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Mon, Sep 26th - 10:31PM

What to Look For in a Pre-Owned Car?

Everyone wants to buy their own car. Congestion in public transport system and complete freedom with a personal car are the reasons why we absolutely need cars.

For buying a car, you need to have sufficient resources. Don't worry if you aren't born with a silver spoon, you can still own a car. There are several lending companies who will give you an auto loan.

There is no harm in going for used cars / pre-owned cars, if you do a thorough research. They are easily available with car dealers, leasing companies, auctioneers and private parties. You can get a plethora of information about pre-owned cars from classifieds in newspapers or you can also use the web.

Are you apprehensive of buying a pre-owned car? Are you worried whether the car was involved in a severe accident or not? Do you doubt that it was flooded?

Don't worry about all these things. There are several sites that offer appraisals for used cars. You can know the complete history of a car with the help of Vehicle History Report. You will get to know about the car's title records, car insurance, salvage records and accident history. Make sure that the vehicle has a clean title and no bank loan on it.

You should also confirm the Vehicle Identification Number (VIN) to know about the year, model and odometer records.

If you are still not sure about a pre-owned car, then you should buy a CPO (Certified Pre-Owned) car. Manufacturers certify that the car has passed all the essential inspection and also provide an extended warranty. This means you get a used car which is almost new and that too for a lesser price.

But be wary of dealers who issue their own brands of certification. When compared to manufacturer/factory certification, they seem to be a charade. This is so because you will be charged higher for the certification and there won't be much significant difference than a non-certified car.

When the dealer offers you a price, you must compare it with the market value. You can use the Kelly Blue Book value. The company is a pioneer in providing authentic information about car pricing and information. This will ensure that you are not paying more than its real value.

CRITERIA

When you decide to avail auto loans, your lending company will want you to fulfill certain criteria. So when you choose a car, make sure it does fulfill them.

Three to five years old cars are excellent when it comes to car loans. Your car shouldn't be older than 8 years. If it's older than that, there is no point in buying a car that goes the way of dinosaurs.

Your car shouldn't be driven for more than 65,000 miles. The lenders set a limit to determine whether the car is too old or not. Generally, a car more than 65,000 miles means the car is used for more time and its value has also depreciated.

Few lenders would also want you to have a stable job and a constant place of residence. You should be going for the same job for approximately 2 years. The same is required for your residence. Your income is also considered when you buy an auto loan.

Your credit score is also important as it shows your credit history and details about your debts and payments. A credit score less than 540 indicates that you will be paying higher interest rates.

Purchasing a car is an important decision. So, it is necessary that you accurately decide on the car and the lender. You can make use of the internet to search for lending companies. Do compare car loan quotes and select someone who offers you comfortable loan terms.

Hope you soon get a car of your own. All the best!

RapidCarLoans.net provides car loans at reasonable rates. We specialize in providing loans for used cars. Visit www.rapidcarloans.net to know more about the wide range of loans that we offer.


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Mon, Sep 26th - 10:29PM

Things to Consider Before Going for Lease Buyout Financing

In the fast lanes of life, no one can imagine living without their cars. You can easily drive your dream car if you lease it.

Your leasing company will also give you the option of buying the leased car. There are two kinds of car lease buyouts or payoffs:

1) Lease-end buyout (at end of lease period)

2) Early buyout (during the lease period)

Buying your leased car is always better than buying a used car from a dealer who is an absolute stranger to you. You know the car's history and if you have been maintaining it properly, then it is advantageous to you.

Also if you have surpassed the mileage restrictions and don't want to pay the exorbitant additional fees, buyout will be very useful.

For buying the car, you will need to avail an auto loan. But before that, it is essential that you consider few things. Prevention is better than cure, isn't it?

Read the document carefully

You need to be cautious while dealing in any financial matter. If your company doesn't allow an early buyout, it is not wise to go for it. The reason is that you will have to pay heavy penalties or extremely expensive termination fees. So, do read the lease agreement carefully.

The condition of the car

While going for lease buyout, carefully check the condition of the leased car.

If you have been maintaining it well, then you need not worry about it. But if the leased car has depreciated a lot, there is no point in buying it.

Understand the Purchase option price/Residual value

Your lease agreement will have a "Purchase Option Price" which is set by the leasing company. This is the price that you will have to pay if you decide to buy the leased car.

The price is set taking into account the value of the car at the end of the lease period and an additional purchasing fee.

Don't forget to see how your leasing company manages your payments. Few companies consider initial payments on the car as interest payments instead of payments on the principle. So, you may owe much more than the residual value.

Compare the residual value with the market value

You will be at the benefit only when the market value will be higher than the residual value of the car. You can determine the market value with the help of Kelly Blue Book or any other website that provides authentic data. If the car is valued lower than the residual value, then it will be better to end your lease and search for another car.

Negotiate for the price

Not everyone knows that the price is negotiable. The leasing company is also at the benefit with the buyout.

The company will gain from the buyout as it won't have to sell the car in an auction at a very lower price. It also buys the Residual Insurance which will pay for any difference between the price of the car and the residual value. So don't forget to make a good deal with the company as it not going to suffer in any way.

AVAIL EASY FINANCE FOR LEASE BUYOUT

Lease buyout finance is just as same as financing a used car. You can either choose auto dealership financing or go to any financial institution. You can also avail finance from several online financing companies.

The loan process is not much different. Lenders will take a look at your credit score and decide the interest rates at which you will receive the loan from them.

Now you are at benefit if you have a great credit score, but you can find a lender even with a bad credit history. In that scenario, you will have to go to someone who specializes in bad credit car loans along with lease-buyout loans.

Lease buyout loans are very easy to get. So if the lease period is ending and you really like the car, go for lease buyout. Avail easy car loans and drive your very own car.


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