August 13th, 2008 by admin

So what do you get for that 30% premium you pay for buying a new car instead of a two- or three-year-old used one?

* A longer, more comprehensive warranty. Of course, that discount special parked in front of Joe’s Bait and Easy-Pay Used Cars doesn’t have any warranty at all. But the best used cars — the lightly used former lease cars sold by new car dealers under factory “certification” programs — do come with warranties. While “certified” cars can offer good value, certification-program warranties are never as good as that manufacturer’s new-car warranty. Some new car warranties even cover oil changes and the like, for three or four years, or as many as 50,000 miles.
* The latest safety, convenience, and environmental features. This one speaks for itself. If you want the best airbags and electronic stability systems and super-deluxe seat-warmer doodads — and the cleanest engines — you’ve got to buy new.
* A car that lasts longer. Beyond the obvious — a new car should have two to three years’ more life in it than a two- or three-year-old one — there’s an additional advantage to buying new. Are you a stickler for maintenance? If you are, your car will last longer and deliver more value. But unless you’ve got access to a used car’s full service history, you don’t know whether its first owner changed the oil once every 3,000 miles, or once a year. Careless maintenance early in a car’s life can have long-term effects that might not show up until much later.
* Better financing terms. Unless you’re planning on paying cash for that new ride, financing costs will be a large chunk of what you pay to own your car over the first few years. Buying new entitles you to low-cost factory financing and (often) special deals, which can represent a considerable savings over a bank loan. And even if you do finance through your bank, you’ll often pay more on a used car loan. Rates on used car loans from major banks such as Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) are often a full percentage point higher — or more — than their new car loan rates.
* A simpler purchase process. Buying a new or used car is nobody’s idea of fun. But when you’re buying new, you know what’s available, you know where to go to get it, and most importantly, you know what it’s going to cost you. It’s easy to find a new car’s “invoice” price — the dealer’s cost — from sources such as Edmunds.com and Consumer Reports, and to learn the average selling price of your desired vehicle. The price you end up paying will vary from there depending on your negotiation skills and local supply and demand, but it won’t vary like used car prices do.

One last note: all of the above points assume that you’re planning to own the car for a long time, until it’s old and tired. If you’re the sort who likes to trade every two or three years, I urge you to consider used-car options carefully. You take a financial hit every time you trade in a car, and that hit gets bigger if you have to eat new-car depreciation every time around. Whatever you decide, add up the total costs before you buy, and make sure that your new purchase won’t get in the way of your long-term financial goals.

August 13th, 2008 by admin

Auto loans for students are designed in such a way that students can easily get the loan with affordable rate of interest. These loans are approved without any hassle. The students can easily afford these loans.

Auto loans for students are more flexible than other loans. Students can choose the loan features according to their convenience. Like other car loans these loans are also secured in nature. The loans are secured with the car and if the borrower cannot repay the loan, the lender sells the car to recover the loan amount. Bad credit students will have to pay high interest rate than the good credit students. There is no need of a co-signer. The loan rates can be lowered by searching for the suitable lender for you.

Student auto loans can go up to $36,000. If you need more money as the loan amount you will have to have a good credit rating. If you want to buy the car from preferred dealers it is fine. If you want to buy the car from anyone particularly, you will have to search for lenders who allow that. You can choose short term or long tenure to repay the loan. Before applying for these loans you must calculate the other expenses which come with a car. They are car insurance, car maintenance and fuel. You must plan your repayment period which will help you to repay the loan easily. You can enjoy driving and your studies without any tension.

Offline lenders, individual lenders and online lenders offer auto loans for students. Online loans can be available through the internet. You can do some research to get the cheaper loan. Online loans are approved quickly and are convenient for the borrowers. The loan amount is transferred to your bank account within few days of loan approval.