Question by : Why are the rates for longer new car loans less than shorter terms ?
Makes no sense to me.

average rates across the country…..

36 Month New Car Loan 6.32% 6.35%
48 Month New Car Loan 6.39% 6.41%
60 Month New Car Loan 6.43% 6.45%
72 Month New Car Loan 4.28% 4.46%
Im almost positive that 72 month loans have more defaults than shorter terms.

Best answer:

Answer by Judy
I noticed that at my credit union just last week.
Very interesting.
My only guess – they want you to make the longer loan.
More profitable for them, since it earns them more money.
Also, since the payments are smaller, maybe a person is less likely to default.
Maybe the shorter loan is more risky for them.
IT could be all about statistics.

It was the same thing for mortages.
The shorter ones had a higher APR – never, ever made sense to me.
Did the shorter one any way….
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Question by theprince_10: Current interest rates on used car loans?
Im in the market for a car. Of course Im looking to finance it. I was curious to see what kind of interest rates some of you may have locked in with a credit score between 720-850. About 18-23k financed for 72 months.

Best answer:

Answer by neil k
With the over priced nature of cars today you should be able to get VERY LOW rates definitely around 2-3 % but sometimes you often see people advertising 0% interest…. Hey they have got to “move those wheels”.

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Question by D-Loc: how do bad credit car loans work?
I want to buy a new truck.i came across an ad that says that everyone is approved, the truck i was looking at said 87 dollars a week. i dont have a very good credit score. how does this work, how much approximently will i have to pay every two weeks.

Best answer:

Answer by Veritas
Usually if you have bad credit you have to pay a considerable down payment..but if you pay 87.00 a week it would be 174.00 every two weeks. Usually people with bad credit pay a very large interest payment.
Ask them how much the interest payment is first before you commit yourself to anything.

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Primeway Federal Credit Union Auto Loan

Question by a.dubya: Where can I find the cheapest car loan rates?
With good credit but not very much history.

Best answer:

Answer by Drewkulele
Well, BankRate.com has a whole section devoted to car loans, so go check it out at the link, below, it’s pretty good, and it lists car loan rates nationwide…

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Question by Landon Parks: Car Financing?
I’m 18 (almost 19), I have no credit score and no co-signer. I do however have two, full time job that brings in a total of $ 2,400.00 per month. I live with my mom and dad, so I don’t have an official bills to pay.

Would I qualify for any kind of car financing? I was reading about this place called “Funding Way” and accoridng to there pre-qualify survey I qualify for $ 15,000 in fininacing… But id it REALLY possible for me to get finacning for a NEW car?

I don’t have a huge amount of money for a down-payment ($ 800 MAX).

Thanks!

Best answer:

Answer by samantha s
Your best bet is to talk to a bank (credit union or one that you have a checking or savings account at.) Ask them to help you out. Tell them that you don’t have any bills yet, and show them that you have steady employment. They may help you finance for a loan but maybe at a slightly higher rate of interest. Then head to a car dealer and show them you are approved and find a car you want, try it out, have it checked out by a mechanic and mom and dad (if you trust their judgement) and then offer the dealer 500.00 less than ticket price for the car and once they agree then use that 800.00 you saved up for downpayment for insurance and for tags, title, and tax and any inspections you may need done. Before you rush to a lot to get a car hit car.com and check out the cars then run it with nada.com to see the value of car. Find what you want first. Then call the insurance company you will use and have them quote you a price so you can see how much the insurance will be. It takes a while to shop for a car if you do it the right way. Good luck.

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Question by Crystal B: What can I do if I cant get approved for a car loan or financing do to past (now resolved) credit issues?
Ive tried nearly every car loan place and almost every bank within the Chicago land area Ive had credit issues but they’ve been resolved for about 3 years now but I can’t seem to get approved for financing my question is does anyone know of any car dealerships within the Chicago land willing to give a single hardworking mom a break and a 2001-2007 vehicle with financing and no money down????

Best answer:

Answer by metcalfmaintenance1
You have to contact those who gave you the bad credit mark and they’ll restore it if it’s been resolved.

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Car Loan Rates
One of the major things to think about when you want to purchase a new car is the car loan rate that is offered by the car finance company. It is important to car finance ratesby different companies so that you can make your decision based on how comfortable you will are with the rates.

A car loan rate is mainly affected by two things:how much you are borrowing and the term of the car loan. Although these seem usual points to think of before choosing a car loan rate, the process of calculating how much you should apply for and the repayments that you will pay can be a daunting task. This is where a loan calculator comes in.

A car loan calculator is an loan calculator that you can use to calculate the installments you will pay suppose you apply for a certain loan amount. The calculator has an easy-to-use interface, where you input data and it automatically does your calculations.

When choosing a car loan rate,the car finance company may allow you to borrow more for a number of items you may want. For instance, you may want the comprehensive car insurance, warranties for mechanical breakdowns that the car may encounter, on road costs, among others included in the rate. The lending firm will have to approve this motor finance proposal. If it passes through, don’t forget that you will still have to finance the loan over the same period as stipulated in the loan agreement.

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New cars sometimes attract lower car loan rates compared to used car finance. Also, the rates differ for secured loans and personal unsecured loans. Personal unsecured loans are charged much higher interest rates than secured loans.  If you decide to go for the secured loans due to their lower rates, you have to have enough money to pay for the car’s insurance, and you will also have to offset the loan if you sell your car. Some lenders do not offer finance for vehicles that are over 7 years, though.  The normal repayment period for the auto loan is usually between 5 to 7 years for most lenders.

The car finance interest rates that you choose may also be determined by where you intend to get your motor car from. Imported used cars are not liked by most car loan companies, or they have a very rigorous process for those applying financing for such. In such a case, getting a unsecured car loanmay be the best alternative.

When its time to choose a car loan interest rates, you have to be patient and do wide research. The bank or car loans companies may not be the best option.  This is because they usually come up with their interest rates based on different factors. For example, some institutions may price the loan based on the age of the car, while others may offer car finance low interest based on the strength of the application.

If you are not an ace in doing the legwork or researching on the rates offered by different bank car loans and finance company products, you can employ the services of a good car finance broker. A broker who is knowledgeable in car loan options and the prevailing rates at the market may ease your work and make your rate selection much easier. He should be able to compare the car loans interest rates and recommend different options that are best for you. Therefore, choosing a good car broker may also be a determining factor on whether your quest for purchasing a car will be fruitful or not. Also, they are the people who can recommend you the best banks or institutions to work with based on their terms of the contract.

Therefore it is important to compare different car loan rates available in the market before settling for one. You have to select a rate that you will be comfortable with, that is one that offers you a repayment period and terms that you can work with. A good car broker can be a vital stepping stone that will enable you get a good car loan rate deal.

The most difficult and most challenging problem that confronts people concerning auto financing is where and how to get auto financing. Most people who fail to secure and get approval for their auto financing applications usually fail because either they do not know where to go to for auto financing or they do not know how to go about securing auto finance.

There is a difference between knowing how to approach a challenging issue such as auto financing and knowing where to go to for auto financing. Knowing how to apply and approach auto financing alone does not guarantee your success. It is a combination of knowing how and where to go to for auto financing that guarantees your success when it comes to auto financing.

Knowing how to approach and process a request or application for auto financing is very important because it is what guarantees that you will be granted or financed with the amount that you have requested for as auto finance. Whenever you have the need to apply for auto financing, it is very important that you should be well grounded in the basics of auto financing before applying for an auto finance loan. Being well grounded in the basics of auto financing can prevent you from making some stupid and hideous mistakes concerning auto financing.

Apart from knowing how to approach auto financing, it is also advised that you should know where to go to for flexible and readily and easily affordable auto finance loans. Knowing where to source for auto finance can greatly improve and increase your chances of being granted approval for your auto finance applications. When it comes to knowing where to go to for auto financing, the internet should be your best bet because it offers the fastest, quickest readily affordable and accessible means of applying for auto finance

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Question by Kim: Do universal default clause apply to auto/car loan? If I get a auto loan, would the lender raise rates if we?
go default on mortgage? We are going thru short sale/foreclosure situation and stopped paying mortgage for a month now. Would a car loan lender raise rates based on our mortgage default? Or is the loan rate fixed for the terms of the loan?

Best answer:

Answer by bdancer222
Only credit cards have universal default clauses. If you are late paying the mortgage or car loan, the credit card company might just kick in the universal default. But your mortgage and car loans are installment loans with set interest (or at least rules for adjustable rate increase) that don’t include universal default clauses.

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The availability of easy car finance is one of the prime reasons for the booming sales of the cars year after year. Even the most highly priced cars are available on monthly finance options of different types. This is a global phenomenon. The car loan can be had after paying some sum as part down payment and the rest on monthly instalments.

Some of the most common types of car finance options are: car lease, commercial hire purchase, salary packaging, Low doc/no doc car finance, chattel mortgage, novated lease and even by taking personal loan. The difference between these different methods lies in the title or ownership of the car, the liability to pay the sums to the car company and the tax treatment of the different finance options.

The car loan can be had in any of the different formats depending upon your nature of occupation. For the people employed with some organization, usually the most preferred way is to get the same within the salary package. This can take two forms. In one, called salary packaging, the monthly instalment is deducted from the salary of the employee and paid to the car finance company. The liability to pay lies with the employee and if he leaves the job, he will have to arrange for the new employer to get it packaged in the salary.

For people who want the cars for their trading purpose, like the ones in the tour and travel business, the commercial hire purchase option can be most suitable. With each successive payment, you are paying off money towards the ownership of the car. The money to be paid as instalment can be taken out from the incomes derived from using the cars in business. So, there is no extra burden on the owner. Even if the cars are taken away due to non payment of the instalment amounts, there is nothing to worry for the owner since he has not done any capital investment on it.

The personal loan is taken, at high rates of interest, on the condition that at least half the sum is used for personal purposes and the rest is applied for buying the car. The loan is secured by the financer who takes a charge for this service in the form of monthly instalments.

There are also the situations in which a self-employed person is not able to fetch any income proof of his own, be it salary slip or any other thing. For those people, the car finance can be had if some of the prescribed eligibility criteria are met. The most famous options for this requirement are that of the low doc or no doc finance. This is the most common option of Car Loan available fro people who have low-income self employment.

Each of the financing options has some benefit or the other. These have been designed in such a way as to meet the car requirements of most of the deserving people.

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