by Jeff on December 10, 2007
The national credit crisis surround the sub-prime mortgage market is now being felt in the automotive market as well. Toyota Financial Services is now offering 84-month (that’s 7 years!) vehicle loans.
Automotive News is reporting that the most common vehicle loan term is now 72 to 77.9 months, and that this category accounts for nearly 40% of all new-vehicle loans.
Additional findings from the report:
Longer Term Loans are NOT making monthly payments smaller.
Only buyers will excellent credit who are buying more-expensive luxury vehicles typically qualify for the 84-month term.
The average dealership loan is 7.6% up from 6.4% in 2004.
If you have less than perfect credit and are in the marketing to purchase a car, request a free auto loan quote from UnitedAutoFinance.com. Our dealer and lender network will help you get into a new car at a payment you can afford.
by Jeff on October 18, 2007
So… maybe overextending yourself on those shopping sprees at Macys and Best Buy wasn’t the greatest idea; or those six months out of work is finally taking its toll, and your credit report is there to remind you of it. If you are in need of a new car and have to borrow the money, all is not lost. The first step to securing a car loan with bad credit is to know the facts.
If you want a new car and are seeking a car loan, it is essential to find out exactly what your credit score is. You can do this relatively painlessly online through any of the three credit bureaus Trans Union, Experian, or Equifax. Once you have determined your credit score it is also recommended that you learn how to interpret your score and investigate strategies to improve it. Your credit score is not written in stone and can always be enhanced by paying your bills on time, and avoiding accumulating too much debt. Look to sites like Credit Scores Demystified and Understanding Your Credit Report for more information. [click to continue...]
by Jeff on October 12, 2007
Avoiding the most common auto financing mistakes
You are at the car dealership when you get that antsy anxious feeling as the salesman does his dance across the showroom floor to his “finance people”. You have filled out the applications, agreed upon a price and are just waiting (sweaty palmed) to see how bad the news might be; or if you are going to be able to get the loan at all.
Even with the recent increase in availability of 0% financing and low interest rates, if your credit is blemished or slightly blemished it could take a lot of work to secure a good auto loan that will work for you. That is why it is so important to do your homework. [click to continue...]
by Jeff on October 1, 2007
In a world were the Credit Score has become the mystical Mecca of all numbers, and a powerful one! It is important to know what yours is. When you go to purchase a vehicle…what should your credit score be for approval on car loans?
In doing research I found that if your credit score is above 680, you are considered a “prime borrower” and will get a good APR on your loan.
If your credit score is below 680, you are “sub prime”, and will pay much higher APR on your loan. Below 550, you can forget about any car loan. Which one are you?
Experts say at carbuyingtips.com a dealer shouldn’t know more about your FICO Score than you. Get yours now. In 2001 it became possible for you to get your own Beacon FICO Credit Score when you get your credit report online. Congress fought hard for your right to get at your credit score, so why not use it?
Previously lenders kept this beacon score secret from you, so they could charge you higher APR. Get your Credit Score so dealers who run your credit report can’t lie and say your score was low just so they can charge you higher APR. This happens all the time, and now you must use your power to stop it.
Where to get your credit score: Online from Experian, Equifax or TrueCredit.
So what was your credit score? I hope it was better than mine!
Credit score myths:
“I’ve never missed a payment. My credit score must be high!”
This could not be more wrong. Many people get upset when they get their credit score and find out just how low their credit score is. Sure paying on time is one of the best things for your FICO score, but it’s only one of over 100 variables making up your credit score. Having many open accounts does just as much damage to your credit score, as there is potential for you to run up your credit limit on all your accounts. People with good credit tend to have too much credit, and too many old accounts that they no longer use. Lenders view that as a risk. When I got my score it was ok, but needed improving by closing half a dozen computer store and department store cards which I no longer use, but they were dragging down my score.
For more useful info. check out this article at edmunds.com.
