• Hints & Tips

    5 Expert Tips for Getting the Best Car Loan

    best-car-loan
    Your old car took its last breath and conked off. You’re visiting all the car dealerships and you’re looking for the best deal. Not a lot of people can just walk into a car dealership and afford to purchase a car straight away. Many of us need to get our financing and car loan organized to see within what range we can afford to purchase a car.

    If you don’t have your financing all sorted out, you may have to apply for financing from the dealership itself.

    You know what this means. The salesperson and the manager of the car dealership will try to get you to buy more services and additional features from them. You’ll hear convincing arguments and sales pitches about how that feature will be perfect for you – and how your life will be easier just by adding that one small feature to your car. Of course, only for a few dollars extra per month. The small amounts all add up when you end up paying for your car – and this post is going to tell you how to negotiate car loans so you come off on a better position while purchasing a new or used car form the dealership.

    • Never agree to the first price they ask

    Everything is negotiable. Car salespersons use very clever tactics of not revealing the actual car payments. They may word their questions like this. “How much are you looking to spend for your car?” or “What are you looking for your monthly payments to be?” These are tricky questions that leave you paying for more than you bargained for. They do this to see if they can base a price based on the amount you’re willing to pay monthly instead of the actual price. Negotiate the price.

     

    • Obtain short term loans

    A car is an asset that depreciates rapidly in value over the years. With new cars being released each year, you don’t want to end up paying for your car for more than five years because that’s just dropping money into a big, black hole. Car Dealerships will offer you lower monthly payments just by increasing the number of years on your car loan. You’ll also end up paying a lot more than what you could’ve purchased the car if you took a short term loan.

     

    • Don’t go for the extras

    Car dealerships will try to convince you to buy the extra add-ons and aftermarket items which are not essential and will raise your monthly payments considerably. These include rust proofing, gap insurance, extended warranties, car alarms and many more. They are useful but remember you’ll be paying more at a dealership. Shop around and look for better deals elsewhere.

     

    • Don’t agree to high interest loans

    No matter what your credit rating is, don’t agree to a deal which carries high interest rates.

     

    • Use your head, not your heart while purchasing a car

    It’s easy to get carried away with how beautiful it looks and what great features it has. Once you take it for a spin, you’ll probably fall in love with the car a lot more but you should be prepared to drop the deal if the car dealership is not willing to negotiate on the price. They are not doing you a favour; you are spending your hard earned money for the car. Don’t act rashly and regret your decision later.

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  • Hints & Tips

    Top 10 Ways to Get a Car Loan with Bad Credit in 2015

    Automotive exert, Brett Davis from BadCreditCarLoan.com.au has put together a great list of all the different ways people with bad credit can get a car loan.

     

    Getting a loan with bad credit is becoming more and more possible. In fact, there are a number of ways to secure a loan with a bad credit rating in 2015. Here are the top 10 ways to get a loan with bad credit.

    Bank account. Keeping your bank account up to date and avoiding negative balances is one method that will help. Finance companies will ask for your bank statements, at least covering the recent past. Even if you have a bad credit rating you can still possess a good-looking account. Preferably, this means keeping your income rolling into the account. If you can demonstrate that you can save, even a small amount every week or month, this will be highly favourable and will increase your chances of being approved.

    Payslips. Payslips are not only important when it comes to tax time and as a way to double check your boss is paying you correctly, finance companies will be very interested to see these. If you have a big bunch of them covering recent weeks or months, it proves to the finance company that you are capable of paying off a loan. It doesn’t matter if you earn a low income, or if you’re in casual employment, it all counts.

    Co-signing loan. If your credit rating is quite bad and/or you only have casual employment, getting a family member or friend to co-sign a loan agreement could be a good idea. Most finance companies will offer a co-signing agreement whereby a third party may sign on behalf for the loan. In this case, the third party is partly responsible for the loan and may have to make repayments if the original signee is unable to keep up.

    Credit card. Limiting your credit card spending will help out a lot. Avoiding missing payments if you can. If you have outstanding balances try to pay these off before applying for a loan. Once you pay them off the finance company will see that you are capable of making repayments. On the other hand, having a credit card and keeping it maintained will actually improve your credit rating, so long as you don’t go on frequent shopping sprees.

    Don’t over-apply for loans. Every time you apply for a loan your credit track record is checked. And every time you apply, it is recorded as part of your history. Banks are going to be reluctant to provide you with a loan if they see you have applied multiple times with multiple finance companies. This can be especially bad if you are rejected numerous times as banks will be looking into why you were rejected.

    Research. Use knowledge in your power. Do your research and understand different types of loans, including secured and unsecured loans, and become familiar with going interest rates. By knowing your stuff you’ll be able to assess what type of loan is best for you and you’ll be able to speak confidentially of what you want with a finance company.

    Know your budget. Sit down with a pen and paper and strategically work out how much you really need to borrow and how much you can pay off per week or fortnight. To do this, the best way to start is to write down all of your current expenses and frequencies. Once you figure out how much you are already paying to various bills and so on, then add in your current income and see what is left over. It’s always a good idea to factor in some savings every month or week. You can then present these facts to the finance company.

    Go for a short-term loan if you can. A longer term loan usually means you pay off a smaller amount every week or month but in fact the interest you pay is often higher. If you stick to a shorter loan you’ll be able to pay it all off quicker. This of course depends on how much you can afford to pay back with each payment. If you can do it successfully it will immediately give your bad credit rating a much-needed boost.

    Communication. Staying connected in 2015 is a given. The world is becoming more and more interactive. There are various organisations that you can talk with about your financial situation who can help you out. There are free counselling services available for some individuals too, depending on your circumstances. Speaking with a professional may give you some guidance, but also, a finance company may be interested to see you are actively trying to repair your bad credit rating.

    Honesty. Finally, always be honest. It’s a competitive market out there for finance companies, especially in 2015. The last person any finance company will want to deal with is somebody that isn’t being honest. This means revealing to them your finance issues and telling them how much you earn and how much you currently owe. The more honest you are the more likely a finance company will be able to provide you with the best assistance for your specific circumstances.

     

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