Pierre Money Mart Blog

Credit for car loans and bad credit auto loan programs are available nationwide through Americas Car Credit. Auto loan rates are now extremely low for new, as well as, used car loans throughout the United States. As an added plus, you can get approved for your loan safely and confidentially totally online through our 128-bit secure server. If you have been thinking about acquiring a new or used vehicle, we are here to help you with the finance end of things. Nationwide loan programs are available for consumers in all credit circumstances including bad credit and even no credit situations. Auto loans can be obtained by going to our online application for Car Loans.

The national average interest rate for a bank’s new-car loan is 7.45 percent for a 48-month term; used cars are 7.87 percent for a 36-month loan average, according to PierreMoneyMart.com.

A loan’s interest rate depends on many variables, including your personal credit history, lender (bank or credit union), loan term length (36 months, 48 months, 60 months, etc.) and the car itself (new or used). For example, a bank’s 36-month new-car loan has an average interest rate of 7.19 percent; a 60-month loan is 7.64 percent. In 2008, the national average for credit union interest rates was 5.6 percent and 5.9 percent for new and used cars, respectively, for 48-month loans.

Obviously, 11.9 percent is higher than these listed national averages, so you should determine why that is and shop around for a better rate. You can find more information about shopping for the best interest rates in the PierreMoneyMart.com article, “Best Interest Rates: How to Get Them.”

When you approach for any auto loan nowadays, you need to shop around for the right loan with benefits that can help you. Many auto loan financiers provide promotional offers, like loans with low interest rates. Any loan with low interest rate means lower monthly installments and hence lower costs.

Many institutions provide low interest auto loans to extend the loan facility to people from all classes. What stands important here is how to get a low interest deal on an auto loan? You must also check for the financier’s prime lending rate. PLR’s are determined on the basis of many factors. The financier will have a difference in the PLR and the lending rate to the customer. You benefit if the lending rate is closer to the PLR.

Also the choice of a car greatly matters in determining the interest rates. If it’s a used car, the condition of the car is adjudged and the interest rate will tend to be higher, as compared to that of a new car or a car in good condition. Another tip would be to get your loan financed through a bank of financial institution. If your auto dealer is enticing you with a so-called great deal through his dealership, beware of the loopholes there.

Read minutely through the lines of such a deal, before you end up taking one. Your credit profile also plays the protagonist in clinching a low interest auto loan for you. Better your profile, lesser is the interest rate that you can bargain on your loan. There are ample of online loan financiers to check for before you just walk into a car showroom.

Try and figure out who can get you the lowest rate deal. Be sure you know the market rates and the current market conditions even before you let any smart sales guy speak to you for the loan. You can only adjudge if the information he is providing is correct, when you thoroughly know the same. Make the use of Internet for your best. You have plenty of websites out there, which provide information on the auto loan interest rates on a daily basis. You can check out the charts as well for yourself for finding out the best rates.

Also, you can submit your request online to these sites, which in turn pass on this information to lending institutions. Also, they provide you 3 best quotes and you who will decide on the best quote. Remember that you have to shop around extensively before you hard lock on the lowest rate deal. Interest rates you get greatly depend on your knowledge, research and your credit profile.

Many new time auto purchasers (and even experienced auto owners) are unaware of the forgotten/hidden costs of vehicle ownership. In some cases it is cheaper to take taxis than to pay for theses costs alone! We often do not realize that these miscellaneous expenses add up to such a large amount of our budget.

So what are these hidden costs? Car insurance is one of the highest expenses to vehicle ownership. It is important to know PRIOR to purchasing your vehicle what your insurance will cost. Some buyers have purchased the vehicle only to have to sell it at a loss due to the unexpected high insurance costs. If you are a first-time new car buyer, the fact that your insurance will usually cost at least $100.00 more per month will probably be a rude surprise! Or, if you have finally gotten that sweet sports car that you’ve always dreamed of owning, you might be frightened by the price tag for insuring a “hot rod”! Another determining factor in insurance rates is your age, as well as gender, along with the vehicle type that you are purchasing. All of these are factors that will determine if you can afford to insure a particular vehicle with your budget. You might find that selecting a different vehicle can give you a lot more comfort in being able to manage your budget.

One way of saving on your car insurance is by a lower liability insurance coverage (if allowed by your auto finance company) and/or a larger deductible in case of an accident or comprehensive damage claim. These are two areas that might help you afford a vehicle that might be outside your budget otherwise.

Gas and petroleum prices have sky rocketed in the last few years. The cost of commuting to work has almost doubled from just a few short years ago. In order to afford these costs, they must be taken into consideration (and the ever escalating cost) when budgeting for your new auto loan.

Routine maintenance – oil changes, wear and tear on brake pads, tires, belts, etc. must also be allocated into your finances in order to keep your vehicle in good running order. Preventive maintenance, as well as repairing your vehicle when part’s wear out, will allow you to keep your vehicle for a longer period of time–ensuring an easier transition to your next vehicle. Instead of being rudely surprised that you no longer have a running vehicle!

You will also encounter taxes, city, county, state… as well as registration fees that must be paid in order to keep your vehicle on the road. In some areas of the country, you will also have to pay for emissions testing and any repairs necessary to in order to comply with local or state pollution regulations.

Depending on where you live and work, you might also have to allocate parking costs into your budget. In an urban environment, this can be quite expensive and should be researched prior to your vehicle purchase in order to ensure a successful auto finance experience. These costs may be hidden and often forgotten, but their affect on your budget is very apparent!

BEWARE!! That is what I wish to scream at anyone that may be tempted to borrow from shady auto loan sharks to get auto financing for their car. Usually you’ll find these auto credit sharks at small used car lots; however, they also conduct business in the regular auto loan market.

What makes these auto finance companies loan sharks? They feed off of inexperienced buyers or someone that doesn’t read the “fine print” in their auto loan agreements. Their most frequent victims are customers who are desperate to qualify for a auto loan – whether they are a first-time auto buyer without established credit, or simply have a bad credit history.

Interest rates are the maximum legally allowed and frequently contain a “clause” to allow them to repossess the vehicle very quickly, sometimes when a car payment is only one day late! Their goal in most cases is not to assist someone in actually getting a vehicle that is trustworthy and strengthening the consumer’s future credit… instead they feed on outrageous interest rates and getting cars back to sell to another unsuspecting purchaser.

Many of these sharks also “set-up” their auto buyers for ultimate credit failure. They encourage the consumer to purchase a car that is more expensive than the buyer can afford–making repossession or failure to repay the loan a matter of time. You might come out of the dealership saying… “I got such a great deal!” However later you realize that you are not capable of holding on to that dream car…. your car becomes just that–but a nightmare–not a wonderful dream come true!

We offer you an opportunity to establish or to re-establish your credit in a positive manner. Although the auto loans will be at a higher rate than for consumers with an established/good credit history, they will offer you the ability to safely build a positive credit history and lower interest rates in the future.

Our web site also has additional articles on How to Lower your Monthly Payments or Total Vehicle Cost through wise financing; What are the Forgotten and Hidden Costs of Vehicle Ownership (so you can budget for them ahead of signing for your auto loan); Trade-ins–how to make sure you’re getting your current vehicle’s true value and negotiating the best deal with your car dealer; and finally, two formulas for determining what monthly payment you can afford or be approved in obtaining your auto loan. In reading these articles, you will become a better informed consumer, but will be able to avoid many auto loan pitfalls. Why, it may even save you money–if not immediately, in your future auto loans and purchases!

Our goal is to help you find the best auto loan for your needs and help get you on the road or back on the road to financial solvency and freedom. Ultimately it is up to you to trust yourself–not the lender–learn the terms of the deal and then make an informed decision. We feel this is a team effort and would love to assist you in any way possible.