Auto-E-University » Car Finance

Scrappage scheme extension is good news for car loans

admin — Thu, 18 Feb 2010 21:04:18 +0000

The end date for government’s Scrappage scheme has been put back a month to the 31^st March 2010. Good news for anyone buying a car (especially those with a less than perfect financial history), the Scrappage scheme offers upwards of £2000 towards a now car when you trade in your 10 yrs+ banger. In a bid to secure your business, manufacturers are doing their bit to lure you in with tempting deals on certain models.

Take Ford; if you’re in the market for a people carrier, or you could be persuaded to be, they’ll lop £5000 off the price of a Galaxy Edge. Volkswagen have taken over £4000 off all Passats, Citroen are being highly competitive with nearly £8000 off Xsara Picassos and Volvo aren’t far behind that figure with close to £7000 off the XC90 SUV. Mitsubishi have come up with a unique offer; they’re offering a standard Scrappage deal on all cars up to five years old.

So, if buying a car means borrowing money to do so, it’s easier to get a loan at good rate, even if you have bad credit, when the amount you’re borrowing is less. Or, it means you can buy a better car; safer, more efficient or bigger – whatever your idea of better is!

With the end of March fast approaching, every vehicle manufacturer is going all out to capitalise on the Scrappage scheme, buyers are being offered even more in a bid to boost the flaccid car market. It might be all doom and gloom in the news, but for buyers, it’s looking rosy for another few weeks still with money off coming from the government and manufacturers.

Find out more about car loans.

Ways That You Can Obtain Car Financing

admin — Fri, 04 Dec 2009 00:15:29 +0000

There are many ways that you can obtain car financing. Most of us think about the traditional financing with a bank. In other words the person goes to the bank for a car loan; has the bank check out their credit history, and then either approve or turn down the loan. This is what is termed as direct financing for a car loan. You have actually spoken with the bank representative. There is a method called online car financing. Rather than going to the bank you will actually go online and search for car loans. This type of loan can be through a bank or through an intermediary. The thing to note about online car financing with an intermediary is that they are going to want to get their money from you as well. This can raise the interest rates or the loan amount a little higher than you are willing to go.

When you are searching for online car financing you need to research the company thoroughly. For instance why does this company promise you lower interest rates than your favorite bank? Why can this company give you a loan when no one else would for a car? You also have to consider the amount of the loan you need. You may find that simple failure to accept a loan application for car financing through a bank is that you have gone above the actual income that you make. In other words if you can’t afford the car you are trying to get financed for the bank or lender is going to turn down the application.

Online car financing has helped many individuals find the right loan for them. What you have to keep in mind is that not everyone on the internet is trustworthy. This means there are scams and you may not always find the best deal, even with the advertisement. You just have to be careful. When you do find a company that you can deal with then you can start the process. If you go with online car finance you should also realize that you are going to have to close the car loan before you actually approach the dealer. Most often a person with a loan not through the dealership must come with the check in hand. Sometimes the dealership will wait until the bank has passed the check, but it will be determined by the place you are going.

You should always check the facts and the paperwork that you are sent from the company before you sign the papers and send them back. They are legal documents and if something isn’t the way you discussed it you need to make sure you have brought that up and gotten a revision, especially with online car financing where you never see the person you are dealing with. There are many ways to obtain financing and it is up to you to be responsible and make the wisest decisions regarding your financial situation.

Car Finance UK – Easy Way to Finance Your Car

admin — Wed, 02 Dec 2009 23:47:24 +0000

Today car becomes very essential for every human’s life. There are many people who have their own car but many people don’t have a car. They have not enough credit to buy a new branded car so they need car finance to do so. Car finance UK is so simple but it is not simple to get it in cheap interest rates. So that when you search for car finance UK you should try to get financed from that company who can offer you a cheap rate loan. It is necessary to minimize your burden on your finances and repaying ability.

In UK there are various lenders who offer cheap car finance for new and used car. You should try to get various loan quotes from various lenders and have to compare it for cheap rate finance before searching for car finance UK. There are a large numbers of lenders who offers cheap car finance in UK. It is suitable that you should not recognize a lender’s propose without comparing the car loan quotes. Before financing a car you need to check all the documents and the deals that are offered by your car financier. It would be your best decision to shop around for the best loan deal.

Many people can not have enough cash or saving to buy a car but they need car also so they wander for finance companies to get their dream car. Some of them get cheap rate finance but some of them pay higher for their finance. So they need to search online for various car finance UK companies. There are a lot of car finance websites available in which they provide various scheme and their other information related to car finance. So don’t wander hither and thither and go online search for best car finance UK.

If you have a bad credit history and you are unable to find car finance company that offer cheap rate finance, you should go online and search a website that can fulfill your need. For guaranteed cheap rate on car finance UK, prefer borrowing it aligned with your esteemed asset like home. So pertain to an online lender for cheap car finance in the UK. But ensure that you have compared well the online financier so that you have a proposal of how cheap rate loan can be getting in the UK.

Used Car Finance – Dreams Do Come True!

admin — Fri, 30 Oct 2009 11:33:20 +0000

Most car financing companies are also offering used car finance these days, for those people who cannot afford to buy a swanky new car! For instance, fresh graduates too need a car to commute to and from their first job premise. Although public transport is there, it can be really cumbersome standing in queues at the bus-stop. And it doesn’t give you much flexibility in changing your schedule around if required. In such cases, online car loans are available for purchasing used cars.

Why Would You Need To Buy A Used Car?

You can be fresh out of college, with no savings in your name. Most companies providing car loans UK require that you make a down payment of at least 20% of the car’s total value. This would be extremely difficult to manage for an expensive new car, if you are on your first ever job! That’s when used car finance comes in handy!

Secondly, it might be possible that you have a very low credit rating, due to bad payment habits in the past. This might make it impossible for you to get a large amount of loan, which would be required to buy a brand new car. In such cases, you can get used car financing, as a poor credit car loan, at very competitive rates, although they will be definitely higher than the ones offered to people with good credit rating.

Some Points To Note About Used Car Financing

A very important point about getting used car finance is that a used car loan is generally available at a slightly higher rate of interest than a new car loan. There are several credit unions and local banks willing to provide the necessary funds. But sometimes, you can manage to find better rates from private lenders and other smaller lending institutions. The internet would be a good way to search for cheap online car loans for used car finance.

Second, most car loan companies require the car to be not more than 5 years old as it decreases the resale ability of the car. Besides, paying the 20% as down payment gets you an approval faster, along with lower rates. You can even opt to take a secured loan against some house property or your car title, which would reduce the rates even further, but might delay the approval process slightly, as paperwork would be needed. If selected wisely, used car finance can even get you a better deal on the car, as you will be able to pay upfront with the blank check in your hand.

Myths and Reality of Guaranteed Car Finance

admin — Wed, 28 Oct 2009 21:53:15 +0000

Guaranteed car finance companies have helped thousands of customers who have different past credit problems to finance the purchase of a new or used car. Some people need guaranteed car finance simply because they have no credit history. So, thank goodness for guaranteed car finance arrangements whereby you can find a car you like and drive it out of the showroom within minutes, right? Maybe not. You might want to look a little closer before signing those papers…

Rates

As usual, the rate you are offered will depend upon your credit history. If your credit history is bleak at best, then you can bet your quote will include an interest rate that is sky high upon “approval”, and be careful with that as well, because the rate advertised is not always the rate you will get. I’ve heard of some guaranteed car finance companies coming back with an interest rate as high as 15% and higher! That’s like credit card interest on a larger principal amount. Car finance rates are determined by the percentage or cost added onto the loan by the lender and the dealers get paid a commission on higher purchase deals and will try to charge a rate that is more beneficial to them, and not you.

Payments

Once you have the purchase price of your automobile and are working with the interest rates, be sure to figure the total monthly payment that you will be paying, and determine if it will work with your monthly budget. Remember that just because you may have a good purchase price and acceptable interest rate, if the monthly payments are too much for you to handle comfortably for a number of years, it may be best to pass. Also, if the payments do seem to be too high, don’t let the dealer talk you in to stretching out the financing for years and years. Remember that a car loses 60-70% of it value in the first two years. So if you sign into a loan for 7-8 years, you may still be paying for the car when it is a heap!

I understand that your credit record may not be perfect at all stages in your life, many things can happen to leave you with a bad credit history. If you do not have the savings and cannot borrow from friends or relatives, you will have to face the possibility of applying for a car finance loan and are likely to find it more difficult to obtain approved car finance with a bad credit history: difficult, but not impossible.

Bottom line, anything that claims to be “Guaranteed Finance” or “Bad Credit No Problem” is likely to be out to devour your bank account. My suggestion is to save a little money, and buy a car with cash. It may not be the sports car you’ve always dreamed of, but it will get you from point A to point B until you have a chance to repair your credit, and save up some money to buy that sports car. If you cannot wait and simply must get a guaranteed car finance loan, be careful, shop several different places, and go with the best proposal.

Car Finance Uk: Cheap Funding for Buying Cars

admin — Wed, 28 Oct 2009 08:23:16 +0000

This time onwards, you will get never disappointed about your inability to buy your chosen car. In fact, you are able to buy any car now. UK is the land of everything possible and that’s why car finance UK has come up this time, to make your buy easier. Car finance UK speaks that an easy finance is available for buying car now. It is cheap in rates and affordable terms are attached with it. Benefits are clubbed together only to make your buy easy.

Car Finance UK is available in all the regular formats. It is available both in the secured as well unsecured format. You have to pledge your car as the collateral in secured car finance UK and this collateral is only to assure the lender that his money will be paid back timely. Not in any way this means staking your car. The lender can take over your car only when you fail to repay the amount. And repayment is easy here, because, in return of your collateral, the lender gives you the finance at cheap and affordable rates with easy, flexible terms. Unsecured car finance UK is again, no less. You can grab the unsecured car finance without pledging any collateral. However, for this you are to pay a slightly higher rate of interest.

The amount in car finance UK generally stands for a whopping 90% to 100% of the requirement of the borrower and the term flexes between 2 to 7 years.

There is no bar in car finance UK. Car finance UK does not put any snag on the way of borrowers with bad credit history. Only, to avail the car finance UK, bad credit holders have to pay a rate that would be moderately higher than the other regular options of car finance UK.

And, online is the best way to go for car finance UK. Car finance requires you to apply only through a simple and easy application form online. The loan approval takes less time here and because a large folk of lenders online, you can easily grab the best of car finance quotes. Choosing the right deal out of them becomes an easy task for you then. Car finance, thus, with its easy options drives your car dream home.

A Guide to Buy a Used Car Finance

admin — Wed, 28 Oct 2009 05:01:14 +0000

Making sure to finance a vehicle properly will greatly reduce the cost of one next used car. Auto Financing is a general term meaning how one pays for a used vehicle. In most cases, used cars are financed by taking out an auto loan to buy. This involves getting a credit check. By checking ones credit history first, and answering all the tough used car finance questions up front, one would be more prepared to handle issues at the dealership.

Although one can take out a bank loan to ones Used car financing, many people like the convenience of getting a car financing through a dealer. People can walk in, choose a used car, fill out a credit application and drive away in a used car. They can do this at night or on the weekends when banks and credit unions are closed.

Say for instance, if an individual is considering a used car finance for £17, 000, make sure one knows what all the options cost and add on the ‘destination fee’ (all cars include a destination fee, typically between about £200 and £500). Once one has this total, find out what ones sales tax is. If it is 6%, convert it to a decimal number by adding ‘1’ in front of the number. So 6% becomes .06. Now use the following formula:

Cost of the car + option + destination fee X sales tax.

In the instance, let’s say that the car is £17, 000 and the options total £500. The destination fee is £350.

£17, 000 + £500 + £350 = £17, 850.

To get the sales tax, multiply this by.08:

£17, 850 X .08 = £1430.00

Added to the cost of the car, an individual arrives at the grand total of £19, 280.

Considering the above mentioned imaginary numerical into account, borrowers are advised to be in touch with the current market analysis. The instability in the market at rates helps borrowers get financing at low rates.

There are galaxies of sites, and so do lenders, available online for the used car finance. The need is only of right selection of a lender, who can provide all the financing facilities at easy terms and conditions.

How to Negotiate Car Financing

admin — Sun, 25 Oct 2009 15:26:52 +0000

Have you ever wondered if there is some way to negotiate car financing like you would the car deal? Well in part there are a few tips you can follow to help you negotiate for a car loan. In this article we will discuss a few of those as well as look at a few options you have.

First when you negotiate car financing you need to know exactly what your financial status is, what does your credit history display, and of course what are your credit scores. You have to think like the bank. What will the bank be looking for in giving you car financing? They are going to want to look at your identity to make sure you are who you say you are. They are also going to want to look at a pay stub or two to determine your monthly income. The bank is not just going to believe the application you have filled out. They are also going to determine what risk you will pose to them if they allow for car financing. With car financing it is all about the numbers, and not about the emotion. Many individuals make a mistake in thinking it is personal when it is a business transaction. In other words you can’t negotiate at all if you don’t act professional and responsibly.

When you consider negotiating a little on the car financing you are talking about the interest rate, and of course the actual amount of the car financing you are going to need. Most often we are going to try for a car loan that will get us the car we want in the hopes that the interest rate and term of the car loan is going to be correct enough to get the monthly payments we are looking for. Anytime you buy a car you have an idea of just what you can afford in a month as well still have a little savings left over. You want to make sure that the number you are aiming for will be obtained.

Sometimes with car dealerships they will only offer a certain length for the car loan such as sixty months based on your credit history rather than offering two or three years instead. You can try and negotiate this while negotiating the car financing contract. You can also learn what the interest rates are. In other words what is the interest rate on a car loan typically average right now? What does it average if you have less than stellar credit? Knowing these numbers helps you to negotiate for a better interest rate or go elsewhere to a bank willing to give you that better loan. You have the option of going through the car dealership, a bank, or an online resource regarding the car financing. You just have to choose the option that will work for you. You have a say in the ultimate decision of which loan you choose or if you must wait a little while for a better deal.

Secured Car Finance: Secure Unlimited Desire

admin — Sat, 17 Oct 2009 08:49:57 +0000

There are many advantages of the secured car finance, in which getting a lower cost is very important. If an individual has credit history in excellent position or good the rate can be reduced. Lower interest rate reduces his monthly payment for the secured car finance instalments substantially so that the individual may complete ease in repaying the secured car finance.

Secondly, under the provision of Secured Car Finance, borrowers have good chances of availing greater amount for buying a new car. The amount of secured car finance varies person to person and lender to lender. It depends upon the property put as collateral. Generally, the amount sanctioned under the provision of secured car finance ranges in between ₤3, 000–₤75, 000. Notably, the secured car finance is short term financial provision and it is supposed to be returning it in.

For provisioning of the secured car finance, there are many lenders available online and offline. However taking stock of the borrowers’ instant requirements, the lending authority has started offering secured car finance. The need is only of right selection of lender, the lender who may offer this secured car finance on right terms and conditions. On accessing online, borrowers can have many options of lenders, cull some of them. Go through their policies and plans they have configured. And make your secured car finance according to your budget.

Followings are many benefits of secured car finance:

• Good amount of money

• Low interest rates

• Affordable monthly instalment

• Flexible repayment terms and conditions

• Minimal paper work

• Faster processing

• Easy approval

• For all including individual with bad credit history

Collateral is a portal to avail the benefit under the provision of secured car finance. With the help, borrowers’ dream of shining car they wished is materialised.

Car Finance Uk: Enable to Boast of Driving Own Car

admin — Wed, 14 Oct 2009 07:25:46 +0000

No one can perish his/her passion. You always dreamt of only those things that cushion you more and fetch pleasure to make your life comfortable. A desire to buy a car can also is one of your passions here that always enforce you but, hardly have you funded the appropriate funds with you to covert it into reality. Since, market has always run with the borrowers demands, finances are provided even for such demands. Now one can easily find the right financial back-up at their car deal in the form of car finance UK.

Car finance UK has provision to provide you loan amount according to your requirement. The loan amount is decided here according to the price or the model of the car in which 90 to 100 per cent of the total cost your car price is financed here as loan amount. You have to repay the amount normally over a period of 2 to 7 years.

You have the option here to avail the facility either in the secured or unsecured form. For the secured form normally the same car or any other fixed asset is kept as collateral whilst the unsecured form is collateral free. The unsecured form is provided assessing your repaying capability.

However, normally your repaying capability is thoroughly checked while this car loans UK is provided to you. The installment is generally fixed as the 20 to 25 percent of your monthly income that is ideal for any one’s financial condition. You should also take account of other charges while availing this loan, as these too are born by you. These are normally maintenance, insurance, tax etc which are paid by the borrowers in addition to monthly installments.

Car loans are provided regardless of borrowers’ credit history. Borrowers with CCJs, arrears, default, can also get financed for buying their dream car, but with a slightly higher rate of interest.

Internet is the best place to find the right lenders in very less time. At a time you can find various lenders with a simple click of mouse. Here, you come to get simpler processing that reduces the approval time and help you find a faster approval.

Car finance UK now helps you fetch even that desired car that is unbearable with your current financial condition. The flexible terms and conditions makes every one easily liable and help them take the taste of riding own car without taking agony for the costly prices.