I recently heard what is possibly the worst piece of car buying advice I’ve ever heard: my father-in-law, who is in the market for a car, was told that rather than get a car loan, he should take a home equity loan instead. Here’s why that is a horrible idea.
About once a week I come across an article that claims to give “car buying hacks,” or purports to tell “secrets the dealer doesn’t want you to know.” While some of this advice is helpful, other tips are just blanket statements that maybe won’t result in you getting the best deal.
If you are buying a vehicle from a private seller, you might be more likely to get the price you want if you bring cash to close the deal. However, if you are getting a car from a dealership, cash isn’t always king.
Dave Ramsey is a financial guru to many people. His advice has helped millions get free from crushing debt. This is a good thing for those folks struggling to get by. Unfortunately, Mr. Ramsey, like many of his financial advisor colleagues, is a little too uptight about letting you buy a new car.
Almost everyone shopping for a car wants something for nothing. When it comes to lining up the financing, most buyers shoot for the zero percent interest loans. However, not everyone will qualify and those that do might be leaving money on the table.
My PT Cruiser with 140k miles is becoming a money pit. I need another car, but due to some medical bills my credit score took a massive hit and I have no cash for a down-payment. I’m worried about getting a loan with a high interest rate, but I’m also hesitant to deal with the headaches of another used car.
When you have a record year for car sales such as what happened in 2014, you can also expect a record number of auto-loans. Credit reporting bureau Experian says that Americans borrowed a staggering $886 billion dollars last year to finance new and pre-owned vehicles, but they maintain this is no cause for alarm.
Despite concerns raised by financial analysts, organisations within the auto industry are not worried about a so-called sub-prime auto loan bubble. Credit reporting bureau Equifax, not only refutes the possibility of a sub-prime crisis, but also suggests that these loans are helping car buyers.
Subprime loans, the same type of horrible financial junkfood that led to the bonanza right before the financial meltdown in 2008, went right back into bonanza mode over the past year once people figured out they could use them to sell used cars. And once people realized, firms started cutting back. And now the…
Hey did you know that the all new Chrysler 200 also known as "America's Import" can easily be confused with a high quality Japanese or German car? You didn't? That's o.k. because if you live in the Midwest you can finance one at 0% interest for 84 months. Take that Honda and BMW!
Financial analysts have been raising concerns about the amount of sub-prime lending happening within the auto industry. Some are worried about a lending bubble that could have a negative impact on the economy. But lenders are actually scaling back the the numbers of high-risk auto loans.
Sub-prime lending has been on the rise recently and experts are conflicted as to how it will impact both the industry and the economy. What is a growing concern is sub-prime lenders with predatory or otherwise unscrupulous business activities such as First Investors Financial Services Group.
Our friends over at Bloomberg have some excellent analysis as to why the record number of sub-prime auto loans does not necessarily mean an economically devastating bubble.
Ed Niedermeyer over at Bloomberg has some excellent analysis about auto-loans, leases, the economic crisis, and the dangers of owing more than your car is worth.
Not long ago we reported that sub-prime loans on automobiles are making a comeback. Despite the fact that 32% of all auto-loans are going to sub-prime customers, the vast majority of car buyers are making payments just fine.
Some good news and bad news on the car-buying front. The good news is that the American economy has improved to the point where credit is much more readily available than it was a few years ago, so people have an easier time financing cars. The bad news is that the terms of their auto loans are increasing dramatically.
USA Today, America's most colorful newspaper, is running a story about devices that are being used to ensure car payments are made on time or it will kill the car. It's not the most high tech device in the world, but I'm sure it works and gets the job done. A box installed in vehicles purchased with subprime loans…