TopConsumerReviews.com Best Auto Loans
      May 25, 2019

Home  >  Auto Loans  >  Articles

Best

Auto Loans

  1. LendingTree
  2. LendingClub
  3. My Auto Loan
  4. Cars Direct
  5. Road Loans
  6. Automotive
  7. Auto Credit Express
  8. OneMain Financial
  9. iLoan
  10. USAA
  11. Instant Car Loan
  12. Web 2 Carz

Compare Products

  • Select any 2 companies in our reviews to compare them head-to-head!
  • Compare

Your Information Is Secure
Worry Free Car Care Manual Newsletter

Latest Reviews

Cruise Vacations

Fruit Baskets

Hair Removal

Learn to Read Programs

Menopause Relief

Paid Surveys

Pet Meds

Pool Tables

Tax Software

Watches

 

Related Articles

Are Auto Loans Through A Car Dealer A Good Idea?

Auto Loans Versus Auto Leases

How Much Car Can You Afford?

How Your Auto Loan Can Be Affected By Your Credit Rating

What To Look For When Shopping For An Auto Loan

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

How Much Car Can You Afford?

It finally happened. Your old car – the one you had decided you would keep until it literally fell apart – has finally bit the dust. Or maybe you’ve decided the time is right to upgrade to an SUV to help get you through those rough winters.

No matter what your reasons, if you’ve found yourself in the market for a new or used vehicle, then one of the first steps in the process is to decide how much vehicle you can afford.

There are financial rules about how to know if you can afford many things. Rent on a place to live should be no more than one week’s paycheck. A monthly mortgage payment should be no more than 20 percent of your salary after taxes.

A similar rule applies to knowing just how much you can afford when it comes to purchasing a new or used vehicle. Financial experts have suggested that no more than 20 percent of your monthly income after taxes be spent on an auto payment. That includes factoring in the purchase price, any down payment you are able to make, and the interest rate and term of the loan.

Estimating your monthly payments, based on the purchase price, down payment and financing options, also is important. If interest rates are low, it allows for buyers to get more for their money. However, if you have less than stellar credit, it will affect the kind of interest rate you receive on any loan. If you are subject to a higher interest rate, it would be wise to seek out a less-expensive vehicle to offset the larger interest amount you’ll be paying.

One of the best ways to lower your monthly payment and get a lower interest rate is to put a significant chunk of money down on the vehicle you wish to purchase. If it is in your budget, try to put down at least 10 percent of the vehicle’s purchase price in the form of a down payment. The higher the down payment is, the lower the monthly payment will be, which can increase your ability to pay off the loan sooner.

Another very important factor to consider is the maintenance costs for the vehicle you will be purchasing. Most brand new vehicles come equipped with three year or 36,000 mile warranties at a minimum. A few car dealers will offer warranties on the power train that can extend to 60,000 miles or more. These warranties only cover the cost of repair work, and not the annual maintenance that is a part of owning a vehicle. Annual maintenance items include oil changes, tire rotations, replacing tires and flushing/filling various fluids in your vehicle. The average vehicle owner spends 1.5 percent of their annual income on vehicle maintenance each year. Be sure to factor that in when determining if a particular model is affordable for you.

Last but not least are the costs to fuel and insure your vehicle. With gas prices currently at $4 or more a gallon in the U.S., many consumers are purchasing smaller, more fuel-efficient vehicles. According to information collected by AAA, the average cost of fueling a small sedan annually is $6,735. SUVs and large sedans were the least fuel efficient, costing between $8,000 and $11,000 annually to fuel.

Vehicle insurance also is an important factor in the affordability of any vehicle. Newer models always cost more to insure than used vehicles. Insurance rates also will depend on the number of miles you anticipate driving annually, and whether you drive in a high-risk area for automobile accidents.

Once you have factored in all of these items, you will have a decent idea of just how much car you can afford.

What's the Best Way to Get a Car Loan If I Have the Income but Not a Good Credit Score?

As Jalopnik's resident car buying expert and professional car shopper, I get emails. Lots of emails. I've decided to pick a few questions and try to help out. This week we are discussing low ...

Published:  Fri, 24 May 2019 09:24:00 GMT



Auto loan intermediary To Prosperity Technology files for an $8 million US IPO

To Prosperity Technology, which provides auto loan services for ridesharing drivers in Sichuan, China, filed on Friday with the SEC to raise up to $8 million in an initial public offering. The Sichuan ...

Published:  Fri, 24 May 2019 09:59:00 GMT



Arizona consumer groups want to crack down on high-interest car title loans

PHOENIX (3TV/CBS 5) -- Arizona got rid of payday loans a decade ago because of exorbitant interest rates that preyed on low-income families. Now, some Arizona advocacy groups are pushing to crack down ...

Published:  Thu, 23 May 2019 17:15:00 GMT



Forgiving Student Loan Debt Frees Consumers To Pursue Better Opportunities

In fact, student debt is the second largest consumer debt in the US, trailing only mortgage loans-and surpassing car loans, credit card debt, and home equity lines of credit. Many people who currently ...

Published:  Thu, 23 May 2019 18:20:00 GMT



Personal Finance: Here are a few tips for financing a new car

Buying a new car can be a stressful experience, especially if it involves financing. Many buyers rush into the process unprepared, which can end up adding to the cost of the transaction. Here are a ...

Published:  Tue, 21 May 2019 21:08:00 GMT



CarGurus Boosts Its Digital Retail Offering with Capital One Auto Finance Partnership

CAMBRIDGE, Mass., April 30, 2019 /PRNewswire/ -- CarGurus CARG, +0.28% a leading global automotive marketplace, today announced a partnership with Capital One Auto Finance that will benefit both ...

Published:  Fri, 24 May 2019 07:43:00 GMT



Drive Auto Receivables Trust 2018-4 -- Moody's upgrades DART and SDART subprime auto loan ABS issued from 2015 through 2018

READ NOW: HUD Secretary Ben Carson defends his Oreo gaffe and blames people for trying to 'ridicule' him, saying 'of course' he knows what an REO is » ...

Published:  Wed, 22 May 2019 15:09:00 GMT



Car finance jargon explained and the small print to look out for

Unless you're lucky enough to have enough savings to cover the full cost of the car upfront, you may want to consider finance to help you spread the cost over more manageable instalments. To help ...

Published:  Thu, 23 May 2019 09:00:14 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure