Most people can not plop down the cash to buy a new car outright. That means most of us finance new vehicles. Fortunately, financing a car is not hard…if you know what you’re doing. Here are five simple tips that can make the process much less painful and reduce your risk.

First, do not assume the dealer has to finance your car for you. That’s one option, but only one. Other options include getting loan online, or getting a loan from your bank. That last option is worth a serious look.

Most dealers will finance your car for you, but the person working up the financing deal usually works on commission. Who’s side do you think he’s on? You might end up paying more for your car than you want to. And speaking of paying more, you can use a bank loan to your advantage. If you get a car loan from a bank, that typically means you get cash to use to buy your car. If you walk into a dealer with cash equal to the amount you’re willing to pay for a car, many dealers will take your price, even if it’s less than they might be able to negotiate for. It’s a bird in hand for them.

Not only that, but getting a loan elsewhere can save you from price creep. For example, some dealers will charge a $300-600 fee for VIN etching (to etch the vehicle VIN number in the windshield) and say the bank required it in order to authorize a loan. Nonsense. And if you’ve got your loan already, you can nix that fee.

Second, shop around for your rate. The Annual Percentage Rate for loans is not set in stone. Finance companies are often willing to compete for your business. That competition works in your favor. Get the lowest rate you can.

Third, protect yourself against scams. The VIN number etching fee is one example, but it’s not directly related to financing. The FICO score scam is. That’s where the finance guys at a dealer claim they have an “official” report that grossly undercuts your credit score. Because you’re a greater risk (they say), they jack up your interest rate. If you get your credit scores before you go car shopping, you can pull out your own reports and cut this scam off at the knees.

Fourth, avoid using your home equity to buy a car. This definitely looks convenient, because the money’s there and available, usually at a nice interest rate. But when you use home equity to buy a car, you’re tying your car to your house. That can be a risky scheme. The subprime collapse demonstrated that in spades-if you lose your house, your car could go right along with it, or you could be forced to damage your credit so you can still get to work.

Fifth, never finance a car for more than 48 months. This is about your financial health. The monthly payment for a 72-month loan will be lower, but you’re signing yourself up for six years of debt. If you can’t afford to put at least 20 percent down on your car, and you can’t afford a 48-month loan, you really can’t afford the car at all.

These five tips should make financing a car easy and painless. It takes some due diligence and self control, but those can pay off very nicely in the end.
Adsit Company is a worldwide Mercedes Benz parts supplier specializing in new, used and rebuilt Mercedes parts, accessories, engines and transmissions. Adsit offers 10% discounts for online and fax orders as well as full service assistance by phone.

Categories: Bad Credit
Tags: bad credit car loan financing, car loan bad creidt, car loan financing, car loan with no money down, no money down car loan financing

Here is a top ten car insurance list from www.insweb.com

With the arrival of 2008 comes a new time to make resolutions, and hopefully keep them. While some may vow to quit smoking, lose 5 pounds, or start saving more money, this is the perfect time to start reaching your goals. One way to save some extra money that you might not be conscious of is lowering your car insurance rates. While comparing car insurance quotes is the best way to save money, there is still between 20% and 30% of the population that doesn’t comparison shop.* Here are InsWeb’s Top 10 Ways to Save on car insurance.

2. Select Higher Deductibles
Simply put, the higher your deductible, the lower your premium. Indeed the making accident claim), you’ll be spending the same out-of-pocket amount regardless.

3. Make a Cheaper Policy Even Cheaper: Don’t Pay in Monthly Installments
Additional administrative fees are commonly applied to payments when you split your premium in to installments (i.e. monthly, semi-annual, annual). Be aware that a monthly fee of even $7 can add up to $84 over 12 months.

4. Look for Multi-Line Insurance Discounts
The most under recognized car insurance discount results from the multi-line insurance policy: buying your auto insurance and your homeowners insurance from the same insurance company. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.
5. Collect on Your Good Driving

Most insurance companies reward good driving with lower premiums. In fact, in some states a good driving discount is required by law. If you haven’t had any accidents or tickets in the last three to five years, shop at InsWeb.com and see whether you are missing out on this money savings discount.

6. Don’t Overpay for Tickets
Unfortunately moving violations are an accurate reflection of your liability to an insurance company, and your rates can skyrocket as a result. Perhaps you deserve a higher rate, but don’t let the insurance company unduly punish you. Shop around and see if you can find a more reasonable rate with another company.

7. Look for Safe Vehicle Discounts
Many companies offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. In getting updated insurance quotes, be sure to indicate such safety features to benefit from available discounts.

8. Don’t Overpay for Your Unnecessary Coverage
You may be paying for coverage that you don’t need. For example, you may be a member of an auto club that provides towing services, yet you’re also paying for towing on your auto insurance policy. Look for opportunities to eliminate unnecessary costs.

9. Look for a Good Student Discount or Senior Discount
Students currently enrolled in school often receive a discount on auto insurance for good grades, as many companies feel conscientious students make conscientious drivers. Similarly, insurance companies are known to value the wisdom of an experienced driver, offering discounts to drivers over 50 as a result.

10. Pay Less for Driving Less
Many insurance companies will offer discounts on vehicles that incur low annual mileage. In fact, some companies have a predetermined number of what they consider low mileage. Has your commute changed? If so, it might save you money to get an updated quote.

Categories: Insurance
Tags: saving on car insurance, tips to save on car insurane

Predatory lending is known to be a very profitable business, but the lenders are the only ones who get the profits and the clients are likely to have problems. It is considered to be the reason for most the housing problems that are happening now. The predatory lenders are taking advantage of the clients who do not know about predatory lending.

Here are some points that can help the clients from falling to predatory lending and save themselves some heartache. Watch out for lenders like this:

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Automobile are generally easy to finance when you have adverse credit. However most of the consumers usually opt to get approved for a California car loan with the attempt to boast their credit rating. When you choose to finance a vehicle you would basically have two options of securing your personal and private financing or you can even accept the loan package that is provided by the vehicle dealership. However if you have a credit rating that is not up to the mark to get approved for a California car loan then the California bad credit car loans can be a good choice.

Know Your Credit Rating Make sure that you are equipped wit all the possible information before starting the process of car loans with bad credit. Before you can start your search for the best automobile, make sure to get a free copy of your credit reports. This will help you get a better picture about your credit ratings. If your credit scores are high then you can expect to get a good offer but if you find out that the scores are bad or not so good then the bad credit car loans can be a good option. A good financing option is usually offered to those customer show have a credit score of at least 720. In order to ensure getting a good rate for your new or a used car loan try to improve your credit score.

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It has become a sad story for most of the bad credit people of being neglected regularly by many loan lenders or else have to get satisfied with a higher interest rates loan. It has actually become a biggest obstacle for bad credit holders to fulfill their personal requirements whether it is to pay for their medical bills, or to purchase a car for their own leisure. A person with a bad credit tag is always a perfect impression of irregularity for most of the loan lenders. Therefore, to reimburse these bad credit holders, many loan lenders offer bad credit loans with higher interest rates. Same rule applies to car loans with bad credit.

Unfortunately, most of the people with poor credit will undoubtedly have to deal with higher interest rate when it comes to auto loans. Frequently, this problem occurs due to the lack of awareness of the borrower. Most of them go to the loan lenders without any preparation asking then what type of car loans they can apply without even having any clue about the current market rates. Even worse, these borrowers do not know what their credit score is and as a result they wind-up accepting the loan lenders offer as the actual truth. Having borrowers falling prey to these scams some of the loan lenders actually take full advantage of these borrowers. This happens in every part of the world and Alabama is also a part of this.

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