Category Archives: financing

Can I Refinance My Car Loan? Answers

Is it possible to refinance and lower my car payments?

refinancing a carMaybe.

Let’s explain.

It is natural to consider refinancing a car loan as a way to reduce monthly payments but it may not always be possible

Under the right conditions, you can lower your payments as well as reduce your total finance charges.

Under other conditions, refinancing may not make sense.

In some cases it might not even be possible.

Let’s explain.

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Best Car for Teenagers? Explained

What car is ideal for teen drivers?

cars for teen driversAsk a teenager what car they want and then ask their parents what car they prefer for their child. You can get some pretty different answers. However, you just might get some surprising agreements too.

We hear teens asking the same questions over and over again. “Which is the best car for me?”, “What car should I get?”, “What is the best car for a first-time buyer?”, and “Which car has the best reliability-safety-style-performance-gas mileage-cost?”

We will try to help answer those questions here in this article.

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Can I get a car loan?

Will I be able to get approved for a car loan?

approval for car loanThis question typically comes up if the potential car buyer 1) has never had an auto loan before and doesn’t know how the process works, or 2) has credit or income issues that might prevent them from being approved.

For those who are new to the car loan process, let’s briefly review how it works.

First, in order to get a car loan, you must be at least 18 years old (to legally sign contracts), have good credit, and have a good steady income.

Many young people, such as college students,¬†who have never had a loan before may have no credit history and have little or no income. For them, if they can’t pay cash, getting someone to be a co-signer on the loan is the only remaining option.

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Can I afford this car? What car can I afford?

How much car can I afford to buy?

afford carBased on my monthly income, can I afford the car I want?

This is a common question but doesn’t have a set answer.

The answer depends on the following factors, assuming you will use an auto loan to pay for your vehicle:

  • price of the vehicle, including tax and other costs
  • cost of full-coverage insurance, as required by your lender
  • your monthly income, after taxes
  • your monthly expenses
  • your credit score (affects the amount you can borrow)
  • the amount of down payment you can afford

Some experts say that your car payments shouldn’t be more than 20% of your take-home pay. Others are more conservative and say 10%.

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Buying a Car – No Credit

buy car with no creditIs it possible to get a car loan with no credit?

Yes, it’s possible and, depending on your particular circumstances, you may have several options available to you.

With no credit history, you may still have a credit score, although it isn’t likely to be very high, but enough to get you in the door with a car loan.

Since there are no hard-and-fast rules for how banks, credit unions, and auto finance companies handle no-credit situations, we’ll offer a number of suggestions, but the real secret to getting approved is to try, try, and try again at different dealers and lenders to maximize your chances.

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