What You Need to Get a Car Loan

If you are planning to finance your next car purchase you are not alone. In fact, more than 90 percent of all the new car buyers need some sort of financing to buy their new vehicle. However, if you are planning to buy a new car by using a vehicle financing deal, you should bear in mind that there are a few things that you will need to do to make the financing experience less painful and more satisfying in the long run. Some of these are as follows.
Select the car that you want
If you need a car try to determine exactly which one you want. Be a savvy consumer and investigate the different models and brands on the market. Look for the qualities you want, like interior space, cargo room, price and mileage. You should also consider the service record of the model you are considering. Try to determine if the previous buyers have been happy with their new vehicle or have there been a number of service issues. Examine all the important aspects carefully before deciding on which model you want. But to be sure, try to narrow down your choice before you ever set foot on a dealership lot.
Determine what you can afford
You should start looking at financing options. How much car can you afford and what sort of financing can you get for it? These are questions you need to ask yourself and find answers before the real shopping begins. If you let the dealership make all these decisions for you, you might end up with a vehicle you would rather not have. A new car purchase is a big decision and one you have to live with for several years. Do your homework and don't settle for what you don't want.
Know your credit rating
You also want to know your credit rating before you select a financing option. It is best if you get a copy of your credit report and start checking it for errors. Any errors on your credit report should be fixed before you start shopping around for financing options. The better your credit rating the better financing deal you can expect to get.
If you have shopped around for different financing options you can better judge the deals you are offered. If you know your credit rating you also have a better idea of how good a deal they should be making you.
When you go shopping for a new television you no doubt compare prices online and in the local advertisements posted in the newspaper. The same technique should apply when you are shopping for a new car. Compare vehicles, compare financing and walk into the dealership knowing what you want and what you expect to pay for it.

Auto Loan - Obtaining an Auto Loan With Bad Credit

Many people with low credit scores or a bad credit rating assume that they are automatically denied when it comes to obtaining financing for a new or used car. While that might have been the case a few years ago, obtaining an auto loan when you have bad credit is possible. With a little research and work, people with bad credit can obtain a car loan that can be used to finance the purchase of a new car. If you have a low credit score or a bad credit rating, the following tips can help you obtain the financing you need.
When applying for an auto loan with bad credit you should first obtain all your information from the credit reporting agencies. Federal laws require that all three major credit reporting agencies must provide you with a copy of your profile for free. Your credit reports will show you what debts are being reported, if you are delinquent in any bills, and exactly how low your credit rating really is. Obtaining your profile will allow you to see exactly what your credit rating is, and how you can improve it.
After you have obtained a copy of your credit profile, you can work at cleaning up what is on that credit report. Sometimes what is being reported on those credit reports is either inaccurate or should have been removed as it is past the standard seven year mark. Writing a simple letter disputing what is on the credit report can help clean up and possibly improve your credit score. It will take two to three months to remove the stuff from your credit report but disputing mistakes can significantly improve your credit score and give you access to better interest rates.
If you are having difficulty obtaining an auto loan due to your bad credit you may want to try applying at several different banks, financial institutes and online car financing companies. Every company has a different set of qualifications, and some even specialize in offering people with low credit ratings loans. Some people with bad credit ratings are afraid to shop around for loan quotes for fear it'll lower their credit rating. However, if you apply for loan quotes within a month of each other they only count as one quote on your credit report. Getting a car loan might be difficult if you have a bad credit score or rating but it is not impossible. Shopping around for loans, and cleaning up your credit report can help you obtain the financing you need.

Low Income Auto Loans - Is It Possible To Get A Car Loan With Low Income?

Modern technology has gifted man one of his greatest passion - cars. Ever since the invention of steam engine vehicles in 1769, cars have been popular. Everyone is just floored by the beauty of a car.

Sadly, buying a car has become difficult. All thanks to high purchase prices of these beauties. Most new cars start from $20,000 and a good used car is also expensive. Also, the gas prices are increasing which makes car buying very hard.

The economy is reviving and people have just started getting their jobs back. Finding a high income job is still a challenge. This creates a very bad situation because a car is needed to reach your work place but you cannot afford it with your job. Lenders have understood this situation quite well and that is why low income auto loans have been introduced.

Most lenders require you to earn at least $1,500 per month. But, you can avail these loans even if your income is as less as $1,000. Now, don't worry if you earn less than it because there are many other factors which decide your approval. Know them so that you can tackle them well.

1. Credit Score - Higher the score, better it is.
2. Credit Profile - Here the requirement is that it should be longer.
3. Term of Loan - You should try to keep it short.
4. Loan to Value Ratio - 70% -80% is optimum.
5. Down Payment - 10%- 20% would improve your chances.
6. Employment Term - At least six months.
7. Time at Residence - You need to be living at the same residence for at least six months.
8. Co-signer - Having a co-signer reduces lender's risk.

When you have a low income, you must be better at these aspects. Now, it is quite possible that you have a bad credit score and earn less. For such a situation, get a larger down payment and search for a co-signer.

Now, as you have low income, it is essential that you don't go for a very expensive car. If you go for an expensive car, its payments would also be huge. To avoid them, you will have to go for an unnecessarily longer loan term. This will increase the chances of an upside down loan. Hence, a used car is your answer. Once you improve on your income, you can always buy your dream car. Right now, it is important to get you a car that works for you. When you go for a pre-owned car, don't forget to read the Vehicle History Report. It's always good to know what you are getting into. Also, get the Odometer Disclosure Report because few lenders do ask for it.

Applying for low income auto loans is simple because you don't need any additional documents. The only important thing is to prove your income. For that, you can use your recent pay stubs. If you are self-employed, it is important that you provide your IT details to the lender.

Low income auto loans are easy to get and a boon to those who are struggling with low income. So, don't wait anymore. Cars are a necessity and it's time to fulfill your car needs.

Refinancing a Car Loan - What Lenders Look For

If you are able to refinance a car loan at a lower interest rate than what you originally obtained you may be able to save as much as $100 a month on your car payments. While the process of learning how to refinance a car is simple, meeting the requirements that are set forth by the financial lenders might be difficult. Companies that offer car financing have a list of requirements that must be met before they will consider offering you a new auto loan. The following are some of the requirements that must be met in order to refinance auto loans.

Car financing companies will require that the value of the car must be more than what is owed on the loan. Sometimes people will try to refinance a car when they owe more than what the value of the car is worth. Almost all lenders will offer a car refinance option if you are in an upside-down loan. To get out of the upside-down loan and possibly qualify for an auto refinance you will need to pay more than your monthly car payments in order to lower the amount that you owe on the car. Once the amount is lowered you may qualify for a new loan that can be used for financing a car.

Another requirement car financing companies will look for when people try to refinance car loans is how much you owe on the car. All financing companies require that you owe more than $7,500 on your existing car loan in order to qualify you for a loan to refinance a car. Some financial lenders may waiver this minimum requirement but it will require you to fill out extra paperwork. The minimum amount required on an existing auto loan is set because an auto refinance will extend your loan payment, and it isn't cost-effective for amounts less than $7,500.

The last requirement needed to refinance a car is a fair or good credit score. A good or fair credit score will ensure that you are getting the best possible interest rate a financial lender can offer you. Getting an auto refinance is still possible with a bad or low credit score, but you may not be offered the best interest rates. Knowing what lenders are looking for can help you prepare for the process required to obtain an auto refinance and help you get the best possible interest rates and loan terms possible.