Do Car Finance Companies Know That Buyers Want a Reliable Car?

Are you planning to buy a decent and a reliable car? Many of US are searching to buy a new or used car but need car credit loan, most of them would find two different options, 1. Nationalize Bank and 2. Car Finance Company. Before you begin, you need to make sure that auto loan lender or a finance company that you choose is professional and experienced; and understands your car requirements. In the present economic scenario, owning a car loan isn’t a difficult task, and moreover with lots of auto loan providers and multiplicity of options, low interest auto loan rates aren’t something which seems far from reality. Further, there’s intense competition among the auto loan providers, and this automatically adds to the advantage of borrower. But amidst all the positive environment that is available to auto loan borrower, it becomes quite necessary to mention here that auto loan lenders will not provide low interest auto or car loans, until they are not satisfied with your credit score.

If you have a credit score of less than 640, then the conditions becomes sensitive for you, and in such a situation and lenders will think twice before passing your auto loan application for further processing. The most significant fact to know out here before the lender offers an auto loan is to check for credit score and also the past credit score rating. If you have impressive credit score, there’s nothing that needs to be done from your side, except filling the application and providing the proof of your credit report that will be attached with the loan application.

Car finance rates are variable, and this variability depends upon the kind of auto loan that you are going to apply. Again the question of low interest rates comes into the picture if you are searching for the lenders who can offer you the desired interest rates. This will help you to make a choice from the line of luxury cars rather than unwillingly settle for the basic car models. In general, the loan term for the auto loan can be settled between 6-months to 5-years. If you are going for used car loan, the loan term will be automatically reduced. Last, make sure that the new car loan that you hire is easy to repay.

Today due to many lenders in finance business the market of online car financing is highly viable. Individual will find wide range of financing options, but before you begin, consider all the auto financing options available to you. The most efficient way to avail the best auto financing options is to match the loan quote from multiple lenders. While comparing car loan quote be sure to look at the annual percentage rate (APR) and over-all cost of the entire loan. The whole cost includes amount borrowed, added to the deposit, interest paid and other charges.

Before you jump on to any deal it is suggested that you approach toward professional and experienced auto finance company that will understands your requirements and desire to own a decent car, and also help you with find low interest auto finance. A specialized auto finance company will compare your credit history report and offer you the affordable interest rates for the new or used vehicle financing you needs. This will make you a car owner, without you actually worrying about financial scruples.

Tips For Selecting Housing Finance Company

It is often said that buying a dream home requires huge expenditure for most of the investors. Some people spend a long period of time, garnering their savings to fulfil this dream, while others opt to take a loan (credit) to fulfill this dream.

Having done your self assessment about the repayment capacity, location of your dream home, amenities and other fancies that you would like your dream home to have. It’s time for some serious exercise of selecting your HFC.

Selecting a HFC requires extreme care and proper consideration, and therefore following the under-mentioned pointer will make this exercise easier. Past record of such institutions should be properly checked as it will be a long term relationship between you and institution. Ensure that the whole task does not end up becoming a whole day headache or nightmare for you, thus prudent steps while deciding upon the financer.

1. Rate of interest

This is where it all begins. Although the rate of interest offered by most HFCs is more or less the same on paper, some degree of bargaining in most cases, leads to a lowering of rates by as much as 0.25 to 0.50 percentage points. More so if your profile happens to match the requirement of the HFC. The lowering of interest rate has a significant impact over the long term although the difference is not so noticeable over the near term. For instance, a 0.50% interest rate ‘concession’ on an Rs 1,000, 000 loans over 20-year tenure will reduce your liability by upto Rs 72,000. But care needs to be taken to ensure that the difference is not being offset elsewhere by the HFC under the guise of other ‘charges’.

One must also be careful about teaser rate offer, as they are sometimes really teasing. They benefit you for a short-term – say couple of years (till the fixed interest rate tenure), but later as floating rate starts applying they dig a bigger hole on your wallet.

2. Calculation of the exact home loan amount

Here, HFCs differ in their calculation of the loan amount to be disbursed. Some HFCs calculate the amount to be disbursed on the basis of, say, the gross salary while some HFCs calculate it on the net salary. This might make a difference to individuals as the loan amount and the EMI will vary across HFCs. One needs to look into this and get a comparative analysis done across HFCs, to understand which HFC offers the best deal. Also one should check whether the HFC is offering pre-EMI and tranche based EMI repayment option. This will help one whilst taking loan for an under construction property, as this gives them an option to pay interest only on the portion of the loan disbursed or to choose the instalments they wish to pay, till the time the property is ready for possession.

3. After-sales service

And you thought after-sales service was synonymous only with consumer durables! No – it applies to practically everything, and so also applies to HFCs. In fact, it is very crucial while choosing an HFC. An HFC can differentiate itself with excellent after sales. Take the example of post-dated cheques (PDCs). It is general practice to give 36 PDCs during the time the loan is disbursed. It is after 36 months are over that after-sales will play a role. How diligent are the HFC’s follow-ups? Are they prompt? Are reminders timely? Moreover, during the financial year-end, the HFC should be punctual in giving the borrower interest paid certificate (components of interest and principal amount paid in the financial year) so that he can file the necessary documents for availing tax benefits (under section 24b and 80C of the Income Tax Act) on home loans.

4. National presence

The HFC should be present across the country or at least have branches in all major metros and towns. This provides an individual an easier accessibility. This assumes importance if the current job of an individual is of a transferable nature (e.g. bank job, defence personnel) or if he needs to make long and frequent outstation visits (e.g. consultants, businessmen). The individual shouldn’t be put through the hassle of couriering his cheques to the home branch every time or contacting the home branch, each time he has a difficulty or a query. So it helps if the HFC is well networked across the country.

5. Prepayment / Foreclosure benefits

For many individuals, this plays a significant role in their decision to go in for a particular HFC. For example, many salaried individuals know for a fact that their salaries would be revised every year. This means that they can pay a higher EMI going forward. Some of these individuals also know that they would be getting a bonus, which they can utilise to pay off their home loan (either fully or partly). Some banks do not charge individuals for making a prepayment / foreclosing their account. Obviously such HFCs should get preference over other HFCs that do levy a prepayment charge.

6. Do your homework

Many people have a tendency to buy into ‘brands’ rather than going for what suits them best. It’s not about how big the brand is; it is more about whether that brand suits your requirements and satisfies your criteria. Make a list of your requirements first and then home in on an HFC. Talk to people who have already taken a loan from a particular HFC and get their feedback.

Other factors like documentation, processing fees, document storage facilities and time taken for processing the loan should also be considered. For example, individuals do not like it if the documentation is an irksome process; or if the processing fees are exorbitant.

Apart from this, read all the terms and conditions carefully and do not forget to take an expert advice. Therefore, instead of reading on the lucrative offers of the company, it is important to read and understand the technical aspects of the offers. So if you want to be in a win-win proposition while dealing with the Housing Finance Company, the onus is on reading the fine print in the loan document and seeing through the maze of exciting offers.

Are All Car Finance Companies The Same?

All credit providers in Australia are governed by the same legislation and are bound by the conditions of the National Consumer Credit Protection legislation. This includes providers of car loans, home loans and credit cards so in this sense, every lender has a common dominator.

Nevertheless, finance companies are in business to make a profit and are free to charge whatever they wish for their financial products and this is where the major points of difference come into play. Some lenders choose to cater to niche markets and may be prepared to take more risks than other lenders.

The amount of risk they are prepared to take cannot compromise the responsibilities they have under the national credit legislation however, and they have to take a responsible approach before approving any application.

When it comes to car finance, there are many finance companies on the market and any potential borrower would do well to test their eligibility with a number of them before making a decision. In the majority of instances, car loans are secured, which means that the lender has the option of selling the car to recoup their losses in the event that a borrower defaults on their repayments.

Secured personal loans are often treated more leniently when it comes to assessing applications because of the comfort the lender has by being able to sell the car if the loan goes bad. Nevertheless, they are still obliged to assess the application to ensure that the borrower will not suffer undue hardship and that the loan product is not unsuitable for them.

The major difference between finance companies is the interest rate charged on the flexibility of the loan product itself. When making a comparison between finance companies you should look at the following elements of the loan to determine whether or not it is suitable for you.

The interest rate. Naturally, the higher the interest rate the more it is going to cost and this is the principal determinant for most borrowers when deciding where to lodge their application.
Ongoing fees. Whilst interest rate is important, the impact of ongoing monthly fees should not be ignored. For example a car loan of $20,000 at 12% over 5 years will have required monthly repayment of $444.89. But if the loan attracts an ongoing fee of $10 a month, this effectively changes interest rate to 12.98%. The only way to get an accurate comparison is to look at the total monthly repayment and have a financial adviser calculate the effective interest rate for you.
Application fees. Similarly, application fees need to be taken into account because it affects the overall cost of the loan. A cheap interest rate might attract a high application fee which means you need to tread carefully before making a decision.

The best way to compare the products offered by the various companies offering car finance is to work out the total cost of the loan over the loan term. The total cost is the only way you will get a true comparison.

How to Get Easy Finance Car Loans at Affordable Rates

If you are shopping for a new car and need to obtain your loan in a hurry you will no doubt want to know how you can get easy finance car loans. With the automotive industry still recovering from the global economic down turn, it is not difficult to get auto finance these days, and knowing where to look and what to look for will prevent you from rushing into signing dealership loan contracts that may not offer the best rates or terms.

The most important thing that you will need to avoid, when getting easy finance car loans, is paying too much for your loan. Some companies who offer fast and convenient auto financing will often charge more for this convenience, but by shopping around before you begin looking for your new motor vehicle can help you find easy finance car loans at the most affordable price.

Nearly everyone who is in the market for a new vehicle will know whether or not they will need to obtain finance for their purchase. Therefore, your new car shopping should begin with considering your financing options. Easy finance car loans are best secured if you are borrowing within your budget, and so this is the first thing you need to consider when looking for a car to purchase. If you are unsure of what you are able to spend on your new vehicle you can use an online loan calculator to help you work out what your repayments will be. Lenders are more likely to approve easy finance car loans if borrowers have room to move in their repayments, and so you should always check that your purchase is well within budget.

Another thing that may be useful when looking for easy finance for your vehicle, is to get a pre-approval on your loan. There are many lenders who can pre-approve your car finance, and when you obtain a loan pre-approval, not only will your loan be processed a lot faster and easier once you have found the vehicle you wish to purchase, but you will also ensure that you stay within your budget. Easy finance car loans are often best obtained with a pre-approval.

The best place to look for easy finance in order to purchase a vehicle, is on the internet. There are many companies who offer fast and convenient online lending, and since you will have access to a large number of these providers, you will have a better chance of getting easy finance car loans at a great rate. Applying for a loan, or a loan pre-approval online is simple. All you will be required to do is complete a standard application form that will then be submitted to your loan provider over a secured network. You will receive approval in a very short space of time and, once you have provided any other necessary documentation required by your lender, your loan will be processed.

Getting easy finance car loans is not difficult. But, unless you take the time to consider your financing options before you begin shopping for your new vehicle, you may end up paying more than you should for your finance.

Choosing The Right Receivable Financing Company

The very mention of the term “bank loan” to a business owner is often enough to elicit a very strong and visceral response and the simple truth of the matter is that the average business bank loan is a fairly contentious and controversial subject within the business community. On one hand, a bank loan will provide the business owner with a source of capital that they otherwise would not have, which in turn can mean that bold ambitions of expanding and developing the business in a particular direction can be more fully achieved and accomplished with a minimum of disruption.

This is especially significant in highly competitive sectors of the market, as any measure of delay can ultimately result a business that chose to postpone any sort of development or alterations to the manner in which they do business being overtaken by a rival. The downside here however, is that the loan will be required to be paid back and so if the business is struggling to generate enough revenue, or worse yet, is already in debt, then the repayment maybe too much of a burden for its finances.

Furthermore, in order to actually gain access to a bank loan, a business will typically be required to secure assets that it owns as collateral, and so a noncompliance with the terms of the loan will ultimately mean that the assets secured as collateral maybe seized by the lender.

Thankfully, there is an alternative strategy for the struggling business owner who is looking to secure another external source of capital finance to provide their company with a much needed kick start: a receivable financing company.

A receivable financing company, or a factoring agency as they oftentimes referred to within business parlance, is a business entity that will purchase outstanding invoice accounts from a company and then provide the client company with a sum of money upon receipt of the invoices. The receivable financing company will then assume full, legal responsibility for the collection process of the money owed by the client specified on the invoice.

Once the client has paid the full balance owed to the receivable financing company, the factoring agency will then release the remainder of the funds owed to the client company….with a small deduction made from the funds received from the client in order to cover the expenses that they have incurred.

One of the major benefits of using a factoring agency is that the client company will be guaranteed to receive a fairly large amount of money in a very short space of time indeed which effectively eliminates and protects against the risks that an unpredictable and capricious degree of cash flow will pose to a client company.

Furthermore, this method of business financing will effectively mean that the agency is responsible for the collection process thereby freeing up the time and money of the client company who will not have to contend with the chasing up of fees or commissions owed.