By: Chris Chandler
Are you in need of a new car, but are afraid it's impossible
because of your bad credit? Well, the fact is that, today,
consumers with bad credit have a wide variety of options
available to them in regards to bad credit auto loans. In fact,
it can be very easy to get the money you need, but it is
important for you to do your research before getting a loan.
If you have bad credit, the first thing that I would recommend
is to find out more about your own financial situation. What is
your exact credit score (FICO) with the three credit agencies
(Experian, TransUnion, and Equifax)? One place that you can find
this information is the free credit report service at
www.AnnualCreditReport.com. At this site, you can place an order
for a free yearly credit report. The credit report has
everything but the credit score. You have to pay extra to get
the scores, but it is worth it. It is valuable information to
have on hand in your search for the best auto loan deal. With
this information, you can do quite a few things to help
yourself. The first thing you need to do when you examine your
credit report is to look for errors. Correcting errors can help
bring up your credit score some. Another way to increase credit
score is to have a friend, or relative, with good credit add you
as an authorized user to their credit cards. This connects their
good credit history to yours. If you simply don't know what to
do, there are credit repair companies that can help clean up
your credit report. I have used a credit repair company in the
past and was very pleased with the results.
I definitely don't recommend getting a bad credit car loan from
the local car dealership where you buy your car. You will
definitely get charged a very high interest rate (APR), and will
most likely be fed a load of bull about the bank "requiring you"
to buy extras like the extended warranty, glass VIN etching,
credit life insurance, etc. etc. The list goes on. One trick
that they also do is to say that your credit score is lower than
it is just to justify higher interest rates. You just need to
know that information anyway. If you don't, it can really cost
you in the long run. Let's use an example. Lets say that you're
getting 12% APR (could be higher) bad interest loan from a
dealership instead of a normal 6.25% APR car loan you might find
elsewhere. True, the monthly payment is only about $40 higher
for the bad credit loan per month, but over the life of the loan
(generally 60 months), high interest really adds up. In the end
you pay an extra $2,500!
Keep in mind that bad credit auto loan lenders usually require
that you have steady employment and a favorable debt-to-income
ratio. Of course, if you cannot demonstrate employment, you are
dead in the water anyway. But what the bad credit borrower needs
to understand is the fact that this kind of loan can come at a
high price, and it pays to research several options before
buying.
One of the best places to find a bad credit lender is online.
There are hundreds of them there out there. Shop around. Simply
google "bad credit auto loan" and several will come up. I would
try to go with a well known, established auto loan company.
Check out its background with the Better Business Bureau. Be
sure to read the fine print and know what the exact terms of the
loan are.
Another place to look for automobile financing is your local
bank. Sometimes when it is hard to get a loan anywhere else, you
can get the money you need from this traditional source. If
nothing else, you can get someone else with good credit to
co-sign the loan with you. The co-signer assumes equal
responsibility for the loan, so it is best to have an open line
of communication with the co-signer about your credit situation.
On any loan, also be sure that there is no prepayment penalty in
the fine print so that you can pay it off early or refinance
easily.
When it is all said and done, a person with poor credit does
have many options available. It is just a matter of doing the
research and keeping an eye out for the best deal available.
Your dream car is within reach, and having bad credit shouldn't
hold you back.
About the author:
Chris Chandler is a successful entrepreneur, webmaster, speaker,
and internet marketing consultant. His website, Christian eBuy,
http://www.christianebuy.com"
Sunday, December 10, 2006
Thursday, December 07, 2006
Car Buying Critical Negotiating Tips
By: Jeff Neilan
O.K. you're patting yourself on the back for all of the homework
you've done on your perspective car that you are going to buy...
so you're fired up and ready to go... right?
It's great that you've done much homework on the car that you've
got your eye on... good job. But, consider this - have you given
any thought at all as to what your negotiating game plan is
going to be? If you really want to maximize your car deal, it
only makes sense to give this area some additional consideration.
Negotiating is skill that can be learned and gets better with
practice. Throughout everyone's life - first as children then as
parents - negotiation occurs rather regularly. Now that you're
looking at stepping onto a car dealership, you shouldn't
suddenly feel as though you've never been involved in
negotiations... I'll bet that you have.
First and foremost, plan to succeed. Simple thought I know, but
it is part of the preparation. If you go into the process
thinking that you would really like to get the selling price
down to a certain figure, but at the same time you're telling
yourself that this probably won't happen... then guess what...
it won't. You won't have the confidence, and the sales person or
sales manager will get work on your shaky expectations and get
you off your target price.
Be mindful of the other hand though. If you go into the car
selling price negotiating process like the proverbial 'bull in a
china shop' you'll probably trip the sales person's and the
sales manager's hot button and they will push back just as
vigorously creating a negotiating chasm.
The key as a polished negotiator is to stay calm and pleasant
and present win-win scenarios.
Secondly - Be prepared. Don't go into any type of transaction
such as buying a car unprepared. Don't just know about the car
and what you want your car to come with - know what each of
these options cost... don't guess or assume... There is profit
to be negotiated upon across the board at any given dealership.
Knowledge is confidence, and sales people will pick up on the
fact that you know of which you talk and this will significantly
cut down on the sales b.s.
Next - Leave yourself wiggle room inside your cocoon of
happiness target. In other words never start with the price you
want to pay. Remember, by definition here we are negotiating
with another person... if you start with the price you want to
pay; you'll have no choice but to negotiate your way up and out
of it. So, if you're will to spend say $15,000 then start at
$14,000 and work to create a win-win somewhere in between. And,
oh by the way... no one in the dealership other than you has or
will have NO IDEA of what you're willing to pay.
Here's a bonus tip - if the sales person kicks off the
negotiations with the first offer, don't counter with a
number... that's right no counter number... instead counter back
with a pleasant ... "I'm afraid that's somewhat beyond my
budget" ... make them come back with another offer to get you in
the game. Now you just gotten a newer offer and you haven't even
jumped in yet. The first offer from the dealer is usually their
'home run' swing... they don't really expect you to serve
yourself up at this point (although some do... and hence the
home run in profit).
Keep in that this is not a one way street. You'll have to
participate and make some concessions in order for your deal to
be a winner. For instance, if you can't get to the selling price
you want then get more for your trade, get an extended warranty
at dealer cost, get some no cost service or oil changes, floor
mats, ... anything that keeps the deal moving forward and the
negotiations open... don't get hung up on 'beating you opponent'
over just one aspect of the deal.
This is where many people get frustrated and either walk away
after getting so close or just give in as a result of the
frustration. Negotiating a car deal is a package not just a
selling price. Sure the selling price is the focal point, but
you have to give the appearance that you are offering some
concession as well. In fact, as your target price get within
range, don't just agree on the price and then begin the delivery
process. If you do... you will be in a much weaker position to
negotiate any extras you may want such as that extended
warranty... you see... make sure all potential aspects of the
deal are in place before you shake hands on the price.
About the author:
Jeff Neilan's car dealer experience offers insightful car buying tips that
save you time and money. Be sure to visit
www.acarbuyersguide.com for car buying advice, pricing and more.
O.K. you're patting yourself on the back for all of the homework
you've done on your perspective car that you are going to buy...
so you're fired up and ready to go... right?
It's great that you've done much homework on the car that you've
got your eye on... good job. But, consider this - have you given
any thought at all as to what your negotiating game plan is
going to be? If you really want to maximize your car deal, it
only makes sense to give this area some additional consideration.
Negotiating is skill that can be learned and gets better with
practice. Throughout everyone's life - first as children then as
parents - negotiation occurs rather regularly. Now that you're
looking at stepping onto a car dealership, you shouldn't
suddenly feel as though you've never been involved in
negotiations... I'll bet that you have.
First and foremost, plan to succeed. Simple thought I know, but
it is part of the preparation. If you go into the process
thinking that you would really like to get the selling price
down to a certain figure, but at the same time you're telling
yourself that this probably won't happen... then guess what...
it won't. You won't have the confidence, and the sales person or
sales manager will get work on your shaky expectations and get
you off your target price.
Be mindful of the other hand though. If you go into the car
selling price negotiating process like the proverbial 'bull in a
china shop' you'll probably trip the sales person's and the
sales manager's hot button and they will push back just as
vigorously creating a negotiating chasm.
The key as a polished negotiator is to stay calm and pleasant
and present win-win scenarios.
Secondly - Be prepared. Don't go into any type of transaction
such as buying a car unprepared. Don't just know about the car
and what you want your car to come with - know what each of
these options cost... don't guess or assume... There is profit
to be negotiated upon across the board at any given dealership.
Knowledge is confidence, and sales people will pick up on the
fact that you know of which you talk and this will significantly
cut down on the sales b.s.
Next - Leave yourself wiggle room inside your cocoon of
happiness target. In other words never start with the price you
want to pay. Remember, by definition here we are negotiating
with another person... if you start with the price you want to
pay; you'll have no choice but to negotiate your way up and out
of it. So, if you're will to spend say $15,000 then start at
$14,000 and work to create a win-win somewhere in between. And,
oh by the way... no one in the dealership other than you has or
will have NO IDEA of what you're willing to pay.
Here's a bonus tip - if the sales person kicks off the
negotiations with the first offer, don't counter with a
number... that's right no counter number... instead counter back
with a pleasant ... "I'm afraid that's somewhat beyond my
budget" ... make them come back with another offer to get you in
the game. Now you just gotten a newer offer and you haven't even
jumped in yet. The first offer from the dealer is usually their
'home run' swing... they don't really expect you to serve
yourself up at this point (although some do... and hence the
home run in profit).
Keep in that this is not a one way street. You'll have to
participate and make some concessions in order for your deal to
be a winner. For instance, if you can't get to the selling price
you want then get more for your trade, get an extended warranty
at dealer cost, get some no cost service or oil changes, floor
mats, ... anything that keeps the deal moving forward and the
negotiations open... don't get hung up on 'beating you opponent'
over just one aspect of the deal.
This is where many people get frustrated and either walk away
after getting so close or just give in as a result of the
frustration. Negotiating a car deal is a package not just a
selling price. Sure the selling price is the focal point, but
you have to give the appearance that you are offering some
concession as well. In fact, as your target price get within
range, don't just agree on the price and then begin the delivery
process. If you do... you will be in a much weaker position to
negotiate any extras you may want such as that extended
warranty... you see... make sure all potential aspects of the
deal are in place before you shake hands on the price.
About the author:
Jeff Neilan's car dealer experience offers insightful car buying tips that
save you time and money. Be sure to visit
www.acarbuyersguide.com for car buying advice, pricing and more.
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