Car Loans Tougher To Get

May 26th, 2008

The trouble that banks have experienced with bad mortgages is now bleeding into auto finance, and it is getting tougher to get a car loan.     Sales of new cars will be down to around 15 million this year, compared with 16.5 million last year.  This will represent the worst year in the industry since 1995.   This is directly related to tougher financing standards.  Leading auto lenders such as Chase, GMAC and Capital One are pulling back on their willingness to lend and many applicants are being turned away, unable to purchase a car.

Now more than ever, shopping around for a car loan is important.

Behind on Car Loan Payments and Want to Trade in?

February 23rd, 2008

If you have fallen behind on your car loan payments, you are not the first person in the world to do so. Sometimes this happens when circumstances of life change, and often the original car is no longer ideal, complicating matters further when you go to trade in.

It doesn’t matter if you are behind on your payments, you can always trade one vehicle for another, but you will encounter some issues: first, you may owe more money on the old car than it is worth plus any fees for late payments. Plus, the interest rate may have increased because you were late.

Your best bet initially is to try to call the lender to help you get current on your payments and reduce your interest rate back to normal. If not, you may want to contact another car loan lender to see if they will refinance your loan to a lower rate.

Next Page »