The auto dealer exemption in the financial reform bill means shady auto financing practices will continue. Photographix.ca/Flickr photo.

The financial reform bill that was signed into law this month included an auto dealer exemption. The auto dealers’ exemption allows them to escape auto lending regulation that could have prohibited many common deceptive auto lending tactics. To get a better deal, first time car buyers need to be aware of these practices. They also need to do their homework before they get auto financing.

Lower car payments, higher interest rates

AOL Autos reports that the auto financing operations at dealerships, not auto sales, have become their real profit generators. Car dealers ask their customers what kind of payment they want, not the car loan interest rate they’re looking for. Then the dealership maneuvers to fit customers into the car payment they desire, regardless of the interest rate. An interest rate one or two points lower could save a car buyer hundreds or thousands of dollars over the life of the car loan. Car buyers need to be careful working with an auto dealer on car loan for their next vehicle.

Know about your credit score and dealers’ interest rate deals

Bankrate.com reports that dealers are middlemen working with lenders who give them wholesale interest rates. Dealers mark up those rates by up to 3 percentage points. Some dealers take advantage of car buyers who aren’t aware of what car loan interest rate they qualify for by writing them a loan for a higher rate. Know your credit score and what type of interest rate it qualifies you for.

Get approved for a loan before going to the dealership

A good way to know for sure what type of interest rate you qualify for is to get approved for a loan before you even set foot on the car lot. However, The New York Times reports that if a car buyer shows up already approved for a loan, dealers will try to find some other way to make money off them. Dealers will try to sell window etchings and service contracts or disability and other insurance. They might even try to force buyers into these auto add-ons by implying that the add-ons are a condition of getting a loan or getting a good rate on one — which is illegal.

Don’t sign anything that says loan approval is a condition of the sale

The Times article mentions a tactic called the “yo-yo.” A buyer drives away in the new car only to get a call from the dealership a few days later saying the car loan wasn’t approved at the current interest rate and contract needs to be rewritten at a higher rate. This can be avoided by getting the loan beforehand. If not, Bankrate.com says the buyer should ask the dealer to get finance approval from the lender first. It may mean a few extra days before driving away with new wheels, but it will be worth the wait.

The cash loan amount you need

The amount you get from your cash loan will depend, of course, on the price of the car minus any cash you have on hand. If you want a car that costs about $8,000, and you only have $3,000 cash on hand, you will need to take out a new car loan of $5,000. Larger cash loans like these come in forms of auto loans and installment loans, because you just cannot pay the entire loan amount back at once. (If you could, you wouldn’t need a cash loan, would you?)

However, if the car you are looking at costs about $3,000 and you have only half of that amount, we can help you get a cash loan of up to $1,500. Again, this may need to be paid back through installments. Just remember to take out only as much as you need and not any more.

The Application Process

When you are done reading this article, be sure to click on the green “Apply Now” button below. It will take you to the secure application form where you will then type in your information. Once this is complete, your information will be sent to a lender who specializes in larger cash loans like what you are seeking. They will review your information and give you an answer within minutes. Upon approval, you should have your money within a few hours – just in time to get rid of your old heap and get something reliable!

Pay it Back, Not Forward!

Cash loans should always be paid back on time. Rolling a larger cash loan forward can spell disaster for you if you fail to keep up with your payments. Installment cash loans are still subject to the higher interest rates, so keep this in mind when you plan out your budget.

Start your quick cash loan application HERE!

While the 2009 Honda Civic is flashy, you have many options when buying a Honda Civic in Atlanta. Image from Flickr.

The Honda Civic is one of the top-selling cars in the United States, and if you are looking for a Honda Civic in Atlanta, used or new, there are a few things you should keep in mind. A used Atlanta Honda Civic can be a great deal, while a new Atlanta Honda Civic has the style and everyday drive ability the brand is known for. Research what type of Atlanta Honda Civic you want, line up auto loans and make a smart purchase.

Know your Atlanta Honda Civic facts

The Honda Civic has been in production since 1973 and has been sold in Atlanta and the rest of the United States since shortly thereafter. There have been eight generations of Honda Civic vehicles, and a ninth generation is planned. In 2006, the Honda Civic design split – one type of Civic to be sold in the United States and one to be sold in Europe. If you are shopping for a Honda Civic in Atlanta, you are most likely to find these U.S. specific models or the older-generation used Honda Civics. Once you find the Atlanta Honda Civic that you are interested in buying, get a Carfax or Autocheck report on it so you know exactly what kind of shape the car is in.

Get your Atlanta Honda Civic financing

Getting pre-approved for your Atlanta Honda Civic financing is one of the smartest moves you can make when shopping for a vehicle. By being pre-qualified for financing, you can negotiate much more easily with the car seller. You will also not get locked into a higher-rate loan that is offered at the car lot. Getting pre-qualified for your Atlanta Honda Civic financing is easy. It is just one form, and takes less than an hour. Once you are qualified for an auto loan, you can take that information to the seller and know that a Honda Civic in Atlanta will soon be yours.

After purchasing your Atlanta Honda Civic

As soon as you have purchased your Atlanta Honda Civic, be sure to get it licensed and insured. You should include the costs of this initial setup in your auto financing loan. If you get a used Honda Civic, take it to a mechanic you trust to make sure that it is in the shape the dealer promised. Be sure to make your monthly payments on your auto loan, and your Atlanta Honda Civic will last you years. Congratulations!

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.

(Photo: flickr.com)

Whenever you purchase something on credit, whether it’s a product or service, we all find out about the magic of revolving credit. Whether it’s a mortgage, student loan, car payment or credit card payment, you’re paying two different things if you don’t pay off the credit in full immediately: principle and interest. Pay off the former and you’re done. If you’re only paying the latter, your adventure has just begun. It may leave you with a bit more cash til payday in the short run, but you’ll end up having to pay much more in interest charges over the long haul. The reverse – which is the more healthy financial decision – means that while you may find yourself in need of a cash til payday loan once in a while, you’ll be saving much more money over the years.

Go above and beyond

The best way to quickly reduce the principle balance of a loan or line of revolving credit is to make payments that go beyond the minimum monthly payment. This is contrary to what most Americans do, however. Making the minimum payment each month may free up short-term cash for consumers, but it ends up costing much more in the long term, thanks to compounding interest.

But won’t that leave you broke?

Not if you budget properly. As everything is expensive these days, it’s understandable that people aren’t looking to part with additional funds each month. This is typically the kind of thinking that goes into making minimum payments each month on loans and credit. Yet the best way to protect your finances long-term is to pay more than the minimum each month. That way, both interest and principle are paid down more quickly.

Get a jump on your financial future

If getting a jump on those interest and principle balance payments is your goal, some planning is in order. The best way to do this is to look at your budget. Once you’ve taken care of the monthly essentials, see how much you can afford to pay above and beyond the monthly minimum. If you’re used to paying a minimum of, say, $900 per month on your mortgage, try $1,000. With credit cards, try to pay at least double the minimum if you can, as these cards typically bear high interest rates. The more you can pay now, the less you’ll be paying for months and years. Sure, use a cash til payday loan if you need in an emergency… the end result will be all the sweeter. I’ll even give you a magic button you can use to apply for one, in case you’re in that spot right now

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Like anything else, making radical changes – in this case to your budget – requires a significant adjustment period. Be patient and understand that unexpected expenses do happen. Be flexible; you will have to adjust on the fly. Once you get the hang of it, however, you’ll be well on your way to paying off your major purchases. Paying off a 30-year mortgage or a 48-month car loan before their time ends up costing you much less in the long run. Who wouldn’t want to do that?

Related Video:

Cash For Clunkers has been extended (Photo: blogs.southtownstar.com)

Did you actually think that a Senate with a Democratic super majority would allow one of President Obama’s pet projects to die? Did you believe that the shot in the arm for automobile dealerships would be allowed to fade away? Did you think for one second that Americans would stop buying things they probably can’t afford?

Of course not. And that’s why Cash For Clunkers has been extended, to the tune of $2 billion taxpayer dollars. That will mean more payday loans with no faxing and short term loans for down payments, so it helps Personal Money Market, too.

Stimulate the economy, Mr. Obama!

Deb Price reports for The Detroit News that the Senate voted 60-37 and President Obama signed the bill this morning to turn the taxation switch and slam $2 billion more through the Cash For Clunkers program. By current estimate, this should keep the program going through at least Labor Day and fund about another 500,000 vehicle trade-ins. However, this will be the last time, say supporters of the measure. We’ll see about that last one.

“Now, more American consumers will have the chance to purchase newer, more fuel efficient cars and the American economy will continue to get a much-needed boost,” said the president. “Businesses across the country — from small auto dealerships and suppliers to large auto manufacturers — are putting people back to work as a result of this program.”

Breaking down the vote

In total, 51 Democrats, two independents and seven Republicans voted to extend Cash For Clunkers. On the opposite side of the measure, 33 Republicans and four Democrats said no. Two of the Democrats who helped drive the bill toward passing were Sens. Debbie Stabenow and Carl Levin. They’re both from Michigan, which should surprise nobody, considering that Detroit has been the heart of the American auto industry almost since its inception.

“This will be a great weekend to go out and buy an automobile,” said Stabenow. “I would hope it’s an American-made automobile; in fact I would hope it’s a Michigan-made automobile.”

Dealers love it

There were six amendments on the table that could have put Cash For Clunkers in deep freeze until the House returned in a month to vote, but none of the amendments made their way off the Senate floor. However, there are still prominent senators who think the whole thing is a bad idea, like John McCain. He thinks it’s “an unfair giveaway of taxpayer dollars.”

Automakers are very happy that the majority of the Senate don’t share his opinion.

“Cash for clunkers is a resounding success,” said National Automobile Dealers Association Chairman John McEleney. General Motors Co. Sales VP Mark LaNeve said “Our customers and dealers appreciate Congress’ help in keeping the program’s momentum going and providing the stimulus to put more clean, fuel efficient vehicles on the road.”

But will $2 billion last until Labor Day?

Perhaps it is a more accurate prediction of the amount of money Cash For Clunkers will need than the initial $1 billion projection that was supposed to last all the way to November 1. We certainly know that the program has been popular. But if popularity continues to surge – and if the recession begins to let up and the economy improves – there is a possibility that Cash For Clunkers won’t even make it until Labor Day. However, if people who can afford to make car payments are using the program, then it doesn’t matter so much when the program ends, but that it was used as intended. The economy will be stimulated.

The demand has been tough for dealers to meet

Meeting the demand of consumers who want their Cash For Clunkers discount has been a challenge for participating dealers nationwide. “It’s unbelievable. I’ve been buying as much as I can,” said Alan Helfman, who owns three Houston, Texas dealerships. “We are having trouble getting the models that are big sellers.”

In some cases, the automakers are considering an increase in production. Ford hasn’t decided yet, and GM may be on the verge. Tom Stephens, Vice Chairman of Product Development at GM, confirmed as much to Price.

Consumers are loving the Ford Focus

Fuel efficiency is on people’s minds these days, and it’s no surprise. Gasoline remains expensive, and people are thinking about fueling costs over the life of their new vehicles. This fuel efficiency, coupled with good reviews, may be what has made the Ford Focus one of the most popular vehicles asked for in the Cash For Clunkers program.

Don't do this to your car. Take care of it so dealers can benefit! (Photo: huffingtonpost.com)

Saturn dealer Dan Jonuska told Price that the Ford dealer down the street from his Saturn store have run out of the Focus. He believes this has turned their attention toward his lot for a look at what Saturn’s offering. Currently there are around 75 vehicles on his lot, and he projects he’ll sell 30-40 of those in August alone. In July, he moved 20 cars.

“We may not be first on the list, but if somebody wants to take advantage of the program, we have plenty of cars to sell,” he said.

Some dealers are going above and beyond

Many of the vehicles being traded in are simply to nice to junk as Cash For Clunkers mandates. That’s why dealers like Dave Knittel of Charlotte Lincoln Mercury are buying them as trade-ins. They’re even paying more than the $4,500 max that Cash For Clunkers permits. However, if the cars traded in can benefit the dealers’ business, why shouldn’t they do something like this?

“We really got to look at some nice vehicles,” he said. “All these people bought cars; we just didn’t ‘clunk’ them.”

Do you need a loan to take advantage of Cash For Clunkers?

Down payments are down payments. If you need the help of an auto loan, you can apply for one right here, right now.