Friday, February 18, 2011

Car Loans

Car loans can be very tricky with dealers having various offers in terms of financing. I will break down a couple options you can get when purchasing a car.

0% Financing
This is a payment plan with no interest on the principal. The downside to this is the sticker price may be higher than what it would be with a 3% interest rate. On paper it sounds like a good deal, but dealers may just increase the price of the car so that it would be no different than paying a low price with a minimal interest rate.

$X Credit with higher interest rate
Don't immediately write off a high interest rate combined with a large cash credit at signing. This ends up lowering the principal on the loan, if combined with the higher interest rate this could even end up being lower than a 0% loan.

$X Credit with lower interest rate
The dealer may attempt to give you a smaller credit at signing combined with a lower interest rate. Again with the other options you may be able to save money with this deal depending on how low the interest rate is in comparison to how much credit you receive at signing.

Cash Purchase - Bank Loan
Another option, depending on how good of a credit and bank history you have. If you can negotiate a low enough cash price and are able to get a loan from your bank this may be the cheapest option. Again it varies on what interest rate you get and low of a cash price you can get.

Loan Length
Dealers will also try and modify the loan length. Typically the longer the loan the more interest you will be paying. Once again you will have to evaluate based on the principal and interest rate.

Get the best deal
When you go to the dealership to get your car get the dealer to give you multiple options. The options should all include varying principals, down payments, interest rates, loan terms and cash credits. Use the calculator on the right side of the blog to type in the variables and see what will give you the lowest monthly payments.
Posted by at
Labels: , , , , ,

68 comments:

  1. AWLBlogsFebruary 18, 2011 at 11:26 AM

    Need something like this just tured 18 and got into all about loans so i can buy a car thx ;)

    ReplyDelete
  2. taxhelpmanFebruary 18, 2011 at 6:38 PM

    Don't be surprised when you find they lied to you about small things like lowering the interest rate or monthly payment by half a percent if you do direct debit or something similar.

    ReplyDelete
  3. LiveTheBossFebruary 18, 2011 at 7:49 PM

    I would advise against getting a car loan. Find a POS car that runs, put down the $1K or whatever it takes to buy it and roll out. No need to spend 30K on a car.

    ReplyDelete
  4. Every DayFebruary 19, 2011 at 10:37 AM

    thanks for the tips. Won't be buying a car anytime soon but I'll keep this handy.

    ReplyDelete
  5. lifehaxFebruary 19, 2011 at 10:38 AM

    Hum, so , what is mainly the best loan type?

    ReplyDelete
  6. EgzFebruary 19, 2011 at 12:07 PM

    I don't really get this stuff.

    ReplyDelete
  7. D22 ZoneFebruary 19, 2011 at 12:33 PM

    I always stay clear of loans... being a student its a bad path to take! Thanks for sharing the tips though!

    ReplyDelete
  8. College KidFebruary 19, 2011 at 12:39 PM

    Will be using your tips in the future

    ReplyDelete
  9. wolvzFebruary 19, 2011 at 12:45 PM

    actually i'm thinking about buying a car in the next weeks. thanks for the tips. they've really helped. :)

    ReplyDelete
  10. CharlesFebruary 19, 2011 at 1:41 PM

    if only my credit wasnt shite.

    ReplyDelete
  11. JoshFebruary 19, 2011 at 2:17 PM

    This is fantastic information. Thanks for putting it out there.

    ReplyDelete
  12. Zaphod BeeblebroxFebruary 19, 2011 at 3:20 PM

    Thanks for the info!

    ReplyDelete
  13. edFebruary 19, 2011 at 5:07 PM

    you should do a post on college loans

    ReplyDelete
  14. D.B.February 19, 2011 at 5:51 PM

    thanks for the tip. i was looking to buy a car myself so this comes rly nice

    ReplyDelete
  15. The GovernorFebruary 20, 2011 at 3:15 PM

    very helpful, imma need a student loan soon.

    ReplyDelete
  16. afrodude50February 20, 2011 at 3:44 PM

    This comment has been removed by the author.

    ReplyDelete
  17. ShockwaveFebruary 20, 2011 at 4:10 PM

    This is a really unique blog, its gonna come in handy soon with me moving out.

    ReplyDelete
  18. AnonymousFebruary 21, 2011 at 5:27 AM

    Good info here. I used to be in the financial field, and loans are tricky for most people. It FREAKS them out when they see how much interest they are going to pay over the life of the loan.

    New Follower!

    ReplyDelete
  19. SportsGuyBrandonFebruary 21, 2011 at 1:38 PM

    Great source of information.

    ReplyDelete
  20. HillDogFebruary 21, 2011 at 9:37 PM

    This soo helpful. When I get a car loan, I will definitely heed this information.

    ReplyDelete
  21. FilmAdviserFebruary 22, 2011 at 10:58 AM

    Car loan played a bad trick with me when my car was hit. The insurance company refused to pay me directly and transferred the money to bank instead.

    ReplyDelete
  22. sfxworksFebruary 22, 2011 at 6:30 PM

    Cars?
    I just take
    the tram

    ReplyDelete
  23. The Awesome AlienFebruary 22, 2011 at 7:00 PM

    very useful info thank you following this

    ReplyDelete
  24. EbRobertsFebruary 23, 2011 at 6:50 PM

    Really enjoyed the information on the loans.

    ReplyDelete
  25. UnknownFebruary 24, 2011 at 12:55 AM

    awesome infos

    ReplyDelete
  26. Wulf13February 24, 2011 at 10:23 AM

    Thanks for the info! Need to think about getting my own vehicle and a loan seems nice at the moment. Thanks for the tips!

    ReplyDelete
  27. UrbanPirateFebruary 24, 2011 at 10:28 AM

    Wow... never knew this about loans. Thanks :D

    ReplyDelete
  28. AnonymousFebruary 24, 2011 at 12:39 PM

    Hope I can get a loan when the time comes.

    ReplyDelete
  29. Dj DeKuFebruary 24, 2011 at 3:54 PM

    Thanks for the information.

    ReplyDelete
  30. NateFebruary 26, 2011 at 8:09 AM

    Wow. This is exceptionally helpful. Thank you!

    ReplyDelete
  31. husarFebruary 27, 2011 at 4:32 PM

    good to know, nice post man

    + followed:)

    ReplyDelete
  32. lennoxmsuFebruary 28, 2011 at 11:13 AM

    Great Post, cant wait for more!

    ReplyDelete
  33. AnonymousFebruary 28, 2011 at 7:47 PM

    the helped me sooo much. thanks a lot!

    ReplyDelete
  34. kelly slaterMarch 1, 2011 at 3:21 PM

    nice info, following and supporting!

    ReplyDelete
  35. Give EverythingMarch 1, 2011 at 5:44 PM

    im not from the US so i this loans are not usefull to me, but still i will support you ;)

    ReplyDelete
  36. Kyle ShankinMarch 2, 2011 at 8:34 AM

    Excellent! I always confuse the different terms and whatnot. Great reference thank you!

    ReplyDelete
  37. RabidmooseMarch 5, 2011 at 6:40 PM

    Very useful info! Following you for more.

    ReplyDelete
  38. My loansMarch 9, 2011 at 12:49 PM

    good advice, followed.

    ReplyDelete
  39. YellowNiceTechnoMarch 10, 2011 at 2:23 AM

    who would loan a car..

    ReplyDelete
  40. AnonymousMarch 14, 2011 at 10:18 AM

    Outstanding info - will be following! If u care 2 check out my blog on Car Repair tips, I'll be sure and follow you!

    ReplyDelete
  41. pokerbloggerMarch 16, 2011 at 8:11 AM

    this helps me alot!

    ReplyDelete
  42. LigerLilyMarch 19, 2011 at 8:02 AM

    thanks for the tips

    http://turqoisemoon.blogspot.com/

    ReplyDelete
  43. John A.S.March 24, 2011 at 7:44 AM

    good text, interesting read :)

    ReplyDelete
  44. T. Roger ThomasMarch 24, 2011 at 10:10 PM

    Don't get into buying things on credit- if you can't afford it- don't buy it.

    ReplyDelete
  45. allaboutMarch 27, 2011 at 1:50 AM

    great info.

    ReplyDelete
  46. KevingsMarch 27, 2011 at 5:07 AM

    I try not to loan at all. Its way better, and you get more value for your money if youre able to pay cash straight up. But it was very informative though :)

    ReplyDelete
  47. hwidmanMarch 30, 2011 at 10:10 PM

    loans, cant live with them, can live without them. Coming from a college student :)

    following

    hazdbot.blogspot.com

    ReplyDelete
  48. Blog HuntMarch 30, 2011 at 10:52 PM

    Thanks for the info!

    ReplyDelete
  49. The Anything PlaceMarch 31, 2011 at 4:29 AM

    this is very good car loan tips

    ReplyDelete
  50. john178March 31, 2011 at 5:51 PM

    laerned a lot! thanks

    ReplyDelete
  51. i.MoApril 1, 2011 at 5:49 AM

    thanks for these tips.
    following

    incredible-mo.blogspot.com

    ReplyDelete
  52. taioApril 1, 2011 at 10:44 AM

    interesant

    ReplyDelete
  53. The Old MasterApril 3, 2011 at 7:13 AM

    That's truly interesting. You got some nice info going there.

    ReplyDelete
  54. ­­ wangApril 14, 2011 at 10:38 PM

    lol capitalism


    +followed, hit me back up
    http://sextynine.blogspot.com

    ReplyDelete
  55. BoertjieApril 24, 2011 at 1:35 AM

    Cool site will help me alot in the future..Following

    ReplyDelete
  56. AnonymousMay 7, 2011 at 2:03 AM

    Be very very very cautious about loans. Life experience :/

    ReplyDelete
  57. ThirtySevenMay 9, 2011 at 10:31 PM

    People worrying about loans makes me glad I'm spoiled and got a car that was already paid for. =)

    ReplyDelete
  58. No LifeMay 16, 2011 at 1:56 PM

    Wow, just good information! Thank you so much!

    www.blognolife.blogspot.com

    ReplyDelete
  59. PrimitiveMay 22, 2011 at 8:04 PM

    Now this is a good informative blog =)

    ReplyDelete
  60. BCI: Android AppsJune 1, 2011 at 7:30 PM

    loans are so crqzy
    Book of Shadows

    ReplyDelete
  61. EphedrineJuly 5, 2011 at 3:58 AM

    buy your cars used off craiglist, skip sketchy car dealers.

    ReplyDelete
  62. Sweet LilySeptember 4, 2011 at 7:47 AM

    Nice post! Awesome!

    ReplyDelete
  63. Matthew PrindivilleSeptember 6, 2011 at 11:59 AM

    Just got denied my motorcycle loan, feels bad man. +F

    ReplyDelete
  64. SamanthaSeptember 16, 2011 at 11:34 AM

    u r doin gud job..gr8 blog

    ReplyDelete
  65. The Thought HubDecember 28, 2011 at 5:38 PM

    now follwing, great post.

    visit my blog if you want, thanks

    ReplyDelete
  66. BragonDornDecember 28, 2011 at 6:44 PM

    i was going to get a el camino next tues but i may wait and think it through for awhile.

    ReplyDelete
  67. Deon MurphyDecember 31, 2011 at 1:36 PM

    Following. Check me out:
    tbtmyhtbtm.blogspot.com

    ReplyDelete
  68. AnonymousApril 9, 2020 at 8:22 AM

    All thanks to Elegant loan firm for helping me secure a of $1,000,000.00 USD to establish my Foodstuff supermarket business in different places. I have been looking for a financial help for the past four years. But now, am completely stressed free all the help of the loan officer Mr Russ Harry. So, I will advise any person who seek for funds to improve his or her business to contact this great firm for help, and it is real and tested. You can reach them through- Email --Elegantloanfirm@Hotmail.com-  or Whats-app +393511617486.

    ReplyDelete

Subscribe to: Post Comments (Atom)