Monthly Archives: August 2017

How Refinancing a Car Works

Refinancing a car loan is actually quite a straightforward process, into far as obtaining any type of credit loan can be straightforward.

 – Can you take out a loan if you have a credit

 – What is a bridging loan

 – Had you get a personal loan

 – How to take out a loan for a car

 – What is meant by the term personal loan

The applicant should need to approach another lender, and request a quotation for another loan, which will in effect pay off the original loan and substitute the new one instead. The new lender will call a certain amount of information before they are able to give  a quotation, which will normally involve quite a lot of detailed information about the  car itself, specific details of the original loan and the amount outstanding on the loan and who the current lender is.

In addition, the applicant will need to disclose much of the same personal and financial information that they disclosed for the original loan, as a new lender will obtain a new credit report credit score and make their decision based on that information.  Refinancing a car loan is primarily about obtaining a new loan from a new lender, but there are also a number of other factors that the applicant needs to consider as well.

How Refinancing a Car Works

Aside from the loan itself, the original purchase is likely to have included some type of vehicle service contracts regarding maintenance and servicing and possibly emergency breakdown regarding the vehicle. In addition there is likely to have been some type of warranty with the vehicle, either a manufacturer’s warranty or a dealership warranty. There is also the question of gap insurance, and how much that costs and who is paying for it.

In addition, the applicant needs to know or work out if there is any penalty cost to ending the original loan. All these are potential costs which may come into play if the applicant ends the original loan and takes out a new one instead. In addition, a new lender may impose certain charges of their own on top of any fees or payment costs that the outgoing lender may also levy regarding early termination of the loan.

None of these are necessarily prohibitive in terms of refinancing a car loan, but they are some of the likely costs that could be involved on both sides of the refinancing package, and the applicant needs to be aware of what these costs are in order to determine whether or not a refinancing deal make sense financially both in the short term and long-term.

Can a Car Loan be Refinanced

A car loan can be refinanced in theory at any point during the period of the loan.  You could in theory we finance a car loan pretty much straight after you have taken the original loan out, though most people consider this. It is worth saying that if for any reason you have rushed into a loan agreement someone, either the manufacturer or a lender then it is certainly worth checking even at the outset of the loan that you have got the best possible deal, and if not to look at refinancing options.

Depending upon how the loan is structured, the majority of repayment costs for the first year maybe 18 months of the loan period largely be  interest payments, and as such refinancing to a better rate of interest can often result in significant savings.

The other issue concerns why people want to refinance a car loan. There are many reasons that can occur at any point of the car loan period. One of the most common ones is that people want to reduce their monthly payments, and restructuring a car loan allows them to do this. They can either do it by getting a better interest rate, or by extending the period of the loan and subsequent reducing the amount they repay every month.

Can a Car Loan be Refinanced

Other people refinance a car loan because either their credit report has improved their credit score and they can obtain a better interest rate, or interest rates generally have dropped and a refinancing deal can effect a better rate of interest.

One of the other main reasons why a car loan is often refinanced has to do with a co-signer. Often if an individual has poor credit or no credit then a lender will require a cosigner to effectively guarantee repayment of the loan. This can honestly put quite a degree of pressure on a cosigner, and they may well come a point during the period of the loan and they want to remove themselves from it.

This can either be because they are not entirely happy with the repayment schedule  of the person who has taken out the loan, or it may be that the original applicant has improved their credit score or has obtained a credit score for the first time, and is able to effectively have the loan in their own name without the need for a cosigner. In that event the financing a car loan is probably the best option.

Refinancing a Car with Bad Credit

Refinancing a car with bad credit can be as easy or as difficult as getting the original loan with bad credit. Perhaps the most important thing that needs to be said that anyone who has what is deemed bad credit is not to be lured into some of the more sales orientated offers, either by a lender or a auto loan broker, who promise wonderful deals either at low interest or specially reduced rates.

Anyone who has bad credit needs to realise that if there are any special deals offered that seem too good to be true, they probably are. Some lenders will try and induce people with poor credit into a loan at what seemed to be preferential or good interest rates, but stack certain other things against them such as balloon payments at the end of the loan, certain fees they charge for documentation etc. If a lender is offering a particularly good interest rate someone who has bad credit, then there is a fair chance that are making up their money somewhere else.

Refinancing a Car with Bad Credit

Bad credit can mean different things to different people, and it is important for anyone who considers themselves to have bad credit to first and foremost get a copy of their credit report, and check to make sure that the information in it is accurate and up-to-date. Certain information I can have a major effect on a credit score normally has a time limit on it regarding how long it can be used within the credit report of what has to be removed.

Once removed the credit report will reflect that and will improve their credit score. Refinancing a car can often make a lot of sense, and if someone is in a position with bad credit it is certainly well worth shopping around to see if they can get a better deal, at the same time it is worth doing what they can to improve their credit report, and once that is improved approach to 4 lenders on the basis of a new and improved credit score which should be able to secure a better refinancing car loan deal.

Best Used Auto Refinance Rates

When refinancing a used auto, it is important to understand the process of how a refinancing deal is put together, and the various factors that affect the rate that is charged by the new lender. Because it is a used auto, people assume that the refinance rates are likely to be higher, whereas refinancing any car loan is a mixture of two or three main factors. First and most important one is the credit score and credit report of the individual who is refinancing  the loan.

That credit report and subsequent credit score may have changed since the original loans taken out, either for better or worse, and this will have a knock-on effect on whatever loan rate is charged for the refinancing deal.

Best Used Auto Refinance Rates

The other factor is that it is a used auto. For some lenders the specs a difference, based on the fact that statistically people who buy used autos are not deemed to be as good credit risks as people who buy new ones, which obviously isn’t necessarily true but statistics can be used in many different ways.

The other factor with a used auto is that it can be harder to establish its true value, depending on the car or truck, how old it is, it’s age and mileage. As any loan is effectively secured against the car, establishing its value and what it is worth can be a key element of the whole refinancing package.

It is a bit of  a cliche but is true, that getting the best used auto refinance rates is about shopping around different lenders, and making sure you can compare them on a like-for-like basis. Some people believe that the best credit terms can be got by going to the manufacturer direct, other people believe that lenders such as a credit union offer best deals. Like any underwriting of any risk, lenders will have their own criteria and they will differ in certain key areas. For that reason it is worth checking different lenders and seeing  what they are quoting, and on what basis it is being done.

Ford Lease Insurance Requirements

Anyone deciding to lease a Ford vehicle is likely to assess the costs involved, one of the major attractions of leasing the vehicle being that it will work out, or should work out significantly cheaper than buying the vehicle outright. Of course they do not actually own the vehicle, it is more like a long-term rental, but nevertheless they still have the use of a brand-new car or truck on a basis that they probably would not have been able to do otherwise.

The costs involved in leasing a vehicle can easily be identified. What is often missed out is the cost of auto insurance and gap insurance, as well as other types of insurance which will be needed on the vehicle, which may or may not be included in the figures at quoted regarding the leasing costs.

Ford Lease Insurance Requirements

A potential customer is likely to be aware of the legal requirements for the vehicle they are thinking of leasing regarding bodily injury and physical damage limits, sometimes referred to generally as third-party liability, but they should also be aware that if they are leasing the vehicle, then Ford are likely to require them to have additional insurance coverage. This normally refers to collision and comprehensive insurance, as well as increased liability coverage for both bodily injury and physical damage.

The Ford dealership will want to make sure that this insurance is in place prior to the customer driving the vehicle away. Ford may well have arrangements with specific insurance companies who can offer good deals, but are unlikely to insist that insurance is taken out with them as a condition of the loan agreement. The Ford dealer will interest however that proof of insurance is produced at the point where the customer signs the lease agreement.

In terms of other types of insurance, the most common one that will be needed is gap insurance, and what is important is to establish who is paying for it and whether or not it is included in the monthly repayment cost of the lease. In addition, it is important to know whether or not things such as emergency breakdown and relocation cost insurance is included in the lease agreement, or whether it needs to be bought as a separate item.

What are Ford Credit Requirements 2017

Ford credit requirements are broadly similar to what is required by most auto lenders such as banks or credit unions. Anyone approaching Ford credit will be required to fill out an application form, either online or in person, where they will need to  disclose a significant amount of personal and financial information, such as their name, date of birth, address, telephone number, social security number or social insurance number, their driving licence, their passport etc.

In addition they will need to get their current and possibly previous employers details as well, and full details of all income from all sources themselves and possibly their spouse as well.

Whilst this amount of information can seem fairly intrusive, ford credit and any lender are trying to establish the risk of lending the money to a potential applicant. This they do primarily by establishing what is known as a credit report from one of the major credit bureaus, who then produce at the end of the process what is known as a credit score. This credit score is the primary way that Ford credit will assess whether or not  to lend the applicant money, and if so on what terms and conditions.

Ford Credit Requirements 2017

Assessing a risk is always to an extent an arbitrary process, and it should be remembered that Ford credit requirements whilst calculated through their website will be done largely on a mathematical basis. What this essentially means is that for some reason the applicant believes that they have not got the best deal they can from Ford credit they should approach a dealership directly and try and obtain a quotation done on a much more personal basis.

Ford credit requirements also relate to the credit history of the individual, and this will be taken into account along with their current use of credit or lack of it. This can seem quite a complex process, but one that is a standard practice in the industry and is used by all major lenders as a way of assessing the risk element of any personal or also loan process.

What are Ford Credit Red Carpet Lease Requirements

Ford  Red Carpet lease is their stand-alone program that they offer to individual customers who are interested in leasing a car or a truck, as opposed to buying one  outright. Leasing a vehicle can have a number of real benefits for the individual, essentially giving them a brand-new car at a much reduced price. It has to be remembered that they do not actually in the car, it is more of a long-term rental with a number of fixed conditions, and certain payments at the end of the lease period.

From Fords point of view, in many ways it is as good as a sale, as they have another customer  on their books, potentially for a long period of time they develop a proper customer relationship with them. The lease period may be for four or five years, possibly shorter, and at the end of that time they hope the customer will either renew the lease on another vehicle, by the original vehicle outright, or by another vehicle  altogether.

Ford Credit Red Carpet Lease Requirements

The requirements for a customer wanting to lease a vehicle on Ford credit  are in many ways pretty similar to those who want to take out a car loan, either with full credit or any other commercial lender. The applicant will be required to submit a significant amount of personal and financial information, and for credit will obtain a credit report and credit score on the individual, and make their determination but whether or not to lease the car to the individual based on their credit score.

As with an auto loan, a lease agreement will have a fixed period of time, a down payment, a fixed monthly repayment cost and some additional costs at the end of the lease period. These additional costs at the end of the lease normally rates to excess mileage and excessive wear and tear. The original lease wording will or should specify the basis for how additional work and tear costs are calculated, and will also include an agreed mileage, either on an annual basis or for the overall period of the lease or both. A

What is Ford Credit Refinance

Ford credit, sometimes referred to as Ford Motor credit, is the finance arm of Ford motor company, and offers credit finance to social customers in all of them to buy or lease a new or a used Ford car or truck. Refinancing of Ford credit is when an applicant has successfully obtained a credit loan finance from Ford credit, and for a number of reasons sites to refinance the original credit agreement.

Refinancing any car loan is a very normal and standard part of the auto loan industry, and refinancing a loan originally with Ford credit can often be beneficial to the original applicant. People often approach for credit in the first instance when buying or leasing a Ford vehicle either because they find the idea of obtaining credit from the same source as they are buying the vehicle and attractive option, or because for credit have offered them a good finance package that makes the deal worthwhile.

Ford Credit Refinance

Seeking to refinance a Ford credit agreement can occur because the lender may well wish to alter their own personal financial situation. One of the most common reasons is that the applicant will wish to alter the amount they pay on a monthly basis, known as a monthly repayment cost, which will have been agreed when the original loan taken out with Ford credit.

Often when people take out a car loan they work out how much they can afford by way of what their monthly repayment costs are likely to be, as opposed to an overall final figure that includes the value of the car and the total cost of credit for the period of the loan. People approach a loan and how they can afford by way of working out their current monthly incomings, and their regular monthly outgoings, and making sure that the difference between the two sufficient to cover the cost of a car loan.

Assuming it is, people than have some idea of how much of a budget they have and how much they can afford to borrow. If for any reason this changes, for better or worse, then it is highly likely that the applicant of the original loan will seek to refinance it, either to increase or decrease the amount they repay on a monthly basis.

Best Credit Deals for Ford SUV Models

Buying a Ford SUV is sometimes thought of as quite an expensive process, and no question that SUV’s generally can be quite pricey. It is even more important therefore that when arranging finance or credit, great cats taken to make sure that the  best possible arrangements are made. This can include the option of considering refinancing the car loan once has been taken out, and what do if anything regarding trading in of an old vehicle.

Arranging finance or credit for a Ford SUV model is no different in essence to arranging a loan for any other type of Ford car or truck. Finance can be sought either through a Ford dealer, or through another lending institution such as a bank or a credit union. The important thing when obtaining different quotations from different sources is to make sure that you are able to compare them on a like-for-like basis. Having different quotations is important, as it can give the customer an indication of what realistically they should be being charged for any money  they might borrow.

Best Credit Deals for Ford SUV Models

How much a loan repayment costs inevitably stems from the credit score of the individual, and how much of fully they are charged by way of interest and any other charges that may be levied on the loan. A Ford dealer should have access to a wide range of different lenders, and should be able to secure a reasonable return for the individual. It is possible that the Ford dealership can quite legitimately markup whatever interest rate they are being quoted when it is given to the individual, and any customer should negotiate hard as to what interest rate they are charged, again based on any quotations from other sources they may already have.

One of the advantages of obtaining financial credit from a Ford dealer, known as Ford credit, is at the dealership may well be able to offer certain  offers on certain models that can combine rebates, low-cost finance, special deals etc. It is unlikely they will tie in the finance as a condition of these other reductions, but overall it can make a package very attractive financially and should certainly be investigated.




Best Place To Buy New Ford Trucks

Buying a new Ford truck will mean buying it from a Ford dealership, the question then becomes which one. One of the many advantages of the Internet is that it is possible to obtain a wide range of quotations from different dealers for exactly the same truck, and essentially play them off against each other in order to get the best deal. This is widely becoming standard practice, and certainly in the best interests of the customer.

The question is how willing the customer is to spend time and effort on this type of negotiation, and how willing they are and how far they are willing to travel outside of where they live in order to secure the best deal on price and finance.

Best Place To Buy New Ford Trucks

The first thing to do is for the customer to make a decision about what choice of truck they want to buy, and what they think is a realistic price that they should be paying for it. This does require a degree of digging online, but the information is there and can easily be found. It will give the customer a very detailed analysis of what their position should be and how much they should be paying for the truck.

Aside from what is commonly referred to as the list price of the truck, there are always extras that can push the price up. These can be legitimate extras that the individual wants as part of their purchase, or can be standard industry charges such as dealership fees, delivery charges etc. The important thing when negotiating a price is to make sure that all these items are specified so that different dealers will be quoting on exactly the same basis.

This should also include items such as a warranty, possibly extended warranty, servicing and maintenance plans, emergency roadside assistance plans etc. Often a dealership will do a good deal on some of these things as a way of inducing a sale, and effecting a long-term relationship with the customer. If the customer is willing to travel, this can often be a hugely attractive and much cheaper option.