.: Used Car Loan Value And How It Can Impact Your Bottom Line
Category:Home / Finance / Credit / Loans
New cars are an expensive investment. Come to think of it, all cars are an expensive investment. But new cars are even more expensive compared to used cars. And with today’s present economy, lots of nervous folks have come to see the better sense in buying used cars as opposed to buying a new one.
A new set of wheels could cost you around $21,000 plus. Already, this is a big financial commitment even in the best of times. But what about when times are tight? Can you still afford to spend that much on a car? And is it worth it?
It takes 19.9 weeks of median family income before taxes to buy a new car. The Auto Affordability Index compiled by Detroit-based Comerica Bank stated this in their report during the third quarter of 2003. If you calculate it right, 19.9 is roughly five month’s worth of salary spent on a car alone. Is this a wise way of spending our hard-earned money? A lot of people disagree. It’s simply foolhardy to spend $21,000 on a car when the economy is slowing and the headlines are filled with job layoffs.
Fortunately, many car buyers like yourself are afforded many loan value options which you can take. Loan value for used cars in the market is flourishing in these hard times strangely enough. In fact, millions of cars come off lease each year and that leaves you with tons of 2 to 4-year-old vehicles to choose from. Not really a bad scene when you think about it. With all these options, you can certainly take your sweet time when considering getting loan value for a used car.
Lenders pay attention to Used Car Loan Value
When financing a used car, most lenders you’ll find will only offer finance for its loan value, instead of the vehicle itself. Cars are important investments as many of you may have realized already. So never mind if it’s a used car or a new car, cars are assets which you can make use of when money is tight.
The loan value of a used car is generally lower than the purchase price of the car. But if you know what the loan value of your used car is, you can compare that to the purchase price. The result of your comparison should give you a rough estimate of the amount of money you would have to put down for your car. As previously stated, lenders pay more attention to the loan value of your used car than on the vehicle itself.
Used Car Loan Value: Knowing what your loan value is saves you time and trouble
Knowing what the loan value of your used car is gives you an estimate of what you need to come up with when you apply for car loans. Let’s say your dealer sells you a used car for $5,000. The loan value for that car should be around $4,000. That leaves you with $1000 if you compare the purchase price with the loan value. This should be the amount you would have to play with when negotiating for down payments. By knowing this, you save yourself from the trouble of applying for auto loans for a car that is well above your means or not within your price range. Aside from that, the loan value of your used car can also keep you from getting short-changed on a car that is less than what you can really afford.
Article Source: http://www.articles32.com
Learn how to eliminate speeding tickets. Feel free to reproduce this article as long as there is an active hyperlink accompanied with it.
.: New Loans Articles
1). Tell You More About Intended Payday Loans
Payday loans are intended to tie borrowers over until the next paycheck arrives. The downside is payday loans have steep fees and APR (Annual Percentage Rates) and can lead to bankruptcy and debt.
2). How To Get Your Unsecured Business Loan
If you just had more money, you are sure that your small business can take off to the next level. The assets that you might use for collateral are all tied up - leaving you with none available.
3). Secret of Credit Score Range
Commonly credit score range used by credit bureaus.
4). Guide to Credit Score Online
The secret of free Credit Score.
5). Are There Any Benefits To Owning A No Annual Fee Reward Credit Card?
Are you thinking of applying for a credit card that do not carry any annual fees but hesitant to do so? Did you ever wondered why credit card companies are willing to forgo the revenue from the annual fees? Are there real benefits from owning such a credit card or it is just another marketing ploy used by the credit card companies? Read on to find out the answers to all these questions.
6). Online Pay Day Loans Canada: Cash in 24 Hours
Online pay day loans in Canada provide a quick rescue when you have a financial emergency to cover immediately. Imagine if you are just handed a bill of $500 for your car repair. Your pay day is still weeks away and you are tight in cash already, not too mention if there are outstanding bills to be paid.
7). Everything You Need to Know About Secured Loans
With the rise of house prices, if you need some extra cash to fund a special purchase, taking out a secured loan just may be the right option for you.
.: Top Loans Articles
1). Help! My Friend Wants Me to Cosign A Loan
Many people find it difficult to get a loan if they have bad credit. For them one of the easy ways to get credit is through cosigning a loan. If you have been asked to cosign a loan by your friend or relative, there are several things you need to consider before asking where to sign.
2). No Teletrack Cash Advance – Avoiding Financial Difficulties
Fast and easy cash advance with no teletrack is ideal for you in case of financial emergencies. Companies offering no teletrack cash advance offer short term, low amount loans, lasting between 7 to 21 days – and hence do not verify information using the teletrack system.
3). Let Your Dreams Come True with Bad Credit Secured Personal Loan
Are you not able to fulfill your dreams just because of your bad credit score? Thanks to bad credit secured personal loan, with the help of which you can grab your dreams without any hurdles. Different people have different requirements and it is the occupation of this loan to give a better path to satisfy their necessities.
Bad credit secured personal loan is meant for homeowners who don’t have any problem in putting their property as collateral against the loan amount.
4). Unsecured Personal Loans For Non-Homeowners
Unsecured personal loans are especially fashioned to provide for the financial demands of tenants or non-homeowners. Tenants commonly do not own property to use as collateral. Many lenders are willing to work with individuals who have no personal assets. Interest rates may be a little higher and the loan amount can be limited. This type of loan is considered one of the more flexible loans with no mandatory collateral required, which is why it is known as an unsecured personal loan.
5). Do You Struggle to Get Business Credit without a Personal Guarantee?
Getting business credit can be a dificult thing to do. Lenders do not want to finance your venture if they don't believe you have a stake in the business. However, if you can overcome their doubts, you will be able to get separate credit in your business name.
6). Unconventional Job? You Need An Unconventional Loan!
Many people have dreamed of starting their own business, and it can certainly be satisfying. But what happens when you need a loan? If you’re self-employed, even if you have an excellent credit history, you may find it hard. Even though the banks are more flexible these days, and loaned out £41.2 billion to those working for themselves or with less than perfect credit scores, an amazing nine million people were turned down for a loan last year.
7). How To Do A Credit Card Debt Consolidation
Credit card debt consolidation allows you to pay your current debts in 3-6 years. Under a debt consolidation plan, terms and conditions change. The purpose of debt consolidation is to speed up your paying time and at the same time makes lower monthly bills.