You may wonder what homeownership has to do with car loans and why would lenders offer special deals on car loans for homeowners. Truth is that homeownership provides a lot of benefits when you apply for almost any kind of loan, and car loans do not happen to be the exception for this loan market’s rule.
Nevertheless, there are certain things that you need to understand when it comes to car loans and homeownership, so you can decide which loan best suits your needs when you are looking for car financing. In any case, homeownership will contribute a lot to securing for you the best loan terms on the particular loan that you choose.
Dealership Financing
You may have heard a lot of advice against financing through dealerships. Truth is that loans provided by dealerships usually do not come with very advantageous loan terms and thus end up being more expensive than other car loans provided by banks and financial institutions. This is due to the fact that dealerships are not specialized on loans and thus are only intermediaries adding additional costs to the loan process.
Now, you have another reason why you should not resort to dealership car loans when searching for financing to purchase a car. If you are a homeowner, you can not take advantage of the benefits homeownership provides through loans that are granted by dealerships. This is due to the fact that car loans provided by dealerships are pre-defined and can not be customized for the borrower.
Car Loans and Home Equity Loans
It is an excellent idea, if you have sufficient equity on your home, to request a home equity loan and use the money obtained to finance a car purchase. This method of financing has many advantages and few drawbacks, the main one being the risk of repossession of the property that will trigger if you fail to repay the loan’s monthly payments.
But home equity loans provide an inexpensive source of funds for car purchases because the interest rates charged are lower than with car loans; the repayment programs are longer and thus the monthly payments are lower, and you can also obtain higher loan amounts that, due to your income, you may have not been able to obtain through regular car loans.
However, the fact that you are a homeowner, even if you decide not to use your property as collateral and resort to regular car loans, can provide you with very advantageous terms because it greatly reduces the risk of lending to you. Thus, car loan lenders that are accustomed to dealing with all kinds of applicants [sic] will take note of the fact that you are a homeowner and provide better loan terms because you represent a lower risk of default.
Compared to non-homeowners, you can get on your car loans, lower monthly payments, flexible repayment schedules, very competitive interest rates and higher loan amounts though not as high as the ones you can obtain with a home equity loan. Thus, consider all your alternatives along with your needs and do not forget to mention the fact that you are a homeowner when requesting loan quotes. It can make a big difference.
By: Amanda Hash
Lifted from this source: ArticleBiz.com
About the Author: Amanda Hash is an expert financial consultant who specializes in HomeOwner Loans and Unsecured Loans. By visiting http://www.yourloanservices.com/, you'll learn how to get approved and recover your credit.
Friday, March 28, 2008
Thursday, March 27, 2008
Purchasing Your First Car
With new cars, everything seems hard to do. Like [sic] picking the right car and knowing what is best for it; picking a car that will not depreciate its value in time too much so that you can sell it at a high price later; how much will the maintenance of your car cost you each month and how much will the insurance cost, and so on; these [sic] are a [sic] few questions any responsible future car owner asks themselves. The reasons are rather simple and straightforward.
Of course, the pressures applied to you by the car salesman that keeps babbling about how good one car is [sic] and how good another is does not make your choice any easier [sic].
First, before you go anywhere to buy anything, you must decide what cars are right for you [sic]. Do not go overboard; you need to pick a car that corresponds to your budget and payment threshold.
So, before you head out to the first car showroom, check exactly how much you can spend and how much you are willing to spend, taking into consideration other expenses that may appear through time.
In addition, when checking for car prices, make sure you find the one that includes all the taxes so you will not have an ugly surprise later. Buying a car is not an easy thing to do, especially if you are doing it for the first time, and a bunch of advice for dealing with the situation are most [sic] welcome.
Throughout this article, I have [sic] noted a few important things; but you can always talk to someone who is in the business or who has bought many cars, or you can [sic] talk to a friend who has bought a car lately.
Yet, the most important thing when going to buy a new car is that you should be very relaxed, positive and patient, these being two attitudes that will almost ensure a great deal rather than being [sic] paranoid or overly [sic] aggressive [sic].
This is just the beginning; you can check one of the many car-buying guides that can be found on the internet, and be very careful at their content; read the whole review or article and do not just go through it briefly. It is very important to understand that most of the time buying a car is like a poker game for which [sic] you first have to know all the rules by the heart, learn the card dealer’s scams, and have a bit of luck as well.
A rule of [sic] thumb is that you should never buy the first car you see; and obviously, do not believe the dealers when they babble that they have the cheapest prices in town of that car, or that they have the best ones -- that is just one of their many stories.
By: dennisjames
Lifted from this source: ArticleTrader.com
About the Author: Dennis runs Car Dealer Check, which is an independent Car Dealer Ratings site written by the car dealerships' customers with Car Forums.
Of course, the pressures applied to you by the car salesman that keeps babbling about how good one car is [sic] and how good another is does not make your choice any easier [sic].
First, before you go anywhere to buy anything, you must decide what cars are right for you [sic]. Do not go overboard; you need to pick a car that corresponds to your budget and payment threshold.
So, before you head out to the first car showroom, check exactly how much you can spend and how much you are willing to spend, taking into consideration other expenses that may appear through time.
In addition, when checking for car prices, make sure you find the one that includes all the taxes so you will not have an ugly surprise later. Buying a car is not an easy thing to do, especially if you are doing it for the first time, and a bunch of advice for dealing with the situation are most [sic] welcome.
Throughout this article, I have [sic] noted a few important things; but you can always talk to someone who is in the business or who has bought many cars, or you can [sic] talk to a friend who has bought a car lately.
Yet, the most important thing when going to buy a new car is that you should be very relaxed, positive and patient, these being two attitudes that will almost ensure a great deal rather than being [sic] paranoid or overly [sic] aggressive [sic].
This is just the beginning; you can check one of the many car-buying guides that can be found on the internet, and be very careful at their content; read the whole review or article and do not just go through it briefly. It is very important to understand that most of the time buying a car is like a poker game for which [sic] you first have to know all the rules by the heart, learn the card dealer’s scams, and have a bit of luck as well.
A rule of [sic] thumb is that you should never buy the first car you see; and obviously, do not believe the dealers when they babble that they have the cheapest prices in town of that car, or that they have the best ones -- that is just one of their many stories.
By: dennisjames
Lifted from this source: ArticleTrader.com
About the Author: Dennis runs Car Dealer Check, which is an independent Car Dealer Ratings site written by the car dealerships' customers with Car Forums.
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