Buying a new car can be an exciting, exciting time. However, the issue of payment is everything. While most consumers do not have the money to pay upfront for a car, two other forms of payment are both quite popular. Leasing and financing are the two most common ways to get a new vehicle. But how do you know which method is right for you? What does each offer? Both methods offer advantages and disadvantages; Here is a quick collapse. Auto Leasing: On the surface, leasing a new car is the least expensive way to buy a car. In addition, you often find that their monthly payments are lower than if you financed your car. You can trade your car in easily at the end of the lease and get driving newer vehicles on a regular basis. This is a great choice for those who want a new set of wheels every two years. However, leasing a car is much like renting an apartment. We pay cash every month for something that will never own. Because you will never own the vehicle, leasing is actually more expensive than buying a vehicle. When you finance a car, your payments end at some point. Not so with car leasing. In addition, the lease has some other disadvantages. Extremely low annual mileage is one of them. If you go over the mileage specified in the lease, you should pay for it. Also, you must pay for any damage to the vehicle upon termination of the lease. This can quickly add up to a wallet-draining experience.
Financing Auto: Financing your car seems to be more expensive than leasing. However, it has important advantages. First, you really own your car, when the last payment. Second, you can drive your car as you want - it's yours! Finally, funded payments can be almost as low as a few rents, depending on your credit score, you advance and the company with which finance your car.
Auto Financing has some disadvantages as well. First, the guarantee will expire eventually. While leases are usually always covered by manufacturer's warranty, financing a vehicle is different. Your warranty will expire at some point (usually at the point where you need it most). Once that happens, any repairs will be out of pocket.
Second, funding may be more expensive in the beginning. While you can often reduce the amount of your monthly payments with smart purchases and contracts of employment, such payments could still be more expensive than a rental. However, the savings offset the initial cost when you pay off the car.
Both leasing and offer viable alternatives for those who are in need of a new car. The budget for your driving needs and personal wishes will dictate which method you choose at the end. Whatever method you choose, shop around for the best deal and you'll be much happier with the outcome.
SpecialFinanceLeads.com is the nation's premier source for special finance auto leads.
SpecialFinanceLeads.com trusted by thousands of delegates at the national level to meet and exceed their sales quotas. With advanced credit scoring, real-time lead delivery, efficient pricing and no startup costs, and thousands of satisfied customers, SpecialFinanceLeads.com is your best source for leads subprime car.
Thursday, December 1, 2011
What Is a Special Finance Auto Loan?
Perhaps you have seen "special finance auto loan online with the condition when you were shopping around for car loans. If you are not familiar with the term, what is that auto loans are available for people with poor or bad credit. The latest statistics tell us that sixty percent of all consumers have less than perfect credit. These consumers are usually not entitled to borrow money from traditional banks because banks monitor credit ratings and categorically deny people with bad credit loan money. People with bad credit is considered "special" cases, so therefore the term special auto loan financing was staged. Special loans for car finance is widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people have left behind their accounts and can not pay off their credit balances on time. This leads to a reduction of the score, making it impossible to buy a new car, as traditional banks refuse to lend money. However, thanks to a special auto loan financing the typical consumer who has money problems can drive the car of their dreams, as many lenders have evolved over the last two years offering to lend money to people 'at risk'. While a special auto loan financing may be convenient, it has its pitfalls. Interest rates for this type of car loan can range anywhere from 5 to 0.26 which is quite high and greater than that charged by traditional banks. because banks monitor credit ratings and categorically deny people with bad credit loan money. People with bad credit is considered "special" cases, so therefore the term special auto loan financing was staged.
Special loans for car finance is widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people have left behind their accounts and can not pay off their credit balances on time. This leads to a reduction of the score, making it impossible to buy a new car, as traditional banks refuse to lend money. However, thanks to a special auto loan financing the typical consumer who has money problems can drive the car of their dreams, as many lenders have evolved over the last two years offering to lend money to people 'at risk'.
While a special auto loan financing may be convenient, it has its pitfalls. Interest rates for this type of car loan can range anywhere from 5 to 26% which is quite high and greater than that charged by traditional banks. Another negative aspect associated with the standard special auto loan financing is the fact that the deposit required for this type of loan can range from 20 to 50%, which is also high.
Another thing that happens with the standard special auto loan financing is the fact some car dealers will inflate the prices of cars offered under this type of financing. This type of dishonest dealer will get a car worth $ 5000 and Jack is priced up to $ 10,000. The dealer will then require a deposit of 20% and finance the balance at 25%. The unfortunate buyer (who are often very desperate) will then be tied into a contract with a very high rate for a car worth only half what you paid. Moreover, very often this buyer will default on the loan which will destroy their credit even more. If the buyer is unable to make payments for special auto loan financing will be paid twice the amount that would pay for the same car bought from an honest dealer at a fair price.
For the consumer with very poor credit, a special finance auto loan may seem like a God-send. A person will be able to borrow the money needed to buy a car. However, you must pay a high rate of interest and should also make a large down payment. The lenders offering this type of loan, make a pile of money, lending money to people with poor and bad credit, and it seems to appear from nowhere, as more and more sites added to the Internet daily.
Special loans for car finance is widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people have left behind their accounts and can not pay off their credit balances on time. This leads to a reduction of the score, making it impossible to buy a new car, as traditional banks refuse to lend money. However, thanks to a special auto loan financing the typical consumer who has money problems can drive the car of their dreams, as many lenders have evolved over the last two years offering to lend money to people 'at risk'.
While a special auto loan financing may be convenient, it has its pitfalls. Interest rates for this type of car loan can range anywhere from 5 to 26% which is quite high and greater than that charged by traditional banks. Another negative aspect associated with the standard special auto loan financing is the fact that the deposit required for this type of loan can range from 20 to 50%, which is also high.
Another thing that happens with the standard special auto loan financing is the fact some car dealers will inflate the prices of cars offered under this type of financing. This type of dishonest dealer will get a car worth $ 5000 and Jack is priced up to $ 10,000. The dealer will then require a deposit of 20% and finance the balance at 25%. The unfortunate buyer (who are often very desperate) will then be tied into a contract with a very high rate for a car worth only half what you paid. Moreover, very often this buyer will default on the loan which will destroy their credit even more. If the buyer is unable to make payments for special auto loan financing will be paid twice the amount that would pay for the same car bought from an honest dealer at a fair price.
For the consumer with very poor credit, a special finance auto loan may seem like a God-send. A person will be able to borrow the money needed to buy a car. However, you must pay a high rate of interest and should also make a large down payment. The lenders offering this type of loan, make a pile of money, lending money to people with poor and bad credit, and it seems to appear from nowhere, as more and more sites added to the Internet daily.
Subscribe to:
Posts (Atom)