Category Archives: Loan News

Decrease in Car Buying Among Youth

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The economic downturn hit everyone hard, the car industry was not recession-proof. The subject has been talked about at length, mainly due to the turn around that has been happening lately with the resurgence of sales after the bailout. During those terrible times, Edmunds estimates that about 11 million vehicle sales were lost. The times may have gotten better, but of that 11 million that delayed their purchase, 4 million still haven’t gotten to buying a car.

Autonetfinancial.com shows that the age group that is leading to a sales slump is the younger buyers. New car purchases by 18-34 year-old has gone down by 30 percent in the last five years. A prediction for this is that this age group is out of the market because they are moving to bigger cities where having a car is usually a determent.

It’s been a tough question that many in the industry have pondered, how do you get the youngest buyers into the dealerships? It’s not like there isn’t already enough of financial problems that the new generation have to deal with, with unemployment still high and college tuition still increasing. That doesn’t even bring up the fact that new buyers are usually having credit problems from lack of experience.

If you’re one of the people that I just described, but need yourself a car, we here at Bayside Chrysler Jeep Dodge aim to help you. Have bad credit? Read our previous article for advice. Come on into the dealership and we’ll give you a hand in getting the car you want. Like our Facebook page and follow us on Twitter for more tips for the prospective car-buyer.

Should You Consider a Down Payment?

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If you’re someone looking to purchase a vehicle and are suffering from poor credit, then there’s a term you maybe familiar with. The term down payment is very different depending on who is looking at it. For most people in the position of needing a car loan, it can be seen as quite evil. There’s a problem with this logic, as Auto Credit Express is showing in a new blog, that putting money down can be quite helpful in the long run.

Lenders that deal with people that are having credit problems need a down payment in either the form of money or real trade equity. The reasoning behind this is that having a down payment is a way to up the chance that the borrower will make their payments on time and in a regular manner. If there’s no money invested in a vehicle, lenders can lose a lot of money if the borrow walks away from a loan. If someone is willing to come up with 10% of the money, it’s a good bet that they mean to keep making payments.

So what are those advantages that were brought up earlier to having a down payment on a vehicle? One of them is that the larger the down payment is, the lower the monthly payment will be. It may also shorten the length of the loan. That means that you’ll have the chance to trade out of a car sooner. There’s also the possibility of getting the loan interest down.

If you have poor credit but are still in need of a car, then you may want to consider having a down payment. The way it can help reduce cost overall maybe worth the extra trouble up front. Fill out an online application and see how Bayside Chrysler Jeep Dodge can work with you to get you a vehicle. You can view our new and pre-owned inventory online. Like us on Facebook and follow us on Twitter for more auto finance information.

Credit Tips for College Students

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Fall is finally upon us and that means students are getting ready to head back to school for the year. For a college student, having the means to travel has always been important. It’s also a lesson in the importance of a credit score so that you can get a good car loan. Getting yourself a credit history can be very difficult according to The Christian Science Monitor. Lenders tend to be very cautious with new applicants. For those applying the first time, they have some tips to stay ahead of the curve.

The first tip is to start slowly. That means to not go crazy on applying for credit. An influx of too many applications can seem like to a lender that you’re too desperate for credit. It can really have a negative impact on your credit score.

Next is having a co-signer. A parent or a close relative can really give you a leg up on getting yourself a great rate. Be careful with this privilege however, because any that can happen on your end, such as missing payments, can come back and hurt the person who helped. Make sure you know what you’re getting into so that you don’t damage your own and your parent’s credit score.

The next two tips go hand in hand. You’ll want three lines of credit. In order for your file to be considered something other than too thin, you need at least three lines of credit. That being said, variety is also important. The algorithms that create your credit score like to see a difference in the kinds of accounts that you have. What that means is that credit cards are not the one-stop-shop of upping your credit score. Other things, such as a car loan, can also help.

Getting a head start on establishing a credit history goes a long way in life. It doesn’t take long for anyone once they really get started on their own to see how important that number is. Using these tips, you can be prepared and when the time comes to purchase your vehicle, you get the best deal you can get.

Stop by Bayside Chrysler Jeep Dodge to finance a vehicle with us. We’re looking to help people with bad credit get themselves into the car they need. Like us on Facebook and follow us on Twitter for more credit tips.

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