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Exploring Used Vehicle Purchase Options

Financing A Vehicle With A Cosigner: Is It Worth It?

Posted by on 8:01 am in Uncategorized | Comments Off on Financing A Vehicle With A Cosigner: Is It Worth It?

Having bad credit is one thing, but what happens when you have no credit history to speak of? It’s a problem that currently affects over 45 million American consumers, mostly young adults who haven’t had any time to establish a credit history. It also affects people with existing credit histories that can’t be scored because they’re out-of-date or limited in scope. If you’re looking to purchase a new vehicle without an established credit history, you might find it very difficult to find a willing lender. In this case, having someone who can vouch for your financial well-being can be the key to getting the new vehicle of your dreams. How it Works When it comes to borrowers with bad credit or no credit, most traditional lenders are only willing to take a chance if another creditworthy person vouches for that borrower. Even subprime lenders may be hesitant to make a deal unless you have backing. This is where cosigning comes in. The process of having someone cosign your auto loan is relatively straightforward. You simply need someone who has good credit (preferably in the “prime” or “super prime” range) and the willingness to back your financial worthiness. For the cosigner, agreeing to the process essentially means giving the lender their word that you’ll reliably and completely pay off the loan amount. Advantages of Using a Cosigner Having a cosigner by your side can do more than guarantee an otherwise difficult loan approval. Your cosigner can also help you qualify for an auto loan with more favorable loan terms, including a lower interest rate. This means you could save thousands of dollars over the course of your loan simply by having someone cosign the loan. A cosigned auto loan can also be an excellent instrument upon which you can build up your credit, as long as you make all of your payments on time and in full. After you’ve successfully paid off the loan, you have a relatively strong foundation you can use to not only fortify your credit, but also be approved for loans that you might not have been able to qualify for earlier. Don’t forget that there’s plenty you can learn from your cosigner, including how to effectively manage your credit and make smart financial decisions that leave positive impacts on your credit score and credit history. Understanding the Risks Having a cosigner on your auto loan can be akin to getting into an intimate relationship. Once the cosigner signs on the dotted line, that person’s financial well-being becomes intertwined with yours. As long as you make your payments on time, there’s usually nothing to worry about. However, falling behind on payments or defaulting on the loan altogether could have serious consequences for that person’s credit, as well as yours. Not only can missed payments or a default tank your cosigner’s credit score, they could also wind up on the hook for the remaining loan amount. If the collection agencies can’t pursue you, then there’s a good chance they’ll go after the cosigner instead.   It’s no wonder that many people who need a cosigner usually ask spouses, parents, other family members, and exceptionally close friends — people who are intimately involved in that person’s life in one way or another. If someone close to you agrees...

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Looking To Buy A Used Car? Learn The Differences Between The Types Available And Which Is Best For You

Posted by on 10:06 am in Uncategorized | Comments Off on Looking To Buy A Used Car? Learn The Differences Between The Types Available And Which Is Best For You

There are many benefits to buying a used vehicle. One of the biggest benefits is that the price of a used vehicle is much less than the price of a newer vehicle. However, it is important that you realize that not all used vehicles are the same. Who you buy the vehicle from and what type of used vehicle you buy can impact the price of the car and your rights if the car needs major repairs. Here is some information you should know as you begin the process of looking for and buying a used car. Certified Pre-Owned Vehicle One of the types of used vehicles that you can purchase is a certfied pre-owned vehicle. These types of vehicles are inspected, refurbished and certified by a manufacturer-approved certification company. Typically, this is done by mechanic’s at their dealerships. For example, if you are looking to buy a pre-owned Ford, a Ford dealership is going to offer Ford certified pre-owned vehicles. The benefit to buying a certified pre-owned vehicle is that you know the vehicle has been inspected for problems and any problems have been repaired using factory-certified parts and standards. A certified pre-owned vehicle may also come with a longer warranty than other used cars from the dealership and may qualify for lower interest rates than other used cars. The downside to buying this type of used car is that they may be higher in price than used vehicles that are not certified. Used Car From a Dealer Another way to buy a used car is to purchase it from a dealer. A dealer is considered to be anyone who sells five or more cars per year. Generally speaking, dealers are held to higher standards when selling used cars than private parties are. Depending on the state you live in, you may be covered by lemon laws or used car buyer’s rights when you purchase a vehicle from a dealer, rather than a private party. Unless a used car is sold as-is, which must be clearly noted on the buyer’s guide on the used vehicle, there is an implied warranty that the car is fit for transportation. If the car has severe mechanical issues or needs work to make it safe and operable, you may be entitled to the cost of the repairs or even your money back. As such, used car dealerships inspect the vehicles they buy and sell and repair any problems. However, they may or may not use factory authorized parts or follow manufacturer’s recommendations. Buying a car from a used car dealer gives you some protection when buying a used car, while still allowing you to buy the car for less than you likely would if you bought a certified pre-owned vehicle. Used Car From a Private Party The last option you have for purchasing a used vehicle is to buy it from a private party. This means that you are buying it directly from the person who owns it and has driven it for the past few years. They do not sell cars regularly; they are simply everyday people who want to get rid of the vehicle they have. When you buy a car from a private party, you can typically get the best possible price for that vehicle. However, when you buy...

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Tips For Negotiating A Good Price On A Used Car

Posted by on 12:58 pm in Uncategorized | Comments Off on Tips For Negotiating A Good Price On A Used Car

Buying used cars or trucks is a great way to have a “new” set of wheels at a fraction of the cost. In fact, when it comes down to buying used or new, you can usually get a used car with more features than a new one for about half the price. But knowing how to negotiate to get that price is key. Here are three tips that will help you get the deal you want when on the sales lot. Be Assertive, Not Aggressive A common fallacy when buying a car is that the customer should have the upper hand by demanding the car you want at the price you want, or else you’re walking out. The truth is, this is rarely effective, and here’s why. According to Jason Lancaster, who comes from nine years in the car sales industry, many salesmen deal with customers like this all day. In order to sell cars, the sales person needs to be effective at establishing a fair amount of rapport with the buyer. And this can tax the emotions over time. The end result is a dealer who gets just as frustrated as the buyer when things don’t go their way. If you really want to get the best deal, be assertive without making aggressive demands. Aggressive behavior includes actively violating the rights of others, speaking in a loud tone of voice, criticizing, and trying to dominate the situation. Assertive people, on the other hand, know what they want and need, communicate those wants and needs effectively and with respect. They know how to listen without making unnecessary interruptions, and they’re good at establishing eye contact, showing confidence and an ability to pay attention to what the other person is saying. Lancaster also claims that a number of car dealerships are paid based on how satisfied their customers are, which is reflected in their ratings. Many salesmen will agree that they get their best reviews and ratings from friendly customers. In other words, it could actually be risky selling a car to a buyer who isn’t very polite. Bottom line, being assertive but polite will get you much closer to your desired results when making negotiations. Using honey over vinegar is always the best way. Know the Car’s Worth It’s a ton easier to negotiate the best price when the value of your chosen car is clear. Telling the sales person that you can only afford to pay $7,000 on a car that retails for a minimum of $10,000 probably won’t get you very far. There are several ways to find out what you should be spending on that used car. First, Kelley Blue Book will give you a figure on the wholesale and retail value. The wholesale figure is what one could expect to get for a trade in. This is handy information because it tells you what the dealer likely paid for the car. The retail value is how much it sells for on the dealer’s lot. The wholesale value is always less than retail, as the dealer must allow for some profit. Second, you’ll have to factor in the car’s condition, mileage, and additional features (2-door or 4-door, power windows, automatic, etc.). And lastly, doing a localized search online for a used car’s retail value will get you more accurate results. This is...

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6 Ways To Stay Alert And Safe On A Long Road Trip

Posted by on 12:01 pm in Uncategorized | 0 comments

If you are going to be going on a road trip this summer, you probably already know that falling asleep behind the wheel is a possibility when making a long distance drive. You probably already know that allowing yourself plenty of time to arrive at your destination, staying hydrated, and drinking caffeinated beverages are all strategies that work for staying awake and safe while enjoying a long distance road trips. However, there are several other ways that you can help ensure that your upcoming trip goes as smoothly as possible. Following are six of them.  Don’t Drive at Night Many people feel that they can make better time at night because traffic is lighter, but the body’s natural rhythm will cause you to be sleepiest during the period between midnight and 6 a.m. Visibility is also poor after the sun goes down, and the chances of encountering intoxicated drivers increases after dark. In most states, bars stop serving alcohol at 1 or 2 a.m.; this isn’t a good time to be on the road unless absolutely necessary. Drive a New Nissan Nissan Motor Company has recently began featuring driver detection alert systems in certain makes and models. If the system detects that the driver is drifting onto the wrong side of the white line or other signs of inattentive driving, it will provide both visual and audio warnings in order to alert the driver that the time has come to take a break from the road. An orange coffee cup will appear on the dash board, and chimes will ring. The system is designed to detect poor road conditions and other detriments to safe driving. Chew Gum Chewing gum while you drive is another good way to help you remain mentally alert. It has also been found that chewing gum may also help increase your reaction time, which is an important component in safe driving. While some consumers prefer to chew caffeinated gum for purposes of staying away, non-caffeinated gum also has benefits for those driving long distances. Listen to Something Engaging Familiar or soothing music may make it easier for you to fall asleep, so listen to something mentally engaging instead. Standup comedy is a good choice because you’ll be paying attention to the dialogue. An excellent way to remain aware on a road trip is to use your time behind the wheel to learn a new language by playing language-instruction CDs. You might also want to listen to CDs of narratives of novels or nonfiction subjects that you find to be of particular interest. Keep it Cool Although it’s tempting to turn up the heat for a warm and cozy feeling, allowing the interior of your vehicle to become too warm will be conducive to drowsiness. Keeping the temperature below 70 degrees Fahrenheit will help to keep you alert and aware, and it will also help if you enjoy cold beverages while you drive. Travel With a Chatty Partner If you are planning on gong on a solo mission rather than traveling with family and friends, finding a traveling companion who is skilled in the art of casual conversation can help you. If you don’t know anyone who needs a ride to your particular destination, you can sometimes find people through local online ads — just make...

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5 Ways To Save Money And Reduce Stress When Buying A Vehicle

Posted by on 7:21 am in Uncategorized | 0 comments

Because all auto loans are not created equal, it’s important to do your homework before you sign on the dotted line. The type of loan you end up with will depend on several factors, including your income level and credit score, but there are nonetheless a few strategies that you can use to maximize your chances of getting the best possible loan for your individual needs and purposes. Following are five ways that you can maximize your savings and minimize your stress during the vehicle purchasing process. Negotiate Price Online Purchasing an automobile generally involves a bit or bargaining, and you can easily hedge your bets by doing your haggling from behind a screen. You’ll be far less likely to give into sales tactics if you’ve got some electronic disconnect between yourself and the salesperson. Also, there’s a growing trend among car dealerships to provide their Internet sales force with a salary rather than a commission-based payment plan. In lieu of commissions, Internet sales personnel are often offered bonuses based on volume, which provides them with an excellent incentive to give you a good deal rather than haggling over details. Arrange Your Own Financing Arranging your own financing with your own bank or credit union is another strategy that works in your favor when negotiating the best price deals on automobiles. Auto loan pre-approvals are generally valid for a period of 60 days, which will provide you with plenty of time to shop around for the right vehicle. Keep in mind, however, that simply because you are pre-approved through your bank or credit union for a loan does not mean that you must accept the loan. Consumers often have good luck using pre-approvals as leverage with car dealerships to negotiate even better offers on financing. Maximize Your Trade-In Before making a commitment to using your current vehicle as a trade-in, shop it around if you have time. You can usually get a better price for it if you sell it as a private individual, which will provide you with more cash to use as a down payment on your next car. Auto dealerships also vary widely in what they’ll offer on trade-ins, and some will purchase your used vehicle outright even if you aren’t buying a car from them. Make Timing Work in Your Favor Buying a new vehicle at the end of the model year is an excellent way to get a great deal — the time frame for this is generally from August through October. Dealerships are often anxious to move cars to make room for the newest models, meaning that you’ll be able to get a better deal on unsold stock. You may also be able to negotiate a better price if you plan your purchase for the end of the month, because salespeople may be trying to meet their monthly quotas during this period of time. Find the Right Dealer If you’re going to depend on the dealership’s shop to perform regularly scheduled maintenance tasks, it’s important that you find a dealer that is a convenient distance from your home or office. Keep in mind that, sometimes, the dealer who offers you the best price may not be the one who best suits your individual needs and preferences. Doing business with a dealer you like...

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