Are you shopping around for a car? Well then, the subject of car financing should be something you should be studying and researching rather seriously! For most of us, the purchase of a car goes hand in hand with getting financing for it. Whether you’re in the market for a new car or a used car, you can get financing for it most times from the dealer you’re purchasing the vehicle from. However, it would be well worth your while to check out a few other different options and dealerships and talk to people or do online research to find out what the competition is doing, as well as what kind of deals are out there for your particular demographic and the particular car you’re looking to buy. Getting your car loan or financing approved is really where the delays can occur. If you are someone who has a handle on their background, has the right paperwork, is armed with the knowledge about your credit score and history and what that means, you can get going in your car that much sooner. If you have good credit history and a good credit score, you’re pretty much set. So it is important to build your credit history.

The vast majority of Americans, close to 90% actually, seek some sort of financing when it comes to purchasing a new car. The biggest and most major hurdle when you’re in the car financing game is, of course, getting credit approval in a timely and stress-free manner. At the end of the day, very few of us can actually walk into a car dealership and point and say “I want that one”, pay cash or with a credit card for the whole amount, and just drive off the lot. So, knowing what one’s options are in terms of finance for your car purchase are quite critical. Having a decent to good credit history is a key factor in successfully getting car financing at decent rates and in the range (dollar amount) that you are looking for. And of course a great credit score gives you all that more bargaining power with your company of choice! Now there’s a good reason to build your credit history! Because the higher the credit rating you can present to the company or bank you’re seeking to get a car loan from, the better the rate of interest and terms, including time to pay back, that you can win yourself.

Whether you are in the market for a new or used car, you should be armed with the knowledge that you need to make the process smooth and hassle free. Since financing a loan for your purchase, be it a new or used car, is probably something you are interested in, taking that little extra time online to get pre-approved will make for less stress down the line. Does the term pre-approved sound familiar? Well, we have probably all received offers for credit cards that scream “pre-approved”. So, in the context of a car loan and financing, what exactly does it mean, and what does the process entail? Pre-approval can be done online using your chosen bank’s website or specialized portal, or when you get on the phone with a representative, answering some questions and finding out the answer. One great reason to apply for pre-approval is that you will get an idea of how much money you can get as a loan, towards your car purchase. Pre-approval, unlike the loan or finance approval, does not require you to have chosen a car, make, model, and narrowed down your choices or reached an almost final decision on which vehicle you want.

Do you suddenly find yourself in need of a certain sum of money urgently? You don’t want to sell any of your worldly possessions, and you also know what you need is a loan. Well, if you have a car and the vehicle’s title is in your name, you can actually get a loan using your car as collateral. A car title loan involves giving your physical vehicle title to the lender, who will place a lien on your car, note the car value, in exchange for giving you a certain amount of money as a loan. When the loan amount and interest owed are cleared, the lien is removed and you get back your vehicle title. If, for some reason, you do not pay the amount back in full, or default on the loan, the lender has the right to repossess your car and sell it in order to clear your dues. Now, there are a number of things you should be aware of should you be planning to go down this path of obtaining car finance loan with the car as collateral. For one, a car title loan is generally best for someone who is looking for a short-term loan.

Did you know that you could get a loan even if your credit history is bad, or you have a huge stack of unpaid cards, or no money in the bank? All you do need is to own a car, and be willing to part with the paper vehicle title and use your vehicle as collateral, as well as allow the store or agency lending you the money, to place a lien on your car for the duration of your loan agreement. How much money you can get as a loan depends on the worth of your vehicle. Generally speaking, a lender will be willing to lend up to half the car value – as in, the resale or Blue Book value of the vehicle. Some lenders may be willing to give you even more than fifty percent of the car’s resale value. The other factors that are taken into consideration when determining your loan amount are the amount you need and your ability to repay the loan as per terms. You must have insurance on the car in order to get a car finance or car title loan in most states in the U.S. And of course, the car in question must be fully paid off and belong to you – which means that the title must be in your name and lien free, with no other pending loans or payments due against it.

So, you’ve decided to skip the whole car buying routine, and are instead leasing a vehicle. Well, there are distinct advantages to this choice. For one, it is overall less money you put on the table. For another, leased cars are generally much newer, if not brand new, and they also are a way to drive around a more expensive and fancier car that you maybe would not splurge or even be able to afford as a purchase. And these days, the economics are in favor of a lease, given that rates of interest being extremely favorable for leasing. When you lease, you get to drive a nice car, for a stipulated period of time, and then hand it back to the dealer when you’re lease is up. But how does insurance work, in such a situation? Is it like when you rent a car, and it is something you get or purchase alongside the car lease? Or is it more like when you’re the owner of the vehicle, and you get insured? The answer is that you must absolutely have lease car insurance for your leased vehicle, and that coverage must be purchased and in place from the moment you start driving the car.