Secured Business Loans--Suitable For Both New And Existing Businesses
By [http://ezinearticles.com/?expert=Amanda_Pane] Amanda Pane
Secured business loans are easy to borrow, as there is the security of the collateral for the lender. The lender, in the event of the borrower failing to repay the loan amount back, can seize and sell off the collateral (usually the house of the entrepreneur or the assets of the business) to recover his money. This security also allows the lender to set easy terms and conditions for the loan. He allows lower interest rates to the borrower and fixes a long repayment term for the loan.
The use of the secured business loans depends on the type of business. If the loan is meant for starting a business, the loan amount can be used for:
· Buying raw materials,
· Procuring a piece of land for setting up a factory or manufacturing plant,
· Buying machinery, etc
If, however, the loan is meant for an existing business, it can be used for:
· Buying additional machinery and raw materials required,
· Paying the salaries of the staff,
· Expanding the business in new places,
· Paying off the debts which the business might have taken before, etc
Since [http://www.chance4finance.co.uk/secured-business-loans.html] secured business loans are long-term loans, it is advisable that you make a plan for your business before you go to the lender. If you are going to start a new business, your plan should include points like type of business you are going to start, investment required, your objectives, etc. in case you already have an existing business, your plan should incorporate points like the type of business, loan amount required, all about profits and losses, and the direction you want to give your business.
A plan will help the lender understand your needs better and may help him decide whether to sanction the loan or not.
Since there are hundreds of lenders in UK offering secured business loans, it is also necessary that you compare their annual percentage rates (APR) before choosing your deal.
About The Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Chance 4 Finance as a finance specialist.
For more information please visit: [http://www.chance4finance.co.uk] http://www.chance4finance.co.uk
Article Source: [http://ezinearticles.com/?expert=Amanda_Pane ] http://EzineArticles.com/?expert=Amanda_Pane
[http://ezinearticles.com/?Secured-Business-Loans--Suitable-For-Both-New-And-Existing-Businesses&id=313532 ] http://EzineArticles.com/?Secured-Business-Loans--Suitable-For-Both-New-And-Existing-Businesses&id=313532
Tuesday, May 15, 2007
Monday, May 14, 2007
Auto Loan Factory
Getting a Car Loan in New York
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
Saturday, May 12, 2007
Auto Loan Factory
Unsecured Business Loans A Safe Option To Pursue
By Peter Taylor
Everyone tries to earn in one-way or the other, some try professions some are free lancers and the rest go in to business. Business is the only way where we need to put in money from our side and that is crucial. After all money is the only thing that makes things happen in the business world one-way or the other.
You can use the unsecured business loans for following purposes.
· For buying factory land or business premises.
· For buying raw materials or to cater to other requirements
· For improving the office premises i.e. total renovation
· For purchasing of any other machine or tools.
We may have the shrewdest of brains but without money we cannot use that to its best. That is where we can take the help of unsecured business loans.
Unsecured business loans as the name suggests are loans specifically designed to meet the needs of the people looking to enter the business world.
Unsecured business loans now days can be availed at the proverbial snap of the fingers. All that is needed on the part of the borrower is that he should find himself a lender and after that should submit his details to him and just wait for the decision of the lender.
The reason why unsecured business loans are the best are as they are unsecured they are accessible by everybody not only homeowners or asset holders. Unsecured business loans are therefore risk free as well. The loan amount that can be approved will be in accordance with your needs. With unsecured business loans you can usually choose the repayment plan as well.
Although the interest rates may be a little higher than what you might be offered when you go for secured business loans. It is still worth going for at the worst of times.
Unsecured loans are available to people with bad credit history as well.
People like:
CCJ’s
Arrears
Defaults
IVA’s or
People who have previously filled for bankruptcy
They also need to follow the same pattern to avail the loans. Same features will be offered to them to those people as well. In addition they can improve their defamed credit reputation by making regular repayments.
Business cannot flourish until all the factors involved in it are up to the mark. Money is an important ingredient involved in the business. So we must make sure that it is in good supply and to make sure that happens the best alternative are the unsecured business loans which should be taken without any hesitation to make sure that we succeed in our endeavor.
Peter Taylor is a senior financial analyst at easyfinance4u with acumen for finance and insurance. In recent years he has taken up to provide independent financial advice through his informative articles. To find Secured loans, Unsecured loans, secured debt consolidation loans, Unsecured business loans in uk that best suits your need visit http://www.easyfinance4u.com.
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Unsecured-Business-Loans-A-Safe-Option-To-Pursue&id=185061
By Peter Taylor
Everyone tries to earn in one-way or the other, some try professions some are free lancers and the rest go in to business. Business is the only way where we need to put in money from our side and that is crucial. After all money is the only thing that makes things happen in the business world one-way or the other.
You can use the unsecured business loans for following purposes.
· For buying factory land or business premises.
· For buying raw materials or to cater to other requirements
· For improving the office premises i.e. total renovation
· For purchasing of any other machine or tools.
We may have the shrewdest of brains but without money we cannot use that to its best. That is where we can take the help of unsecured business loans.
Unsecured business loans as the name suggests are loans specifically designed to meet the needs of the people looking to enter the business world.
Unsecured business loans now days can be availed at the proverbial snap of the fingers. All that is needed on the part of the borrower is that he should find himself a lender and after that should submit his details to him and just wait for the decision of the lender.
The reason why unsecured business loans are the best are as they are unsecured they are accessible by everybody not only homeowners or asset holders. Unsecured business loans are therefore risk free as well. The loan amount that can be approved will be in accordance with your needs. With unsecured business loans you can usually choose the repayment plan as well.
Although the interest rates may be a little higher than what you might be offered when you go for secured business loans. It is still worth going for at the worst of times.
Unsecured loans are available to people with bad credit history as well.
People like:
CCJ’s
Arrears
Defaults
IVA’s or
People who have previously filled for bankruptcy
They also need to follow the same pattern to avail the loans. Same features will be offered to them to those people as well. In addition they can improve their defamed credit reputation by making regular repayments.
Business cannot flourish until all the factors involved in it are up to the mark. Money is an important ingredient involved in the business. So we must make sure that it is in good supply and to make sure that happens the best alternative are the unsecured business loans which should be taken without any hesitation to make sure that we succeed in our endeavor.
Peter Taylor is a senior financial analyst at easyfinance4u with acumen for finance and insurance. In recent years he has taken up to provide independent financial advice through his informative articles. To find Secured loans, Unsecured loans, secured debt consolidation loans, Unsecured business loans in uk that best suits your need visit http://www.easyfinance4u.com.
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Unsecured-Business-Loans-A-Safe-Option-To-Pursue&id=185061
Friday, May 11, 2007
Auto Loan Factory
Secured Business Loans - Way to Low Cost Finance for Businesses
By Andrew Baker
Establishing a business requires huge amount as businesses demand expenditure on various fronts. It is not easier for every business person to arrange required finance from own source and therefore secured business loans become inevitable. Lower interest rate and other easier terms-conditions have made secured business loans popular options for business people.
Secured business loans are offered to business people depending on the type of their business. Business persons can utilize secured business loan for various purposes. One who intends to start a new business, secured business loans can serve in buying raw materials, machinery and even for procuring a piece of land for setting a manufacturing plant or a factory. In case secured business loans are required for existing business, the loan can be utilized for buying additional raw materials and machinery. The loan also can be used in paying staff salary. Previous debts are also paid on taking the loan.
Secured business loans are provided on taking any of the business person’s property as collateral. The property may be residential or commercial. With collateral in place, the lender can offer any amount of loan. The borrowings depend on equity in collateral. Higher equity in home or any property enables in taking greater secured business loans. Because the loan is fully secured, lenders can easily offer secured business loans at lower interest rate.
Lenders provide secured business loans for larger repayment duration.
Secured business loans can be comfortably paid back in 5 to 30 years. This means the business person has ample time for establishing business. All he has to ensure is that installments of secured business loans are paid regularly. Since the loan is usually spent in various works of business, there may not be much amount left with the business person. So for paying off installments the business person must have extra source of income or the business must start generating income immediately. Lenders also would like to ensure that the borrower has enough income at hand. Secured business loans are given without many enquiries to bad credit business persons. This is because in case of payment default, still the loan can be recovered on selling the borrower’s property.
Prior to applying a lender, compare different secured business loans providers for individual interest rates and terms-conditions. Prefer applying to online lenders for fast approval of the loan.
Secured business loans are cheaper source of much required finance for business persons. Make sure that the loan installments are paid back regularly for avoiding debts.
Andrew Baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK. He works for the LoansFiesta for any type of loans as Secured business loans, Unsecured debt consolidation loans, secured personal loans, secured homeowner loan in uk please visit http://www.loansfiesta.co.uk
Article Source: http://EzineArticles.com/?expert=Andrew_Baker
http://EzineArticles.com/?Secured-Business-Loans---Way-to-Low-Cost-Finance-for-Businesses&id=335650
Secured business loans are cheaper financial source for establishing a new or existing business. Lower interest rate, greater borrowings and larger convenient repayment duration are some of the attractions secured business loans the article mentions.
By Andrew Baker
Establishing a business requires huge amount as businesses demand expenditure on various fronts. It is not easier for every business person to arrange required finance from own source and therefore secured business loans become inevitable. Lower interest rate and other easier terms-conditions have made secured business loans popular options for business people.
Secured business loans are offered to business people depending on the type of their business. Business persons can utilize secured business loan for various purposes. One who intends to start a new business, secured business loans can serve in buying raw materials, machinery and even for procuring a piece of land for setting a manufacturing plant or a factory. In case secured business loans are required for existing business, the loan can be utilized for buying additional raw materials and machinery. The loan also can be used in paying staff salary. Previous debts are also paid on taking the loan.
Secured business loans are provided on taking any of the business person’s property as collateral. The property may be residential or commercial. With collateral in place, the lender can offer any amount of loan. The borrowings depend on equity in collateral. Higher equity in home or any property enables in taking greater secured business loans. Because the loan is fully secured, lenders can easily offer secured business loans at lower interest rate.
Lenders provide secured business loans for larger repayment duration.
Secured business loans can be comfortably paid back in 5 to 30 years. This means the business person has ample time for establishing business. All he has to ensure is that installments of secured business loans are paid regularly. Since the loan is usually spent in various works of business, there may not be much amount left with the business person. So for paying off installments the business person must have extra source of income or the business must start generating income immediately. Lenders also would like to ensure that the borrower has enough income at hand. Secured business loans are given without many enquiries to bad credit business persons. This is because in case of payment default, still the loan can be recovered on selling the borrower’s property.
Prior to applying a lender, compare different secured business loans providers for individual interest rates and terms-conditions. Prefer applying to online lenders for fast approval of the loan.
Secured business loans are cheaper source of much required finance for business persons. Make sure that the loan installments are paid back regularly for avoiding debts.
Andrew Baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK. He works for the LoansFiesta for any type of loans as Secured business loans, Unsecured debt consolidation loans, secured personal loans, secured homeowner loan in uk please visit http://www.loansfiesta.co.uk
Article Source: http://EzineArticles.com/?expert=Andrew_Baker
http://EzineArticles.com/?Secured-Business-Loans---Way-to-Low-Cost-Finance-for-Businesses&id=335650
Secured business loans are cheaper financial source for establishing a new or existing business. Lower interest rate, greater borrowings and larger convenient repayment duration are some of the attractions secured business loans the article mentions.
Thursday, May 10, 2007
Auto Loan Factory
Run Your Business Hassle Free with Bad Credit Unsecured Business Loans
By Peter Taylor
When a borrower fails to pay his previous loans he suffers from Bad credit history. People with bad credit history usually find it difficult to get loans of any kind in future. Lenders normally don’t provide loan to borrower who has got bad credit, because lenders are suspicious of getting their return, as borrower has not been managing his finance properly in past. And people aspiring to run business or already in any venture, who have bad credit find it cumbersome to get any loan to give a better move to his business.
To deal with such arduous financial difficulties of borrower, bad credit unsecured business loans are of great use. It allows those borrowers who want to run a business, and have bad credit. It also enables borrower to take loan even if he has nothing to offer as collateral to lender against his loan amount. The reason of this loan being best is that it is easily accessible by everybody, not only by homeowners or person with assets, as there is no need to offer collateral.
Absence of collateral in bad credit unsecured business loans allows borrower to get the loan faster, as there is no need of property evaluation. It also saves problem of documentation. Plus, in some cases, you might get the loan amount according to your need, and can choose repayment plan as well.
You can easily find several borrowers willing to lend you bad credit unsecured loans at agreeable terms and conditions. Many financial websites will give you various information on locating a good lender. Through online, you can compare different bad credit business loans available in market, and chose the best one suited to your need.
On the one hand, bad credit unsecured business loans make borrower free of risk of losing his property, on the another, borrowers are charged higher interest rate, as they also have bad credit, besides offering no collateral. But this loan help borrower in improving his credit score, as, if he repays back the loan on time, it automatically will improve his credit score. Bad credit unsecured business loan can be used for buying factory land or business premises, buying raw materials or to cater to other requirements, improving the office premises, purchasing of any other machine or tools, etc.
Running a business contains several risks in itself. You might be in dire need to renovate and standardize the level of your business in order to meet the competition. In such cases, bad credit unsecured business loans don’t only ignore your credit score and collateral, but also it also relieves you of financial crisis in fulfilling all your business goals.
Peter Taylor is a senior financial analyst at BadCreditUnsecuredLoan with an acumen for finance and insurance.To find bad credit unsecured business loans, unsecured personal loan,adverse credit personal loan, new car loan, home improvement loan that best suits your need visit http://www.bad-credit-unsecured-loan.net
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Run-Your-Business-Hassle-Free-with-Bad-Credit-Unsecured-Business-Loans&id=269917
By Peter Taylor
When a borrower fails to pay his previous loans he suffers from Bad credit history. People with bad credit history usually find it difficult to get loans of any kind in future. Lenders normally don’t provide loan to borrower who has got bad credit, because lenders are suspicious of getting their return, as borrower has not been managing his finance properly in past. And people aspiring to run business or already in any venture, who have bad credit find it cumbersome to get any loan to give a better move to his business.
To deal with such arduous financial difficulties of borrower, bad credit unsecured business loans are of great use. It allows those borrowers who want to run a business, and have bad credit. It also enables borrower to take loan even if he has nothing to offer as collateral to lender against his loan amount. The reason of this loan being best is that it is easily accessible by everybody, not only by homeowners or person with assets, as there is no need to offer collateral.
Absence of collateral in bad credit unsecured business loans allows borrower to get the loan faster, as there is no need of property evaluation. It also saves problem of documentation. Plus, in some cases, you might get the loan amount according to your need, and can choose repayment plan as well.
You can easily find several borrowers willing to lend you bad credit unsecured loans at agreeable terms and conditions. Many financial websites will give you various information on locating a good lender. Through online, you can compare different bad credit business loans available in market, and chose the best one suited to your need.
On the one hand, bad credit unsecured business loans make borrower free of risk of losing his property, on the another, borrowers are charged higher interest rate, as they also have bad credit, besides offering no collateral. But this loan help borrower in improving his credit score, as, if he repays back the loan on time, it automatically will improve his credit score. Bad credit unsecured business loan can be used for buying factory land or business premises, buying raw materials or to cater to other requirements, improving the office premises, purchasing of any other machine or tools, etc.
Running a business contains several risks in itself. You might be in dire need to renovate and standardize the level of your business in order to meet the competition. In such cases, bad credit unsecured business loans don’t only ignore your credit score and collateral, but also it also relieves you of financial crisis in fulfilling all your business goals.
Peter Taylor is a senior financial analyst at BadCreditUnsecuredLoan with an acumen for finance and insurance.To find bad credit unsecured business loans, unsecured personal loan,adverse credit personal loan, new car loan, home improvement loan that best suits your need visit http://www.bad-credit-unsecured-loan.net
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Run-Your-Business-Hassle-Free-with-Bad-Credit-Unsecured-Business-Loans&id=269917
Wednesday, May 9, 2007
Auto Loan Factory
Beware of Used Car Dealers that Sell Accident Damaged Cars by Nicholas Jensen
Spanos Imports of Daytona has learned that it is far more profitable to fraudulently sell ACCIDENT DAMAGED imported cars than it is to sell them as they are represented. Furthermore, they have done it on more than one occasion.
About a month ago, I purchased a 2000 SAAB 9-3 from Spanos Imports. The car was sold as a "great" used car in "excellent" condition - still "under the factory warranty". However, this SAAB has suffered a front end collision. Furthermore, it was not properly or completely repaired. Worse yet, the accident was intentionally covered up with a new bumper cover and body trim. If that isn't bad enough, like many other auto accidents, this one did not show up on Carfax.
I found the accident damage when I brought the car to SAAB service for warranty repair on the air conditioning unit. The front end accident had caused the vehicle's horn to puncture the air conditioning condenser coil.
Later, SAAB service uncovered that the tubular steel bumper was cracked in three places and the body panels on the car were out of alignment. Of course, none of this $3,000+ damage is covered under the factory warranty the car was sold with. Factory warranties do not cover damage due to accident or misuse.
Nimnicht SAAB of Jacksonville told me that a SAAB authorized dealer would not have even sold me a vehicle in this condition due to safety reasons alone. Spanos has refused to provide any compensation or repairs on the vehicle. They have also refused to take the vehicle back. The resale value on my vehicle is only a fraction of what I have just paid - $13,000 (on a loan with interest). Spanos Imports of Daytona is a licensed dealership in the state of Florida.
I have since contacted individuals from across the nation that have purchased vehicles from Spanos Imports. Although Spanos is a small "boutique" dealership, they have still managed to burn more than one with this terrible way of doing business. They sell cars on Ebay and through other venues. With this kind of concealed damage, some may not know of the problems until months after they have purchased. Such accident damage poses a safety hazard, extreme loss on vehicle value, and expensive repair bills. These cars are being sold in "like new" condition with balances on the factory warranty. It is complete fraud.
Nicholas Jacksonville, Florida U.S.A.
Check out the Spanos Ripoff Report for more details on this problem. Spanos Ripoff Report
About the Author
Consumer.
Spanos Imports of Daytona has learned that it is far more profitable to fraudulently sell ACCIDENT DAMAGED imported cars than it is to sell them as they are represented. Furthermore, they have done it on more than one occasion.
About a month ago, I purchased a 2000 SAAB 9-3 from Spanos Imports. The car was sold as a "great" used car in "excellent" condition - still "under the factory warranty". However, this SAAB has suffered a front end collision. Furthermore, it was not properly or completely repaired. Worse yet, the accident was intentionally covered up with a new bumper cover and body trim. If that isn't bad enough, like many other auto accidents, this one did not show up on Carfax.
I found the accident damage when I brought the car to SAAB service for warranty repair on the air conditioning unit. The front end accident had caused the vehicle's horn to puncture the air conditioning condenser coil.
Later, SAAB service uncovered that the tubular steel bumper was cracked in three places and the body panels on the car were out of alignment. Of course, none of this $3,000+ damage is covered under the factory warranty the car was sold with. Factory warranties do not cover damage due to accident or misuse.
Nimnicht SAAB of Jacksonville told me that a SAAB authorized dealer would not have even sold me a vehicle in this condition due to safety reasons alone. Spanos has refused to provide any compensation or repairs on the vehicle. They have also refused to take the vehicle back. The resale value on my vehicle is only a fraction of what I have just paid - $13,000 (on a loan with interest). Spanos Imports of Daytona is a licensed dealership in the state of Florida.
I have since contacted individuals from across the nation that have purchased vehicles from Spanos Imports. Although Spanos is a small "boutique" dealership, they have still managed to burn more than one with this terrible way of doing business. They sell cars on Ebay and through other venues. With this kind of concealed damage, some may not know of the problems until months after they have purchased. Such accident damage poses a safety hazard, extreme loss on vehicle value, and expensive repair bills. These cars are being sold in "like new" condition with balances on the factory warranty. It is complete fraud.
Nicholas Jacksonville, Florida U.S.A.
Check out the Spanos Ripoff Report for more details on this problem. Spanos Ripoff Report
About the Author
Consumer.
Tuesday, May 8, 2007
Auto Loan Factory
The Three Biggest Questions When Buying a Car by Mike Hamel
The biggest question in the car buying process is whether to buy new or used. The second biggest question is what make and model to purchase. The third most important question is where to get your financing.
#1 New or Used
The average new car costs more than double what the average used car does. (The Kelley Blue Book pegs the average new car price in 2005 at $26,100 and the average used car price at $13,000). It's not surprising, then, that used cars outsell new cars three-to-one.
New car loan rates are about the same as used car loan rates. The major difference between the two is the length of the loan. Most used car loans are for no more than 36 months whereas new car loans can be 60 or even 72 months long.
Remember to take depreciation into account. Depreciation is the difference between the Manufacturer's Suggested Retail Price when you bought the vehicle and what it's worth now. Some new cars lose as much as one-third of their value within a year. On most vehicles, depreciation settles down to about seven-to-ten percent per year after the first three years.
Which brings us to . . .
#2 Make and Model
One way to slow depreciation is to buy a make and model with a prestigious nameplate. Models that depreciate faster than most include: Jeep Grand Cherokee, Ford Explorer, Ford Taurus and Lincoln Continental. Cars that hold their resale value longer include the more expensive makes like Lexus, Mercedes-Benz and BMW.
To learn more about which makes and models offer the best value in today's market, you can research several auto review sites online. You can also use the Internet to check everything from the performance ratings to the safety records of the vehicles you're interested in.
Be sure to test drive any vehicle you are considering under varied road conditions. If the vehicle is used, ask to see all maintenance records and check its history on CarFax. And don't forget to have your mechanic give it a thorough inspection. If you are buying new, try to pay as close to the factory invoice price as possible. You can look up factory invoice pricing online.
#3 Car Financing
Many experts recommend getting your financing before you start car shopping. This puts you in a better bargaining position because the dealer knows money won't be an issue. (They also won't have the chance to run you through their finance department, which is a good thing for you!)
Of the 60 million new and used cars sold annually in the U.S., about 27.5 million are financed by subprime loans to buyers with less than perfect credit. If you have bad credit--a FICO score of 620 or lower--you will need one of these loans.
You will not qualify for the new car offers advertised on TV, like the "0 Down," "O Interest" or "Low APR" deals. However, you can still get a good deal on a bad credit car loan from Internet lenders like Auto Loans In Seconds. Their free online application process lets you know exactly how much you can borrow, and at what rate.
"Consumers should shop around for financing with the same vigor that they shop around for a car," says Jack Gillis, public affairs director for the Consumer Federation of America. "One or two percent can erode all the money you negotiate in a good price."
About the Author
None
The biggest question in the car buying process is whether to buy new or used. The second biggest question is what make and model to purchase. The third most important question is where to get your financing.
#1 New or Used
The average new car costs more than double what the average used car does. (The Kelley Blue Book pegs the average new car price in 2005 at $26,100 and the average used car price at $13,000). It's not surprising, then, that used cars outsell new cars three-to-one.
New car loan rates are about the same as used car loan rates. The major difference between the two is the length of the loan. Most used car loans are for no more than 36 months whereas new car loans can be 60 or even 72 months long.
Remember to take depreciation into account. Depreciation is the difference between the Manufacturer's Suggested Retail Price when you bought the vehicle and what it's worth now. Some new cars lose as much as one-third of their value within a year. On most vehicles, depreciation settles down to about seven-to-ten percent per year after the first three years.
Which brings us to . . .
#2 Make and Model
One way to slow depreciation is to buy a make and model with a prestigious nameplate. Models that depreciate faster than most include: Jeep Grand Cherokee, Ford Explorer, Ford Taurus and Lincoln Continental. Cars that hold their resale value longer include the more expensive makes like Lexus, Mercedes-Benz and BMW.
To learn more about which makes and models offer the best value in today's market, you can research several auto review sites online. You can also use the Internet to check everything from the performance ratings to the safety records of the vehicles you're interested in.
Be sure to test drive any vehicle you are considering under varied road conditions. If the vehicle is used, ask to see all maintenance records and check its history on CarFax. And don't forget to have your mechanic give it a thorough inspection. If you are buying new, try to pay as close to the factory invoice price as possible. You can look up factory invoice pricing online.
#3 Car Financing
Many experts recommend getting your financing before you start car shopping. This puts you in a better bargaining position because the dealer knows money won't be an issue. (They also won't have the chance to run you through their finance department, which is a good thing for you!)
Of the 60 million new and used cars sold annually in the U.S., about 27.5 million are financed by subprime loans to buyers with less than perfect credit. If you have bad credit--a FICO score of 620 or lower--you will need one of these loans.
You will not qualify for the new car offers advertised on TV, like the "0 Down," "O Interest" or "Low APR" deals. However, you can still get a good deal on a bad credit car loan from Internet lenders like Auto Loans In Seconds. Their free online application process lets you know exactly how much you can borrow, and at what rate.
"Consumers should shop around for financing with the same vigor that they shop around for a car," says Jack Gillis, public affairs director for the Consumer Federation of America. "One or two percent can erode all the money you negotiate in a good price."
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