Archive for 'Car Finance'
What Is Guaranteed Car Financing?
Posted on 27. Jan, 2009 by admin.
Guaranteed car financing does not mean that the lender will guarantee the loan. They might guarantee that they will be able to offer you a loan but that is not the same thing as a guaranteed financing. Don’t let the ads fool you into thinking otherwise.
The true meaning of guaranteed financing is that the loan is guaranteed to be paid off in the event that the borrower cannot. There could be many reasons for getting this type of loan. The most common is bad credit. Lenders have a hard time making a loan to a person with a low credit score. If this is the case, they will sometimes be willing to make the loan anyway so long as the loan is guaranteed. You may be asking yourself how you can do that. The answer is simple, Get a co-signer to join in on the loan with you. The co-signer takes on the responsibility of paying any unpaid balance should the loan go into default. This person is in effect guaranteeing the lender that it will be paid as agreed.
Continue Reading
Should You Finance A Car Or Pay Cash?
Posted on 18. Dec, 2008 by admin.
This is an age old question. The answer is it really depends on you. The benefits to paying cash for a car are obvious. You will save money on interest. You will not have a car payment to worry about each month, You will own your car free and clear which means you could potentially use it as collateral for another loan. If you decided to sell it in the future, you would be able to keep all the cash from the sale. When looking for the benefits to buying a car with cash, there are just too many reasons to count.
The flip side to that would be the benefits to financing a car. When you finance a car you are building up your credit. Every time someone extends credit to you and then you make your payments regularly and on time, you improve your credit score. Another benefit is that you would be making smaller payments at a time. If coming up with a big lump sum of money will cause a strain on your budget then buying a car with cash might be out of the question for you. It’s up to you to decide where you are financially and make the choice that suits you best. Remember, any loan you take out will be carried with you in to the future, so make your decision wisely.