $4000 of down payment).

What are the Benefits of the 20/4/20 Rule?

The benefits of the rule are as follows:

>> It will help you calculate total down payment amount beforehand giving you enough time to make arrangements for additional down payment if required.

>> It will manifest the gross monthly income and provide a clear picture of your financial condition.

>> Finally, it will show whether you can afford a loan program.

Now that you know the benefits of the rule, apply it whenever you need a car loan.  It will help you in making an affordable choice.

Fast Auto Loan Approval will help you in obtaining low rate car loan. The company provides quick bad credit auto loan quotes without any application fee. You have full freedom of choosing the loan quotes because the company follows a non-obligation clause. Apply now and obtain the loan of your choice.

Use the Rule of 3-C to obtain “Good Car Loan”

America's love-affair with the car started in 1893 when Duryea brothers built the first gas-engine vehicle. Since then, the car has been one of the fundamental needs of Americans. Sadly, with every passing day, it is becoming increasingly difficult for Americans to buy cars. And, the reason for this problem is the high cost of cars. Today, cars are more expensive than what they used to be a couple of years ago. So, people don't have any other option but, to apply for car loans.

If you are desperately looking for a car loan, don't accept unaffordable rates and obnoxious terms offered by local banks, credit unions and dealers. Instead, search for "good car loan."

What is "Good Car Loan"?

It is a loan that provides comfort to borrowers and helps in making regular payments. The features of the loan program are as follows:

>> Less Lender Scrutiny

>> Less Documentation Process

>> Quick Loan Approval

>> Low Annual Percentage Rate

>> Customized Payment Schedule

>> Low Payment Amount

>> Quick Fund Disbursement

Who can obtain "Good Car Loan"?

Traditionally, the loan program was reserved for people with excellent credit score. But, today's online auto financing companies have no problem in providing it to bad credit borrowers as well.

How to get "Good Car Loan"?

To obtain the loan program, you must follow the rule of 3-C.

The rule of 3-C includes the following things:

1. Cash

Many car buyers choose to avoid down payment but, it is necessary to obtain "good car loan." If you can make down payment of at least 10% of the total loan amount, it will put you in a favorable light.

2. Current Income

It is okay if you were troubled by credit card debt or made a few late payments in the past. Lenders are interested in your current income and not your past credit history. If you have a regular source of income and can manage the loan payment effortlessly, lenders will have no problem in approving you for the loan program.

3. Co-Signer

Co-signer ensures regular payments to the lender and easy loan approval to credit borrowers. So, if you can manage to find a co-signer, you will be able to obtain the loan program without any trouble. But, remember that not everyone is eligible to become a co-signer. A person can become a co-signer if he fulfills the following criteria:

>> Good/Excellent Credit Score

>> Regular Source of Income

>> Debt-to-Income Ratio lower than 40%

The rule of 3-C is very simple yet highly successful in helping you obtain the loan of your choice. So, remember it whenever you need "Good Car Loan."

Fast Auto Loan Approval will help you in obtaining the “Good Car Loan” program. The company will also provide you with a wide number of financing options like bad credit easy approval auto loans and auto financing without down payment at affordable rates. Apply now and buy your dream car.

The “Lender Problem” - Meaning, Reason and Ways of overcoming it

Mr. Smith was in a hurry to reach his office, but his car would not start. He checked the engine and concluded that there was no mechanical problem with the car. Suddenly, he realized that it was the "Lender Problem."

What is the "Lender Problem"?

A car is suffering from the "Lender Problem" if the lender has disabled it because of the following reasons:

>> Car driver was falling behind on payments

>> The car was leaving the pre-approved driving area

How do Lenders disable a Car?

Lenders use a GPS-based device called ignition kill switch to stop a car from running. The device is a simple starter-interrupt switch that allows the lender to immobilize a car from a distance. He can simply use a computer or a smartphone to stop the car.

How are Car Drivers reacting to the Device?

Lenders have installed the device in approximately two million vehicles. The ignition kill switch has left car drivers outraged because it raises serious privacy questions. Following are the few problems caused to car drivers because of the ignition kill switch:

>> One Texan woman's car was disabled by the lender when she left the pre-approved driving area. She was not going on a trip or a vacation but leaving to seek protection at a shelter for battered (assaulted) women.

>> Bolender family of Las Vegas faced the same problem when they had to take their daughter to the hospital. The car would not start because the lender had disabled it.

Why are Lenders installing the Device in Cars?

Lenders give the following reasons for installing the device:

>> It provides security

>> It makes repossession easy

>> It reduces the risk and enables lenders to provide loans to people with very bad credit score

>> Many investors demand it from lenders as it increases the safety of their investment

Even though car drivers are feeling insecure with the installation of ignition kill switches in their cars, lenders claim that they don't disable the car without prior warning. If a car driver doesn't make payments after repeated warnings, only then the lenders make use of the device.

What if the Lender wants to install the Device in your Car?

If you have a sub-prime credit score, your lender may insist on installing an ignition kill switch in your car. But, before you agree to the installation, check whether the use of the device is legal in your state. For example, Wisconsin has banned its use. You must also apply with other lenders to check whether you can avail an auto loan without installing any device in your car.

If you have no other option but to agree to the installation, you must discuss the following things with the lender:

>> In what circumstances will he disable your car?

>> How many warnings will be given before disabling your car?

>> Will you be permitted to take your car out of the pre-approved driving area during emergency?

How to overcome the "Lender Problem" successfully?

Even if the lender installs the ignition kill switch in your car, you can avoid the "Lender Problem" by staying on top of payments. You can make regular payments by undertaking the following pre-loan application tasks:

>> Calculate car budget and ascertain a monthly payment amount

>> Make down payment to make your payments affordable

>> Save money to make payments in rainy days

So, this is how you can overcome the "Lender Problem" and drive your car without any worry.

Fast Auto Loan Approval will help you in getting quick auto loan approval at affordable rates. The company is a leader of the sub-prime auto financing market and will make sure that you get the best bad credit no money down car loan program at lowest rates. Apply now.