How Is the Length of a Loan Determined on a Car Loan ?

Buying a car can have a major impact on your personal credit and your monthly budget. Of course, you want to make sure that the monthly payment is something you can afford. But how much are you willing to spend after interest is tacked on? Are you planning to drive the vehicle for a long time, or do you prefer to trade in your car after a few years? These answers all affect the length of your car loan, and, to some extent, you determine it. You’ll Need...

Millennials are Driving the Auto Loan Surge

It’s a refrain you hear quite a bit on the news; people under 30 just aren’t driving as much. They aren’t buying cars, they aren’t getting on the road, and what does this mean for the auto industry? Well, as it turns out, it’s not that they aren’t buying cars … they just needed to wait to be able to afford them. First-Time Buyers TransUnion recently surveyed a recent swath of auto loans, looking specifically at buyers who ranged in age from 18 to 34; for...

Pointers for Quickly and Efficiently Paying Off Your Auto Loan

With the current car payment averaging $482 a month, paying off your car loan early is a great idea. Being free of a loan saves money on interest, raises your credit score, and increases monthly cash flow. Automate Your Payment Payments for most auto loans can be made through auto debit or with bill payment through your bank. Having payments sent automatically means no chance of spending a paycheck before your car payment is due. Automation also means...

Can Older Adults Get a Discount on Auto Insurance ?

Auto insurance companies generally price insurance premiums based on the risk they think the person they’re insuring presents, among other factors. If in the company’s opinion, based on statistics, you’re more likely to get in an accident than the average driver, you’ll probably pay a higher-than-average premium compared to other policy holders. Age-Based Premiums According to the online auto-buying resource CarsDirect, once drivers hit the age of 60,...

Can Buying a New Vehicle Drop Your Credit Score ?

Any time you buy something on credit; it has the potential to impact your credit score. Buying a car is no exception. However, credit purchases can also positively affect your credit score. Since a credit score is a reflection of your overall credit behavior at one particular moment, buying a new vehicle will only reflect one fraction of your total credit score. Credit Scores Credit scores are a complex combination of a number of different factors. The...

Going Through Bankruptcy? An Auto Loan is Still Possible

Bankruptcy is a tough time for anybody to go through. It can be financially difficult and emotionally draining, and, if your car breaks down in the middle of the process, it can feel like you’re just facing yet another setback. But don’t assume that getting a car loan will be impossible if you’re going through bankruptcy. Bankruptcy And Car Loans It may seem counterintuitive, especially if you’re in the process of liquidating your finances or...

U.S. Auto Loans, Sales, Keep Rising

It’s a question that the entire auto industry finds itself asking: Can 2015 beat 2014 on car sales? It’s a tall order; 2014 was a record breaking year for both cars sold and loans originated. And it looks like 2015 might be up to the task of beating it.The latest numbers paint a very strong picture of a boom in progress. May saw a high of 17.7 million vehicles sold off of dealership lots, the strongest month since the industry set a sales record in 2005....

How Long Should My Car Loan Be for ?

Car loans have three core pieces: The principal, or how much you’re borrowing; the interest rate, or how much more you’ll pay on top of the principal to purchase auto financing; and the term, which is how long you’ll be paying off your car. And while that last part may seem simple, in truth how long you take to pay off your car can have an enormous effect on your finances. Why Is My Car Loan Term Important? Many of us think of the car loan term as just...

Why You Should Think Twice Before Settling on a Long Auto Loan

Auto loans are getting longer and longer. Just a decade ago, a five year auto loan was unusually long; now, six and seven-year loans are becoming more popular, with nearly a quarter of all new loans using these new, longer terms. But while they’re tempting, they’re not for everybody, and customers should think carefully before they sign. Long-Term Loans, Short-Term Thinking Longer terms are popular because they cut down your overall monthly payment....

4 Huge Reasons Auto Loans Just Make Sense

Personal finance experts claim when it comes to purchasing a vehicle, cash is the best way to go. Their reasoning is that by using cash, consumers do not pay any interest, and this results in getting the most for their hard-earned dollars. Buying a car with cash sounds like great advice in theory, but when it comes to real-life situations, it’s not always practical. Life is full of other needs and expenses that eat up the family budget. Cars are a part...