Wed, Apr 8th - 10:28PM
Why Auto Loans are increasing Day by Day?
Finding an auto loan has become a piece of cake for American car buyers. It is quite evident from total outstanding auto loan amount for the fourth quarter of 2014. The amount rose to a record-breaking high of $886 billion. According to The Fiscal Times, the average loan amount has increased to $28,381 from $950 a year ago. Also, the percentage of new vehicles purchased with financing in the fourth quarter of 2014 increased by 84 percent when compared to the previous year.
What’s encouraging Americans to apply for Auto Loans?
Americans have returned to the automotive market and they are ready to shell-out money for their passion: The car. Here’s why:
• Expensive Vehicles
According to TrueCar.com, buying a new car or a used car has become very expensive. It costs near $31,000 to buy a brand new vehicle and a massive $16,800 for buying a reliable used car. Such high price rise has forced people to obtain car loans.
• Low Unemployment
According to Bureau of Labor Statistics, unemployment rate dropped to 5.5 percent. Lower unemployment rate has allowed Americans to shed their inhibitions. They are now willing to buy a car of their own instead of sharing it.
• Low Interest Rates
Even though the interest rates are slightly higher than last year, there are relatively low in comparison to previous years. According to the latest survey of Bankrate.com, average loan rate for a 60-month new car loan is 4.31 percent. You can obtain a used car loan for the same term with 2.65 percent in interest.
• Sub-Prime Loan Approval
Sub-prime auto loans are available to car buyers with credit score below 580. There is a large group of car buyers who fall under this category.
In the last quarter of 2014, there was a minor decrease in the share of sub-prime loans. However, the number remains still strong at 20.3 percent. Such a high number indicated the ease of getting a sub-prime loan.
So, these are the reasons for auto loan rise. If you are interested in buying a car, this is the best time to buy it.
Car Destination will help you in buying your favorite car by providing quick sub-prime car loans. The company is also a reputed name for obtaining used car loans with bad credit Apply now for quick approval.
Wed, Apr 8th - 10:27PM
Everything that you didn’t know about the Hidden Dealership Cost
Car is one of the most loved possessions of Americans. Car driver adore the four-wheeled beauty so much that they often make an impulsive purchase without considering the hidden costs. This impulsive nature gives dealers a chance to cheat car buyers. They add so many extra charges and fees without your notice and end up earning more, unnecessarily more.
Don’t let the hidden dealership costs ruin your car buying experience. Know everything about the real cost of buying a car.
• Vehicle Registration Fees
When you buy a new car or a used car, you need to register it with your local DMV office and pay vehicle registration fee. If you buy a car from a dealer, he/she does the work of registering the vehicle on your behalf.
• Sales Tax
When you buy a car, you need to pay the state sales tax. You must also consider several other local taxes levied by your city, county, etc. Usually, the dealers charge the sales tax from you and pay it on your behalf.
Both fees mentioned above are non-negotiable and inevitable for every car buyer. There are other questionable fees mentioned below:
• Dealer Preparation Fees
Dealer preparation fees are also called vehicle preparation fees and shipping fees. They are charged by dealers to cover the cost of preparing the car for a buyer. Dealers argue that they undertake a lot of work for making the car ready for the buyer. But, usually the work includes nothing but washing the car, removing protective covers from the seats and other such things. So, it is important that you negotiate this charge with the dealer.
• Advertising Fees
Advertisements and marketing are important for attracting customers. But, it is not necessary to charge customers heavily for it. Dealers levy advertising fee because they argue that it was advertising that brought car buyers to them. You can negotiate a lower price with the dealer to ensure an affordable car purchase.
• Documentation Fees
For a dealer, every car purchase comes with a significant amount of paperwork. So, dealers charge documentation fees or “doc” charges from car buyers. It is important to know that few states such as New York, California and Delaware have a maximum limit for charging documentation fees. While there are several states such as Florida, Kansas, Iowa, etc. that don’t have a limit. If you live in a state that doesn’t have a limit for the fees, you can negotiate and reduce it to make your purchase cheaper.
• Fees for Dealer-Installed Accessories
Dealers can add several unwanted expensive accessories such as aftermarket wheels, sound system, stolen vehicle recovery system, etc. and charge you for it. Make sure that you are paying for only those things that you need. Also, remember that you can obtain most of the accessories at a cheaper cost by shopping around elsewhere.
• Floor Plan Fees
Dealers don’t have all the cash that they require to buy vehicles. So, they obtain finance. Dealers charge floor plan fees and try to extract the cost of finance from car buyers.
So, whenever you set out to sign your contract at the dealership read everything and asks question regarding anything that raises an alarm. You can take a friend or a family member with you if you are feeling overwhelmed with the thought of negotiating with the dealer. Remember that signing without negotiation means allowing the dealer to take possession of your hard-earned money.
Car Destination - the bad credit auto loan expert will help you in obtaining dealership financing. It will also help you in obtaining instant no down payment auto loans. Simply apply on the secure website today.
Wed, Apr 8th - 3:22AM
The Right Way of choosing a Co-Signer for your Car Loan
What is the meaning of a co-signer?
He/she is as an individual who:
• Signs the loan contract with the borrower;
• Is obligated to repay the loan if the borrower does not make payments;
• Has the joint liability for making regular payments; and
• Has no right to the vehicle.
How is a co-signer different from a co-applicant?
A co-applicant(co-borrower) assumes the same responsibility as a co-signer but he/she enjoys the benefit of ownership. A co-applicanthas right to the car.
Who needs a co-signer?
Car buyers who do not have a strong credit application require a co-signer because he/she ensures the lender of regular payments and reduces the lender’s risk. So, a co-signer is often considered a boon by following people because he/she helps them in securing quick finance:
• Young car buyers with no credit history
• People with terrible credit score
• People with low income
• Car buyers with short employment history
• Car buyers with repossession or bankruptcy in the past
Is a co-signer needed for a “joint car loan”?
A car loan is considered a “joint car loan” if the following applicants are involved:
1. A primary borrower
2. A co-applicant or aco-borrower
If both the applicants have credit issues or any other financial problem, lenders make co-signing compulsory.
Who is eligible to become a co-signer?
Usually, parents co-sign car loans for their children. It is for this reason many people believe that the only criterion for becoming a co-signer is to be the relative of the borrower. But, it is a myth. Following are the criteria for becoming a co-signer:
• Preparedness to Co-Sign
Many people will be ready to inform the lenders about their willingness to become your co-signer. But, just an informal promise or a verbal agreement is not enough to become a co-signer. So, ensure that your co-signer is prepared to sign the loan contract and is willing to assume the responsibility of your car loan.
• Good Credit Score
A co-signer is required to have a good credit score. He/she must pay bills on time and have an experience of obtaining a variety of debts such as mortgage loans, credit card debts, personal loans, etc.
Usually, lenders require a co-signer to have a credit history of at least five years. So, make sure that you check the prospective co-signer’s credit history before talking to the lender.
• Ability to Repay the Loan
Lenders don’t allow anyone to become a co-signer. A person can co-sign your loan contract if he/shecan repay the loan. Your co-signer needs to submit the financial documents to the lenders so that they can check his/her financial situation:
1. Bank statements
2. Property details
3. Ongoing loan information
5. IT returns (if the co-signer is self-employed)
• Employment and Residential Stability
If your co-signer switches jobs frequently, lenders will consider his/her employment status unstable and reject your loan application. It is because lenders want a co-signer to have a stable employment.
Also, lenders require a co-signer to have a stable residence history. It is ideal if your prospective co-signer is residing at the same address for at least two years.
So, these are the criteria for becoming a co-signer. If your lender has asked to bring a co-signer, don’t forget to use them. It will help you in choosing the right co-signer for your car loan.
Don’t worry if you cannot find a co-signer. Car Destination provides special first-time car buyer program to help young auto buyers. To apply with the company, simply submit your auto loan request and the company will provide you with low rate car financing program.
Wed, Apr 8th - 3:20AM
3 Tips for obtaining New Car Loans
It is not the population statistics of an American city. It is the total number of cars soldin the month of July. What is the reason of such an enormous increase in car sales?
• Car manufacturers have started offering huge incentives on new cars and
• Lenders have relaxed the lending norms
So, if you are an ardent car lover, this is the perfect time to bring home your favorite car. Do not worry about high interest rates. You can obtain low rate car financing without any trouble. Learn the three most important tips for securing low rates on new auto loans.
1. Create a Car Budget
Cars are the next big purchase after a home. And, with the constant rise in car prices, it is very important to spend your money wisely. By creating a car budget, you will be able to manage your loan in a better way.You should start by listing down your monthly income and expenses. Ascertain the amount of monthly payment. You must decide on the loan term as well. It will help you in calculating the total car loan amount.
2. Plan for Down Payment
Down payment is ideal for a new car buyer because it lowers the loan amount and makes car buying affordable. Usually, 10% of the total car value is sufficient for making down payment. But, you can improve your approval chances by increasing the down payment amount.
Is it possible to buy a New Car without Down Payment?
Car manufacturers have made it easier for buyers without down payment. They are offering humungous incentives. You can use the cash incentives as down payment. This is the ideal way of making down payment without parting ways with your savings.
You can even trade-in your old car. Calculate the value of your old car and ask the dealer to reduce the same amount from the total price of your new car.
There is one more way of making down payment. You can apply for personal loans and put money down. But, make sure that you get affordable rates on the personal loan.
3. Obtain Quick Loan Quotes
Along with the manufacturer incentives, the current interest rate on new car loan is very low. To take advantage of this situation, you need to find a quick auto loan. So, don’t waste time in walking down to a bank or a lender. Apply online for instant quotes. Online bad credit low rate car financing companies have lenient lending criteria. Also, they believe in offering new car loans because new cars have longer life than used automobiles.
However, make sure that you approach a reputed auto financing company. The company’s web page should be secure. Check for “https” in the address bar while submitting your personal information.
Once you submit your loan application, the online auto financing company will analyze your financial situation and offer you loan quotes. This process won’t take more than three days. So, it is advisable to take help of online company for quick completion of the new car loan process.
Car Destination is a reputed online bad credit car financing company. American car buyers trust the company for securing instant approval and low rates on new car loans. Apply now and get ready for no obligation quotes.
Wed, Apr 8th - 3:20AM
These are the 5 Most Commonly Asked Questions about Instant Bad Credit Auto Loans
Magazines and newspapers publish car loan research studies daily. Each study tries to provide an instant solution to bad credit problem. Few studies may suggest you to seek help of a consultant while other smay advise you to pay off all your debts. But, freedom from bad credit problem is not very easy. It takes time because there are no instant results. However, there is an alternative for getting a car loan with bad credit history. It is called “Instant Bad Credit Auto Loans.”
What are the Benefits of Instant Bad Credit Auto Loans?
Here’s why instant bad credit auto loan program is beneficial for car buyers with bad credit problem:
• You can obtain quick car loan approval without any trouble of credit history
• You can get affordable interest rates and enjoy a fair chance of improving your credit score
• You can fulfill your car dream easily because the loan program is available across United States of America
Now that you have understood the benefits of getting instant bad credit car loans, it is time to move ahead. Let’s get answers to the most common questions that you may have in your mind.
1. How to get instant approval on bad credit auto loans?
It is very simple to get instant approval on bad credit auto loans. You need to be at least 18 years old for submitting the loan application. Your gross monthly income should be $1500 or more than that. Also, there should not be bankruptcy or repossessions in your recent past.
2. What should I do if my credit score is very poor?
Don’t take tension if you have a very poor credit score (i.e. your credit score is below 580). Instead, you should focus on convincing the lender. You can show copies of recent pay-slips or provide Employment Verification Letter to the lender. It will help the lender in judging your current financial situation. You can even get a co-signer or down payment to strengthen your loan application.
3. How much down payment is required for instant bad credit auto loans?
Down payment lowers the loan amount and so, it is ideal for car buyers. It is even better for a bad credit borrower because it manifests his/her stable financial condition to the lender. If you have bad credit score, you must manage a minimum of 10% down payment. Remember that if you increase the down payment amount, your approval chances will also increase.
4. Do I need to bring a co-singer for signing the auto loan contract?
A co-signer is not compulsory for getting approval on instant bad credit auto loan program. But, it is advisable to have one. If you have someone with a good credit score as your co-signer, the lender will have no tension of getting back his/her money. So, he/she will approve your loan request easily.
5. Will a dealer or lender approve my loan application?
Lenders and dealers have different approval criteria. Traditional lenders are very strict in approving loan applications. They don’t approve loan requests of bad credit car buyers. But, dealers have no problem in providing loans to people with troubled credit history. So, usually a dealer will offer you a bad credit auto loan quote.
Don’t worry if a dealer approves your loan request. It shouldn’t matter who approves your car loan application. You must focus on the loan details like the loan amount, interest rates, fees and penalty. It will help you in choosing the best instant bad credit auto loan program.
So, this is what you need to know about instant bad credit auto loans. I hope this article solves all your doubts.
If buying a car is your priority, let Car Destination help you in fulfilling it. Get low rate bad credit car financing with instant approval. Don’t worry if you have no money to make a down payment. Bad credit no down payment auto loans program is available for you.
All the best for your loan! Hope you get instant approval!
Tue, Apr 7th - 5:00AM
The New Car Loan Manual for People with Bad Credit History
We Americans are a tough lot. We don’t give up easily. So, why lose against bad credit without a fight? You can obtain a new auto loan without worrying about your bad credit history. Don’t think is a midsummer’s night dream. It is a possibility. And, to make it a reality, I can help you.
Let’s us learn everything about buying a new car with bad credit history. After reading this auto financing manual, it will become easy for you to obtain your favorite new car. So, let’s start.
The Market is in your Favor
Bad credit history is difficult to tackle but it is not impossible to defeat it. It is definitely a challenge but don’t consider it a curse. For coming out victorious in the car financing process, you must have a positive attitude. Also, remember that the market is opening up for sub-prime credit buyers. In Q4 2013, the market share for new vehicle loans in the non-prime, sub-prime and deep sub-prime credit tiers increased to 34.1 percent of all new loans, up from 32.8 percent in Q4 2012. This means consumers are getting access to several financing options with improved rates.
Create a Favorable Situation for yourself
Now you know that market situation is favorable for bad credit car buyers, you must take steps for making it even more promising for yourself. And for that, you must plan for getting easy approval on bad credit new car loan financing.
Step 1 - Plan your Car Budget
It is very important to create a car budget for buying a new automobile. It will help you in staying away from expensive car models. If you make a budget, you will avoid costly loan deals and reduce the chances of ruining your credit score.
Making a car budget is simple. List down all your incomes & expenses and calculate your savings for every month. After that, ascertain the amount of savings that you can spend each month on the car loan payment.
Step 2 – Review your Credit Report
Credit reporting agencies commit mistakes while providing credit reports. So, it is important that you check your credit report for errors. If you find any unwarranted transactions in your report, you must inform it to the respective credit agency and get it removed. It will help you in improving your credit score.
You must also check your credit score before applying with a new car loan lender because your credit score may have improved over time and you may be unaware of it.
Step 3 - Solve the Dilemma of Down Payment
To pay or not to pay the down payment – that is the question. Down payment is a really confusing aspect of new car loans. It reduces the loan amount and saves you from spending your money on interest amount. But, it doesn’t make sense to make down payment by taking a high rate personal loan. So, what should you do about down payment? Well, the answer is different for every car buyer.
If you have an old car, you can sell it and use the money as down payment. You can even trade the car and ask the dealer to deduct the old car’s value from the total cost of the new car. Another way to put money down is to use rebates and cash incentives of the new car as down payment.
Step 4 - Seek help of a Sub-prime Lender
When you have bad credit history, it is important to take help of a sub-prime auto lender. It is because they have the accurate idea of dealing with your situation. Also, they will be able to understand your situation in a better way and provide affordable loan solutions for buying a new car.
Don’t even commit the mistake of going to a bank because traditional lending agencies like banks consider bad credit score as a red flag. They won’t risk their money on someone with a sub-prime credit history. So,it is ideal to apply with an online sub-prime lender like www.cardestination.com as you will have the benefit of completing your car financing process even without leaving your home.
So, next time you dream of buying a new car, make it a reality with this car financing manual. And, do remember to take help of a reputed sub-prime auto lender.
Your search for an experienced and reputed sub-prime car financing company ends here. Car Destination is an online auto financing company that will help you in getting quick new car loans with bad credit history. Don’t about your poor credit history. Simply visit the website and get ready for fast auto loan approval.
Tue, Apr 7th - 4:59AM
Factors that Guarantee Instant Bad Credit Auto Loan Approval
“I want to buy a car quickly but have no money saved up for down payment. Oh! And I have bad credit as well.” - Jesse, Everett WA
“I desperately want to buy an automobile. My car spends most of its time at the mechanic. Can you help me get a car with bad credit? I need it quickly. Also, I don’t have the cash for down payment.” - Adam, Bronx NY
“My daughter is looking for a car loan. She has bad credit because she was unable to pay student loans. But, that is in the past. She got a good job and paid off all her loans. Plus, I can co-sign her loan. Can you help her quickly?”- Catherin, Texas
These are just a few people who are troubled by bad credit history. There are many Americans who are fighting bad credit every day. You can be like them and manage to get a car loan despite bad credit history. And, the good news is that you can get instant approval on your bad credit no money down auto loan application. Don’t think this is a dream. It is a reality.
To get instant approval on bad credit auto loan program, you must concentrate on the factors that determine your approval. If you can strengthen the factors mentioned below, getting a car loan will be a piece of cake for you.
• Your Income
Your income helps the lender in determining your loan repayment ability. If you earn a good income, you can make easy payment.
It is okay if you are earning a part-time income. What matters is that you should earn gross monthly income of at least $1500.
• Your Job
A regular job is very important for a bad credit buyer. If you can make regular monthly payments in the present, the lender won’t be worried about your bad credit history. So, before applying for a car loan, make sure that you have a stable job.
• Down Payment Amount
Down payment is a crucial factor for getting instant approval. It lowers the loan amount and ensures the lender of your solid financial condition. So, even though it is not compulsory, it is advisable to make down payment. It is okay if you have trouble finding cash for making down payment. Here are ways in which you can make down payment without any savings:
1. You can sell your old car and use the money for making down payment.
2. You can trade-in your old car.
3. You can ask the dealer to use your incentives and rebates as the down payment amount.
4. You can even use the equity from your home or other property and get a loan for making down payment.
5. You can apply for a small personal loan as well.
If you can manage to find someone with a good credit score and lower debt-to-income ratio as your co-signer, the lender will have no problem in providing you with instant approval. You can ask your parents, partner, friends or children to become a co-signer.
So, if you can take care of these factors, you can get quick approval. Remember that bad credit is not a curse, it is an inconvenience. And, you can get rid of it with proper planning and patience.
All the best for quick approval on bad credit car loans!