Safe And Reliable Personal Vehicle

If you are like tens of thousands of other potential car buyers across the country, you are probably thinking of used car finance. You are surrounded by tons and tons of used cars everywhere yet when it comes to driving a personal vehicle you are left with an old clunker. Getting a good, safe and reliable personal vehicle may not be so difficult after all, if online service providers have anything to do with it. Buying a used car usually turns out to be a boon in disguise for many. They get to ride a plush, comfy, expensive make and model simply because of its highly depreciated value.

Potential car buyers are getting wider options easier than ever before due to the technological development of the web, easy access to the internet and online assessment tools. Online service providers like CarLoanApproval give them an opportunity to connect with plenty of specialized and experienced lender and dealers willing to work with them. These car buyers can look forward to best used car loan with a hassle free car buying experience having any type of credit status. Many of the online auto finance companies, lenders, dealers or service providers have a simplified application to approval process. The way to enter this process is through simple and quick 1-minute online application form. Once you submit this form, all those lender and dealers specified by requirements will send you instant free online quotes with a request to contact them.

Buying a car without auto finance is possible only to the select few. Even the wealthy prefer to buy their expensive brands with car financing instead of paying out cash. Is it a wonder then that you and me are looking for used auto loans so we can drive a new car instead of an old clunker. Online auto loan calculator tools allow potential car buyers to know what safe amounts they can invest for car price, interest rates, auto loan amount, auto loan term in months and an affordable monthly car payment. Car loans could be ideally affordable if for only 36 months. But auto loan terms of 72-84 months are also commonly found nowadays. If you are considering keeping your monthly car payments to bare minimum it could help.

However, there could be a relation between your auto loan term and interest rates longer the loans term the higher your interest rate might be. In addition to this, a down payment amount can play an important role too. If you can put down anywhere between 5-20 per cent of car price, it could reduce your interest rates and monthly car payments significantly. Remember, the more you invest the less you need to spend on insurance and interest. 2nd chance auto finance is of special help to potential car buyers with less than perfect credit. Car loans are a great way to build credit. If by some misfortune your credit scores have taken a downturn, a second chance auto loan gives you opportunity to improve scores. Just stick to making regular and on time monthly car payments and everything will be as fine as before.

The Numbers Say Go For A Used Car

Are you thinking of buying a car? Is your decision tilting towards buying a new car? Before you head out to make a purchase, do give a thought to the other option. Buying a pre-owned car may not make for an appealing choice; but makes sense financially.

Stay away from the New; Go for the Used Cars

Who doesn’t love the new car smell? You may have set your eyes on a new car but here’s why you should head to the used car section at the dealership.

Buying a New Car becomes Expensive every Year

Even though there are several affordable car models, buying a new car and keeping it is becoming expensive year over year. Obtaining an auto loan for buying a new car is resulting in higher monthly payments than before. According to Experian’s Q1 2017 data, a sub-prime borrower spends $519 on a new car loan. And, if he seeks a used car loan, it comes down to $385. So, it makes sense to buy a used car.

Loan Terms are getting Longer

Lenders charge high interest rates from sub-prime borrowers. But, they try to cover the high rates with longer loan terms. If you wish to buy a new car with super-prime credit, the lenders will offer a loan term of 62 months. And the term is 72 months for deep subprime car borrowers. For a used car borrower with deep-subprime, the term is 65 months. Remember that used cars are less costly which means you will make smaller monthly payments over the years. But, when you buy a new car with a long term, you end up paying more in the form of interest.

The Risk of Negative Equity

Constant rise in monthly payments and long loan terms spell a recipe for disaster. A new car loses value as soon as you leave the dealership lot. And, the lenders direct initial payments towards the interest amount. It means the amount you owe to the lender becomes higher than the value of your car. Being in an upside down loan situation is very risky proposition. If the car is totaled for some reason, you will have to pay the difference between the insurance money and the pending loan amount. So, consider choosing a used car because of its low value and low depreciation rate.

Let your Brain take the Lead!

Buying a car is an emotional experience. You may adore a brand. You may have set your heart on a certain car model. But, remember that a car is the second biggest purchase of your life. If you listen to your heart and disregard cognitive thinking, you will face bad credit score and unpaid debts in the future. So, consider your financial condition, credit score, and cash availability before buying a new car. If you think that higher monthly payments will put an unnecessary burden on your financial condition, go for a used car. Listen to your brain and make a practical decision.

Required Documents For Home Loan

Own home is only a single place where we feel comfortable, safe and independent. Everyone has a hope their own house but due to the fund arrangement, this dream seems impossible.
But nowadays getting a home loan is quite easy and convenient. You just need to follow few necessary steps and submitting fair documents to your lender. With proper documentation, you can get your home loan in few days.

Before going to approach a home loan lender, it’s very important to gather all required documents for Home loan application and its successful approval. Bank and NBFCs ask for the following documents before sanctioning the Home loan. Let’s have a look:

Identity Proof (Anyone from the following)

�Driving license
�Voter ID
�Passport
�PAN card
�Aadhaar Card
�NREGA Card

Age Proof (Anyone from the Following)

�Driving License
�Passport
�PAN card
�Birth Certificate
�10th standard Mark sheet

Address Proof (Anyone from the following)

�Driving license
�Voter ID
�Passport
�Ration card
�Utility bill � Telephone, Electricity, Water, Gas, Postpaid Mobile (minimum 2 months old)
�Letter from any recognized Government authority verifying the residence address of the customer
�Letter from your Employer (in case no other proof is available)
�Bank Statements / Passbook / Other Government documents such as post office Passbook
�Property or Municipal tax receipt
�Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address
�Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India

Income proof

Income proof and property proof vary for salaried individuals and self-employed individuals.

Self Employed/Businessmen

�A brief introduction to your business/profession
�Balance sheet, profit and loss account statement of income
�Proof of income tax returns for the last 3 years certified by a CA
�Receipts of advance tax payments made (if any)
�A photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act
�Certificate of Practice for professionals such as doctors
�Proof of investments (FD Certificates, Shares, any other fixed asset)

Buying A Car With Low Down Payment

When you select a car at the dealership lot, you will face the inevitable question of the down payment. Putting money down and buying a car is an age-old tradition. It gives the lender a chance to witness your financial condition and allows you to lower the loan burden. In an ideal scenario, it is best to make as much down payment as possible. But, we do not live an ideal world. So, what should you do when you do not have enough money for your dream car?

Can you buy a Car with Low Down Payment?

Buying a car feels like being on a trial. The lender considers your credit score, payment history, monthly income and several others aspects of your life before approving the loan. And, when you can only afford low down payment, it can cause trouble. But, do not think that having no access to cash means putting an end to your car dream. There’s one thing that can change the game. Have you heard about LTV?

A loan-to-value ratio is the percentage of the loan amount in relation to the total cost of car. The higher the LTV, the lower will be the down payment. It means that if the lender approves you for a higher LTV, the need for making a large down payment becomes redundant. So, how can you get the lender approve you for a large loan amount?

C = Credit Score must look Good

It is the most common suggestion for obtaining any type of credit. It seems easy for the one who tells it, but difficult for the one who has to follow it. But, do not worry because you have help from the July 1, 2017 credit rule. If you have incomplete tax liens and inaccurate civil debts listed on your credit report, the credit bureaus will remove it. It can lead to a rise in your credit score. Even you can contribute to the rise by paying off a few debts.

C= Cost of Car should be Low

A low down payment becomes easy when the cost of car is low. If you do not have sufficient cash to make a down payment of at least ten percent of the cost, you can choose an inexpensive car. It will convert the inadequate down payment into one that’s just right for the lender. Settle for a used car. Avoid buying expensive add-ons from the dealer to keep the cost in check. Also, you can use your old car for trade-in and eliminate the need for down payment.

C = Cosigner can be your Savior

When in doubt, seek help! You can use a cosigner to convince the lender of regular payments. Once he sees you as a less risky investment, he may approve you for a larger loan amount. Remember to choose a cosigner with a good credit score so that the lender can rest his doubts about receiving back his money. Choose someone who will be capable of making monthly payments, if you fail to do so. If getting a cosigner is becoming a bit of a problem, you can ask any of your parents or your partner to become a co-applicant on the loan. Their credit score will strengthen your loan application and enable the lender to see you as a worthy borrower.

Buying a car with low down payment is not possible for everyone. But, if you work hard to increase LTV, you will have no trouble in buying a car. So, before you head down to the dealership lot, work out the details and make sure that you get approval for a higher loan amount.

Learn The Most Important Thing While Buying A Car

For many of us, buying a car is a way of fulfilling a life-long dream. Even though a car purchase is a common phenomenon, many make mistakes and end up paying with their credit scores. When dealing with the four-wheeled beauty, you must be diligent and strive to get the best deal. No matter what you do, there is one important thing that you cannot miss while buying a car.

Research: The Key to buying a Car with Bad Credit

If you have a bad credit history or any other problem that makes your credit application weak, the game changes for you. In an ideal world, the lender and the dealer should treat you as they treat a good credit borrower. You should be able to buy a car of your choice and obtain affordable interest rates. However, the real world is cruel and you will face discrimination on the basis of your credit score. If your credit score is below 580, lenders will consider you as a risky credit seeker and ask you to bring a down payment and a cosigner. So, how to come out as a winner and buy your favorite car with bad credit?

If you are unable to buy a car quickly, you need to research. Knowledge is power. And, when you do not have an upper hand while buying a car, you need all the knowledge in the world to secure the best deal.

Do you really want a Car?

When you are buying a car, it is important to take a hard look at your financial situation. Can you afford to buy a car? Will monthly payments put a burden on you? If you need a car to commute, it is essential that you cut down on your expenses to ensure regular monthly payments.

Spend time in selecting a Car

Thinking of buying a car and selecting a car are two different things. Do not settle for a used car because you cannot afford a new one. Search for discontinued car models in your area so that you can get your hands on a new car at a reduced rate.

Visit more than One Dealer

Never deal with the first dealer you visit. Even if you are in a hurry to buy a car, make sure that you visit at least three dealerships. Learn the different car options available at the different lots. Talk to the salesmen and negotiate an affordable price for the car. Also, search online and learn about auto auctions to get the best deal on a used car.

It’s Time for Auto Loan Research

If you do not make a right auto loan decision, it will pinch you every time you make the payments. So, find an auto financing company who works with bad credit car buyers. Ask questions about their loan process. If you are a member of a credit union, you can seek financing from them.

Do not worry about getting negative hits on your credit score. Fair Isaac Corporation understands that one cannot obtain an auto loan without rate shopping. If you find an auto loan within 30 days, the different inquiries will not have a negative impact on your credit score. So, do not worry about working with different lenders to find the best deal.

The Bottom Line

When you credit score is not excellent, you need to spend more time in research so that you do not end up paying more. Do not make a hasty car buying decision. Spend ample time in researching a car model as well as the lender. Remember that the time you spend now will leave you stress-free forever.

The Mistakes That Come With A Longer Auto Loan Term

Most car buying stories start in a similar fashion. You have your eyes fixated on the new car but the high monthly payments do not match your current budget. The dealer suggests that you opt for a longer term period that reduces your monthly payments. You agree, thereby, falling into the vicious cycle of negative car equity. The common mistake while purchasing a car is ignoring the auto loan term. Additionally, it becomes all the more important to ascertain your loan term when you suffer from bad credit. Avoid making the following mistakes relating to loan term to ensure that your car buying decision is financially sound.

4 Mistakes that you can make with a Long Auto Loan Term

1) Getting into the rut of negative car equity

The longer the term on your auto loan, the more the build-up of negative equity. A shorter term period lessens your overall auto loan amount. Negative car equity is built when you owe the lender more than the current worth of your car. A longer time frame on your auto loan means additional interest amount whereas a short term period builds positive equity and helps you to obtain a higher amount during a trade-in or resale.

2) Paying high interest rates

The interest charged on an auto loan is the additional money you pay, over and above the price of the car. Ideally, it makes sense to opt for a shorter loan term with low interest rates. When you increase the length of the loan term, you are increasing the dollars you spend on the car. Make sure you consider the whole picture and take into account the overall loan amount along with the loan term when you purchase your next car.

3) Receiving a low resale value

A low resale value is reason enough to steer clear of the extra-long auto loans. The time you take to repay the auto loan amount significantly impacts the resale value of the car. The car value starts depreciating the minute you drive it off the dealership lot. In regards to the length of the loan term, a five-year old car is more favorable than a seven-year old car. Therefore, the shorter the loan term, the more resale value you will obtain when you sell the car.

4) Spending on high maintenance costs

Car fatigue is another reason to switch to a shorter loan term. Once you have hit your five-year mark on a car, a trade-in might be right around the corner. The average age of a car during a trade-in is five years. However, if you opt for a 72-month auto loan, the option of trade-in diminishes and your maintenance cost increases. Thus, a shorter term will not only get you a favorable resale value, but will also reduce your car maintenance costs during a trade-in.

The Ideal Solution

Every problem has a solution. A large down payment, opting for a bad credit auto loan and showing strong evidence of your sources of income will assist you when you face a difficult situation. Additionally, keep in mind the impact of negative car equity and high interest rates. Stay determined to repay your auto loan amount within a shorter time and make sure to improve your credit score for a smooth car purchase in the future.