What to Look For In a Used Car Loan

By Michael Russell

Many young people could not afford their first car if it weren't for the availability of used car financing. They just don't have the cash to buy the car outright. Fortunately, obtaining such financing at very reasonable interest rates is not difficult. You just need to do your research and follow these simple steps.

As you're paging through the used car ads you're bound to come across what looks like absolutely fantastic car loan availability from the car dealers themselves. You'll see zero percent offers, low payment offers that seem too good to be true. Of course, they are! These ads are meant to mislead you, make you come in and apply, and end up getting a loan at 10 to 18 percent over the standard rates! Yes, interest-free offers are available, but only if you have perfect credit. Most used car buyers do not fall into this category. In general, used car loan interest rates exceed those of new cars by several percentage points on average.

One way to mitigate this cost is to get your loan through a dedicated finance company rather than through the car dealership or your normal bank. These institutions generally have more liberal lending policies. Any lender, however, will require proof of the value of the car, and a 20 percent down payment. This is normal and should not be regarded as a suspicious request. Both these regulations are designed to give the lender a safety margin, should the loan go into default. If that happens, the lender's only recourse is in the collateral, which is the car. Therefore, they naturally have a vested interest in knowing that you did not pay too much for the car, and that at least 20 percent of its value holds even if the default happens immediately. This is actually an advantage to you, as well. There is someone looking over your shoulder at the transaction, making sure it is a respectable deal and price for the vehicle in its current state and condition.

Before you apply for your financing, run a credit check on yourself. This will help you determine what you should be able to afford and should be offered. Sometimes you may realize before you really get started that a used car loan isn't affordable for you. This could be because of a low credit score, inability to meet the down payment requirements, or insurance concerns. Knowing this going in is important, because online institutions will tempt you with one-day offers. Don't fall for it! Despite their dire warnings of offer expiration, these lenders will be there tomorrow with another fantastic offer for you! Wait until you are comfortable with the amount and the terms. It is not worth the devastation a loan default can play on your credit history to take it now when you're unsure you can repay it as required.

Another caution with car loans and any other financial transactions - keep all your paperwork in good order. If you've obtained the loan online, print out a copy of everything and store it in a safe place. Never sign anything you don't understand completely. Ask questions until you understand. Talk to a third-party professional to get a different point of view. It's your responsibility to protect your own interests. Don't expect the lender to do it for you. This is the kind of thinking that led to the current mortgage crisis in the United States.

One final piece of advice: As soon as you get your used car loan, look into refinancing it, especially if you weren't able to get a zero to three percent interest rate. Refinancing sites will usually have calculators on them so you can calculate your total savings. If you can get a percentage point under your current contract, it's worth it.

Michael RussellYour Independent guide to Interest Rates

Lemon Laws - Protecting Consumer Rights

By Garry L. Neale

Lemon Laws were established in 1978 as a way to ensure consumers have a voice if their car is not repaired properly or if the vehicle they have purchased is in constant need of repairs. Lemon laws protect the rights of the individual to drive a car that is safe and in good working condition.

Before any lemon law existed, consumers were left in the dark if their vehicle didn't work properly or was always breaking down. Basically, you were at the mercy of the manufacturer or auto repair shop and had no real power to fight back. Oftentimes car owners were forced to continually pay for expensive repairs out of their own pocket - not something everyone could easily afford to do. Lemon laws, however, have changed all that.

In addition, constant repairs also meant missing work, or being forced to find other means of transportation while the car was in the shop. But lemon laws do more than just help the consumer. Lemon laws also make life easier for the manufacturer because it allows companies to learn from their mistakes, improve customer service, and have knowledge of any problems customers may be having with their cars. The lemon law can actually make the manufacturer aware of problems beforehand, in order to avoid a lawsuit.

The lemon law allows the consumer to contact the manufacturer if something is wrong with the vehicle so that the situation is remedied before things spiral out of control. The lemon law then allows the company to find out what the problem is and gives them a chance to make corrections. Once the consumer has allowed for such a resolution to occur, if the problem still isn't solved, the lemon law makes it possible to seek legal recourse.

But an automobile lemon law is not necessarily straightforward. You can claim a vehicle only if it fits under certain requirements of the automobile lemon law. For instance, a basic requirement is that the dealer and manufacturer have been given a certain amount of time to make amends. However, to ensure everything is properly documented for the automobile lemon law, make sure you keep copies of all repairs and work orders. With an automobile lemon law, it's always best to keep records. This is the only way to ensure you have the automobile lemon law working for you.

What about used cars? Is there a used car lemon law? The short answer is, "yes," there is a used car lemon law put in place to protect the purchase of a used car, which can be infinitely more complicated. Of course, used cars can run into more problems than new vehicles, which is why the used car lemon law covers different issues. Purchasing from a used car dealer is not necessarily easy for the consumer, which is why the used car lemon law is so important. The used car lemon law protects you when you need it most.

It's important to note that lemon laws can change from state to state. Laws in Texas, California, New York, and Florida may differ. Before you make any claims, do some research on the lemon laws in your state. The requirements for a claim in Texas may vary widely from those in California, New York, or Florida. The best thing you can do is become an informed consumer, and you will be protected.

To learn more about how Lemon Laws protect your rights, check out the Free Consumer Review Web Site.

Buying Used Cars Online - Tips and Tactics

By Hamm K Morgan

The advent of the World Wide Web, or more popularly known as the Internet, has opened up opportunities unheard of before for both buyers and sellers. Never has the word global market meant exactly what it was supposed to be as the Internet literally cracked opened the world boundaries of every state on earth and in the process making everyone a potential buyer and seller.

Starting with the ubiquitous text messaging, the Internet is now growing by leaps and bounds were data uploading and downloading is almost a second nature. Buyers using this platform to sell their items are limited only in the most physical sense of marketing the product and even the stated restriction might not apply, with techno-geeks coming out with torrents of application which even enables very accurate 3-dimension rendering possible.

One sector which has yet to embrace wholly the Internet is the auto industry. At least not in a big way, although car makers all around the world are starting to tap into the huge potentials provided by the virtual reality as a marketing tool. Selling a car is a slightly trickier proposition as opposed to, say, selling books and magazine on line to faceless customers armed with only an internet connection and a credit card account.

There are of course portals which pioneers the way forward, hoping to tap into the global auto enthusiasts market as Amazon.com did for literature fan and lovers did. Among others is eBay Motors from the well-know barter trade online expert who started a site enabling users all over the world to post their items to trade - either for cash or other items.

Trying to achieve the same level of success in marketing of automobiles, however, has not been able tom achieved the same level of success with several constraints, the biggest of which the car buyers need to be up close and personal to the car of their choice. This is true even for the latest model. An online portal may just introduce the new model to the public, but there is simply no other substitute for them but to flock the showroom to see the actual car.

The one sector of the automobile which has found its niche in the new marketing tool, however, is the second hand market. Used cars sale techniques are normally the same all over the world, that is, potential buyers would have to search around for a particular model selling at a particular price which is agreeable to them. This is where the Internet's vast reach has been able to make a breakthrough.

Used car sellers now have the luxury of posting their used autos online instead of waiting for a potential customer to show up at their sites. The American affinity towards certain legendary models such as the Mustang or the Ford GT40, to name just two of the many superb models that had been produced by the number of car makes in the States, means that there is a market worth tapping.

Car enthusiasts looking for a specific model could simply tap into the vast online network to find the exact dream car, right down to the year of make, the engine displacement, how many miles it had gone through and, with some luck, complete with a picture of how it looks like. Ebay motors, for example, incorporate all these specifics in its portal, enabling potential customers to choose from a list of sellers all throughout the United States.

Of course, there is no telling if the auto on sale is actually what is represented on the computer screen, but once customers find what they are looking for, it is the a matter of proceeding to the showroom to view the actual car. Nothing beats the excitement of seeing a car in the flesh; being able to run our fingers through its flank, trying out its seats and imagining how it would drive even prior to turning the keys where a drive test is given, this would be the point of sale, which came courtesy of the internet.

The list of models available in the market could be quite extensive, from American car makers Buick, Chevrolet, Chrysler, Dodge, Ford, GMC and Mercury to Japanese makes Honda, Isuzu, Mazda, Mitsubishi, Nissan, Toyota, or European makes, Volkswagen, BMW, Audi and Mercedes Benz, all of which has been around for quite some time, and offering a vast range of automobiles from vintage to the latest, fuel sipping hybrids.

Hamm Morgan is a leading expert on the subject of used cars sales on the Internet. Get more information regarding used cars for sale.

Online Used Car Auction Sites - Should You Join?

By Robert Powers

There's a lot of talk these days about online used car auction sites. You might ask "Are these online used care auction sites for real?" and "Should I join a car auction site?"

In this article I will answer these questions about online used car auction sites.

Where do these used cars come from and how come they are so cheap?
This was the first big question for me and basically what happens is that people default on their lease payments or car loans of their new cars and because of this, their cars get seized or repossessed by various financial institutions. After the car is seized it gets auctioned off quickly because there are large costs involved in the storing and maintenance of these vehicles.

I was surprised to learn that it's actually common practice for many used car dealerships to go to these auctions and buy several seized cars and then sell them at marked up prices! It's a little known secret that dealers really don't want us to know about.

How do these online used car auction sites gain access to these cars?
These auctions of seized cars are a very protected and secretive source of revenue for many car dealerships and it is never advertised to the general public. Thank God for the internet because these online used car auction sites are now able to gain information and access rights to let you utilize many direct sources to get great deals on used cars.

Can I check the VIN of the car that I like?
Yes! I was glad to see that the majority of the car auction sites do include a CarFax VIN report that you can view before you even place a bid. This definitely allows you to relax knowing that there's nothing fishy going on at these online car auction sites.

What condition are these cars in?
The condition of the cars on these used car auction sites was another thing I was concerned about since you can't fully inspect the vehicles yourself. Well what's great is that the government bodies take extremely good care of their vehicles and their maintenance is top notch. It is actually part of their organisational responsibility to comply with work safety legislation.

The majority of cars sold on these online used car auction sites come with service history information and various stamped log books. Not to mention many of the cars are still under the manufacturer's warranty! The greatest part about these online car auction sites is that most cars are only 2-3 yrs old and the majority have only 40,000 -60,000 kms, or 25,000 - 40,000 miles on them!

Conclusion
I spent about a week researching and collecting as much information about various auction sites before I finally joined one. I'm happy to say that these services are fast, easy to use, and best of all, cheap! I ended up saving a ton of cash getting my dream car, a beautiful 2 year old red Mustang!

Are you interested in using a car auction site to save tons on your next car?

Read this comparison review of the top 3 online used car auction sites, go here: http://CarAuctions.ReviewHelpDesk.com

Used Car Auto Loans

By Cameron Sims

If you are planning on buying a used car or a second hand car, then you will probably need a used car auto loan. It is basically the same as getting an auto loan for a new car with a few stipulations. First and foremost, auto loan lenders are looking for people who have demonstrated that they are worthy of borrowing money. This simply means that they are looking for people with good credit. Banks are concerned with the fact that they are lending money to people who may or may not be able to pay back their car loan. Because of this they often put certain stipulations on used cars to make sure that the auto loan they offer you is going to make enough interest on the money that you are borrowing.

They often request that you take shorter car loans. They are usually not willing to give an auto loan to someone buying a $3000.00 car for 5 years. They feel more secure in giving an auto loan to someone who is buying a $3000.00 car for only 2 years. For people with bad credit, this is most often the case. Any lenders offering an car loan would much rather prefer having you buy a more expensive car for a longer period of time. That is why you might find yourself being declined for a small loan. That doesn’t mean that you need to get a used car loan for more money, you just have to investigate alternative lenders who are willing to give you a smaller auto loan.

Car loans with no down payment are usually directly given for cars that have higher mileage or are older models. Hence, that is why they don’t like to give out the auto loans for longer periods of time, because the car just simply isn’t going to last as long. It is really to your benefit to do a shorter loan because although you may love your used car, it rarely is worth much at the end of the no down payment car loan.

Cameron Sims is a financial advisor and specializes in the fields of a no down payment car loan.

The Five Mistakes Used Car Buyers Make

By Bob Ford

Something happens to many people when they get serious about buying a particular used car. The excitement of a new car - well, “new” to them, the prospect of getting a really good deal, and the buying process itself tends to clog the synapses and cause people to neglect, forget, ignore - take your pick - the basic precautions that one should take before buying a used car.

What follows are the five mistakes far too many buyers make when buying a used . By knowing what they are, you can avoid making them yourself.

#1 Buyers don’t get the facts on a specific used car before they buy. Before you get serious about any one car, it's important to get the facts concerning:

Reliability and Repair Record

Consumer Reports offers a section in their Buying Guide entitled "Frequency of Repair Records. In it you'll get an excellent picture of the repair records of the vast majority of recent model used cars.

If the Car Been Subjected to a Recall

Consumer Guide - Auto Series, publishes a Used Car Rating Guide in which they offer a general assessment of individual used cars, technical data, price ranges and a detailed description of the recall history.

Owner Satisfaction with the Car

In addition to speaking directly with friends who have owned the car you're considering, you might also want to turn again to Consumer Reports. They offer charts showing how their subscribers rated their satisfaction with recent model cars.

#2. Buyers fall in fall in love with the car in front of seller.

Far too many consumers fall in love with a particular car and let their desire to own that car cloud their better judgment. Once a car seller - especially a professional - knows a person is hooked on a car, that person has all but abandoned the opportunity to negotiate a good deal.

#3 Buyers fail to give the car a “full” inspection.

Most used car buyers don't take the time or make the effort to thoroughly check out the car. This includes having it inspected by a third party, independent mechanic. Neglecting this step often results in costly repair bills or worse, owning a car that is not worth fixing. As part of the inspection process, it pays to order a CARFAX report on the car you’re considering.

#4 Buyers don’t take the time to understand their Used Car Warranties

If a franchise dealer offers a warranty and the warranty actually covers a substantial number of items, your risk is usually moderate to low. You will want to understand the warranty in terms of what's covered and for how long. With few exceptions, you don't want to trust the current condition of the car to the future protection of the sellers’s warranty unless the car is still under the original factory warranty.

#5. Buyers sign the check before checking everything. Before you sit down to complete the paperwork, take a walk around the car. Check to see if there any new dents or dings. Open the hood and check to be sure that there are no oil leaks that might have developed. If repairs or maintenance were to be performed, ask for proof that it was done as agreed. Then take the car out for one last test drive

Before you Sign:

1. Read everything . . . twice!
2. Be sure that anything you sign has all the blanks filled in.
3. Be sure that the wording on any agreement, bill of sale and/or warranty is specific, clear and exact in its meaning.
4. An Odometer Mileage Statement must be provided stating that, to the best of the seller's knowledge, the odometer has not been tampered with. The odometer statement can be made part of the bill of sale. [In some states this is part of the title.]
5.Be sure you fully understand and agree with the warranty - if it has one.
6. Bill of sale should include the following items:

● Date of sale
● Year, make and model description
● Tag number and state of registration
● Vehicle Identification Number (Check it against the VIN # on the title.)
● Odometer reading
● Amount paid for car and type of payment
● Conditions of the sale, if any
● Sellers and buyer's names, addresses and phone numbers

One more thing:
Buyers make a big mistake when they’re not prepared to “walk away” from the deal. If it doesn't feel right, if something seems amiss, if your "gut" seems to be telling you that your prospective purchase is a mistake . . . walk away. You can always find another car. Your money is harder to replace.

For over 30 years Bob Ford has worked in and around, and written for and about the automotive industry. His extensive exposure ranges from the executive suite to the factory floor to the dealership. He’s had virtually totally free access to closed door conversations, crisis management meetings and to some pretty odd and even questionable behavior.

Ford is author of "What Car Dealers Won’t Tell You." an “insider’s guide” to buying a new or used car. It details what to look for, what to watch out for and provides negotiation strategies and inspection guidelines designed to help buyers avoid scams and buyer pitfalls.

Media/Lecture Credits
Ford has appeared on television as a subject expert on The Today Show, Fox News, CNN, many local market cable shows and dozens of call-in radio programs. He is invited by civic organizaitons and clubs as a guest speaker. He also is the automotive editor at-large for Young Money Magazine.

Article Source: http://EzineArticles.com/?expert=Bob_Ford

Make The Most Of Used Car Search Engines

By Louis Rix

It has never been easier to search for a used car with the advancements in technology and with the introduction of the home PC and the World Wide Web finding the perfect used car for you is as easy as just a few clicks of your mouse. From the comfort of your own home you can go to a specialist website and browse through hundreds of car which interest you in the shortest time possible. While used car search engines aren’t difficult to use you have to be aware of what they offer in order to be able to take full advantage of them.

Specialist web sites offer used car search engines which are similar to any normal search engine, but these are specific to used cars. Perhaps the best way to start your used car search is by limiting the cars down to the price that you can afford to pay for your used car. Once you have found a selection that you know you can afford to buy then these can be looked through and then reduced by the make, model, and colour etc. until you have the car of your dreams.

All used car search engines will show you the cars by way of photos which gives you an excellent indication of what the car looks like before you make the decision about whether to go and give it a test drive. You should take into account the distance that the car is from you, of course, in your search and if need be this can included in your search to keep the results in just your local area or area within a set amount of miles.

You should follow the advice and tips that all specialist sites give to make the most of used car search engines to ensure that you get the best out of them when it comes to buying your dream used car.

Louis Rix is a Director of NetCars, one of the UK's leading motoring websites. First established in January 2000, it provides a used car search. NetCars also provide finance, loans and insurance.