There’s a confusing, bureaucratic mess playing out right now at the Consumer Financial Protection Bureau, an independent federal watchdog that oversees financial institutions. And it could scuttle a possible lawsuit the agency was preparing against a bank notorious for issuing subprime auto loans.
When they step foot in a dealership, car shoppers generally focus on haggling the best price. But don’t forget: car loans are shoppable, too.
Santander Consumer USA, the subprime auto lending subsidiary of the Spanish banking giant, has replaced its chief executive following years of regulatory scrutiny that has mired the company in controversy.
There is a battle happening on dealer showrooms right now. Right now, heavily discounted new cars are facing off against an excessive inventory of pre-owned models. The winner of this fight could be you, if you play your cards right. In order to help move used cars, automakers and banks are offering incredibly cheap…
It’s unfortunate that some people get buried in debt. I frequently get emails from folks underwater on their car loans and most are hoping for some solution that defies the laws of mathematics. Here’s the real answer: there is no real answer.
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.