A new car loan could be cheaper than buying used thanks to 0 percent financing and a low inventory of used vehicles for sale. Image: CC madro21/Flickr

In an economy turned upside-down, a new car loan has become more affordable that buying used. Car buyer incentives from some automakers are so generous that conventional wisdom about car buying can be tossed out the window. Certain makes and models cost less per month new than the same vehicle driven for a year by a previous owner.

Free financing sends auto lending askew

Unless you’re paying quick cash, getting a loan for a new car could be smarter in many cases than buying used. Because interest rates remain extremely low in the aftermath of the recession, loan rates for new vehicles have imploded. According to Edmunds.com, the average rate for an auto loan was a mere 4.16 percent in December. Strangely enough, more than 15 percent of auto loans are virtually devoid of interest. General Motors, which is showing signs of life after a notorious government bailout, offers 0 percent financing on 50 percent of its auto loans. However, 0 percent financing isn’t for everyone. Strong credit is needed to qualify for such a sweet deal, to the tune of a FICO score of at least 650 and sometimes above 700.

How new cars can be cheaper than used cars

While average interest rates for new car loans are about 4 percent, rates for used cars are still about 8 percent. Plus, the price difference between used and new cars has also narrowed for a number of reasons. The “cash for clunkers” program in 2009 cleared the market of about 700,000 used cars. The financial crisis and credit crunch that hit new car sales so hard affected the amount of used cars being traded in. And some deals on new cars are so generous that a new vehicle is cheaper over the life of a five-year car loan that a one-year-old edition of an identical model.

Which new cars are cheaper than used cars?

To make a list of new cars that are cheaper than used cars, Edmunds.com compared the average used car interest rate of 7.7 percent with a 0 percent new car loan available for certain models. Auto loans were for five year terms, and other incentives were figured in. Some of the vehicles on the list include the Audi S4 Premium Plus Quattro Sedan, with a savings of $1,020; the Honda CR-V EX with a savings of $1,320; and the Toyota FJ Cruiser base model, also with a savings of $1,320.

Sources

MarketWatch

MoneyWatch

Edmunds.com

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In the past 20 years, Porsche has not released many concept cars. The Porsche Boxster and Carrera GT are the only models that have been displayed, states blogger Brandon Hill of the last two decades. The German car manufacturers have proved today that when they put their minds to it, they can lead the way in green designs. You won’t be able to buy this hot car with just a no credit check payday loan, however. You will need a real bad credit auto loan if you want to drive away in style.

Porsche leading the pack

Today Porsche revealed a gorgeous new model concept called the 918 Spyder. This car is definitely a beauty; it’s sleek and stylish — not to mention very high tech, with its improved power-train. Brandon Hill compares it to the Ferrari F430, Porsche Carrera GT, Porsche Boxster, and Porsche 911 GTI:

Disk wheel design is a flash from the past

The disk wheel design is only one of the great features on this concept car. It also features seating for two, all-wheel drive and dual side-exiting exhaust pipes on both sides of the car. I would definitely be a 918 Porsche if I was a car. This concept kills the potential competition!

Will it ever make it to production?

The fact that this is made by Porsche tells me that this car is quality for sure. It seems German-made cars are among some of the best luxury vehicles on the road today. This 918 Porsche is made for performance with its V8 500hp engine and a front and rear electric motor that adds about 218 more horses.

This concept can reach 60 mph in 3.2 seconds flat, and it is capable of traveling 16 miles on battery power alone, according to Hill. All these improvements equal about 78 mpg, according to Porsche and Hill. Hill says “No one knows if all of this performance goodness will ever make its way into a production vehicle, but one can hope that at least the styling cues and maybe a toned-down version of the hybrid system could make it into a production vehicle.”

I’d love to see this vehicle and others like it make it to production.

It would be nice to see versions of this technology translated into a more affordable car. This way all Americans can benefit themselves and the environment more practically. Of course, there’s no telling how long it will actually take to get the gas guzzlers off the road for good, but hopefully it won’t be too long. The earth has been holding its breath for far too long and it could certainly benefit many aspects of life on this planet, too.

Best overall vehicle

Despite Toyota’s recent recall disasters, the influential magazine has named the Toyota Lexus 460L best overall vehicle. With gas mileage of 24 on the highway and 16 in the city, the full-size luxury sedan scored 99 on Consumer Report’s 100-point scale. The $70,925 price tag means that you’ll probably need a loan to buy one of these cars, even if you have plenty of cash now for a down payment.

Best family sedan

Top honors in the family sedan category went to the Nissan Altima which may be good news if your payday cash doesn’t always flow like wine . The Altima carries a manageable price tag, somewhere in the range of $19,900 $29,600, and gets reasonable gas mileage, too (32 hwy, 23 city).

Best small sedan

The Hyundai Elantra SE took the award for best small sedan. Priced at a mere $17,845 that plenty of people could finance with just a small loan, the Elantra gets decent gas mileage (34 hwy, 26 city) and comes equipped with electronic stability control, a proven life-saving feature not available on many other small cars.

Best sporty car

The Volkswagen GTI, a turbocharged version of the VW Golf hatchback was named best sporty car. Without completely sacrificing gas mileage (31 Hwy, 21 City) and without a price so high that you need your own personal money lender ($23,465-$24,070), the four-cylinder engine offers 200-horsepower and performance –oriented suspension.

Best small SUV

The Subaru Forester came out on top in this category, with fairly impressive fuel economy (27 hwy, 20 city) and a moderate price range of $20,295 – $28,495. Consumer Reports temporarily suspended its recommendation for the Toyota Rav4 as its top choice in this category following the manufacturer’s recall and stop-sale order, but it’s back now and affordable with the help of a good loan company.

Best family SUV

With its roomy interior, easy ride and responsive handling, the Chevrolet Traverse took the prize for best family SUV. With a fairly steep price range of $29,224 to $39,985, the Traverse offers less-than-optimum gas mileage (24 hwy, 17 city) and may not be the best automobile choice for if you already need money now.

Best green car

Not surprisingly, for the seventh year in a row the Toyota Prius took the prize in the green car category. The price of the new redesigned version remains reasonable $21,400 – $28,070 and at 48 hwy, 51 city its gas mileage is hard to beat. Described by the magazine as safe, reliable, and easy to handle, sales of the Prius were not interrupted by the recent recall, allowing it to remain on the Consumer Reports top-10 list.  It shouldn’t take credit counseling to figure out that this car makes good financial sense.

Best sports sedan

The Nissan Infiniti G took the title in the sports sedan category the fourth year in a row. Priced between $33,250 and $40,400, the Infiniti G offers agility and luxury with plenty of power and gas mileage of 27 hwy/19 city.  Not a bad choice, especially if you qualify for low interest loans.

Best family hauler

Yes, “family hauler” really is the name given to this category, and the winner is a microvan, the Mazda5. With gas mileage of 28 on the highway and 22 in the city, this small and maneuverable family hauler (I just really like saying that again) is economically priced between $17,995 and $23,005.  If you’re already a candidate for cheap payday loans and need to buy a car, this is a model to consider.

Best pickup

Stripped down at $20,850 or souped up at $41,775 20, the Chevrolet Silverado offers the fuel inefficiency typical of even less worthy pickups (20 hwy, 15 city), plus optional interior comforts and a measure of dependability. If you’re in the market for a pickup but find yourself short of cash today, a basic version of the Silverado may be just the ticket to debt survival.

The recession was difficult for everyone.  In particular, it created a new group of borrowers who have tarnished credit. Despite bad credit, many people still need to buy cars. Many believe that if they have bad credit buying a car is impossible, but that’s not true. Especially today, when car dealerships are willing to work with all credit levels to increase sales, it’s possible to find reasonably priced vehicles with reasonable financing terms. Here are some tips on how to find a lender if you have imperfect credit.

Don’t be desperate

Consumers are warned to not act desperately just because their credit scores are low. Don’t feel that you need to grab the first financing offered to you no matter how unfavorable the terms may be. There are still good deals out there to be had and now is a good time to start searching for a car loan. In a Bankrate.com article, Jack Tracey, executive director of the National Automotive Finance Association, confirmed that lenders are relaxing their lending guidelines in the post-recession economy. Tracey said, “It’s become easier than it was late last year. The economy is improving, and some of the financing sources are coming back into the market.”

Strategies for finding a car lender

Here are some helpful hints for finding a good car loan when you have bad credit:
Remember that all lenders are not the same. Some lenders will look at bad credit in a more positive light than others. That’s why it’s important to shop around. A person may only qualify for an 18% interest rate with one lender, but another may offer 15%. That difference in interest rates can mean thousands in savings over the lifetime of a loan.

Check with the financial institutions first. It’s best for a consumer to start the search for a car loan at their bank or credit union first. Applying at a current financial institution can greatly increase chances of approval at a decent interest rate.

Don’t go to bad-credit lenders first. There are many lenders who cater to bad-credit borrowers. Though they may sound good, a lot prey on customers who think they are at the end of their financial ropes. They’ll promise loans, but with exorbitant interest rates. These lenders know that their borrowers are desperate, but no matter what kind of credit scores they have, borrowers should take a little time to search out better deals.

Look for the lowest APR rather the lowest monthly payment. Lower monthly payments don’t always mean you’re getting the best loan. Many lenders offer low payments, but frequently the low payments are the result of an extremely long loan term. If you need more than 36 to 48 months to pay off a car, chances are very good that you’re buying a car you cannot afford.

Be wary of variable interest rates. If you finance through a dealership, you may be offered a loan with an interest rate that varies over time. Sometimes these are referred to as “yo-yo sales” and they are a bad idea for any buyer. These loans allow the dealership to elevate interest rates days or weeks after the deal is signed. Many borrowers with bad credit are offered variable-interest car loans. They should be avoided whenever possible.

Be cautious in a recovering market

Buying a car with bad credit is possible and it isn’t necessary for anyone to grasp at the first offer. Even in today’s depressed market, there are numerous options when it comes to auto financing. It may take some time and effort, but once you find a reasonable interest rate, a reasonable monthly payment and a great car, it will all be worth it.

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Buying a new vehicle

Anyone looking to purchase a new car most likely is concerned with how to get a personal loan. In the past people were able to pay cash for car purchases, but due to the recession, now most people are in need of financial help. If you are looking to buy a vehicle, there are some rules of thumb to remember during the process. First of all, anyone looking to search for loans should start with a good budget. Knowing your financial situation is crucial when deciding on what price range you can afford. Start off with a basic assessment of your expenses versus your income. Remember to take into account insurance and car maintenance when coming up with your final numbers. You want to make a wise decision with what you can afford because it will dictate your payments for years to come.

Checking credit scores

Today’s world is all about credit. Anyone who has tried to get a loan knows how important the credit score can be. Don’t ignore your credit and then get the bad news when you are sitting across from a loan officer. Rather, do your own research. Pull up all three of your credit reports. A good rule of thumb is to request them six months prior to applying for a loan. Once you get your reports check the following items:

• Name, address, and aliases

• Each individual account

• Amounts owed and dates

• Judgments, if any

• Bankruptcy information

• Outdated information

You want to write to the credit bureaus and challenge any issues that are inaccurate, outdated or misleading.

Decide on new-versus-used purchases

The next decision to make is whether or not you want to buy a new or used car. A new car can be tempting, but remember that there is a reason why this country sells about three times as many used cars as new ones. People understand now more than ever that cars depreciate the minute they leave a lot. In today’s recession people are more discerning than ever and aren’t prone to throwing away unnecessary funds. In today’[s economy it’s best to not be tied to a large personal loan, but rather opt for a loan that fits into your budget. New cars inevitably come with higher price tags. Unless you have the funds to pay more, and lose more in depreciation, a good used car is the most advantageous option.

Pick the best car for your life

Finally, car buyers should consider what type of car they realistically need. For example, a car being purchased to drive children around needs to have ample room. On the other hand, a car for a senior citizen should be more focused towards economical choices. Other questions like “Who is the primary driver?” and “How many passengers will normally be driven around?” should also be addressed.

Buying a car wisely

In the end, buying a car is a big decision. Anyone in the market for a car should be wise with decision making. Especially in today’s economy, people need to be as cautious as ever regarding finances and that includes big-ticket item purchases. Most likely a personal loan will be needed to fund the cost, but minimizing it can save thousands in interest payments over the years of the contract.

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Buying a new car

When it comes to buying a new car, most consumers look to personal loans for financing. It is a great time to start looking because of the recession. Car lots are full and dealerships are trying to get rid of inventories with deep discounts and out-of-the-norm specials. If you are in the market for a new car, do some research and leg work before you go to a dealer. Here are some tips on how to handle the transaction.

Getting pre-approved

The best move when it comes to financing is to get pre-approved. Just like you would comparison shop for a new pair of pants, you should also do some searching for loan products. Not every loan is right for every person. The advantages of being pre-approved are that you’ll save time at the dealership, you most likely will find a better deal independently and you have more control over your loan’s terms. You can talk to the dealership’s finance department, but remember that they traditionally are more expensive. It’s best to take matters into your own hands when it comes to money.

Shop around

Anyone who has purchased a car knows that there are huge variations in loan products with lenders. A simple search can save you hundreds of dollars over the course of the loan. Remember to never sign anything without knowing the exact details of the interest rate, terms and loan lifespan. Once you do know the terms of various lenders you can compare them to see which one is the most beneficial. It’s also a good idea to check with dealerships and see if they have better deals there. It is not necessarily a bad idea to work with a dealership for financing, but it is a bad idea to make them your only option.

Another thing to remember when it comes to financing is that a loan company will offer you extras. Things like extra accident insurance, health insurance, and extra protection will all increase your cost, but their value is overrated. Stick to the basics and pass on the extras.

Lending from the dealership

Once you have some research from other sources for your personal loans, you can check with the dealership’s finance department. Many dealerships have strategic alliances with lenders and can get you the loan you need relatively easily. The dealership will do more to get you the loan because they have a vested interest in getting you the car. The worst case scenario is that you find a dealership trying to give you a loan out of your price range. If you did your research beforehand, you should have no problem taking your other loan options.

Lending from credit unions and banks

Both banks and credit unions offer nonnegotiable rates and normally they are lower than the dealership’s interest rate. In 1991 the IRS got rid of the income tax reduction for interest on personal loans, with the exception of home equity loans. It gives a tax deduction on principal up to $100,000. Banks know about the tax law and are offering “tax smart” loans that give customers a return on the car loan. The great thing about these loans is that they offer the normal qualities of a loan, but with the added tax deduction.

Buying the car

In the end, buying a car should be a great experience. The key is to do some legwork before hand, though, to make sure that all the details of financing and personal loans are taken care of. That way, when you walk into the dealership, you can confidently start looking for the car of your dreams, knowing you can afford it.

Apply here for Personal Loans

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If you’re in the market for a new or used car or wondering if there’s a way to lower your monthly payments on the car you own now, check out the new Car Deal Expert website. It’s a great resource for anyone who owns a car or is thinking about buying one – and that’s a lot of people. Car Deal Expert can save you thousands of dollars by helping you find the very best car loan available.

A full-service site

Car Deal Expert offers a full range of financial services for car buyers and car owners. In addition to great deals on new-car loans, used-car financing, and auto refinancing, you’ll find expert answers to all kinds of automobile-related questions. Should you purchase an extended warranty? How much of your income should you spend on a car? What’s the best way to finance an RV? Can you save money by refinancing your car loan? How does a loan pre-approval affect your negotiating power with car dealerships? Can you get a car loan without good credit?

No hassle, no obligation

At Car Deal Expert, the entire loan-approval process is done online. All you do is fill out one short application and Car Deal Expert does all the legwork for you. Within minutes, you’ll be in contact with a lender offering the best available terms for your individual situation. There’s no waiting or worrying or hassling. And there’s no obligation, either. Car Deal Expert will find you a reputable lender very quickly, but whether you agree to the terms offered is completely up to you.

Improved bargaining power

Getting a quick loan pre-approval on the Car Deal Expert site before you go out to buy a car can save you a lot of headache and trouble, not to mention money. If nothing else, when you’ve already been approved for a loan, you’ll know whether the financing offered by the dealer is fair. And when you walk into a vehicle showroom with a pre-approval in hand, salespeople are less inclined to persuade you to spend more than your stated limit.

Lower interest rates

When you apply for a loan through a car dealership, you may not be offered the lowest interest rate available because higher interest rates can mean higher sales commissions. But when you apply at Car Deal Expert, you will be matched with a lender offering the lowest interest rate available, or a choice of lenders offering various rates and loan terms, depending on your circumstances.

New-car loans. Buying a new car is one of the most important investment decisions most of us will ever make. But too often, people get so excited about the car that they don’t bother to shop for a loan. Instead, they walk into the dealership and blindly accept whatever financing the dealer offers. Many online lenders have better interest rates and more favorable loan terms than dealerships do. So before you go out to buy a new car, take just a few minutes to find out how much you can save by getting a loan pre-approval through Car Deal Expert.

Used-car loans. New-car prices have risen steadily over the years, and used-car prices have kept pace. Used-car financing has become commonplace, and today, if purchase a vehicle that’s only one or two years old, your payments will be nearly as high as a new-car loan. New or used, buying a car is a huge undertaking, and it makes good sense to shop carefully for the best possible loan.

Auto refinancing. If you bought your car when interest rates were high or if you accepted dealer financing without shopping around for better deals, paying off your existing car loan with a new lower-interest loan can save you thousands of dollars. If you bought your car before you had established credit and you’ve been making your payments regularly for a couple of years, you might be able to qualify for a lower interest rate now. If you’ve been working on improving your credit score and you’re still paying on an auto loan, there’s no reason to wait until the next time you buy a car to get a better interest rate. By refinancing your vehicle, you may be able to save money every month, starting right now.

Moving on

The past few years have been economic nightmares for lots of people, but that doesn’t change the fact that most people still need cars just to get to and from work. Lots of people today are afraid to apply for a vehicle loan because of damaged credit scores resulting from the loss of a home or job. But buying a car and making regular payments on the loan can help repair the damage done. If you’re lucky enough to be back on your feet with a job, making car-loan payments like clockwork can do your credit score a world of good.

Getting an answer

There’s a comforting anonymity in applying online for a loan at Car Deal Expert. If you don’t qualify, at least you have an answer, and no one’s going to know but you. But if you don’t apply, you’ll never know; and if you do apply, you just might be pleasantly surprised. Best of all, if you qualify for a loan through Car Deal Expert, you can rest assured you’re being offered the best terms available.

If you are going to trade a vehicle in under the Cash For Clunkers program you might as well apply for a down payment assistance loan to put some money in your pocket to help with purchasing a vehicle. Everyone knows that you can get a better interest rate and repayment terms when you have more cash to put down on your down payment. Keep reading to find out what installment  loans for bad credit can do for you.

Direct Deposit In As Little As 2 Hours

When you have extra money for a down payment for your vehicle it makes the whole car buying process much easier. The more cash you put down the lower your monthly payments in most cases. Who doesn’t want a lower monthly payment on the new car they are buying. It is to your advantage to get up to $1,500 direct deposited to your account in as little as two hours.

Online Short Term Loan Options to Help With Down Payment

You have a couple options for obtaining this quick cash before you trade your vehicle in for the cars.gov Cash For Clunkers program. You can apply right on this site for the following types of online loans:

• Click To Read About Cash Advances
• Click To Read About Payday Loans
• Click To Read About Installment Loans
• Click To Read About Short Term Loans
• Click To Read About Personal Loans

Cash Advances Online

Cash advances are typically obtained through employers, banks, and other financial institutions. Many refer to cash advances online as direct deposit loans and payday loans. Speed and convenience are the benefits of applying for a cash advance online. Usually cash advances are not available for loan amounts over $1,500.

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Payday Loans Online

Payday loans are many times obtained in walk in stores in the borrowers local area. Most users of payday loans don’t even know they can get them online. The advantages of a payday loan online is there are typically no faxing of identification documents required. You don’t have to show pay stubs or proof of address on utility bills etc. Like cash advances these loans are typically $1,500 or less.

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Installment Loans Online

Installment loans are an alternative to the typical payday loan and cash advance type of loans. Most borrowers of installment loans know they can get them online and are usually more picky about where they borrow from. The advantages of installment loans consist of generous repayment plans. Unlike payday loans and cash advances, installment loans online provide a much longer payment period. Some installment loans can range from $300 up to $2,500.

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Short Term Loans Online

Short term loans are very similar to installment loans and have longer payment plans. Many borrowers of short term loans don’t mind credit checks and prefer for their loans to count on their credit reports. Building credit with short term loans online is available with some lenders. Typically applying online does not require a credit check. Like installment loans and personal loans some short term lenders will lend over $1,500 depending on the qualifications of the applicant.

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Personal Loans Online

Personal loans are usually unsecured but there are some types that are secured and do require collateral. Like short term loans some unsecured personal loans require credit checks but that is not typical for the online variety. The advantage of personal loans online is the amount you can borrow. Many personal loans range from $100 all the way up to $10,000.

Start Your Application For Up To $1,500 Below