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Car Loan Value – What’s Your Car Really Worth

Actually, the car loan value is considered important since you can use it to the maximum amount that may be financed either on a new car or used car when you purchase. The car loan value is designed or established in order for the lender to limit the amount in financing on a depreciating asset such car.

The lender must be aware of the loan amount which extends to borrower on a particular car for the reason that a loan for an amount is written greater than a car or vehicle’s true market value increases a buyer’s likelihood to default on the loan.

Before you purchase a car through auto loan, it is wise to know first the car loan value before you search for a car of your needs or want. It is a smart idea to know the car loan value first of the car you consider to purchase either new or used. The fact that whether it is old or new, it really doesn’t matter since car is also an investment but not for life time and you also have to consider your monthly budget when you avail for a car loan.

People know that car is necessity but if you have more than 3 cars then that is another story and can be considered as luxury. As long as the car is in good condition, run smoothly and not really out model. The car values vary in different regions and by determining the value of a new auto loan, the price receipt is taken into consideration and use as proof.

The car loan is assessed on the base of the cars and model, safety records and mileage of the car. Although there are certain consideration which include the manufacturer’s suggested retail price and add- on features such as audio, alarm, air bags and others.

As borrower, you also need to know the interest rates of the auto loan you are having and the down payment needed. There are many ways of determining auto loan value, take note that car loan value is not only for used cars but can also be avail in a new car. For sure when you have your car loan, the lender requires your credit score which is mostly the key factor in the size and expense of the loan you will receive.

Most lenders which include the banks, traditional lenders require higher credit score in order to qualify your for a low cost car loan and if ever your credit score is lower, then you need to wait to have your credit score go high before you can purchase a car through car loan.

Determining the car values in used, its age and conditions:

  • Date of the receipt or invoice
  • The model and brand
  • The mileage of the vehicle
  • Age of the vehicle
  • Any strained or ripped in the interior
  • Any scratched or dented in the exterior
  • Car engine condition

Usually the loan value on a new car is equal to the car’s MSRP or dealer’s price invoice and that depends on the lender. If ever you loan requires you to a finance with an amount that is over 100% of the invoice price, then expect to face a higher interest rate or you may be required to have a down payment.

For a used car, calculating is more complicated compared to a new model since with used cars, the lender base their loan valuation on the fair book value. Usually this may result to limited total amount that can be financed on a used model. Take note that car loan value is calculated differently by each lender.

Great Tips to Choose a Car Loan

Every car is much more than a four-wheeled automobile. It’s owner’s glory, passion and a source of great admiration. Yes, a car is not just a means of transportation. It’s America’s pride and its ultimate ecstasy.

When one sets out to buy a car, several things are to be considered. Most people have an idea of what car to buy. But, there is confusion and dilemma when the topic of car loans comes up. This article will give you a detailed understanding of the many auto financing options available with you.

>> Money Before Everything Else <<

It is so true. You cannot venture out for buying a car when you have no idea about your finances. If you think car loans are going to do everything for you, think again. You will have to manage down payment and also ensure regular payments. Car loans are just to provide ease in buying.

Finding that perfect car loan requires you to carefully put together all your income and expenses and then preparing your budget. You will have to consider your savings and choose something that will not give you financial trouble.

>> A Plenitude Of Options <<

Everything depends on getting the information that suits your situation. So, don’t settle for the first financing option you get. Don’t just stroll into your local dealer’s office or your neighborhood bank. You must first do a complete research and analyze your condition and needs.

To help you make a good choice, here’s all the information about car loan types. Check out all the advantages and disadvantages of every option. It will help you make a wise decision.

>> Dealership Financing <<

A car loan with a car from the same yard- seems too alluring to ignore!

Most Americans choose dealership financing because it offers a one-stop solution. Dealers offer loans for new as well as used cars. You must know that most dealers are link between you and the lender. Such dealers won’t themselves lend you money, instead will sell you loan application to lenders.

This option is convenient but make sure that dealer is not charging a high interest rate. For that, you must research and be wary of any red flags. Also, don’t opt for any add-on if you don’t feel their need. It will help you reduce the cost.

>> Personal Loans <<

Banks and financial institutions offer loans for almost any purpose like buying a personal item or even a holiday trip. You can avail personal loans for buying your dream car. Now, this type of financing is useful when you need a loan for a smaller amount like $15,000.

>> Car Leasing <<

This is another option for you. When you lease a car, you only pay for the cost of using it. The biggest advantage with leasing is that your monthly payments will be significantly lower than the usual car loan payments.

You don’t have to worry about down payment and the lease agreement will get over in two-three years. You always have the option of buying the car at the end of lease agreement.

When you go for lease financing, don’t forget to negotiate the car price. Most buyers think that one must pay the full sticker price which is wrong.

>> Equity Loans <<

If you are one of those few lucky people who have sizable assets like a house, you can go for equity loans. You can avail a home equity loan by using your home as collateral.

Although the rates are lower and the interest is tax-deductible, there is the risk of losing your home.

>> Credit Cards <<

Though it may sound unusual, but there are many who opt for this method. A credit card can help you buy a car for a smaller amount like $10,000. You must have a low-interest credit card. With large competition, getting a low-cost card won’t be a trouble for you.

The only thing is that you will have to restrict other purchases on your card. Also, most credit card companies charge a 3% processing fees. If you are sure of paying this charge to the dealer, go for it.

>> Car Loans <<

This is as popular as dealership financing, if not more. In this type of loan, your car is used as collateral against monthly payments.

It is very good option if you make regular payments. The only thing that you need to keep in mind is that you won’t be able to finance a car older than six/seven years.

>> Online Car Loans <<

This type is just the blend of car loans and the internet. With technological advancements, you can get everything on the net and car loans are no different. Online lending companies have a large network of lenders and dealers who bid for your application. All you need to do is fill a simple online application form.

As there is a wide network, getting a loan is relatively easy. Also, the convenience of availing a loan without moving out of the house is very tempting.

You should only be concerned about the company’s reliability. You can check the website’s safety by going through their security certificate. Don’t go for a company that charges for loan quotes because there are many reputable sites that offer free quotes.

How To Choose That Perfect Car Loan?

Just go over with a fine-tooth comb.

Once you decide on the type of car loan and apply, it’s time to scrutinize the loan quotes. Loan payments are important but it shouldn’t be the soul of your decision. There are several factors which are equally important. Before you rush to your decision, take a look at these variables.

Loan Term

Your loan term will have a huge impact on your loan. A longer loan term will mean that your monthly payments are smaller, but you may eventually be paying more interest rate. It is advisable that your term should be in accordance with the useful life of the car. Your loan should get over before the life of car to avoid the risk of an upside-down loan.

Interest Rates

Interest depends on factors like the loan amount, loan term, credit score, financial condition, etc. One important tip to lower loan rates is by making a substantial down payment. This will reduce your loan amount and also instill a sense of faith in the lender.

APR

The Annual Percentage Ratio will tell you about the total cost of the loan including all fees and charges. Most borrowers consider just monthly payments. But, it is impossible to compare different loan quotes with different loan terms. When you compare two loan quotes with the help of APR, you are taking into consideration all the variables.

Clauses

You must compare loan quotes on the basis of the clauses in the loan agreements. Few lenders prohibit you from refinancing your car loan for the first few months. Some lenders also offer zero percent financing for the first few months only and then charge a floating interest rate. So, check for such clauses which may cause problem in the future.

Charges And Penalties

Check the loan contract for origination fees, annual charges, prepayment penalty and penalty for missing out on a payment. Choose a lender that has lesser fees and doesn’t charge you for making early re-payment. The latter will be useful if you decide to refinance your loan.

Payments

It is important to know whether you are supposed to make payments weekly or monthly. If you can afford monthly payment, don’t consider any other option. This is so because it will give you the choice of making regular payments without any undue financial restraints.

Once you compare quotes on these factors, you will definitely get a winner. Choosing your car loan by this method may take time but what matter is the ease in making payments. Every factor is important in making your life simpler and your car buying experience more pleasurable. So, memorize these important tips.

Owing a car is a dream for many, but one who takes a wise decision can fulfill it in true sense. Car loans won’t be a trouble if you consider your needs and financial condition. Remember a good decision comes with a thorough research process.

All the best for choosing the best!

How do I Start an Internet Business and Maintain my Full Time Job?

Many individuals ask themselves – is it really possible to run an online home business part-time and still continue their full time office job. The answer to this question is Yes. Many people wonder, How would they make the time? It’s just too much to do all at once, How could someone manage all of this? All of these questions and comments are involved in juggling an outside job and an online home business, but the main to keep in mind is that it is possible – but are you capable? These are three important things that you would want to keep at the top of your head if you to be successful.

What really matters is you must have the desire and drive to have an online home business. If it is your wish to maintain your current day job and at the same time start an online home-based business you have to be really focused on being able to do so. If you do not want it bad enough and don’t have the necessary drive you would be setting yourself up for failure. If you think you are ready to make a commitment to do both jobs and are prepared to do whatever it takes to maintain them both,then are defiantly moving in the correct direction.

What this means simply is that you must use all the available time you have from your full time job and use it to your online home business, this might mean cutting back on normal everyday recreational activities like going to dinners, the movies and other similar activities. Holidays as well as weekends can be used working on your online home-based business. As long as you are prepared to use all your free time on your online home business it would be possible for you to do both. It all comes down to you possessing the drive and desire to do what it takes to get what you want.

Nowadays there is never enough time; everybodys’ daily routine is all about juggling, stretching and rushing what ever free time they have. This is the same when it comes to juggling a home-based business and you regular job you, have to be prepared to make the time. After investing the time and effort to find the best home business to start, you would not want to fail by poor time management.

Patience, Time and Drive all go hand in hand when working an online home-based business and a regular outside job, you must be efficient and manage your time wisely. Keep very focused on your plans and goals. Don’t lose track and have patients because being successful does not happen easily and not everyone you meet will have understanding or patients. You can have a full-time job and run a successful online home business as long as you are prepared to make the effort and do what has to be done. If you would like to know more on this topic check out Dotcomology [http://MakingMoneyFromHomeOnTheInternet.com] the art of making money with your home business.