AutoFinanceAdvice.com

It’s your Money!!!

Don’t be indimidated when going into the dealership.  They try to make you feel like they are smarter than you and know what’s better for you.  They don’t!  They just want to make the most money off you as they can.  In the car business this is called, “knocking your head off”.

It’s you money, and you get to spend it the way YOU want.  If the deal doesn’t sound good or fit your budget…walk away!  That’s right…walk away.  The deal won’t get any better from here so take a week or so off and go to a different dealership.

Are you interested in buying a car?  Are you lost at where to start?

Don’t feel alone.  Most people don’t know how to go about buying a auto “smartly”.   Most go into a dealership uneducated and unexpecting.  Those are the people that the Dealerships and especially the Dealership Management do most of their banking on.  Meaning, those are the type of people they make the most money on.

Don’t, and I repeat, DON’T go into a auto dealership with out any knowledge on how to go about purchasing a auto.

Let me give you advise.

If you decide to buy the car and you want the dealership to help you finance it, you will be asked to fill out a credit application. Based on your credit score, an auto loan will be arranged through the dealership’s lending institution based on the negotiated price of the car and related expenses (sales tax, title and licensing fees). Loaning money is big business, and most auto manufacturers have their own companies to arrange car loans. For example, Nissan cars are often financed through Nissan Motor Acceptance Corp.

Once you know how scoring works.  You may want to take the next step by finding out what your FICO score is today, and what steps you could take to improve it.

You can get your FICO score through annualcreditreport.com, it’s free for one of the three reports per year.

Here are the three credit reporting bureaus:

TransUnion, 1.800.888.4213 www.transunion.com

Experian, 1.888.397.3742 www.experian.com

Equifax, 1.800.392-7816 www.equifax.com

• According to FICO’s Web site, FICO scores range from 300 to 850. The higher your score, the better your chances for getting optimum rates on your loan.

A credit score of 720 and above is considered excellent; those who score within this range have the easiest time obtaining loans, and get the best rates.

You’ve just learned that your request for an auto loan with XYZ Bank has been denied. The loan officer explains that the decision has to do with your credit score. XYZ lends only to prime borrowers; your credit score, she continues, places you squarely in subprime territory.

Subprime. You’re not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.

However, being deemed subprime doesn’t necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan (albeit from a different lender).

Simple Car Finance Calculations:

Before you jump onto a car lot you first need to figure out some things.  The first one is to figure out how much of a loan/financing will be needed for buying.  Do your own car finance calculations ahead of time.  Then, when you get to the dealership, your numbers should agree with theirs.

Numerous sites have created some powerful and flexible suites of calculators that perform the calculations you will need if auto financing is on your agenda.

I have over 5 years experience in Auto Financing, with over 8 years car sales experience.  Auto finance can be very frustrated if you are not prepared.  With my experience let me give you some advice to reduce your frustration.