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From the Los Angeles Times Dec. 30, 2007:
Americans haven't just been taking out risky mortgages for homes in
the last few years; they've also been signing larger automobile loans
for significantly longer terms than they used to. As a result, people
are slipping into a perpetual cycle of automobile debt that experts
think could lead to a new credit crunch extending from dealerships to
driveways and all the way to Wall Street. Gone are the days of the three-year
car loan. The length of the average automobile loan hit five years,
four months in October, up more than six months from 2002, according
to the Federal Reserve. And nearly 45% of loans written today are for
longer than six years. Even some staid lenders owned by the carmakers,
such as Toyota Financial Services and Ford Credit, are offering seven-year
financing. And a few credit unions, particularly in the West, are tinkering
with the eight-year note. At the same time, the amount of money drivers
owe on their cars is soaring. In October, the average amount financed
hit $30,738, up $3,500 in just a year and nearly 40% in the last decade,
according to the Fed. More troubling, today's average car owner owes
$4,221 more than the vehicle is worth at the time it's sold -- up from
$3,529 in 2002, according to industry analyst Edmunds. The longer loans
are directly related to the higher balances. By extending the length
of loans, lenders keep monthly payments down. But because these loans
take longer to pay off, a much larger piece of the principal remains
unpaid at the time the car is traded in.
Why do you think has bad credit car financing become so common in car
sales? A large number of cars are being sold to people who do not have
the best of credit, they may be in a spot of financial bother yet they
want to avail bad credit car loans. Why is that? The fact of the matter
is that you need to be able to move rapidly to take advantage of emerging
opportunity. If you cannot, then you may well have to resign yourself
to staying constrained and mediocre all your working life. With a good
car under you, you can move around, get extra work done and be more
productive. That is why more and more people are going in for poor credit
An important factor that you must consider is prepayment. Agreed, today
you may not think you will pay the loan off early, but who knows? Maybe
you will get a lucky break after two years and will find yourself with
a larger disposable income with which you may want to finish off your
loan early. Your online auto financing agreement should have a clause
that allows you to pre-pay. Why continue with a loan when you can clear
When you have acquired a car, you may well begin to wonder if you really
have the best deal you possibly could get. Maybe, you find financing
companies who offer lower interest rates. Why should you not take advantage
of these lower rates and finish your installments months earlier? This
is where re-finance comes in. Even if you have had terrible credit in
the past, bad credit refinance car loan companies will look at your
recent track record and your repaying capability and will possibly be
only too glad to give you finance with your poor credit.
There are, of course, a few norms. Your car must have good residual
value and your recent payments must be in time. If you also have savings
to show, then so much the better. If these conditions are met, getting
bad credit refinance auto loan is a breeze. The multitudes of online
companies in the market have given a customer so many options that getting
and paying for a car is now easier than ever before.
In the final analysis, these loans allow you to take charge of your
life and give you an option to change things around for the better.
Of course, you have to make the first move. The fact that you are reading
this page is an indication that bad credit car financing may well be
about to change your life.
Bad credit car financing gives many people an opportunity to take
a second chance at life. The mobility you get with bad credit car loans
opens up a number of options. With online auto financing, you can take
a second part time job more easily and generate much larger streams
Mani writes Dec. 23, 2007:
Refinance used car loans presents a unique opportunity by aiming at
reducing the debt burden. If you had bought a used car availing a beneficial
low interest loan and a sudden change in the market made the interest
rates suddenly higher, then you can make use of the new rates. If you
think that the pressure the loan is a bit higher than your budget can
afford, then you need refinance used car loans. After availing this
type of cheap car loan you donít have to pay high monthly installments.
These low interest car loans also benefit those who have improved their
credit score and employment status. This acts as a cheap car loan.
You can lower the loan payments by refinancing and by extending the
length of your loan, but you might have to pay more interest in the
course of the loan. The loan amount depends on the current market value
and the outstanding amount. You will not be able to get a loan in which
the amount surpasses the market value of the used car. Generally smaller
amounts are involved in refinance used car loans and this trims down
the hurdles of the lender. Before applying for any used car loans, you
should contact your current lender for the balance of your existing
The lenders like the banks, financial institutions and agencies have
a cyber home for catering their services. The vibrancy of the internet
has showcased their plans with details. If you want to make use of the
refinance used auto loans then browse through a number of sites and
obtain quotes from those agencies that interest you. Conduct a background
research on the agencies to find if they are really reliable.
Now compare the results you have in hand and see which one benefits
you the most, primarily looking for larger repayment duration and lower
interest rate. You can apply online by supplying details such social
security number, employment information, mortgage payment if any; monthly
income and contact information may be also required. An online application
saves a lot of time and there is no processing charge involved. As online
lenders work with several lenders, refinancing should not be a problem
if your credit is good or bad.
Finally: After receiving the check, send it to your previous lender
and complete the other formalities as per instructions.
Car Repair Loans: Apart from refinance used car loans there is another
important thing that you may benefit from Ė car repair loans. Car repair
loans funds expensive car repairs and pays for insurance deductible.
It even helps for a major breakdown. Refinance used car loans can relieve
one from the pressure of debt. People can refinance loans and benefit
from lower rates of interest. Applying for a refinancing is easier online.
Car repair loans are cheap car loan rate that can help you when you
need urgent car for car repairs.
There are many reasons why people take a refinance car loan. You may
be unhappy with your current loan. Your monthly payment may be too high
for you to manage. In this case, opting for a car loan refinance may
be your best bet. There a few benefits of getting a refinance that I
will mention below. There are also some things to be aware of in a refinance
car loan or used car financing.
The main benefit of taking a refinance car loan is that you can save
money on your monthly payments. The main feature of the loan is the
lower car finance rate. This is probably the only reason we need to
take such a loan. Lower interest rates mean lower monthly payments.
You can either pay off your loan faster or even extend the term of your
loan. You will find many companies offering to refinance your car loan.
It may seem difficult to choose the right one. You just need to consider
certain basic things. Once you do that, you can select the best company.
You should first see that the auto loan interest rate is lower than
your first loan. You must also take a look at all the terms and conditions
to make sure there arenít any hidden charges. Once you are certain that
you will save money on your monthly payments with a particular company,
you can go ahead and take a refinance car loan from them.
If your credit situation has changed, or interest rates have dropped,
it is possible to refinance a car loan. With the beginning of the New
Year, it is great time to get your finances in order, and escape high-interest
rate loans. Here's some of the options available - whether you are looking
for a new car loan, or to refinance an existing car loan- you can put
hundreds of dollars back in your pocket monthly, even, smartly move
dollars to savings or investment. RateGenius is a multi-state, web-based
loan brokerage company. By hosting a virtual marketplace, rateGenius
brings together qualified borrowers and competitive lenders to create
the best possible financing opportunity for our customers.