Posts from the ‘Auto Loan Industry’ Category

Ways to Save Money on Auto Loan

An auto loan is a blessing for those who dream of owning a car and makes them drive their dream. Various kinds of auto loans have helped so many individuals turn their dream into reality. But unfortunately some auto finance companies are taking undue advantage of customers in the name of auto loans.

These companies target inexperienced buyers or the ones who are careless to go through a loan agreement. Most of them are borrowers who are in a hurry to get an auto loan, because they are suffering from bad credit or do not have any pre-established credit score. In this process they end up getting higher interest rate on the deal. The ultimate outcome of such auto loans with high interest rate is repossession of the purchased vehicle.

Customers should be very careful while taking auto loans from auto finance companies and see to it that they go through all the details provided in the agreement. Also customers should purchase a car that has an optimum cost with respect to their salary. They should carefully analyze if it is possible to pay back the loan in the specified time period with the specified interest rates.

There is a saying old is gold and this holds true even for auto loans. Companies having long experience in helping customers can help you get the best deal in your auto loan. If you are already suffering from high monthly payments, you can go for auto loan modification to save money on your payments. Auto loan modification helps you renegotiate your auto loan and lower your monthly payments or extend the time period for the payment of your auto loan.

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Good Times for Auto Loan Industry as Auto Loan Delinquency rates Come Down

According to credit reporting agency TransUnion, auto loan delinquency rates have come down as per its latest analysis for the first quarter of 2010. The agency says – Auto loan delinquency rates have dropped over 18% from the fourth quarter of 2009 to the first quarter of 2010. This downward trend is expected to continue in the second quarter of 2010 as well.

This is good news for the auto loan industry which suffered huge losses due to the global economic recession. The road to recovery after recession has begun and the auto loan industry can now look forward for a great summer ahead. Auto financing companies can expect more business as consumer confidence level continues to improve due to better economic conditions.

Financial institutions were reluctant to offer auto loans to customers unless they had high credit scores. This is expected to change now and lenders can be more confident while they provide auto loan to customers. This will not only benefit the auto loan industry but also the automotive industry on the whole.

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Auto Loan Refinancing

Are you in a dilemma whether to go for auto loan refinance or not? Well, if you are paying higher interest rate on your car purchase then you definitely need considering refinancing of your auto loan as one of your option.

Auto loan refinancing is one of the best ways to save your money. You could refinance your car loan and lower your payments to a great extent. While refinancing auto loan, the borrower chooses a different lender offering lower interest rate to refinance the auto loan and the borrower eventually pays off the current auto loan. Since the interest rate is lower the monthly payments are lowered and that helps you save a lot amount of money in your payments. This in turn helps you gain financial stability.

Say for example you bought a new car one year ago and the dealer told you that your auto loan would be 12 percent on a five year loan for a $ 25,000 car. You end up paying $ 556.11 as your monthly payments.

However once you opt for auto loan refinancing you can lower your payments to about $ 400 per month. That’s a saving of more than $ 7200 over the life of the loan. That’s a substantial amount of saving. Isn’t it?

To gain maximum benefit from auto loan refinancing you should refinance your auto loan early. You can save much more amount of money by refinancing your auto loan in the initial stages of the loan period than in the later stages. But it is very important to choose a lender who refinances your auto loan with lower interest rate on the loan amount.

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Emergencies can ruin your planned finances!

How about getting your morning tea at 12:00 hours and your lunch at late evening? This routine would be considered as terrible. So, to avoid such incongruity, everything in life should be planned. It is important that we know where we are investing, what you will do and where you go; so design your life in such a way to avoid any confusion or uncertainty.

When it comes to finances one need to be extra careful in handling money. An account of all; the daily expenses, extra expenses and any scheduled expenses are always necessary. However, how best you plan to keep your finances intact, it’s difficult to entirely secure it. Emergency or external factors may ruin or challenge your plans. A big emergency in form of natural calamity to secondary factors like shares downfall or loss of job etc. can leave you standalone.

To our rescue there are many funds in form of loan but what if you already own one? and are unable to bear its brunt. Would you take another loan to fulfill the requirement? Not a smart move, the move should be to smartly handle the situation and go for a loan modification.

Unlike home loans, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. So avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name.  What would be the best option? The best option will be to go for auto loan modification to make your payments low and rescue from this hassle.

How about getting your morning tea at 12:00 hours and your lunch at late evening? This routine would be considered as terrible. So, to avoid such incongruity, everything in life should be planned. It is important that we know where we are investing, what you will do and where you go; so design your life in such a way to avoid any confusion or uncertainty.

When it comes to finances one need to be extra careful in handling money. An account of all; the daily expenses, extra expenses and any scheduled expenses are always necessary. However, how best you plan to keep your finances intact, it’s difficult to entirely secure it. Emergency or external factors may ruin or challenge your plans. A big emergency in form of natural calamity to secondary factors like shares downfall or loss of job etc. can leave you standalone.

To our rescue there are many funds in form of loan but what if you already own one? and are unable to bear its brunt. Would you take another loan to fulfill the requirement? Not a smart move, the move should be to smartly handle the situation and go for a loan modification.

Unlike home loans

, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. Anthony Tribunella, the director of Auto relief group says, “Avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name.” What would be the best option? The best option will be to go for auto loan modification to make your payments low and rescue from this hassle.

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Stuck in auto loan soup!

After the recession many new cars are being introduced in U.S. market. With the outlook that money is flowing and consumer have purchasing power, thanks to the recovery of economic slowdown and some intelligent policies. People are going out there and buying their dream car, not only car but an American car. Yes, An Associated Press-GfK Poll shows that 38 percent favor U.S. vehicles while 33 percent prefer Asian brands, a significant improvement for U.S. automakers compared to four years ago.

“With all that said, the General Motors product line, the Ford product line, have just really been producing hit after hit,” said Gill, citing the Chevrolet Malibu and Camaro as current hot sellers. He says his sales are up 30 percent so far this year.

These are interesting numbers which confirms that both manufacturers and consumers see more interest in auto sector. While it was a nightmare last year where auto giants like General Motors had to be revived from bankruptcy. Many other manufacturers were just saving their face and hanging on for the survival.

However, while many of the Americans who had already opt for loans before the recession had a bad time managing their finances. Recently, Obama has introduced scheme to save homes under loan modification program. American should also be aware that auto loan can also be modified; to repay these huge payments.

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Beware of Loan Sharks

Loan is divided in to two categorize secured and unsecured loans. Secured loans are granted against pledging your assets. And unsecured loans are monetary in kind and are not pledged on your assets for example credit card, personal loan etc. While the loans before where very unorganized and there some disadvantages; as the lender used to leverage borrowers for unacceptable interest rates which was often extended to exploiting the borrowers.  Such kinds of lenders were called as “loan shark”.

A loan shark is a person/entity that offers unsecured loan at a very high interest rate. Not only this, the loan can also invite pressure like personal threats and which may add to to violence. However, these loan sharks hardly exist now but it’s important to be aware of such predators.  Today, the term “loan shark” is vastly associated with organized criminal setup dominated by mafias. A shocking figure reveals that 165,000 to 200,000 people are indebted to loan sharks in the United Kingdom.

Loan has become a very integral part of anyone’s life, when high finance is required. One can’t keep away from taking loan but it’s important not to get caught in this wrong side; though loan shark operations are negligible. It is always important to research and check the credibility of lenders and your ability to pay back the loan in time and at certain rate of interest. What if you obtain a loan and realize that it’s difficult for you to make high interest payments. Wait; still there is a good option for you and that is to go for a loan modification. Loan modification helps you to bring the interest rates low and also to extend the loan time period.

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Lending rates will go higher

It was due to recession, when Federal Reserve had lowered interest rates to help borrowers pay back their debts at low cost. However, with the improvement in economy, the lending rates are expected to increase. The cost of borrowing was quite low for the past many months due to the adverse effects of recession on American’s life.

Auto loans in March averaged about 4.4%, which was much lower than the 7.3% average back in March 2007, according to Edmunds.com, an automotive website. The lending rates will remain low for a quite a while as demand for auto loans is much lower than its supply. However, the interest rates will not remain low forever. It will increase with the improvement in market.

“When recession was at its peak, it was easier for us to negotiate loan terms with banks and other financial institutions/ lenders”. “It was easier to convince them that people are unable to pay their installments/ EMIs due to loss of job, income cuts, etc. However, with the rise in economy, people are getting their jobs back and banks can be rigid in changes the terms of loans. Hence, I advise to the people who require loan modification services to hurry up and sign up instantly for modification service. Recession recovery will take this full year.

Lenders hate wasting more time and money on “bad” deals and prefer to get constructive proposals that make sense. Hence, negotiation and renegotiation becomes easier, especially at times of recession. We understand the things people have been through during this difficult phase of recession hit economy. This is the reason why we commit ourselves to provide the best deal for you by lowering your monthly auto payments.

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