Subprime Auto Loans are Increasing

Top car companies are enticing customers by approving more number of subprime auto loans. Companies like Chrysler and General Motors have used subprime auto loans to significantly improve their sales in the marketplace. Statistics suggest that about 20 percent and 16 percent of sales for Chrysler and General Motors respectively go to subprime customers having low credit score.

Over the past few years the auto sales in U.S.A have drastically reduced compared to the sales of last decade. The credit crunch due to recession was the main culprit in the loss of sales. Approval of loans for individuals with low credit score had become tight which resulted in fewer customers who actually purchased a car. In such tough conditions automobile companies turned towards various incentives to put a hold to the dropping sales.

Subprime auto loans are the auto loans provided to customers who have lower credit score than the required credit score. This helps car companies to get more customers and drive car sales. That’s the reason Chrysler and General Motors want more relaxation to approve subprime auto loans. Chrysler has already partnered Spanish bank Banco Santander to provide auto loans to customers who don’t qualify for prime loans. This is good news for all the customers having low credit scores.

All these efforts are being done to boost the automobile sales. Gaining more customers will help individual companies like General Motors and Chrysler to generate more profits and it will also help the automobile industry to contribute more to the U.S. economy.                         Bookmark and Share


Toyota Recalls Fuel New Auto Safety Laws

The numerous recalls by Toyota have forced the United States Government to devise new auto safety laws to regulate the problems associated with these recalls. It aims to bring some impacting changes into the whole recall process. This would legally require all vehicles sold in the United States to be equipped with brake override systems. Brake override would assist drivers in countering the effects of unintended acceleration thus reducing accidents.

There have been over 6000 complaints registered against Toyota related to sudden acceleration over the last decade. These complaints also include statistics of more than 80 loss of human live. The new auto safety law has placed consumer safety the utmost priority and all measures are being taken to reduce the number of accidents.

The United States Government is planning to make it mandatory for all cars to have black boxes to record crash information. This installation would help in extracting relevant car accident data. However, experts are debating over the violation of privacy if black boxes are placed inside the cars. Anyhow, the new auto safety laws ultimate objective is to stiffen potential penalties against automakers. This will give the government more powers to demand a recall and push the car companies to meet new safety standards.

It seems the efforts to reduce accidents caused due substandard cars, will increase the budget of the U.S. Government. Now, we have to wait and watch how viable these new rules are if they are implemented.

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Auto Loan, Despite Bad Credit

One may feel that it’s very difficult to get an auto loan if you are suffering from bad credit. However there’s good news for customers as numerous companies have sprung up who help you get auto loans even though you are suffering from bad credit.

Yes, now individuals who dream of owning a car can turn them into reality. Companies offering bad credit auto loans can help you fulfill your dream. Banks offer auto loans to only those who have sound credit history but they do not offer loans to those individuals who have bad credit history. In such situations these individuals can turn up to companies who offer bad credit auto loans.

These companies may charge you higher interest rate but they are ready to provide you bad credit auto loan with a simple and easy process. Really, these kinds of services rendered by companies who offer bad credit auto loan has made the dream of the individual having bad credit come true.

In case if you have already taken an auto loan and finding it difficult to pay your auto loan then you can go for auto loan modification service. For the past fifteen years, the Modification Specialists- Auto Relief Group have been helping consumers in all aspects of the car and financing business, and due to the current recession, have decided to dedicate themselves to assisting consumers renegotiate their car loan or lease, avoid repossession and maintain ownership of their vehicle by working directly with lenders to restructure loans, extend terms or reduce payments.

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A-Z steps involved in “owning a car can be done online”

Usage of computers and internet has increased to an extent wherein customers not even search for products and services online, but they purchase through internet too. Few years back no one would have thought that we can buy tickets within seconds without even waiting in a long queue.

If you are planning to purchase a new vehicle then your entire process can be done online. The initial search for the latest models of automobiles can be searched easily. You can make your selection among the wide variety of cars available online. If with that, you need to find information about auto loan and the list of banks and financial institutions providing such loans, then again you can get it all over the internet. There are websites known as loan calculators and they can actually calculate the amount of payment you will have to make for a specific time period which will help you plan your expenses.

After purchasing your car and availing for a loan, there are chances you might feel that you are paying a high interest and you are unable to manage your expenditure. If so then there are options of refinancing and loan modification. Information about these two options is also easily available online. Companies providing loan modification services and refinancing services are putting the details about their service online which helps customers to view, analyze and select the best service provide thus making the deal between the two profitable for the customer. This way you can avoid repossession and become the proud owner of the vehicle.

Thus, A-Z steps involved in owning a car can be done online. All you have to do is just click that mouse.

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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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Improve Your Credit Score with Poor Credit Auto Loan

Banks and financial institutions usually look for healthy credit score when an individual approaches them for an auto loan. Credit score is a number representing whether the borrower will pay his or her debts. It is used by banks and financial institutions to evaluate the potential risk involved while lending money to customers. So, if an individual has low credit score, lending companies will be reluctant to provide auto loan to that individual.

But low credit score can be mended with the help of poor credit auto loan. Poor Credit Auto Loan not only helps you get an automobile of your choice but also helps you improve your credit score. So, if you have been denied an auto loan due to your bad credit score, you can go for poor credit auto loan.

Poor credit auto loan doesn’t take the credit score into consideration, as it has been specifically designed to help people with poor credit scores. However, lenders charge high interest rate on these poor credit auto loans which directly corresponds to the risk involved with the borrower. Some people may think paying such high interest as a disadvantage but if pay your loan in time your credit score will be improved. And, once this is done banks will be more confident to provide regular auto loans to you in the future.

Suppose you have already taken an auto loan and finding it difficult to make the monthly payments, you can go for auto loan modification. Auto loan modification specialists help you renegotiate your auto loan with the lending companies and lower monthly payments.

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Important Things in Auto Refinance

Auto loan refinance is one of the best ways to lower your monthly car payments. In auto loan refinance a new loan is made to substitute the old loan. The objective is to get lower interest rate in the auto refinance thereby saving money. The whole process of auto loan refinance is much simpler and faster compared to home refinancing. However there are certain requirements in order to qualify for the auto loan refinance.

Many auto loan lenders look for certain criteria before refinancing the auto loan. They are: The borrower should be a current U.S. citizen, should have a yearly salary of 26,000, should posses a valid driver’s license, should have proof of current auto insurance and should be at least 18 year old.

Once you have decided that you are going for auto loan refinance there are some important things which should be kept in mind. First of all the borrower applying for the auto loan refinance should be the same person who got the old loan. Also the names on both the loans should be spelled exactly the same to avoid any discrepancies. Additionally, all the information provided should be consistent and should match all the details in the old loan.

The main idea behind auto loan refinance is to save money by getting lower interest rate on your new loan. So it becomes very important for a borrower to choose a lender who provides the lowest interest rate and helps you save the highest amount of money.

Auto loan refinance can definitely help you save money, besides it can also help you improve your credit score. One more option to improve your credit score is that of auto loan modification.

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