Loan vs. Lease

Watch this youtube video and decide your option.

Why We Should Thank Technology

Personally, I am a big fan of technology and so, keep a close tab on all the recent developments in the technological world. Having said that, I believe there are few things that have shaped our lives more than the internet. Having internet at my disposal, I for one feel much empowered, as it allows me to go beyond my limits and learn something new every single day. Through it, I define my own boundaries. However, amongst several different ways in which the internet has made our lives easier, another thing it has blessed us with is eliminating the need for physical presence in various situations. For instance, without the internet, I would have to go pay my rent personally. With the internet, I can just transfer money online. Similarly, without the internet, rent collectors would also have to endure the hassle of collecting rent from all the tenants. With the internet, they can just issue a deadline and watch the money being transferred in their bank accounts. This is how much we owe to this remarkable piece of invention.

However, I must emphasize here that the possibilities, in which internet comes to our aid, are way too many. In fact, we may not even realize how this invention directly or indirectly helps shape our lives. One of these many ways involve allowing us to put in different loan applications online. So if you need a car loan, it is not necessary for you to get up and visit the potential lender. All you have to do is go online and submit an online application. These applications are fairly easily to fill, and at the same time, save a considerable amount of time. I saw my dad fill in a loan application, and turn towards me and say ‘I wonder where we would be, if we had this blessing in our time.’ This made me realize how much the technology of today has affected our lives, and at the same time, made us accustomed to this ease.

Coming back to the gist of this post, having a car loan today is easier than ever. All you have to do is go online and submit a simple application. The lender would then contract you with details and then the rest of the process has virtually no hitches. The last step involves you choosing the car of your dream. All of this, by sitting in your room. To answer the question, this is why we should thank technology.

Cheapest Way to Buy a Car

I thought this article might be useful for you people. Here is the link:
http://uk.finance.yahoo.com/news/whats-the-cheapest-way-to-buy-a-car-101650873.html

3 ThingsTo Know About Car Loans

Being closely associated with the field, I have seen people get lost in all the convoluted and unnecessary details about car loans. Some of it is important, while most of it is pure garbage. In such heap of hullabaloo, there are few who actually understand the important information about car loans. Therefore, it is time I put forth three most important things to keep in mind.

Firstly, you must keep your expectations realistic. Okay so the thing is that these loan providers will assess your financial capacity, before they give you a quote. The reason behind doing so is the credit rating factor. Providers in general take into account how much debt you can afford to service, before getting in bed with you. Now rewind back a line and see how I said ‘they give you a quote.’ This means that in most cases, it is they who decide how much loan to allow you. Therefore, if you are thinking about getting an Audi, while you can only afford to service a Honda, disappointment awaits you. So, save yourself the let down and keep your expectationslevelheaded. Unless of course you believe in miracles.

Secondly, you must know that the type of loan you will eventually resort to would depend on your credit ratings. Like all the loans you will come across, the lenders acquaint themselves with the risk associated with lending the money. If the risk is above what they consider a minimum requirement, the application is rejected. I have personally experienced this at a point in time, which led me consider alternatives. Rejection meant that I had to look towards loans which did not take into account my credit rating. This inevitably led me to bad credit car loans and other different guaranteed car loans. However, if you are not plagued with a situation like mine, you can do with regular car loans.

The last point is related to the second one. In the last point, I would like to answer a very frequently asked question that I have come across – ‘how much do these loans cost?’ Coming back to the credit rating factor, having a poor rating means that you are looked upon as high risk. If you somehow clear the screening and get the loan approved, this rating translates into higher interest rate payments. In contrast, as I have mentioned what happened to me, being rejected means turning towards ‘guaranteed loans,’ which for obvious reasons are an expensive alternative. Having talked quite a bit about credit ratings, I must tell you that factors like the term of the loan, the type of car chosen, and other such factors also contribute towards the ultimate cost of your loan.I have got this info from PeoplesCarLoans, you can also check this site out, it has lots of other useful info.

These three points should give you the essential supplementary information. There are two things you need to understand about car loans, beside the above mentioned information – the very basic understanding and lender specific information.

Apply for Car Finance - Video Review

Watch this video review, I found it informative.

Walking You Through The Entire Process Of Getting A Car Loan

Okay so I have talked about the very basics, and explained to you what a car loan is and how it works. Now having taken these baby steps, the next door for you to enter involves walking with me through the entire process. Here, I will not just acquaint you with the different steps, but also challenges you encounter and things to keep in mind throughout. Therefore, this is your ultimate guide to car loans in the UK.

The first step is to consider whether or not you actually need a car loan. Like for any other loan, if you can afford to buy your car outright without having to compromise your financial position, it is always better to do so. However, this is seldom true and if this is not the case, you certainly fall in the category that requires car loans. So, assess your financial capacity before moving forward.

Now if you have decided that you are better off with a car loan, the first thing you will encounter is a heap of different types of information, some of which will also be quite contradictory. The key here is to not get lost and this is what I intend on making sure here. Internet is a blessing we must all be grateful for, and you can utilize this tool for amassing as much information as you can. You can go online and acquaint yourself with all the deals you can get your hands on. If you are still unsure, you still have the option of resorting to professional advice, which would help you through the process. However, in the age of technology, internet is our ultimate tool for collecting information, and anything else is rarely needed. While you are at it, keep in mind your budget and other preferences.

Once you have all the facts on the table, you can move towards the application. The application has quite a few particulars, which must be filled with total honesty. This information is used in determining whether or not you deserve to be financed for a car, and at what cost. While these applications are available in hardcopies, technology has blessed us with yet another alternative – online applications. Therefore, if you are more comfortable doing it online, go ahead. Quite honestly I do not even know why they have hardcopies anymore, when you have a much better alternative in shape of these online applications. Anyhow, let’s move on.

Now before we proceed to the next step, make it a rule of thumb to always haggle. The logic behind doing so is that these companies are faced with immense competition, which creates ample room for you to haggle your way to much affordable prices. This competition is also responsible for seeing applications with bad credit ratings go through. I have personally found haggling very useful, and I am not much of a talker myself. If you are a good people’s person, its time you put it to use.

Having submitted your application, you are half way there. You have done you initial part and now you must wait to be contacted by the provider. In this waiting period, your application is processed and based on the data provided, the decision as to whether or not to approve your application is made. If your application is successful, you will be contacted by the provider with a quotation. Now do not make the mistake of forcing yourself towards the most expensive car that fits your quotation. If you have a maximum quotation of, say £10,000, it is entirely okay to buy a car that costs 6,000. In fact, the best way to go involves basing the decision on your financial capacity, since you must pay interest payments and loan repayments based on the amount of your loan. Therefore, consider this quotation a limit, not a ceiling you must touch.

After you receive a quotation, you can specify to the provider the car you want. If the car fits your quotation, the provider will directly pay the dealer the amount of the car, and next you know you will have the car in your garage.

Having gone through all the above mentioned steps, the only thing left for you to do is to ensure that you are not just meeting interest rate payments, but also loan repayments. If you are punctual with these payments, you will probably have no further hitches, and this where I conclude my guide.

From what I have given you, you will be able to get from the starting point to the point where you have the car keys in your hand. From this point on, you must take the steering wheel yourself and ensure that you are meeting all your obligations towards the loan. The ending point is where you repay the entire loan and get out of the debt. As a last piece of advice, do not get encumbered by the immense amount of choices and information to process. Take baby steps but ensure that you are headed in the right direction.

The Basic Understanding And Working Of Car Loans

This is my first post regarding car loans and therefore, before I proceed towards talking about topics that surround the basic theme of car loans, it is imperative that I first cover the very basics. Here, I am not making an assumption that you know what car loans are and how they work. All you need to be able to understand this post is basic human logic. Grab that and you’re ready to go. So, let’s get started.

 

Car loans are basically loans you take up to finance buying a car. Well, you probably knew that but I covered it anyway. May be some people did not know, but let’s not be judgmental. Once you submit your application, you are given a specific quota, within which you must stay. So say if I have a car loan approved for a car up to £10,000, I can choose a car that is worth £5,000 or even exactly £10,000, but I cannot opt for the one that is worth £14,000, regardless of how attractive it might look to me. However, unlike the normal loans you take up, you are not getting your money in your hands when you take up a car loan. Instead, after a car loan is approved, the money is directly paid to the dealer, which you select. After you have set your heart on a specific car, you let your lender know, who then pays the money directly to the car dealer. In the meanwhile, you go through the necessary paperwork, and after all is said and done, you keep up with interest payments on the loan, as well as the loan repayment itself. 

This is what a car loan is, and how it essentially works.