The types of consumer loans available in the auto motive market are incredibly diverse. The options available today can be confusing from the prime to sub-prime plus with new vehicle dealer offering manufacture incentives from low rates, flexible terms, packages and cash incentives. The question if often ask what is the best way to pay for a vehicle? Lets review some of the options as it relates to traditional options out there on the market today. If you would like to begin your credit process our team of experience Credit Manager we will work hard to find a program that offers the best value. Hope to see you in the future and if you find this information helpful or have any questions feel free to contact me
(Keith Sills) via G-mail:
Why Fiance a new vehicle over used?
Lets take a look at to days market, the vehicle purchasing costs have become very competitive and the spread between that one year old used vehicle over new has become increasingly smaller especially with imports. Incentives provided by the manufacture like flexible term easy of approval and lower than posted bank rates traditionally 3-4% point advantage as low as O% with conditions to review. If you can keep the new vehicle cost with in reason as most used vehicle finance rates range from 9-12% for clients with reasonable credit history to mid twenties for sub-prime and the traditional purchase of extended warranty added to the over all purchase price. Ideal for reduce risks associated with potential mechanical issues or the true cost ownership could be much higher than that of a new vehicle. The ability to build or select an affordable new vehicle platform add in finance terms, incentive and factory warranties (Mitsubishi 10year-160,000km) included all leading to a monthly or bi-wkly payment that can be very close if not lower compared that used vehicle overall cost of ownership. Buy with confidence as the new vehicle will have a clean history as you are starting fresh no past issues to watch for like hidden liens, branding from theft recovery, salvage, rebuild, weather damage like flood or hail, past care and service of the vehicle will never be in question. Sometimes financing can be easier as the Leander understand the value of the product, no debate over the condition and understanding of oprational costs.
Why buy a used vehicle
Yes the use car market can be the answers to many buyers needs and lets face it we all can not justify a new car purchase. But the level of risk can be higher for potential problem finding that balancing with the rewards of a pre-loved vehicle can be tough. First things first understand the affordability of what you want to spend sit down with a credit & finance specialist to find out the true cost of ownership. You may need to find out some basic details to help you shop for the best buy as most lenders have requirements relating to your vehicle selection. To give you an idea some lenders have a rang of years and Kilometer's that reflect in rate changes, terms and conditions of the loan, some also have preferences on vehicle brands, all based on market trends and past experience. The group of lenders out there to day work together using a credit reporting service so credit shopping can reflect in higher rates or loan approval hurtles that may not truly reflect your personal financial out look. Good example of that is a client dealing with past credit issues, fresh to the market or work related like self employment, seasonal or limited history and tyring to buy that vehicle that will not meet a lenders requirements will still be listed as a credit decline. I have seen this in the industry many times a client will select a product off the sales floor not factoring in there personal credit scores. Then being approved at terms that will not work for them or decline leaving the deal in credit limo effecting there ability to work a deal any-ware else. That why most vehicle dealer prefer the Pre-application process mimicking the mortgage industry. When was the last time a person bought a house with out first addressing the basic issues related to personal finances.
High Rate+Low Price? Look closer
In House Financing, Credit Services or buy here and pay here are other areas of the finance market place that you will see at some of the dealer lots. Usually geared to older vehicles and captive clients that can't qualify for traditional lenders & is it bad? Well no, maybe, sort of, sometimes it's depends on the deal and the position you are in. You may just need a car today with no questions asked but be prepared to pay a higher interest (up to 29.9%), the loan maybe closed, and the vehicle is usually priced higher than market value. This style of buying and selling is getting more common with the changing economical climate it is not that out of the ordinary to find older trades with financing owing as it is the clients credit starting point. The key is not to get in to deep financially and find the vehicle that will just cover you until your credit is improved a year or two and keep your payment schedule so you can qualify for a standard loan down the road.
