Things to Consider Before You Get a Car Lease 2015

 Things to Consider Before You Get a Car Lease 2015

Some would-be car owners think they cannot get a car because they cannot afford payments and they have poor credit, but it may still be possible for families and couples to get a car. However, before you choose a sign a lease agreement; you may want to consider more than if the amount of the monthly payments.

Is the lease agreement an open or closed-ended agreement? Does it matter? It may make more of a difference than you realize. It can affect how the payments are figured and may affect how many miles you can drive your leased vehicle. Do you still have to pay fees after turning in a leased vehicle? It can make a difference depending on whether you signed a closed or open-ended lease agreement.

Is gap insurance for you or will leasing help you with job Stability?

Some people may want to get gap insurance. This insurance may help pay the difference if a leased vehicle is in an accident and keep leases from having to deal with the damages from the accident and also their insurance fees. While gap insurance may not pay for all the fees you need, it can help to not leave you a large bill unexpectedly. It is good for those who decide lease to balance their payments with their job stability. It does not help to get to work if the money spent work goes entirely to pay the lease payment. But it is good to have a car to help you find a better job or be secure in your employment.

Look at the vehicle you are leasing? If you are doing a longer lease agreement, is it possible that the lease vehicle will last you through the year without having to pay much in wear and tear? If the vehicle is under a warranty, maintenance may be covered for the life of the lease. Read the lease agreement well, as not all leases will include paying regular oil changes or things that are considered “regular maintenance.” Will they also cover major damage caused by accidents? It is best to ask before signing a leasing agreement what the company will cover if the unexpected happens.

Save money by not having to sink more in for Repairs

For people who have older vehicles, leasing a vehicle may be a good option. As cars age, smaller parts, made of plastic, tend to break and wear. Rubber also develops holes and leaks can spring. With a newer leased car, you may have the assurance that you won’t have to spend as much out-of-pocket to keep up with the continual maintenance needs of a newer car. If a leased vehicle is also a longer term car lease, you may have cheaper monthly payments than a short-term lease.

Have you ever considered leasing before? Isn’t it nice to know your job is not at stake because you cannot get a car? At EM Lease, we believe that our customers, whether businesses or individuals, need flexible, hassle-free solutions to their vehicle needs and this is what we offer. We offer short-term leasing contracts that are: Flexible, short-term, affordable, practical, fully maintained, and simple. We offer new vehicles which come fully maintained, so you do not have any hassle. Our vehicles are also competitively priced within the market. Have your circumstances changed? We offer flexible leases for six to 12 months. Looking for something specific?

How to Ensure Car Buying Success With Bad Credit History 2015 As Your Partner

 How to Ensure Car Buying Success With Bad Credit History 2015 As Your Partner

According to a new report by Experian, a huge number of US consumers are buying cars. The phenomenon is a result of easier loan access and less-stringent approval criteria. The report revealed that lenders and banks financed 85 percent of the total new car purchases and 53.8 percent of used cars in the second quarter. This is higher by 0.5 percent and 0.9 percent, respectively, from the last year.

Everyone is running to the dealership lot for buying a car but you should not do the same thing if you have bad credit score. For ensuring success at the time of buying a car, a bad credit car buyer has to consider several things like your budget, credit score, down payment, etc. But, there is one more important thing that requires your attention and it is the car you are buying.

New Car or Used Car – That is the Question

Whether your car loan will be affordable or not depends on the car that you buy. So, you have to be extra careful because it has the power to improve or ruin your credit score.

Most bad credit buyers receive higher interest rates in comparison to others. So, if you buy a new automobile, you will end up paying more in terms of interest. Also, it will be costly for you because insurance premium amount is higher for new car in comparison to old cars.

It is safe to buy a used car with bad credit history because its low-cost will ensure an affordable loan amount. If you are careful in choosing a used car, you will have the advantage of obtaining a reliable automobile with less maintenance cost.

Options for buying a Used Car

Once you decided to opt for older cars, you have two sources to choose from:

1. Dealership Lot

If you are worried about ending up with a lemon, you can obtain a CPO (Certified Pre-Owned) car. CPO cars are ideal for car buyers who want to buy a less-costly used car that has undergone safety and performance inspection. It usually carries extended warranty.

Although, you must keep in mind that certified cars are a bit expensive than other alternatives because dealers conduct a thorough inspection of the automobiles.

2. Private Party

You can buy a car from a friend, colleague, neighbor or online seller. All such sales are categorized as private party car sales. Such deals are ideal for those buyers who want to avoid the incessant pressure of the salesman. A private party car purchase also leaves more room for negotiation but you have to ensure the reliability of the car as there is no certification available.

Next comes the Bad Credit Auto Loan for buying a Used Car

After you have made a decision about buying a used car, it is time to apply for a bad credit car loan. Before you go to a bank or seek dealership financing, you must consider the online auto financing companies. These institutions work with a lender network and ensure that your credit application reaches several sub-prime lenders and thus, ensure higher approval chances.

Here are few tips for obtaining quick approval on your online loan request:

>> Apply only with a sub-prime lending company with a secure website
>> Make down payment or trade-in your old car for lowering the loan amount
>> Bring a co-signer as it will increase lender’s faith in your loan application

So, this is how you can become successful in buying a car with bad credit history. Remember this bad credit car loan guide before heading out to make the purchase.

Bad Credit Auto Financing 2015 – Lenders Vs Dealers

 Bad Credit Auto Financing 2015 – Lenders Vs Dealers

Bad credit sometimes stands in the way of getting a car loan, but it doesn’t have to. Information is king and whomever is the most informed usually walks away the winner, although in this case driving away is the goal.

Let’s face it; its 2014 and the Internet provides the ability to access information from anywhere in the world has changed the way we all do business. This kind of access to information can be to your benefit or your demise! Your credit score is one of the most important forms of information that potential creditors want to access to qualify and rank you as a potential customer. These creditors are not the enemy. In fact they are our friends (at least we should pretend they are). They literally hold the keys to your new auto loan. Bad credit aside, the credit report tells the auto lender how much risk is involved with lending you their money.

Playing The Game

I am going to side bar for a second and talk about “Why you don’t NEED the bad credit auto lenders money!” Well actually you do need their money to successfully finance your auto loan but there is a key difference I would like to point out. Simply do not “Act” as if you absolutely need their money, that is you have to play the game just as they do. Desperation is your worse enemy if you have bad credit and are in dire need of a new car. Lenders don’t make money from lending you money and having you only pay back what you borrowed. They make money from interest on your car loan, and those interest rates can get pretty outrageous. Upwards of 20% depending on the lender, but can average around 15% for those with low credit scores. My point is that you must not give in to the first loan offer, you must NEGOTIATE! Lenders understand that you have probably been turned down multiple times (in fact they can absolutely tell from simply looking at your credit report) and now that you have been approved you will simply roll over at any loan terms they offer. Do not be afraid to let them know that you are interested but the interest rate is too high, or the total monthly payments are a bit much for you to sign for the loan that day. This tip is more mental but very much so practical and effective.

Know Their Playbook

Your credit score is a snapshot of the past but an indicator of how doing business with you in the future might look like. Auto lenders are only interested in the risks vs. rewards. Now I have purposely not used the terms “car dealer” or “auto dealership” for a reason. I wanted you to begin to separate the idea between lender and dealer. Your local car dealerships do not lend money, nor do they have any to lend you! (I am sure they would if they could) The dealerships are simply a middle man, they hold car inventory and have all the local resources necessary to sell the vehicles and negotiate the terms and conditions of the loan between the lender and yourself. Here are some useful tips for you to consider so that you are not easily taken advantage of while working with the bad credit auto dealers in your area. Check them out:

  1. Shady Tactics – You should never be required to buy an extended service or warranty agreement. Dealers like to pull this little sneaky trick because it puts profit directly into their pockets. This is where my above rants on the differences between dealers and lenders come in to play. Dealers make their money on the differences between what they owe the car manufacture and what they sold it to you for. (They also get bonuses for meeting monthly, quarterly and annual volume goals). This shady tactic is simply about leveraging your desperation and squeezing extra profit from you in a time of need. Luckily the ease and access to quality information comes full circle, because you are here to increase your knowledge and hopefully that will bring you one step closer to a new or used car loan.
  2. Know Your Score – This is as simple as it gets. This is not a step you should ever skip. You should absolutely know your score before you even step into a dealership. Bad credit loans typically come with high interest rates and sometimes require larger down payments. Dealers cannot really adjust or play with that fixed interest rate because that comes directly from the bank. However they routinely lie about how much of a down payment is required to secure your new loan. The lender could request a $2500 down payment but the dealership would tell you that a $5000 down payment is required. Again their intent is to pocket the extra $2500 as profit. They normally can squeeze this extra cash out of you by simply lying about the credit score that came back and scaring you into thinking that $5000 was required by the bank to get the loan done. Like I said “Know Your Score!”. Enough said.
  3. Total Price Is KING – If you have bad or damaged credit it is probably for this simple reason: At some point you owed more money than you had to pay out and things got ugly. Well typically this type of history follows behind a shortage of cash or inadequate monthly income sources. In turn you simply begin to manage and think about all financial decisions as a monthly payment. This is not inherently a bad practice however you must remember that your auto loan is going to come with a pretty hefty annual interest rate. This can blind you while you considering your needs for a new car. Monthly payment… Monthly payment..that’s your typical mantra as you approach the dealership looking for a car. However this is the mantra of the salesperson as well. That’s a problem and here is why: You should be interested in negotiating total price because that is the only way you are going to truly save some money. The dealer is interested in negotiating monthly payment because that keeps your attention away from the fact that they are not discounting the price of the car. It also keeps your attention away from the fact that your monthly payment will mainly be made up of your interest due and only a small part of your principal balance. So if you are even mildly interested in saving some money, which I know you are, then focus on the only area you can actually do so: Total price of the car, not the monthly payment.

How Credit Score Affects Approval for Auto Loans 2015

 How Credit Score Affects Approval for Auto Loans 2015

You’ve finally had it with your old vehicle. You’ve spent months looking around, shopping for the best deals, and figuring out what kind of car you’d like to have, and you’ve finally found the new car that you would like to call your own. The only problem now is obtaining the finances necessary to make the purchase. Most likely, you are looking for a lender. Shopping for auto loans can be a frustrating and confusing process. Obviously you would like to get the lowest interest rate possible, and there are many different companies trying to get your business, all with different plans. So the question is: what is the best plan I can get, and how high should I settle?

One of the most important factors to understand when applying for auto loans is your credit score. Every time you apply for any type of credit, that business will make an inquiry with a credit agency. You will be rated at a number between 300 and 850, with 300 representing the highest risk and 850 representing the lowest risk. The vast majority of people are rated somewhere between 600 and 800, and factors that may affect your credit ranking include number of credit channels, number of inquiries made recently, timeliness of bill payments, and any negative reports or collections filed.

It is good to keep in mind that if you are shopping for auto loans, student loans, or home mortgages, any inquiries made within the past 30 days will be counted as one inquiry. Contrast this with inquiries made by credit card companies, which will all appear on your statement. The point is, shopping around for auto loans will not negatively affect your eligibility, so you might as well keep searching for the best deal possible.

When it comes to what sort of interest you’ll be able to get, your score will be looked at. Generally, someone who is rated higher than 680 will be eligible for low interest, while those above 700 will receive the best deals. As long as your score is higher than 600, you will most likely not be considered a high risk, and will probably be able to get a decent deal.

Once you understand how your score relates to your ability to obtain a loan, how do you know what your rank is? You might be surprised to know that different agencies will give you a slightly different rating. This mostly depends on what type of credit or loan you are looking to get, so keep this in mind when shopping. To get a general idea of how you stand, you can file a personal inquiry and find out your own credit score.

All in all, searching for auto loans should not be a very stressful process. Armed with the knowledge of how you are sized up by lenders, you should be able to navigate the system and be on your way to getting the ride you deserve.

Sub-Prime Car Loan 2015 – Are You Ready for It?

 Sub-Prime Car Loan 2015 – Are You Ready for It?

In the past, traditional banks and lenders considered sub-prime credit borrowers risky and rejected their loan application. People with sub-prime credit history were often forced to obtain obnoxious rates and horrible car loan terms of buy-here-pay-here dealers. But, today the story is different.

Stiff competition in the auto financing market and increasing number of people with credit issues has compelled lenders to offer their services to sub-prime credit borrowers.

Are you eligible for Sub-prime Car Loans?

Every sub-prime car buyer does not receive car loan approval. If you want to obtain the loan program, you should fulfill the following requirements:

Current Employment

You must be working with your current employer for at least six months. Lenders will need your employment verification letter as well as copies of recent pay stubs to confirm the employment status.

Down Payment

It is important to manifest your stable financial capacity to lenders. It will help them in taking a favorable decision. If you are buying an inexpensive used car, you can make a down payment of ten percent. But, if you are opting for a brand new car, it is wise to save up to twenty percent of the car cost for down payment.

Lower Debts

Lenders won’t have any problem in approving sub-prime loan application of car buyer with few financial commitments. So, if you have several loans, it is important that you pay off a few of them and improve your DTI ratio.

No Open Bankruptcy

Every auto lender considers open bankruptcy as a bad sign. He/she will not offer you loan quotes if you are in the middle of a bankruptcy. So, don’t apply for a loan during bankruptcy.

What Costs should you consider before signing a Sub-Prime Car Loan Contract?

A recent report published by Experian suggests that auto loan delinquencies rose by 8.6 percent in the third quarter compared to last year. Most experts are attributing this rise to sub-prime car loans.

Many car buyers obtain sub-prime car loans without considering their financial condition and end up in a financial mess. If you are thinking of obtaining a sub-prime car loan, understand your financial condition and take into consideration the several car buying costs.

The Loan Costs

When you have sub-prime credit history, you will receive higher loan rates than the average market rates. It will make your loan expensive. You must consider the increased cost before signing the loan contract. You must also pay attention to other loan-related expenses such as application fees, document charges, pre-payment penalty, etc.

Dealer Fees and Taxation

Fees structure varies from one dealer to another. But, here are the most common fees charged by dealers

1. Vehicle license and registration fee

2. Title fee

3. Documentation fee

4. Compliance fee

5. Floor plan fee

6. Advertising fee

7. Dealer preparation fee/Shipping fee

8. Sales tax

A dealer charges additional fees such as emissions testing fee, fee for vehicle inspections and smog checks from a used car buyer.

The Car Costs

Once you buy a car, you will have to consider several expenses such as car insurance, repair and maintenance costs, fuel costs, etc.

If you think you can manage the cost of buying a car, only then sign the sub-prime car loan contract. Remember that assuming financial obligation without thorough thinking can cause a financial disaster. So, don’t be in a hurry to obtain a sub-prime car loan. Think about it and then say yes.