Tag Archives: financing

obtain financing

Reasons to Obtain Financing Before Buying a Car

This entry was posted in Financing and tagged , , on by .

The best time to shop for auto financing is before you go to the dealership. While many people worry about getting a raw deal on a car, the real damage can come from the financing. Dealers make their money off in-house financing because they mark up the rate you’re offered. 

For example, if you qualify for a loan of 6 percent through a bank, the dealership may offer you 8 percent in financing. And for many car buyers, as long as the payments make sense, they don’t worry about the details. Plus, getting financing through the dealer is often fast and convenient, especially if you haven’t had a chance to shop. 

But since you are reading this article, you’re likely considering the perks to obtaining financing before heading to the dealer. Below we’ll cover the benefits of doing so in more detail, as there’s more to this than just saving money.

Favorable Terms 

Before you walk into a dealer, it’s best to have an idea of what the interest rates and loan terms are based on your credit score, as well as the monthly payments you can afford. This way, if the dealership does offer you financing, you’ll know how it stacks up to what you can get on your own. 

Lower Stress Levels 

Another benefit in obtaining financing before buying a car is that you’ll have lower stress levels when it comes time to sign the paperwork. You’ll feel confident that you’re getting a fair deal, and you’ll be better prepared to negotiate, if you have to. Car salespeople have a history of pressuring people, but being informed prevents this. 

Save Money 

By shopping for financing in advance, you can secure the best loan terms and interest rates based on your credit score. You can apply online to see how much you can borrow and what your payments will look like. It’s also possible to identify potential credit problems ahead of time. For example, if your score is lower than you thought, you can find out what’s causing the problem.

Get Better Rates 

Dealer financing is most convenient, so if you’re already pre-approved for financing, you can use this to get the best rates from the dealer. Believe it or not, dealers have some of the lowest financing rates available. When you come in with a pre-approved loan offer, the dealer must compete with this. If the dealer does beat the rates, make sure that the loan terms don’t change. 

When you shop with RepoFinder, you have access to repossessed cars, trucks and SUVs at great prices! Because these vehicles are being sold by banks and credit unions, you are also in a great position to negotiate the best rates possible. Start your search for a repo car with RepoFinder! 

car salesman

5 Sneaky Car Dealership Tricks to Be Aware Of

This entry was posted in Used Cars and tagged , , , on by .

Even though most car dealers work hard to build long-lasting relationships with their customers, some are still pushy and live up to the stereotypes shown in TV and movies. It’s understandable why car salespeople have to be pushy at times – they’re working off commission. But that doesn’t mean that you have to fall for any of these traps – it’s your money after all! 

Below are some of the most common car dealership tricks to be aware of. If you notice someone trying to pull these tactics on you, you’ll probably want to shop elsewhere. Cars are an investment, and you deserve to make a decision that you’re fully comfortable with. 

1. Bait-and-Switch Trap 

The bait-and-switch trap is one of the oldest in the books. The dealer promotes a great price on a vehicle and features it in an ad to bring in more traffic. When you arrive, however, you’re notified that the vehicle is no longer available. Instead, there’s a different car waiting for you – and it’s priced higher. 

2. Fine Print Details 

Always, always read the fine print. Car ads come with small print that the dealers hope you miss – and many people do. That’s because hidden within the print are disclaimers, stipulations and conditions that will make it nearly impossible for you to get the price that’s featured in the ad. For example, the dealer may require you to have near-perfect credit to get a particular financing offer. 

3. Monthly Payments 

Another common tactic is for a car salesperson to ask you how much you want to spend each month. This question seems innocent enough – your budget makes a difference after all. However, if you say your budget is $400 a month, the dealer can sell you any car and string the payments into a longer loan. 

4. Payment Method 

Car dealers may also ask how you will be paying for the car. Keep quiet, as how you pay makes a difference. For example, if you’re paying with cash or third-party financing, the dealership is likely to bump up the price since they won’t be making money off your loan. If you choose to use their financing department, you can expect to pay more. 

5. Marking Up Interest Rate 

Dealers may also offer sweet deals on the front end and then make up for them by increasing interest rates. They’re able to do this because dealers partner with different financing companies that offer indirect loans. In exchange for the loan, many of the partner banks let dealers mark up the interest rate and keep the difference. So, if a lender approves you for a loan with 6% interest, they might tell you the interest rate is 8% and then keep the 2%. 

When you need a car, your options of where to shop may be limited. If you do choose a dealer, make sure that you don’t fall for any of these sneaky dealership tricks. You can also shop with RepoFinder – we have a huge database of repossessed vehicles for sale. Take your time reading through each listing, ask questions and make an offer. No pushy salespeople involved! 

 

saving for car

What are the Fastest Ways to Save for a Car?

This entry was posted in Used Cars and tagged , , , on by .

If you’re in the market for a new car, SUV or pickup truck, you’re probably aware that you need to gear up for high prices, sparse inventory and few incentives. It may not be the best time to shop for a new vehicle, but you might not be able to wait any longer. 

Fortunately, things are getting better, and car prices are no longer increasing. But you can still expect to pay significantly more for a car today than a year or two ago. Below are some tips from the experts on how to save for a car – and fast! 

Pick the Car You Want First 

Decide on the vehicle you want to buy before you start saving. You may have a few different models picked out, and that’s okay. By having some vehicles in mind, you can look up their prices and know how much you have to save. Don’t forget to add in extra for fees, sales tax and insurance payments. 

Decide How You’re Going to Pay for the Car 

Once you have a car in mind, you can decide how you’re going to pay for it. Creating a timeline can be helpful, as you’ll be able to find a balance between the monthly payments you can afford and a down payment you can save for. There are a number of free online payment calculators you can use to crunch these numbers. 

Set Up a Separate Savings Account

As you begin to save for your new car, keep your “car cash” separate. You don’t want to end up using your savings for other things like groceries, gas or a night out. Having a separate account allows you to see how much you have saved for your car and where you are in relation to your goal. To make things even easier, set up automatic transfers from your checking account. 

Not sure how much you should be putting away each month? Anything helps, but experts recommend pretending like you already have the car payment. What you would be paying in a car payment can go directly into the savings account.

Sell Your Car Right Now 

Normally, you would trade in your old car when you buy a new car. But these are different times, so it might be worth it to trade in your old car right now. In the meantime, you can drive a different car you own, car pool with neighbors or use public transportation. The purpose of this is to get the best price for your trade-in right now.

Save Money. Shop with RepoFinder. 

When you’re ready to buy your new car, be sure to consider all of your options. RepoFinder has a huge inventory of repossessed vehicles, and they are available to the general public. You do not need a dealer’s license. You can take advantage of low prices, an expansive inventory and quick sales. Check out our used vehicles today!

affordable red car

Best Affordable Used Cars You Can Buy Today

This entry was posted in Used Cars and tagged , , on by .

Looking for a new car that’s affordable, too? While this isn’t the best time to be shopping for new and used vehicles, you might not have a choice. You depend on your car to get you to and from places, and you need something reliable. 

Fortunately, there are some budget-friendly cars that you can look into. These cars offer a great value for the money. To save even more, look for these models on RepoFinder.com. We have a huge database of used vehicles that is updated regularly! 

In the meantime, here are the best economical cars on the market today!

Hyundai Elantra 

The Hyundai Elantra is a great compact car that’s comfortable and enjoyable to drive. It’s also hip and stylish, and includes plenty of tech-savvy upgrades. A well-maintained Elantra should last over 150,000 miles, and may even get to 250,000 miles without any major repairs. For the average driver, that’s a lifespan of 10-15 years. The average price for used Hyundai Elantras are between $15,000 and $20,000. 

Toyota Camry 

The Toyota Camry is another great car that provides a smooth, enjoyable ride. Not to mention, Toyota earns the top spot as the best automaker for dependability. The Camry, in particular, is known as a reliable, affordable vehicle that accommodates families of all sizes. It looks compact, but it’s rather spacious on the inside. Average prices for a used Camry are under $30,000. 

Dodge Charger 

The Dodge Charger is a large and comfortable sedan. It has a powerful engine, roomy and comfortable seating and a spacious trunk. It’s a great pick for families that prefer a car over an SUV or truck. But, as you may know, the Charger is a muscle car that has a lot of speed, so it’s typically not the best choice for a new driver. While there are some more expensive models, you can get an older Charger for under $30,000 – and some even under $20,000!

Honda Accord 

The Honda Accord is a midsize sedan that’s rated one of the most reliable of its kind. In fact, some people prefer the Accord over the Camry because it has higher torque and more passenger and cargo space. It has been one of the best-selling family-sized vehicles for over 15 years. You can usually pick up a used Accord for $20,000 to $27,000. And keep in mind, you’re getting plenty of luxury features included in this price! 

Subaru Outback 

Subaru has made a few adjustments to the Outback, making it a smart alternative to an SUV. While smaller than a typical SUV, this crossover can haul large items and has convenient features like blind spot monitoring and driver assistance systems. It also has a price that’s more in line with sedans instead of SUVs, with used models starting around $18,000.  

These are some of the best affordable cars you can buy today. They have high safety ratings, the latest technology and comfortable interiors that the whole family will enjoy. To shop for affordable vehicles, visit RepoFinder today. 

sedan car

Buy a Car You Can Afford with These Tips

This entry was posted in Repo Cars and tagged , , , on by .

Like most everything else these days, car prices have skyrocketed. Cars have always been expensive, but the pandemic has had a tremendous impact. First, car prices rose due to high demand and low inventory. We’re hoping that prices will drop as supply chain issues are fixed and there’s a better balance between supply and demand. 

However, now we’re dealing with a new problem: rising inflation. Inflation is driving up car prices, just as it is fuel, groceries and utilities. In 2021, inflation rose to 7 percent, the biggest increase in nearly 40 years. Used car and truck prices shot up 37 percent last year, with the average used vehicle costing $29,000. 

If you need a new vehicle, you might be stressing about how you can afford it. Below are three tips that will help you afford a vehicle of your choice! 

Set a Monthly Number 

The first step when buying any car is to set a monthly budget for what you can afford. Don’t forget your car insurance payments, too. Experts recommend spending no more than 15 percent of your monthly take-home pay on a vehicle. Depending on your budget, you may have to stick closer to 10 percent. 

Based on these numbers, if you were to bring home $3,000 a month, your car payments should be around $300 to $450 a month. This is actually a good number to work with, providing that you’re interested in buying a sedan or coupe. If you’re looking for an SUV or truck, it might be more of a stretch. 

Calculate Your Monthly Payment 

Once you know how much you can spend, you can start shopping around for vehicles in your price range. New car ads and review sites generally list out the MSRP (manufacturer’s suggested retail price), but you can use a calculator to determine what your monthly payments will look like. 

To get an accurate picture of what you’ll be paying, be sure to enter in your down payment and interest rate on the site’s calculator. Your interest rate depends on your credit score. Average interest rates with good credit (661-780) are 3.56 percent for new cars and 5.58 percent for used cars at the time of this writing. 

Shop for Repossessed Cars 

With the market being as competitive as it is, it’s helpful to shop for cars in different ways. For example, some people are shopping online and having their vehicles delivered to them. Others are attending auctions in their area. Another option you may not have yet considered is repossessed vehicles. 

Repo vehicles are those that were taken away from their previous owners because they defaulted on their loans. These cars are often newer and in good condition – their owners just could no longer afford them. Many repossessed cars are sold in auctions, but RepoFinder sells them to the general public. 

You can save up to 30-40 percent on a repossessed vehicle. And, because RepoFinder features vehicles being sold by banks and credit unions, you can often work out an even better deal by securing financing through them! To learn more about purchasing a repo car in your area, shop with RepoFinder today! 

save money used car

How to Save Up to 40 Percent on a Used Car

With new cars topping $47,000, it’s understandable why you’re shopping for used vehicles at discount rates. But even used cars are expensive these days! A used sedan might only cost around $20,000 to $25,000, but a used SUV or pickup truck costs an average of $37,000! 

If these prices are still out of your budget, rest assured that there are additional ways to save money on a used vehicle.

Consider Repossessed Cars 

The first piece of advice is to open your search to repossessed vehicles. Repo vehicles are cars that have been taken from their owners because they couldn’t afford to make the payments. They are now in possession of the lender (i.e., bank or credit union) and ready to be sold.

Banks and credit unions are highly motivated sellers because they don’t have the space or capacity to store and sell cars. Browse RepoFinder’s database – it has hundreds of repo cars, trucks, sedans, etc. that you can place a bid on today! On average, repo cars are between 25 and 40 percent cheaper than new cars. 

Shop for Vehicles Online 

Another way to save money is by shopping online. You can see what’s available at local dealerships, saving time and hassle from driving from one dealership to the next. You can also expand your search by looking at cars in other locations, such as the next closest state or city. 

The nice thing about shopping online is that you can take your time and make a good decision without pressure from a car salesperson. This could end up saving you hundreds or thousands of dollars, as it’s easier to spend more when you’re in a high-pressure environment. 

Get the Right Financing 

When you buy a car through a dealer, you’re more likely to use their financing department. While there is nothing wrong with this – it’s quick and convenient – you probably aren’t getting the best deal. 

When you shop for cars on your own, you have the option to check interest rates through multiple lenders. You can then get a pre-approval from the lender with the best rates. Most lenders allow you to complete the application process online, so there’s not much you have to do but fill out some paperwork. 

Keep Your Loan Short 

Even though your payments will be smaller if you stretch out your loan to 72 or 84 months, you’ll end up paying more for your vehicle over time. And, if your car is getting older and experiencing problems after four years, you’ll still be locked in.

If you can swing it, keep your loan short. This way, you’ll be able to pay off your loan faster, and you won’t find yourself underwater if something happens to your car. 

Make a Down Payment 

If you sold your previous car to a private buyer, you can use this money for a down payment. A sizable down payment shortens your loan, and it can help you lock in lower interest rates. This happens because a down payment lowers your loan-to-value (LTV) ratio on your financing, making you more attractive to lenders. 

If you don’t have a sizable down payment, look for specialized online lenders that offer low-rate auto loans without down payment requirements. Credit unions may also be willing to work with you. 

These are some of the best ways to save up to 40 percent on a used car. Keep in mind that there are many ways to save – it’s not just the purchase price that makes a difference. For savings of up to 40 percent, shop with RepoFinder.com

loan for repo car

Can I Get a Loan for a Repossessed Car?

This entry was posted in Repo Cars and tagged , , on by .

If you’re shopping around for a bank-owned vehicle, you’ll be glad to know that there’s a wide selection to choose from – and all at great prices. But one question that many car buyers have regarding repossessed vehicles is what type of financing options are available. 

When you purchase a vehicle from a dealership, you have the option to use their financing department. It’s quick and easy, especially if you’re trading in a vehicle at the same time. But when shopping for a repo car online, you don’t have these same options. So what can you do? 

Fortunately, financing for repossessed cars works in the same way as it does for any other car purchase. While there might not be a dedicated financing department on hand, you can still finance your purchase. The difference is that you’ll have to do the legwork beforehand, such as by filling out applications and getting pre-approved. 

Let’s cover the different financing options you have when buying a bank-owned vehicle. 

Banks 

RepoFinder offers a huge database of repossessed vehicles from different banks. Banks are highly motivated sellers that are often willing to negotiate. And, the benefit in buying from them directly is that they can provide you with financing as well. 

You can also obtain financing through a bank before buying a car. All you need is a pre-approval, and you can present this to the seller when you’re ready to purchase the vehicle. Your loan will be finalized when you purchase the car. 

Credit Unions

Credit unions work similarly to banks, though there are a few differences. To apply for a loan through a credit union, you typically need to be a member, which involves opening an account and making a deposit.

The benefit to credit unions is that they are more lenient than banks. If you have poor credit or a limited history, they’ll be more understanding. At the same time, they are not as convenient as banks. You may have to make your payments through mail instead of online, for example. 

Online Lenders 

Another option that car buyers have is to obtain financing through an online lender. Since most people shop for repo cars online, you may find it easiest to access financing this way. Online lenders are fast, convenient and often have lower rates. But you’ll still want to do your research and compare rates. 

The only thing to watch for with online lenders is that they don’t always have the best customer service. They’re designed to be quick, streamlined and convenient, so customer service is generally online and not through a real person. 

The most important thing to know is that you can get an attractive, flexible loan with great terms when buying a repossessed car. To shop for bank-owned vehicles in one central location, browse through the RepoFinder database today. 

buy car from bank or private seller

Banks vs Private Sellers: Which is Safer for Buying Cars?

If you’re interested in buying a used car, you have several options. Many people choose to buy a used vehicle from a dealership, but cars are hard to come by these days. The global microchip shortage is restricting new car inventory, and this has led to restricted used car supply because fewer people are trading in their vehicles. 

With less used cars at the dealership, more people are turning to banks and private sellers. Let’s look at the differences between buying cars from a bank or credit union versus a private seller and what option is best for you. 

Vehicle History 

A private seller will typically have more information on a vehicle’s history than a bank. Private sellers are usually selling a car they own or have driven, so they’ll be somewhat familiar with its history. However, not all private sellers are honest, so it’s up to you how much you want to trust them. 

Banks and lenders, on the other hand, might repo hundreds or thousands of cars per year, so they usually know very little about a car’s history. Your best option is to request a Carfax report so that you have access to the vehicle’s history. Having some background information will offer you peace of mind. 

Financing 

Financing a used car is a bit trickier than financing a new one. Interest rates are higher, and some banks won’t finance cars that are past a certain age or mileage. It’s also harder to find financing when you buy a car from a private seller. Lenders worry about dishonest sellers that could result in the buyer defaulting on their loan. 

When you purchase a repossessed car from a bank or credit union, you’ll have a much easier time getting a loan. In fact, many of the banks that sell vehicles on RepoFinder are highly motivated and often willing to negotiate financing. Plus, it’s one-stop shopping! You can buy a car and get financing all in one! 

Purchase Price 

Another important factor to consider is the purchase price of the vehicle. Many people think that private sellers are cheaper, but this isn’t always the case. It’s not uncommon for private sellers to price their vehicles higher because they have an emotional attachment to them. 

Banks have no attachment to their vehicles so they’re usually in a better position to negotiate. When you use RepoFinder to buy a repossessed car, either a price will be listed or the seller will be taking bids. Do your research so that you can make a strong bid! 

Hopefully this information has helped determine what is best for you – buying a used car from a private seller or a bank. If you’re interested in browsing the latest repossessed inventory, click on your state on RepoFinder and find a vehicle that works for you! 

getting financing for a car

How Do Loans from a Credit Union Work?

When you need to borrow money to purchase a used vehicle, a credit union can be a good option. Banks and credit unions are both financial institutions, but there are differences between them. Banks are for-profit institutions while credit unions are not-for-profit. This allows credit unions to offer lower interest rates and better customer service. 

If you are looking to buy a used or repossessed car, a credit union might be the best option for you. Let’s look at the benefits to getting an auto loan from a credit union and the steps to take. 

Benefits of Getting an Auto Loan from a Credit Union 

Credit unions use their non-profit status to pass savings along to their members. This is why interest rates and other fees are typically lower than what you would find at a bank. Not a member of a credit union? That’s no problem. Most eligibility requirements are based on where you work, where you live and the types of organizations you belong to. 

Once you do become a member, you can take advantage of the credit union’s services. Here are some of the benefits to expect from a credit union car loan:

  • Lower interest rates 
  • Higher approval odds 
  • Lower loan minimums 
  • Lower fees 
  • Better customer service 

Steps for Getting a Credit Union Car Loan 

Getting an auto loan from a credit union is very similar to getting one from the bank. There are generally four steps you’ll have to go through and everything is streamlined for your convenience. 

Apply for a loan 

The first step is to apply for a loan. You can do this online or at a local branch. Applying online is fast and convenient, but if you have questions, it’s best to fill out the application in person. Once you get your pre-approval, you can use this for negotiating power. 

Repossessed cars and trucks are sold by motivated sellers, so having a pre-approval will work in your favor. You can often negotiate a lower price because the seller knows you already have financing lined up. 

Provide proof of insurance 

You and your lender both want to protect your vehicle, and the way to do this is through insurance. You may need to provide proof that you have full-coverage comprehension and collision insurance to protect your vehicle. 

Show proof of income 

Your lender will also want to make sure that you can afford to pay back the loan. In the case of repossessions, the banks and lenders have already had one owner default on the vehicle so they certainly don’t want another. Expect to provide copies of your pay stubs or tax returns from the past two years. 

Finalize your loan 

Once all of the information and documentation are received, you’ll finalize your loan through a credit union representative. At this time, you’ll be told how much you qualify for, your interest rate and any other related terms and conditions. If you agree with everything, you’ll sign the loan agreement and take home your new car! 

RepoFinder has a huge inventory of repo vehicles waiting for new owners. Many of them come from banks and credit unions, which are highly motivated sellers. Browse our website today and negotiate with the sellers for the best possible prices.

paying cash for car

What are the Benefits of Paying Cash for a Car?

Few people have the ability to pay cash for a car. But if you are one of the lucky ones who has saved up enough cash, you can enjoy a wide range of benefits by paying in full. To keep your costs in line, consider shopping for a repossessed or bank-owned vehicle that will cost far less than what you’ll pay at the dealership. 

Let’s cover the reasons why paying for a repo car in cash is worth considering. 

No Money Loss to Interest 

Interest is a fee charged to you when borrowing money from someone else. Currently, interest rates on 60-month auto loans are around 5.27 percent. Rates depend on your credit score, age of the vehicle, term length of the loan and other factors. By paying cash, you’re using your own money and don’t have to pay interest. 

No Monthly Payments 

Once the “new car feeling” wears off, people are stuck paying a high monthly payment for the next five years or so. However, when you pay cash for a vehicle, you’re paying for everything upfront. While you might have to take from your savings, you can put money back every month because you won’t be spending it on a car payment. 

Better Negotiations 

Banks and credit unions selling repossessed cars are motivated sellers. They are often willing to negotiate and come down on price, unless a car has a lot of bids. If you have the cash to buy the vehicle outright, the seller will likely accept a lower offer. They’re about to receive payment in full and they’re not taking the risk that you’ll default on your payments. 

Avoid Being Underwater 

Cars depreciate extraordinarily fast. Even after making payments for several years, you’ll probably still owe more than what your car is worth. This is a hard cycle to be in, especially if you want to sell and upgrade to something else. When you pay cash, the car is entirely yours. You don’t have to worry about being underwater, and you can trade in your car at a later date and get something for it. 

Shop for Affordable Cars Today 

Paying for a car in cash isn’t for everyone, but it is definitely something you may want to consider if you want to avoid interest and high monthly payments. When you shop for used cars at RepoFinder.com, you’ll have access to hundreds of vehicles in all makes, models, conditions and price ranges. 

These cars are sold by banks and credit unions, so you can often negotiate an even better deal, especially when paying in cash. And, if you prefer to finance your purchase, you’re in the right spot! Banks and credit unions will work with you to get your monthly payments affordable. 

Start your search for cheap, used cars in good condition at RepoFinder.com.