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Posts Tagged ‘car loan’

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Shop Wisely When Shopping For A New Car

March 11th, 2009 by Matthew C. Keegan | 2 Comments | Filed in Autos Express

If you are in the market for purchasing a new vehicle, one part of the decision making process is how you will pay for your purchase. If you have enough money for a cash payment, then you are in a position to leverage the best possible deal.

car loanMoreover, if brand loyalty isn’t a big consideration, then your options are greatly expanded. Consider the following points when shopping for your next car:

Seasonal Deals – As the old model year comes to an end, new models begin to show up in dealer showrooms. But there is a problem: many dealer lots are filled with older “new” cars and they are eager to move them. Some of the best new car deals come during the months of September and October as rebates totaling thousands of dollars are made available.

However, you don’t have to settle for those rebates alone as manufacturers offer incentives to dealers to move inventory. Research online to find out what they’re getting because you want a piece of that action!

Model Ending Deals – If a particular brand is discontinuing a model or replacing that vehicle with a newer version, then big deals on the discontinued model should be available to you. In this case, you are in the driver’s seat as most consumers prefer to buy the latest model. If you don’t mind an older version then go for that model as it will offer the biggest savings.

Zero Percent Lending – Which should you choose: the zero percent loan or the big cash rebate? If you are paying cash it would be in your best interest to simply finance the purchase and bank the money. In effect the auto lender will be giving you thousands of dollars in interest money for your choice. If you lack a sizable down payment, seeking independent financing at a low rate and taking the cash credit is a good way to go too.

Slow Movers – Several manufacturers are desperately trying to get back on track following record losses, sales declines and potential bankruptcy. And they’re eager to do a deal! Just make sure that you come away with a car that you really want as some of the deals being offered are on models that have a low resale value.

Yes, you most certainly can save money on a new car. Do your homework, shop around and compare offers. The current state of the economy has revealed that we’re in an unusual buyer’s market, one that may not last beyond the end of the recession.

Adv. – How about a card you need that fits your financial objectives? Whether you are a savvy consumer or first-time user, there is a credit card that will meet your buying-power needs. Please visit nBuy.com to conduct your smart credit card search.


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It Truly Is A Buyer’s Market For New Cars

February 10th, 2009 by Matthew C. Keegan | 8 Comments | Filed in Autos Express

My family isn’t planning to buy a new car in 2009 as we have decided to keep a pair of aging cars on the road for at least the next few years. It is far cheaper for us to maintain what we have, but as our children grow we’ll need to find something roomier by then.

Toyota CamryOver the past few months, the global auto industry has been seeing a precipitous sales decline and at rates not seen for over twenty-five years. Adjusted for an increase in population, January 2009 sales numbers rank among the worst ever.

Auto Sales Stink = You Win

Whereas the industry as a whole is suffering mightily, consumers who are in the market for a new car stand to do quite well if they decide to buy right now. At some point the discounts won’t be as good as they are today, making 2009 a good year to consider purchasing a new car.

Of course, if you can pay cash for your purchase you stand to come away with the best deal out there. Cash purchases allow buyers to negotiate the lowest price without having to consider financing or a trade in. Oftentimes, these types of buyers are able to negotiate a price that is well below sticker price, even below dealer invoice.

For people who need to finance their new car purchase, there are some things to keep in mind before you begin car shopping including:

What are your financing options? Find out what your credit score is before you shop — the higher your credit score, the more likely you’ll be approved for an auto loan and with favorable loan terms (e.g., lower interest rate).

How much are you putting down? The more money you can put down, the better. Besides not getting stuck with a huge and burdensome monthly payment, if you are able to put more money down than you will be in a better position to negotiate favorable financing terms.

Cash rebate or cut rate financing? These days almost every manufacturer is offering some sort of deal on their vehicles. Besides taking hundreds, even thousands of dollars off of sticker prices, some companies are offering zero or low interest rate financing. Almost always it is better for you to take the cash back and seek financing elsewhere. A few companies, such as Chrysler, offer cash back and low financing. Talk with your banker or credit union representative about loan options before you visit the showroom.

Are you ready to negotiate? Few cars today are sold at sticker price, with most offering some sort of discount. Consumer publications such as Consumer Reports sell information about dealer invoice amounts for specific make/model/trim level cars. You should be able to pay below invoice in most cases as dealers also receive “secret” incentives from manufacturers to help move product.

Savvy shoppers understand that other factors in the car buying process can help them too. Check with your insurance company to get an idea what your costs will be to insure your new vehicle, learn what the projected resale value of your car will be a few years out, and be prepared to get bids from competing dealers to find the best deal out there.

Although we’re currently in the teeth of the recession, the current economic climate will not last forever. When automakers align production with demand and as the recession eases, discounts and special financing offers will shrink and prices will once again increase.

Adv.– Are you considering the purchase of a house or a car during this recession? For consumers who have good or excellent credit, this may be the best time to jump in to the market. You’ll also want to make sure that your emergency income levels are consistent during these times as well as have a good food storage plan in place to keep those costs under control too.


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Let Your Home Finance Your New Car

February 3rd, 2009 by Matthew C. Keegan | 1 Comment | Filed in Autos Express, Home Financing, Money Management

If you are in the market for a new car, then I have some great news for you: prices are being slashed and financing deals are among the best we’ve seen in some time. In fact, you may be able to save thousands on your new car while getting low interest rate financing.

home equityThough most shoppers will pay for their new car purchase by taking out a loan or paying cash, there is a segment of the car buying populace who have figured out a way to buy a new car by using the equity found in their home to pay for it. Instead of dishing out cash or taking out an auto loan, these consumers negotiate the best price for their car and finance the deal for themselves.

Certainly, anytime you borrow money against the value of your home, you are responsible to pay those funds back, just like any other loan. But, in this case, you can deduct the interest from your fixed rate equity loan on your income taxes. Try doing that with your auto loan — you cannot!

Yes, there are certain things you need to keep in mind to make this type of loan smart for you. Otherwise, you risk making the same foolish mistakes that some homeowners have made with credit over the past few years, putting themselves in financial jeopardy.

Among the things to keep in mind are:

Borrow what you need, nothing more. If you have your eyes on a car that will cost you $25,000, then borrow that amount and not a penny more. Avoid the temptation to add in other costs, otherwise your loan will be bigger than what you want it to be.

Keep it short. Certainly you can borrow for ten or fifteen years, but not too many people keep their cars that long. Besides, do you really want to pay interest on a vehicle for that long? Instead, consider a five year loan the length of loan many new car buyers select.

Choose a fixed rate. Avoid any type of loan that can fluctuate. In these challenging times, you don’t want government policy or financial conditions to determine what you have to pay each month. Pay the same amount in month sixty as you’ll pay in the first month and every month in between.

Calculate LTV. What is the value of your home today? LTV is the loan to value of your home, the higher the percentage the better loan rate you’ll be offered. Even if you are allowed to borrow more than what you need for a new car, only do so if you’ll use those monies to fund other projects.

No Restrictions. When choosing a home equity loan, make sure that there are no restrictive clauses for how you can use your money. In addition, you don’t want pre-payment penalties. Why should you be punished for paying off your loan early? You shouldn’t be!

One of the best reasons for allowing your home to finance your new car purchase is that you can claim a tax deduction as per federal and state tax guidelines. Most taxing authorities don’t care what you use your home equity loan money for, that is your business. Consult your financial adviser or tax accountant if you have questions about how this works.


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Automotive Financing, Done Right

November 20th, 2008 by Krayton M Davis | 1 Comment | Filed in Autos Express

Much has been made in the news of automotive financing lately, as several American car manufacturers drop leasing as a purchase option and raise the credit requirement for people seeking to buy a new car through their financing companies. What was once a routine purchase has gotten quite a bit more complicated, leaving buyers confused and some fleeing to other brands.

A tough credit market and slow sales have also worked to shake up the auto industry, but for the person who wants to buy a new car right now, some of the best deals new carseen in years can be found.

Fortunately, where one door closes another one opens up or in this case other doors already in place are worth going through. If you plan on purchasing a new car before the calendar turns to 2009, then you’ll want to consider the following tips which can help make your transaction as trouble free as possible:

Select Your Model – Consumers who have their eye on a particular model but wonder if financing will be an issue should go ahead and choose that vehicle based on their desire to own that particular car. Chrysler Financial may not offer the best financing deal on your Dodge Challenger, but if you really want the car then get it – financing is a separate issue.

Shop Around – Year end sales are in full swing, but don’t be lulled into thinking that every car dealer has your best interests at heart. Shop several dealers, get their lowest price, and make sure that all incentives are included (military discount, recent college grad, etc.) along with the automaker’s deal and your dealer’s discount. Some dealers will plead poverty when you negotiate with them, but they’re getting their own rebates from the manufacturer when they sell a car to you.

Talk With Your Banker – Your own bank may be the best source for financing your new car, so before your wheeling and dealing gets serious, make a visit to your bank to see what offers are available for you. Banks are in the business of lending money and if your credit is good, then you could be just the right candidate for a loan. The same applies if you belong to a credit union. One note: if your banker isn’t offering you a good deal, then visit the competition to find out what they have to offer to you.

Alternate Leasing – For some drivers, leasing a car is their only option. With GM, Chrysler and Ford making it more difficult – if not impossible – to lease, what options do motorists have besides switching brands? Well, some savvy dealers are working with private leasing companies to come up with packages that might be attractive to you. Contact the financing departments of several dealerships to find out who they are working with, their rates, and other options available to you. If you finance or lease elsewhere, then manufacturer cash discounts are still available to you.

Pay Cash – If you’re in a position to pay cash for your vehicle but prefer to keep your money and finance your purchase, now may be a great time to simply pay cash. Cash is king and dealers know it. You’ll be able to get the maximum discounts from the manufacturer, have an excellent negotiating point with your dealer and be able to drive away in a new car that costs less than the person who had to have someone finance it.

Even if you choose to finance your car now, you aren’t stuck with the same loan for the next 48, 60, or 72 months. You can pay down your loan quicker or refinance your car loan later on when the financial markets stabilize and your personal financial outlook stabilizes. Year end deals makes buying a car now an attractive option, giving you the car you want at a price that cannot be beat.

Adv. — Are you in the market for a new car? If so, nBuy Plaza has everything you need to purchase – repair – maintain – upgrade – reduce – finance – and insure your auto transportation needs. We’re your one stop source for everything automotive!


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