Good Rates For Car Loans
Some advice when shopping around during the credit crunch
Good advice at any timeMany people do not realize that some auto dealers make more money on financing the car as they do selling the car. Many car loan shoppers do not realize that some banks do not like to lend money on an old car It's a good thing to do some Internet research, isn't it? Here are a few pieces of advice and inside information to use when shopping for good rates for car loans: • Consider shopping toward the end of the month. Most dealerships work on monthly quotas and you'll generally find salespeople more willing to deal. It's a two-fer when it's fall and you can get both end of the month and end of the model year closeouts • If you're looking for a car loan with bad credit, do as much work in repairing your credit score as you possibly can before shopping for a car loan. Don't be afraid to dispute negative marks -- by law if the credit bureau cannot prove the detrimental information, it must delete that information. • Credit is tighter, but it's not impossible. Rates for car loans have gone up (despite Fed rate cuts) but bad credit history customers have always paid higher rates for a loan. |
Good advice in these hard times• Be advised that most lenders want to see that you've been at the same job and the same address for two years. • Be advised you'll need a bigger downpayment than you did just a few months ago. Average car loan was for 88 percent of its value back in the summer; it's now 95 percent. • Your chances of getting approved GO UP if you shop in the range where banks are most comfortable to lend ($7,000 to $12,000 and at least 10 percent down). See the research on best cars for bad credit at AutoLoanCentral.com and you'll quickly see you can get a nice car for a not-so-high price. Loans in the $7K-$12K price range result in payments around $250-$300 a month. That's pretty manageable for most folks, which reduces the risk to banks and makes them more likely to lend. • If you're applying for a loan jointly, put the applicant with the best credit first. • In most cases, you will not be able to get more than one bad credit car loan at a time. • Be wary of any Web site promising 100 percent approval. We, for instance, only work with highly reputable lenders -- and there are just some folks out there who will NEVER get credit from a reputable lender. |
