Tag Archives: bad credit

Why a Shorter Loan Term is Better

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A dilemma that comes over any buyer is the idea of how long they should pay off an auto loan.  A longer loan can lead to smaller payments made off a longer time, making it less stressful on a slim budget.  On the flip side, a shorter loan period is harder on a monthly budget, but can free up a great deal of funds in a shorter amount of time by having the car fully paid off.

Edmunds looked at their data and saw that the average car loan term is about 5 and a half years now.  Some are even in excess of 7 years!  The reason many consumers are choosing a deal like this is because of how much money they can afford a month.  Even though a deal like that might be tempting, it is best to try and get a shorter car loan term.

A reason for this is because of interest rates.  Basically, the longer the payment, the more interest being paid.  Even though the monthly payment one is making a month on a shorter term may look cheaper, it is actually more money due to the adding up of the interest rate by the time the loan is finished.  You’d be very surprised to see just how much money that can be.

Another reason why such a longer term is a bad idea is because of the life of the vehicle.  These days, newer cars are seemingly announced every month.  There is a point in a car’s life where a driver wants to get a better deal on a newer car.  Those who opt for the shorter term can find themselves able to get into a newer vehicle while the longer term people are stuck.

If you need help with financing, contact us at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the right possible loan to suit your situation.  We love to say yes, you’re approved!  Like us on Facebook and follow us on Twitter to see our monthly news and special offers.

Down-Payments and How They Help

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One of the biggest problems that auto buyers are facing at the moment is aging vehicles. The average age of an American vehicle is currently 11.4 years. That is just insane. I’m not saying it doesn’t make sense though as the economy and the job market has been hard on people needing new cars. Many people have had to get by on what they could. This meant that they were holding onto a vehicle longer than they wanted to. Now that the market has improved and financing is easier than ever to obtain, many are finally in a position to get rid of their old vehicle in exchange for a new one.

However, there is another problem. Many people in this position also have bad credit. This is a major hit against someone needing that new vehicle and is no longer able to rely on the aging current one. So how can someone get a new vehicle while still being able to afford a monthly payment? One of the best courses of options is a down-payment.

A down-payment is a huge game-changer. Having any amount can go a long way towards decreasing a monthly payment and make purchasing a vehicle much easier on the pocketbook. Just $500 down towards a vehicle can provide benefits such as a lower interest rate or a lower monthly payment.

Check your finances and see if this is possible because it is definitely worth it. Down-payments are a positive thing to have on a vehicle so if you can manage it, do it.

Contact us at the Bayside Chrysler Jeep Dodge and we’ll walk you through the process. Be sure to like us on Facebook and to follow us on Twitter to see our monthly deals and holiday specials.

Tax Liens: How Unpaid Taxes Will Hurt Your Credit Score

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ID-10034355The deadline for filing 2013 Federal Tax returns is April 15, only a few days away, and while some people have already made plans for how they will spend their tax refund, others have yet to file their return or are still making payments.

Most advice for improving or maintaining a good credit score tends to focus on credit cards, auto loans, and mortgages, but a tax lien can hurt a credit score significantly. The IRS will report non-payment of taxes to the credit bureaus, and tax liens are listed on credit reports under public records.

Tax liens can drop a credit score by 100 points or more depending upon the amount owed and the number of tax liens listed on the report. Someone who hasn’t paid their taxes in several years will have their payments owed listed separately for each year, and it reflects poorly on the consumer if they apply for a loan, a credit card, or another form of credit.

How can you avoid a tax lien? First, work out an installment plan with the IRS and file for an extension if need be. They will look over your finances and determine how much you can afford to pay. Second, stick to your payment plan. Do not miss a payment. If something changes in your financial situation and you think you will miss a payment, contact the IRS immediately. By missing a payment, you are violating the goodwill extended by the IRS in working out a payment plan, and you will have more worries than a damaged credit score.

Do you have poor credit or no credit? Obtaining an auto loan can be tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook, follow us on Twitter, and subscribe to us on YouTube to see our monthly specials.

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