How To Get A Guaranteed Auto Loan

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Unsecured Loans - Raise funds without collateral
Most of us have a long list of wants but limited resources to fulfill them. Adding to it some of us don't have any security to back the loan. However, you don't have to lose heart if you are facing same kind of situations. The best solution for you will be to opt for Unsecured Loans. More and more people are joining the bandwagon of Unsecured Loans everyday because of its appealing features. The m... Read loans article



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Interest rates, repayment terms, and collateral requirements are all major factors to be considered when determining which loans offer you the best deal... after all, it's no deal if you're having to pay exceptionally high i... Read loans article



How To Get A Guaranteed Auto Loan
A guaranteed auto loan means pretty much just that, you are guaranteed an auto loan. Usually regardless of your credit rating, you are still guaranteed a loan. Guaranteed auto loans work off of preset numbers. Now the interest rate on this type of loan usually run a lot higher, if there is no other way for you to obtain an auto loan then this may be a way for you. But, before jumping off into this method, educate yourself on other possible methods of obtaining a loan.

You can get pre-approved for an auto loan through guaranteed auto loans. Approvals usually last for three days, or as long as the car you want is available. If you choose to go through this method of getting a loan there are few things you will be asked before giving your personal information, such as the vehicle information, a few bank questions and stipulations, terms of the loan, and you will need income to qualify.

Do the homework necessary to be well informed when obtaining a guaranteed auto loan, it will keep informed of your rights, you'll be glad you did in the long run. Do not go out and take advantage of any guaranteed loan without first looking into all possibilities. Just because a company is guaranteeing you an auto loan, does not mean they are the best auto loan for you. Protect yourself, and your peace of mind; look before you leap is a good rule to go by when getting an auto loan.

Matthew Henderson is editor at "Auto-Fleet.com." Stop by for a huge selection of information regarding auto warranties, Online Auto Loans, improving your credit, driving education and much more at Auto-Fleet.com

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RV Financing Information

Choosing a Loan Term - When More is Less

Many people who contemplate financing an RV, or any other high-ticket item such as a boat or private aircraft, are intimidated by the length of the financing term needed for an acceptable payment. Typical financing terms are 10 to 20 years, with 15 years being the most common.

Some consumers choose a shorter financing term and a higher payment simply because of their fear of the longer-term commitment. Even though they obviously know RV owners rarely, if ever, keep an RV for the entire term of their financing; they choose a shorter loan term. They unnecessarily strap themselves to a higher payment that could strain their budget - should illness, unemployment or other hard times take place.

Most buyers choose the longest term available to secure the lowest payment possible - even though they could afford much more. They pay more interest than principal during most, if not all of their acutal loan period, and wind up in an "upside-down" position.

In other words, the remaining payoff on their loan is much more than the actual value of their unit when the time comes to trade or sell their RV.

A Hybrid System

Savvy RV buyers use a "Hybrid" type of financing system to get the best of both worlds. They finance the RV for the longest term available for the loan amount, which makes the payment lower than they can actually afford.

During the loan, they make the monthly payment PLUS an additional amount, which is directly subtracted from the principal amount of the loan.

When this approach is followed with discipline, it can lower the "effective" interest rate to as much as half the original rate - as well as dramatically shortening the length of the loan term.

It also allows the most flexibility. Should the borrower face a situation where times are rough or money is tight, they still have the luxury of making the lowest payment possible.

An Example of a $50,000 Loan

Interest Rate - 6.25%
Term in Years - 15 years
Payment Amount - $428.71
Total Interest Paid - $27.167.80

If this person added $50 to each monthly payment, he would change the repayment terms to:

Effective Interest - 5.64%
Loan Term in Years - 12 years
Total Interest Paid - $18,927.20
TTL Interest Savings - $8,240.60

Now lets assume that this person added $150 to the monthly payment.

Effective Interest - 2.66%
Loan Term in Years - 8 years
Total Interest Paid - $5,556.17
TTL Interest Savings - $21,611.63

What's the Bottom Line?

Comparing our last example of a consumer applying a hybrid system - to an individual who took out an 8-year loan upon purchasing the same RV... The hybrid system would have saved nearly 4% in interest over an actual 8-year loan term.

By shortening your loan term from 15 years to roughly 8 years, he would have saved over $21,000 in interest. He has also reduced the "effective" interest rate to less than 3%.

Plus, the buyer has paid off a 15-year loan in about 8 years! Even if he misses a few months of additional principal payments, he will still have saved thousands of dollars in finance charges.

The additional $150 per month added to principal has saved about $78 per month over choosing an 8-year initial loan term. That equates to about $7,500 savings in payment amount over the course of the loan.

What if I Don't Make the Additional Payment?

The key to making a hybrid payment system work - is discipline. You must make the additional principal payment every month, or very close to it. You should be certain your scheduled payment amount plus any additional amount you plan to add toward principal is within your budget.

Even if you intend to use a hybrid payment system, but never add an additional penny towards principal - you will have simply paid off your loan in the same manner the majority of RV buyers choose.

Barry Wilder has been associated with his family RV business for over 25 years. He is currently the owner of Best Rate Financial Services, providing loans and refinancing for RVs, boats and aircraft. They also provide RV and Boat Warranties.

Best Rate Financial Services RV Financing and Loans - http://www.bestrate-loans.com


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How To Get A Guaranteed Auto Loan
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