Golden State Financial » car refinancing

Obtaining A Car Loan

admin — Mon, 18 Jan 2010 12:10:00 +0000

Many people are intimidated by the very idea of loans, but you shouldn’t be.

A loan is a service that is there for you to take advantage of, and though they take a bit of effort to obtain, they are there for the taking and the worst thing that can happen is that you are not approved for one and you have to look for another.

There is a program out there for just about everyone to take advantage of, so don’t be intimidated, instead check out all of the offers that are out there just waiting to be taken advantage of and get into that new car that you want or need.

Financial Backing For That Big Auto Purchase

Vehicles today are expensive and most people cannot simply walk into a dealership and pay cash or even put it on a credit card. Most people need to get a car note to help them make affordable payments on the car. These notes often last two, three, four, five, or even six years in duration.

The shorter the term the larger the payments will be but the longer term you have the higher the interest rate will be. A good rule of thumb is to consider the shortest term you can afford to make sure that you are paying as little interest as possible.

Many people start the process by going out and looking for a car that they would like to buy and then they stress when it comes time to find financing help.

Today many dealers are recommending that people do this in reverse and simply put some feelers out there to see how much they are capable of borrowing from a lender.

Some lenders will give you a pre-qualified amount that they are willing to finance and this will help you ensure that you are shopping in the range of vehicles that you can actually afford to buy.

This process may be a bit more lengthy, but in the end in pays off in a big way because you get in and get out when shopping, allowing you to go home with your affordable purchase sooner.

Many times lenders will require that you put a down payment on the sales price of the vehicle. This is a percentage of the sales price and it makes the lender feel more comfortable with giving you the money for your purchase.

The idea is that you have some of your own money invested in the purchase so you aren’t as likely to skip payments or anything of that nature. If you have poor or little credit you may also be asked to have a co-signer on the account that will pay the bill if you should default.

The interest rate that you are offered will depend largely on the term of the loan as mentioned above, but also your credit score and how much money you are putting down, if any.

The lower your interest rate is the lower your monthly payment will be, so it is in your best interest to shop around a little bit and try to find the best rate possible.

Rates are fluctuating quite a bit right now, but when you buy a new car you can usually get outstanding numbers that will allow you to buy something new at a great monthly rate!

Online Car Loans Can Reduce Stress

admin — Sun, 17 Jan 2010 11:25:00 +0000

Finding a car loan online is becoming very popular in recent years. It offers consumers an easy way to comparison shop for car financing that can be done from the comfort of your own home.

When you use an online car loan service you are also in a much better bargaining position then going to your traditional car dealership. With your car financing arrangements already in place you are seen as a cash consumer. You are aware of how much you can spend and will not be pushed into a higher price range from the salesperson.

If you are not using the Internet when researching cars, you really should. By using the Internet you have access to all the information you need in terms of year, price and mileage of the car you wish to purchase? What is surprising is that these same people walk into the dealership and toss their savings right out the window.

Most customers walk into the dealership and must speak with the finance manager to obtain auto financing. These people assume they will qualify for the lowest rate right at the dealership. What they do not know is that brick and mortar dealership with all of the inventory and staff costs big bucks to maintain and they are paying these bills some how.

Reduce The Stress
Finding a car loan online takes much of the stress from the car buying process.

Here are two other tips people are using to save them time and help to make the most out of their car buying experience:

1. Purchase your car online.

Go to Autotrader and find out what others in your city or province are paying for the vehicle you want. Then contact the car dealers online with your contact information to receive a few quotes via the phone or your email.

2. Use a car buying service.

Some services found online will take the work out of finding the car for you. These services are often free and you only need to go to the dealership to pickup the car. Most times they will deliver the car for you if you want to stay completely out of the buying experience. This is not recommended because most people will want to see the car first before committing to purchase.

Online Auto Loan Quote

You can learn more about Online Car Loans and get a free car loan or car purchase quote by visiting websites that specialize in providing online car financing.

Using an Auto Title Loan for Your Dream Car

admin — Thu, 14 Jan 2010 10:05:00 +0000

Are you in the urge to finally having that Porsche red sports car that you want to have all these years? But then, your current financial situation could not possibly permit you to be able to pay it in cash since you have other things to pay with your existing salary. There are the school dues of your children, the utilities like the monthly electric bill, and you’re still paying for the loan of your house. You have been asking and looking around for someone or some entity to provide you with a car loan. One of the things that you’ve found out is that you can actually avail of an auto title loan. But, wait, hold your horses – before you go to this lending company and get that loan, you may want to know about car title loans.

What Is an Auto Title Loan?

An auto title loan is an easy way to having that dream car. It requires only a minimal qualification: all you need to have is a job. The catch is that this loan is high risk and has unbelievably high interest rate.

Why Is It So?

It is being offered as a small emergency loan, so lenders give skyrocket interest rates. An average annual interest rate for this loan is triple digit or up to 300 percent interest rate every year. Because of lax state laws, lenders could also repossess your car if you could not pay your loan at an agreed date. Since they have duplicate keys of your car, lenders could haul your car from your own home late at night. The period of time given to customers is also very short. As what the CFA, or the Consumer Federation of America, had reported, some lenders who give loans of up to $2,500 would demand for repayment in just 30 days. If these would not be paid within this period, the customers would be paying more monthly interest rate of about 25 percent. Then it would become a mean cycle of payment of ballooning rates until the customers have the balance that is relatively high that they could not possibly pay them anymore.

In the end, they would have to agree for their cars to be taken away. After repossession, some lenders could sell your car and take all the proceeds. It would be just like renting the car with high charges.

The Power of the Lending Companies

The lending companies had been able to get around with all of these things because of the slack laws that authorize them. This industry is supporting the campaigns of politicians and had been able to lobby for laws that would give them much freedom to prey upon the customers. The recent of it is lobbying for state laws to legalize title loans without rate caps and adequate protection. This would lessen the control of the government for higher rates and unfair provisions that would definitely be advantageous to the lenders.

Knowing all of these things, it would not be wise to have an auto title loan. Look for better options for you to have that dream car of yours.

Best Solution – How to Get a Car Loan With No Credit and No Cosigner

admin — Thu, 07 Jan 2010 21:58:41 +0000

Getting an auto loan can be very complicated for a number of reasons, especially when you have never done anything like this before or if you have acquired bad credit throughout your life. The first reason, is because of someone’s credit history or very little credit in the past. Automobile businesses want to know that you have the traits of a person who quickly pays off loans and debt, so that they do not have to deal with financial problems in the future. This can be a tricky situation for people who want to buy their first car because car dealerships are taking a big risk of giving out money to people that do not have a history.
The solution that is best for a person in this type of situation is to have a cosigner with a lot of credit and who has a good credit report.

When there is a cosigner present at the time of the car purchase, then the financial representatives will be more secure in lending out the loan with the added assurance that they will get their loan paid off in full. It is important to have someone who can back you up when financial problems do arise and will still enable you to pay the monthly loan payment. Having a cosigner with a lot of credit and also a good credit report ultimately increases your chances of obtaining a car loan.

The next potential way that vehicle buyers can get a car loan is somewhat more difficult. This specific method does not require the first time car buyer to have a cosigner but simply deals with the amount of money that the person wants to borrow. When considering what type of a car the person wants to buy, he or she should think about purchasing a vehicle that requires the least amount of money possible, especially if you want to take out a loan.

Buying a vehicle that does not cost so much money will also improve your chances of applying for and obtaining a car loan. If you are a first time car buyer and want to buy a Corvette as your first car, you will probably not qualify for the type of loan that you will need to cover the costs of such an expensive car. If you select a much more reasonably priced car that does not cost so much, then you will have a greater chance of qualifying for the type of loan that you need.

The second reason for experiencing difficulties in acquiring a car loan is if you have a history of bad credit. This is a more complex problem to overcome because car dealerships already know that they will probably have financial problems with you in the future.

The first step is to discover how much money you can likely borrow from a lender, and then do your car shopping with the amount of money that will be lent out to you. This will be the easiest way for you to purchase a car.

The Best Way To Get Car Loans

admin — Mon, 04 Jan 2010 10:04:00 +0000

As a general rule, people do not purchase their cars to keep them for a lifetime. With this mindset it has led to a rigorous growth in the loan industry. The customer is “in the drivers seat” as to say and the lenders compete with each other to attract them.

This is the reason why we find the many companies coming up with new packages and deals almost every day. There are some false practices that are exercised by unscrupulous loan providers who aim to make money at any cost.

A borrower has to be on guard and step very carefully while dealing with the lenders so it does not end up to be a costly affair. Here are some simple steps that might help you when selecting a loan.

The first requirement to get the best loan is to research. This means a complete study of rate, terms and conditions offered by the lenders and most importantly by the company’s reputation should be checked out in detail.

Secondly, a good rate of interest can be yours by making a larger down payment. This again offers a three-way benefit to the borrower. First, as you will pay a major part of the price of the vehicle as the down payment, it will lower the interest amount payable and provide a long-term savings to the borrower.

And the last suggestion is to choose the suitable term between the two options. If you prefer a low rate, you can choose a longer term of repayment. Or on the other hand, selecting a shorter term will be beneficial in spite of high interest rates if you want to own the car in the least possible time.

Most companies today usually use technical terminology in their policies that often confuse a nonprofessional not in their industry. A good online auto loan lender will provide you with assistance and advice to understand the terms and policies to help you identify with your payment policy.

Today online shopping is the most preferred way of dealing, as it is advantageous in many ways. Finance institutions working online are able to provide cheaper loans as compared to other lenders because they save money not spent on personnel. They are quick and the dealing is hassle free.

Keep in mind that you are the person purchasing the car and financing the loan so hold your ground and stay determined until you get what you want. After all of the paperwork has been signed, it will only be you from there on out and only you that pays the monthly payment.

Avoid Car Dealer Lending Scams with Online Auto Loan Quotes

admin — Sun, 03 Jan 2010 16:23:16 +0000

Most car sales professionals are honest, hard-working people with a job to do. Unfortunately there are a few who fit the bill of the “stereotypical” car salesman and will do everything they can to sell you a car. If you apply for finance through the dealer, this just gives the car salesman another tool to use against you as leverage. Instead, walk onto the lot with online auto loan quotes in your hand and you may be surprised at the difference in how you are treated.

Credit Report Shenanigans

Of course you would never shop for cars without pulling your own credit report, right? Well some people do and that gives the dealer a chance to tell stories.

They’ll tell you how you have a terrible credit score and then act like they are doing you a favor by giving you a loan at all. Of course they will have to charge you a higher APR and possibly additional fees for the terrible risk they are taking.

Understand that they will tell you this even if your credit score is perfectly fine.

Your Loan was Rejected

You sign papers and drive off, thinking you own a new car. Then a couple of weeks later, the dealer says the financing fell through and you have to come back in. They’ll hit you with higher payments, refinancing fees, and all kinds of other nonsense.

Unless you lied on your application, the dealer knows whether you qualify for the loan or not before he lets you off the lot. Do you really think he’s going to let you drive off in a $25,000 piece of merchandise otherwise?

Applying for a Loan by Accident

Even shoppers armed with online auto quotes aren’t immune to loan scams. The car salesman may tell you that he needs to pull a credit report because of Patriot Act reporting requirements. You might even notice the form you are filling out is titled “Application for Credit.”

The Patriot Act does not require a credit report or your Social Security number so don’t be fooled into applying for dealer financing. Your name and driver’s license number should be all they need.

Lies About Online Car Loans

Some car dealers are so threatened by online auto loan quotes that they will tell you anything to get you to abandon them in favor of dealer financing.

One of the common lies is how all online car loans are scams and their checks will bounce. Yes, there are a few bad apples among online lenders, but they are generally easy to spot. Most companies that offer online auto loans have been in business for years and are just as reputable as your bank or credit union.

The best way to protect yourself against these and other loan-related scams is to get your online auto loan quotes before going to the lot. That way you know what you have qualified for and don’t have to worry about the dealer using your loan against you.

Car Dealerships Push to Hire More Women

admin — Sun, 03 Jan 2010 10:24:27 +0000

The next time you walk onto a car lot with your car loan quotes and other papers in hand, you are as likely as not to find a female sales representative waiting to help you. Although car dealers traditionally have employed a mostly male sales force, recent trends have them actively recruiting more women.

Most Car Buyers are Women

One reason for this change is that most of the customers seeking car loan quotes and buying cars are female. According to an article in Motor Matters around 58% of car buyers are women; Road & Travel Magazine puts that number closer to 65%. Despite a predominately female customer base, auto dealership employees have been overwhelmingly male.

According to surveys, a majority of female customers say feel more comfortable dealing with female sales people. Some women are uncomfortable with salesmen because they feel the men treat them condescendingly. A survey by CNW Marketing Research showed that women are three times more likely to want a female sale representative than a male one.

Car dealers are responding to these studies and to their own experience with female sales people and are hunting down more women to work the sales floor.

The Showroom Isn’t the Only Choice for Women

Although more women are selling cars on the floor and issuing car loan quotes in the finance department, opportunities in the service and parts departments abound as well. The women in these jobs aren’t grease-stained tomboys who spent their teen years rebuilding transmissions. They are average women, often with customer service experience in other jobs.

Parts and service jobs require a great personality. The ability for the shop to generate repeat business greatly depends on how the employee gets along with the customer. The technical part of the job can be taught, but good customer service is a real art. Women with strong people skills have a lot of opportunities in these areas, earning the same wages as their male counterparts.

A Changing Industry

Although car dealers are trying to minimize the gender gap, many are at a loss as to how to attract more female employees. Much of the difficulty comes from the potential employees themselves. Many women never consider working at an auto dealership. Some assume that dealerships don’t hire women while others fear they might be harassed in a male-dominated environment. They might be surprised just how male-dominated these fields aren’t anymore.

While women don’t yet make up half the employees in the auto sales and finance industry, you’ll find quite a few more women at car dealerships than you would have a few years ago. From the person giving you car loan quotes to the sales representative to the service staff, more women are making inroads into these fields than ever before.

The Best Way To Get A Car Loan

admin — Sat, 02 Jan 2010 19:30:00 +0000

A borrower has to be on guard and step very carefully while dealing with the lenders so it does not end up to be a costly affair. Here are some simple steps that might help you when selecting a loan.

Car Loans: Do Not Get Carried Away

admin — Sat, 02 Jan 2010 16:19:45 +0000

You do not have to look very far for car loans today. This is because financing is a popular option for purchasing cars. But just because you have a lot of options does not mean they are all offering the best deal.

The Dream Car

Most people start thinking about a low rate car loan when they set eyes on the car of their dreams. Oddly enough, this usually isnt a Porsche or a Ferrari. Its often an ordinary car that not only meets a persons needs but appeals to their sense of style and beauty. But buying that car outright can put a big dent in a persons savings. It makes much more sense to look into car loans so you can get the car and pay for it in installments.

This is where you have to be careful. Your car dealer will probably offer you a payment scheme right up front. It can be very convenient to just sign the papers and take the car. But the truth is that your dealer probably isnt giving you the best rate in fact, most dealer rates are on the higher side. Check out car loan rates at banks and credit unions. Youre bound to find a number of car loans that will work for you.

Stay Focused

Shopping around for a good loan will lead you into an entirely new world. Youll notice there are a number of online auto loans which can give you a quote online. Big and small banks, private financiers and credit card companies all offer loans at different rates and all of them will try and get your business. Its important to remain focused at these times. You want to look at loans that appeal to you, not your lender.

Whether you are looking at a new car loan or used car loan rates, its important to look at the interest rates that are offered. These loans come in two forms fixed and variable. Its also important to check out what kinds of payment schemes are offered. While monthly installments are the norm, a number of other plans are also available to suit the needs of the client.

Always make sure that the payment installments are set at an amount you are comfortable with. Remember that if you default, you may be in danger of losing your car. Good car loans should make the process of buying and owning a car easier.

Car loans are available anywhere you look. But if you want to get a low rate car loan, you should do some research. Comparing used car loan rates and online auto loans can get you a good deal.

A Comprehensive Guide to Car Refinancing

admin — Thu, 31 Dec 2009 11:30:00 +0000

Why do people refinance their car loan? Refinancing is a way to save money because by it you’ll have the opportunity to change a loan that has a higher interest rate to a lower one and with a shorter term. The company that offers the refinancing would pay the customer’s balance from the existing financing company, and then they would agree upon on the interest rate and the period of payment or term.

A Solid Example

For example, a car that has a finance package of $10,000 and an interest rate of 8.9 percent for 60 months would have a monthly payment of $207.10 and the final interest bill of $2,426.74. With your refinancing, meanwhile, supposing the interest rate is put into just 6.9 percent, the monthly payments are at $197.54, and the final interest bill would then become $1,853.05. This would mean having a savings of $573.09.

Improving Your Credit Report

Aside from this, refinancing could also improve one’s credit status. Customers with an existing financing that has a higher interest rate and a longer term have found it hard to pay their mortgages and other loans. Default in payment can then be reflected in your credit report, which could then bring down your credit score. The problem with this is you will be having a difficult time later on to avail the kind of loan you want.

But with refinance, you will be able to improve your credit standing. You could also save with refinancing through claiming rebates and incentives after the refinancing company had paid the full amount of your loan at an earlier time.

Shopping for the Right Car Refinance

The first thing that you would do is to look for other lending company that would offer car refinancing. You’ll have to look around for those having the best deal. You could find a lot of online lending companies that are offering car refinancing nowadays. Remember that you’ll have to look for another lending company, not the existing one. In your application, be sure to include every detail including your personal information, current loan information such as the existing interest rate and the term that you are currently availing, and the type of car loan you want, including the new rate and term.

The Downsides

Car refinancing could have disadvantages too. If your current loan has a prepayment penalty and then the money you could save from refinancing is lower than paying for this penalty, it would not be advisable to have the refinance. Having a low credit score could also be another factor. The best thing that you can do is to at least bring back the glory of your credit score by opting for ways and means to increase your income and be back on track in paying your due. Lastly, it would not be good to avail of a car refinance when your current loan has already been almost paid because it would only incur you more cost. So if you have a five-year car loan that has only two more years left, it would not be worthy to avail of them. In any case, if you’re having difficulty with your car refinance, ask help from an expert.