Finance Loans CA

Buying a new car can be a great experience, but it can also be disappointing when it comes time to do the paperwork. With the right credit score you can either walk into a dealership and drive home with a new car same day, or you can face a lot of difficulty with getting the cash you need to finance your new car.

Unless you are paying cash for your car or borrowing money from a family member, you’ll need an auto loan to purchase your new car. Your best bet is to visit your bank first to find out what kind of loan you qualify for, otherwise you’ll be tempted to get your loan through the dealership. Dealer financing is typically very expensive and will cost you way more money for your car.

Either way, your credit score is the most important variable when it comes to determining if you can get approved for a loan, how much, and at what rate. The higher your credit score, the better the rate you’ll be able to secure. That means you’ll be able to purchase a nicer car or save hundreds of dollars a month. The same exact car you purchase can cost another person several hundred more dollars a month simply because of the difference in credit score.

The average credit score in America is 720, though you realistically need a 760 score or higher to get approved for the best rates. If you fall below the 720 mark, you’ll likely need to take a few extra steps to increase that rating.

See how your personal credit score compares to everyone else.

Check it for free at at http://www.thecreditfix.info

Car Loans FAQ:

Question: Are car loans hard to get these days?
I know with the economy the way it is, it might be hard. My credit score is 634 and I am going to try to get a car. My credit is fair, but am curious if I can get a loan for a car.

Answer: A credit score of 634 is below the 680-700 that many lenders like to see. However, some lenders are going with 620 as a lower limit. You’ll just have to try a few to find out which ones will approve you. All lenders are different in what they will accept, but it is definitely much tighter than a year ago.

Question: Who has the best or most reputable alternative car loans?
I need help finding financing for a new or used car with little to no credit history.

Answer: If you have little credit, but what you have is good, you may qualify for a first time buyer program from a major auto manufacturer.

If you have credit problems, this will be harder. The more you can put down, the better the loan terms you will qualify for.

Question: Can you have two loans on one car?
I have a car loan on my vehicle through my credit union. Is it possible for me to get another loan taken out on my car? I have a family emergency that I am needing a couple thousand for and this seems like my only option.

Answer: In theory, yes you can have a second lien on a car. In practice, this is a very high risk proposition for a lender and the value of your car after the first lien is probably not much.

Try and refinance the car and get cash out. This is lower risk for the lender and you will only have one loan to pay.

Question: Can you claim interest paid on car loans or other debt on your taxes?
I know you can itemize mortgage interest paid, but all my end of year loan statements and credit card statements are specifying the YTD interest paid. Is that for tax purposes or just to shock the heck out of me?

Answer: No, it is not deductible

The reason that credit card and finance companies provide this info is in the chance that the credit card is a business card.

Question: How do principle payments work on car loans?
If I owe $33,000 on my car and I pay an extra $200 or if I pay a lump sum say $4000 at one time how does that get applied to my loan and how does that reduce my debt?

Answer: When you send in your payment make sure that it is stipulated that it is for an additional principal payment. Paying down the principal makes what you owe smaller. You pay interest on what you owe and as your balance goes down so does what you pay on interest. Some banks will apply it to where ever they want. That should be in your loan papers. Someone told you that they are paid ahead and can skip if they need to, that is not always true. Each bank and lending institution has their own rules. Read all of your paperwork.

Question: Does anyone one know about bad credit car loans?
Im interested in buying a car but i have bad credit. Does anyone know of any websites that offer car loans to people with bad credit. A lot of them say they do but they lie.

Answer: Call a few local franchised dealers and ask if they have a secondary, or special, finance department. They do. You can buy a late model, or easier yet, new car. You will need some money up front and a job. You will pay a higher interest rate. Just to clear a point…a franchised dealer is one that sells new as well as used cars. The reason I want you to do that is the new car dealers put a lot of business each month into local lenders. Sometimes that is the difference in a border line approval.

Question: What was the last year you could deduct the interest from credit cards and car loans?

Answer: The deduction for personal interest, including interest on charge card purchase of consumer items, was phased out by the Tax Reform Act of 1986. Congress believed that the deduction for personal interest encouraged people to consume and that such consumption was at the cost of savings. At the time, the American savings rate was declining and, unfortunately, the private savings rates continues to remain low. To eliminate the significant disincentive to savings, Congress repealed the itemized deduction for personal interest other than mortgage interest.

Question: How can I find the lowest interest rates on car loans?
I was told I could shop around and find my own financing besides the dealers.

Answer: You can and should shop around. Sometimes the dealers have the best rates available and sometimes a credit union, your bank or another bank may have the best rates available.

Finding a car loan finance calculator can help you determine the best rate, amount and payment terms for your new or used car loan. These calculators are an important part of the car financing process. Thanks to the Internet, you can now find a variety of car loan finance calculators with just the click of your mouse.

Car loans help you finance the purchase of an automobile. They can be used for new or used cars, but normally you need to purchase through a dealership of some sort in order to get a loan. Car loans may or may not require a down payment, depending on your credit score, your income and how much you want to borrow.

Before you find a calculator and plug in your numbers, make sure that you are using the right kind of loan calculators. There are tons of loan calculators available online, but not all are for auto loans. Real estate loans, commercial loans and credit cards all have calculators available online. Be sure you’re using an auto loan calculator.

Car loan finance calculators will help you determine what is possible based on your qualifications. You’ll need to enter the amount of the loan you want to obtain, the rate of the loan and the length of repayment. Auto loans normally run for 36, 48 or 60 months. The longer the term of the loan, the lower your payments will be. However, you’ll also have to pay more interest if your loan is for a longer period of time.

The car loan calculator will help you find a variety of different options for your car loan. You can play around with the different figures to see how your rate will be improved by different factors. Advanced car loan finance calculators will give you extra details on your loan that will help you evaluate it more carefully. You’ll be able to see how much interest you can save by having a shorter term loan or how much of a difference a few percentage points of interest can make.

Loan calculators will help you evaluate the best options for you before you go shopping for a car loan. By using a calculator before you shop, you can find out what type of rate you can expect. You should note that a loan calculator is just a tool to use. It is not a guarantee that you’ll get those rates. Banks have different rates for auto loans, so it pays to shop around. In addition to considering the amount of money that you want to borrow, the bank will also look at the current interest rates and your ability to repay.

After finding a variety of quotes with an online car loan finance calculator, you’ll be better prepared to find out more about a car loan from a lending institution. For the most accurate rate, you should meet with a loan officer or contact a lending institution online. While you’ll be able to plug numbers into a calculator, you won’t know the exact rate you’ll receive.

For more information on finding a car loan finance calculator and other tips on managing finances, visit Finance-AAA.com. The site offers extensive information on all aspects of finances for consumers.

Car Loans FAQ:

Question: Is it good for credit to have two car loans.?
I have a car loan and want to get another loan. I also want to refinance my house next year, would it be a good thing for my credit to get a second car loan before refinancing?

Answer: If I were you I would wait until you have refinanced your home before going into additional debt for another vehicle.

When you refinance you home one of the largest things other then your scores and pay history that the lender is going to look at is your debt to income ratio. If you have another vehicle loan on your credit it will reduce the amount that the lender will be able to loan you on your refinance of your home.

Question: How many of you refinance your car loans?
Is it a good idea? I have a pretty decent interest rate on my car. However, it could be a little cheaper.

Answer: Never. If you must borrow, pay off as fast as you can. A car is generally a depreciating asset.

Question: Does anyone know any websites that actually offer car loans to us with bad credit?
Does anyone know personally about any websites that actually offer car loans to people with bad credit. They all say they do to get you there and then they tell you another story.

Answer: Seawest Financial Company financed me when I didn’t have any credit. You may pay a higher interest rate but you can re-finance to a lower one once your credit gets better. Hope this helps b/c I know by experience how much it sucks to be turned down for a car loan

Question: Should Me and my wife apply for new car loans jointly or separate?
Me and my wife just recently got married, and it is time for both of us to purchase cars. My FICO score is 650 and her FICO score is around 750. My salary is almost twice hers. Should we apply for our car loans separately? I know this would help my interest rate, but I don’t want to hurt her interest rate.

Answer: Anyway, it would hurt her if you add yourself on her loan, while it would help you to have her on yours. In your current situation, I would have her cosign for your car to secure a lower APR and you should stay away from hers so she can qualify for a lower APR on hers. I was in the same boat with my wife some years back (except the other way around) so I know exactly what you are going through.

Question: Is it true that people with horrible credit can get car loans?
Car Dealerships make it sound like you can be in collections for lots of accounts and they’ll get you into a brand new car with no money down. What’s the truth on this?

Answer: It is true that you can get credit for a car even with really bad credit. However you will have really, really high payments.

Question: What happens with car loans after damage?
My friend’s car was crushed by a tree on Sunday in a storm. His insurance is giving him 9000 for the car, but he still owed like 19000 on it. The bank is refusing to transfer the amount to a new car. How can they force him to pay for something that a. wasn’t his fault and b. isn’t driveable? If his house was knocked down by a tornado, he wouldn’t have to continue to pay the mortgage–how is a car different?

Answer: The balance still must be paid, regardless of fault. The real fault lies with your friend signing up for a bad loan.

He needs to contact the gap insurance company, his primary insurer is still only going to pay the actual cash value of the car. Gap is totally separate.

Question: Do banks finance car loans for first time buyers on used cars?
I am looking to buy a used car. My mother believes that i cant get financed because Im a first time buyer and it would be a used car.

Answer: Yes you can get financed. But it depends on your age (cant sell a car to a minor) and if your mom wants to co-sign. You will need a co-signer to get it.

Question: In 2009, 60% of car loans will be paid off, does that mean people will rush to buy new cars?
A car salesman told me there are 4 to 5 year car buying peaks. The last peak in car sales were from the years 2005 and 2006. He said most car loans will be paid off in 2009 and 2010 and in those same years they are expecting another peak in new car sales. Any truth in that?

Answer: I have been in the business for 10 years, most people try and trade after 3 years. The current popularity of 72 month and even 84 month finance will change that. We get a steady flow of customers for the most part until, like now, the economy gets shaky then we slow down. The 2005/2006 spree was caused by low rates and big sales (GM’s first employee price sale). I hope it does turn but I wont hold my breath.

Have you been searching for somewhere to finance your car with bad credit? In this day and age everyone either needs, wants or has a car. Gone are the days when a car was considered a luxury item. A car is definitely a necessity for most. However, due to your poor credit history, no lender is willing to help. You have even approached your own bank and they have shut the door firmly in your face.

This is when your search to finance your car begins. Although there is a vast array of lenders available, you need to be very careful. I’m sure you have heard many horror stories of people borrowing money and then being held to ransom by the lender. Once they have gone through the reams of small print, they discover that they will need to pay back up to 10 times the amount they borrowed. This, unfortunately, leads to further debt., which in turn can worsen your credit rating and eventually lead to bankruptcy!

Fortunately, this is where certain companies and organizations have evolved to help you. They are intermediary organizations, who will do all the leg work for you. They understand having bad credit can be a difficult time and will provide you with everything you have been looking for. They can show you how to finance your car, even with bad credit. Usually these companies have a huge list of lenders on their books, who are willing to help people in your situation. They can also provide online support and even have access to many unknown government resources. You will usually have to pay a very small one-time fee to get access to this information and remember i said very small!

You can still Finance your Car With Bad Credit, but you will just need to be wary. This is why i believe these intermediary companies are actually a blessing in disguise. The majority of lenders on their books can give you that auto loan online, at a price you can afford. In most cases your auto loan can be agreed and set up within a matter of days.

If you urgently need to Finance Your Car With Bad Credit, then it is time you visited one of these intermediary companies. Click Here to find out exactly what others in your situation are doing and secure that car loan today.

Car Loans FAQ:

Question: Any general rule of thumb how much your credit increases reducing two car loans to one?
Helping a family member I had 2 car loans. One was 28k balance the other 21k balance. Just sold the 28k car and paid that off. Credit is very good, no late pays etc. Trying to determine how many points could that potentially increase my credit? Any idea…someone told me 30-40 points of all other credit is good, which in this case it’s excellent?

Answer: There is no way to say exactly. Sometimes it doesn’t raise your score much at all. I have two car loans myself, one for 20K and one for 50K. I sold the 50K loan and my credit score only improved by 2 pts.

The reason is many factors involve calculating your score. If you closed the account which had a longer history it could negatively affect your credit. Overall credit length of time on accounts make up 10% of your score. So if you’ve been paying on one loan for the past 4 years and sold it while keeping the other car loan you just took out 6 months ago, your score might go down.

Question: Can I take out a car loan if I am already taking out student loans?
I am a senior in high school and I was wondering if it was possible for me to take out a car loan while taking out loans for college?

Answer: Yes you can have the car loan simultaneously with the student loan. My niece had gone for such a option. She had taken a student loan and with that she also a got a student car loans.
The finance provider had a different option for the students with special offers and rates.

Question: Is it good to pay several months ahead for my car loans in order to boost my credit?
my credit is 550, I’m thinking about paying for six months ahead on my car loan so i can increase my credit score and have the peace of mind. i want to do that to increase my credit score so i can get a new car in six months. I want to pay for six months ahead of time, and get a new secure credit card. do you think that can boost my credit to 700 by june of next year?

Answer: If that’s the only bill you have fine. If it’s not, pay high cost loans first. Credit score is not only set on how you pay, but also credit available. If you have a lot of credit cards available to you with low balance but high available credit, get rid of some. Cancel them. This will help your credit score more.

Question: If you had cash would you payoff your car loans or would you use the money for other things?
I currently have two car’s and I have a combined loan for them with a low interest rate. If you had just enough money to pay the loan off would you or would you use the money for home improvements or furniture or what ever? I just wanted to get some ideas about what some people would do?

Answer: I would bank it. Cash is a good thing to have. If I had any debt w/ high interest rates then I might pay some toward that then try to consolidate it into a low interest loan. There again, showing you have cash in the bank would be beneficial.

I definitely would not spend it frivolously. The economy is changing. Having some cash handy might be very helpful a year or so from now.

Question: Good idea to pay additional principal on car loans?

Answer: The answer to your question really comes down to can you invest those funds and have a return on your investments greater than the 6% you are paying as interest on the loan. If you can, don’t prepay the debt but funds those dollars into your investment. If not, continue to pay the debts down.

If you have other debts with higher interest rates, those funds really should be used to decrease those higher interest loans.

By paying down the car loans you are decreasing the term you will be paying on them. If you trade the cars in (or sell them) before the debts are paid, you’ll owe less (and net more out of the sale) if you continue your debt reduction strategy.

Question: Are there any debt relief agencies that help with secured debt. Such as car loans and student loans?

Answer: Federal Trade Commission website also for Consolidation Company and what to watch out for.

Question: If you had 5k in student loans and 5k left in a car loan and you were about to get a check for 8k?
Which loan would you pay off first? And suppose your car payment was $500 / month as well.

Answer: Pay off the one with a higher interest rate. Probably the car loan. Then use the car payment money to pay extra on your student loan each month.

Question: Which is better to pay off car loans, credit card or put money toward mortgage?

Answer: Pick the credit card with the highest balance and pay it off. Then go to the next one and pay it off -then the next.

After that go to the car loans….start with the car loan with the highest balance and pay it off.

Even if the interest is higher on a card with a lower balance you are still paying more because its compounded on the total balance.

There are many people who feel that they simply can’t qualify for a car loan. There are many reasons you may feel this way, including a low income or a poor credit history. For most people who are in this situation it is because they have one or more negative marks on their credit history and a low overall credit score.

Despite these factors there are some options available which can get you a car loan despite your past credit history. These loans are commonly referred to as guaranteed car finance options. Like all forms of car financing these types of loans have disadvantages and advantages.

The most important advantage that guaranteed car finance options is that they allow you to qualify for a car loan, even if you have poor credit history. This can help you to purchase a vehicle even with defaulted loans or a history of late payments. These types of loans are actually designed for people in this type of situation.

The unfortunate truth of guaranteed car finance options is that they always come with certain stipulations and policies which may make them less than preferable for many buyers. The first and most common factor that applies to nearly all of these loans is that they come at a higher than average interest rate. In fact it is not uncommon for a buyer to pay as much as 11 to 12 percent on a loan of this type. This added interest is built in as a protective measure by the financing company to protect itself in case the buyer defaults on their loans. For the buyer this means they are subject to considerably higher monthly payments for a vehicle than someone who has good credit.

Another term used for many of these loans is to require the buyer to place a larger amount of money down to purchase the vehicle. In fact, it is not uncommon for these types of loans to require as much as 20% down on the purchase of the vehicle. To put this in perspective this would mean that a person buying a $20,000 would have to put $4,000 down to qualify for the loan.

This is also used as a method to protect the lender since it helps to ensure that if they do have to repossess the vehicle it will have a better chance of still holding a value higher than or equal to the amount still owed. Unfortunately many buyers simply do not have that much money to put down on a vehicle.

Most lenders who offer this type of loan also have higher than average standards surrounding late payments. While all car loans have late charges most standard loans only charge around $10-$20 for a late fee. Many lenders offering loans for people with poor credit will charge late fees as high as $200.

Buying a car using this method is an option which is designed to help people who have made some mistakes in past. They are also a method which can be used by a person to improve their credit score. In reality they are a good option for many people who have a poor credit history but only providing that they intend to stay current on the loan.

For more information on finding guaranteed car finance and other tips on managing finances, visit Finance-AAA.com. The site offers extensive information on all aspects of finances for consumers.

Car Loans FAQ:

Question: If you are paying up 2 car loans and then can’t afford one of them, which one gets repossessed?
I have a loan on a car from 4 years ago, then I took a loan out on another car 3 years later. Now I have 2 loans on 2 different cars. But now I can’t afford both of them so I am going to have to give one up. The loans are with the same lending company. Do I have a choice on which one they will repossess or do they choose?

Answer: Yes you have a choice its the one you stop making the payment on. Take the best one and dont miss a payment on it.

Question: What are the average interest rates for car loans right now?

Answer: New or used? They’re different. Manufacturers may still be offering 0% incentives, so watch the ads if you’re looking for a new car. I doubt the rate will go lower than that in the near future. Used? Check with a credit union – they’re usually the cheapest place to buy money at retail.

Question: Will applying for car loans with multiple lenders hurt my chances of getting a loan?
I’m fresh out of college and in need of a new car. I’m shopping for rates – filled out a credit application with the dealer, and a couple online. One of the lenders I applied with online wrote at the bottom of an email to “be sure not to apply in multiple places as it would hurt my credit score and negatively affect my chances of getting a loan!”

Answer: All inquiries made in a 14-day period are lumped together and only count as one, they all show but your score only gets dinged once.

Question: Why does the blue book and bank loan prices differ on car loans?
I’m researching a used car. Kelly Blue Book and NADA guides state the value of the car at between $5500 and $6300. I’ve haggled the sale price down to $4800. However, the bank Ive spoken with about the loan says they can only loan $3500 on the car. Why is there such a discrepancy between the estimated value and loan value?

Answer: They are protecting themselves – if they need to repossess the car because you don’t pay the loan, they want to sell it quickly to a wholesale buyer, which yields them less money than a retail sale would.

Question: What are the laws regarding minors and car loans?
My younger brother is 17. He wants a car and neither his mom or my dad will co-sign for him. My husband and I told him we would, but my brother’s mom told him that he can’t legally get a loan without her concent. I used to work at a bank and I know that minors cannot open a bank account without an adult, but the adult does not have to be the minor’s parent.

Answer: Since he is a minor, he cannot enter into any kind of binding contracts until he is 18. There is nothing that states that the adult co-signing a loan for a minor HAS to be a parent or guardian. The only thing is, if he defaults on the loan you will then be responsible for the loan (but since you used to work @ a bank, you should already be aware of what you are getting yourself into if he defaults on the loan).

If you haven’t considered this yet- he’s going to be in the same position when he goes to get insurance & his tags for the car. Can’t due to being a minor.

Question: When filing bankruptcy in CA, can car loans be discharged as well?
My friend is planning on filing bankruptcy, we were wondering if her car loan will be discharged and she’ll get to keep her car.

Answer: If her loan is discharged, no she won’t get to keep the car. She might have an option to exclude the car from the bankruptcy filing, but then she’ll have to pay the loan.

Question: Is there a way I can take out student loans and pay my car loan off with it?
I owe about 12,000 on my car loan with an interest rate over the roof….I figured if I borrowed a lot of money i could pay that loan off with the money I borrowed and get a really low interest rate for my car. Am I allowed to do that?

Answer: Student loans are for education, no college is going to sign off for you.

Question: How exactly do car loans work?
I am looking to get a new car and I don’t have any credit at all which I know is the same as having bad credit, but I read that it is actually not that difficult getting financed right now. So how exactly does that work? I can afford the payments each month, but I don’t have anything as a down payment so is that what I would use the loan for?

Answer: With no credit you would have to either pay cash, borrow from family, or get a co-signer, assuming you are at least 18 years old.

Are you planning to buy a new car? If you are, how do you plan to pay for it—cash or installments? If you have saved enough money to cash out the total cost of the car, it will be better for you. But if you do not have enough money right now, you can always pay the down payment first then pay the remaining amount in installments. You will need a car financing loan for this.

Persons who want to purchase either a used car or a new car but cannot pay the total cost outright can apply for car financing loans. If you want to take advantage of this, you have to carefully look into your credit history. Some car financing companies deny loan applications to people who have a bad credit history. When you apply for a car financing loan, the lender will look at your credit score. If your score is above 600, there is a strong possibility that your application will be approved. But if your score is below 600, it may be wise to postpone your car purchase and improve your credit rating first.

Before you get a car financing loan, you have to make sure that you are completely aware of all the car financing options available. It is expected that your car dealer will also offer you some sort of car financing. However, you can refuse their offer if you have secured a pre-approval from the car financing company of your choice. It is recommended that you shop around for car financing loans first before you go to your local car dealer.

Getting a car financing loan has advantages and disadvantages. This is why you should take your time to look for reliable car financing with reasonable rates. You can browse online for car financing companies so you can compare their reputations as well as their rates. You should never rush into a car financing deal if you are not sure that you are transacting with a reputable company. Remember, purchasing a car is a huge investment. You have to find the best deal for you.

Car Finance provides detailed information on Car Finance, Bad Credit Car Finance, Online Car Finance, Car Finance Rates and more. Car Finance is affiliated with Mobile Home Finances.

Car Loans FAQ:

Question: Car loans?
I am looking to get a used car and I want to finance it through my bank. How do car loans work? Do I need to find a car first or do I get the money from the bank first? What if I get a loan for 12k and I find a car that is 10k – do I need to give back the extra 2k?

Answer: Go to your bank or credit union and get approved for a loan. Go to the dealership and buy the car. They write the contract or purchase order and you can take that to your bank or cu and your loan is for the amount of the purchase of the car. The dealer might have access to your bank or credit union directly and they can take care of all the paperwork. They might also be able to get you a better rate than the bank.

Question: Is it smart to use a home equity loan to pay off car loans, and a line of credit?
My husband and I need to lower our monthly payments. We have no debt except a line of credit for $60,000 with the payment of $410 and two car loans both adding up to about $25,000 and the combined payment of $1050/mo. So, we are spending about $1400/month for these 3 things. If we got a loan for $110,000 and payed all these off, our payment at 6.6% would be around $700/month. Of course I would always pay more than that per month which would go to principle. Why isn’t this a good thing to do?

Answer: In theory it sounds good. But here’s what happens. You borrow the 100 grand and now you have financed your two old cars for 15,20 or 30 years. If that isn’t bad enough statistics show that you will have more car loans, credit cards, etc. PLUS the 100 grand loan in 5 years. You cannot “borrow” yourself to prosperity. Pay off your obligations without refinancing and you will be proud of your actions.

Question: Can you get a home loan that will also willing to pay 2 car loans?
We are planning to buy a house but I was wondering if it’s possible that a lender will also pay off 2 car loans?

Answer: No. A mortgage is a real estate loan. If you’re doing a refinance and have enough equity, you could get enough money to pay those car loans, but the lender won’t do a payoff for you, unless it’s a condition of the loan.

Question: I have two car loans and would like to put money down towards one of them. Which one should I choose?
I have two car loans with the same interest rate 5.65%. One loan is 10,281 and the other one is a new car loan at 22,525 that’s with taxes included. I plan to put 6,000 down towards one of the loans. Do I put the money on the lower one to pay it off sooner or refinance the new one and decrease the taxes and interest paid over the life of the loan. It doesn’t cost anything to refinance with my credit union, so there are no fees involved. Im having a hard time determining which way is more cost effective.

Answer: In my experience, I find it better to pay off whatever you can sooner. That way, once you pay it off, you can put what you save from paying on that one to paying more on the other.

Question: How do car loans work?
I’m a junior in college and I use my dad’s car to get to and from school during breaks or holidays. I’m paying for school through students loans, so I will be in debt after school. So I was wondering how car loans work because I need something big like a jeep or something, and I’m wondering if there is such a thing as a student car loan. Something I can pay back after I graduate from college. I hope that don’t sound dumb but I don’t know anything about car loans.

Answer: Set your sights on that Jeep once you get that job! Earning is a privilege! Self-satisfaction.

Motorcycles are easy on the gas and maintenance. Get a double seater for your dates.

Question: What Benefit Or Bonus For Good Mortgages And Car Loans?
Is there any benefit or bonus for people who live within their means with current mortgage, household bills, and car loans?

Answer: No it’s self destruction at others expense. I personally know someone who lost their home, the following week they were off on vacation. I often wondered how they could go out to dinner four or five times a week and never think about taking a lunch to work.The sad part is nothing has changed for them other than the restaurants at their new location.

Question: What is the name of the company that refinances car title loans?
I ran into some financial problems lately. Stupidly, I went to a car title pawn. Big mistake. I pawned my car title. I once heard a commercial on the radio that refinances car title loans. At the time I was not interested. Now I am. Does anyone know of a company that refinances title car loans?

Answer: Sorry but that will only make it worse by taking first principal and adding their interest and you will have a car payment just to keep car from getting repoed not only by lender but you can not get back even if you have full amount. It will just get worse.

Question: Why is interest on car loans not tax deductable and interest on home loans are?
If I am able to take the interest paid on a house loan of on my taxes every year, why not my car loan. Both are tangible assets?

Answer: Yes, both are tangible assets, but this fact does not determine whether interest is deductible. Instead, you can deduct interest if it is a business expense, and there is a separate rule for homes. Apart from home loan interest, interest paid for personal, non-business expenses is not deductible.

Congress created an exception for interest paid on home loans. You can deduct that interest even though it’s not a business expense. That’s because Congress wants to encourage home ownership.

Whether an asset is tangible or intangible has nothing to do with whether the interest payment is deductible. Banks, for example, can deduct interest paid on their loans because banks are in the business of taking out and making loans. They can do this even though there is no tangible asset involved.

If you are in the military then one of the advantages you have is being able to apply for military loans. These are a great way to get emergency funds should you need them, as well as a way to pay for things such as car insurance, holidays and anything else you may need several thousand pounds for. But can you still get these if you have bad credit?

In most cases yes. Loan companies and banks have introduced bad credit military loans for borrowers that may have bad credit either from previous late payments with loans or by not having enough time to build up a good credit score (unfortunately in some cases if you don’t have a good credit score you are considered as having a bad one).

The problem with bad credit military auto loans is that they often have a higher interest rate than regular military loans. However they can be used for so many things, they are so flexible that they are often a fantastic option. Because they are free from going through the credit check process they can also usually be received very quickly – sometimes within days of applying. So if you are abroad in active service and your family at home needs some money urgently you can easily get it for them in a relatively short time span.

Before applying for a military loan you should do thorough research. Bad credit military lenders often have much stricter terms and conditions, as well as late payment fees, so be certain that you are getting the best deal before committing.

To find out more about getting bad credit military loans please visit BadCreditMilitaryLoansFAQ.com.

Military Auto Loans FAQ:

Question: Is USAA auto loans are for military personnel only?

Answer: Active or retired military, and their spouses, and children. Yes.

Question: Military auto loan?
I just recently had a financial brief for the U.S. Army. There is some kind of program for active military to get an auto loan no matter what kind of credit, or lack there of, they have. The Staff Sergeant who gave the brief could not remember the name of the program, but has used it herself. It’s only good for your first auto loan. I was wondering if anyone knew what the program was called so I can go into a dealership prepared.

Answer: Not sure but I’d check out USAA they work very well with military, even if credit is an issue.

Question: Where can I find an auto loan for active military with limited credit?
I am a soldier in the US Army with no credit history and I am looking for a loan to buy a new motorcycle worth about $11000.
I can put down $1000 to $2000. Where should I look for a loan?

Answer: Have you looked into USAA ? They only deal with military personnel and have many other financial services. Or go to a credit union they will give you the best rates depending on your ets and rank. Most posts have one on base check there. But do know that motorcycle loans are different than car loans they are considered recreational vehicles so it will be harder to obtain or may have a higher interest rate.

Question: Anyone know about any loan laws that make it so active military cannot be over-charged interest for auto loans?
I’m US Army, and while I was on leave back home I purchased a car. It was about 8,000 dollars, even with 5000 down and a military paycheck, which is more consistent than any right now, I still had trouble getting a loan. I fought for the whole week I was on leave and on the last day they finally got me the loan. I mostly wanted the loan to start gaining my own credit, but it was almost impossible. I had a 638 credit score. Not great, but certainly not horrible. I got the loan at 30 percent interest though for 15 months, and that’s over double my down payment. I heard there is a law that makes it so that Military cannot be charged more than 6 or 7 percent interest? Is this true?

Answer: The government had a successful campaign against people who were scamming soldiers; Insurance policies, payday loans, and a few others who were allowed on-base to sell their products.
If they started limiting interest rates on automobiles, many dealerships would stop selling to soldiers. Buying a car is part of American free enterprise. An adult soldier does not need any “protection” when negotiating an interest rate or a purchase price on a car.
So there is no such law

Question: Auto Loan Online? Military? Bank?
I’m looking for a car loan for about $10,000 so I can buy my new car before I sell my current one (which is paid off). I have a good credit score of 741 last I checked. I’m in the USMC reserves if that will help with interest rates. I don’t have very much monthly income however since I just quit my civilian security job.

Answer: A lot of finance companies, instead of banks are offering great rates right now in today’s economy. Best to call a few. Watch the fico score when they want to run your credit. Get a copy of your own credit report to take into them and req they not run one unless you get serious to apply with them.

Question: How drastically does an auto loan affect your credit?
I just got one for 54 months. The payments are very reasonable and its set up as an allotment so it automatically comes out my paycheck and I don’t have to worry too much about anything. I’m in the military so my job is guaranteed. I just want to know how this loan will affect my credit. Does it have the possibilty to raise it a lot or what?

Answer: Auto and home loans have the biggest impact on credit scores over time. As long as the loan is paid as agreed, and from what you said it looks like it will be, your credit score will go up a lot after the first 12 payments are made.

Question: I’m in the military. What is my best option for getting approved for an auto loan?
I’m in the process of rebuilding my credit. I currently have NO credit score. In 2005 I was financed through GMAC and a friend totaled my car. I went to boot camp soon after before I could handle anything. There was a mix up with the insurance company and the vehicle was written off as a total loss on my credit while I was there. I don’t owe any money on it, but it hurt my score. My score went from 5 something back to nothing. So its like I’m just beginning again I suppose. I’m just trying to figure out what my best option is for getting the best chance at financing another vehicle.

Answer: First of all, call USAA. They are a bank (and auto insurance company) who are created by and devoted solely to servicemembers and their families.

Call them, explain exactly what you said here, and they will help you out. They’re great that way.

Question: Can I get an auto loan with bad credit?
I have bad credit but NO DEBT. Before I joined the military, I payed my 2300 worth of debt off. That was about a year ago. My credit is still bad though, and I applied for an autoloan through USAA and they said I could get a 12,000 loan WITH a cosigner. But This is not what I need, I need a little bit higher, say, 15,000. Since, I have no debt, are all the places gonna only approve me for 12,000 or can I get anymore?

Answer: Yes, you can get an auto loan with bad credit, and yes, I’m sure someone will loan you $15,000…but you won’t be able to afford the payments. Auto loan companies make money off people like you. To be honest, USAA is probably giving you the best deal out there…..I know, I just bought a car with their money and the dealership wasn’t happy about it. You didn’t say what branch you are in, but if you quality for membership in Navy Federal, you can try them as well. Their rates are lower than USAA’s, but they tend to be pickier about who they loan to.

Amortization is the gradual reduction of a term debt by periodic payments sufficient to pay the current interest and to eliminate the principal at maturity. The amount of periodic payments depends, in part, on the principal, the interest rate and the length of time of the loan.

An amortization schedule is basically a table containing loan details. The beginning of the table shows the amount borrowed, as well as the time period of scheduled payments. The amortization table will then show each payment to be made with the amount that goes towards the principle being deducted from the loan each time. The amortization chart will then show the new balance after each payment.

There are many websites that offer loan payment schedules using free Excel templates you can download, or online calculators. Most of them you just enter the loan amount, the interest rate, the term of the loan, date of first payment, and the payment frequency. The spreadsheet does all the calculations and then you are able to investigate how making extra payments will affect when you can pay off the loan and the total interest paid. You can also use the same type of car loan amortization calculator to apply to consumer loans and home mortgages.

Here Is Why You Should Car About Care Loan Amortization

When you are talking about purchasing a car, whether new or used, amortization will play an huge part in your loan. Car loans are possibly one of the most popular types of loans in the country and car loan amortization is very important to the process. This is the means by which the car loan is broken into equal payments throughout the life of the loan. You will be able to see the benefits of paying an extra payment towards your car loan. The more payments you make that go toward principal, the less the interest that you will pay because the loan is paid back quicker. Even if you can only make one extra payment per year, that payment goes directly towards principle, allowing you to reduce the amount of interest you pay. And, more importantly, get out of debt that much quicker.

Here is a simplified example of a car loan amortization:

Auto Loan Amount – 15000.00

Auto Loan Term (in months) – 48

Interest Rate – 8%

Auto Loan Start Date – July 10, 2008

Monthly Auto Loan Payment – 366.19

This would apply 266.19 to your loan principal and 100.00 to your interest and your pay off date would be July 10, 2012, with your total interest paid over the life of the loan at 2577.30.

If you only added one extra payment per year, on the anniversary date of the loan, your loan would be paid off 3 months earlier, in April 2012, with your total interest paid over the life of the loan at 2395.64.

Not only can you save money by making that extra payment per the car loan amortization schedule, but an online amortization calculator also helps you shop for car loans. Most car loan companies will offer you a way to calculate amortization that is typical for their company and the amount you are going to borrow. This will be based on your credit score and will show you how much in interest you will be paying over the life of the loan.

This process is also important to the loan provider, as it indicates to them exactly how much interest they can expect to earn each month, as well as when they can expect the loan to be paid in full. Car loan amortization offers companies and consumers the knowledge and security of set payments for the duration of the loan.

Some of the website car loan amortization calculators also offer you a way to quickly calculate lease and loan payments as well as compare the true overall cost of owning versus leasing. This will allow you to determine whether leasing truly is the better option even if the payment amount is significantly lower than borrowing. All in all, car loan amortization plays an important part in your next purchase or lease, depending on your financial situation. The car loan amortization calculator I use is at bankrate.com. It’s free and it allows you to enter unlimited variables and see exactly where you can save money.

Patrick Morgan is a retired auto dealer finance manager from Austin, Texas, who has started a blog to help people with bad credit obtain car loans. To learn more about the different types of bad credit car loans visit his blog, where you’ll find out what’s available now, including bad credit car refinancing

Car Loan Amortization FAQ:

Question: How can I know how much I need to pay to payoff my car loan?
I see on my statement how much principal is left to be paid on my loan, but if I send in that amount, won’t I be short the interest I’ve been charged since my statement? Should I just overpay and hope for a refund?

Answer: Typically it is best to call the finance company to get an exact payoff. Your interest does accrue on a daily basis typically, so even if you sent an extra $50 say, you still could be short a few dollars. If you call for a payoff, the amount is good for several days. Others, pay off the principle balance and wait for a finalized statement the following month.

Question: How to determine car loan interest?
I can track my mortgage payments from an amortization schedule and see exactly how much I need to pay each month in order to get it paid off in x amount of time (I put this together on an excel spreadsheet). I want to do this with my car loan, but each month the interest is a different rate. One month I see that 36% of my payment went to interest, the next month its 28%, the next month its 31%. Seems to me the best plan would be to send in extra payments during the months that the interest is the lowest so that more goes towards the principal – but how in the world am I supposed to know when they will take more or less interest?

Answer: The reason that the interest varies is because they charge interest by the day and some months have more days than do other months. The actual rate does not change. Trying to time the extra money won’t make any difference, since the actual amount of interest taken out will remain the same – in other words, if you send in an extra $50, the extra $50 will be put toward principle regardless of which month you send it.

Question: Does anyone know how to create an amortization schedule on excel spreadsheet to keep track of car payments?

Answer: When you’re in Excel, click on Help and select Microsoft Office Online. Search for ‘loan amortization’ and you’ll see some templates to chose from (including one w/extra payments)

Question: Will my insurance go down when I pay off my car?
Right now I’m paying $70/month for full coverage on my car. I’m still paying for the car through the bank, the initial loan was for $11000, I have $4k left but will be paying it off in full when I get income tax in April (taking a year off my amortization).

Answer: Your insurance rate will not change when you remove your leinholder. Insurance companies list them on your policy so they get a copy of the policy and get notified that you have insurance. There is no charge for that service.

However, after your car is paid off you can change the coverage that will lower your premium such as take higher deductibles on the comprehensive and collision. At $70 a month (that’s pretty good if your in Los Angeles) I wouldn’t change anything.

Question: Calculating car interest v. home interest. It does not seem fair.?
If you finance a car loan at 6% apr for 5 yrs (60mos) for $35k it comes to about $676.65/mo. Banks use what is called simple interest (I think that is the term).

If one finances a home or land at %6 apr for $35k for 5yrs the bank uses a different calculation (just because it’s a home) called, I believe, amortization. The monthly pymt would be about $676.65 as well.

So why do banks use a longer term? What is the reason for the calculation if a person can pay that much per month for 5yrs and get a car or home. It’s no more a prob for the buyer. The calculation (math formula) is just different.

Answer: Amoritization periods are usually based upon the ‘life’ of the asset & it’s scheduled depreciation value.

For instance, a computer or electronic device (if not placed on the in-store credit card) usually has a 2-3 year payment schedule to own.

Although cars don’t die after just 5 years, I’m driving a ‘93, the resale value changes drastically. To make up for this, the amoritization term is less.

With a home mortgage, you can always choose to pay more, or even take a shorter repayment term. I’ve never heard of a 5 year am period, but it’s probably out there. There are definitely 10 year mortgage.

Question: Do I have a Rule of 78 loan?
My wife and I got a used car last November. It was $16,500, over 4 years our payments come out to $445 with warranty and what not. Both of our credits were not that great, so we did get higher interest. We are looking at selling the car private party for $14k-$15k.

Here is the issue though. All loan amortization charts I have seen or have made say our payoff is approximately $14-$15k. However, the place we got the loan says it is $18,500 for the payoff amount. Why would that be? The only thing I have run across is the Rule of 78 situation. The thing is we live in Oregon where it says that is outlawed.

Answer: You’ll have to ask the bank how it’s possible that you owe more than when you originally borrowed the money. Logically the only way this should happen is if you missed one or more payments, were late, bounced checks…and the fees were added to the end of the loan.

Think about it, if you owe 39 more payments of $445, the payoff can’t be more than that. (39* 445 = $17,355.) That’s true even if it is a rule-of-78 loan.

Alas, in the US, rule-of-78 loans still exist for car loans. Only about 17 of our 50 states outlawed them as bait-and-switch on car loans that are less than 5 years.

Question: How can I calculate my car monthly payment – at the dealership?
Where can I find a amortization chart, or a formula for my calculator to take to the dealership if I have to use their financing?

Answer: Amount of the car, meaning less your down payment.
Divide by terms, add interest, equals your monthly.