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Fri, Feb 24th - 3:03AM

Buying a Car from Your Neighbor is Easy with Private Party Auto Loans

Your cousin is selling his Impala that you always loved or you have found a perfect car on Craig's List. Your colleague is thinking of selling his Altima or your neighbor is putting up his Malibu for sale. You can now buy any car with private party car loans.

It's great to buy a car that has a history. Wouldn't you want to buy a car that has a story behind it? Private seller car loans will be useful when you purchase a pre-owned car from an individual instead of a dealership. This means a licensed car dealer is not involved. These loans were easy to get in the past but since the tightening of lending criteria, availing private party car loans has become a bit difficult.

Lenders are wary of financing person to person car loans. Why? A private party sale increases the lender's risk as there is no dealer to provide warranty after sale. Also, no repair services will be offered. There have been cases in which borrowers have fraudulently inflated the price of the car and got more than their car's worth. So, lenders don't want to risk their money by spending it on a risky proposition.

Don't you think this is harsh? Just because some random people committed frauds, you shouldn't be the one to suffer. I believe that if you have chosen your car, you must be able to buy it without any problems. If you decide, then no one can stop you. So, here are some tips that can help you get private party auto loans.

How Will You Pick Up The Tab?

When you are sure about buying a car, you must know how much you can spend on a car. In addition to the price of the car, remember to factor several other costs like State tax, Title and License fees, registration, insurance, fuel, maintenance, etc. If you think you can pay these expenses, then it is a right decision to get auto loan.

Make Sure you're Not Buying Pandora's Box

Many buyers gleefully purchase someone else's problem. The owner is selling you his prized possession and it is crucial that you find a reason to it. Also, you must be very alert when choosing your car. If you have seen your neighbor's car breakdown almost every month, then there is no point in thinking about it. If you have heard negative remarks about a car, you mustn't buy it.

Whenever you decide to buy a car, be assured of its quality. It is essential that the car is running well. Carefully check the car for any fault. Now, you shouldn't trust the seller to tell you all about his car. So, what you can do is get the car's VIN. There are several websites like Carfax.com and AutoCheck.com that help you check VIN. You will be able to know if the vehicle is salvage, stolen or recalled. After that, ask your mechanic to inspect the vehicle.

Knowledge Has It All

Once you are sure, it's time to search for a loan. You must know that as it is risky, lenders may charge a high rate of interest. But, you can combat higher rates by knowing all about this loan type.

Requirements

Bill of Sale is essential for any loan. So, make sure that you complete all the documents. It will validate your sale which will ensure the lender of a legitimate transaction.

1. You must be at least 18 years old to apply for auto loans. If you are not 18, your co-qualifier should at least be.

2. You must have a valid SSN.

3. You must at least earn $2400 a month. There will always be companies that will require less than that but this is the general average.

4. You must have been residing at your current home for more than six months.

5. You must be currently employed with your employer for at least six months.

6. The lenders also want that you shouldn't have any open bankruptcies.

When it comes to private party lending, lenders want your selected car driven for at most 80,000 miles. It shouldn't be older than six years. Your minimum loan amount should be $ 7,500.

How to Assure Your Guaranteed Approval?

The Down Payment

Whether it is private party or for that matter any other financing, down payment can really up your approval chances. When you make a down payment, you lower the loan amount. This reduces the lender's risk and so, he will readily approve your application.

Co-Signer

When you ask someone with a decent credit score to co-sign your loan agreement, lender's risk gets divided. If you don't make your monthly payments, the lender can hold your co-signer responsible. This ensures safety of money which helps you in getting your loan approved.

Will The Internet Help?

Internet has opened new vistas for Americans. Now, you have the option of availing auto loans without the leaving the comfort of your home. There are several websites that will cater to your needs. But, you need to be careful in selecting the company. It must be a reputed one and should be lending in your area as well. Check the security certificate also.

If you are a bit of cautious, then getting auto loans will be easy for you. So, don't wait anymore. Live your dream car with private party auto loans.

"Make the most of yourself, for that is all there is for you". - Ralph Waldo Emerson

All the Best!


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Thu, Feb 2nd - 12:35AM

Do not Be an Impulsive Car Buyer - Take a Well-Informed Decision with Car Loan Tips

Cars have changed our lives ever since the first car was launched. The entire America is head over heels for automobiles. But, cars are so expensive that you need a reasonable auto loan to buy it.

Buying a car is easy; getting the best loan rates is very difficult. The most awful scams occur when car buyers do not take an informed decision. So, it is essential that you understand all about car loans.

For getting a car loan, there are several options with you. You can consider traditional options like banks and financial institutions. If you want to get loans without leaving the comfort of your home, online lending companies is your best choice. All you have to do is fill a simple application form. The company will do the work of searching the most qualified lender for you.

Whatever lending option you choose, it is essential that you take a well-informed and well-thought decision. There is nothing worse than an impulsive purchase. Here are some car loan pros and cons to help you get the best auto financing deal.

THE CONS

Do not Leave Your Home Unprepared

Not everyone will con you. But, why take the chance?

Never, I mean never go to a lender/dealer unprepared for getting finance. It is smart to have some basic information before leaving your home. You must have a basic idea of what kind of auto loan you want. You must have answer to questions like, is there any major expense coming in the next few months? Can you really afford a car loan? Do you need a three year or a five year term? How much monthly payment can you afford?

When you have clear answers to such questions, you will be able to negotiate with the lender in a better way.

Most people get so excited for buying their dream car that they consider finance unimportant. But, you should not make the same mistake. First of all, prepare a budget. It will help you practically narrow down your search. Do remember to factor in registration and title fees, insurance costs, fuel and maintenance expenses, etc.

Also, know your accurate and current credit score. Lenders and dealers can fraud you by telling that you have a very bad credit score. There are several websites that just charge a nominal fee for your credit score. If you want to check your credit report, then freecreditreport.com is your answer. It will give your report for free, but not your score.

Do not Settle Without Shopping Around

Convenience is the buzz word today. We are ready to spend more if we are offered convenience and comfort. But, it does not mean lenders can rip us off in the name of ease. It seems very comfortable to get car and finance from one place. All work can be done in a single day itself. But, you must know that dealers often sell your credit application to other lenders and charge commission for it. This commission is added to your interest rate. So, it is essential that you shop around and get loan quotes from several companies.

If you will not shop, how will you know about the best deal? Buying a car is not like buying your Chinese take-out. It is much more important expense than that.

Make the most of your computer and apply on several online websites. You will be able to generate free quotes. These companies have online auto loan calculators which mean you will be able to compare the loan rates also.

Do not Sign Anything Unless You Are Sure

Your car will stay with you for next 3-5 years. You will be paying off your car loan for almost the same amount. So, you just cannot sign the contract without reading it thoroughly. Every word, every clause in the agreement should be very clear to you. If you do not understand something, ask your lender. Do not just sign the document because your lender said he is giving you the best deal. Read and make sure he is offering you the best.

PROS

Lower Your Loan Amount

A car is an expensive purchase. When your LTV is hundred percent or may be more than that, you are risking your investment. How? It is so because the chances of an up-side down increase to a greater extent. A car depreciates quickly and there is a possibility that over the span of time your cars value will be lesser than your loan amount.

You can decrease your loan amount by increasing the down payment amount. Also, a trade-in will help you. A lower amount will also give you the chance of getting a better interest rate.

Do the Calculations

You cannot believe everything the lender tells you. So, you must calculate monthly payments on your own. It is easy because online calculators are always there to help you.

Also, calculate the APR. The Annual Percentage Ratio gives you interest rate for a whole year, than just the monthly fee/rate. It will help you calculate loans with different terms on the same parameter.

Big Picture

Is a penny now better than a hundred tomorrow?

Many people consider present minuscule savings more important than a future treasure. They opt for a low down payment because it is easy very easy to manage. But, they do not consider that a huge down payment can help them save on interest rates.

Do not think low payments mean great loan rates. The lender may lower your monthly payments but extend your loan term. This will not do any good for you. There are several options with you. You can go for high payments, pay-off your loan early and lower the risk of up-side. If you are predicting a huge income source in future, you can go for balloon payments also.

Do Negotiate

It is a general misconception that loan rates are non-negotiable. People think lenders are doing favor by offering them loan. But, it is not so. You have the right to get the best possible deal. So, do not settle for what the lender offers you.

Do not only discuss the interest rates. But, let the lender know that you will not pay any pre-payment penalty. This will help you to refinance your loan, if you need to.

All these tips will make you better buyer. So, go ahead with this handy car loan guide, get the best auto loan deal.

Say good-bye to impulsive buying. Welcome, conscious car buying!!!

Ezautofinance.net not only offers the best auto loans, but also ensures that its customers take a perfect decision. Our wide network of lenders allows us to get you the most competitive rates. Apply now for instant auto loans on our website and enter the world of affordable lending options.

All the best!


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