Wednesday, December 16, 2015

S.M.A.R.T. Tips for Saving on your Auto Loan

Americans love cars. It is one of the reasons why America is amongst the world’s top car-owning countries. Every year, Americans spend several thousand dollars on auto loan payments. If you are looking forward to buying a car, make sure that you follow S.M.A.R.T. tips. The tips will help you save money and ensure that you do not opt for exorbitant auto loans.

Follow the S.M.A.R.T. Tips and Save Money

When car buyers have to make a decision about auto loans, logic takes a backseat and emotions become a controlling factor. It is the reason why car buyers say yes to financially harmful auto loans. To save yourself from the possibility of a financial damage, you must follow the tips.
S.M.A.R.T. Tips for Financing a Car

S - Specific

The car is a huge asset. So, it is essential that you understand your requirements before buying a car. It is important that you have a specific image of the type of the car that you want. It will help you stay away from an impulse purchase.  Consider the list of following factors because it will help you in choosing your perfect car:

1. Total number of passengers
2. Gearbox - Automatic or manual gearbox?
3. Cargo capacity
4. Vehicle performance
5. Driving conditions
6. Gas mileage
7. Safety features
8. Technological features
9. Parking space

M - Money

Remember that even if you opt for an auto loan, you will need to make down payment of at least 10 percent of the total price of the car. Making down payment is always beneficial for you because it helps in reducing the loan amount and the interest amount. Also, down payment will project your stable financial situation to the lender and help you in reducing the interest rate.

If you do not have money for making down payment, do not worry. You can trade-in your old car and ask the dealer to deduct its value from the price of the new car.

A - Affordable

Selecting a specific car will be of no use to you if you cannot afford to buy it. Remember that car expenses are not limited to down payment. You will have to pay money for monthly loan payments, fuel charges as well as maintenance 
expenses. A general rule is to allocate no more than 20 percent of your total monthly income for car-related expenses. Keep this rule in mind and choose an auto loan that does not exceed your budget.

R - Reliable

There was a time when car buyers applied for an auto loan with the local bank only. Today, there are several ways of obtaining an auto loan. You can apply with a bank, a credit union, or an online auto financing company.

No matter what option you choose, you must ensure that the lender is a reliable one. If you opt for an online auto financing company, check the website’s security certificate. If the website doesn’t have one, stay away from it and save yourself from a potential identity theft.

T - Time

Car buyers are afraid of rate shopping because they believe that multiple credit inquiries will damage their credit score. But, do not refrain from rate shopping instead, finish it within 30 days. Why?

A time-bound search for an auto loan will ensure that you do not harm your credit score. FICO does not consider inquiries made in the 30 days prior to scoring. So, if you are able to get a loan within 30 days, it won’t affect your score. This span of time can change to 14 days if the lender uses older versions of FICO and can increase to 45 days if the lender uses the newest formula.

Car buying is one of the most expensive purchases that Americans make. If you do not pay attention to your auto loan, you can make the worst financial mistake of your life. So, avoid making a bad decision and follow the S.M.A.R.T. tips.

Rapid Car Loans is the preferred choice of Washingtonian car buyers for obtaining no cosigner auto loans. Get in touch with the company and obtain Washington bad credit auto loans. Apply now to buy a car today.

Dealing with Auto Loan after Divorce

Divorce is not only emotionally difficult for you but it is also difficult for your financial condition. How?When a marriage ends, individuals split assets and go separate ways. But, what happens to liabilities such as an auto loan?

In an ideal world, both the individuals assume the responsibility of the debts they created and part ways. Unfortunately, the reality is different. So, take care of debts after a divorce.

The Legal Liability of an Auto Loan

Do not believe that just because the divorce agreement holds your former spouse responsible for the auto loan, he/she will make regular payments. It is plausible that he/she may not make payments.

You must remember that the divorce agreement is separate from your loan contract. Lenders do not give importance to the divorce agreement. Your former spouse may be responsible for the loan in the eyes of a court. But, if you applied for a joint auto loan, lenders will hold you accountable for the loan as well.

How to manage an Auto Loan after Divorce?

It is important to remember that your marriage may be history, but a loan will continue to affect your present and future. Here’s how you can manage your auto loan and save your credit score from plummeting.

1. Get rid of the Loan

After a divorce, the best way to manage an auto loan is to get rid of it. If your former spouse is responsible for making payments, the loan should be in his/her name only.

But, remember that no lender will remove your name from the loan contract because of your changed marital status. So, your former spouse will have to refinance auto loan and complete the loan process individually.

2. Get rid of the Car

If you are worried about refinancing the loan, you can sell the car and pay off the lender. It is possible that an upside down loan situation may force you to pay money to the lender, but it is important to understand that a loss today is better than constant tension forever.

3. Make sure the Lender gets paid

If your former spouse is responsible for the loan and both of you decide against selling the car, you will have to make sure that he/she makes the payments regularly.

If your former spouse doesn’t make payments, contact your attorney. It is possible that you will have to make a couple of payments to avoid any negative impact on your credit score. So, keep aside a part of your income for it.

Taking care of your auto loan might be the last thing on your mind. But, it is important to understand that your marriage is over and not your auto loan. If you don’t manage it effectively, you may ruin your credit score forever.

How to obtain the Best Black Friday Car Deal in 2015?

It is just a couple of days before the greatest sale of 2015 begins. This year, Black Friday is on 27th November. And, it is considered one of the best times of the year to buy a car. Here’s why?

Numbers prove it

Last year, 17.2 million cars were sold during November. The majority of the cars were sold during the long weekend of Thanksgiving. Experts believe that almost same number of people will be shopping for a new car this year as well.

Dealer’s Discount and Manufacturer’s Incentives

As the 2016 car models are available for sale, dealers will offer huge discounts on the 2015 car models. It is because they want to empty their inventory of 2015 car models.  Also, the manufacturers will provide incentives for buying this year’s car models. It means you can get the best of both worlds and enjoy buying a brand new car at reduced prices.

Why prepare for Black Friday Car Shopping?

It has become a tradition for many families to shop for cars during the long weekend of Thanksgiving. It gives them an opportunity to inspect the car at leisure without worrying about their job schedule. Several families will be present at the dealership lot when you go to buy a car. Everyone will be vying for the salesmen’s attention. In order to obtain the best Black Friday car deal, it is important that you go well prepared.

Tips for securing the Best Black Friday Car Deal

1. Create your Car Budget

If you are passionate about cars, your left-brain may influence your decisions. So, it is important to create a car budget by analyzing your current financial situation, credit score and future expenses. It will help you in calculating your expected monthly payments.

Once you have your car budget ready, search for car models within your budget. Make use of internet and read the reviews of the shortlisted car models.

2. Contact the Dealerships prior to your Visit

You won’t be the only one shopping for a car over the Thanksgiving weekend. Every dealership in your area will witness an astounding number of footfalls. In order to ensure a stress-free experience, call the dealerships beforehand.  There is no need of providing detailed information of trade-in or auto financing. Simply ask the dealers to e-mail you the vehicle quotes. It will help you in short-listing dealerships according to the price.

3. Don’t be Emotional

Black Friday car shopping is an emotional process. The salesmen may tempt you with exciting discounts and deals. But, you must stick to your car budget. It will help you in staying on top of monthly payments.

Also, it is essential to stay calm and composed during the negotiation process. Do not forget to check all the fees in detail. You can negotiate the fees charged by the dealer such as “dealer’s fee”, “dealer prep charges” and “marketing fee”.

Holidays make us emotional. But, it is important to have a practical approach to the entire Black Friday car shopping process. It is because only then you will be able to secure the best car deal.

Rapid Car Loans will help you take advantage of Black Friday car sale by providing instant credit approval on car loans. Apply now and get ready to benefit from the year’s biggest sale.