All about Business and Loans
Auto Loans
Avoid Car Dealer Lending Scams with Online Auto Loan Quotes
Jan 14th
Most car sales professionals are honest, hard-working people with a job to do. Unfortunately there are a few who fit the bill of the “stereotypical” car salesman and will do everything they can to sell you a car. If you apply for finance through the dealer, this just gives the car salesman another tool to use against you as leverage. Instead, walk onto the lot with online auto loan quotes in your hand and you may be surprised at the difference in how you are treated.
Credit Report Shenanigans
(No Ratings Yet)
Loading ...Beware the Credit Trap when Shopping Auto Loans Online
Jan 11th
There has been a lot of talk lately about the mortgage crisis in America. Is there a similar crisis looming in the car finance industry? Many analysts say yes.
The Danger of the Rollover Loan
One major source of problems is when people buy a new car before the old one is paid off. With some auto loans, online lenders may offer to roll over the balance on the old loan. In order to make the loan affordable it is extended longer than a normal loan, often to seven or more years.
Rolling over a loan is already an expensive choice. The remaining balance on the first loan will charge the borrower interest over a longer period and cost more money. More importantly though, since the loan is for more than the car is worth, the borrower is in an “upside-down” situation. In the event of financial setback, the buyer can’t sell the car to settle the debt.
This is made even worse when a couple of years later, the borrower decides to buy another new car, getting another rollover loan, falling deeper in debt, and making it harder to break the cycle.
(No Ratings Yet) Loading ...
Recent Comments