Auto Financing loan - How you can get low monthly payments on loan

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Secured Homeowner Loans - What Your Mama Never Told You
Secured homeowner loans come in a variety of different types and amounts, and are intended for a wide variety of uses.

These loans can be used for the same purposes as most personal loans... they can allow you to purchase a new car or other vehicle, pay for education expenses, make improvements or repairs to your home, or even consolidate several debts into a single low monthly payment.... Read loans article



Cash Advance - Pitfalls of Payday Loans
Getting a cash advance or payday loan may alleviate your money worries. Naturally, these loans must be repaid. Before getting a personal cash advance, carefully consider the advantages and disadvantages. While these loans are great for emergencies, the extra fees and finance charges may create further burdens.

How Do Payday Cash Advance Loans Work?

If you apply for a payday c... Read loans article



Auto Financing loan - How you can get low monthly payments on loan
Finance departments are where dealers make most of their profit (well, financing and after-market products).

Their profit lies on something called the "Finance Reserve." That is the difference between the interest rate the dealer is offering you and the lower interest rate (called the "buy rate") the bank offers the dealer.

For example, lets say you have a credit score of 700. The finance manager offers you a conventional loan through Generic Bank at, say, 6.9%.

But what you don't know, as you sit there negotiating, is that the dealer already has a standing arrangement with the bank that says that any buyer with a credit score of 700 can have a loan at 4.9%. If you go for the 6.9%, the dealer keeps the other 2%. That's the "Finance Reserve." For the dealer, it's just gravy. Cash in his pocket.

Most banks cap a dealer at 3% over the "buy rate," but not all do. According to our latest reports, Ford Motor Credit, for example, has no cap on the dealer mark up. That means you could pay anywhere from 1% to 10% more than what you actually qualify for.

Don't worry, the dealers are not out to get you. This financing reserve sometimes works in your favor. It allows the dealer to offer competing interest rates to consumers who have no chance of getting that rate elsewhere!

Regardless of how cards fall, smart car shoppers get their credit report score and look for loan quotes before they walk into the dealership.

Daniel DeHaven is the Editor in Chief of the BuyingAdvice Team ( http://www.buyingadvice.com). He understands the auto business. He's been around it - all of his life. Daniel has been a consumer advocate voice for over 15 years. He has learned every trick and profit ploy car salespeople use... and mistakes buyers tend to make.

Copyright © 2002-2005 BuyingAdvice.com, INC. All rights reserved.

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Car Loan Refinance - How to Avoid Dealer Scams

Refinancing your car loan can reduce your rates and payments. However, you want to avoid dealer scams that can cost you big money. Take some preventative steps by doing your own research and working directly with the lender. In addition, don't be afraid of questioning terms to be sure you don't get scammed.

Do Your Own Auto Loan Research

Start researching car loan rates and terms online. Many financing broker sites give you multiple quotes to compare. They will include interest rates and fees. They will also list the APR, which includes both rates and fees. Using the APR allows you to make a quick comparison without doing a lot of math.

Also check out terms. You can choose to pick a short or extended term. Ideally, you will want a short term car loan to keep your interest payments to a minimum. But, an extended term will lower your payments.

By doing your own research, you take charge of your financial situation. You know what kind of deal you can get, and you don't have to rely on false promises from a dealer.

Work Directly With the Vehicle Lender

Once you have selected a lender, start the application process. You don't need to go through a third party, even if you have bad credit. When you submit your application, you will receive a more detailed description of your refinancing package.

You can walk away from the loan process at any time, even three days after the paperwork as been sign. Be sure to ask the lender any questions you have. Professional companies will provide you with quick answers.

Question the Terms of the Vehicle Loan

Before signing any paperwork, be sure to read the details of the contract. You should never sign over title to your car. Nor should you sign any blank documents.

Federal law gives you protection from predatory lenders. You have rights, including the option to void the contract anytime during the application process.

By taking the preventative step of researching lenders, you will save yourself from several headaches. You can also scope out the best refinancing deals and start saving money on your car payments.

Here are our Recommended Auto Finance Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


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Auto Financing loan - How you can get low monthly payments on loan
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