Car Finance Basics

There happens to be a lot of different things that people do no understand when it comes to getting yourself a new vehicle whether it is through leasing it or buying it, it still requires some information to know how it really does work. The thing that you should keep in mind the most is that a car dealership does not typically finance a car lease or a loan but in turn they will most definitely have some sort of impact on how much you will end up paying on your car financing.

One good thing to keep in mind is that a car dealership will always sell you a vehicle for cash in hand. These people are third party businesses that have purchased a franchise from one or multiple different car makers in order to sell the vehicles. They do not work for these car makers and always work for themselves. It is important to realize that the dealers buy these cars themselves usually through the use of a very large loan through a bank or another type of financial institution and as a result they are also charged rates of interest on these car loans. They then need to sell the cars off in order to pay off their initial loans as well as all of the other associated costs that come with running a car dealership.

Dealers will always get cash for a vehicle that they sell to someone, it could either come from the consumer himself, or some other financial institution that has loaned out the finances to a consumer in order to purchase the vehicle of their choice through an auto loan. People are usually under the misconception that they will be able to get a discount or a better deal if they pay for a vehicle in cash but this is not the case because they in fact will make more from raised interest rates and commissions if you go about financing the vehicle itself.

When a car dealership sells a vehicle to a consumer he will usually push onto them the typical bank or financial institution that they have working with them in order to get their financing settled. A lot of these dealerships will use some of the more well known and major financial institutions that have special deals with the car makers if you do not already have one and you would be paying an additional premium for that luxury. As a consumer however, you have the ability to bring on your own auto financing company if you would like to. The point of stating this is to make it perfectly clear to you that a car dealership does not finance a loan to a consumer at all. They will not process the loans or even take payments on the loans themselves, all they will do is take the application papers that you fill out and will try to arrange some sort of financing with companies that they usually work with for a small fee.

Now a dealer could go about checking your credit history, but this is not for the purposes of getting you the consumer a car or vehicle loan, but is done in order to figure out quickly whether or not the consumer would even be capable of getting a vehicle or if they have any serious credit issues that are currently outstanding. The dealer is not the financial institution and is unable to approve you the consumer for a loan. The financial institution that the dealership forwards your filled out application to will do their own set of credit history checks as well as check out your past payment history and your overall debt to income ratio. This check is a lot better done then what a dealer could possibly do so if you happen to have a dealer check out your credit and tell you that you are alright, they really may not have any idea at all so keep this in mind as well.

When the financial institution is done checking out your credit worthiness you will be classified in one of three types which are prime, near prime, and sub prime. Prime means that you have a great credit profile and have a higher score usually above six hundred and eighty, as a result of this you will be offered the best possible interest rates on your loan. Near prime usually will fall around the six hundred and twenty to the six hundred eighty mark and will usually mean that you could pay as much as four or so percent more then someone that has a prime score. If you happen to be below that and are considered to be sub prime then you are going to have some issues with finding a lending institution that will be willing to give you a auto loan and when you do end up finding a good one the rate of interest you will be paying is going to be very high.

You should also be aware that a car dealership has the ability to change the rate of interest that you would be paying on your car loan. One of the types of hidden fees that some shady car dealerships will try to include to consumers when they purchase or lease a vehicle is to mark it up so that your interest rate is increased regardless of your good credit score. This sort of markup can go up as much as two percent on your overall rate of interest and this particular markup of your interest rate will never be mentioned on any document that you would ever be signing. The car dealership will say that this increase can be considered justifiable because it helps them cover the cost of getting the consumer the financing they need but it is just additional profit or is used to make up for something they may have given to you somewhere else in the car deal. The most a car dealership is legally allowed to mark up your interest rate is by two and a half percent.

Something that a lot of people will ask when they go about getting a new car or vehicle is whether or not they are able to negotiate for their own rate of interest. In a lot of these situations you will not be able to negotiate the base rate of interest that a lending institution gives to you but you will be able to try and haggle down the markup that a car dealership tries to give to you. You should know that though some car dealerships practice this shady act not all of them take part in it. You should also realize that the better credit profile that you have the better rate of interest you will receive over all from the financial institution. So knowing what your credit profile looks like and shopping around on the internet is of the best things you can do for yourself before even ever walking into a car dealership.

Even if a car dealership does check your credit it really does not matter and this is a mistake that most people think occurs. Just because they said it looks good on their end it does not mean it is a done deal for you. When a consumer buys or leases a new vehicle with a car finance they will usually sign papers that state that they agree to purchase the vehicle using funds that are provided to them through a financing company and if they are not approved by the company the deal itself is considered nulled and voided unless they are able to secure another way of financing. Once this is done the car dealership is in no way again involved in the monthly repayment of the loan itself and is no longer responsible for it.

If you happen to have poor credit and come across problems trying to get approved for a vehicle because of your past payment history or debt to income ratio there are still a couple of things that you can do in order to get yourself that car of your dreams. Often times a co signer will allow you to get a vehicle without much of a problem. Other times a financial institution will ask for a large down payment to off set the high amount of risk that you have shown to them through your credit history. This will usually allow you to keep the same monthly payments while having the overall cost of the vehicle to go up. Even if a dealer lets you drive away with the car if the bank or financial company comes back to them denying the loan application the vehicle still will legally belong to them and they will require you to return it regardless of anything that you could have signed originally.

So when it comes down to it you should always know what your personal credit profile and score is before even walking into a car dealership just to make sure that you will not be startled when something goes down later on. The next thing you should do is to shop around for a good car finance that is flexible for all situations online before going into a car dealership so that you are prepared with money in hand in order to make sure that the car you are buying is yours and not the dealers. There are many different places to do this online and getting multiple quotes from different companies will allow you to find the best possible deal regardless of your credit history and situation.

If you have credit problems, repossession, bankruptcy, slow pays or are a first time buyer and in need of Car Lenders in USA. The car finance company offers the opportunity to buy a car on credit when you have been refused credit in the past. So, whatever the reasons - bad credit or no credit or bankruptcy, there is a good chance we can help you!



November 16, 2009
By Denis Dcosta
It's Fast, Free and Pre-Approved car credit program will try to secure the best auto loan and car finance available for you depending upon your current situation. Regardless of your credit history, our network of thousands of bad credit car lenders can help.

Car Financing

Used Car Maintenance and Cleaning

Maintenance is an essential part of owning a used car. Usually, once you take ownership of a car from a reputable used car dealer, you will be continuing a routine of good maintenance already set in place by the dealer to maximize the car's value. Now the purpose of maintenance will shift from keeping the car in a condition to sell to keeping the car running and safe for you to drive.

Used cars naturally require more frequent maintenance than new cars and, even with little experience under the hood, most used car owners are able to regularly complete the tasks outlined in this article.

Checking the tires regularly helps ensure the best handling and fuel consumption. You should check the pressure of your tires a few times a month with a tester that can either be purchased from most automotive accessory stores or found at some gas stations. It is recommended to purchase your own tire tester for use at home as, once you have driven to the gas station, the air in your tires will have warmed up, leading to an inaccurate reading.

The ideal tire pressure for your car can be found either in the owner's manual or printed inside the car.

An often overlooked maintenance task, particularly in areas with infrequent rainfall, is checking the windshield wipers. Windshield wipers that are cracked or have become bowed in a way that limits their contact with the glass should be replaced straight away.

Vacuuming the inside of your car is a quick way to get most dirt out before you take to the interior with a damp cloth.

Remove all the mats and seat covers that can be easily removed and vacuum them outside the car. The floors will be easier to vacuum without the mats in your way.

With the vacuuming complete, use a cloth damp with water to wipe the dashboard, door panels and any other areas that require cleaning.

To stay safe, and to avoid run-ins with the law, be sure to check your lights are working regularly. You should check your head lights, brake lights, tail lights and signal lights before you begin driving. If you do not have access to a second person to stand outside the car and tell you if your brake lights are working, just move your car close to your garage door or other moderately reflective surface and watch for the reflection of your lights.

While you can do many tasks yourself, a regular maintenance check-up and tune-up should be sought from a professional mechanic. In most tune-ups, mechanics will ensure the proper operation of your brakes, battery, air filter, fan belts, wheel bearings and shock absorbers. Spark plugs may also be replaced and your tires may be rotated and aligned.

A professional check-up is recommended every 20,000 miles to ensure the safe and reliable running of your used car.



November 13, 2009
By Bruce Haapman
Bruce writes on behalf of Wisconsin Used Cars

Car Cleaning

How to Save on All General Automotive Repairs

In these times of financial crisis, you can still save on all general automotive repairs, whether minor repairs or major repairs. Here are a few tips from our mechanic on how to cut costs on your car repair.

First of all, check if your vehicle is still under warranty. If so, do not waste the benefits that you can get out of that warranty. It may cover a wide range of tune ups and auto repair, and even the replacement of car parts. Read your vehicle warranty closely and know your rights well. Make sure that you do not waste your money by taking your vehicle to another mechanic or auto service shop when you can get free service and car parts from your warranty. Take your car to the appropriate dealership, whether Cadillac, Chevrolet, GM, Pontiac, Oldsmobile, Ford, Lincoln, Mercury, Dodge, Jeep, Plymouth, Chrysler, Daewoo, Audi, BMW, Mercedes, Jaguar, Volkswagen,Volvo, Acura, Honda, Lexus, Scion, Toyota, Nissan, Infiniti, Mitsubishi, Hyundia, Mazda, or Suzuki. They have all the necessary expertise to make an accurate diagnostic check up on your vehicle and do all major or minor repairs necessary, including computer diagnostics and computer reprogramming.

If your vehicle is no longer under warranty, then you do not have to pay top dollar for the more expensive services of a dealership. Find a professional, experienced and reputable auto service shop with equally professional, experienced and reputable mechanics. Make sure they are certified by the National Institute for Automotive Service Excellence (ASE). In such good hands you will get top notch service at a more reasonable price.

It should be a given that they have expertise on engines, including engine rebuild or engine replacement. At this level, such shops should also have the ability to repair brakes and tractions control systems including the antilock brake systems (ABS). Their transmission service and maintenance should include the transmission flush, the repair of any oil leaks and oil change service. They should be handling radiators, cooling systems and auto air conditioner (A/C) repair routinely.

They are expected to have the capability to repair electronic steering, power steering, power brakes, power windows, power convertible tops, power sunroofs and power locks, as well as do electrical troubleshooting for all types of electrical shorts and problems with alternators, hoses and belts such as timing belts.

The shop should also be equipped to do work on body systems and suspensions, including front suspension, rear suspension and air suspension.

Ask if they know how to repair air bag systems. It would be a big plus if they also know how to install and repair automotive anti theft systems, such as remote starters, and do key reprogramming.

Another good gauge of a reputable auto service shop is its ability to supply you with automotive parts of the highest quality at competitive prices. Recognized brands are AC Delco, Bosch, Remy, Motorcraft, Mopar, Goodyear, Dayco, Echlin, Standard, Cardone, Autolite, NGK, Akebono, Nipedenso, and Denso.


If your auto service shop and its mechanics are truly reliable and trustworthy, they would also help you cut costs by providing you with cheaper yet safe alternatives to brand new automotive parts. In many instances, remanufactured automotive parts may be had for much less than, as in the case of automotive transmissions.

Of course you can save most if you do all the necessary automotive maintenance and repair yourself. This requires a definite commitment on your part to do your research and learn about all general automotive repairs, including both minor repairs and major repairs. If you cannot cover all these, you can still take on simpler tasks such changing our vehicle’s oil and rotating your vehicle’s tires.



November 12, 2009
By Business Local Listings
ABC Autotech
Richard Borovicka
1621 Cortez Rd W
Bradenton, FL 34207-1324
Phone: (941) 755-0112
Fax: (941) 755-8150
Email: aautotech@tampabay.rr.com
Website: www.abcautotech.com

Automotive Repair

Motor Insurance: for the Sake of Security

The motor insurance is actually necessary in the present times as it gives you a lot of benefits, enabling you to drive safely to destination, without worrying about its breaking down. Like all other insurances, motor insurance offer you a good help if you have a foot of a wanderer and your car accompanies you to your trips.

A motor insurance provides a cover that includes the repair of your vehicle while it breaks down during your journey. Also, it makes sure that you are given a substitute automobile or a car hire till the time your car is getting overhauled. So having car insurance would indeed make things easier for you and your vehicle.

One cannot foresee mishappenings, so it is better to prepare yourself for them. In the modern world, motor insurance has been really instrumental in making our lives better. If your car is stolen or you have lost the keys to your car, the car insurance agents would assist you during all adversities. Also, in the case of theft, you can easily claim the insurance amount and can compensate the loss to a certain extent.

The break down cover helps you 24/7 and the area can be UK or some parts of Europe. You can easily be provided with assistance if you face any difficulty with your car within the prescribed area. The helpline team is very supportive and you can summon them at your will.

If you are keen on taking a Motor Insurance scheme, then, you can get a good discount on buying your insurance scheme online. Some insurance companies also give you a discount on the second motor insurance, if you already have taken a motor insurance beforehand.

So, buying a motor insurance is the best gift that you can give to your car and also to yourself.



November 11, 2009
By Henry kruz
Henry kruz is a marketing expert who brings the information through articles, press release, news etc. Visit for more on Motor Insurance and Cheap Insurance

Motor Insurance

How to Choose Car Paint Colors

I have noticed that the first thing that a person notices is the color of the car am driving. People do not even notice the registration on the car. That's why i have become so selective in choosing the cars that i drive. Selecting car paint colors for a full overhaul of your car is not easy though. These days, there are thousands of shades and variations of blue, Green, white, yellow and so on. You need to have a color code to define the exact color that you need.

I got these kind of challenge sometime back, i was forced to visit my local car dealer shop. I looked at the cars they had on display. Once i had identified the car paint colors i liked, i asked them to give me the numeric color code of that car, which they did willingly. They had to go to their computers to be able to identify that particular color code. I would not want you to go through the same process if you really do not want to.

You will realize that there are six basic car paint colors in the United States i.e. beige, blue, silver, Black, Grey and red. Variations of these shades should easily be found. Some of the car colors that have found demand in the States are Classic Black, White and Silver, orange power, blues and greens that give a sporty look, brown on the inside among many other shades. Blue is considered as classy as black while orange is the color of fashion.

Beside choosing a particular color for your car, you will need to either do the painting yourself or employ the services of a professional painter. This will cost a little more and at this point you should be better of having your job done by a paint shop.



November 10, 2009
By Peter Gitundu
Peter Gitundu Researches and Reports on Paint. For More Information on Car Paint Colors, Visit His Site at Car Paint Colors

Car Painting

The Subwoofer and Your Car Audio System

One of the most essential elements of any solid car audio system is the Subwoofer. The Subwoofer is the device that provides the deep, heavy bass sound that so many people love to hear with their music. The challenge is that most automakers do not include the subwoofer as a standard part of the car stereo system - thus leaving the individual to figure out the best way to upgrade their ride.

Here are some quick tips to help you choose the perfect subwoofer for your ride!

1) Think about the type of music that you like to listen to the most. If this music heavy on the bass, then you should consider a more powerful subwoofer system.

2) Work within your budget by determining how much you can afford to pay for your subwoofer system (and then sticking to it!). If you go into debt over your car audio system, you won't enjoy it nearly as much.

3) Do you want one subwoofer or two? The number of subwoofers you place in your car depends on two key factors, the size of your ride (if you don't have a lot of interior space, you will probably want only one subwoofer) and the type of music you enjoy. Fans of classical and heavy metal music can generally get by with just a single subwoofer, while fans of hip-hop and rap or techno may choose two in order to get the richest audio experience possible.

4) Make sure the subwoofers are a good match for your speakers. Do your homework before purchasing your subwoofers to make sure that they will fit into the confines of your existing car audio speaker system.

5) Choose a durable subwoofer cone. The subwoofer cone is the device that protects your subwoofer over the years in whatever harsh conditions may come along. There are a number of different cones to choose from, each of which has a different price point. Subwoofer cone types include: kevlar, polypropylene, aluminum, and carbon fiber. Car audio experts agree that it is best to avoid paper cones due to their low durability.

6) Pick the right subwoofer size. The most common sizes of subwoofer are 8-inch, 10-inch, 12-inch and 15-inch. Again, choosing the right one has a lot to do with the type of music you enjoy listening to in your car. As a general rule, larger subwoofers produce a lower frequency (which may be ideal if you are a big fan of techno music).

7) Choose a reputable brand. While every car audio enthusiast has their favorite brands, there are a few that are preferred by critics and music lovers around the world. In particular, check out the subwoofer products made by Polk Audio, Infinity and MTX to see if they offer a system that meets your needs and your budget.

When selecting a subwoofer for your car audio system, the most important thing of all to remember is to do your homework. By researching all the different types of subwoofer systems, you will be much more likely to find the perfect fit for your car.



November 9, 2009
By Mark Etinger
For the greatest deals in top name car audio systems, visit http://www.pyleaudio.com . The audio experts at Pyle Audio are proud to bring you high performance car stereo systems and audio accessories at some of the lowest prices on the web. Get to http://www.pyleaudio.com today and start building the system of your dreams!

Car Audio Accessories

Your Personalised Number Plate Explained Certificate Of Entitlement

Owning your own personalised number plate is becoming incredibly popular with motorists of all backgrounds. With over 30 million registration numbers in the market place there is a private plate out there to suit every taste and budget. When you purchase a registration number that has never been assigned to a vehicle you will be issued with a V750, commonly known as a “Certificate of Entitlement”. This pink certificate is a legal document which displays the grantee and nominee names and details of the registration number. The grantee is the purchaser of the vehicle registration number and holds all legal rights to it. The nominee is a name which can be added to enable a second individual to be able to assign the registration number to a vehicle. Unlike the grantee, the nominee has no legal rights to the registration number and it can only be assigned to one vehicle at any one time.

A nominee name can be added or changed at a later date for the current fee of £25. This fee is payable to the DVLA and must be sent with your application. To have a nominee name added to your registration number the grantee must complete the section on the left hand side of the certificate entitled “Change of Nominee Details”.

If you are the grantee and you change address, the certificate of entitlement can easily be amended. To do this you simply have to complete the box on the right hand side of the V750 and sign and date it. You must then send the certificate to the DVLA at Swansea and a new certificate will be issued and sent to the new address. This is a free procedure and typically takes up to two weeks.

To assign a personalised number plate to your vehicle you must apply to the DVLA. Applications can be made in person or by post to your local DVLA office. In order to assign a registration to your vehicle you must provide the following items:

•Your V750 (Certificate of Entitlement) •V5 Registration Document (commonly known as the log bog) for the vehicle you wish to assign the registration to. Please note that the grantee or nominee name must match the name that appears in the V5 log book. •A valid MOT certificate (if applicable) •£80 assignment fee if this has not already been paid

When your registration number is assigned to your vehicle you will be issued with a new tax disc showing the new registration number, and your V5 log book will be updated and returned to you by the DVLA. You will be issued with a certificate which enables you to have your acrylic number plates produced by a number plate manufacturer. You must also remember to inform your insurance company of the change of registration. Full instructions on this process are provided on the reverse of your certificate

The certificate of entitlement is valid for 12 months from the date of issue. If after this 12 month period you have not assigned it to a vehicle, it must be renewed with the DVLA. The renewal fee is currently £25 which must be included with your application. Only the grantee may apply to have the registration number renewed. If the registration number is not assigned within the 12 month period and a renewal application is not made, the right to the registration will lapse. If this occurs the grantee may apply for a refund of the £80 assignment fee however they will not be entitled to any other refund for the registration.

Buying and assigning a private number plate is incredibly easy. Car registrations are THE must have motoring accessory. Why not find yours today and start experiencing the joys of having a personal number plate!



November 5, 2009
By Rami Nseir
Rami Nseir is a consultant for Cape Plates ( http://www.capeplates.co.uk ) and has a passion for all things number plates related.

Car Registration

Why Are Japanese Cars so Popular at Auctions and Dealerships

Japanese cars are world renowned for building quality cars such as the cars produced by Honda. The high testing standards and quality roads underscores the Japanese culture of keeping cars in great shape. The attention, care, and pride, the Japanese take in their cars makes these cars popular at auctions and dealerships.

At auctions and dealerships one can find such cars from companies like Honda at very affordable prices. Auctions take place in nearly every country, including the United States. In Japan, auto auctions are held every day. When looking for a Japanese car at an auto dealership or at auctions, including online auctions, it is important that you look at the grade of the particular car that you are thinking about bidding on or buying. Grade 5 indicates the car is almost new while Grade 2 denotes a car that may not be in great shape. Some of the best deals can be found at a Grade 3.5 and higher.

One can acquire a good quality and high grade cars such as a Honda car that are very fuel efficient, have low mileage, and are of very high quality. These cars have been tested to meet Japan’s high standards so you know you are getting a great car. As well, you are getting great value for your money.

The best way of getting a great deal on a Japanese car is through Japanese auctions, particularly online auctions. There are over 100 auctions that are run weekly all around Japan. Each one can have anywhere from several hundred to thousands of vehicles that are up for auction. If you are a car dealer, it would be very beneficial to your business and your pocket book to register for these auctions. These cars can come fully equipped with Japan’s high tech equipment and can contain such features as air conditioning, power steering, electric windows and retractable mirrors, climate control, ABS and airbags, full electronics, CD players, and other quality features.

The benefits of buying Japanese cars such as those from Honda are great quality, reliable, economical, and meet the standards set by Japan which have the highest standards in the world. Because of the best roads and the Japanese’s Government encouragement of getting a new car every 6 to 7 years, Japan’s used car market is extremely popular. Most of these cars have great suspension, low mileage, and are in great condition. The overall condition for cars of similar age will be significantly better in Japan than in most countries. Many of these cars are never used to their full potential and often spend the entire time being driven short distances.

The general public can contact a professional to place a bid from their side and get an idea about the cost of used vehicles at an auction location. As well, the price of vehicles sold at dealer auctions tend to be lower than those advertised on a dealer's lot.

Acquiring a Japanese car has so many benefits that it makes for a great investment.



November 4, 2009
By Amy A Nutt
When looking for used cars in Toronto be sure to check out the massive selection of used Honda cars, trucks and SUV's at Formula Honda - your Toronto Honda dealership. http://www.formulahonda.ca

Honda Dealer

Car Finance: Feel Ease When you Drive

Car lovers feel ease while buying a car as they can avail a car of their choice with easy car financing. Nowadays, lender considering the present scenario and income level of the people’s lifestyle offers easy car financing.

A survey indicates that 60% of the car buying is through Car Finance. Financing helps the borrower to deal with the car of choice without burdening the car amount. Car financing makes the borrower to drive car of his dreams.

Car finance can be used for financing the new car or used. While buying a car you must locate the best car lenders which can offer you the best deal. But don’t forget to cross your budget as ultimately you only have to pay the amount. So, decide the loaned amount that you want to owe from the lender i.e. to determine the amount you can invest from your own.

Car financing can be defined as secured or unsecured. In secured car financing borrower’s car or other valuable asset is kept as collateral against the loaned amount. With this reason, secured option is considered as the best and most economical source of availing a car. Secured car loan is offered for comfortable time duration of 2 years-7 years.

Unsecured car financing is offered to the borrower who willingly or unwillingly does not place or attach any collateral against the loaned amount. Therefore loaned amount depends upon duration of the loan, credit history of the borrower, present financial situation, borrower’s repayment capability etc.

Car financing also helps the borrower to meet other expenses like maintenance and upgrade, paint, buying accessories and music systems, servicing etc.

Borrowers have wide range of options like the prominent banks, financial institutions leading lenders, or online etc for availing car finance. Approval of car finance is less time consuming when applied online. While operating through online source borrower can easily compare the quotes of different lenders with a click of button.

Borrower just has to select the car and decide the budget before going for the car financing.



November 3, 2009
By John Marshall
John Marshall is a financial analyst at Online Car Finance. In recent years he has taken up to provide independent financial advice through his informative articles. To find car finance, online car finance, car finance loan online, car finance uk, car financing, bad credit car financing that best suits your need visit http://www.onlinecarfinanceuk.net/

Car Financing