Timelord's Pocket Finance Advice

Car Finance Online – Easy to Organize

Time for a new family car but don’t have the finance available? Approaching your bank for a loan isn’t necessarily the wisest thing to do; they may very well grant you the money you want but the interest rates they charge are nearly always set at a high rate. There are lots of other places you can get a loan and not be paying back extortionate amounts in interest.

Once you have found the car you want then contact a finance broker to find out their terms on a loan. Ask for recommendations from friends and business colleagues to see if they have had dealings with any finance brokers previously, perhaps they can give you any tips or the name of an established broker. Word of mouth is often the best form of advertising and can be a good way to find reputable and honest businesses. Also do some research online yourself into various vehicle brokers and take a look at the feedback they have from previous customers.

Applying for a loan online is fairly painless; the broker will ask a few questions about your present employment and salary, as well as your circumstances and daily living expenses. They will then go through the list of options they consider suit your financial circumstances and needs and give you advice on repayment.

Car finance brokers can offer you a practical solution that is convenient and within your price range. Most people are uneducated in the car finance field and a broker can be the answer to your prayers. You can be guaranteed that you will receive a much better deal on car loans than if you stick with traditional high street banks and loan companies.

The thought of visiting a car dealership on the high street may be intimidating and a chore you put off time and time again, the demands of a face to face meeting with a pushy salesman isn’t something you can cope with. If, like most people, you don’t really understand all the terminology of sales talk or car mechanics but just want a nice color that gets you from A to B, then talking to an online broker will make you feel a lot more comfortable. Car brokers are known for their broad range of experience in all aspects of car financing.

Car finance brokers are there to help you. They will not pressure you into buying a certain model, or to buy from a particular dealership, their service is impartial. Knowing the car industry as they do they can explain all the features of certain models, also assisting with finance terms, warn you of hidden fees, and explain your rights as a buyer in simple terms.

Never feel pressured into buying a car, especially by a salesman at a car dealership who obviously just wants to get his commission. Take your time selecting the model of car you prefer and then test drive each one until you find the one you are most comfortable with. After your test drive, if you are still unsure, take another! Remember it is a lot of money you are intending to spend and so you want to get the best car for you.

Nearly everyone has to arrange car finance for a new car. Whether you decide to look online or visit your local high street for advice, there are lots of good deals available. Buying a new car should be an easy and straight-forward process, look online for a car broker who can offer you services with no heavy sales pitches, pushy car dealers or stressful visits from car yard to car yard.

Tags: Easy, Finance, Online, Organize

Car Finance for Bad Credit: Get a Car Without Hassles

It may be necessary for you right now that you buy a car but your credit history is stopping you from taking another step in any financial matter. You can now buy a car with the help of money provided to you by car finance for bad credit. This makes your task easier as hassles are quite reduced with this.

Car finance for bad credit makes money available to those borrowers who want to buy a new or used car but are suffering from a bad credit history. Money is provided to the borrower to pay the price of the car as a lump sum amount, and then the borrower can repay the amount in monthly installments to the lender over time.

The borrower should avail Car finance for bad credit by proper researching. The first thing that he should try and find out is a good dealer who is ready to give a good deal for a car to the borrower. If the price of the car is not being reduced, the dealer who is providing add-ons to the borrower should be selected.

After that the borrower should find a suitable lender now that he has a fairly good estimate of the price of the car. The borrower should see which lender is charging a lower rate of interest as usually, car finance for bad credit is charged a higher rate due to the bad credit history. So to lower the rate for car finance for bad credit, it is suggested that the borrower should take up an online research as better comparison can be done through this mode of search for car finance for bad credit.

The borrower can repay the car finance for bad credit in monthly installments as fixed earlier by the lender. With the timely repayment of car finance for bad credit, the borrower can also improve his credit history.

It becomes very easy through car finance for bad credit that the borrower is able to buy a car of his own. Bad credit history can not limit his wishes any more.

Tags: Credit, Finance, Hassles, Without

Used Car Finance – Lessons for Making Money

You might think that used car finance simple involves a dealer, a bank or other lender, and a down payment on the part of the buyer. That is how it works in some cases, but it gets much more creative than that. Let’s look at a real life example, and see what lessons can be learned to apply to making money in other businesses.

A friend of mine used to have a used car lot. He teamed up with a creative used car finance company to sell cars to people who had trouble getting traditional loans. I don’t recall the name of the company, and I may get a few figures wrong, but I remember the principles very clearly.

A typical deal might have started with the dealer taking a trip to the auction. He would buy a car there for ,200 (wholesale) which might have had a retail value of about ,200. But because he is making it easy for somebody to buy the car, he can sell it for perhaps ,000 after cleaning it up.

How does he make it easy to sell at a high price? By arranging financing for the buyer, who typically cannot get a bank loan. How does he do that? With a very creative finance company that rarely refuses to make a loan.

How can they make loans to people who are a terrible credit risk? By putting much of the risk onto the dealer and charging outrageous interest rates. Specifically, in this case, they would finance the ,000 car at say 20% annual interest. But they also would only forward half of the loan amount to the dealer. The rest would be paid only when and if the payments from the buyer came in.

In this example, then, the buyer might have to pay a 0 down payment. A young couple can put together a couple paychecks to afford this. Payments on the ,400 loan arranged by the dealer might be 0 per month. As I recall, weekly payment plans might have been available as well, to make budgeting easier for those with weekly or biweekly paychecks.

The loan would be for ,400, but the dealer would get ,200 when the sale was made – half of the loan amount. As you can see, the dealer is already okay, since he has received a total of ,800 for a car that cost him ,200. In other words, if he receives nothing more he may be able to squeeze a profit from these deals even after overhead costs.

What about the used car finance company? So far they have only risked ,200, on a car which is worth that much at a wholesale auction. They collect 20% interest on the entire ,400 however, as well as some kind of “loan processing fee” up front. This makes their real rate of return over 40% annually.

Of course, these are high-risk loans. I heard through the grape vine that 50% of these loans were in default at some point. But the finance company had an aggressive collection team, which called borrowers as soon as they were a week late, and quickly repossessed cars when necessary.

What does that mean? As an example, suppose a buyer ran into trouble and stopped paying after the first eight payments of 0. The principle amounts had been forwarded to the dealer, but the lender would have already collected about 0 in interest and fees. When they took the car and sold it for ,100, they might net 0 after the repossession fee and other costs. In other words, they broke even on the deal. When you make a 40% return on the good deals, you can break even on a lot of the others, right?

Used Car Finance Lessons

One dealer who had used this finance company was still receiving checks for principle years after he retired, so he liked the arrangement. Despite the high interest rate, the buyers now had a car to get to work in, so they liked the deal, or at least found it better than all other options. The owners of the used car finance company were happy making money where nobody else dared to loan. It was very creative all around, so what specific lesson can we learn to apply when making money in other businesses? Here are three:

1. High-markup products allow for more creativity in marketing and selling.

2. Making it easy to buy allows you to charge more for your product (or service).

3. Finding a way for everyone involved to “win” helps you make money.

There are other lessons in this story of used car finance, of course. For example, in the case of the lender you can see that going where others fear to go opens up new opportunities. Sharing the risk is also a useful way to make things possible that otherwise might not be. Of course, the buyers out there might see the lesson that you pay a lot more when you finance things, and especially when you have bad credit.

Tags: Finance, Lessons, Making, Money, Used