Now you can add "fuel efficiency" to the list of reasons a driver can qualify for an auto loan.
A North Carolina credit union has introduced a new loan aimed at consumers in the market for high-gas-mileage cars. The Fuel Efficient Auto Loan applies to any new or used vehicle getting 29 miles per gallon or more on the highway, and boasts a 0.5 percent financing rate discount.
The new loan comes at a time when consumers are shunning gas-guzzling autos such as SUVs. The company believes it can help people save money as well as promote the purchase of environmentally-friendly automobiles. "It's designed to help our members save money at the gas pump and reduce their financing costs," said Troy Martens, Truliant's vice president for consumer and real estate lending.
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Monday, October 6, 2008
Monday, August 4, 2008
NO MORE LENDING-BASED LEASES, CHRYSLER SAYS
According to industry insiders, Chrysler LLC will no longer offer auto leases through its lending arm, Chrysler Financial.
As consumers avoid the SUVs and other gas-guzzling vehicles they once leased in huge numbers, auto makers have seen their lease profits plummet. On Thursday, Ford Motor Co. had to write down 2.1 billion dollars related to unprofitable lease deals made by its own credit division.
Chrysler Financial will likely see its borrowing costs rise as it rolls over its own debt, backed in part by its lease business. That, in turn, will make it harder for the company to offer low-interest loans to buyers.
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As consumers avoid the SUVs and other gas-guzzling vehicles they once leased in huge numbers, auto makers have seen their lease profits plummet. On Thursday, Ford Motor Co. had to write down 2.1 billion dollars related to unprofitable lease deals made by its own credit division.
Chrysler Financial will likely see its borrowing costs rise as it rolls over its own debt, backed in part by its lease business. That, in turn, will make it harder for the company to offer low-interest loans to buyers.
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Friday, May 16, 2008
AUTO LOAN CUTBACKS MEAN CONSUMERS MUST SHOP AROUND
Citibank is closing its one of its key auto-loan financing branches -- the latest in a round of industry cutbacks that could affect the consumer's ability to get an auto loan.
"The company will decrease the number of auto dealers with which it conducts business, and it has raised pricing in line with credit risk in the current environment," a bank spokesperson said. Citibank previously provided financing for auto loans to consumers via dealerships.
Consumers -- particularly subprime auto-loan seekers -- would be wise to net-search the many sites out there that provide financing, such as autoloanhelpers.com. An increasingly tightening credit market means more financial companies could be cutting back on future loans granted.
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"The company will decrease the number of auto dealers with which it conducts business, and it has raised pricing in line with credit risk in the current environment," a bank spokesperson said. Citibank previously provided financing for auto loans to consumers via dealerships.
Consumers -- particularly subprime auto-loan seekers -- would be wise to net-search the many sites out there that provide financing, such as autoloanhelpers.com. An increasingly tightening credit market means more financial companies could be cutting back on future loans granted.
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Tuesday, May 13, 2008
CREDIT CRUNCH HITS AUTO LOANS, TOO
It's not just home-loan borrowers who are feeling the current credit pinch -- auto-loan holders are finding it a tough road, too.
According to the American Bankers Association, delinquencies on indirect auto loans reached more than 3 percent in the fourth quarter of last year -- the highest rate in at least 17 years.
What may or may not make loan holders happy? "If you're going through it right now, you're not alone," says an ABA spokesperson about the current fiscal stress. What to do? Lenders suggest borrowers contact them as soon as they feel their financial burden is becoming too heavy to bear -- rather than just stop paying, which could severely hurt their credit rating.
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According to the American Bankers Association, delinquencies on indirect auto loans reached more than 3 percent in the fourth quarter of last year -- the highest rate in at least 17 years.
What may or may not make loan holders happy? "If you're going through it right now, you're not alone," says an ABA spokesperson about the current fiscal stress. What to do? Lenders suggest borrowers contact them as soon as they feel their financial burden is becoming too heavy to bear -- rather than just stop paying, which could severely hurt their credit rating.
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THE TEN MOST EXPENSIVE CARS TO INSURE
Before you go applying for an auto loan, be sure to check out the model you have in mind to buy -- it may cost you more down the road for insurance.
"The choice of the car itself is going to affect, in particular, what you will spend for comprehensive and collision," says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute.
Another surprise: "A safe car is not necessarily the cheapest car to insure," says Salvatore. For instance, a "safety-minded" car could be more expensive to repair after an accident, which would increase insurance costs.
The top 3 cars with the most expensive collision losses, according to the Highway Loss Data Institute, are the Mitsubishi Lancer Evolution, followed by the Mercedes CL and the Dodge SRT-4. The least expensive? Perhaps not surprisingly, it's the Volvo XC90.
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"The choice of the car itself is going to affect, in particular, what you will spend for comprehensive and collision," says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute.
Another surprise: "A safe car is not necessarily the cheapest car to insure," says Salvatore. For instance, a "safety-minded" car could be more expensive to repair after an accident, which would increase insurance costs.
The top 3 cars with the most expensive collision losses, according to the Highway Loss Data Institute, are the Mitsubishi Lancer Evolution, followed by the Mercedes CL and the Dodge SRT-4. The least expensive? Perhaps not surprisingly, it's the Volvo XC90.
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Thursday, May 1, 2008
CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO
April 25, 2008
CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO
Housing isn't the only market to feel the effects of the current credit crisis -- the auto loan market has been hit too.
As lenders raise their standards for approval, loan seekers are finding it increasingly difficult to secure financing. Those who can obtain loans are settling for lower-priced cars in some cases.
Some of the largest lenders are taking the most extreme measures. JP Morgan Chase now requires larger down payments and is limiting loan length for those with lower credit scores. CitiGroup says it will reduce the number of loans it grants, and has let some 800 workers go in its auto-lending department.
Even higher-credit types are feeling the pinch. "People with decent credit aren't able to get the terms they think they should get," said Michelle Primm, managing partner of the Cascade Auto Group in Cuyahoga Falls.
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CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO
Housing isn't the only market to feel the effects of the current credit crisis -- the auto loan market has been hit too.
As lenders raise their standards for approval, loan seekers are finding it increasingly difficult to secure financing. Those who can obtain loans are settling for lower-priced cars in some cases.
Some of the largest lenders are taking the most extreme measures. JP Morgan Chase now requires larger down payments and is limiting loan length for those with lower credit scores. CitiGroup says it will reduce the number of loans it grants, and has let some 800 workers go in its auto-lending department.
Even higher-credit types are feeling the pinch. "People with decent credit aren't able to get the terms they think they should get," said Michelle Primm, managing partner of the Cascade Auto Group in Cuyahoga Falls.
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HOW TO GET THE BEST AUTO LOAN RATE
April 17, 2008
HOW TO GET THE BEST AUTO LOAN RATE
Shopping for an auto loan online greatly increases your chances of getting the best rate -- here's how to stack the odds even more in your favor:
STUDY LENDERS, COMPARE QUOTES: Online auto loan brokers -- individuals or companies with access to lenders -- are a great source of information. Be sure to check out their sites before you apply for financing.
NEGOTIATE TERMS BEST FOR YOU: Shorter loans offer lower rates, but in the long run you may pay more. Always go for the deal that best suits your budget.
PUT DOWN AS MUCH AS YOU CAN UPFRONT: A down payment of 20% or more nets you a lower interest rate -- no matter what your credit rating.
GET PRE-APPROVED, GET A BETTER DEAL: Pre-qualifying for financing gives you the leverage to negotiate the best deal possible. That doesn't just mean a lower rate; it can also get you a rebate or even a higher trade-in value for your present car.
Related Story
HOW TO GET THE BEST AUTO LOAN RATE
Shopping for an auto loan online greatly increases your chances of getting the best rate -- here's how to stack the odds even more in your favor:
STUDY LENDERS, COMPARE QUOTES: Online auto loan brokers -- individuals or companies with access to lenders -- are a great source of information. Be sure to check out their sites before you apply for financing.
NEGOTIATE TERMS BEST FOR YOU: Shorter loans offer lower rates, but in the long run you may pay more. Always go for the deal that best suits your budget.
PUT DOWN AS MUCH AS YOU CAN UPFRONT: A down payment of 20% or more nets you a lower interest rate -- no matter what your credit rating.
GET PRE-APPROVED, GET A BETTER DEAL: Pre-qualifying for financing gives you the leverage to negotiate the best deal possible. That doesn't just mean a lower rate; it can also get you a rebate or even a higher trade-in value for your present car.
Related Story
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