New Start Auto Loans

If you have never had an auto loan or have limited credit you may be considered a first time auto loan buyer.  Many first time buyers, have no experience in car shopping.  This can make matters difficult because most dealers cannot help a first time buyer get the car loan they are looking for.  Car dealers are limited by the lender programs they have and their knowledge of them.  Since most car dealers deal with prime finance they don’t know how to get a first time buyer a loan.  In order to get a loan as a first time buyer, you will need to understand how an auto loan works.  First off, each lender has programs that are a little different.  If you have found a dealer that has a first time buyer program, you should know what lenders look for to see if they would like to approve your loan.

• Lenders will look at your income to determine you maximum monthly payment. If you have perfect established credit they will usually allow around 18% of your monthly income.  Usually they will calculate this by dividing your year to date income by the amount of time that has past in the year.  Some lenders will allow you to use your current paycheck as an indicator for your total income.  In this instance, it may be beneficial to pick up all of your hours to show your full income.
• Lenders may look at job time.  If you are thinking about changing jobs soon, you may consider staying until you get financed as longer job time will score better than a brand new job.
• Lender will look at your total debt.  If you owe money on credit cards, try to pay these down or off as a high debt ratio is almost always a red flag.
• Lenders may look at time at current address.  If you were thing you would like to move, hold off until you get financed.
• Finally, try to save up for you down payment. If you can put a thousand or two down on your car purchase, you will be much more likely to get the loan you seek.

If you need a car and have very little credit you should find a dealer that has a first time buyer program.  New Start Auto Loans has a network of dealers that have special programs for a variety of different credit situations.

Apply For A First Time Buyer Auto Loan

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Once again it’s tax season. The time when people scurry to file taxes in hopes of getting the biggest refund possible. Many people that have bad credit are going to need a vehicle loan and are wondering how much if any, of their tax return they should use for a down payment. It may be hard to give a blanket answer because their may be a few variables here. First of all, do you have any very important bills that need to be paid? For example, it you mortgage two payments behind and about to be foreclosed upon? If this is the case you should strongly consider using whatever portion of your tax refund toward this that is needed to get you caught up again. If you don’t have anything like this and you still plan to buy a car, I would recommend using most if not all of your refund to use as a down payment on you next car. Of course it would be nice to get a new big screen t.v. but you need to set priorities here. Can a big screen t.v. get you to your job every day? Can a big screen t.v. bring you to the grocery store when you need to get supplies? You can always save up money later for some of those thing but consider this. If you have bad credit, that means you are not going to get the best interest rate. Since you are not going to get the best interest rate, you will pay higher amounts of interest over the period of the loan. If you have a large down payment, will pay less in finance charges because you will be paying interest on less money. If you have a $15,000 balance on a car and put $3,000 at 20% interest you will save almost $2000 dollars in interest charges and have payments that are only $318 a month instead of $397 a savings of $79 each month!

Apply For An Auto Loan Here

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If you are upside down in your auto loan this simply means you owe more to the bank then you can get back on trade in, or outright sale to combat this you will need to do one of the following options 1) Roll balance over on to new loan.  If this is done you are compounding the problem and will most likely have a greater amount of negative equity if you need to trade of your next car during the better portion of your auto loan.  2 Try to find a car that is much cheaper than it should be.  If you can do this you should be able to absorb some or all of your negative equity.  This will be difficult because dealers search all over the United States to find good deals, hence, everyone else is bidding on these deals too.  They usually cost about what they should, especially in today’s market.  3) Pay the difference as a down payment, a combination of this and  number 2 is the best way to approach it if you can but bear in mind, it is good to put money down anyway;  Negative equity will just increase the amount you will need.

Apply For An Instant Auto Loan Here

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