Things felt like they were finally turning around for Aaron Woodrum in March 2015 after several months of unemployment. The 38-year-old had fallen behind on bills, causing his credit score to slip. But, thankfully, he’d secured a new job, bolstering his prospects. He just needed a car.
Automakers have come up with some creative incentives and rebates in order to make the sale price a bit more palatable. One of the more, uh, interesting ones is a rebate offered by a Fiat Chrysler dealer for having a low credit score. I can’t say I’m surprised.
Buying a new car can be exciting. The chance to score a great deal is especially alluring and right now seems to be the perfect time to buy a car. Car sales are down, incentives are up and used car prices are falling. A good chunk of you should probably hold off for awhile, however.
Several weeks ago, we mentioned how investors are getting nervous because the number of “deep-subprime” loans—that is, those given to consumers with credit scores below the 550 FICO range—are rapidly increasing. Well, here’s another potential point of concern: borrower fraud in U.S. auto loans is also surging, …
Technology has made car buying much easier, but also much more perilous. You can get price quotes and even apply for a loan with just a few clicks. But some unscrupulous dealers are using electronic loan contracts to take advantage of buyers and even sell them cars they didn’t even know they bought.
Knowing your FICO score—essentially, how your credit stacks up—is a powerful tool for getting the most competitive rate on a loan for a new car (or anything else, really), but the number that a lot of web services show you and the number that the lenders really use may be very different.
Millennials! The youths. Such a silly bunch, with their Instagram Stories about artisanal bacon. According to a recent report, they are so accustomed to monthly subscription costs, is that they look at buying a car the same way. Sounds good in theory, but not the best practice.
Lending subprime auto loans to drivers has reached its highest point in a decade, and U.S. auto debt hit a record $1.16 trillion in 2016. This spells bad news for automakers, who may soon be the victims of their own generous deal-making in the next financial crisis.
For only the second time in a decade, the Federal Reserve is raising interest rates. If you have a major purchase coming up like a home, it’s likely you will be paying more for that loan. How the increase will affect your car loan depends on how the manufacturers react.
Jay Leno knows a lot about cars, way more than I will ever know in my lifetime. He knows the modern cars, the classics, the weird stuff and everything in between—but when it comes to paying for them his advice is a bit limited.
Negotiating the price of a car is relatively easy. However, actually getting a loan for your car can get a bit murky due to the nature of the lending industry and how “credit” is determined, which can lead to some dishonest practices.
It’s not like we didn’t see this coming. With several years of record car sales, low-interest rates, longer loan terms and rising transaction prices, the number of car buyers with that will have to roll over negative equity with their trade has reached record levels. The picture’s not pretty.
We all make mistakes, and sometimes small mistakes lead to bigger ones—especially when it comes to debt. It’s easy to get on a high horse and tell someone what they should or shouldn’t have done; coming up with solutions can be a lot harder, and this debt-saddled car owner needs a fix and not more judgment.
When it comes to car buying, the advice of focusing on total cost instead of monthly payments has been around for a while. But people are creatures of habit and get help but get caught up in the monthly payment mindset. There is, however, a right and a wrong way to do this.
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.