Auto Loan Helpers

INTRODUCING THE GREEN-CAR AUTO LOAN

2008-10-06T12:28:00.000-07:00

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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NO MORE LENDING-BASED LEASES, CHRYSLER SAYS

2008-08-04T13:30:00.000-07:00

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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AUTO LOAN CUTBACKS MEAN CONSUMERS MUST SHOP AROUND

2008-05-16T13:08:00.000-07:00

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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CREDIT CRUNCH HITS AUTO LOANS, TOO

2008-05-13T08:00:00.000-07:00

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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THE TEN MOST EXPENSIVE CARS TO INSURE

2008-05-13T07:56:00.000-07:00

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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CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO

2008-05-01T09:34:00.000-07:00

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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HOW TO GET THE BEST AUTO LOAN RATE

2008-05-01T09:33:00.000-07:00

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.

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GET FINANCING BEFORE GOING CAR SHOPPING, SAYS EXPERT

2008-05-01T09:32:00.000-07:00

April 9, 2008

GET FINANCING BEFORE GOING CAR SHOPPING, SAYS EXPERT

Many new car buyers are tempted to take the first credit-card company loan offer that comes their way -- or even turn to dealers for financing. To financial specialists, both are real no-nos.
According to Terry Jackson of Bankrate.com, a buyer should have financing BEFORE ever setting foot in the showroom. That's because the interest rate most dealers offer simply can't match up to what you can find on your own.
And while a credit-card company may appear to offer a good rate, it's always advisable to shop around for the best APR possible. The first step: looking up one of the many auto loan providers online. Almost all sites allow you to make rate comparisons -- and some will even make you multiple financing offers.
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EXPERTS ADVISE TAKING A DETOUR FROM LONG-TERM AUTO LOANS

2008-05-01T09:30:00.000-07:00

April 2nd, 2008

EXPERTS ADVISE TAKING A DETOUR FROM LONG-TERM AUTO LOANS

Americans take almost two years longer to pay off car loans than they did 30 years ago -- a trend that has helped to bury many of us in debt.
Lured in by the prospect of lower monthly payments, many buyers have chosen to extend the length of their loans. This has cost them two ways: first, by encouraging the purchase of more expensive vehicles, and secondly, by increasing the amount of money (through interest) they'll pay long term.
The result is more debt, or in some cases, even owing more on the loan than the car is actually worth -- a condition known as being "upside down."
Instead of looking at lowering your monthly payments through extended loan length, experts say, pay as much as you can afford to up front. Also consider buying a more affordable vehicle. You'll be better off in the long run.Related Story

2008'S TOP AUTO BARGAINS: A BONANZA FOR LOAN APPLICANTS

2008-05-01T09:29:00.002-07:00

March 26, 20082008'S

TOP AUTO BARGAINS: A BONANZA FOR LOAN APPLICANTS

Car sales have slumped to levels not seen in a decade -- good news for both buyers and borrowers.Declining sales mean a rising number of bargains for the consumer; for the auto loan applicant, it could mean a lower down payment, and a better rate on down the line. Not to mention a load of discount financing, factory-to-dealer incentives, and rebates right now.The models with the deepest discounts may surprise you, such as the Mercury Grand Marquis, which comes with a rebate of up to $6,500. Other vehicles which made the list include the Chrysler 300C, the Dodge Ram 1500 and the Ford Explorer. One note: financing and discounts tend to vary by region, so check around for the bargains in your area.
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FED RATE CUTS A BOOST FOR AUTO LOAN APPLICANTS

2008-05-01T09:29:00.001-07:00

March 19, 2008FED RATE CUTS A BOOST FOR AUTO LOAN APPLICANTS Thanks to the latest rate cuts by the Federal Reserve, borrowers should see lower costs on more than just mortgages -- it should help make auto loans more attractive, too. According to a story in the Santa Rosa Press Democrat, rate cuts should help perk up auto loans. "Once there are more funds into the overall banking system, generally you see fixed rates start to come down," said Steve Stapp, chief financial officer for Redwood Credit Union. "There's more willingness by institutions to lend. Car sales have been down, so it's really an effort to stimulate buying by the consumers. Auto loans are fixed-rate loans and not tied to the prime, but costs for those and other fixed loans should ease with the overall boost to lending, Stapp added.
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BAD CREDIT NO LONGER AN OBSTACLE TO GETTING A CAR LOAN

2008-05-01T08:45:00.000-07:00

March 12, 2008

BAD CREDIT NO LONGER AN OBSTACLE TO GETTING A CAR LOAN

Thanks to the Internet, low credit no longer means you're automatically going to get the red light for a new car loan. In fact, far from shying away from subprime customers, a new breed of auto loan websites are actually catering to the bad-credit crowd. And the terms aren't as bad as you might think: interest rates on these loans can be as low as 12% to 16%, depending upon the type of loan you're seeking. Not only that, you can usually make alternate payment arrangements if you know you're going to miss a payment -- adding flexibility as well as a manageable APR to the loan. Plus, these bad-credit auto loans are often available in both secured and unsecured forms. The funds are right at your fingertips -- just do a search for "auto loans" and you'll see what we mean.
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