Car Loan

Car Loan Still Not Coming Down in Price

justin — Sat, 27 Sep 2008 12:04:02 +0000

With the world financial market in the situation that it is in, it is not only mortgages that are feeling the pinch, but car loans as well. With this double edge threat to the industry, it seems clear that the financial markets have all manner of difficulties plaguing them. For those individuals who are in the market for a car loan, it can be almost impossible to find what they require in order to purchase a vehicle.

With so much difficulty involved, it can be quite an extraordinary process in order to get a car loan. First and foremost, banks are requiring much more stringent proof of collateral and employment as well as a decent credit score. With so much attention being paid to personal credit and work history, the days of easy credit are long gone and it will be very difficult for individuals to purchase automobiles with a car loan well into the future.

Until the economy comes back around, it will likely continue to be difficult to achieve a reasonable car loan. For those with less than perfect credit, it can be almost impossible to find a car loan that you need.

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Car Loans Still Expensive

justin — Fri, 29 Aug 2008 07:55:34 +0000

Consumers hoping for a cheaper car loan are quickly finding that they are in short supply. Many car loan banks are now offering very high fees, and it is getting harder than ever to get a low rate on a brand new car loan.

Michelle Slade, analyst at Moneyfacts.co.uk, comments: “At the start of next week the new 58 plates will be rolling off the forecourts and motorists would of likely searched hard to find the best deal. However, I suspect much less time and effort is put into finding the best finance deal. Getting the finance choice wrong could prove a costly mistake.

“Before opting for the convenience of forecourt finance, it’s worth checking out how this compares with other deals on the market. There are over 40 providers offering a range of unsecured loans and many offer different rates depending on if you apply online or over the telephone.

“Latest Moneyfacts.co.uk research has shown that, on a £5K loan, the difference between choosing the best and worst loan deal could cost you an extra £769, while the wrong choice on a £10K loan could see you out of pocket by more than £2.4K - or to put it another way, increases the cost of financing your car by a massive 14%.”

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Car Loans Still Hanging Tough

justin — Fri, 22 Aug 2008 10:25:48 +0000

Although there have been rumblings that the car loan market was struggling, it appears as though for the time being it is remaining steady. While some are having difficulty keeping current on their car loans, these loans as well as savings accounts are holding tight. Whether or not this remains the case will have to been seen over the next few months as the housing crisis continues to play out and foreclosures continue to rise.

Sean Gardner, director of Moneyexpert, said: “Banks are boosting rates on bonds and other long-term products at the expense of instant access accounts. They want to know they have money to play with.”

He added: “This explains why there are still some great deals on offer in regular savings and fixed term bonds. Anyone who has some cash set aside could benefit significantly.”

“Having instant access to your cash is a genuine benefit but for many savers it means you have to watch the interest rate set by your bank carefully. If you are in any doubt, compare other offers and see if you can get a better deal elsewhere. It’s a saver’s market so don’t accept a bad rate.”

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Decent Car Loan Deals Still Around

justin — Fri, 15 Aug 2008 11:02:04 +0000

While the car loan market is definitely still having trouble, experts are stating that good deals on car loans are still available, consumers just have to hunt for them. The car loan market has been struggling thanks to the housing crisis, but it appears as though a few options are still available.

“Shopping around for competitive loan before shopping around for the car is essential.” comments Simeon Linstead, head of personal finance at uSwitch.com. “Buying a brand new car is a big expense which can be seriously inflated if the financial arrangements are not researched thoroughly. Trusting consumers may think that purchasing a vehicle from a reputable dealer also means they will be offered the most competitive finance deal - but this is certainly not the case.

“Paying over the top for finance is one expense that can be easily avoided.” he continued, “This really is a case of ‘act in haste, repent at leisure’ as a loan from the dealer could cost the consumer as much as £1,000 extra in interest. Having the money available before choosing a new vehicle can also add to your bargaining power when on the forecourt - you may find you are able to drive down the cost of the car as you strike an immediate deal.”

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Bank Failures Still Affecting Car Loans

justin — Fri, 08 Aug 2008 10:31:57 +0000

The number of banks still experiencing difficulty with the housing market continues to rise, and this is having a definite effect on new car loans. The industry is reeling from the financial crisis and overall availability of car loans is down as a result. For those seeking new car loans, experts advice going to a bank that has not been hit as hard by the crisis. Lenders such as Northern Rock continue to suffer from diminished returns and increased foreclosures. Until this changes, car loans may continue to be scarce for many consumers.

Louise Cuming, head of mortgages at moneysupermarket.com, said: “The key feature of Northern Rock’s £585 million loss in the first half of the year is the significant increase in the percentage of borrowers who are in arrears. This worrying trend will surely only increase over the coming year.

“Northern Rock finds itself in a position where it will be lumbered with its higher risk borrowers who cannot remortgage elsewhere. So as its lower risk borrowers move on, Northern Rock will find its book contains an increasing percentage of the most vulnerable borrowers who are struggling to make their repayments.

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Car Loans Still Affected By Housing Market Woes

justin — Fri, 01 Aug 2008 06:23:59 +0000

Those seeking to get a new car loan are quickly finding that the problems in the housing market are continuing to trickle over into this industry. Those trying to keep up on their car loan payments are finding it harder than ever thanks to rising costs of living and higher mortgage payments. The entire housing market may continue to affect car loans for many years to come.

CML director general, Michael Coogan states: “Market activity during a traditionally a busy time of year for mortgages has been muted by funding shortages and, more recently, dampened consumer demand. While by historic comparisons we still have had a good level of gross lending, new net lending has been constrained in 2008 and this picture will continue for the rest of this year.

“Government efforts to help housing associations purchase new-build properties and borrowers to save for a deposit are welcome, but are likely to have only a marginal impact on the housing market. The recent reduction in short-term fixed-rate mortgage costs is a small bit of welcome news for hard-pressed households facing significant pressures on their finances from the higher cost of food and fuel, in particular.”

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Consumers Urged to Be Careful With Car Loans

justin — Fri, 18 Jul 2008 09:35:20 +0000

As banks seek to lower their risks, many consumers are finding that their car loan rates may not be as low as they once were. Although many don’t even think about the interest on a car loan, experts are encouraging them to get more proactive. Even though consumers need to get car loans, they should still try to save as much money as they can before jumping in.

Ray Boulger of John Charcol stated, “Fixed rates are coming down, peaking last month, now that swap rates have been coming down for the past few weeks. Two-year swaps are down from 6.5 per cent to 5.95 per cent, that clearly gives lenders the opportunity to offer cheaper fixes.

“One has to be careful about statistics showing what the rate is on fixed rate because there is such a variation of arrangement fees. If you simply go on this then the average rate and the lowest rate could be distorted if you have a big fee. There should be clear parameters about how you do these calculations. Some of the statisticians that produce them may be brilliant a looking at data but do not necessarily understand the mortgage market.”

Car Loans and Mortgage Applications Resulting in Turn Downs

justin — Thu, 10 Jul 2008 08:34:02 +0000

Consumers attempting to get a new car loan or mortgage are finding it increasingly difficult to get an approval. Even those with good credit are not getting the kinds of car loans that they are used to and the problem appears to be spreading. Fixed interest rate car loans are very difficult to get, and as a result, consumers may end up spending even more money on their cars, if they can get the bank to approve the loan.

Chris Taylor, the chief executive of Marketguard stated, “There are a host of reasons now, often based on cost, that people are turning away or are being turned away from fixed deals. Our research reveals that even the slightest increase in the Bank of England’s interest rate could tip people over the edge.”

Andrew Montlake, a director at mortgage brokers Cobalt Capital, said: “By taking out this [mortgage] insurance you are effectively adding another half a percent to your mortgage rate to insure against a 1.25% rise. You will almost always be better off remortgaging, but if you are stuck on an standard variable rate then it is a straight call as to whether you want the security and are prepared to pay for it.”

Car Loan Market Continues to Suffer

justin — Thu, 26 Jun 2008 09:34:08 +0000

The entire economy appears to be hanging by a thread as more bad news about housing and car loans continues to come in. Although analysts were hoping that June would bring improvements in the car loan industry, rising interest rates and a lack of new car loan approvals have not helped. Until the housing market is changed for the better, the problems in the car loan industry are expected to continue. It has never been more difficult to get a car loan, especially if you are already in debt or in arrears with other loans.

Howard Archer, an economist stated, “Very low housing market activity seems certain to feed through to further depress already markedly weakening house prices. Those people who took out 100% or even 100%-plus mortgages within the last two years are particularly vulnerable to falling into the negative equity trap.”

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said, “The sheer scale of the collapse in turnover will inevitably have real implications for the economy and make it hard for the Bank of England to accede to the wishes of the money markets and raise the base rate to combat inflation fears.”

Car Loans Now Increasingly Difficult to Find

justin — Thu, 19 Jun 2008 11:15:46 +0000

As the housing crisis news gets worse, banks are making it increasingly difficult for anyone to get a car loan. At this time last year, those that were able to secure a car loan are now finding it impossible. Although many had hoped that car loans would be immune to the housing and economic crises, it appears as though the opposite is true. Rising default rates on car loans are making the matters worse and manufacturers are starting to feel the pinch as fewer car loans are approved.

David Black, Principal Consultant of Banking for Defaqto.com says: “Lenders have tightened up their lending criteria and the rejection rate for unsecured loan applicants is higher than it has been in previous years with Nationwide reporting that they’re now declining about 60% of applications. Many lenders’ annual reports now say that they’re focussing on the acquisition of better quality business.”

“Looking into the future I do expect to see the pressure on Payment Protection Insurance sales and costs manifest itself in higher interest rates being levied on unsecured loans as lenders lose some of their ability to cross-subsidise loan rates with earnings from PPI sales.”