Getting the Best Auto Loans

Buying a vehicle outright is not likely possible for most consumers, and
quite frankly, really is not practical. Taking advantage of an auto loan is
probably going to be your best option when buying a new or used car. Featured
below is information that will help you get the most car for your money and the
best interest rates for your financing.

Mortgages and Auto Loans are not the Same!

When in the market for a new home, you should like to buy as much house as
you can. It is not a bad idea to leave as little of a down payment as you can.
Dissimilar to cars that go down in value over time, otherwise known as
depreciation, the value of most homes and properties rise in value.

On the contrary, when you finance an automobile, you want to put down as much
money as you can afford for your down payment. This will result in you borrowing
less, as well as avoiding owing more for your car than what the car is worth
(otherwise known as being upside down on your car loan) because of new car

Understanding Interest Rates

No matter if you are buying a car from private party or from a dealership, it is
always a good idea to compare auto loan rates from several different banks and
online sources. New car loan rates are generally lower than rates associated
with used cars. However, you can save money by buying a ‘certified pre-owned’
car. Buying certified pre-owned will allow you to buy a high-quality used car
with interest rates similar to new cars. Also, if you are buying a car from
dealer, interest rates will be lower than when buying from a private party.

It is important to understand that if you have poor credit, or no credit,
interest rates you receive are going to be higher than if you have good credit.
However, if you can maintain a positive payment history for your auto loan, you
can consider refinancing at a lower rate after a year or so.

**When purchasing a vehicle from a dealer, never discuss your need for financing
until a final sale price is agreed upon. Dealers will always look to squeeze
every penny out of you. Mentioning your need for a car loan will most likely
result in a higher sale price.

Auto Loan Terms

Car loan terms generally range between 36-60 months. Your monthly payments will
be lower the longer your finance your car for. However, the longer your car loan
term is, the more money you will end paying in interest over the entire span of
the loan. As a result, choosing the length of your auto loan is going to be very

Also, if you like to trade your vehicle in, or sell every few years, a long auto
loan term should be avoided. Why? If you have three years left on a five year
loan, you will lose money as a result of owing more than the car is worth.

In conclusion….

The decisions you make when buying a car will either save you money, or make
you lose money. You need to do your research, remain calm and never buy on
impulse or be forced into purchasing a car that you do not really like.

Federal Auto Auction – Find Your Salvaged Car With Best Quality

A federal auto auction is an affordable means of buying salvaged cars. At these auctions a person can find fantastic cars at surprisingly low prices. The schedules of these auctions are well-publicized in the newspapers, magazines, and on websites by the police and government departments. A person can go to these auctions and have a look at the vehicles that are on display. Even if you are not too interested in buying cars from such auctions, you might just find a car that fits your requirements perfectly. This might prompt you to even change your mind.

The vehicles available at a federal auto auction are collected from a variety of sources. On many occasions, these cars have been confiscated on being involved in criminal activities. There are some vehicles which are salvaged due to tax violations too. Banks also repossess a car if a person has defaulted in making a loan payment. Then these cars are placed by the banking authorities in the federal auto auction so that a portion of the money can be retrieved. But you do not need to worry about the various reasons for which those cars are there as the automobiles that are being sold at these auctions are all being done in a legal manner.

Not only are cars available in these auctions but one can also find motorcycles, trucks, jet skis, vans, and RV’s out there on the auction block. Since great deals are often got at these auctions, buyers from the various car lots are also present along with the general customers. For getting detailed information on federal auto auctions, the internet can prove to be of immense help. Registration and fees for participation is required in some auctions. After registering, the person gets a chance of previewing the vehicles kept for sale. This is very helpful in helping you to make buying decisions beforehand.

The main prerequisite to buy a salvaged car from a federal auto auction is the right age. An individual needs to possess a valid driving license and needs to be more than eighteen years old. The mechanism of the federal auto auction is similar to any other conventional auction; the highest bidder gets to win the car/vehicle. The payment has to be made after the auction finishes and one must be prepared for that. The payment modes are generally kept flexible and a person can use certified checks, credit cards, cash, or money orders to make the car purchase.