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Auotmobile Loans - acquire the real car loan

May 9, 2008
Very few people use their own funds when they decide to buy a car but how much do you know about auto loans? If you haven't used a loan like this before, it is a great way to fund a car because it is secured by a lien on the vehicle being purchased; as payments are made, the loan gradually reduces in favor of the borrower.

Once you have been allocated your budget, the more enjoyable side to the process occurs as you take time to search for a car that you like which is just a case of going online.

Many sites allow you to determine exactly what you are looking for and they will only provide you with cars that match that criterion. New cars will obviously be more expensive but that doesn't mean you cannot have your choice of car if you don't mind have a model that is a couple of years old because this loan is available for used models as well.

Anybody can get the auto loan provided they have a good credit history so never make the mistake of applying for it without first checking out your credit score.

Poor credit scores can often mean higher interests rates which might be costly over the life of the loan so it's a good idea to have any errors corrected first. A credit score below 550 will cause problems so if you are able to, I urge you to have this repaired first.

Most finance institutions are able to supply an auto loan but the rates will vary as will specific terms so it is best if you shop around for the best rates and don't forget to use the internet!

A number of different finance packages will be available but bear in mind the total amount payable when you look into this and not just how much the monthly premium is. Many people choose a low 'down' payment thinking it's easier to manage but that choice increases the total cost of the loan and in the end they may end up paying more than what the car is worth. Although you do not require protection insurance to arrange finance, the lenders will usually reward you with slightly lower premiums if you do; someone who has not arranged loan protection insurance will still be eligible for the loan even though there is a slightly greater risk.

Most car dealerships will offer a rebate against the car if you decide to take out their finance package and this is a worthwhile action to take; once the rebate has been given, the finance package can be rearranged with another, less expensive company to save even more money. Two particular online auto loan specialists E-Loans and Capital One Auto Finance do not even charge for the application or a down payment. Some dealers will even match the quotes with those that are supplied by online lenders so you may be able to negotiate with the car dealer directly.
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