Auto Financing – Auto Refinance

If you have been paying your car loan for sometime, you can also refinance your car. And this can sometimes lessen the actual amount of money that you end up paying to your loan provider.  The most important consideration when refinancing your loan will be to make sure that all your payments are up to date. As this improves your chances of securing a refinancing deal from your loan provider.  Investigate the amount of the payoff, by getting in touch and asking your loan provider.

Make sure that you find out the actual loan payoff amount, and the easiest way of doing this will be to just ask your loan provider, they can helpful in this regard.  Your credit score is another matter that can influence your chances of getting a refinance package from your loan provider. Poor credit scores, makes it harder for you to secure a good refinancing deal. But there’s a way to improve your credit score by first paying off your credit card debt, and other minor debst that you might have piled up.

Comparing your current interest rates on your loan and the actual rates is another way of finding out if its worth refinancing your car in the long run. If the interest rates are lower than before you will end up paying less interest if you refinance your loan.  If you have a loan payment period more than 5 years, then you stand to benefit more by opting for loan refinancing than someone with a loan repayment period less than 5 years.

The newer the car, the better chances are that you are going to get a refinance. The point is, a new car has a greater value than an older car, so you will get much better terms for refinancing if your car is newer.  The other version of refinance is to find a new lender who will take over your existing loan. Aim for lower interest rates and benefits they offer, for example by joining the www.UnifyLenders.com.

In the next article, we will continue with auto refinance programs.

Auto Finance – Lease a Car

If you do not have money to buy a car, or want to drive a car that is beyond your financial abilities, or you do not want to get a loan, there is always a possibility of getting a lease.  But, what is a lease?

When you lease a car, you are in fact renting it, and paying monthly rent for it.  At the end of the lease, you return the car to the leaser, and you are also offered a chance to lease another car.  A lease agreement is not an economical choice as you pay a lot of money to just drive a car that will never be yours unless you can buy it.  A car lease lets you drive a new vehicle without paying a large sum of cash or taking out a loan.

To lease a car, you have to make a down payment, around 20% of car value on the market. Monthly payments are smaller if you make a bigger down payment.  A Lease has its negative sides. You don’t own the car in fact, you are just renting it. Also, you can get penalties if you for example exceed the number of miles stated in your contract, if you fail to keep the car in an acceptable condition.  Returning the car after the lease expires can also lead to extra payments (Penalties).

To lease a car is a much simpler procedure than to get a loan. But, you must beware of some facts. First of all, as in getting a loan, get more lease deals and find the most suitable and affordable for you.  Always negotiate the price, and then settle on a lower price, tell the seller that you’re going to lease the car.

Arrange your payments in such a manner that you pay as much as you can afford, In order to decrease the overall payments on your lease.  Do not attempt to return the car before the lease expires. That will lead you to penalties. You can return the car only in case you are going to lease another car or vehicle.  Lease or not to lease? Decide for yourself, but in the end, when getting a loan, you’ll own the car in the end.  The loan, especially the one offered by online credit loans, for example the www.UnifyLenders.com, are much more acceptable, give you more security, and more benefits in the end.

Also, one of the ways to get a new car is using your home’s equity to finance the car. That topic will be discussed in the next session.

Auto Finance – Choosing a Car

Financing a car and buying a car are two different things, that must always be treated as such.  First of all, when looking for financing, you can find for yourself the best offer on market for the best credit loan.  Don’t forget to check online for credit-union car loans, for example www.UnifyLenders.com.  They offer better rates than traditional banks and credit unions, along with other benefits.  After choosing the best financing, you are ready to go and to find a car suitable for your needs, and the car that fits into your financial plan.

If you are still determined to choose dealership financing, do not be surprised if you sign for something you didn’t want, like extra fees for extended warranty or something similar. Question everything you do not understand before signing anything!  Differentiating between Financing and purchasing is always a smart choice, because it gives you the advantage of choosing the car you want, and also gives you an advantage when negotiating with a car dealer regarding the actual sale price of the car.

Here are some ideas on how to get a car you want, and for the price you want.  Cars that are going to be replaced or that are actually replaced by newer models are always cheaper and more affordable than newer models, especially if the newer version that is coming to a store is completely different from the old version.  Another advantage of buying an older version of the car is the fact that  the older model is a tried and tested Car model that won’t surprise you much when it comes to maintenance and other costs related to owning a car.  On the other hand a newer model will only offer you new looks, a bigger price tag and an unfamiliar teritory of a new model. You don’t know if the new version is going to have some problems with electricity, windows etc. When buying an older version, you’re buying something that is already tested and proven.

Also, how to get an additional discount from a dealer?

Shop on Mondays.  The time until next weekend, when the prime sales time is, is long. Dealers mostly cut their prices on Mondays.  Don’t shop on the beginning of the month; wait for the end of the month. The car dealers are looking for a monthly bonus, so if you show up at the end of a month, Theres a much more higher chance of you buying a cheaper car.  The bonus is what the dealers want. Give them that opportunity, but also cut the price.

Please continue reading and find out about Car Leasing.

Auto Finance – The Loan

Taking into consideration all the factors that where discussed previously, One will end-up making a decison to take a loan, which is a decision that we recommend ourselves.  This decision can also be influenced by the fact that we also have one of the best service providers available in the country to make sure that taking a loan can actually be an experience as enjoyable as driving the car itself, (an Adventure).  You should check out the following institutions for the best deals available:

1. Lending Institutions like Unify Lenders
2. The Traditional Bank;
3. Credit union— a members-only, nonprofit bank, and

What to look for when taking a loan.

You should get focused on the APR, or annual percentage rate. Every lender has its own APR. The APR is the annual cost of the loan, or interest rate. When you get this number, it is easy to compare the loans between different deals, as long as the duration of the loan is the same for each deal.  Think about the size of your loan. How much can you afford?  You should calculate the amount you can afford to pay each month, before you go for a car shopping. You should make a decision about the cost of your car, and not the dealer.  Smart idea is to calculate 20% of your monthly disposable income. Your income, minus payments of all living expenses and debts, of that sum you take on-fifth what’s left. This is your maximum monthly auto loan charge. Do not to forget to include the charges of gas and insurance, the best would be if all of it can be in that one-fifth of your income.

Decide for how long you will be paying for the car, the duration of your loan?  Your monthly payment is basically your loan plus interest, divided over the number of months of loan payments.  If you choose the longer payment, be aware that you’ll in the long run end up paying much more, although your monthly fee will be lower. Why is that? Because, you will pay much more interest in your loan, and in the end you will pay a larger amount than you’ll pay if you choose a shorter loan duration.

The best strategy is to get a loan between 3 to maximum 5 years.  So, you have decided to get a loan, decided what is your maximum of monthly payment and for how long you are going to pay off your loan. The next step is choosing the car. Not a simple thing, but we will discuss it too.

Auto Finance – The Dilemma

When buying a car think about your options carefully, Otherwise you will find yourself in a dillema when selecting a financial plan that will suit and benefit you in the long run.  The Internet is full of great tips on how to save money, how to get a loan, lease or anything else related to buying a car.

But, let’s start from the beginning.

You want a new car.

Your plan should not be to walk into a dealership and simply open your wallet.  So, you need a plan on how to finance your car. The first thing you need to understand is your choices.  And those choices are as follows:

1. Lending Institution like Unify Lenders
2. Bank Loan
3. Dealership Loan
4. Credit Unions Loan
5. Lease Agreement.

Making the Decision.

Lease Agreement

First of all, let’s face it, the lease is not a good idea. Why not? You are paying your car for, let’s say, 3 to 5 years, just to drive it. So, you do not have a car, you have a rented car. When the lease expires, you are left with two options: either to return the car and lose all the money, or the other option which is more accepted by people who use a lease to buy a car, and that is to rebuy it from the Leasing agency. That means spending a lot of money in the end of your leasing period, just to buy the car that you have already been paying for years. Of course, sometimes to lease a car it’s not such a bad idea, but consider all the aspects of your financial plan when thinking about it.

Loans.

You can get a loan from the bank, credit unions or you can walk into the dealership house, choose a car and choose their financial loan plan. Which is a better option? Beware of dealerships loans. In the end, they will cost you more than the bank loan.  Choose a loan from a bank or some credit union house, check out rates at traditional banks and online-only car lenders. Also, you can join www.UnifyLenders.com and check out their deals and ways to save the extra money.  The next question is, what is really a loan, what kind of a loan is the best for you and how to calculate your perfect financial plan.  All of that we will discuss in the next chapter, Auto Finance –Loans.