New car loan bad credit information - Fresh Start Finance

If you’re looking for new car Loans bad credit information online, turn to Fresh Start Finance.
We search the whole of the market for the lowest rates and the best deals on new car loans for people with bad credit. Moreover, on supplying you with new car loan information, and mortgage loans for bad credit we won’t charge you any surprise fees or commissions.

Bad credit secured car loan

Purchasing a new or used car can be costly and, if you have a history of bad credit, obtaining finance can be difficult. However, by paying a new car loan off in instalments, you’ll be able to manage your finance more effectively.

What’s more, UK homeowners are able to take advantage of lower Secured Loans interest rates. Due to the extra security this affords to the lender, it’s possible that you’ll be able to find a new car loan at interest rates lower than those afforded by credit cards or unsecured personal loans for people with bad credit.

Putting too much strain on your budget could mean that you end up missing repayments - putting your home at risk. So, to find our how much you can afford to borrow with a new car loan, use our online loan calculator.

More new car loan bad credit information

Fresh Start Finance offers new car loans to people with bad credit histories at interest rates starting from just 6.7% APR. Furthermore, you’ll be able to choose a variable or fixed rate of interest, and even have the opportunity to repay nothing on your new car loan for five month. Visit our friends car rental London

Finance your Car With a Bad Credit Car Loan

Cars have always been high on demand and will continue to be in the years to come. At some point of time we all feel the need to buy a car for our family. The ones who already have a car look for a better/ snazzier make. The increasing demand of cars has led to an increase in car financing companies that offer a variety of loan options to suit the needs of customers from all walks of life, and car loan is cheaper than home improvement loan. However most of these financial institutions rely heavily on the financial stability of the applicant to consider them eligible for a loan. Of all the factors that determine the eligibility, the credit score of an individual is given the maximum importance by most of the financial institutions. Thus people with a low/ poor credit score are unlikely to find favor with such financial institutions.
Nevertheless, a low credit score does not imply that one cannot get a car loan.
There are some financial companies, which have worked out financing plans that works best for the individuals with a low credit score. So, if one has a low credit score, bad credit car loan is the way to go.
Most financial institutions favor customers who are financially stable. The financial stability of an individual is determined by his/her credit score. Therefore the interest rates charged for the plans requiring a decent to good credit score is lower than the financing plans meant for customers with a bad credit score. However, a steep interest rate should not be a cause of worry for the loan seekers. The fact is that a bad credit score can be improved. The best way to improve the credit score is to keep a tab on the expenses. Once the credit score improves, the loan can be refinanced at a much lower rate of interest.
Finding an institution that offers bad credit car loans is not difficult either. Most good financing companies have an online presence. Use the search engines to locate some of them and check out their offerings. Customers should ideally use the online car loan calculators to determine the EMIs. Once the financing plan is short listed, apply for it straightaway by filling in the online order form.
So, those who have been considering their poor credit score, as a hindrance in getting car finance need not worry at all. Search for a good financing company, compare their offerings and ask for a bad credit car loan straightaway.

How to correct errors on your credit report

Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the CRA and the information provider.

First, tell the CRA in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the sample below. Send your letter by certified mail, return receipt requested, so you can document what the CRA received. Keep copies of your dispute letter and enclosures.

CRAs must reinvestigate the items in question--usually within 30 days--unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.

If your report contains erroneous information, the CRA must correct it. If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that you're current. If your file shows an account that belongs only to another person, the CRA must delete it.

When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.

Second, in addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct-that is, if the disputed information is not accurate-the information provider may not use it again. You should do this before trying to get an auto loan as this could save you thousands of dollars in financing charges.

2nd chance finance

This is a flexible secured loan product for those with bad credit ratings or difficult applications.

Perhaps you’re new to Australia, or forgot to pay off your credit card, maybe missed some repayments, you’ve been bankrupt, or just unlucky.

Sure, some people deserve another chance but a careful assessment is done before the finance company will take that risk.

Many applicants reading this may already have been declined or knocked back elsewhere. If this is the case don’t despair. We have unbiased and experienced staff with specialist training for these 2nd chance scenario’s.

Although being secured on your purchase, interest rates for this 2nd chance product are generally higher than all other types of finance, which relates to the level of risk.

The very last chance?
Been rejected by everyone? No-one will listen to your story? You have a shocking credit rating that’s scared everybody away? We may have an answer.

If you require expert advice on your particular situation you can call contact our finance experts who will be able to listen to your situation and work out a solution and package to obtain a suitable finance arrangement for your needs. Call 1300 769 999.

How To Buy a Car With Bad Credit

Buying a car is hard enough without the handicap of a past bankruptcy, repossession or credit card default in your history. Even if you qualify for the best possible finance rates, high-pressure dealership tactics and sleight of hand can add thousands of dollars to the price of your deal.

If you're one of the millions of Americans whose credit falls in the lowest end of the rating scale, you're facing an even greater challenge. For one thing, the interest rate on your loan is going to be dramatically higher than the rates enjoyed by customers with sterling credit. What's more, if the dealer knows you're scared, he may try to pile on even higher finance charges, warranties or insurances, hoping you'll be too cowed to reject them.

But you don't have to be a victim. Remember: dealers want your money as much as anyone else's, and that gives you bargaining power. Though it's easy to forget this in the heat of a sales situation, you have the ultimate trump card - you can walk away - and almost certainly get a similar deal somewhere else.

In this article, we'll arm you with the knowledge you need to get the best car finance deal for your credit situation. Just as importantly, we'll make sure you know where the danger zones lie in the financing process. Follow our suggestions, heed our warnings and you'll be ready to go get your wheels.

Auto Net Financial

Providing Auto Loans for People with Bad Credit If you have credit problems, you can get the financing you need for the vehicle you want....and help yourself re-establish your credit while driving your new car! Don't be taken advantage of because of your credit history. Auto Net Financial can pre-arrange all of your financing at a dealership near your home and take the hassles out of your next car buying experience. Auto Financing Regardless of Credit History
	Auto Net Financial specializes in bad credit auto loans and special finance options for automotive consumers with less than perfect credit. Our nationwide network of car dealers offers bad credit car loan programs designed especially for auto, car and truck buyers with credit problems, no credit, or unique sub prime auto loan requirements. Auto Net Financial helps you pre qualify for bad credit auto loans, a bad credit car or truck loan, or a special finance auto loan regardless of your credit problems or automotive financing loan payment history. Welcome to Auto Net Financial, America's leading bad credit auto loans and sub prime automotive financing company.

Finance your Car With a Bad Credit Car Loan

Cars have always been high on demand and will continue to be in the years to come. At some point of time we all feel the need to buy a car for our family. The ones who already have a car look for a better/ snazzier make. The increasing demand of cars has led to an increase in car financing companies that offer a variety of loan options to suit the needs of customers from all walks of life. However most of these financial institutions rely heavily on the financial stability of the applicant to consider them eligible for a loan. Of all the factors that determine the eligibility, the credit score of an individual is given the maximum importance by most of the financial institutions. Thus people with a low/ poor credit score are unlikely to find favor with such financial institutions.

Nevertheless, a low credit score does not imply that one cannot get a car loan.

There are some financial companies, which have worked out financing plans that works best for the individuals with a low credit score. So, if one has a low credit score, bad credit car loan is the way to go.

Most financial institutions favor customers who are financially stable. The financial stability of an individual is determined by his/her credit score. Therefore the interest rates charged for the plans requiring a decent to good credit score is lower than the financing plans meant for customers with a bad credit score. However, a steep interest rate should not be a cause of worry for the loan seekers. The fact is that a bad credit score can be improved. The best way to improve the credit score is to keep a tab on the expenses. Once the credit score improves, the loan can be refinanced at a much lower rate of interest.

Finding an institution that offers bad credit car loans is not difficult either. Most good financing companies have an online presence. Use the search engines to locate some of them and check out their offerings. Customers should ideally use the online car loan calculators to determine the EMIs. Once the financing plan is short listed, apply for it straightaway by filling in the online order form.

So, those who have been considering their poor credit score, as a hindrance in getting car finance need not worry at all. Search for a good financing company, compare their offerings and ask for a bad credit car loan straightaway.

Vehicle Loan Information

Many lending companies currently offer online sourcing for vehicle loans. Today’s driver can find a way to finance a car, truck, motorcycle, or other vehicle without leaving the comfort of home. But what should be the source when it comes to finding the perfect car loan?

Most buyers will probably go for financing arranged through the car dealership. In this case, the Fast car loan is granted for the full amount plus an agreed upon additional service charge. The loan may be arranged by dealership who then assigns the car loan to an outside source (such as a bank) for management and collection. There may also be a “direct lending” deal where the buyer receives a loan from a financial institution like a bank. As a result, the buyer agrees to pay back the total loan plus an additional finance charge.

A good rule of thumb is to try to keep the price of the car you are to buy at less than 10% of your gross annual income. You will still have to spend money on insurance, car maintenance, and other expenses and an auto loan can be a significant debt that will be on your credit record for many years. You can always trade up if you can afford a more expensive car at a later date. Most experts would advise that you go to the dealership with a budget including financing rates in mind. Arranging the car loan through the dealership may offer special rates.

Another factor to consider with car loans is the length of the term. Often, the longer it takes for you to pay back the full cost of the loan, the higher the interest rate. All in all, any extra consideration a buyer gives to financing a vehicle will often result in a better deal.

How to Obtain a Car Loan

Things You’ll Need:

• Kelley Blue Book
• Consumer Reports
• Internet Access
• Car Insurance
• Car Loans

Step 1:
Choose your new set of wheels and negotiate a price with the seller (see 'eHow to Buy a New Car').

Step 2:
Research interest rates. Several Web sites, such as Bankrate.com, publish surveys of loan rates across the United States. Compare the rates with those offered by your local bank, credit union or car dealer.

Step 3:
Find out what your current car is worth as a trade-in. Research values in the Kelley Blue Book Used Car Guide, available at the library, your bank or on the Internet.

Step 4:
Determine how much of a down payment you can make. Use your trade-in value and cash - or just cash - to come up with the standard 20 percent usually required. Talk with the car dealer that has the new car you want.

Step 5:
Apply where you find the best rates, and the length of the loan and monthly payment fit your budget.

Step 6:
Consider saving more for a down payment or choosing a less expensive car if you don't qualify.

Step 7:
Build a better credit rating if that's what causes you to be turned down. Try again after six months of paying your bills on time.

Tips & Warnings

• If you lack adequate income or a good credit history, lenders won't approve your loan until you prove you can repay it while meeting your other obligations.
• If a bad credit history prevents you from getting a loan, contact Consumer Credit Counseling Service or a similar group.
• Beware of for-profit imitators that promise to cleanse your credit history for a fee.

Things to Look For When Applying for an Auto Loan

For most families, buying a car is probably one of your most expensive monthly payments you have, besides your home loan. That is why it is important for you to shop around when you look for an auto loan, so that you get the best deal, with the lowest monthly payment. The following will help give you ideas on what to look for when you buy a new car, and ways to help you save as much money as possible, when you do buy your car.

One of the first things you should do when deciding on what kind of car to get, is read different publications on the kind of car you are thinking about getting. Check out different books, articles, and publications on the internet, or your library to find out if the car you are thinking about getting is right for you.

The second thing you should do is shop around as much as possible. Check out your local classified ads, dealerships, and internet deals, so that you know you are getting the lowest price possible for your car. You also may want to contact car-buying services and broker-buying services to make comparisons.

The third thing you should do when you have found the car that is right for you is try to negotiate the lowest price possible for your car. Most dealerships maybe willing to lower the sticker price on their cars by as much as 20% off of the MSRP. Whether you are paying in cash or financing your car, getting the lowest price possible will help with lower monthly payments.

You should also consider special ordering your car from a dealer if you do not see the car you want on their lot. Often, the car you want will have options that you do not want, and will have to pay more for them. But since dealers often want to get rid of the cars they already have on their lot, you maybe able to negotiate a lower price for a car that is already there, that has some extra options, but still get a lower price.

Obtaining an auto loan can be tough. After finding the car you want, you then need to shop around for the best deal possible on your auto loan. Most companies are going to quote you different rates, whether you go through the dealership, or through another company. This is why it is always wise to do your homework, and shop around as much as possible, before settling on an auto loan.

If you decide to finance your new car, the dealership may contact their lenders on your behalf. They may not always get the best deal possible for you, that is why it is important for you to contact the lenders yourself, and to try and obtain the best deal possible. You should then compare the deal that the dealership gave you, to the deal that the lender gave you. When you finance a car, make sure not to only pay attention to the monthly payment, as there are other factors that will determine how much you will pay for your car. The total amount you pay for your car will depend on how much you pay for your car, the APR, and the length of the loan. Make sure you take in account all these factors when deciding on an auto loan.

Before you sign the contract to buy your new car, make sure you look over the terms and financing of the car, to make sure you are able to afford it. Before you drive off the lot in your new car, make sure that you and the dealer both have a copy of the contract, and that every bank that needs a signature is signed by both you and the dealer.

In many cases we want just a little bit more then we can afford - this is the human nature. If this is the case consider taking a personal loan for buying a car

Now that you know a little bit more about what to look for when you decide to finance your new car, you will be sure to get the best possible deal. Always look at all of the terms when deciding on whether or not to finance, and make sure you shop around as much as possible to get the best possible deal.

Auto Loans Revealed

The New Auto Loans

Remember those days when you had to find to a loan office or the nearest bank, then finding a way to get to it, just to receive at loan? Well those days have long since passed and now loans can be easily acquired from any where you have access to a computer with an Internet connection. Not only is this new method of receiving auto loans very convenient, but it’s also considerably quick and hassle free. All that you have to do is fill out our application form to the right and wait for you auto loan approval!

Here at 1st Loan Lender we work hard to help you buy the car you desire. Whether you have horrible credit or great credit, we guarantee you will be offered the most competitive auto loan rates on the market today.

What Is An Auto Loan?

An Auto Loan is a very useful tool. Auto loans are unsecured personal loans in which you may purchase an automobile. Like other loans this loan will also have a payment plan which will be decided between you and your future lender. However, auto loans can also be used to buy out a current lease on your car. This will allow you to take full ownership of your current vehicle by paying off the remaining sum still on your lease.

Having a car in our world today is a must have. That is why we at 1st Loan Lender will provided with great auto loan deals, helping you acquire the freedom to travel in an automotive.

Showing You The Way

Not sure how auto loans work? 1st Loan Lender feels that it is our duty to inform you. First you will have to fill out the free, no hassle approval application to your right. Then we will review your initial application and correctly match you with one of our many auto lenders, who of which, will then provide you with the perfect auto loan quote.

It doesn't take long either to hear a response about your free auto loan quote. As soon as the application has been processed you will be contacted and provided with a large list of lenders that are adequate to your standing. You could then be buying your car as soon as the next day!

Car Loans Today

Online car loan

A car loan is simply an unsecured personal loan used to purchase an automobile. Not only can a car loan be used to purchase a car, but car loans can also be used as down-payments on a new or used car. Another way to use a car loan is to buy out your lease, in other words paying off the residual amount of what is left on the car after the lease is up to take full ownership of the automobile.

Overall, a car loan is a great way to finance or refinance all your car needs. 1st Loan Center wants to provide you the most competitive rates for your car loan needs.

Today

It used to be that you had to find a car loan shop or visit your local bank, but today the Internet has made the car loan process much more convenient. Forget the hassle of having to go out and find a car loan lender. Apply for a car loan from your office, home, or anywhere you desire. Use 1st Loan Center for your first car loan and any loan thereafter. We are just a click away.

No matter what your credit history is like, we guarantee that you will qualify for an appropriate car loan. Good, average, or bad credit, it doesn't matter. We guarantee to offer you competitive car loan rates.

Car Loan Process

Of course the car loan application that we provide is entirely FREE of charge! We simply process your application and we match you with a wide range of lenders that provide car loan quotes with different terms and rates. We want to find the perfect car loan for you.

Wondering how long it would take to get a car loan quote? We instantly provide you with a list of lenders and car loan offers right after we process your application. As soon as the very next day you could be purchasing your new or used car of choice.

Just imagine, if applying for a car loan with 1st Loan Center is that quick, imagine how fast you will be driving off the lot with your new or used car!

Used Car Loans

Want to buy a used car but just don't have the funds sat in your bank account? If so, why not consider taking out one of the many used Auto loan available on the loans market.

Used car loans are specifically designed by loans companies to provide used car buyers with a competitive finance arrangement through which to purchase a used car. Flexible loans terms are available from used car loans companies, as well as low APR deals suitable for used car purchases. Used car loans of up to £20,000 can be arranged on an unsecured basis, with loans companies offering higher loans amounts if security is supplied.

Advance plan your used car loans

When buying a used car it pays to do some advance planning and arrange your used car loan ahead of the search for a used car. There are many loans companies out there offering loans for used car purchases, so it makes sense to shop around to get the best loans deals for buying a used car. Look for car loans that are flexible to your needs and offer a low APR, so your monthly used car repayments on any loans taken out won't be sky-high.

As with all types of loans, you should first determine how much you can afford to borrow on loans to buy a used car. Loans calculators are available on the Internet and can be used to calculate loan and repayment amounts in accordance with different APRs. It is important to take into account other financial commitments too, Student car loan, when calculating the loans amount that you can comfortably borrow to purchase a used car.

If you intend to buy your used car from a used car trader where they offer car loans / finance for their used cars, then do make sure that the loans deal you sign up to is better than the loans deal that the used car trader can offer. The APR rate is the critical thing here. On car loans tailored for used car purchases the APR rate - i.e. the rate of interest you'll pay on top of the used car purchase price - can be as low as 6%. Finance loans deals through used car traders may have a higher APR, so pushing the total cost of buying a used car up to an unacceptable price.

One final thought. When negotiating the price of a used car with a trader, they may accept your lower offer providing that you take up one of their loans to finance the used car purchase. If this is an option then do check the terms and conditions of their loans carefully, paying special attention to the loans APR rate, as the savings from your negotiation on your used car may not be as attractive as first imagined when you consider the final costs attached to their loans!

Car Loan Tips

1. Determine your financial situation This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You don't want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years. First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with. From that, you need to remember that buying a car involves more than a down payment and monthly payments. In your budget you will need to include licensing, registration and other hidden costs, as well as monthly insurance costs, gas and maintenance. Once you have all of this worked out, you should have a ballpark figure of the budgeted amount you can use for car payments. A good rule of thumb is roughly 20 percent of your net income can be used for a car payment. Once you determine that figure, stay with it.

2. Decide which car you want Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range. This is really about personal choice, but a good criteria to go buy is to look at what your needs are. Do you have a family? There are plenty of affordable, safe and reliable minivans and station wagons on the market. Single and commute, or do a lot of city driving? The compact segment has a wide range of models to choose from that boast handling and superior gas mileage. Do you use your vehicle for work-related tasks, such as hauling, delivery, etc? Check out the many light and heavy-duty pickup trucks and vans. Midlife crisis? There are several convertibles and sports cars that will make you feel young again. Also consider your wants. Compact cars get really good gas mileage and are a great if you want to save money on the increasing gas prices. Plan on taking road trips? Consider something that gets good mileage and has cargo space and lots of cup holders. Plan on going off-roading? The SUV is your best bet. Some even come with a first-aid kit! Once you've narrowed your choices down to a couple, it's time to do some car research.

3. Do your homework All right, Columbo. Here's where you will need to spend some time sorting through some details, but it will be worth the effort in the end. After all, the more you know about what you're buying, about whom you're buying from, and about the buying process itself, the more money you will end up saving. There are plenty of places for you to do your car research. Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Knowing what a car dealer's competition is offering can only help you out in the negotiating process. Look at interest rates. You'll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment "savings," with interest, you'll end up paying more in the long run. Also be aware of factory-to-dealer incentives. The secret is that the manufacturer refunds a certain percentage of the car's price to the dealer. So even if the car dealer sells you a car at the invoice price, he or she will still make money from the deal. Find out about a manufacturer's incentive percentage, as they are public information. You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.

4. Go to the car dealerships Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off you'll be. But remember: Car dealers are professional negotiators and do it everyday. You are a novice and will be treated as such. The car dealers aren't going to be easy on you, nor are they going to point out all the ways you can save money. It's up to you to find all of those. Also remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Don't let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.

Budgeting for your car

Buying a car could be the second most expensive purchase you make in your life (after a house) so it is essential you consider all the financial implications before you drive away.

What are the purchase costs?

There are a number of initial costs that must be factored into your budgeted purchase price. These include:

• Car registration.
• Compulsory Third Party Insurance.
• Other insurance – if additional cover is required.
• Mechanical or other inspections.
• Dealer delivery charges.
• Government taxes and levies – including stamp duty and transfer fees.

What everyday costs should I budget for?

The most obvious running cost you’ll have is fuel, but with oil prices fluctuating, petrol can be difficult to budget for. In addition to fuel, other costs include:

• Insurance – if you require comprehensive or third party, fire and theft insurance in addition to the compulsory third party included with your registration, this must be factored into your budget as insurance costs can add up.
• Loan repayments – if you required a loan for your car, these costs must be considered.
• Regular services – again, these can be costly, especially if you are not comfortable doing minor work on your car such as oil and filter changes.
• Spare parts and repairs – including tyres, filters, mechanical parts and lights. Repairs, including those for normal wear and tear can soon add up, in particular for non-standard or luxury cars.
• Membership of associations and clubs – annual fees of automobile associations offering breakdown assistance need to be considered in your budget.
• Registration costs – unfortunately, not a one-off payment on purchasing the vehicle, registration is a potentially costly annual financial drain. You may also be required to provide certification regarding the mechanical performance of the vehicle which involves a trip to an inspection station and additional costs.

Working out your budget

Once you have decided on your new car, put down on paper all the potential costs involved with the everyday running of the vehicle. If in doubt, over-estimate rather than under-estimate. And don't forget the fuel costs; with petrol fluctuating up to $1.40 a litre, everyday travel can become an expensive exercise.

Example

Jonathan* is planning to purchase a new car for $30,000. He has decided that he can contribute $10,000 from his personal finances, leaving $20,000 which he is financing with a car loan.

Jonathan's budget

• Fuel – Jonathan estimates that he will travel approximately 300km per week. At an average economy of 10km per litre and a slightly inflated fuel price of $1.45 to take into account any sudden rises, Jonathan's annual fuel cost will be $2262
• Insurance – Jonathan has decided on comprehensive insurance for his new car, costing him $326 per year
• Registration – and compulsory third party insurance will cost Jonathan $732 per year
• Maintenance and service charges - Jonathan has calculated that $300 should cover all his annual maintenance needs
• Loan repayments – annual repayments are $5650
• Club membership – Jonathan has chosen to join his state's automobile association with an annual fee of $150

Jonathan's annual costs for his new car are $9420 which equates to a weekly budget of $181.15.

Should You Refinance Your Auto Loan?

There are four conditions when it is a good idea to Refinance car loan:

(1) When you want to save money by reducing your current loan rate without extending the terms of your loan.

For example, suppose you borrowed $15,000 at 9% one year ago and planned to make payments over a four-year period (48 months). Now auto loan rates have fallen to 7% and you want to refinance for the remainder of the loan term, 36 months [48 - 12 months]. You will save over $2,000 on the total price of your car and lower your monthly payments.

(2) When you are having financial problems and want to lower your current monthly payments

In order to lower your monthly payments, you will have to extend the term of your loan, meaning you will want to take a longer period of time to pay it off.

Suppose you financed $15,000 at 7% for 36 months (3 years). Your monthly payment would be $463.16. By extending the term of the loan from 36 months to 48 months (4 years), you can lower your monthly payment to $359.19, freeing up $103.97 each month to meet your other expenses. If you extended your loan from 3 years to 5 years, you could reduce your monthly payment to $297.02, saving you $166.14 each month.

(3) When you want to reduce the length of the loan in order to reduce your total interest expense.

Suppose you originally borrowed $15,000 at 7% and planned to pay it back over the next five years (60 months). By refinancing and agreeing to pay back the loan over a four year period (48 months), your monthly payment will go up slightly, but you will save hundreds of dollars in interest charges.

(4) When you need to get cash from your current vehicle lease or loan by refinancing and drawing out the equity

If you've almost completed paying off your current lease or loan (for example, if you're $2,000 away from paying off a $15,000 loan) you can refinance the existing loan for equity giving you cash now to pay other debts.