Understanding premier finance car loan
Good News About Bad Credit Car LoansAlmost half of all car purchases in America are financed. Couple this with that fact that 30 million Americans have credit problems and you see why theres such an interest in bad credit car loans. While carrying higher interest rates than prime loans, bad credit car loans are not hard to get. Even people who have filed for bankruptcy can find a decent deal on auto financing if they shop around. It doesnt matter if they buy new or used. Bad Credit Car Loans - Buying New The danger in buying new is getting upside down on the bad credit car loan. One way to avoid this is to have a decent down payment20% or better. Another way is to choose a vehicle with high resale value. This will help slow down depreciation. Depreciation is the difference between the Manufacturers Suggested Retail Price (MSRP) when you bought the vehicle and what its now worth. A $25,000 car will depreciate an average of 15% the first year and between 7% and 10% annually for the next two years. Cars with a prestigious nameplate hold their value longer and are less likely to depreciate faster than the car loan. Bad Credit Car Loans - Buying Used When you buy used, you have the chance to get a more expensive model than you could afford if you bought it new. For about the same amount, you could own a new Hyundai, a two-year-old Taurus, or a six-year-old BMW. Getting a used vehicle from a private party will be cheaper than buying the same car from a dealership. Here are a few questions youll want to ask the seller: - How long have you owned the vehicle? - Has the vehicle been in an accident or repainted? - When are the next state inspection and emissions tests due? - How often has the oil and filter been changed? - Why are you selling the vehicle? First Things First Remember that total price is more important than the monthly payment. Stretching the length of a bad credit car loan will mean paying more interest. For instance, the payments on a $20,000 loan can be lowered from $500 a month to $360 by extending the term from 48 months to 72 months. However, this will cost about $2,000 more over the life of the loan, or 10 percent of the loan amount. Mike Hamel is the author of several books and the Senior Writer for AIM Techs, an Internet marketing company that specializes in advanced SEM techniques and developing sites like BuyAAuto. More Useful Resource and Updates on premier finance car loan
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