How to ascertain LTV Ratio on your Next Car Loan?

Are you ready to buy your dream car this year? If you have already shortlisted the model and are beginning the loan process, take a breather. It is not necessary that the lender will approve you for the total cost of the car. It is possible that you may have to lighten your wallet and pay a part of the total amount from your savings. Let’s understand how will the lender decide on your LTV ratio and how much money is he willing to lend you.

How does a Lender evaluate your Auto Loan Application? 

For a lender, deciding the lending amount is pure math. When it comes to deciding the LTV ratio, he will consider several factors and make a practical decision. Let’s understand the factors to use them to your advantage. 

1. Credit score

Everyone seeking an auto loan approval knows the importance of FICO score. Lenders check your score to understand your repaying pattern. Several late payments on your report can prove to be a red flag for the lender. So, check your credit report beforehand. If you fall into the category of a high-risk borrower, your loan approval amount may not cover the entire cost of the car. In such a situation, you must work with a lender who specializes in bad credit auto loans and seek approval on a larger loan amount. 

2. Loan Repayment Capacity

Once the lender analyses your credit report, the next step is evaluating your loan repayment capacity. It will give an idea of your current financial situation. The lender will use your monthly income and debts to calculate it. Experts suggest that the debt-to-income ratio should be below 40%. For example, if your monthly income is $5000, your total debt should not exclude $2000. If you have higher debt, the lender will reduce the loan amount to decrease the risk factor. 

3. Value of the Car

Don’t think lenders will forget the price of the car. If your credit score and income do not provide comfort to the lender, he may approve you for a smaller loan amount. Banks, traditional lenders and online auto financing companies take help of NADA, Kelley Blue Book and other online sources to determine the value of the car. When you are applying with the lender, discuss whether he will include the taxation costs, insurance premium and other miscellaneous costs to the loan amount. It will help you to calculate the amount that you will be required to pay out of your pocket. 

LTV Ratio: Is the Lender approving you for a Smaller Loan Amount? 

Car buyers with an impeccable credit score and good income enjoy 100%+ loan to value ratio. But, not everyone has a strong credit application. If you want to buy your dream car, you can pay the remaining amount in the form of a down payment. You can trade-in your old car to avoid paying cash to the dealer. Or else, you can discuss with the lender and request him to re-consider your application. Bringing a cosigner can help you in making a strong point. If nothing else works, buy a cheaper car. 

Remember that if you have plans of buying of your favorite car, do not let it remain a dream. Understand how the lender will consider your loan application and take calculative steps to prepare for the outcome. 

When you want to buy your dream car, you need to work with an experienced guaranteed auto financing company. Do not worry about your credit score or debt. Work with a bad credit auto loan expert to enjoy higher LTV on auto loans. Apply now; buy car without down payment.

No Cosigner Car Loans because Cosigning and Family Don’t Mix

Just as mixing business with pleasure is not wise, having a family member cosign your loan agreement can have immense ramifications, financially as well as personally. If you search the web for “cosigning with family member”, you will realize that several people have borne the brunt of asking a family member for help. It can lead to unresolved money issues between families. So, what should you do when the lenders compel you to search for a cosigner?

A Car Buyer’s Guide: Tips on dealing with a Cosigner

Buying a car is no joke. You have to find a car that you love and then seek a lender that you like. Usually, lenders ask car buyers with zero credit scores, insufficient income, or new jobs to bring a cosigner. With a cosigner in picture, they are assured of timely payments. But, finding one is not easy. Learn how to deal with a cosigner and make a perfect purchase. 

1. Explore options!

Family is not the only option for cosigning. You can consider your friends, spouse, colleague, etc. for the job. It is not compulsory for the cosigner to be related to you. It can be anyone who is ready to help you out. 

Sometimes, it is better to take financial help from someone who will not judge you continuously or discuss your financial situation with everybody. You certainly do not want your aunt to tell everyone about your late payments during the Christmas dinner. So, find someone who wants to help you without passing any judgment. 

2. What about the Future?

Your brother may agree to be your cosigner. But, you must explain him the consequences of becoming one. They will not be responsible for the loan, but it will also affect their prospects of getting a new loan. If your brother is considering opting for a student loan, helping you can make things difficult for him in the future. 

When you are thinking about future, do not forget to ask the lender about the process of removing the cosigner from your loan agreement. A few lenders allow borrowers to change the contract rules once they have received a certain number of payments. 

3. What’s your Plan?

Anyone thinking of becoming your cosigner will be interested in knowing your loan repayment strategy. It is always a good idea to save for the rainy day. If you lose your job, or suffer from an illness, make sure that your payment schedule is not affected by it.

And, do not forget to prepare for the scenario of buying the car on your own. If you are buying a car for the first-time and you do not have any credit history, apply for small loans, pay them off and improve your chances of getting a car loan. Another way to get approval is by reducing the loan amount. Either bring a down payment or choose a less expensive used car for eliminating the loan burden.

What to do when there is no Cosigner?

No one wants to avoid making payments and damage their credit scores. But, a few unforeseeable events can make things difficult for you. In such a situation, you do not want your family members to suffer because of you. So, how can you buy a car without having the financial and emotional burden of damaging your loved one’s credit score? Seek a no cosigner car loan.

No cosigner car loans help young car buyers in making a car purchase on their own. With the loan, you do not need someone with a stellar credit report to help you out. It is useful when you need a car and cannot wait to manage a down payment or improve your credit score. If you are starting your new job or moving to a different town and need a car immediately, avoid spending time in convincing your family members. Simply search a lender who helps people with special needs and make buying a car easy. 

Find the perfect auto financing company for making a quick purchase. Submit your loan application and get approved for a no cosigner car loan. Choose a lender who not only makes cosigning optional but also offers special financing rates on bad credit auto loans.

How to grab the best Year-End Deal on your Next Car Purchase?

Shopping for a car during Holidays is no joke. Many individuals quickly find themselves unprepared and confused for the task ahead. A few of them leave the pursuit of finding the best deal and head home to enjoy the festivities. But, remember that Christmas is one of the top 5 holidays for making a car purchase. According to Iseecars.com, dealers offer 35.6% more deals during Christmas than any other time of the year.

 

Buy a Car: Make the Most of End-Of-Year Deals

If you want to buy a car during the end of 2017, do not walk down to the dealership before making a detailed analysis. Here’s how you can obtain the best deal and come home with a car.

• The Search and Research begins: What does it involve?

Buying a cheap car that doesn’t meet your requirements is not a good deal. You need to find aggressive discounts on the type of car that you want. To find a vehicle of your choice, check the list of car rankings. You may find that many car related websites in the market provide detailed review of car models, enabling you to make an informed decision. Understand each car model’s performance against different cars and find your pick.

Also, one cannot stress the importance of having pre-approved auto financing during this time of the year. With a ready check in your hand, you will be able to grab the best end-of-year deals without letting them go to any other buyer. So, find your car and then make sure that you have money for buying it.

• What’s the Scene at the Lot?

Compare end-of-year car shopping to a clearance sale. You may not find a wide-range of inventory at the dealership lot. Color options may be few. Or, you may find that different versions of the model are unavailable. Also, there will be several other people vying for the same car as you. On the other hand, you can enjoy great monetary benefits. Auto makers offers huge discounts to push slow-selling models and dealers are ready to share their incentives with you in the hopes of clearing space for 2018 car models. It results in incredible savings for you.

• The Kind of Deals that you can Expect

Auto makers and dealers are offering different types of deals across the nation. Kelley Blue Book and US News are a few websites that offer detailed analysis of different car deals available during the Holiday Season. For example, you can obtain $6,250 cash back on the 2017 Chrysler 300. On, Hyundai Sonata, the cash back amount is even higher. 2017 Ford Mustang is offering 0% financing for 72 months along with $1000 in cash back. On Honda Accord 2017, you can avail benefits up to $2700 in the form of discounts. And, it is expected that the pricing will become more aggressive as the year ends.

This Christmas, Gift yourself the Comfort of Car

To truly enjoy the gift of car, you must be diligent in making the purchase. Do not say yes to the sticker price that the dealer offers you. Just because you will enjoy great financing deals and end-of-year offers, it doesn’t mean you cannot negotiate the price. Discuss the price of the car, involve the down payment angle in the negotiation and make an informed decision. If you feel that the salesman will overwhelm you with all the numbers and pressurize you to the close the deal, it is best to bring your support. Ask your partner or friends to join you in making the decision. 

Stay smart, find the best deal and get ready for the perfect Christmas gift!

This Christmas, work with a professional lender and enjoy the gift of guaranteed auto financing. Get quick approval on no down payment auto loans and get ready to grab the best end-of-year deals. Apply now.

How to avoid buying a Flooded Car in Baltimore?

Baltimore faced unseasonal storm and several flooding conditions a couple of months ago. You may think that you have dealt with all the problems associated with flooding and heavy rains. But, there is one aspect of floods that you should not ignore, especially when you are looking to buy a used car in the Charm City.

Rains caused severe flooding in Central parts of Maryland. And, several cars were inundated during the catastrophic act. These cars are now making their way to the used car market.

Is it okay to buy a Flooded Car?

Anyone will tell you to avoid buying a car that was caught in the middle of a flood. Even if the car is completely dry, there must be traces of dirt and debris in the car’s engine. Also, water may have affected the electrical components of the car. It can be dangerous to drive such an unreliable car. 

It is only okay to buy a car if it has suffered minimal flood damage during the recent rains in Baltimore. But, if the insurance company has declared it as a total loss or it has a salvaged title, it is best to avoid the purchase. You may argue that repairs are an option. But, if there is an issue of salt-water flooding, it will be difficult to fix the car. Unless you are okay with rebuilding a flooded car from scratch, avoid it. 

Tips for Avoiding a Flooded Car in Baltimore

Now, if the car is damaged due to floods, you may avoid buying it. But, what if a dealer or a private seller is not upfront about the car’s history? How to ascertain whether a car is flood-damaged?

1. Flood-damaged cars have a musty smell to them. If you feel that the smell is not obvious, close the doors and windows of the car and check for nasty odors.

2. Are there any water stains on the seat covers? Do the covers seem new in comparison to the car? It is often a tell-tale sign that the dealer is trying to hide something.

3. Also, inspect the undercarriage and the engine compartment for rust.

4. If the engine oil appears muddy, it is a sign that the quality of the car was compromised during rains.

5. Take the car for test-drive to ascertain any type of water damage. Are there any unpleasant odors, unpredicted sounds, or unexpected smoke? 

6. Even if you find no problem after thorough inspection, it is wise to seek help from an expert. Hiring a mechanic may seem unnecessary and expensive. But, it is better to pay for inspection than end up with a lemon. 

7. Learn the car’s history with the help of VIN or Vehicle Identification Number. Obtain free vehicle history report by submitting the VIN on the National Insurance Crime Bureau’s website. 

Better be Safe than Sorry!

It is true that a car is necessity for most individuals living in Baltimore. It is a way of living. And, so you must pay extra attention to the car you choose. Check signs for flood damage, obtain the vehicle history report and find a trusted mechanic to understand the real deal. 

Remember a successful purchase is always a cautious and well-thought one!

Have you found your perfect car after thorough research? If you want to seal the deal, work with a reputed lender. Trust a bad credit Maryland auto loan expert to solve your credit issues. Once you are sure of your financing partner, nothing will stop you from getting guaranteed auto loan in Baltimore.

Why a Car is a Necessity in the city of Detroit?

Cars are an integral part of every American city. And, it has a special bond with the city of Detroit. For Detroiters, buying a car is not a way of fulfilling their passion but it is also their need. Even though the city started a streetcar service called QLine in May, 2017, residents still think of car as their primary choice of commute.

Car: The Need of Every Detroiter

Public transportation is one of the biggest problems of Detroit, and the most widely discussed as well. Learn why even with different options such as buses, streetcars, intercity buses, bike shares, etc. people still prefer buying a car.

• Convenience is the Key

DDOT buses are the only option to go around places in Detroit. It covers the entire city but the problem is that the buses do not run on time. And, it can become difficult when you have to reach your work quickly and efficiently. People Mover rail and QLine streetcars guarantee to help you reach on time, but the service is not available in each and every part of the Motor City.

• Comfort is Important too!

Why choose a car? It is because of the comfort it offers to you and your family. You may prefer the local public transport buses. But, when you think of comfort, you will definitely want to choose your car over anything else. Who would like to wait endlessly at the bus stops that do not have any proper shelter? The truth is your car offers the most comfort while travelling. It allows you to leave your home and reach places at your time and that too, comfortably. Also, weekend getaways become easy when you own car.

• Is Car the Only Solution?

It is a fact that 26 percent of Detroiters do not use car. So, you may think of avoiding the dealership lot. You may think of using the bike to work because 200 miles of the city is covered with bike lanes. But, it is not a complete solution to your commute issues. Also, Uber is available in Detroit, but it is expensive on a daily basis. 

And, the matter of the fact is that Detroiters are connected to cars. They have seen the rise of automobile industry with their eyes. The city has large freeways, and easy parking which make car a sensible option. Also, the safety and security that your car offers to you and your family members is incomparable. So, a car is definitely a sensible choice.

How to Buy a Car in Detroit?

The reason behind fewer Detroiters buying a car is not crowded streets. It is lack of affordable car buying options. The empty roads may tempt you to buy a car but high monthly payments can become a trouble. So, what is the solution? How to buy a car in Detroit? 

The answer is simple. Work with an online auto financing company. Traditional banks and buy here pay here dealerships are not the only options available with you. Today, online lenders have ensured higher approval chances for every Detroit car buyer. Check the lender’s reputation and discuss the monthly payments, interest rates and loan terms in detail. Once you are sure of everything, sign the dotted line and say yes to a comfortable commute!

CarDestination.com is the #1 choice of Detroit car buyers. The bad credit auto financing company is popular in Michigan for ensuring guaranteed Michigan auto loan approval at low interest rates. Work with the loan expert today; get a Detroit auto loan immediately.

How to win the Game of Auto Loans?

A car gives abundant freedom and happiness to its owner. You get the comfort as well as the ease of driving to the place of your choice. But, buying a car is not very easy. Why? The reason lies in your credit score. If you have a bad credit history, the list of the lenders who will approve your loan application becomes severely restricted. But, everything is not lost. Treat buying a car like a game. And, you can win the game, if you play your cards right!

Rules for winning the Auto Loan Game!

• Know your Strength

When you want to win the game and obtain guaranteed auto loan approval, you must understand your strengths. Learn what parts of the loan application will get you in the good books of a lender. Find out your budget. Will you be able to offer a large down payment to the dealer? Is finding a cosigner easy for you? Know how to make the best use of your old car. Find out if selling the car will beneficial to you against trading it for a new one.

• Know your Weakness

By knowing your weakness, you will be able to understand to deal with it in a better way. Before the lender surprises you with the news of your bad credit score, you must be ready with a plan. Check your credit score. If there are any unwarranted transactions on the report, send a note to the credit bureaus and begin the process of removing it. If cash is a big constraint for you, avoid making the down payment. Choose an inexpensive used car to negate the need of a down payment.

• Find the Right Partner

To win the game of auto loans, you need to find the right partner who will increase your winning chances. When you have bad credit score, work with a reputed auto financing company that doesn’t shy away from offering subprime car loans. Usually, traditional banks choose to finance car buyers with excellent credit scores. And, credit unions offer financing options to their members only. So, online lenders are the best option that remains with you.

Find an online auto financing company that offers you a bad credit auto financing deal. Seek recommendations from your friends and colleagues. Read online review and make an informed decision. Also, do not forget to evaluate the loan quote on several different factors such as interest rate, loan term, loan amount, monthly payment, lender’s reputation, etc. Choosing a reliable lender with easy terms will ensure that you get a fair chance of winning the game of auto loans. 

When you want to buy a car, you need the best auto financing partner with you. Get in touch with CarDestination.com to find the best guaranteed auto loan deal. The bad credit auto financing expert will ensure that you find a loan that’s easy on the wallet and improves your credit score as well.

Search Right for buying a Used Car: How does a Consumer Report help you?

Finding the right used car has little to do with luck and everything to do with research. A used car comes with a set of benefits. For one, a used car offers the best value that fits your budget. However, it becomes imperative that you choose the right car that can be reliable in the long run. In order to purchase the best available used car, consumer reports become your guiding compass.

So, what exactly is a Consumer Report?

Technically, a consumer report is an informative statement by various portals that seek to bring accurate data to the consumer. In case of used cars, a consumer report will assist a buyer in correctly ascertaining the cars that are fit to purchase. Additionally, it exhibits an unbiased view regarding the make, model, price and reliability of the used car. Few established consumer report portals include Edmunds, Kelley Blue Book, NADA Guides, etc. Thus, a consumer report will help you to make the right choice while you purchase your next car. 

How will a Consumer Report help in buying a Used Car?

1) Homework Made Easy

A consumer report is data that is valuable to a buyer. Research is a pre-requisite to purchasing a used car. Often while purchasing a car we tend to overlook research. A consumer report makes your task easy by collecting the relevant information and integrating it in one report. If you wish to purchase a used car, you only need the guidance of the latest consumer report to search the required details. For instance, you can identify the few defects that the car possesses prior to the inspection which can save you an expensive headache to replace the parts. 

2) A Reliable Source

A used car in a dealership lot will always contain a window sticker known as the “Buyer’s Guide”. The Buyer’s Guide contains certain imperative information such as the amount of repairing costs that the dealer is obliged to bear and the availability of a warranty, if any. Still, many may ponder on the thought if purchasing a used car is a gamble. A consumer report breaks the longstanding myth. Consumer report portals often run a road test drive of every used car that is rated to understand the effectiveness of the brake in uncertain conditions. Therefore, it is a wise decision to consider a consumer report as it is an unbiased platform to choose your used car. 

3) Save Precious Time

There are numerous dealership lots that would be selling used cars. Sometimes it takes up a large portion of your time to search for the right car at the various dealerships. A consumer report not only saves your time but also helps you to select the car that suits your needs. Different used cars are rated in a consumer report. Picking the make, model and color of your chosen car would be easy. Now you only need to visit those dealership lots that house the used car that you wish to purchase. A consumer report eases your legwork and saves you the time and trouble to go to every dealership. 

A used car has its own set of benefits in terms of cost-effectiveness and tax benefits. However, a consumer report can assist you in reaching one step closer to the car of your dreams. Therefore, persist for the right used car of your choice and ease your buying with the help of a consumer report. 

Chosen a used car? You have made the right financial decision. Now, it is time to get the best used car loans with CarDestination.com. The online bad credit auto financing company offers bad credit no money down car loans to help you buy a used car without down payment.