25 Car and Auto Loan Tips

No. 26 Bad Credit Auto Loan - Improve your Credit Score VII

Before you go off and get that bad credit auto loan, are you thinking of improving your credit score first? That’s not a bad idea at all as a better credit score means better auto loan interest rates. Here's a tip, if you find an error in your credit report. Send your complaint during the holidays (e.g., Christmas). During this time, the credit bureau is too busy to get into some real investigative reading the 'happy' season makes them more lax in checking.

No. 27 Used Car Loan - Using the Internet

Before you go shopping for a good used car loan lender, shop for your used car. The Internet has a wide selection of new and used cars that are available for sale. Searching for cars on the Internet is easy and convenient.

It can be done in your home or office. Websites usually include specific searches by providing them with your ZIP code or providing them with the city where you are looking to buy a used car. You can also find a wide range of information about the used car such as matters with insurance or whether the car has been damaged or recalled.

No. 28 Used Car Loan - Using the Internet II

We go online for so many things so why not for the second hand car you want to purchase using that used car loan you have in mind? Many people think that used cars need to be viewed in person because they are so unpredictable (i.e., they may have hidden faults). And while this may be true, many used car websites have insurance rates and comparison tables that you can use. Some websites also have links to companies that offer insurance.

No. 29 Shop for Car Loan Rates Online

You've heard it before, the key to getting the best car loan rates is to shop around. There are many sources for auto loans that will offer you the lowest rates possible. Places that you can get an auto loan from are banks, credit unions, or other financial institutions. You can research on these institutions on the Internet. Credit unions usually offer rates that are lower than that of banks. Some loans can also be approved even before you know what kind of car you're buying which is very important in most deals.

No. 30 Automobile Financing from Car Dealers

The perception is that automobile financing by a car dealer or car manufacturer costs more, but this is not necessarily true. Car dealers and manufacturers may be able to give you the best deal possible. Admittedly, these are 'hard finds' so the best way to get the best deal on auto financing is by comparing different deals that are available to you. The Internet has a wide range of choices for auto financing deals so that would be the best place to start your research.

No. 31 Auto Loans - Look at the Bigger Picture

Knowing what kind of a deal you're getting and knowing the 'numbers' involved is an important part of auto loans. When making a deal with dealers and manufacturers, not all numbers are definite. Interest rates and down payments can vary as well as the value of your trade in or the length of your loan. Interest rates on new cars are lower and can be financed over longer terms than used ones. So it is important to look at the bigger picture and not just focus on the lowest interest rates.

No. 32 A Look at Long-Term Auto Loans

It is easy to be tempted by long-term auto loans because then the amount that you pay monthly will also be lower. However, equity will take longer to build up the longer your loan is and so it will take longer for the car to be worth more than you owe on it.

Longer-term loans also mean that you will end up paying more in total for the car that you buy. And last but not the least, a long-term auto loan means it will take longer to re-sell the car and pay off the loan.

No. 33 Auto Loans - Ask Questions

There is absolutely nothing wrong with asking questions about auto loans when talking to a dealer, broker or loan officer. After all, it is your money that you are spending and you have a right to know everything about where you put your money. And after all is said, agreed upon and signed (only by authorized signatories of the lender!), make sure you that have copies of all documents as well as everything that you signed.

No. 34 Auto Loans - Beware of Dealer Scams

Always consider the reputation of the car dealer making a 'special offer' on auto loans. This is usually offered to first-time buyers, people who have bad marks on their credit, or senior citizens. Note that these 'special offers' do not mention the fact that they often ask for a large down payment or apply a high interest rate on the auto loan if you don't have good credit. And then, if for any reason you need to sell the car or you get into an accident, you might owe more money than what the car is worth.

No. 35 Bad Credit Auto Loan - Improve your Credit Score VIII

As part of efforts to get a better bad credit auto loan deal, see if there's absolutely anything you can do to improve your current credit score. First off, why not try and negotiate with your creditors? Statistics show that 9 out of 10 creditors will say ‘ok’ if you only ask them. Don’t be so fast in taking out cash advances in your credit card to settle bills from creditors. For one, most utility bills do not show up in credit reports anyway (unless those utility bills are sent to a collection bureau) so why use your credit card (which DOES show on credit reports) unnecessarily?

No. 36 Auto Loans - Beware of Dealer Scams III

Here's the truth about auto loans - interest rates are directly related to your credit rate. If your credit score is higher than 680 then you will get an auto loan with a low APR. If you have a credit rate lower than 680, you get a loan with a higher APR. So what's the scam that some dealers do? They lie about your credit rate. They say that you have a low score so that you end up agreeing to a loan with high interest rates. How do you defeat this scam? Get a copy of your credit report!

No. 37 Auto Loans - Beware of Dealer Scams II

Unfortunately, auto dealers can be one of the worst sources for auto loans. Here's a known scam - the "subject to loan approval" trick. Basically, a dealer gives you all the sales hype about this great auto loan deal you get from them. You sign the papers, take the car and drive off. Two weeks later, the dealer calls and says you did NOT qualify for the loan after all (i.e., not approved). So now a new loan scheme is presented to you with outrageous rates. Don't fall for this one, don't go driving off a car when your loan is in limbo.

No. 38 Auto Loans - Beware of Dealer Scams IV

First, let's get thing one thing straight - there are no 'points' in auto loans like in mortgages. So if the dealer mentions that you need to pay a couple of hundred dollars to, you know... "to lower your APR", the dealer is just plain scamming you. If you think about it for awhile, it is indeed absurd. If you paid cash for the vehicle or came in with your own financing (from another lender), the auto dealer does not generously offer anything like this right?

No. 39 Auto Loans - Beware of Dealer Scams V

If you have a bad credit score, you are probably better off looking for auto loans from a lender other than your car dealer. Auto dealers often pull the "you'll never get an APR lower than this" scam to uninformed bad credit holders. And because you DO have bad credit, you are more susceptible to accepting this seemingly generous offer. If you have bad credit, a quick online search will tell you the exact range of APR you are more likely to get for an auto loan.

No. 40 Bad Credit Auto Loan - Improve your Credit Score IX

Even if you are already resigned to the fact that you need a bad credit auto loan, it does not mean that you should not do anything to still improve your credit score. Every good point helps in lowering the auto loan interest rate! ‘Beef up’ your credit report by adding good information to it. You can do this by writing a letter to the credit bureau and giving them information about loans paid on schedule, salary increases at your place of employment, and more.

No. 41 Bad Credit Auto Loan - Online Sources

There is literally hundreds of financing institutions online offering assistance to bad credit holders. It’s not really surprising; many people have bad credit and by offering loans of higher rates to this demographic, lenders STILL earn a lot. Simply search for one online nearest your area and study a particular lender you like. Check out how big the firm is, how many it’s helped, its history and others. Most online lenders also have handy tools you can use like credit calculators, car buying guides, online loans applications and more.

No. 42 Get a Bad Credit Auto Loan via The Bank

Need a bad credit auto loan? Go visit your local bank. The advantage of going to your bank is that more often than not, they already know your credit history. So if you have a bad credit rate simply because you (really) forgot some payment deadlines (and not because you lack the funds), then financing assistance from your bank may be a better deal. Further, banks are known to offer the lowest interest on most auto loans.

No. 43 Get a Bad Credit Auto Loan thru Your Car Dealer

Is your car dealer offering a hard-to-resist bad credit auto loam? Sure, you can always get a loan from the auto dealer where you want to purchase your car BUT be aware of what you are getting yourself into. Often, you will be sucked in by seemingly low interest rates on auto loans only to find out that you will need to pay longer (more months!) or that the car price is higher than what was posted as the sale price.

No. 44 Bad Credit Auto Loan - Improve your Credit Score X

Improve your credit score before you go shopping for a bad credit auto loan. The best way to improve your credit rate is to start paying bills on time. Ask yourself if you can pay the minimum amount required on each bill you are currently getting within 30 days. If you can, then it’s just a matter of adhering to this schedule. If you can’t do this, then you should even rethink about getting an auto loan. Otherwise, you will end up not being able to pay the car loan and risk going into further debt.

No. 45 Bad Credit Auto Loan - Why the Car Dealer is a Good Option

Admittedly, there are many dealer scams out there. However, it IS possible that the car dealer is offering the best bad credit auto loan deal you've ever come across. This is because dealers benefit from the financing that car manufacturers have in place. Also, don't forget that as car dealers they do get the car at discounted rates from the car manufacturer so they are in a good position to lower the car's sale price and offer good loan rates.

No. 46 The Risks of an Auto Title Loan

An auto title loan is a loan wherein you have to surrender or provide the title to your car as collateral or security for a loan you wish to take. Before you engage in this type of loan, realize that if you do NOT pay on the agreed upon due date of the loan, you face the REAL risk of losing your car. After that, the lender can sell the car for whatever price without giving you any of the proceeds.

No. 47 What is a Refinancing Auto Loan?

A refinancing auto loan is when you get a new or second auto loan to pay off your current auto loan. Many of us may have been duped by a lender or car dealer into getting a loan with a high APR. By the time we realize this, we are already committed to paying the loan. But why suffer for long? If you can find a lender that offers a loan at a lower APR, pay off the first lender. You can literally save thousands of dollars with refinancing.

No. 48 The True Costs of a Refinancing Auto Loan

True, the thought of paying less monthly and the savings this brings drives many people to get a refinancing auto loan. Unfortunately, it is not as easy as that. For one, your current loan has a non-pre-payment clause, meaning you cannot end the loan earlier than the agreed end date. Otherwise, a penalty will be imposed. If this is the case, savings from refinancing auto loans may be greatly reduced so you are not really saving as much as you though you would.

No. 49 No Credit Check Auto Loans - No More Snooping Around

Many people are attracted to ‘no credit check’ auto loans. This is especially true if you have poor credit, bad credit or no credit history at all. If you have no credit history (which is the case for most foreigners) then these auto loans are great avenues for you. For those who have poor or bad credit – true, these loans are great options but be careful; getting a car loan on top of financial difficulties can lead you to further debt.

No. 50 Auto Title Loan - Money for an Emergency

An auto title loan is a loan wherein you have to surrender or provide the title to your car as collateral or security for a loan you wish to take. The main advantage of auto title loans is that you get cash fast! Because you are providing such collateral, lenders really have nothing to lose and so give you the loan / cash immediately. And if you are in a real cash emergency, these loans can be very handy indeed.

75 More Loan Tips

25 Tips To Help You Choose A Good Auto Loan - 25 Car and Auto Loan Tips Including How to Choose Your Loan And Knowing the Numbers

25 Car Loan Tips Including Online Approvals - Tips Include Understanding Balloon Loans And Loan Rebates

Tips on Auto Equity loans and Equity loan Habits - 25 Loan Tips Including Ensuring You're Getting The Best Rates