Best New Auto Loan Rates

GETTING THE BEST NEW CAR LOAN INTEREST RATES

Are you looking achieve a new car loan from a dealership? The information
featured below will educate you so that you will be able to achieve the lowest
new auto loan rates possible, even if you have bad credit or no credit!

Order a copy of your credit report to ensure accuracy and up-to-date
information!

It is common practice for dealers to send your credit information to
multiple banks and lenders when looking to assist you secure financing for your
new car. Whether or not you achieve approval, as well as the loan amount,
interest rates and terms of your auto loan will be determined by your credit
history. Therefore, it is good practice for you to obtain a copy of your credit
profile prior to applying for a car loan. A quick credit check will help
disclose any negative marks as well as influencing errors and/or misinformation
on your credit report. Any errors listed will need to be disputed immediately.
If information is not up-to-date, you will need to contact your creditors and
make sure that they report your current credit history to all three major
bureaus. If you have any negative marks on your report, you should research what
you can do to improve your credit score.

Dealers mark-up auto loan rates!

Dealers send banks millions of dollars in business every year. As a result,
the banks will provide the dealers with low interest rate loan package, also
offering the dealers a ‘buy rate’ for your loan. This means that the bank will
want a minimum rate for your loan. Any higher amount that is obtained will be
given as compensation to the dealer. For example, suppose the bank is willing to
provide a car loan rate of 8%. The dealer in turn will offer you the same
financing package at 9%. As a result of the mark-up, the dealer is going to make
1% from your loan. Seems like a shady practice. Unfortunately, this is a very
common occurrence.

How will I know that I am getting the best rates for my auto loan?

The smartest, most important thing to do before you sign that dotted line is
to do research. Shop around interest rates with some major banks and online
providers. A good idea would be to look for an online auto loan calculator and
crunch some numbers (various loan terms, down payments and interest rates) so
that you can pre-determine what you can anticipate to pay for your financing.

** Also, know what kind of car you want and the specific features you are
interested in. Check out Kelly Blue Book, KBB.org, for new car pricing. Doing
this type of research will allow you to know what to expect in terms of price
for your new car, helping you in your negotiating and ultimately getting you the
best deal.

In conclusion…

Car loan rates are at an all time low. Familiarizing yourself with the
information above will help you achieve the most optimal rates for your
financing!

What Are Some Risks and Issues Around My Company Setting Up a Customer Finance-Leasing Program?

Many firms benefit significantly from either setting up on their own or partnering with a third part to set up a customer financing program for their products. Key benefits are increased sales, cash flow, customer loyalty, etc.But are there also some risks for the company to be aware of also – Of course there are and let’s look at some of those risks.We would also point out that these risks are in fact the same ones taken on by independent leasing firms also.Foremost from a risk perspective is that fact the customer financing program will be viewed by the customers as the one and same as your company. Therefore customer service and financing ability are in fact now part of your firm’s reputation.Companies may also find that the borrowing costs to set up a program are in fact higher than their normal business operating costs. Naturally the method in which the finance division is set up also affects the debt levels of your company. No business wants to fail because it took on higher debt in an effort to in fact help their customers!On a long term basis company lenders might view your firms foray into customer financing as an additional risk factor, which they might try to compensate on by imposing restrictions such as additional covenants, requests for more equity into the firm, etc. The bottom line is simply that setting up a customer financing scenario may in fact affect your own firm’s ability to borrow.If your firm is larger then analysts and firms looking at your firm might in fact be raising issues and perceptions around which business you are actually in, i.e. your products, or the financing of those products. Business owners and financial managers will always want to ensure that ultimately they are sticking to their core business model and philosophies. If your firm becomes too enamored by financing you possibly run the risk of total business failure. There are numerous cases in financial history where firms collapsed because of the shenanigans of the finance division.We have heard the term in business ‘sticking to our knitting’, which of course simply means that management needs unique skills to run a business, and those skills are different in financing. Owners and managers related to the customer financing division must have strong skills in financial sales, structuring, and credit… Naturally we are also inferring that additional skilled personnel ultimately must be hired.No company every wants to look back in hindsight and say that if failed or stumbled because efforts and funds went into financing, as opposed to r&d, marketing, staff, and product growth. Do not let a customer finance program become an obstacle to your ultimate business successBusiness owners should ensure that there is good communications between the main operating company and the customer financing division – clear goals and philosophies should be set out re the function of such a customer finance program.In summary the benefits of offering financing to your customer are very obvious, and proven true by some of the largest and most successful companies in the world – but all you have to do is to do it right! Ensure your firm is aware of the risks and challenges and monitor your customer financing program on an ongoing basis to ensure you are not straying from your core business model.