Monday, May 19, 2008

Auto Part of Bob Brown Company

About-Us - Bob Brown Advantage Auto Credit - Des Moines, IA Greater Des Moines Area Part of Bob Brown Company since 1999, Isuzu Advantage Auto works hard to get you into the vehicle you have always wanted. That used car is waiting for you, and we work with a vast array of lending sources to make sure you will get the most complete and comprehensive financial package available in Des Moines, Iowa.

Manufacturer recommended parts are an important part of maintaining your vehicle’s optimum performance. At Bob Brown Isuzu Advantage Auto, we offer the same high quality parts your vehicle was built with, and we keep a large inventory of OEM certified parts in stock at our Des Moines, Iowa facility.

Bob Brown Isuzu Advantage Auto service department strives for 100% customer satisfaction. From general maintenance such as oil changes to major repairs, let Bob Brown Isuzu Advantage Auto service your vehicle. Our dealership is one of the premier dealerships in the country. Our commitment to customer service is second to none. We offer one of the most comprehensive parts and service departments in the automotive industry.

At Bob Brown Isuzu Advantage Auto, we strive to make buying or leasing a vehicle a pleasant and rewarding experience.

Our primary concern is the satisfaction of our customers. Our online dealership was created to enhance the buying experience for each and every one of our internet customers. If you have any questions, please feel free to contact us or call our Internet Department at 515-289-5974.

Isuzu Advantage Auto has been a part of the Bob Brown Company since 1999. Isuzu Advantage Auto works hard to get you into the vehicle you are looking for. Our finance specialists use 20+ lenders to arrange financing for everyone’s needs. Plus we know your time is valuable so simply fill out this credit application so we can get the process started today or call one of our Certified Internet Specialists at 515-289-5974.

Report to Credit Bureaus
Bruised Credit - Isuzu Advantage Auto specializes in establishing and re-establishing credit, our finance experts have a great rapport with the lenders to get the vehicle of your needs. We also use lenders that will report to the credit bureau agencies to help you re-establish credit. Simply fill out this credit application or contact one of our Certified Internet Specialists at 515-289-5974 to let us start the process for you.

Isuzu Advantage Auto Service Center
Isuzu Advantage Auto Service Center, part of the Bob Brown Auto Group is now open to the public. Our technicians are Isuzu, GM, and ASE Certified technicians. The equipment we have is the same as the big dealerships in the area. Our prices are competitive and the parts we use are backed by the Napa Auto Care Center Guarantee. We also do spray-in bed-liners, rust proofing, and full auto detail. If you have any questions feel free to contact us or call our Service Department at 515-564-1450.

Our primary concern is the satisfaction of our customers. Our online dealership was created to enhance the buying experience for each and every one of our internet customers. If you have any questions, please feel free to contact us or call our Certified Internet Department at 515-289-5974.

Tuesday, May 6, 2008

New Car Finance & Used Car Loans

New and used automobile loans are being processed every day in the thousands through online applications. People with good credit, bad credit, and very poor credit are being accepted and allowed to drive away in the car of their dreams, because they applied online to competitive lenders that specialize in special credit situations.

Traditionally, when a person applied for credit in a car dealership they would have to deal with the uncertainty that it would be denied credit in a public car dealership. Many people have skipped this potential embarrassing situation by applying for car loans from the privacy and security of their own home.

Online automobile applications are secure and encrypted and the only way that your information is used is to find the best possible deal and rate for your next automobile purchase. The reason that so many online lenders are able to offer the best rates possible is because of the immense competition that comes from the tremendous outrage of the World Wide Web.

Traditional car dealerships only had to deal with the competition in the local market, however, online lenders have to compete and be competitive with thousands of other lenders across the country. Because of the vast competition and online automobile lending, the customer wins by being accepted with favorable terms and interest rates.

Bad Credit Car Loans - Specialists in Auto Loans for Bad Credit Nationwide!

Bad credit auto loans are available nationwide for customers who have poor credit or no credit through our special loan network which specializes in new and bad credit used car loans. Approvals for car loans are very quick and simple even with bad credit and as you can soon see there is hope even with challenging credit issues! Bad credit car loans can be obtained online for new or used automobiles ranging from small, economical cars to sport utility vehicles; and our devoted professionals are here to help you around the clock. If you are ready to start driving your new car, truck, van, or sport utility vehicle, go to our online application now and get approved for Bad Credit Auto Loans.

Car loans for people with bad credit is a new beginning when things seem hopeless! These nationwide special finance loan programs, often referred to as bad credit auto loans, are designed to help you get back on track and re-establish your credit rating with a new or used car loan. Auto loans for bad credit provide a second chance to restore car credit while providing you with a reliable means of transportation which meets or exceeds your needs. Bad credit car loans are available for all automobile types nationwide and getting approved online is the first step to purchasing a new or used vehicle. If you have experienced problems getting approved for a car loan with bad credit we invite you to see what a difference our national team of bad credit auto loan experts can make for you.

Bad credit auto loans and special financing are not necessarily only for people with bad credit! Even though bad credit car loans can help individuals with derogatory credit there are also problems people encounter which are not due to poor credit. There are other challenging situations which many people face when trying to get a car loan such as self employment, short job time, unestablished credit, or being a first time buyer. What ever your situation is you need someone who understands all types of credit challenges and can provide you with the outcome your searching for when it comes to bad credit auto loans. Our national special finance network has faced just about every imaginable challenge and invites you to get your free auto loan approval online now. Loan services are provided nationwide for all credit challenges. To get your fast confidential approval now go to our secure online application for Bad Credit Car Loans.

Bad Credit Auto Loans: No Break Just Accelerate

Bad credit auto loans are designed for those who fail to qualify for financing with traditional lending institutions such as credit unions, financial institutions, and banks due to their below the mark credit scores, previous vehicle repossession, recent bankruptcy, low income, or inability of producing specified down payment. Often, the automobile dealers fund bad credit auto loans initially, which are then either sold or assigned to the particular car company.

Obtaining a bad credit auto loan is fairly simple unlike the regular auto loans that require borrowers to have strong credit records for eligibility. To apply for bad credit auto loans, all you need to do is produce necessary documents to prove a regular monthly income of minimum $1,500 from a fixed income source, citizenship of Canada or the US, and ability to obtain an automobile insurance on your own. In some cases, bad credit auto loan lenders may however ask borrowers proofs of their working phone number or residence proof in the form of utility bills or credit card bills.

It is indeed simple to obtain a bad credit auto loan. You must not take the process of obtaining one easily. It is advised that you do some solid research before approaching a loan agent for availing such a facility. This will ensure that your purchase is planned and there is no scope for any default.

First and foremost, before making up your mind on buying a vehicle, you must review your credit report. The credit bureaus maintain credit records of millions of people like you and give green signal to the registered lending companies to lend you, depending on the quality of your credit report. You can request a copy of your credit record annually from any one of three credit bureaus. A careful study of such a report will tell you whether all your bank accounts are in order and your debt position has room for a fresh one. In case you have suffered a bankruptcy in the recent past, then it is advisable that you close all your open accounts by resorting to a debt consolidation loan, to avoid further cracks in your credit record.

Also, after you have carefully studied your credit report if you find any loopholes in it, immediately report to the credit bureau. In case you have defaulted due to a bankruptcy, attach a sheet to the credit report, explaining what circumstances led to this mishap and then send the copy to the credit bureau. If lenders sympathize with your situation and feel that a default, in your case, was just inevitable then they might revisit their decision of lending to you. If you are fortunate, you may get a better product and at better rates, then what you would have otherwise obtained being in a high risk category.

Studying your credit report thoroughly will also allow you to gauge your current financial health. Accordingly, you can determine whether you can afford another debt "bad credit auto loan" in your books and whether you would be able to repay it timely. Carefully decide what bad credit auto loan amount can you afford and check the loan tenor. After determining your affordability, shortlist the products that are within a reach and choose a dealer based on a thoughtful comparative analysis.

Car Loans Basic Series

Are You the Ideal Borrower for a Car Loan?

When you are looking for someone to loan you money, no matter what the purpose, you want to be as attractive to that person as possible. So, who do lenders feel most comfortable with when writing car loans? An excellent credit score as well as a low debt-to-income ratio always makes you attractive to a car lender. In addition, many banks and traditional lenders prefer to lend money for new cars.

If your car loan will be written on a used vehicle, and it is a newer car model, less than the book value, and you have a relatively short repayment schedule, your car loan will look more attractive.

Car Loan If You Are Not the Ideal Borrower? - Bad Credit Car Loans

Bad Credit, borrowing money for an older car, or needing to finance for an extended period are all reasons that a lender may look cautiously at your loan application. If you are unable to get a car loan, you may ask what would help your case. Often a small down payment may be enough to ease the lender's mind.

If traditional financing is out of the question, the next step is to attempt to get financing through the dealership. Most dealerships offer this service, and would prefer to finance your loan as well as sell you the car. The interest rate will likely be higher than through a bank or online lender, but still reasonable. The dealership who, of course, wants to sell you a vehicle, will often act as an intermediary between you and the lender, and help work out a deal.

Other Choices in Financing Your Car - Refinance or use a HELOC

If you are unable to obtain a car loan through a traditional or online lender, or through one of the major motor company's credit department, you are left with a few options. If you own your home, you can take out a 293 to pay for your car. The interest rate is reasonable, and you can normally write-off the interest on your taxes, but, you stand to lose not your car but your house if you default.

Tuesday, April 22, 2008

Information for credit designed for auto labeled

If you are in search of auto credit loan than is the accurate website for you because, originates the information about auto credit loan with bad credit. You will also get all the information related to auto credit loan, easy auto credit, bad auto credit, united auto credit, auto credit finder, auto credit finder, and many more on browsing our sites directory.

Browse for information on the topic of auto credit loan. There is no easier or secure way to get Auto credit loan online. Your credit application is only sent to those lenders in your regional area that are dedicated to providing you with auto financing to meet your needs. Banks and financial institutions use the principle of diversification of risks when giving Easy auto credit loans. A prudent banker always tries to select the borrower very carefully and takes tangible assets as securities to safeguard his interests. Tangible assets are no doubt valuable and the banker feels safe while granting advances on the security of such assets, yet some risk is always involved there in. Getting an auto loan with bad credit is extremely difficult, right? Actually, getting bad credit auto loan is as easy as getting personal loans with perfect credit. If you’re looking for auto bad credit loans, you need to bypass the traditional neighborhood banks and find an auto loan broker, especially one that specializes in bad credit auto loans. Who Qualifies for United auto credit Loans? Most cash payday loan providers don’t do credit checks, and their requirements for issuing a loan are simple. In a nutshell: -
1. You must be 18 or over – old enough to sign a legally binding contract.
2. You must have a verifiable source of regular income.
3. You must have at least $1000 a month verifiable income.
4. You must have an active checking account.

Having bad credit doesn't mean that the consumer can't obtain credit; it just means the terms won't be as favorable. There are also many entities that act as Auto credit finders. The consumer completes an online application. The application is evaluated and the consumer is matched with a lender. The club of the expert searcher to provide you updates and recent in development in Auto Credit King Sales, Auto Credit Guaranteed auto loan for used auto in freeway Auto Credit Demand. The name defines its role. A new search engine which is an online information guide to find what you want. let you close to the world with innovative information that you seek on internet regarding auto loan. The online guide gives you all details information for Auto Bad Credit Loan Refinancing, Auto Bad Bank Credit Loan, Auto Credit Express, and Auto Boxtel Credit Van. The Auto Credit Loan Problem is faced by Auto Credit Loan Union. can very easily verify credit information and see if you have bad credit. So providing false information is absolutely prohibited. Being consistent with bad credit personal loans will contribute in recovering credit. If you are apprehensive that bad credit personal loans won’t be possibly. That is not true. If you think bad credit can only get loans, then perhaps you are unaware. Personal loans for bad credit have a new role; they are now responsibly improving credit.

People who love auto and enjoy the driving will love to be with, as it provides auto credit loan with bad credit and to have a best incentive in your hand as per your requirement. Because we understand people those who have the bad credit it is difficult to get loan. So explore and find the world of information, one click away.

Tuesday, March 25, 2008

Getting a Car Loan With Bad Credit is Easier Than You Think

Bad credit car loans

are quite common as nearly a quarter of Americans are credit-challenged. If you have imperfect credit, you should have little problem of getting the car you're interested in, as several thousand bad credit car loans are issued everyday in the U.S.

Before applying for one of these bad credit car loans there are a couple things you can do to ensure that the process goes smoothly for this specialized area of car finance:

Review your Credit History – Experts say you should review your credit report at least once a year to make sure there are no errors, and this is especially important if you are applying for a bad credit car loan. You can order a copy of your credit report, and sign up for credit management products through our partner, Experian. You can get a free copy of your report at The site allows you to get a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies. This is mandated by the Fair and Accurate Credit Transactions Act (FACT Act).

Determine How Much You Want to Pay – You should have in mind how much you can comfortably afford for your car, for both a down payment and monthly payments. You can use our car loan calculator to help you crunch the numbers for your bad credit car loan.

Prepare Documentation – You may need to provide proof of employment and income. It’s helpful to have documentation in hand, such as pay stubs, in case you’re asked for it. This will speed up the process of getting your bad credit car loan.

Keep a Clean Credit History – You'll want to make an effort to make on-time payments to keep your credit history clean. Also, if you need immediate cash, you'll want to avoid unscrupulous car title loans. Many people lose their cars because of unfair terms. It's much smarter to consider a refinance car loan, which involves accessing the equity in your vehicle.

Bad Credit Car Loans at CarsDirect

Bad credit car loans are one of CarsDirect’s online car loan specialties. In fact, we help more consumers get bad credit car loans and no credit car loan products than any other website in the country. We work with a network of dealers who specialize in this area of financing. The dealer has access to a number of financial institutions and will shop around to find you the best deal available on bad credit car loans.

Simply fill out a quick and easy application, and you’ll be on your way to getting your new car! The service is free and absolutely no obligation is required.

Bad Credit Car Loan

Compare Quotes with our Loan Calculator »

A past bad credit car loan history need not be a problem in obtaining car finance.

Your ability to obtain finance and the interest rate you will be charged is determined to a large extent by your credit history. Lenders look at your credit report when determining the rate of interest they will charge.

If you are a homeowner obtaining finance for a car purchase should be easier as a lender can use your home as security. The lender will however take into account other factors such as any current borrowings, your income and employment status before making an offer. For tenants options are more limited and generally speaking if you have a bad credit history expect to pay high interest on any credit as lenders will see you as a higher risk. It is important that you consider the impact of any monthly loan repayment you will be required to pay.


Getting a Car Loan with Bad Credit

You've just learned that your request for an auto loan with XYZ Bank has been denied. The loan officer explains that the decision has to do with your credit score. XYZ lends only to prime borrowers; your credit score, she continues, places you squarely in subprime territory.

Subprime. You're not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.

However, being deemed subprime doesn't necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan (albeit from a different lender).

But first you need to understand the term that defines you. A subprime borrower is one with bad credit. Each lender has its own definition of what constitutes a subprime borrower, but typically, a credit score of less than 620 lands you in this less-than-desirable category. For more information on credit scores, and what sort of factors cause them to suffer, please see Credit Scores Demystified and Understanding Your Credit Report.

There are plenty of credit grantors specializing in subprime lending who are eager and willing to loan money to those with bad credit. Naturally, though, there's a catch. The interest rates for subprime borrowers are frequently quite steep — significantly steeper than those paid by their more credit-worthy brethren.

So, now that you understand what your playing field looks like, how can you finesse the game in a way that gets you a reasonably priced car loan? Here are a few tips:

  • Check your credit report. Make sure that everything on your report is accurate; it could be that information has been entered in error, and that your credit history is a lot less blemished than you've been led to believe. If you do find information on your report that is inaccurate, you need to address it right away. Contact the credit bureaus in writing, listing your name and address and clearly detailing the nature of the error.

  • Access your credit score. For a long time, credit scores were available only to prospective lenders, who used them to evaluate those seeking loans. That has changed; it's now possible for consumers to access this all-important number. Your score is available online from each of the three credit bureaus: Trans Union, Experian and Equifax. If you've got bad credit, it's helpful to know it beforehand. Knowing your credit score will help give you a sense of exactly where you stand in your search for an auto loan.

  • Don't rely on the dealer. Dealers take a cut of all car financing deals they land; as a result, any loan that they're able to get you with a bank or financing company is likely to wind up being more costly to you than if you had contacted the lending institution on your own. Ideally, you'll want to secure your auto loan before setting foot inside the dealership.

  • Shop around. Rates will vary from lender to lender; take the time to look around and see what deals are available. Lenders typically define their business according to credit tiers (A, A- and so on.); speak with loan officers regarding how each tier is linked to credit score and interest rate. Ask for a matrix detailing the tiers and their implications; having something in writing from each lender will make it easier to compare your options effectively. If you have a checking account, make sure to include your bank in your search for a loan. Many banks have entire departments dedicated to providing loans to those with flawed credit, and they tend to look more favorably upon applicants who are current clients. Your credit union is also a good place to turn. For years, credit unions have had a reputation of lending only to members with good credit, but that's begun to change. Many are now beginning to expand their business to include those with less-than-perfect credit.

Remember that your credit score is malleable and ever-changing. When it comes to your credit history, the ball is entirely in your court. You can improve your bad credit by paying your bills on time, and not overextending yourself when it comes to loans and credit cards. With proper attention paid to the state of your credit, you could conceivably hoist yourself out of subprime territory in as few as two or three years. Going forward, check your credit score at least once annually. You may have to pay more than you'd like for the auto loan you're about to receive, but in a couple of years, if your credit score has improved, you'll probably be able to refinance your loan at a much lower rate.

Monday, March 17, 2008

Personal Finance to Avoid Crippling Deficits and Bad Credit Scores

What is Personal Finance?

Though literally speaking, personal finance may mean arranging finance to meet your personal needs, personal finance is the implementation of the rules of financial economics in making personal financial decisions. It takes into account the sources of income or finance including mortgage loans, channels of expenditure, savings for emergencies, old age, payday payments and so on. Personal finance includes keeping income records, budgeting based on those records, preparing and net worth statements, credits, savings, investments, estate planning, insurance, taxes and so on.

Origin and the History of Personal Finance

The concept of personal finance and its management owes its origin in the hoary past when there were no hard currencies to quantify income, purchases and sales. Earnings were received in commodities and the same were exchanged in buying, selling and meeting personal needs. People were advised to look about their personal finance by making hay while the sun shone and store grains for the rainy seasons.

After the introduction of currency, services and products started being exchanged with money. Since carrying large amounts of even paper money is both cumbersome and insecure, we now have the plastic money called Easy Auto Credit.

The Origin of the Credit Card

The origin of credit cards, however, has a different story. It was not initially introduced as a convenient and securer substitute for carrying large amounts of money, though this advantage came about as a natural corollary. Credit cards, in their earlier avatar as dog-tag style metal plates appeared in the United States just before the beginning of First World War. They were introduced by the department stores for their favorite customers. Later on gas credit cards were issued for automobiles that could be used all over the country. One reason for the explosion of the credit card was the increased mobility of an average person. Credit cards and the easy mobility mutually promoted each other. A gas merchant in California would hesitate to accept a personal check from a customer but would willingly take an American Express or MasterCard.

Diners Club Cards

Nineteen fifties brought in Diners Club Cards. The Diner Club cards were introduced by Francis McNamara, an operator of a small loan company. He issued credit cards made of cardboard. It bore the holder's name and account number on the front and a list of 28 restaurants and Manhattan nightspots where his credit cards could be used. He charged an annual fee of five dollars. Later on he expanded this network of cards to the national level and covered restaurants, hotels and air travel expenses. In 1951, Franklin National Bank of New York too entered into market with a credit card that could be used to buy a variety of merchandise. Other banks notably the Bank of America in San Francisco joined the fray with its BankAmericard which later evolved into its present day Visa Card. Visa was followed by the Master Card of today. The credit card business exploded exponentially when by the end of 1960s many banks started mailing out credit cards to anyone with a name and an address with a good and even bad credit. The explosive proliferation of credit cards and the easy availability of finance have created more urgent need to regulate the personal finance than ever before.

Bad Credit Mortgage Loans

At the time you begin your search for a house, Auto Bad Credit Dealer are probably not on your mind. Everybody would love to have the option of being able to sign a check with a flourish and make a single payment for the entire home at one go. However it is only the fortunate few who are actually able to enjoy such a privilege in life, with the majority only being in a position to purchase a new home with the help of a bad credit mortgage loan. Given a choice, there's nobody who wishes to have bad credit but circumstances make it inevitable.

A late payment of a few bills, due to a lack of funds or mismanagement, takes a negative toll on your credit score. Too many credit cards, too much holiday shopping and too much fun on vacation can easily result in too much debt. Too much debt in turn can put you in a high risk category in applying for a home loan and you may end up needing to try for a bad credit mortgage loan. This may be a humbling experience but ideally you can make it a learning experience too.

If you find yourself with no option but a bad credit mortgage loan, treat it as an opportunity to start afresh. With time and effort, you can very well make your credit score improve. However it will be no overnight miracle. Make a conscious effort to make payments on time. It may at times be easier said than done but keeping a track of the effect it has on your credit will prove encouraging. Debt consolidation is worth considering to get better interest rates than those charged on your credit cards. Doing this will enable you to pay off debts a lot sooner and reduce the amount on payments every month.

The Disadvantage of Bad Credit Mortgage Loans
The biggest drawback of bad credit mortgage loans is the higher interest rate that you will have to pay compared to that paid by people with better credit scores. It's really as simple as that. Anyone the mortgage lender considers a higher risk has to pay a higher interest rate to qualify for the loan. The higher the interest rate on bad credit mortgage loans, the higher the monthly payments to be made. Higher monthly payments could also mean that you'll have to settle for a home that is far less expensive than you would ideally have liked.

The Bright Side of Bad Credit Mortgage Loans
On the positive side of bad credit mortgage loans is that despite your interest rate being high, you still qualify for a loan that enables you to purchase your own home. While you may be paying a substantial amount of interest every month, it still beats having to rent and you get to enjoy the numerous advantages of homeownership. The other bright aspect is that this high interest rate will not last a lifetime.

When your credit score begins to show improvement, it is proof of success in your efforts to pay off your debts and that you have a pattern established to make timely bill payments, including payments for the bad credit mortgage loan. This enables you to apply for refinancing. When you have a credit rating that is more desirable, you are in a position to qualify for a more desirable interest rate.

Apart from saving you money on interest, this will also enable you to lower your monthly payments and consequently will make all your efforts worthwhile. You will have a credit score to take pride in and be able to take advantage of better bad credit mortgage loans.

Free Application

Free Application

At least $1,500 gross monthly income required for credit scores less than 625.
Chapter 7 Bankruptcy. 341 meeting of creditors must be completed.
Chapter 13 Bankruptcy. An Authorization to Incur Debt from the trustee is required.
Zero auto loan repossessions in the last year unless included in a bankruptcy.
Auto loan approvals are for buying a car direct from our authorized licensed car dealer lots.
Residents of USA and Canada at least 18 years of age.

FundingWay - Bad Credit Car Loans

All of our bad credit car loan options are used for buying new or used vehicles from leading auto dealers across North America. We provide car loans for people with bad credit who need a little extra help when it comes to auto financing. Used car loans can usually be obtained the same day or overnight in less than 24 hours.

Fundingway is here to help you get a bad credit auto loan

You don't have to settle for a cheap high mileage bad used car, truck, or suv from a buy here pay here lot with in house financing just because you have poor credit, a previous bankruptcy, or you've been turned down for auto financing from one of the major manufacturers financing arms such as Ford, Honda, Chrysler, Toyota, or GMAC. Get your used car loan preapproved today and let us open the door to your financial freedom.

Auto Auctions

Receive an excellent purchase price on your next vehicle by bidding on repossessed vehicles from Columbia Credit Union. Place your bid with our online auto auction, in cooperation with TitleAuction. After placing the winning bid, you can apply online for a auto loan.

Finding the auction
Finding the auction is easy. Simply locate the "How Can We Help You?" menu, which is on every page within our site. Scroll down and select "Bid on Auto Auction," or click the link below.

Please note that by clicking on this "Continue to Auto Auction", you will leave the Columbia Credit Union web site and enter another site created, operated, and maintained by Title Auctions.

The information that Title Auctions collects and maintains as a result of your visit to its web site may differ from the information that Columbia Credit Union collects and maintains (please see the Columbia Credit Union web site privacy and security notice for privacy protections Columbia Credit Union provides to web site visitors). We recommend you review Title Auctions' information collection policy or terms and conditions to fully understand what information is collected.

The page you are about to enter is framed with Columbia Credit Union's web page navigation for your convenience.


Your personal bank vs. car dealer financial institutions—which is the best approach when obtaining a loan for the purchase of a new vehicle?

Auto dealers are positioned to be a one-stop shop, from search of the vehicle to securing a loan to handing you the keys as you drive off the lot. As easy as it sounds, are you actually spending more money on your new vehicle through this method?

According to one expert, the answer is yes.


Auto dealers will always sell you on payments. The higher the payments the client is paying, the more money the dealership stands to make. Dealerships bump up the rate to the consumer on the payment, yet they receive a lower rate from the auto services departments of the different banks with which they work. Again, this is not going to be the best rate for the consumer because they are selling based on the payment, not the loan itself.

Obtaining your loan through your bank in advance of heading to the auto lot will position you as a stronger buyer, because you are negotiating with cash. Since you’ve already secured financing, you walk onto the lot with negotiating power, and this disarms the car dealer in their ability to make more money off your purchase.

There are several key factors to consider in helping you save money while obtaining a new auto loan, which include:

1. If you are pre-approved, this means you have decided in advance of your first test drive that you can afford the car. You may not have yet picked out the car, but you are already comfortable with the payments you will make and the overall dollar amount of the loan.

2. In working with your personal banker, you will always be dealing with a live person vs. an 800# and voice-activated system.

3. If you experience any problems with the loan, you can go directly to your private banker vs. 800#, where you will be a number and get lost in the bureaucracy of the financial institution.

4. Using your own bank will help you gain a better understanding of the loan because the bank will more clearly explain the terms so you know what are committing to. Your personal bank doesn’t care about payments—their focus is on the loan itself.

5. In working with a bank in advance of visiting the auto dealer, you will not have the tendency to overspend. You’ve already decided in advance what you will do, so you won’t be likely to get in over your head. Driving off with the affordable Honda Accord vs. the less affordable Lincoln Navigator will ease your mind and your pocketbook as you know in advance your payments and insurance costs.

Automobiles depreciate quickly, and the dealer will sell you on the length of the loan in addition to the finance payment to seemingly lower your payments. This means that by the time the car is paid off, your car is worth almost nothing, and may be in a position to either be replaced or in need of major repairs.

Financing before you shop positions you as a strong buyer, places you in the position of negotiating power, and enables you to buy the car you can realistically afford.

What is bad credit?

Bad credit is when negative listings or lack of credit history on your credit report cause low credit score. This may cause you to be denied for credit or qualifying only if you pay higher interest on financing, credit cards, and home loans. This may be because of poor performance in your credit history, incorrect information, credit fraud or identity theft. Bad credit can cause you to be denied to open a checking account! The best defense is to check your credit report frequently. Free Credit Report with link to dispute inaccuracies.

How did I get bad credit? If you are experiencing or have experienced any of the following you may be considered to have bad credit:

  • Auto Repossession
  • Delinquent Credit Card
  • Law Suits-Judgments
  • Collection Accounts
  • Foreclosure
  • Unpaid medical bills
  • Liens
  • Late Payments

Online Auto Loan

Online car financing has become a huge component in the Canada car loans industry. With the resources offered at Car Loans Canada not only can the buyer arm him/herself with all the information needed before accepting an offer but he/she can fill out an application for an online auto loan. Online car financing is a tool everyone should use.

Online Car Financing

According to Jupiter Metrix, 5.7 million cars will be sold on the Internet by the end of 2006. This works out to one in every three cars sold. J.D. Power & associates claim that 62% of new car buyers visit the Internet before buying a car. It is clear that online car financing is easy and accessible enough for all types of people looking for Canada car loans. Even people looking for bad credit loans apply online.

Canada Car Loans

Many consumers will make the mistake of only looking at their bank when shopping for Canada car loans. The assumption that banks will offer the best rates when it comes to car financing is often a mistake. In many cases, companies who specialize in automotive financing offer better rates than banks due to the shear volume of car loan business they do. Frequently, the automotive dealer will get you a better rate through your own bank than you would. The exception to this rule is the use of a personal line of credit. Banks will sometimes offer their customers a revolving line of credit at a lower interest rate than a traditional car loan. However, you may have to use a good portion of this lending tool that is normally reserved for home or emergency purposes. It is important to keep in mind your long term plans.

The Benefits of Online Car Financing

  • Streamlines the process of securing financing.
  • Free of charge.
  • Can even apply for bad credit loans online.
  • Car Loans Canada uses a secure server for protection of your information.

Credit Information in the Underwriting Process--Auto and Homeowner's

The Office of the Commissioner of Insurance (OCI) is continuing its study of the use of credit information in the underwriting and rating process of personal lines insurance. In order to respond to inquiries from community and neighborhood leaders, legislators and consumers, OCI surveyed the insurers that write private passenger auto and homeowner's insurance in Wisconsin on how they use credit information in their underwriting and rating process for auto and homeowner's insurance. Below is a link to the final report of the summary of the insurance company surveys. (Note: You will need an Adobe Acrobat Reader to view or print the report listed below, which you can download at no cost from Adobe .)

Great Car, Great Price…. but what about the Financing?

Auto dealers have a long history of using questionable sales tactics to bilk consumers in the market for a new car. Many people keep their eye on the sale price and neglect scams involving vehicle financing, which can add thousands of dollars to the price of a car.
Unscrupulous dealers often arrange financing for your vehicle, but studies show that the interest rates on these loans are often much higher than a consumer could obtain on their own. The arranged financing ends up costing a bundle, and dealerships often get a kickback from the lender on the overpriced loan.

These financing markups cost consumers an average of $1,000 per loan. Studies conducted on sales financed by Ford Motor Credit Company (FMCC), General Motors Acceptance Corporation (GMAC), and Nissan Motors Acceptance Corporation (NMAC) showed that between 26% and 50% of auto buyers have been victimized by auto financing schemes.

Although dealerships don’t have the authority to offer loans or act as bank agents, many dealers claim that they will negotiate with the bank for you to get the lowest payment schedule and interest rate. However, a dealer can only legitimately negotiate the retail price of a car and any items added on during the sale price.

The dealers often direct a lot of business to certain banks, and some of these banks offer the dealers a cut of the overpriced financing. The dealer cut usually comes from increasing the original percentage rate of the loan sold to the consumer. The consumer is unaware that they received a higher rate than they would have received from outside financing and ends up paying thousands more that goes to the dealership.

You should also double-check that the terms of the loan and the number of payments have not been altered from the initial agreement. Look out for “balloon” payments, which will mean a big final payment substantially larger than the monthly payments. Often these payments are not disclosed up front or are buried in the fine print.

So, what can you do to avoid falling prey to these shady financing schemes? Here are a few key tips that will help protect you from being victimized by shady dealers.

  • Don’t deal with any lending institutions (including credit unions) offered through the dealership. Find outside financing first, before you go into a dealership. Credit Unions usually offer the lowest auto loan price for which consumers qualify, and outside financing reduces the confusing paperwork shuffle that can conceal fraud at the time of purchase.
  • Shop for the best loan and loan terms as carefully as you shop for the best sticker price. Be sure of the exact number of payments, the total cost of your credit in dollars, the name, address, and contact info for the bank that holds the loan, and whether there is a balloon payment at the end.
  • Don’t give the dealership permission to pull your Auto Credit Loan information or your personal information (such as a Social Security number) until you’re ready to negotiate the sale of a vehicle.
  • Be willing to walk away. Slow down and read the fine print, ask lots of questions. Negotiate away extras and add-ons.
  • Stay away from spot deliveries. Dealers can take advantage of this by inserting writs of rescission in the purchase contract, allowing a customer to drive the vehicle off the lot, then change material terms of the contract later if, for example, the deal is refused by the lender.
  • After selecting a car model, call your bank or credit union for a rate quote. Then compare it to the dealer’s quote.
  • If the dealer offers zero percent financing, the dealer will not give consumers a rebate on the sale price. Ask the bank or credit union whether it makes sense to take the rebate and finance the purchase at the regular rate. Then compare those calculations with those of the dealer.
  • Don’t sign any contract with an auto dealer that includes a binding arbitration clause. More and more dealerships are adding binding arbitration agreements to contracts for new and used vehicles, as well as to financing contracts. By signing the contracts, the consumer is agreeing to binding arbitration to settle any future dispute and also waiving the right to sue or appeal – even if the dealership committed fraud. By agreeing to binding arbitration, you waive your right to sue, to participate in a class-action suit, or to appeal the arbitration decision. Dealerships use these agreements as a way to avoid costly court judgments and often pick the arbitration company.

A car buyer should also watch out for the shady practice of loan “packing” or “loading”. This starts with a salesperson or manager calculating an inflated estimate for a car loan. This creates "room" for the dealership to add in (or "pack") the sale with other products, such as credit insurance, service contracts, environmental protection packages, etc. Although the manager is adding these optional services to complete the over-calculation of the monthly estimate, he will often tell the consumer that the services are "included" in the monthly payment. What isn’t clear is that these are add-ons that you’re paying for. Not only is the consumer charged for something he or she was led to believe was free, but dealerships will often overcharge the consumer for those optional services.

Credit for Young Adults

Why Do You Need Credit?

As a young adult, you'll need credit for immediate reasons like the following:

  • Renting an apartment
  • Getting phone service
  • Financing a car
  • Paying tuition, book, and other school expenses
  • Spreading out payments on high-dollar items

With a good credit history built up, you'll have access to credit later on for things like the following:
  • Getting a job
  • Qualifying for loans for cars, furniture, wedding expenses
  • Making urgent repairs to your car
  • Getting emergency medical care
According to the Jump$tart Coalition for Personal Financial Literacy, the average high school graduate lacks basic personal financial management skills. Yet, two-thirds of college students currently hold credit cards. What happens between the lack of skills in high school and the responsibility of credit in college? Not enough education, according to many experts. Although college prepares young adults for the job market, many graduates enter the real world with a "learn as I go" approach. This lack of education, combined with financial management trial and error, is a recipe for disaster.