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Are Long Term Car Loans Really A Good Thing

Are you thinking about a car loan in the future? You’re definitely in the right place! We’re really crazy about car loans, but the truth is that you have to still go in and do your homework to really make sure that you’re making all of the right moves from start to finish. Yes, it’s tempting to just rush into getting a car loan, but the truth is that you’re going to end up making your life a lot harder than what it needs to be. It would be better in life to really make sure that you have things under control when it comes to such a major financial purchase. While we believe in the power of car loans, the truth here is that you’re going to have to think about the type of loan that you get.

For example, should you get a car loan with a long term? The truth is that the longer the term you get, the lower your monthly payment is going to be. When you’re thinking about anew car, a lot of people think about getting a long car term so that they can actually afford a much more expensive car than if they had a shorter term. However, what you really should do is make sure that you use a car loan calculator.

Loan calculators help you really figure out what you might be paying for your car payment each and every month. Calculating is a smart idea because then you won’t be tempted to spend too much money. A nice car is definitely something that everyone wants to have, but at what cost? If you overspend you’re not going to have the car for very long. Even if you manage to keep the car, you’re going to always find yourself wishing that you had a little more money to spend.

A longer term means lower payments, but it also means that you’ve spent a lot of money over the life of the loan. The longer you have the loan, the more interest that’s going to be generated. That’s why a lot of people tend to go with a much less expensive car to start with that has a shorter term. It might make payments a little high in the beginning, but the truth is that as time passes the payments will get smaller and smaller. In addition, you can always help yourself out by making sure that you think about extra payments. Tax time is a great time to make an extra payment on your car loan because it goes straight to the principle before anything else.

Are you wishing for a new car? Then you’re moving in the right direction. The bottom line here is that you want to always make sure that you’re focusing on your overall financial blueprint. Short term desires are nothing compared to long term goals. A car loan with a long term might be what fits into your blueprint, but there’s really only one way to really find out — you’re going to have to calculate it out and see for yourself!

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There’s Every Reason in the World to Apply Online for a Car Loan!

The thrill of a new car can be hard to beat. Even if it’s not a completely new car, let’s face it — it’s new to you, so it still counts, right? You’re still going to be excited to drive it, and you’re still going to protect it well. However, if you’re not excited right now, it’s probably because it’s also dawned on you that if you really want to get a new car, then you will need to make sure that you get a car loan. In a perfect world, everyone would just have the extra cash to spare to get a car without getting a loan, but this world is far from perfect. Even if you do have the spare cash to get a car, you might want to save that for a rainy day and still get the loan anyway. It just depends on what you really want to accomplish.

The good news that you need to hear right here, right now is that there’s really every reason in the world to get a car loan right now. Now, if you’ve been watching the news you might feel that the world is just too uncertain to get a car loan right now. Yet there are a few flaws to that argument.

First and foremost, the truth is that every economy is uncertain. Even in good times, we don’t know when things are going to get sour. In fact, it’s in down economies where a lot of great deals are. If you have the ability to get a car loan and you know that you can afford the payments, there will be a lender that’s willing to work with you. From the lender’s point of view, it would be better to get a customer that can pay back the loan than not get a customer at all. If this means that they have to be a bit more flexible in the requirements, then so be it.

From there, you have to also think about the fact that cars cost the dealership money for every month that they sit on the lot. So if you’re thinking about securing dealer financing, then you can definitely get that too. Again, the dealers know that people aren’t going to have perfect credit, but they need those cars gone. If you’re excited about getting a new car, then you will just need to make sure that you let them know that you’re willing to make a deal. Even if you have to accept a higher interest rate, then it’s worth that to get a car — especially if you really need one!

Overall, it’s a great time to get a car loan, especially when you think about all of the deals that are available online and offline — what will you get? There’s only one way to find out, and that’s to get started today! You’ll definitely be glad you did!

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Stop Your Car from Drowning You in Debt!

The way you approach buying your car could mean the difference between owning a car you can afford and struggling to make the car payment each month. You don’t have to settle for the cheapest car on the lot in order to stay within your regular budget. You simply need to understand that you have several options that could save you money on your car in the end.

Don’t Settle for the First Offer

Car loans are competitive, just like any other purchase. Lending institutions are constantly changing their terms or offering special deals to entice customers to choose them when it is time to buy a new car. Make sure you do some research into the different rates and deals offered through several lending institutions before you make a final decision. If you decide to accept the dealer’s financing without looking into your options, you could end up paying thousands of dollars more than you needed to pay for your car. It is best to do the financial research before you visit the car lot so you won’t fall in love with a specific car before you find a great deal on rates.

Pre-Qualify Before You Shop

You will be a more powerful car shopper if you walk on the dealer’s lot with a pre-qualified loan in hand. The pre-qualification will provide you with a specific price range that you can comfortably use to choose the right car. You will also cut through the waiting period and much of the paperwork if you have already secured your car loan. Getting pre-qualified will also allow you to find better interest rates or lower monthly payments than you might otherwise get through the dealer’s financing.

Make a Larger Down Payment

Every dime that you spend toward your down payment goes directly toward the principle cost of your car. Try to make the largest down payment possible so that you can reduce the amount of interest you will pay over time. A large down payment can help you reduce the length of your loan and bring down the monthly payments. The longer your loan period is, the more you will eventually pay for the car. Anything you can do to reduce the amount of interest you owe will keep the cost of the car down and help you avoid getting in over your head.

Shop within Your Real Budget

It can be tempting to accept a longer loan so that you can buy a more expensive car. Every extra month you tack on to the loan period adds another interest payment to your car’s price. Establish a realistic budget for your car payments before you visit the dealer, and stick to that budget while you are shopping. It might be tough to pass up that more expensive model, but you will appreciate your disciplined purchase when you have the financial freedom to pay for your car and keep up all of your other expenses as well.

Jessica Bosari writes about personal finance and cars for CarInsuranceQuotesComparison.com. The site helps consumers compare car insurance rates to get the best price on car insurance every time.

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Car Loans

Not many people can buy a car straight off the lot, but acting like you can gives you a better bargaining position when you purchase a used car from a dealer. Take this into account by getting a loan from a financial institution separate from the dealership instead of the financial institution found in the dealership. It is a better idea to get a financing option from a lending company instead of working out a loan through the car dealership. If you get your car loans through the dealership you can often be fleeced for numerous added charges and your monthly payments will be marked up as well.

Having your car loans done through a bank or other lending company will put you into the consideration of a cash buyer through the dealership as you will be buying the car outright instead of in installments. This kind of freedom is nice because you can purchase your car and whatever other accoutrements that might come with it for your car loan and not have to worry about payments to the dealership. They won’t try to over sell you anything because you will have only a set amount of money to spend and nothing more.

This kind of payment will also increase your credit score because you are proving you have the ability to be frugal and smart with your money. This is primarily because your credit report will show the transaction of the car since it is a major purchase and the fact that you don’t owe the dealership anything. Being square in the eyes of the credit companies is your best option when considering future purchases. Your score could take a beating though if you don’t pay off the lending company in a timely manner.

Paying off your car loan is not a tricky business really if you get your loan through a lending company. Car loans through a lending company will accrue interest just like loans from anywhere else. You will have to pay these loans back in a set amount of time and if you are unable the car can be repossessed.

If you are well off enough, you can reduce your interest by putting extra payments against the principle (the initial amount lent to you). Reducing your interest is a great way to lessen your monthly payments while sticking to your intended schedule of payment. Staying up on your payments is another great way to keep future car loans in good standing.