TopConsumerReviews.com
      July 21, 2018

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

Your Information Is Secure
Worry Free Car Care Manual Newsletter

Latest Reviews

Business Cards

Company Incorporation

Credit Repair Companies

Home Warranties

Meal Delivery

Medical Alert Systems

Mobility Scooters

Pet Insurance

Refrigerators

Whiskey Clubs

 

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.

Are Auto Loans Through A Car Dealer A Good Idea?

The average cost to own a vehicle these days – including monthly payments, gas, insurance and maintenance – is over $10,000.

It is a hefty amount to put out each year, considering a vehicle is one of the worst investments a person can make. Unlike other investments, such as real estate, vehicles depreciate in value every year. From the minute you drive off the dealer’s lot, you’re vehicle already has lost about 10 percent of its value.

Knowing the facts and figures about owning a vehicle doesn’t stop people from having them. With public transportation in some areas lacking, vehicles are required to get around.

For most people in the market for a new or used vehicle, securing a loan to help finance the purchase price is necessary. While most auto dealers offer on-site financing as part of the convenience of doing business with them, it may not always be the best idea to opt for this kind of financing, as it usually is the most expensive option.

Auto dealers account for the source of nearly 80 percent of all new vehicle financing. But while auto dealers have a variety of financial institutions available with which to broker you the “best” deal, they also tend to add on hidden fees to earn a little extra money on the side for offering that convenience. Car dealers, by law, are permitted to tack on as much as 3 percent in fees to any loan it helps to secure for its clients. Many vehicle buyers are unaware this occurs, and assume the rate they are getting is based solely on what the financial institution offered the auto dealer.

Car dealers also are not subject to the same rules and regulations as other financial institutions when it comes to lending practices. In 2010, Pres. Barack Obama signed into law new legislation designed to protect consumers seeking loans from financial institutions. The law is intended to protect the consumer from unethical lending practices. However, it does not extend to car dealerships. Auto dealers also are exempt from other important consumer protection laws such as the Truth in Lending Act.

The Better Business Bureau reports that car dealerships are the most-reported industry for complaints it receives from consumers.

So are auto loans through a car dealer a good idea? The answer is a resounding no.

The best way to finance a vehicle is by securing a loan before you ever set foot on a dealer’s lot. One of the best places to start is with online auto loan companies. They usually have access to many bank car loan rates and can automatically compare these and deliver you the rock-bottom best auto loan deal. If you are a longtime member in good standing with your local financial institution, you may also visit them to see what kind of interest rate and maximum amount you are qualified to borrow.

Financing outside of the dealership will not only land you a better deal in the long run, but it also will help you to determine whether you can afford the monthly payments in your budget before you even step foot on a car lot.

Auto loans weaken in US secondary market amid tariff threats

NEW YORK, July 19 (LPC) - Secondary loan prices for US automotive manufacturers and components makers are falling as investors view proposed US tariffs of up to 25% on imported automobiles and parts a...

Published:  Thu, 19 Jul 2018 15:46:00 GMT



Car Title Loans Trap Low-Income Illinois Families In Debt

In December, 2014, Paul Gillespie's wife died of a heart attack. He buried her on a Tuesday. On Saturday came more hard news: His landlord called and said she was selling the building, and he and his ...

Published:  Fri, 20 Jul 2018 11:56:00 GMT



Trump's Auto Tariffs Receive Little Support In First Day Of Hearings

Even without tariffs, interest rates are rising. "In the past year interest rates on new car loans have risen (0.86 percentage points) and now average 5.82%, with more increases on the horizon," said ...

Published:  Thu, 19 Jul 2018 10:11:00 GMT



Why You Might Not Want to Pay Off Your Student Loans Early

But responsible use of lower-cost debt, like student loans, a mortgage, or an auto loan, can actually help you grow your wealth over the long term since the amount you'd pay in interest is often lower ...

Published:  Fri, 20 Jul 2018 02:46:00 GMT



What's future of auto innovation Raleigh conference to explore opportunities

The goal of the AIS program, according to Cherokee President Bill Zadeits, is to examine the questions surrounding the future of the automotive, auto finance and auto fintech industries. "We believe t...

Published:  Fri, 20 Jul 2018 12:28:00 GMT



Colleges ask for a share of future salary in lieu of loans

Americans Owe $1.5 Trillion in Student Loans, Report Says Federal Reserve Data reported the number for the first-quarter of 2018, which exceeds auto loan debt and credit card debt. The College Board s...

Published:  Fri, 20 Jul 2018 06:54:00 GMT



USAA Auto Owner Trust 2017-1 -- Moody's upgrades USAA US prime auto loan ABS issued in 2016 and 2017

READ NOW: These four charts show how Facebook's business is changing thanks to Instagram (FB) »

Published:  Fri, 20 Jul 2018 15:47:00 GMT



Tariffs on car imports could raise prices by nearly $7,000

Potentially go up. But to put some fear in the market. And fear is not a good thing." The proposed 25 percent tariff on imported cars and auto parts from Europe and elsewhere could give buyers sticker ...

Published:  Fri, 20 Jul 2018 05:00:00 GMT



Is Your Region Ready for a Next Generation Hyperloop Arrivo Announces US $1 Billion of Project Financing.

"The Genertec Group has become a global leader in developing, financing, and constructing innovative transportation ... Copyright 1996- The Auto Channel. Contact Information, Credits, and Terms of Use ...

Published:  Thu, 19 Jul 2018 09:50:00 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