Car Dealer Leasing Tricks

Too often when it comes to auto-leasing, people get so dazzled by the myriad terms and the jargon thrown their way that they end-up paying through the nose, relying on a dealer’s “help” than their own informed decision.

Here is a look at some of the tricks dealers use to pad their profits and leave the customers shelling hundreds of dollars more than the deal should be worth.

Trick 1: Leasing always a better deal than buying

Dealers use the lure of lower-monthly payments to entice customers to sign for long-term loans, with terms stretching for five years or more, making the payments even lower. There are two catches with such lengthy contracts: higher mileage, exceeding the prescribed limit, and hefty repair costs.

With leases charging on average 10 to 20 cents a mile for any extra mile over the agreed amount in the contract, and warranties only covering three years, you leave yourself wide open for hefty charges for excessive mileage and wear and tear.

Trick 2: Cheap 2-3% APR rate on your lease

The dealer is not quoting the interest rate you would be paying on your lease; he’s rather giving you the lease money factor. Whilst similar to an interest rate and important in determining your monthly payment, a more accurate rate is calculated by multiplying the money factor by 24. For example a “cheap” 3% money factor is 24 X 0.003 = 7.2%. This gives you a better sense of what your annual interest rate on your lease contract is.

Trick 3: Stress-free early lease termination

Dealers know consumer driving needs change and they would like to have the option of getting out of a lease commitment sometime down the road, before their lease ends. Truth of the matter is, when you sign for a lease, you are effectively saddled with monthly payments for the remainder of the lease term and there is little-choice of getting out early. Lease contracts carry hefty financial penalties for either defaulting on monthly payments or terminating the lease earlier than the scheduled term.

To avoid being on the receiving end of such tried-and-true tricks, educate yourself about leasing. Get down to the nitty-gritty and understand what the leasing terms used by dealers mean. Crunch the numbers along with him and understand how they arrived at the monthly payment figure. Don’t sign anything until you’ve understood all the terms and your numbers much those of the dealer. Do not let the dealer pressure you into signing; you are the one to determine whether the agreement is right for you.

Student Car Loans Now Made Easy

Every young American student who is eligible for a valid driving license feels the need to own his or her own car. And in a way there need is justified, between college tuitions, home and part time jobs they are the ones who need an automobile the most. Most of the banks and credit unions are very wary of providing college student car loans, mainly because students have low income capacity. Even if they agree they may insist on a guarantor or a co signor for your loan, which may not be an option for everyone.

Online car loans for college going students

However in this modern era the advent of numerous online car finance companies have come as a boon for students. They have specially designed car loans for students with no credit. And these online car financing companies are not in a limited number. A few clicks on the internet search engines and you will be able to see a plethora websites that deals in online car financing for college students. Hence do not settle for auto finance deal until you have compared loan terms for your category in these sites. Some of the websites also functions as brokers allowing you to compare deals offered to you by various lending companies.

Car loans are usually fully secured loans, where in the car it is held as security by the lending organization. This is until you have paid your last due installment. So that if you default on your payments and are not able to pay back these loans then they will take possession of the car. Student car loans are no credit type financing as normally most students would not have taken part in credit transactions that are tracked by credit rating agencies. Hence it is advisable that they take the repayment of these loans seriously. This loan can be a stepping stone in building a secure financial future by starting to create a new positive credit history. But this can only be possible if they pay their installments on time without defaulting. If they do not, they face the ignominy of starting their credit history on a very negative note, where in future lenders would be very weary to give you any sort of financing services.

So students need to make an honest introspection and evaluation of kind of vehicle they need and can afford. Because there are other costs too involved with owning a car. Apart from the principal and the interest amount the student also has to pay for insurance; gas (it is advisable to choose the most fuel efficient one among the available options) and other maintenance cost (like servicing charges, oil change cost etc.). So be prudent and make a smart decision.

There are in point of fact some good advantages of college student car loans. Firstly if you pay off the car loan payments on time it will replicate positively on your credit score ratings. Credit agencies all the time look to see if you have taken out loans over the itinerary of your credit history. It is not easy for university students to get a student car loans with tight finances, but now many online lenders like www.carmoneyfast.com are offering student car financing at very affordable interest rate. Now students can get pre approved financing for car despite bad credit.

Drive Away The Car Of Your Choice!

Car financing rates vary from one lender to another. The online option proves to be the best option if you are keen on securing a car loan at a favourable rate of interest. It is also the most convenient way and does not involve too much of paper work and other formalities. Moreover, the lending institutions offer such car loans even to people with a bad credit history.

Want to go in for a used car? Then, opt for UK used cars and get the best deal on car loans. It is a very popular option amongst borrowers residing in UK. We strive to offer you the best rates keeping in mind your financial position. A favourable credit score will definitely help you get a better deal on the car loan. We have helped scores of borrowers in the past. You can benefit too. No matter whether you have CCJ’s, arrears, defaults or missed payments, you can still opt for UK used cars!

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Car Loan Insurance – Protect Your Car against Damages!

Before signing any loan contract, it is advisable that you have ample information on hand. This will guide you to take a suitable decision. Getting a car loan is not difficult. But once you get the car loan, it is important that you also protect it from any mishap or damage. If you purchase a minimum amount of liability coverage to protect your car, you will be trouble free in case you car is damaged. You need to be careful while choosing your auto or car insurance just as you would be while searching online for your car loans for best rate.

Doing some research will help you get a favourable deal on the car loan insurance. Don’t jump at any offer that comes your way. Tread carefully. The online option also gives you the option of choosing the best car insurance. One can possibly get a lower auto insurance quote with an inexhaustible online resource to search from. It is no more a tedious task to find cheap auto insurance rates online. The online option enables you get quick financial assistance in a short period of time.