Your Money: Car loans are cheap, but shop around

#cheap car loans

Your Money: Car loans are cheap, but shop around

Story Highlights

    Bargain car loan rates are hovering around 3% or so now You need a good credit score to snag one Some loans now go up to seven years


It’s hard to beat the thrill of jumping behind the wheel of a new car at the North American International Auto Show, especially if your clunker is already 9 or 10 years old.

But how exciting is a car loan? Just itching for another monthly payment? Yeah, right.

The hot news about car loans this year, though, is that rates are lower than last year — so shopping around for car loan could prove invigorating when you snag a real deal.

“We’ve never seen rates this low” in the surveys of banks and credit unions, said Greg McBride, senior financial analyst at .

Bargain car loan rates — both for used and new cars — are hovering around 3% or so now at banks and credit unions.

Plenty of carmakers are offering 0% and 1.9% financing on several models, too. But make sure to run the numbers on various online calculators to determine whether you’d be better off taking a cash-back rebate than 0% financing, if given a choice.

In mid-January, the average new car loan rate was 4.15% for a five-year new car loan at banks and credit unions surveyed by .

The average used car loan rate was 4.77% for a four-year used car loan, according to

“We’re in a prolonged low-rate environment, and I don’t think they’ve bottomed yet,” McBride said.

Another trend: Some lenders are offering new car loans that go beyond five years, say 72-months, and a few are rolling out 84-month car loans.

Comerica’s 3.99% rate, for example, applies to 60-month and 72-month car loans.

Melinda Zabritski, director of automotive credit for Experian, said some consumers with lower credit scores can qualify for a more expensive new car if they opt for a six-year loan instead of five years.

Some consumers with higher scores opt for seven-year car loans to buy luxury brands, she said.

“A lot of it is an effort to make some expensive vehicles a little more affordable on a month-to-month basis,” Zabritski said.

Be warned, though: Dragging out a car loan to six or seven years drives up total interest paid for a car; and a consumer risks owing more on the car than it’s worth when it comes time to sell.

Another warning: If you don’t shop around for a car loan rate, though, it’s easier to get taken for a ride on rates.

“We see greater disparity in auto loan rates than any other product,” McBride said.

Lenders often decide what kind of market share they want in the auto loan business and price their car loans accordingly. And yes, many realize that consumers don’t shop for car loans as diligently as they should.

Does that mean everyone gets a car loan at less than 5%? Absolutely not. Rates vary by credit history.

The Detroit-based Communicating Arts Credit Union had received an initial $1.5 million federal grant in November 2011 to develop a bailout program for people who have extremely high car loan rates.

As part of that program, the credit union had 34 auto bailouts that had original car loan rates in excess of 19%. One customer refinanced a rate of 25% to 3.25%.Other customers refinanced rates of nearly 25% to a range of 9.5% to 12.5%.

Going to 5% from 25% would drop the monthly payment to $188.71 from $293.51 on a five-year, $10,000 car loan.

Hank Hubbard, president and CEO of the Communicating Arts Credit Union, said many times shoppers don’t realize they have alternatives. Some old loans may have been made during the credit crunch.

We’ve swung from one extreme where anyone could get a car loan during the economic boom to another extreme where lenders were paranoid about making loans to creditworthy consumers during the financial meltdown.

Now, “Lenders are certainly making loans available,” Experian’s Zabritski said.

Typically, Toprak said, someone with a 620 credit score could be getting a rate of 8.9% or higher now; while someone with a 500 credit score could be offered 13.9% now.


What to Do About Auto Loans for People with Very Bad Credit

#car loans for people with bad credit

Do Car Loans for Very Bad Credit Scores Exist?

While a payday loan may seem like a good way to get cash when you need it to buy a car, there are better alternatives out there, even when you need very bad credit financing. One of these alternatives is car loans for people with bad credit from AutoNet Financial.

They are meant to appeal to people who need cash quickly and have no other way to get it. In order to qualify for this type of loan, you need a job and some type of income verification (your employer can’t be paying you under the table with cash. Typical loan amounts range from $100 to $2500, while the duration of the loan is usually 2 weeks. Interest rates are loosely regulated by the states for these amounts and average 25% per month (unlike a very bad credit car loan. payday loan interest is computed monthly, not yearly).

In addition to interest charges, the loan company usually assesses an origination fee. Many of the storefront locations these companies operate out of also offer check cashing services, pawn loans and car title loans.

Real Bad Credit Car Loans – Why They’re Better

Here is a typical payday loan scenario when you need a car loan. Let’s say you take out a $2500 payday loan to buy a car instead of choosing car loans for people with very low credit. You give the auto loan company your employment information and a copy of your last pay stub. You pay them the $15 origination fee and sign a document that says you will pay them $625 in interest (25% per month) plus the $2500 in principal in 2 weeks. If you don’t have the entire amount in 2 weeks, the loan company will allow you to roll over the loan for another 2 weeks, provided you pay them the interest amount. Most states will allow this type of rollover to occur at least four times.

What is the true cost to borrow this money? Well, let’s take a look. If you ended up rolling over the loan four times, for a total of 2 and a half months, it would look like this:

  1. $15.00 in origination fee plus
  2. $2500.00 in interest charges

This amounts to a total of $2515.00 in interest and charges to borrow $2500.00. This equates to an annual interest rate of over 100%. One other thing: if you don’t pay the principal back, the loan company can garnish your wages – which can be quite embarrassing, to say the least.

Very Poor Credit Auto Financing

A better alternative to payday loans are very bad credit car loans from buy here pay here dealerships. These loans feature:

  • At least a 36 month repayment term, repayable in installments;
  • No personal check mechanism or other unfair collateral. Your car is the collateral.
  • Full consideration of the borrower’s ability to repay the loan – the lender reviews your poor credit history for car loans and bases the loan amount on your ability to repay the loan

If you are considering a payday loan, you should also remember that they do little to help you get back on your feet – much less reestablish your credit history and raise your FICO score.

If you are not planning on buying a car with a payday loan and, instead, use it to pay off bills, you should know that a better alternative to payday lending is for you to deal directly with your debt. Many creditors will negotiate partial payments if a payment plan is in place. Working out a payment plan with creditors can allow the consumer to adjust billing to pay off bills over a longer period of time.

Some employers will allow paycheck advances to employees. Because this is a true advance, and not a loan, there is no interest and the advance is much cheaper than a payday loan.

Payday loans are a type of lending that is considered predatory and should be avoided by consumers at all costs. If you have had poor credit in the past and you need to reestablish your car credit and raise your credit score, you should consider car loans for people with low credit.

We have 20 years of practice in special finance and work directly with special finance car dealers and the leading automotive financing lenders throughout all of North America. The knowledge and expertise we have gained through years of bad credit car loan financing for people enables us to give you the best assistance possible for your personal situation.

Special Financing Auto Loans – Auto Credit Express

#car financing

Special Financing

Apply by Phone by calling: (855) 439-0814

Apply Online in just 3 minutes: Apply Now

It doesn’t matter how your credit went from good to bad. It could have been from missed payments, late payments, collection notices, loan defaults, repossession or bankruptcy. But unfortunately, it happens to a lot of people and it can make getting new lines of credit for things like a home or car loan difficult.

Special Financing

As more and more people are experiencing credit problems and looking to get into a new or used vehicle, special finance companies are becoming more popular. Car loans for people with bad credit are usually very difficult to obtain from a traditional lender such as a bank or credit union. Unlike tote the note dealers. these types of lenders make your credit score the most important factor in deciding whether or not to grant an auto loan approval because it determines your likelihood of default.

Special finance companies, or subprime dealerships, don’t care about your credit score. In fact, certain dealers won’t even run a credit check when you apply with them. These places are referred to as:

  • Buy Here Pay Here Dealers
  • In-House Financing Car Dealerships
  • Tote the Note Car Lots
  • We Finance Anyone Dealerships
  • Rent To Own Showrooms

All of these car lots work in a similar way. They believe that “your job is your credit,” meaning as long as you can prove that you have a steady income and residence, you will be approved for an auto loan.

There are also new and used car dealerships that don’t offer in-house financing. but will still accept your low scores. These dealerships use third party lenders that know the ins and outs of subprime auto financing and, they can get you approved. Typically, these loans have slightly higher interest rates and shorter loan terms due to the risk the lender is taking on you.

Benefits of Subprime Car Loans

If you have been struggling to find a subprime automotive lender that will work with you and approve you for a car loan with bad credit. your struggle is finally at an end. When you work with Auto Credit Express, our network of dealerships will find a way to approve you for the car credit you need. No more denials, just a smooth ride from here on out.

Auto financing is one of the best ways to rebuild your credit history to a prime level. Although your loan may come with a high interest rate, you will be improving your credit each month, since your payments will be reported to the three major credit bureaus:

  1. TransUnion
  2. Experian
  3. Equifax

With consistent, on-time payments being recorded to your credit report each month, your credit score will have improved drastically by the time you have the loan paid off. This will help you get a lower interest rate and monthly payment on your next vehicle purchase from a conventional lender.

Another big benefit to these auto loans is if you make your payments on time each month, then you may even be able to refinance somewhere down the line. Depending on how much your credit score has improved, you could be eligible for a lower interest rate, which will lower your monthly payments and save you money on interest charges. So, not only do special finance companies give you an opportunity for auto loan approval, they can help you save money over time.

“They really helped me get into my new car, something I didn’t think was possible.” Linda M. Trenton

Special Financing Articles

  • Get the Best Auto Financing in Dallas

Looking to get an auto loan in Dallas? Many dealerships will offer bad credit financing in the area, but they can be hard to get in touch with without our help.

  • BHPH Car Lots in Denver CO for People with Bad Credit
    Working with buy here pay here car lots in Denver, Colorado offers you more options when it comes to buying a new car specifically those with bad credit scores.
  • Get Approved with Sacramento Buy Here Pay Here Lots

    Sacramento residents that may have damaged credit think that they can not get approved for bad credit car loans, but you can through buy here pay here car lots.

  • Pre-Qualify Online

    Get pre-qualified online in about 3 minutes with little or no money down.

    Personal Loans

    #bad credit car loans

    What is a Personal Loan?

    A personal loan is an amount of money that an individual borrows to fund personal expenses.

    Many people use these funds to buy homes, finance cars or just pay bills. There are various criteria for borrowers to qualify, including credit scores and whether they put up any collateral.

    Lenders use risk-based pricing for the interest rates they charge: risky lending (like credit cards) may have an interest rate of almost 30% while less-risky ones like mortgages can be as low as 5%.

    Payback terms may be as short as a matter of months while others can last 10 years.

    A Short History

    People have been lending each other money for thousands of years. There’s a lot of literature — including historical, religious, and economic sources — that documents the role of borrowing and lending throughout history.

    Here are just a few historical examples:

    Ancient Middle East: Money in the form of food like olives, dates, and animals was lent out as early as 5000 BCE and ancient societies like the Mesopotamians, Hittites, Phoenicians, and Egyptians all have written accounts. Interest was generally fixed by the State.

    The Bible: The Hebrew Bible regulates interest taking and defines parameters of “ethical lending” (Deuteronomy 23:19, 20)

    Athens: Moneylenders funded maritime grain shipments in Ancient Greece through written agreements that used the ships and cargo as collateral.

    Different Types of Personal Loans

    Secured: A loan is secured when the borrower pledges some asset (e.g. a home or car) to the lender. The lender (usually a bank) uses this asset as collateral to help ensure repayment.

    Mortgages: These are used to finance the purchase of a home or apartment. If a borrower defaults on his mortgage payments, the lender can take ownership of the property.

    Car: When a borrower takes out a car loan, she pledges the car as collateral backing the amount borrowed.

    Home equity lines of credit (HELOCs): In addition to a primary mortgage, people can borrow off the equity in their homes. Instead of receiving a lump sum payment, like people do when they take out a mortgage, these (also known as a HELOC) are actually a line of credit that can be drawn from as needed.

    Unsecured: Unsecured loans don’t use collateral. Instead, they rely upon the quality of credit of the borrower. Without any pledged assets backing them up, lenders see these as riskier and typically charge higher interest rates than secured.

    Installment: Like the loans offered at, unsecured installment loans don’t require collateral and have a set, periodic repayment schedule. The term may be as short as just a few months or as long as 10 years.

    Student: There are a lot of private and public programs that encourage college education. Specialized lenders offer them to students — many with very long repayment terms — to pay for school.

    Credit card debt: Credit cards are issued with a line of credit that credit card holders can pay down every month. Credit cards are one of the easiest but most expensive ways to borrow money — with interest rates as high as 25.99%.

    Bank overdrafts: Some bank savings and checking accounts come with overdraft agreements. If you spend more than what’s available for withdraw from your account, the bank will lend you the difference, generally at a high interest rate and for a fee (according to CNN Money. the average overdraft fee in 2015 was $35).

    How Big is the Debt Market?

    If you are like the average American, you’re probably in debt. Between financing a college education, buying a house, and paying general living expenses, many people find themselves saddled with numerous debts .

    The Average Debt of an American

    Here’s the debt profile of the average American:

    • Average credit card debt: $15,422
    • Average mortgage debt: $149,782
    • Average student loan debt: $34,703

    America in Debt

    When you look at these numbers across the U.S. the overall size of the country’s debt is pretty staggering. In the U.S. there’s actually $11.31 trillion in debt. If you break it down, that comes out to:

    • $8.03 trillion in mortgages
    • $956 billion in student loans
    • $858 billion in credit card debt

    States With The Most Debt Per Capita

    State debt totaled more than $4 trillion during 2011. Connecticut led all states with the most debt per capita — its $99+ billion in debt works out to be something like $5,402 per person. The state with the lowest debt? Nebraska leads the nation in financial responsibility. It has $21 in debt for each of its residents.

    Reasons to Borrow

    There are lots of reasons to use a consumer loan like those found through CreditLoan — even if you have bad credit. Here are just a few reasons to apply:

    Bad credit score: It’s not always possible to qualify for other types of financing. You can borrow with a poor credit score.

    No need to put up collateral: Unsecured loans don’t require collateral, so you don’t need to pledge your car or house to borrow money.

    Easy, quick way to consolidate credit debt: Instead of paying astronomical interest rates on your credit card debt, people use these to pay off expensive debt and replace it with less-expensive debt.

    Cover medical expenses: Borrowing is a quick way to fund unexpected medical expenses.

    Paying tuition: Many people use these to fund part of their education.

    Starting a small business: Borrowing can be an effective source of capital to fund small businesses.

    What People are Actually Doing

    Personal Loans

    #car loan interest rates

    You have choices when borrowing money. Which loan is right for you?

    Borrow the amount you need all at once and pay it back with a predictable monthly payment. There’s no need to use your home or other assets to borrow money.

    More options

    Manage your application or loan

    1 The TD Express Loan is available for loan amounts between $2,000 and $15,000. The TD Express Loan is an Unsecured Personal Loan that receives expedited processing for customers who are looking for loan amounts up to $15,000 and have a credit score of 680 or above. No income verification is required, and funds may be available in as little as 2 days. TD Express can also be used for large purchases (furniture, vacation, weddings), home improvements, and almost any other large purchase. It cannot be used for Educational expenses. Loans subject to credit approval.

    Consolidate debt and move closer to financial stability with a TD Express Loan! With a no-hassle application, fixed interest rate and an expedited approval process, you could access the money you need in as little as two days. Learn more about getting a TD Express Loan. Say goodbye to those high-interest credit card balances by consolidating today with a TD Express Loan call 1-800-742-9360 or stop by your local TD Bank today.

    Loans – Fleet Financial

    #car loans for bad credit


    At Fleet Financial, we specialize in bad credit, no money down auto loans, and work with more than 25 banks and credit unions who offer some of the lowest interest rates.  This gives us the ability to offer some of the lowest auto loan interest rates in the industry.

    You can buy your car with no money down!  Our expert loan consultants will guide you every step of the way and you won’t have to spend hours researching the right loan, or fill out multiple applications.

    If you’re looking for an auto loan, want to reduce your interest rate, or you need some help due to some questionable credit history that has left you with some bad credit, we can help!  In most cases, you’ll have a decision in less than 24 hours .

    Our expert loan consultants look at your unique situation and find the best possible interest rates and terms to help you save money in your monthly budget and relieve your financial stress.  Our process is stress-free regardless of your credit situation.  We offer a single loan application on our bad credit no money down auto loans products.  This allows you to receive a quick decision without personal interviews or complicated contracts.

    Click on the links below to get more information!

    We also have several other products to help you secure your financial situation and set you up for success- click HERE  to learn more !

    Auto Loans


    Lease Buyout

    Company Car

    Fleet Financial specializes in assisting you with the purchase your company car or any fleet vehicle


    Loans for Bad Credit – Don t Let Your Low Credit Stop You!

    #car loans for bad credit

    Getting a Loan with Bad Credit at

    If you have ever been denied a loan in the past due to poor credit history or bankruptcy, has a special selection of lenders that specialize in providing bad credit loans. In other words, these are lenders who offer loans to individuals who are trying to rebuild their credit history.

    With a full online application process and instant approvals, you can obtain the funds you need – fast!

    Rebuild Your Credit, Rebuild Your Future

    Your credit score can impact many lending decisions, including purchase of large ticket items, such as a home or a car. Most of these purchases would involve a loan in some form (mortgage loan, car loan, etc.), which in turn would depend on your credit score.

    Unfortunately, many individuals do not check their credit scores regularly. Credit score (FICO Score ) is computed by all three major national credit bureaus Equifax, Experian, and Transunion. As a starting point, you can contact these three bureaus to obtain a copy of your credit report and evaluate your credit standing. By law, you are entitled to receive one free copy of your annual report every year.

    Once you have reviewed your credit report, contact the bureaus to correct any incorrect or missing information. Even with low credit credit, you can still benefit from our qualified network of reputable lenders who specialize in lending to individuals with bad credit. Once you are approved, you can start repairing your credit simply by repaying your loan on time.

    Even if you suffer from poor credit, you can still benefit from applying for a loan with, the process is simple and you can access in minutes our qualified network of lenders, who specialize in lending to borrowers with bad credit. As soon as you are approved, remember to make your payments on time and meet the lender s requirements. By repaying your loan on time, you can start rebuilding your credit. and thus regain financial stability.

    Loans For People With Bad Credit

    With the precipitous decline in these economic conditions, the ones hit the hardest today are individuals with bad credit. While most companies out there refuse to offer loans for people with bad credit situations. we, at, have a unique point of view that can help you get out of this situation.

    Our mission is to help all who visit our site and as a step toward this goal, we have developed a network of lenders who offer a loan for poor credit. The online application is very simple and takes just a few minutes of your time. So, what are you waiting for? Apply online now and get started today.

    Before Applying – A Few Helpful Tips

    • Never accept a loan offer without a thorough review of all terms.
    • Some lenders may be willing to lower the interest if you pledge some security in exchange for the loan. Such loans are also known as secured loans.
    • Interest rate is just one aspect. In addition to interest rates, look out for other terms as well.
    • Never hesitate to ask questions and ascertain details about the lenders procedures, payment terms, and protocols.

    Your Questions And Answers About Bad Credit Loans

    Car Finance – Compare The Best Deals on Cheap Car Loans

    #cars on finance

    Whatever you need a loan for, our Smart Search can help:


    Car finance deals

    Buying a new car whether it is a brand new model or a secondhand vehicle is exciting. Arranging the finance deal you need to cover the cost, however, is not.

    While many people spend hours comparing and contrasting different makes and models and then haggle hard to get the price down, the number of people who take the time to scour the market for the best car finance deal is much smaller as a result.

    However, paying over the odds to borrow the money to pay for a car can easily wipe out any reduction you manage to get on the price paid and make the vehicle cost a lot more overall.

    In fact, you could end up paying thousands of pounds over the odds, which is why it s worth understanding the various options and checking the interest rates and charges available.

    The different types of car finance

    Hire Purchase plans

    Hire purchase (HP) plans typically require you to put down an upfront deposit (though in some cases this can be your existing car) and commit to a set number of monthly instalments.

    Once all the instalments have been paid, the car which you can drive from the start of the agreement is yours.

    In the meantime, however, the HP provider has the right to repossess your vehicle at any point if you fall behind on your payments. But repossession is a detailed process not to mention one of last resort. For example, you will first be sent written notice to give you the chance to pay your arrears. And if you can t, a specific court order is required before your car can be taken back.

    It is also worth noting that you will not be able to privately sell the car until you have paid the final instalment (which may be larger than the others) and, while it’s worth looking at Voluntary Termination rights, ending the agreement early is likely to result in a penalty. You may be able to part-exchange your vehicle and refinance the existing loan, though this could incur higher interest rates and longer tie-ins.

    Personal loans

    A low-rate loan is almost always a much better way of paying for a car than a hire purchase agreement. What s more, you can sell a car to pay off a personal loan should you become unable to keep up with the repayments.

    However, the lowest personal loan rates are often limited to loans of between 7,500 and 15,000. So if you were thinking about borrowing 6,000, it may be worth increasing the amount to 7,500 to take advantage of the cheapest interest rates.

    If you need to borrow as larger amount, on the other hand, you may find that you can get a lower rate by using your home as security. Just remember that your property will be at risk if you default on the repayments.

    Either way, the MoneySupermarket loans channel is a great place to compare hundreds of deals from a wide range of lenders.

    0% credit cards

    For cheaper second-hand car purchases, a credit card offering 0% for an introductory period could prove the smartest choice.

    However, you will need to be disciplined enough to avoid incurring high interest rates at the end of the 0% period.

    It is also worth noting that these deals like the cheapest personal loans are limited to people with good credit scores.

    Leasing agreements

    Leasing agreements are basically long-term rental contracts with which you pay a monthly fee to use a car for an agreed period and number of miles.

    They are popular with those keen to drive a brand new car without paying for it upfront, and come in two main forms: Personal Contract Hire (PCH) and Personal Contract Purchase (PCP).

    With PCH, you can have a new car every few years without having to buy it at the end of the arrangement, while with PCP you buy the car at the end of the leasing agreement. Either way, remember to check the terms and conditions carefully for penalties and extra charges.

    Moneysupermarket is a credit broker this means we ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders though the size of that payment doesn t affect how we show products to customers.