Even with American automakers’ very public struggles to stay afloat, many financial and business experts agree that the American automobile industry will never disappear. But a perfect storm of rising inventory, greater competition and economic factors make this summer a particularly good time to buy a new car. 

Factors driving the trend include: 

* Ample inventory – Right now, most American auto dealers have about a six-month inventory of new vehicles on their lots. That means if they stopped adding cars to their inventories tomorrow, they’d still be able to sell for six months before they ran out. 

Ideally, dealers prefer to keep smaller inventories — just a few months’ worth — because every unsold vehicle costs them money the longer it sits on their lots. For potential buyers, this excess of inventory means more motivated dealers and a wider selection of makes and models to choose from — even high-demand hybrids. 

* Incentives – From zero percent financing and no-money-down deals to low interest rates on shorter-term loans, dealers are offering a plethora of incentives to woo buyers. Rebates and employee pricing have been around for a while, but last year several car companies introduced programs that promise to make at least some car payments for you if you lose your job (and income) within a certain time frame after buying one of their cars. With the arrival of warm weather – traditionally a prime car-buying season – dealers and automakers are rolling out new incentives every week. 

* Financing – With competition for your car-buying dollar expected to become even fiercer, your financing options may soon expand. You’ll be in an especially good position to land a deal if you know the power of your credit score prior to negotiations. 

Your credit report and score give lenders a better idea of what kind of credit risk you may be. The higher your score, the more likely it is that you will be able to negotiate good finance terms for your auto loan. 

If you don’t know what’s on your credit report, find out before you head out to the dealer’s lot. Web sites like FreeCreditReport.com give you instant access to your free credit report and score with enrollment in their in Triple Advantage Credit Monitoring membership. 

* Competition – Not only are new car dealers competing with each other, they’re competing with a booming used car market. More Americans are opting to buy used vehicles, perceiving them as cheaper to purchase. Yet new cars most often cost less to operate and maintain, so buying a new car now (when everyone else is looking for used) may actually make greater economic sense for you in the long run. 

Finally you might consider buying a new car because it’s one way you can actually help the economy. Recovery from the recession is everyone’s concern and responsibility, federal officials have said. Contributing your hard-earned dollars to support a vital American industry can not only put you in a new set of wheels you’ll enjoy for years, it can give you a sense of doing your part for the economy as well. 

Courtesy of ARAcontent

Related posts:

1. Three Steps to Saving Money on New Car Financing
2. What You Need to Know Before Buying a Car
3. Used Car Parts Software

The Age Of An Antique Car

A classic car is one that is more than 15-years-old while an antique car is more than 25-years-old and a vintage car is even older than that.  Owning one of these cars is not just a matter of pride, but it is also somewhat of a prestige symbol as well.  However, you should know that having an antique car is going to cost you more than a new car would cost you because there are many people who are also pursuing this hobby.  This is where antique car financing can come in handy.

Financing An Antique Car

If you think that you can afford an antique car, you will need to do some homework to make sure that you know the real value of the antique car that you want to purchase.  You should also know how to look for any alterations or flaws in the car as they will noticeably affect the car’s value.  Of course, you will also want to make sure that the car will be worth more money if you should happen to want to resell it later on.  Once you do these things you can turn to almost any lender for financing but you will want to take the time to search for the loan that will best suit your needs.

There are many lenders who specialize in antique car financing.  All of them will require that you have excellent credit and valid proof of your income.  Of course, this does not mean that if you are self-employed that you will not be able to get financing, but you are going to have to be able to produce income statements in order to prove your income.  The majority of these lenders are going to require that you put down at least 10% of the car’s purchase price.  However, you will want to take the time to look at the terms before you sign any contract since interest rates and down payment may vary from one lender to the next.  However, most of the time they will be based upon your own personal credit profile.

Related posts:

1. Three Steps to Saving Money on New Car Financing
2. The Complexities of an Antique Car Loan
3. A Lifelong Hobby as an Antique Car Collector

Banks vs. Antique Car Loans

Acquiring an antique car loan is not so simple as heading to the local bank and filling out an application. Well, let’s be a little more accurate here: it is quite easy to head over to you local bank or credit union and fill out the application. The problem is that the bank will deny your loan application as soon as they discover it is for a classic, antique car.  Banks simply have no vested interest in lending money for such a purchase. This is nothing “personal” per se, it is simply not the banks wisest option to get involved in such a purchase because of the complexities involved. Consider the following: if the person whom the bank has lent the money is in default, the bank now must repossess the car. In order to recoup its investment, the bank must sell the car and selling an antique car will be incredibly difficult as this requires specialized experience. Additionally, the price the lender paid for the car (and the amount of the loan) will be based on the collectible value of the car. Now, imagine if the person did not properly take care of the car and it has become devalued? The bank will automatically take a loss due to the fact that the market value of the car has dropped stratospherically in price. Again, it is simply not in the best interest of the bank to make an antique car loan.

The Private Antique Car Loan Option

The way to acquire an antique car loan is to seek private financing from a lender who specialized in such loans. Granted, one must realize that such loans may come with higher interest rates and stricter terms, but this is the nature of such loans. If you are in the market for an antique car and are willing to pay the premiums required to finance such a purchase, then this is the route you should take. If you do not feel comfortable, then perhaps you should rethink you purchase. After all, you want to do what you feel most comfortable doing or else you may undermine you own pursuits.

Related posts:

1. The Necessity of an Antique Car Appraisal
2. Financing Your Antique Car
3. Knowing About Antique Car Prices Is Important

Check Your Credit Score

A survey conducted in July 2006 by AWARE, a nonprofit consumer education group focused on auto financing, found that 54 percent of consumers will check their credit score before purchasing their next car or truck. Knowing your credit score helps you understand how dealers and auto lenders evaluate your credit risk and the interest rate for which you likely qualify. Having this information at your fingertips is the first step in preparing to negotiate for the best terms possible.

Compare Interest Rates

Comparison shopping means more than just pricing out the car or truck you want. Also investigate interest rates on financing from different sources. Start with the relationships you already have – your bank, credit union, finance or mortgage lender. Auto dealers also can offer a range of options from multiple sources. Another resource is the Equifax Rate Finder, a free tool that tells you the interest rates lenders are offering on a specific loan type to consumers with your FICO credit score in your geographic location. This information can confirm when you have found a good deal, or point you in the direction of a better one.

Once you have decided on a vehicle and you are ready to finalize your purchase, you still have one more opportunity to lower your costs.

Negotiate Your APR

Ask about special financing incentives – these are often limited to certain models, makes or model-year vehicles. If no special financing offers are available, you can negotiate your APR just like you negotiate the price of the vehicle. Keep in mind that credit history, current interest rates, market conditions, special offers and competition can impact the interest rates you are likely to receive. Having a holistic picture of your credit history can help strengthen your negotiating position.

Score Power, available at www.equifax.com, is a convenient way to learn more about your credit score. This tool comes with a copy of your Equifax Credit Report, an explanation of what your score means, information on how it compares to national averages and a graph of how lenders view you. You also can use the Interactive Score Simulator to understand how your actions may impact your score.

It may not be the most exciting part of buying a new vehicle, but the extra research you do to secure favorable financing can yield big dividends in the form of lower monthly payments. Happy shopping!

Courtesy of ARA Content

Related posts:

1. Financing Your Antique Car
2. New car shopping? Why the time is right, and why it’s the right thing to do
3. What You Need to Know Before Buying a Car