Is a Subprime Auto Loan Right for You?

With today’s subprime auto loans, almost anyone can get auto financing; they just have to pay a little extra for the privilege.

Subprime auto loans make credit available to more and more people. In fact, almost half of all car loans made annually in the U.S. are to subprime borrowers. While carrying higher interest rates than prime loans, subprime auto loans are typically not hard to get.

Subprime auto loans are made to borrowers with FICO scores of less than 620. But don’t take a lender’s word for it. Find out for yourself if you are in the subprime range and why. Get a copy of your credit report from all three main credit bureaus: Equifax, Experian and TransUnion.

Make sure everything in your credit report is accurate. Write to the credit bureaus to correct any misinformation and, if you aren’t in a hurry, wait until your credit score is corrected before applying for a loan.

If you are in the poor credit loan category, you’ll be considered a high-risk borrower. Most banks and credit unions offer subprime loans to such borrowers and this could be your only recourse if you need a car and don’t have the cash to pay for it outright.

Beware of Predators There are dishonest lenders in the expanding subprime loan market. They often prey on the elderly, minorities, single mothers, unsophisticated consumers and low-income earners. The Center for Responsible Lending (www.responsiblelending.org) gives Seven Signs of Predatory Lending, which include:

• Prepayment Penalties -Car loans and mortgages shouldn’t include prepayment penalties. Usually hidden, these penalties can amount to significant cash that you shouldn’t have to pay when selling your auto or home.
• Mandatory Arbitration -Some lenders put pre-dispute, binding arbitration clauses into their contracts. Arbitration can involve costly fees, or designate an arbitrator that is favorably disposed to the lender.
• High Fees -This caution mostly applies to mortgages. Conventional lenders can add 1% - 4% of the loan amount in points and fees to the loan. Predatory lenders often charge up to twice as much.

Find out more about Subprime Auto Loans at BuyAAuto. You can get a free loan quote while you’re there. It’s the fastest way to see how much you might be able to borrow, and at what rate.

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ABOUT THE AUTHOR

Mike Hamel is the author of several books and online articles about auto financing. His material is featured on sites like BuyAAuto.

Online Auto Loan Can Reduce Stress

Online auto loans have become popular in recent years. Not only do they make it easier to comparison shop for auto financing, it makes visiting the dealership a less stressful experience.

Getting an online auto loan puts you in a better bargaining position when you go to the dealership. With financing already secured, you are in effect a cash customer. You know how much you have to spend and can’t be talked into exceeding your limit by a pushy salesperson. You will also stay out of their finance department, which is a good thing.

Brian Reed, director of Internet lending for Capital One Auto Finance says, “Most consumers have front and center the information about the cars that they want to buy. But then they go into the finance office and all the savings could go out the door.”

Reed notes that many consumers arrive without approved auto financing in hand, either because they are not aware of all the financing options available, or they assume they will qualify for a low rate at the dealer.

Lower Your Stress

An online auto loan can take a lot of stress out of the car buying experience. Here are two other car buying stress-reducers suggested by Money Magazine:

1. Buy your auto online: First go to Edmunds.com and use the True Market Value (TMV) tool to find out what people in your area are paying to drive your desired model off the lot. Aim to pay this price or less. Next, solicit dealer offers online. At Edmunds.com (or Autobytel.com), you enter the model you want, your contact info and your zip code, and within a few hours you will get quotes by e-mail or phone.

2. Hire an auto buyer: If you don’t want to do the work yourself and you are willing to spend an extra $400 to $800, you can reduce the entire car buying experience to a couple of phone calls and one visit to the dealer to pick up the keys.

Online Auto Loan Quote

You can learn more about Online Auto Loans and get a free loan quote by completing the request form at Fast Car Finance.

ABOUT THE AUTHOR

Mike Hamel is the author of several books and online articles about auto financing. His material is featured on sites like Fast Car Finance.

Auto Restoration: A Great Project For An Auto Enthusiast

When considering purchasing a classic car you will need to decide whether you are able to do the auto restoration that it will require to get it looking good. This journey is one that you should definitely consider.

When it comes to having one of those older classic cars, auto restoration is important. When you see those beautiful classic cars running down the road, it may seem like they have just been kept in mint condition but that is not always the case. In most cases, these cars have undergone a serious auto restoration process, in which the car was virtually rebuilt from the ground up to ensure that everything was in working order.

While it may sound like a fun project to get into, auto restoration is a big job and only a good idea for those who are able to perform the necessary repairs themselves and profit from the vehicle in one way or another. Whether you plan on driving the restored vehicle for yourself or selling it for a profit, performing an auto restoration with no immediate motivation usually results in a project that can span several years or more, and more often than not they are not finished.

Auto Restoration is a Great Learning Process

If you want to learn more about classic cars or about building or installing the different components of a vehicle, classic auto restoration is a great place to start. Not only can you work toward having your own masterpiece, but you can work on things at your own pace because your livelihood does not depend on the repair of these things.

Of course, there is a degree of frustration that goes along with auto restoration. This is the fact that it seems like every time something is done, something else goes wrong. Unfortunately the problem is not always the easiest thing to find, especially when it comes to older cars. Electrical systems are outdated and sometimes have to be brought up to date, and there are other things that have to be done as well to keep the integrity of the vehicle in question.

Restoring a Car is a Big Job

If you have a lot going on in your life, beginning the process of restoring an automobile is probably something that you want to rethink. There are so many things that are involved in restoring a car to its original condition, and some people are better suited for the job than others. The cars that need more work are often more affordable to obtain than those that need simple paint jobs or upholstery work, so keep that in mind. If you feel like you have found a good deal on an auto to restore, be prepared for the fact that you may or may not have a bigger job ahead of you than you already expected.

If you are interested in restoring an auto, know that the auto restoration process is big. If this is the first car that you have restored, be prepared for all of the work that you have ahead of you. Try and recruit some friends or family to help you with the job, and pick up some books on the auto restoration process and your car of choice, so that you can learn everything you need to know before you jump in.

ABOUT THE AUTHOR

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on auto restoration and an auto restoration shop at http://www.autorestorationtip.com

Online Auto Insurance Quotes – Consumer’s Guide

This article will you the tips needed when shopping for online auto insurance quotes. There are a few things to keep in mind and a few tools needed to reaserch an online auto insurance company before buying auto insurance online.

When getting online auto insurance quotes you should be keeping in mind a few factors to make sure you obtain auto insurance quotes from the right companies.

Make sure that when obtaining online auto insurance quotes, you keep quality in mind. Many consumers will look for chap online auto insurance quotes and forget about the quality of a company.

Researching an auto insurance companies rating can seem difficult but is fairly simple if you know where to search; however, most consumers will just read an insurance company's website to read about their background. That is definitely not the best way to research a company because any company can write their own content to make it sound good.

There are multiple companies that specialize in issuing reports on auto insurance companies. Each company is assigned a letter grade from "A++" being the best and so forth. In the most part, consumers will be satisfied buying car insurance online from companies with an issued rating of "A" to "B" which is "good" to "great".

Log onto the A M Best site to research auto insurance company ratings at www.AMBEST.com. You do have to create an account to look up a company's rating, which is fairly simple. Once you create your account, click on "rating and analysis" and input the company's name.

Make sure you're inputting an insurance company's name and not the website name or the brokerage's name. The rating grade is given to auto insurance companies only and not to brokerages or anyone in between.

Now you should be more prepared when searching for the right company, you are now set to start obtaining online auto insurance quotes. Obtaining auto insurance online can be beneficial as long as you can make sure to look into the background and history of the website you're getting quotes from. It is crucial to be sure that the auto insurance company you are buying from holds a worthy service record.

Buying auto insurance online gives you the benefits of being able to manage your auto insurance policy from the comfort of your computer. You can also save plenty of time by shopping for online auto insurance quotes instead of shopping for quoes by phone because some companies allow you to compare multiple auto insurance quotes with one simple process.

A great practice is to call the customer service phone numbers of a particular company to find out the waiting hold time. If it takes you an hour to get a hold of a representative, when you're in need of service, you have an idea of the time it takes to be assisted with your auto insurance needs.

Take advantage of obtaining online auto insurance quotes and buying auto insurance online but do keep in mind that you should research the website in order to ensure quality and the customer service you deserve.

ABOUT THE AUTHOR

OnlineAutoInsurance.com provides online auto insurance quotes from multiple auto insurance companies such as Progressive, AIG, GMAC, Infintiy and many more. Buy auto insurance online and receive instant proof.

Three Auto Insurance Secrets

You have heard the usual auto insurance tips, like getting several quotes, and getting home/auto discounts. Why not learn some new tricks?

Want to learn something new about auto insurance? Something that can save you a lot of money or get a claim paid? Forget the usual tips. Check out these secrets.

1. Demand the legal policy minimums if you have no assets. Do you really need a lot of liability coverage if you have no money in the bank? Insurance companies will tell you that you do because you can be sued regardless. It's possible. I can't promise you that you won't be sued and end up paying a chunk of your paycheck to someone for life.

However, honest insurance salesmen admit that people without assets are rarely sued. Lawyers work on a commission in these cases, and won't take a case where there is no money to be collected. In fact, having a bigger liability policy can be an invitation to sue, and it won't protect you from personal liability, because they always sue for more than the policy limit anyhow.

If you have no assets to protect, why buy auto insurance? Because it is a legal requirement. In that case why not just buy the minimum coverage required? But be careful. My own insurance guy lied for years, claiming I had just that, when in fact I was paying for "company-recommended minimums." You might have to push the point, and may even have to sign something saying you understand how risky it is to be "under-insured."

2. Claim diminished value. If you have a collision policy, your insurance company will pay for the repairs after an accident. However, is the financial damage really fixed? Not necessarily. A car that has been in an accident and had the body fixed may look the same, but it won't sell for the same price. Would you pay the same for a car that has been in an accident?

A car that has been in an accident might be worth $2,000 less than a similar un-damaged car. This is called "diminished value," and may be covered by your policy. However, diminished value is often not paid unless you push the point. Get a car dealer to do an estimate of the diminished value if necessary, and present this to the insurance company. You pay for insurance to have your losses covered, and they aren't covered if you aren't paid for this.

3. Lower your premiums by removing kids from the policy. You may have already discovered that you pay a lot for insurance as long as you have driving-age children at home. Even if they are off at school, if their legal residence is your house, you pay more.

However, there is a little-known exception to this rule. If your children are at a college that's more than 100 miles away, you can have them taken off the insurance policy. This can dramatically reduce your premiums. The catch? They are excluded drivers, so you can't let them drive the car when they come home to visit.

These are just a few examples of the auto insurance secrets that insurance companies probably don't want you to know.

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ABOUT THE AUTHOR

Copyright Steve Gillman. You'll find 11 more ways to save money on auto insurance secrets in "Money saving Secrets," a bonus in the "You Aren't Supposed To Know - A Book Of Secrets" package at: http://www.TheSecretInformationSite.com

Who Else Wants Low Cost Auto Insurance?

Those TV commercials featuring happy customers who saved money and got low cost auto insurance aren’t just hype. After many years of rate increases and premiums, the cost of auto insurance is finally starting to come down. But auto insurance companies are still choosy about who can get a break on their insurance costs.

Those TV commercials featuring happy customers who saved money and got low cost auto insurance aren’t just hype. After many years of rate increases and premiums, the cost of auto insurance is finally starting to come down. But auto insurance companies are still choosy about who can get a break on their insurance costs.

It is wise to start with your current auto insurance company to make sure you’re paying as little as possible for your premium.

The next step is to consider other ways to get low cost auto insurance and the discounts you can take advantage of.

Effective Ways To Get Low Cost Auto Insurance* Buy A Safer Vehicle. Premiums for collision and comprehensive coverage depend on accident and theft claims and the costs of repairing your vehicle. The more expensive the vehicle, the more you will pay. Buying a safer car can help you get low cost auto insurance. Simply look into vehicle ratings. Auto manufacturers have 1 to 5 star government crash test ratings. A 5 star crash test rating is the best a vehicle can get.

• Work On Your Credit Score. The better your credit, the higher your insurance score. This score is a slightly modified version of your credit score that insures use to help set rates.
• Combine Auto And Homeowners Insurance. You can shop for both as a package, and you can typically save up to 10 % on each. You can also add an umbrella liability, or a life or health insurance policy and get an even better price break.
• Clean Up Your Driving Record. Three years without a ticket or accident are usually enough to qualify you for low cost auto insurance premiums that are available.
• Drop Collision And Comprehensive On An Older Vehicle. You can reduce your premium by at least 1/3rd. Raising your deductible from $400 to $1,200 on most vehicles can save you as much as 40%. This is a very effective way to get low cost auto insurance.
• Ask For Discounts. Getting a 10% discount on a multicar discount may be automatic, but many other price breaks aren’t always as obvious. If you drive fewer than 7,500 miles a year, you can usually get you a 5% to 10% discount. You can get a lower premium if your vehicle has anti-theft devices and you may pay less if you have safety features such as ABS brakes and automatic seatbelts. Your type of occupation can also get you a low cost auto insurance policy discount up to 10%. Taking a safe drivers class can help you get a discount, but it has to be voluntary and not because of a traffic violation.

You can get low cost auto insurance with a little time and research into the many aspects that effect the cost of your insurance premiums. It's best to get several auto insurance quotes online, so you can easily compare the best rates and plans.

ABOUT THE AUTHOR

Dean Shainin offers free online low cost auto insurance quotes. For more information, articles, news, tools and valuable resources on low cost auto insurance, visit this site: http://auto-insurance.deans-knowledgebase.com

Insurance: Auto Insurance Quotes

Auto insurance is a necessity, whether your state mandates it or not. The risk of not having it is far more expensive than the monthly premium involved.

Auto insurance will help to cover the cost of replacing your vehicle as well as any medical bills associated with the incident. If you live in a state that has mandatory auto insurance laws, you will be fined for driving without insurance. You can also be sued by other parties should you be involved in an accident. Auto insurance is a necessity, whether your state mandates it or not. The risk of not having it is far more expensive than the monthly premium involved. Auto insurance will help to cover the cost of replacing your vehicle as well as any medical bills associated with the incident. If you live in a state that has mandatory auto insurance laws, you will be fined for driving without insurance. You can also be sued by other parties should you be involved in an accident.To get the very best deals on auto insurance, you should ask around for several different quotes from various agencies. You will need to give them your personal information including your name, address, and driver’s license number. They will conduct a check with the Department of Motor Vehicles. Keep in mind that you will need to give them the same information on any other licensed drivers in your home who operate your vehicles.It can be quite daunting, giving the same information over and over again. However, spending time doing so could get you the very best auto insurance rates. Make sure when you are comparing the rates you get that the information is comparable. For example two different agencies may give you an auto insurance quote that are $30 a month different. However, one offers a $500 deductible and the other offers $1,000. The one that is most expensive is a better value because you have to come up with less in the event of an accident. It also comes with medical coverage that is substantially better than the lower auto insurance quote. Take a look at the whole picture rather than just the monthly rate when you are obtaining auto insurance quotes.The internet is a great place to find auto insurance quotes. In most cases you can get an instant quote as soon as you enter your information. Some insurance sites such as Progressive Auto Insurance offer you their rates as well as those of the competition. Keep in mind that they are going to show you quotes for the more expensive competitors rather than the best possible prices out there. Make sure that you find out if the auto insurance company is legitimate though before you give out any personal information.

ABOUT THE AUTHOR

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