Car Loans Guide

Buying new vs. used cars with your Car Loans..

2008-10-23T07:40:00.000-04:00

New vs used. Which car is right for you? Consider the following.

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.

New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?

The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.

Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax.

As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.

A used car is usually less reliable. You don’t know exactly what you’re getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.

If you can pay cash, go the new car way. Enjoy the feeling of knowing you're the original owner of a new car in mint condition. Nothing can replace that feeling.

Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.

About the author:
Mantius Cazaubon offers a guide geared towards helping you find the best deals on reliable parts and accessories for your automobile at Visit for auto parts savings.

18 Simple Ways To Save Money On Your Car - For a Better Car deal

2008-10-23T07:35:00.000-04:00

The upkeep of your vehicle can be quite an expense - from initial purchase to insurance to maintenance. And sometimes we get the sinking feeling that every time we need a car repair, we’re going to get taken for a ride. (pardon the pun!) Actually there are some ways to make sure you don’t get a raw deal when dealing with a local body shop.

After you get recommendations for honest mechanics, call around to check out the prices for certain jobs. It’s always smart to get a second opinion.

How about some preventative medicine? Keep your gas tank filled. This will help you avoid the gas line freezing up in cold weather. Also, driving on “fumes” allows little pieces of dirt at the bottom of your gas tank to run through the fuel lines with the last drops of gas. This debris clogs up the fuel filter and can cause carburetor damage as well.

Sometimes a problem with your car’s electrical system results from a simple blown fuse. Check to see if you have any blown fuses before investing in a tow truck!

Keep track of how much oil your car uses. A sudden change in oil consumption means you need to see a technician.

Save your brakes by having your brake fluid changed every 30,000 miles.

Check your tire pressure once a month. This simple maintenance check can add up savings at the gas pump!

Stop and go traffic causes excess wear and tear on your vehicle. Go ahead and give your car a nice twenty minute ride at 55 mph on the highway every couple weeks if you “major” in short trips.

There are other ways to save money on car expenses. Let’s look at the insurance payments.

If you’ve budgeted for possible out-of-pocket expenses in case of a car accident, you might want to consider increasing your insurance deductible to $500. This will lower the cost of your insurance.

Talk to your insurance agent. If your car is as old as the hills, you might want to drop collision coverage to save money.

Car insurance companies offer a variety of discounts. Ask your agent if the company offers reductions for driver training courses, anti-lock brakes, car alarms, air bags, mature drivers, good students or maintaining a good driving record.

Before you purchase from a dealer, ask about the dealer's return policy, get it in writing and read it carefully. Dealers are not required by law to give used car buyers a three-day right to cancel.

Visit http://www.fueleconomy.gov to find cars that are fuel efficient.

Each 5 mph you drive over 60 mph is like paying an additional $0.10 per gallon for gas.

In most cases, using cruise control on the highway will save gas.

Replacing a clogged air filter can improve your car's gas mileage by as much as 10 percent. This isn’t going to cost you an arm or leg either.

Do your homework when buying a car from an auction. Many vehicles that have been damaged by floods and hurricanes are going on the market. These won’t last long – leaving you with a flood of bills. Be a little concerned if the carpet looks too new, and check carefully for signs of rust.

Carfax.com shares info on inspecting a used car to make sure you get the best deal.

If you use your car for business, keep track of miles traveled so that you can use this for a tax deduction. Get more info at irs.gov.

When you consider all the ways you can save money on your current vehicle, you might be persuaded to put away the extra each month for a new car down the road!

About the author:
This article provided courtesy of

Car Loan Options for People with Bad Credit

2008-10-23T07:34:00.000-04:00

Internet surfers with bad credit looking for an auto loan are bombarded with advertisements most days. Many of these ads are truthful in their bad credit auto loan options. However, there are many things to avoid, and this article will describe some of those.

Directly financed auto loans for people with good credit are a bit different than those with bad credit. People with bad credit are expected to pay more of a down payment as well as a higher interest rate on their auto loans. Many creditors won’t even extend an auto loan to those with bad credit. Depending on how bad someone’s credit is, auto loans can range from a 20 – 50% down payment requirement, interest rates from 5-26%, and amortization (the length of the loan) anywhere from 2-4 years.

This may sound like a lot of bad news for bad creditors looking for an auto loan. But with some good planning and foresight, these auto loans can actually help people with bad debts rebuild their credit history.

The worst situations in bad credit auto loans show up when car dealers artificially inflate the pricing or interest rates on their cars. Auto dealers who specialize in bad credit loans will take a car normally selling for $5,000, inflate the price to $8,000, take a $2,500 down payment and then finance the purchase at 24%. Now the bad creditor will be in debt to the auto loan company for an inflated price that isn’t indicative of the vehicle’s real value. A way to counteract these types of sneaky bad credit auto loan dealers is to check the value of the car you are looking at, first, and then only pay $200-500 extra then what’s listed. Only in exceptional circumstances would you ever pay more than this for a car.

Two different ways of selling a car have emerged recently with the new, Internet economy. The first is called the ‘dealer network system’. Auto purchasers can get a loan regardless of their bad credit history with this option. Essentially, a potential customer looks at a car on a website, and then answers some basic questions if interested in buying. This information is then passed along to a dealer specializing in bad credit auto loans. Since there are no fees involved, this can be a real boon for the bad creditor looking for a decent car loan. However, with this system, there is no way of researching the auto dealership you are about to do business with.

The other new option is called an application service. In this situation, a person with bad credit applies online for an auto loan, and the financial information is then sent to multiple lenders at the same time, with the hope that one or two will be willing to take the credit risk. If the system works, several dealerships with fight for the customer, using price and convenience as their selling points.

About the author:
For more more information about auto loan options please visit

Auto Loans: Don’t Dig a Money Pit in Your Garage

2007-07-18T22:27:00.000-04:00

Choose the wrong auto loan and you might drastically increase the chances of defaulting and losing your car. Find out step-by-step how to avoid a money pit. Car loans are certainly less costly than home mortgages, student loans, or other kinds of loans. So why do so many people end up defaulting and losing their cars?

Find out these hidden dangers:

Biggest Hidden Car Loan Danger:

The Inherent Money Pit Unlike home mortgages, student loans or other big-ticket loans, car loans are inherently money pits. A house can build equity; higher education can increase earning potential; even jewelry can sometimes be re-sold for as much as was paid for it. If you borrow to buy one of those things, you may eventually get a return on investment. But every single car loses significant value and keeps losing it as time goes by.

Solution: spend as little on your car as possible. Of course, in order to spend as little as possible over the life of the vehicle, you need to get a well-made, fuel-efficient car, rather than the one with the lowest price on the windshield. But a pickup truck, SUV, sports car, or "luxury" model is a guaranteed money-loser. Don’t worry about what other people will think.

Think about it: when was the last time you saw an expensive automobile and thought, "I really like and respect whoever owns that!" The best buy? Many economists actually recommend buying a used car that's a year or two old. That way you can actually benefit from the fact that cars only drop in value. Even a car that’s just six months old may offer you a substantial savings.

Just have it inspected thoroughly so you don't lose what you've saved on maintenance payments. Hidden Car Loans Danger: Dangerously High Monthly Payments Unfortunately, most people never figure out the total cost before signing on the dotted line. They end up staying up late at night trying to figure out how to make ends meet. They live in smaller houses.

They skip going out at night. They don’t go on vacation. All that sacrifice to have a brand-new SUV in the driveway! Take a hard look at your finances, and figure out how much you can pay total each month for your car. Be sure to take into account insurance, tax, maintenance, and fuel. Usually, when people actually do calculate the total monthly cost of the car they’re considering buying, they’re amazed by how high it is.

How Much Car Debt Can You Afford?

1) Make a list of your average monthly non-car expenses, and subtract them from your earnings. -___your monthly after-income-tax income -___any other taxes -___housing (including any fees and property taxes, and utilities) -___food -___health insurance or HMO -___life insurance -___debt payments -___401 (k), IRA, or other long-term savings -___short-term savings -___telephone, cellular phone, cable, internet, etc. -___entertainment and fun stuff (be honest!) -___cost of yearly vacation(s) divided by 12 -___other expenses = ____what you can spend on a car

2) Subtract your monthly car-related expenses from the amount you have left over from your other expenses. ___What you can spend on a car (from above) -___Amount you’re spending per month on gas (raise or lower this figure depending on whether you are getting a car with higher or lower gas mileage). -___Monthly maintenance (remember: your new car won’t stay new long, so maintenance will be an issue). -___Monthly insurance (remember that for a new car, your insurance premiums may go up). -___Tax. = ____ Maximum monthly loan payment.
Now plug the number above into a vehicle loan rate calculator to figure out big of a car loan, and how much interest you can afford.

Final Hidden Auto Loan Danger: Unnecessarily High Rates If you simply take the first loan the dealer offers you, you are probably paying too much. Do some comparison shopping on the internet, and bring a list of the best loans with you when you negotiate loan terms with the dealer. Don’t let the dealer cheat you by shifting the cost from the car loan to the car price to the deal on your trade-in. Make sure you get a good deal overall.

Congratulations! You now are far better prepared to stay out of an auto loan money pit than the vast majority of car buyers.

About the author:
Joel Walsh is a regular contributor to Auto Loans :http://cars-auto-loans.com, where he writes about how you can get the best car loan

Used Car Loans

2007-07-18T22:26:00.000-04:00

Want to buy a used car but just don't have the funds sat in your bank account? If so, why not consider taking out one of the many used car loans available on the loans market.

Used car loans are specifically designed by loans companies to provide used car buyers with a competitive finance arrangement through which to purchase a used car. Flexible loans terms are available from used car loans companies, as well as low APR deals suitable for used car purchases. Used car loans of up to £20,000 can be arranged on an unsecured basis, with loans companies offering higher loans amounts if security is supplied.

Advance plan your used car loans

When buying a used car it pays to do some advance planning and arrange your used car loan ahead of the search for a used car. There are many loans companies out there offering loans for used car purchases, so it makes sense to shop around to get the best loans deals for buying a used car. Look for car loans that are flexible to your needs and offer a low APR, so your monthly used car repayments on any loans taken out won't be sky-high.

As with all types of loans, you should first determine how much you can afford to borrow on loans to buy a used car. Loans calculators are available on the Internet and can be used to calculate loan and repayment amounts in accordance with different APRs. It is important to take into account other financial commitments too, including other loans, when calculating the loans amount that you can comfortably borrow to purchase a used car.

If you intend to buy your used car from a used car trader where they offer car loans / finance for their used cars, then do make sure that the loans deal you sign up to is better than the loans deal that the used car trader can offer. The APR rate is the critical thing here. On car loans tailored for used car purchases the APR rate - i.e. the rate of interest you'll pay on top of the used car purchase price - can be as low as 6%. Finance loans deals through used car traders may have a higher APR, so pushing the total cost of buying a used car up to an unacceptable price.

One final thought. When negotiating the price of a used car with a trader, they may accept your lower offer providing that you take up one of their loans to finance the used car purchase. If this is an option then do check the terms and conditions of their loans carefully, paying special attention to the loans APR rate, as the savings from your negotiation on your used car may not be as attractive as first imagined when you consider the final costs attached to their loans!

Get an Auto Loan the Smart Way

2007-07-18T22:23:00.000-04:00

Did you know that most people pay hundreds or thousands of dollars more on auto loans than they have to? Get an auto loan the smart way. Read on.

Most people really get taken for a ride on their auto loan. Did you know that differences in the total cost of different auto loans can run into a thousand dollars or more? Here’s how you can get the lowest rate:

* Make a list of different auto loan lenders and their interest rates and terms, before you go to the dealer (the web is usually the easiest way to do that). Did you know dealers get a commission on the loans they refer? If you’re not careful, that extra bit of money for the lender could mean you pay a higher rate than you would if you got the loan yourself.

* Get a credit report and figure out your FICO scores. Removing any incorrect negative information from your report will help you get a better deal. Knowing exactly what your score is will help you figure out what interest rate you can realistically get.

* Have bad credit? Try going to your credit union, bank or another institution where you have a relationship. Lenders like to help out established customers. If your bank still won’t help, online "bad credit auto loan" lenders usually offer better less expensive loans than dealers who advertise their great deals for people with poor credit.

* Use a vehicle loan calculator. It will tell you what your loan will cost each month. It saves you the time of looking at vehicles you can’t afford, makes you aware of what information you’ll need to apply for a loan, and is a "reality check" of your financial condition.

* Comparison shop, comparison shop, comparison shop. You don’t get the least expensive car by choosing a dealer at random, and you won’t get the least expensive auto loan that way, either.

Start researching your options now:

Get credit reports and FICO scores here:
Use this vehicle loan calculator:
Comparison shop among these lenders:

About the author:
Joel Walsh is a regular contributor to Auto Loan :
http://www.cars-auto-loans.com, a website with information on car loan lenders, vehicle loan calculators, and other auto loan tools