Companies Launch Car Incentives to Replace Leases

Several companies are launching financial car incentives to compensate the loss of leasing as a viable sales tool.

The moves come after all three Detroit auto makers changed their leasing programs in recent days. According to Bloomberg News Chrysler has stopped offering leases through its Chrysler Financial unit, while General Motors, Ford Motor Co. and BMW announced plans to tighten the availability of leasing.

According to the Saint Louis Post Dispatch Chrysler on Friday announced several finance deals "to make buying as affordable as renting," the automaker said in a statement. The deals include 72-month financing on a wider range of vehicles and $2,000 cash-back on certain purchases financed by Chrysler Financial.

And CNN reported that Chrysler not only has extended discounted six-year financing to more products, but is offering $750 to lease customers that can be used toward the purchase of a new vehicle. The company is also offering 40 percent off select Dodge Ram pickups as part of its August incentive program for dealers and BMW several weeks ago began offering buyers 0.9 percent loans of as long as five years Bloomberg News reported.

GM meanwhile is offering its customers $1,000 off various V-6-powered versions of the Chevrolet Malibu sedan and the Pontiac G8 sedan that hit showrooms this spring. According to Dow Jones Newswires the auto maker will continue to offer six years of free financing on its large SUVs and up to $8,000 off a GMC Envoy or Chevy Trailblazer.

Buyers also can get a deal on the Corvette sports car, up to 48 months free financing. Even though GM has offered zero-interest loans on the iconic Chevy before, the company’s never done it for such a long time.

So even though leasing is getting tighter or eliminated not everything is looking bleak for those looking to purchase a new car, just try to find the incentives that best adjust to your budget before heading to the dealership.

Tips for the Up-selling (Or)Deal after the Deal

When buying a new car, there is always the point after you agree to purchase a vehicle where you are passed off to a "financing specialist" (a.k.a. adept sales representative)  to deal with financing the vehicle and getting asked a litany of questions about warranties, protectants and other add-ons.

Here are a few tips about preparing for this process that were shared in a recent article on CNNMoney.com. Before you go to the dealer, check out your credit score and get loan quotes from other sources as a back-up and to know what you qualify for. Remember that the financing rate is negotiable too. As far as extra insurance, warranties, anti-theft add-ons and protectants, many experts like Lauren Fix are dubious of their necessity. Especially, since many cars these days come with long powertrain warranties, the best coats of long-lasting color and some sort of anti-theft protection built in.

On the other hand, many experts admit that add-ons might be worth consideration if you plan on having your vehicle for a long time, or if you are purchasing a valuable car. So before you have to sit across from a sales expert, you should know what your car comes with, a starting auto finance rate and if you really need any extra security in terms of maintenance and theft protection.

Car Financing 101

The BuyingAdvice Team was surprised by the results of our recent financing survey that stated only 22 percent of car buyers request multiple loan quotes before shopping for a car and a whopping 43 percent plan on arranging for their financing at the dealership. We strongly believe, in order to get the best deal, financing should be arranged prior to arriving at the dealership.

The industry-backed group AWARE, Americans Well-informed on Automobile Retailing Economics, confirms that the majority of car financing was done at dealerships last year. Car dealerships make enormous profits by providing their own financing to auto buyers, so they really want you to borrow only from them, according to the National Association of Consumer Advocates. By obtaining an auto loan through your bank for an amount you can afford before purchasing a car, you'll find yourself in greater control when negotiating a final price.

Make sure you are not an uninformed buyer when purchasing your next vehicle. Get multiple loan quotes before you shop and always request quotes on-line through sites such as BuyingAdvice.com in order to get the best deal.

Are Home Equity Loans A Good Option To Finance Your New Car?

Although not as popular as a regular bank new car loan, a home equity loan is another way to finance your new car. You should ask your accountant or tax advisor how getting a home equity loan to buy your new car could be beneficial based on your particular finances, but here are its main pros and cons:

PROS

Low rates: Banks often give favorable rates on home equity loans because real estate is perceived to be a stable investment.

Tax savings: The interest you pay on a home equity loan may be tax-deductible.

CONS

You could lose your house: If you don't make your aouto loan payments, not only may your car get repossessed, but the bank also may take your house.

Interest rates may rise: A home equity line of credit, or HELOC, usually has a variable rate that could rise significantly over several years, making it more difficult for you to meet your payments.

Possibility for fraud: You should contact the Federal Trade Commission to be aware of any known fraudulent loan practices that may cause you to lose your house.

For more details visit the Federal Reserve Board and the Federal Trade Commission.

Online Car Financing: An Easy And Quick Way To Finance Your New Car

Applying for a new car loan at a bank is generally a long and complex process. But the Internet has made things easier with online car financing. By asking for an online car loan quote, a network of lenders and dealers will promptly secure financing for your new vehicle. When you ask for an online auto loan quote, you'' get the following benefits:

Easy And Free Application Process
In just a minute, and with no cost, you can apply for financing by simply filling out an online auto loan form.

Privacy
Data protection is guaranteed.

Quick Response
Generally, you'll find out if you've been approved within half an hour of applying.

Shop Like A Cash Buyer
Once you're approved, you'll receive a cash check that can be used at an online buying service or at your local dealer.  This will allow you to negotiate the purchase of the car without worrying about negotiating financing as well.

Low Interest Rates
Regardless of the car you're buying - banks generally charge higher rates for sports and luxury cars - you'll be able to obtain financing with lower interest rates, even if you don't have a great credit score.

Ask for a new auto loan quote and see the results of online car financing for yourself.

Finance a New Car: Are Banks A Better Option Than Credit Unions?

Banks and credit unions are two common sources for financing a new car. Both of these lenders have pros and cons you should be aware of before deciding which to use for your automobile financing.

BANKS Pros May offer low interest rates. Financial transactions can be handled online. Possibility of refinancing. Cons Long waiting and processing times. Business hours are limited. Strict approval policies. CREDIT UNIONS Pros Nonprofit Low interest rates, usually even lower than banks. Possibility of refinancing. Cons You must meet membership eligibility requirements. Not all are insured. May not offer as many services as a bank.

For more details visit your local credit union, or its website, or go to: Credit Union National Association's credit union locator.

Ways To Work Makes A Bad Credit New Car Loan Easy

Many drivers who are down on their luck simply need a helping hand to begin to climb out of debt.  That's why there is Ways to Work.  Ways to Work is a non-profit organization that operates throughout the country and can offer a bad credit new car loan to almost any driver looking for a new car.

Ways to Work offers small two-year loans that have a fixed 8% interest rate and a fixed $182/month capped payment.  This loan can really help drivers who just need that little helping hand to get back into a vehicle so that they can get to and from work and begin to generate a regular income.

Ways to Work began as a small organization in Minnesota but has since spread throughout much of the U.S. Click here to find the office nearest you.

Ford Car Dealers Announce New Incentives For Pickups

To help kick off its "Truck Month" campaign Ford car dealers have announced that they will be offering low-rate automobile financing for its 2006 and new 2007 F-series and Ranger trucks.

Ford will be offering 60 month, zero percent interest financing deals on its entire 2006 pickup line.  These new financing incentives will also extend to the new 2007 F-series Super Duty and Ranger pickups.  For the 2007 vehicles you can get a 60 month loan at a very low interest rate of 2.9% or you can opt for the $2,000 cash back rebate on these 2007 models.

Ford has been looking for a way to sell their overstock of pickups.  Hopefully these new offers will give consumers the motivation they need to consider one of Ford's great pickups.

Read more in "Ford Offering Cheap Loans On Pickup Trucks."

Considering Car Trade In Value During A New Car Purchase

So, you've narrowed your new car search down to just a few models.  They will all serve your needs equally well and they are all similarly priced.  How do you determine which one is the right car for you?

One question that you may not have asked yourself is this, "if I decide to sell my car in the next few years what will it be worth."  Different models of cars vary greatly in how quickly they loose their original value.

Fortunately websites like ALG can help you solve this problem.  The people at ALG have calculated and compiled a list of the vehicles that are the best and worst at holding their value.  Vehicles that received a higher rating are almost certain to hold their value much longer than lower rated vehicles-barring any accidents or improper maintenance.  Incidentally these cars also make the best car leases.

Be sure to consider your cars residual value when you are buying a new car.

Read more about residual value in "Don't Ignore a Car's Residual Value."

Don't Become Upside Down, Know Your Car Trade In Value

More and more Americans are getting turned upside down in their cars.  "Upside down" is a term used to describe a situation where more money is owed on a car than the car is worth.

Remember, the average car loses about ¼ of its value in the first year-this means that your car trade-in value falls by about 25%.  If you have paid for less than ¼ of your car's original price at this time then you may already be upside down.

The best way to avoid this situation is to pay for your car as quickly as you can.  A larger down payment and a shorter loan period with larger monthly car payments may actually save you money and help you build equity quickly.

Read more in "Expert: Avoid, Pay Off Upside-Down Auto Loans."