Tag Archives: pre-owned

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.

Auto Loans Increasing as Delinquency Decreases

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People are starting to get back to work as the economy continues the long road of recovery since the disaster of 2008. The auto industry has seen a similar bounce back of late with the increase of sales since their bankruptcy and bailout. To that end, it’s be easier and easier for those in the sub prime market to get loans. There’s a reason for that as Experian has noted a new trend among people with auto loans.

Experian is saying that consumers have paid their auto loan payment on time in the second quarter of 2012 compared to the same period of last year. This has also brought down the rate in the average delinquency rate in all lending organizations. To give proper numbers, Experian is showing that the 30-day delinquency rate was 2.52 percent in the second quarter of 2012 and that number was 2.59 percent last year. For people with a delinquency of 60-days , the number was .60 percent last year and is .59 this year.

Melinda Zabritski, director of automotive lending for Experian goes into more detail, “Consumers continue to do an excellent job of paying back their vehicle loans in a timely fashion, and that’s good news for everyone in the industry. Both 30 and 60 day delinquencies are at historic lows, and the percentage of money at risk has dropped as well. This gives lenders needed stability, which filters through the auto industry to consumers in the form of easier to obtain loans.”

That all means that if you’re someone looking for a car loan but think that your credit will stop you from getting a deal on a vehicle you want, think again. Stop on in to Bayside Chrysler Jeep Dodge and see how we can aid you. Go online to our website to view our full inventory of new and pre-owned cars. You can also give us a like on Facebook and follow us on Twitter for more information and industry news.

Image: FreeDigitalPhotos.net

Improve Your Auto Loan Terms in 4 Easy Steps

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Shopping around for an auto loan can be a trying experience, especially with a low credit score. It can seem impossible to find the car you want at rates and terms you can afford. Most people don’t know that they can improve their chances of getting a better rate, though, by following these 4 simple steps.

  1. Be Honest with Yourself: Take a look over your personal finances and ask yourself how much you can really afford to spend. Do you really need a new car, or are you better able to afford a good used car? If your finances are tight already, then a reliable vehicle that generally doesn’t need a lot of repairs is a smarter choice than something flashier (and pricier).
  2. Research Before Going Into a Dealership: When you go into a dealership, that dealership assumes that you are ready to test drive and buy. If you want to research model reviews, it is better to do so before going in. Otherwise, you could end up buying a car you didn’t really want or hem and haw over the pros and cons of a model and waste the salesperson’s time. It is always good to go into a sale certain that this is the car you want, but keep in mind that the dealership’s sales staff make money on commissions. Be considerate of that, and if you aren’t ready to buy, walk away and let that salesperson help another customer.
  3. Bring a Down Payment: Fox Business recommends having a 20 percent down payment for a new car and 10 percent for a used car. By having that down payment, it increases the chances of getting a better interest rate and lower monthly payments.
  4. Shoot For a Shorter Loan Length: The value of a car, especially a new car, depreciates fairly quickly, so it is better to go with a shorter loan length. Even if it means higher monthly payments, you will probably end up with a higher interest rate if you get a longer loan.

Are you shopping for an auto loan but running into problems because of your credit? Give Bayside Chrysler Jeep Dodge a chance to help you. You can see our online new and pre-owned inventory here, and be sure to like Bayside on Facebook and follow Bayside on Twitter to get the latest news from the auto industry.

Image: FreeDigitalPhotos.net