TopConsumerReviews.com Best Auto Loans
      November 20, 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. USAA
  10. Instant Car Loan
  11. 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

Ballroom Dancing Lessons

Copyright Registration

Drum Lessons

Home Security Systems

Painting Lessons

PMS Relief

Self Publishing Companies

VOIP Services

Website Templates

Wedding Planning Software

Wedding Websites

Wills

 

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.

Southeast Asia's Largest Used Car Platform To Provide P2P Financing

Southeast Asia's largest used car trading platform Carsome on Monday said it would partner with a peer-to-peer financing platform, Funding Societies Malaysia, to enable loans on its platform. As part ...

Published:  Mon, 18 Nov 2019 03:18:00 GMT



Auto Lenders Dial Back On Loans To Customers With Riskier Credit

Borrowers with bad or just less-than-great credit histories are having more trouble qualifying for auto loans, but for most new-car buyers, loans remain readily available, according to credit bureau ...

Published:  Wed, 13 Nov 2019 05:17:00 GMT



Auto loan originations near record high, as household debt soars

As U.S. household debt reaches a trillion-dollar milestone, more Americans are taking out vehicle loans. Continue Reading Below Auto loan balances increased by $18 billion in the third quarter, ...

Published:  Wed, 13 Nov 2019 12:57:00 GMT



Car Finance Market Shaping from Growth to Value | Key Players: Ford Motor Credit, Toyota Financial Services, Ally Financial

Nov 18, 2019 (AB Digital via COMTEX) -- The "Car Finance - Market Development Scenario " Study has been added to HTF MI database. The study envisage qualitative as well as quantitative market ...

Published:  Mon, 18 Nov 2019 05:43:00 GMT



What Kind Of Investor Owns Most Of Axis Auto Finance Inc. (CVE:AXIS)?

A look at the shareholders of Axis Auto Finance Inc. (CVE:AXIS) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see ...

Published:  Mon, 11 Nov 2019 16:03:00 GMT



Auto loans, mortgages drive Q3 household debt higher

Auto loan originations remained high in Q3 at $159B, a small increase from Q2 2019; mortgage orginations, which include mortgage refinancing, stood at $528B vs. $445B a year earlier. Credit standards ...

Published:  Wed, 13 Nov 2019 17:22:00 GMT



Rising car prices force man to buy $27,000 Jeep with a $45,000 loan

John Schricker took out a loan to buy a car in 2017. Then he took out another. And then another. In two years, the 40-year-old electrician signed up for four auto loans, each time trading in the ...

Published:  Mon, 11 Nov 2019 09:04:00 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