3 Ways to Save Money on Your Car Loan

Very few people can afford to pay cash up front for their next vehicle. Most buyers must finance a car through the dealership. Buying a car can be a significant expense, but car loans don’t have to break your budget. With a few minor tweaks to your car payment habits, you can save hundreds or maybe even thousands on your car loan.

Lower Principal

It just makes sense that the best way to save money on a car loan is to borrow less money from the start. Lowering the principal of your loan means you never have to pay interest on the amount you don’t borrow. You can lower your principal by making a large down payment or by trading in your old car. It is also a good idea to only purchase the add-ons that you really want so that you don’t have to borrow as much money for things that seemed like a good idea at first but that you won’t ever use.

Shorter Term

The longer the term of the loan, the more interest you will pay in the long run. It may be tempting to opt for the lower monthly payment, but it will cost more over the life of the loan. As long as you can afford the higher payments that come with shorter terms, that choice is in your financial best interest.

Extra Payments

When discussing the terms of your loan with your dealer, make sure there is no penalty for early payments. That way, if you have extra money one month, you can make an extra payment. Making a regular habit of paying extra any time that you can cuts down on the interest you will pay over time.

Car loans are an added expense, but they don’t have to be a stressful one. By making a few changes in the way you pay off the loan, you can save quite a bit of money.

Myths About Car Loans

Car loans are a great way of establishing a good credit history. But many people are intimidated because they hear false information about car loans. There are many misconceptions about getting a car loan that people need to be aware of.

Myth #1: You need credit before you can get a car loan. This is the biggest myth that often intimates people from trying to purchase a car. The truth is that almost anyone of legal age can get a car loan with a valid driver’s license and proof of income. Each of these is essential in making sure that you are a good credit risk. We work with quality lenders to make sure you get a rate that you can afford, which will in turn help you to establish credit.

Myth #2: You can’t get a car with bad credit. This is absolutely not true. In fact, many people use car loans as a way to re-establish credit. The lenders we work with assess credit risk and worthiness based on income. Making regular on-time payments on your car loan can help to rebuild faulty credit.

Myth #3: You need to have a down payment to get a loan. The third of the myths is also not true. Most people can walk into a dealership with nothing but their driver’s license and pay stubs to prove that they can pay an installment loan and can ride out of the dealership in a car. We work with a variety of lenders who will finance your car with no money down.

Now that you know that many myths you believed about getting a car loan are false, why not venture out and get one for yourself? A car is not only means of getting from one place to another on wheels, but also a way to get to another place financially. Visit us for a vast array of cars and financing options.

Reestablishing Credit With Car Loans is Easy

If you have no experience rebuilding bad credit, it can appear to be a daunting task. Take heart, though, for the right strategy can lead you to take measurable steps to improve your credit score faster than you ever dreamed possible.

Reestablishing credit with car loans is one of the best ways to accomplish this goal. When the new loan payments are paid in full and on time, you will receive a good mark on your credit history with each month that passes by. Even following a bankruptcy, this means that in the future it will be easier and cheaper to borrow money.

Automobile financing provides much less risk for our lenders than if they were financing a home. This is obviously due to the amount of money being loaned to the borrower. Reestablishing credit with car loans is a wonderful opportunity to demonstrate to the financial community that you are responsible and ready for more risk.

If you have been wondering if it was possible to get a car loan with bad credit, or you have been wishing for a way to improve your credit score, worry no more. Many kinds of people have rebuilt their credit in this way, and so can you. Your first goal as you enter this process should be to ensure that you don’t make any rash decisions that can make your credit score worse. Carefully consider how much you can afford, and be sure you can make the car payments every month.

In addition, make sure that you carefully consider the interest rates you are offered when you apply for your new loan. Lenders who specialize in bad credit car loans know how to help you rebuild your credit, but also are known to charge exorbitant interest rates. It’s important that you choose and work with a company that will help you partner with reputable lenders who run their business with integrity. The Loan Doctor can help you, call us today!

What to Expect With Poor Credit Auto Loans

When you are looking to buy a car, but you have a history of bad credit, it can seem like your dream is over before it has had a chance to begin. Luckily, there are plenty of options available out there for those who are looking to buy a car but do not have the credit that they wish. One way to do this is with poor credit auto loans. Taking out this type of loan can help you get behind the wheel of the car that you wish in practically no time at all. There are a few things to remember when you are considering this type of financing.

Taking Out the Loan

The first thing that you need to keep in mind is the amount of the loan itself. The size of the loan will be determined by several factors. The price of the car itself can make a huge difference, so if you are looking at a car that is not within your reasonable budget you can expect higher payments over the course of time. The duration of the financing plan will also change what you can expect in payments. The shorter the timeframe, the higher the payments. Sit down and create a reasonable financial plan in order to make the best decisions for your poor credit auto loans.

Making the Payments

As with any loans, making consistent payments in a timely fashion is a wise idea. How you make the payments is entirely up to you. When you make larger payments each month, you will be done paying off the car in a much quicker fashion. However, if you can only afford a specific amount each month, it is better to stick with whatever payment you can afford that meets the monthly requirement so you can get your credit in better shape. No matter how you choose to pay back the loan, it is important to stay on top of your game throughout the process so that you do not miss payments or harm your credit in any way.

Forge a Relationship With Your Mechanic to Make Your Life Better

A car is one of the biggest expenses in your life, so you might as well do everything you can to keep that expense as low as you can. This means you’ll want to work on developing a relationship with a mechanic who specializes in used cars like yours. Learn more about just what you have to gain by making nice with your dealership mechanic.

Loyalty Pays Off

When you come back to your mechanic time and time again for all your car repair needs, you’re likely to receive a bit of leeway here and there in regards to cost. There’s even a chance that you’ll receive a small repair for free. This is because mechanics know all too well how much competition is out there, and the fact that customers like you keep coming back means that they stay in business longer.

Remember Not to Get Defensive

If you aren’t an automotive expert, you won’t know when your car is having minor issues, but you’re likely to learn of those issues when you finally do take your used car to your dealership mechanic. Try not to get upset with your mechanic when you learn of all the many minor repairs your car might need and the potentially major cost that comes with them; your mechanic is just delivering the news. To keep this from happening, take your car in more often for a diagnostic run, even if everything seems to be working just fine.

Know That Not Every Repair Will Be Cheap

While it’s great to learn what you thought was a big repair with an equally big price tag is actually a minor repair with a minor cost, that won’t always be the case. When those major repairs strike, talk with your mechanic about what all that cost entails. Remember, good quality doesn’t always come cheap, and the relationship you have with your mechanic could save you a bit on those major repairs.

Create a relationship with your dealership with your mechanic to bring out the best in your used vehicle. While you’re at it, be sure to send some occasional business your mechanic’s way.