Can anyone tell me what participation split means with a car dealership and a finance company?

August 30th, 2010 by Bank Loan | 2 Comments | Filed in News
Finance
by historic.brussels

Question by xsvideo: Can anyone tell me what participation split means with a car dealership and a finance company?
I have a high interest rate loan on a truck, I am paying the payments on time and I am thinking about getting something else with a better interest rate. But I found out that car dealerships and finance companies have participation splits when they sell a car and complete the financing. I wanted to know what that means and am I paying for it. My rate is 24.9% I know that is high but my wife and I had not choice due to a loss in job. We are ok with it but really need to make a change now. Any advice would help. We have stable income and credit scores between 540 and 587, all of our credit cards and car payments and other bills have been on time for the past 12 months. We have some old judgments that maybe total $ 3500.00; one is a medical bill and the other a membership we never used at a discount supply place. Thank you for your answers in advance.

Best answer:

Answer by SKYDOGSLIM
participation split is when car dealers mark up the rate from the financial institution and keep the profit. it is one of the ways for them to earn money by providing financing for the customer. It has no bearing on whether you get a loan or not. Based upon what you are saying you should have no trouble qualifying for a better rate this time. Good luck.

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Does applying for an auto loan hurt my credit score?

August 29th, 2010 by Bank Loan | 6 Comments | Filed in Loans

Question by Tori: Does applying for an auto loan hurt my credit score?
I was wondering because I have a credit card I have been working on improving my credit score so I can get an auto loan. I have heard that applying for an auto loan will hurt my credit score if I get turned down?

Best answer:

Answer by Judy
1 or 2 points.
If you need a car – go ahead and apply for your loan.
Once you get the loan your score will go down slightly due to “New Credit”.

Go to a credit union or small regional bank for your loan.
They will give you the very best rates- without the 0 offers these nasty car dealers will cheat you with.

Do not tell a car dealer ANYTHING about your finances until you settle on a price.
It is not his business how much you were approved for or how much you want to pay monthly.
Tell him – that it is none of his business.
You will be focused on a price of a car and getting a good deal on that car.
/

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4 Tips to Make the Best of Your Auto Loan

August 29th, 2010 by Bank Loan | No Comments | Filed in Loans
auto loan
by Karl Gunnarsson

4 Tips to Make the Best of Your Auto Loan

Taking an auto loan to buy a new car is accepted practice. It allows you to get the required amount of money to make a good purchase, and then pay off the debt later in installments. However, auto loans also carry risks that you need to guard against.

If you intend going in for an auto loan, keep these tips in mind:

1. Research your options. There are various auto loan options available in the market. Each will have plus points and drawbacks. More importantly, some will be better suited to your specific requirements than the others.

To make the right choice, you will first need to research your options well. Read the terms and conditions, including the fine print, and compare the pros and cons, to enable you to make an informed decision.

2. Evaluate your credit history. Your credit history will dictate your auto loan options. A good credit history will mean that you will easily get loans with reasonable interest rates. However, if your credit history is bad, you will only be offered auto loans at very high interest rates. This is the lender’s way of covering the risk of non-payment.

3. Check the condition of the vehicle. Lenders are reluctant to approve auto loans for old or damaged cars. If you are taking a loan to buy a used car, make sure that it is in good condition. It is even better if you go in for a car with a warranty from its manufacturer.

4. Choose an independent lender. Car dealers often act as agents of auto loan providers in exchange for a commission. While this saves you the hassle of hunting for a loan provider, remember that the lender will take the money for the dealer’s commission from you – by adding it to the interest amount. To avoid this, it helps to find an independent lender.

Alisha Delphi holds a degree in Economics and Commerce from USC. She started out as a financial advisor with a bank and has moved on to become a loan consultant with more than ten years of experience. she specialises in title loans and auto pawn.

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Small Auto Loans ? Part Payments for Your Car

August 29th, 2010 by Bank Loan | No Comments | Filed in Bank
private banker
by mliu92

Small Auto Loans ? Part Payments for Your Car

Purchasing a car involves many factors. You have not only to select the models, the accessories, the maintenance charges that may be incurred, the above all, the total cost of the car. Not everyone has the amount to pay the entire amount by him or herself. There are companies that offer 100 per cent finance. But then, the interest is too high. Another option is to go for the small auto loans. You pay part of the car’s cost and the rest of the payment is taken care of by the lending company.

There are many companies that help you finance your cars: both land based, and on the internet. Even the car dealers offer you the advantage of finances. But instead of being carried away by the luring promises they make, it is better to understand what the different entities have to offer.

Land based, that is, your local bankers will ask you a whole lot of questions that should be supported by unlimited number of papers. They will also ask you for the quotation/estimate from the car dealer, other than focusing on your credit record. They may also need some surety. Too tedious task! Isn’t it? Why go for such lengthy process if you have much easy options available. Yes. We are talking about the small auto loans.

It is not hard to find a lender who will finance your car, whether in full or in part. If you can afford part payment, you need not take huge amount. Thus you save on the interest.

The process is quick as there are no credit checks, no collaterals, and, not much personal verifications. It is easy as all you need to do is to apply online with the required details. Small auto loans are the best option for people who do not want to take up big loan but need some help in buying a car. Go get your dream car now.

Frank Dervin completed his Masters in Finance from Oxford University, he undertook to provide useful advice through his articles that have been found very useful by the residents of the US. To find Fast auto loans, Bad credit auto loans, Best auto loans visit http://www.modernautoloans.com

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quesstion about online auto loans?

August 28th, 2010 by Bank Loan | 2 Comments | Filed in Loans
online loans
by Ron Sombilon Gallery

Question by Kayla: quesstion about online auto loans?
after you are approved do the just send you a check in the mail.. how does that work?

Best answer:

Answer by Justin
It depends on who you use. A lot of these online companies are not actual lenders and will forward your information to car dealers in your local area.

If you apply direct to a bank, then yes, some will send you a check. Often times you will get an approval and then the bank will have a letter drawn up that tells the dealer how to structure the loan in order to meet your approval.

If you receive a “blank check” then it will also have loan structure guidelines.

To another extreme some lenders, for customers with excellent credit, will simply issue a blank check and structure doesn’t matter that much (this is rare thought).

If you’ve got below average credit there are not many lenders that will give you an approval online, because there are many factors involved to an approval and to work with a dealership makes it easier for you and for them.

Hope this helps,
Justin

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Is it better to finance a used car through a bank or through a dealer?

August 28th, 2010 by Bank Loan | 5 Comments | Filed in News

Question by writermaury: Is it better to finance a used car through a bank or through a dealer?
Which is the best way to finance a used car — through a bank or through a dealer? Will you get a better interest rate going directly through a bank? Will the dealer give as good of a deal if he does not get a cut on the financing?

Best answer:

Answer by ScienceChic
bank. lower interest rates, not vying for your money (well, not as bad as car dealers since the economy is being notoriously down)

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Secured form of Car Loans for Bad Credit requires one?s car to play as the collateral for the finance while unsecured option does not want any

August 26th, 2010 by Bank Loan | No Comments | Filed in Loans
Loan
by cliff1066™

Secured form of Car Loans for Bad Credit requires one?s car to play as the collateral for the finance while unsecured option does not want any

Forget Bad Credit, Buy Your Car Now

Now bad credit wont be hindrance no more regarding availing the loan amount. Having a bad credit is not deterrent in attaining a customized loan anymore. Now the time has come for people with bad credit to take a sigh of relief and drive their own vehicle. If you are suffering because of bad credit and desperately need to buy a vehicle, all you have to do is to apply for Car Loans for Bad Credit. Bad credit car loans UK are so crafted to give you loan amount and make your dream car standing right in front of your home. Online procedure will give a pleasant dealing with less paper works, so now apply for Car Loans for Bad Credit.

Most of car financers also have terms with car dealers where you can select your model and ask for the quotation. In case you are interested, the money lender will arrange for the full finance of the vehicle. In case you have some money, you can also ask for partial finance. Bad credit car loans UK is designed for those people whose credit score is below the average. It is quite common in the UK to have a bad credit record as every one person amongst nine has a bad credit record. The scheme of these loans is very simple and is open to every citizen of UK. If you have a regular income and a permanent residential address, you can apply. People with No credit, poor credit, Low credit or bankruptcy can apply for finance on new or used cars.

Secured form of Car Loans for Bad Credit requires one’s car to play as the collateral for the finance while unsecured option does not want any. However, if you are looking for cheap rates of interest in your car finance deal, you should go for the secured option because there your car plays the security of the lender’s money which makes it easier to have the finance at cheap rates. Yet, the rates of unsecured car loans for bad credit do not go too high as there is tight competition in the market of bad credit car finance. They are offered for a comparatively shorter period of time.

The advantage of going for these loans is that the process is very simple. It is very tiring and time consuming as well to visit every lender’s office one by one to compare your options. You can do the same job now online if you have an internet connection at your place. We have our own websites where you can visit and get all the information. It is always advisable to compare the rates of Car Loan and then go for the decision. If you wish, you can refinance your existing loan to cut down on your monthly repayment. You can buy both new and used cars and trucks for both personal and commercial usage. There are no obligations on your part. The lenders keep the documents of the vehicle as security. Once you clear off your debt, the vehicle becomes yours. You can choose either long term or short term plan. In case of long term auto loans you will get a repayment term of 10 to 25 years and rate of interest rate will also be less here. But with short term ones you need to pay the money back within 3 to 5 years. This time do not repeat the past again and be regular in your repayment.

Loan to Loan offered Instant Online Car Loans for Bad Credit with Very low Interest Rate. It is better to choose practitioners because we work on our own. Visit Our Web Site to get touch with us without visiting our offices.

Ravi Mishra is an expert in finance and he is currently working with Best Online Car Loans as a financial advisor. To find instant loans, Online Car Loans for Bad Credit with Very low Interest Rate and for apply online for loan visit www.loantoloan.co.uk

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How come the used car dealer could get me 6% auto loan with Wachovia so easily?

August 24th, 2010 by Bank Loan | 6 Comments | Filed in Loans

Question by Dono: How come the used car dealer could get me 6% auto loan with Wachovia so easily?
I just bought a used car from an auto dealer. I required financing and told the dealer I would be happy if I could get a auto loan $ 10,000 at 6% as I knew my own bank (where I have preferred status) could only offer me 6.49% – and other banks were looking at 9%. Oddly the auto dealer got me the magical 6% with Wachovia with even speaking with the bank (it was 10pm). How did this happen?

Best answer:

Answer by The Eagle Keeper
They have a long history of doing business together. The Wachovia loan officer trusts the car dealers judgment in who can be a good customer.

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LendingTree.com Shares How Refinancing Your Auto Loan Can Save You Money

July 10th, 2010 by Bank Loan | No Comments | Filed in Loans

People usually do not think twice about refinancing a home loan to save money. But fewer people think to refinance their auto loan if they’re unhappy with it.

Charlotte, NC (PRWEB) February 8, 2007 — People usually do not think twice about refinancing a home loan to save money. But fewer people think to 0refinance their auto loanif they’re unhappy with it.

An auto refinance loan – just like a mortgage refinance – can end up saving you money by possibly providing you a better interest rate and lower monthly payments. Most people end up financing their auto loan through the dealership. While convenient for buyers who don’t want to have to delay their purchase, keep in mind that car dealers don’t always offer the best financing deals.

When an auto loan is refinanced, it simply means that a new lender pays off the old loan. The title is then transferred to the new lender and your payments are made to that new lender. Sounds simple, right?

LendingTree.com offers up the following advice on how to refinance an auto loan:

To refinance an auto loan:
1. Research lenders who can provide you with the best auto refinance loan. A web site like ww.LendingTree.comcan give you access to offers from several lenders and save you the time and legwork of having to contact various lenders yourself.

2. Provide the lender who gives you the best nterest ratewith all of the financial information they’ll need to qualify you for the refinance loan.

3. Pay any fees that may be associated with the refinance loan. These may include nominal lien holder or pre-payment fees.

4. Once you’re approved, your new lender will pay off your old loan and assume the car’s title.

For more information about refinancing your auto loan, please visit the endingTree.com Smart Borrower Center

About LendingTree, LLC
LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and 2 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/llines of credit, auto loans, personal loans, and credit cards via ww.lendingtree.comand 800-555-TREE.

Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating business of IAC/InterActiveCorp (NASDAQ: IACI), which also owns or operates LendingTree Loans, LendingTree Settlement Services, LLC, RealEstate.com®, Domania®, and iNest®.

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First Time Car Buyer – No Credit Auto Loans – What You Need to Know to Get a Loan!

July 9th, 2010 by Bank Loan | No Comments | Filed in Loans

First Time Car Buyer – No Credit Auto Loans – What You Need to Know to Get a Loan!

If you have never had credit, or if you have some credit but have never had an car loan, you may be considered a first time buyer. The Banks have different methods to determine if you are a first time buyer or not but usually with no credit or limited credit you are considered a first time buyer. If you don’t have credit it may seem like a daunting task to just go out and get an car loan. There are a few things that you can do to get an advantage when dealing with a lender.

The easiest way to get established with no credit is to get someone with good established credit to sign on the loan with you. This is called a co applicant or a co signer. The banks can look up their credit and determine how they have paid in the past. They cannot do this with a first time auto loan buyer. If they determine that your co-signer is a worthy risk then you are home free.

The next best thing you can do if you are a first time buyer is to save up enough money to use as a down payment to make the auto loan less of a risk for the bank. If you can put 25 to 30% down on a car you have a much better chance of getting your auto loan because the loan amount will be low enough that if the bank needs to repossess the car, they will be able to sell it at auction and not lose their tails on it.

New Start Auto Loans has developed a network of auto loan lenders and car dealers who specialize in helping people that have bad credit.

CAR LOAN FOR BAD CREDIT NO CREDIT AUTO FINANCING CAR LOAN RATES AND CALCULATOR AND ALL TYPES OF LOANS FAST APPROVAL GUARANTEED VISIT NOW AND APPLY ONLINE Free car loan quotes are quick, simple and secure. Even with less than perfect credit, you can qualify for an auto loan within minutes…
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