AUTOMOTIVE SERVICES

Car Loans

Car loan is a loan provided to buy new or used car by the financial The actual price of a car depends on many things including; historical sale prices, current demand, location and the vehicle’s condition (brand new or used).

Financing a car purchase requires some research. Before venturing out to the car dealerships, take a look at what you need to know about the car buying process.

First of all, about 75% of all new car purchases are financed. So unless you plan on paying cash for your car, or you are going to apply for a car loan, chances are you will be financing your purchase and online finance stands out as a great option.

Other essential steps to remember before purchasing a car -

• Must have a budget
• Obtain the credit report
• Get a suitable loan
• Visit websites and dealers to collect the information such as price, model and warranty of cars
• Arrange financing online
  

A car buyer can apply for a loan directly or through online companies. In order to qualify for a prime car loan, your credit score must be above 680. The greatest benefits of online car loan companies are zero application fees, fast approval and online access to the loan account and it is easy to compare the price & interest rates with that of the dealers. Usually the interest rates of online companies are lesser than dealers. Customers have the right to know how much it will cost including interest rate, trade in value, taxes, cost etc. The main benefits of getting a car loan from online lenders can be summarized as follows:

• Lower APR
• Fast Approval
• No hidden fees & prepayment penalties
• Excellent service
• Free price quotes
• Easy to compare dealer quotes

Car Dealer Quotes

If you did not have enough experience in car buying, dealers could easily cheat you on offers - it is therefore wise to research before entering into the car market.

Now, many books and websites are available on current trends, prices and offers in the trade. You can manually search for information in a suitable publication like Annual April Auto issue of Consumer Reports or Edmund’s Specialty Auto books. Dealer costs must be calculated before showroom visits, it is simple enough for one to determine how much the car originally cost the dealer. It is best you research apply for online dealer quotes to gauge the market; you could also directly contact the dealer for cost and finance details.

Benefits of dealer quotes

• Free price quotes
• No obligation
• Save on time and money
• Provides vehicle overviews
  

How the dealer quotes work

• Select the vehicle you want
• Apply for a dealer quote
• Local dealers contact the customer
• Select the best dealer
• Dealer arranges car loans
• Choose the best lender
• Close trade
  

You have to fill-in with the make, model and year of your dream car and local dealers will contact you with various offers and benefits. That means, one query will produce multiple results, you can select the best offer to suit his needs. Dealers can arrange test drives and financial assistance too.

Auto Warranty

Average repair cost for a vehicle over five years is estimated to be $3,000. Most of the new vehicles come with factory warranty of maximum of 3 years or 36,000 miles. However, in most cases the parts will not break down within that period, if there’s not the security of an extended warranty after the expiration of manufacture’s warranty, it will lead to unexpected financial burden at the time of repair.

New cars have complex parts and systems such as fuel injection, computerized systems, and anti-lock brakes and are very expensive to repair. It is therefore a good idea to buy an extended warranty, before the original warranty expires - the most powerful way is buy an extended warranty at the time of vehicle purchase. At the time of a new car purchase, the price of an extended warranty will be inexpensive, warranty prices start to increase with the age and distance covered.

Benefits of extended warranties are –

• Towing
• Car rental
• Toll free assistance
• Trip interruption
• Lost key lockout
  

Additionally, extended warranty is transferable and it increases the resale value of a vehicle.

Extended auto warranties come with different levels of coverage. There are two types of warranties available with new vehicle: Bumper to Bumper and PowerTrain warranties –

Bumper to Bumper warranty covers all the parts except the "wear" items such as Brakes and tires, the Powertrain warranty covers Engine and Transmission. Some auto warranties cover only mechanical breakdown. Better warranties will cover mechanical breakdown, wear & tear and overheating.

Some factors you must consider before selecting an Auto Warranty product are - Experience, proven track record & financial strength of the company. Most of the car dealers also sell extended warranties but at a premium. It is better if you shop around for warranties online to save time & money.

Car Trade-In Quote 

The trade in value is the amount a customer gets for his old car. There are lots of books available online and at many banks, libraries and credit companies. There are many factors affecting the trade in process. There are two benefits to trading in an old car.  Most states collect sales tax only on the difference in price between the trade-in value and the price of the new car.  This helps to thin the gap between the actual trade in value and what one might get if he sold it separately. 

The trade in value and how much amount the owner may still owe on it is one of the most important factors involved with buying a new car. Any equity that he has in his trade in should add to your purchasing power. Before contacting a dealer, the owner should make a thorough research about the market price of such a used car. A good appearance has the power to increase its trade-in value at the dealer. It is not wise to enter into the market before getting the full idea of the car trade in value. But one should also keep a few things in mind - If one sells his car by himself, there is complex and tedious processes. He will need to advertise the car, handle phone calls, make appointments, allow strangers to take the car for test drives and accommodate scheduling appointments with their mechanics.  

It’s better to apply for some trade –in quotes. It is very simple too. Customers have to enter make, model and year of their car and many dealers will contact with various offers and benefits. They will provide the help to buy a new car too. Customer can select the one best suit his needs. Trade-ins are simple and easy because the dealer handles the paperwork and the credit can provide a down payment on a new model. However, one will probably get less for his vehicle, whether it’s a lower trade-in quote or a higher final price on the replacement car. It’s best not to bring up the trade-in until agreed on a purchase price for the replacement car. This will help keep the transaction separate so the trade-in doesn’t go back to the dealer in the new car purchase.