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We all wish we had enough cash to never need a loan. After all, cash is king for a reason. Buying in cash gives us more negotiating power, can keep us from overspending, and frees us from years of car payments.But for most of us that is impossible, and financing is the only way to go. We must trudge out and find a lender to make our car dreams come true. So what is the smartest way to finance a car?Here are our top tips for financing a car the smart way.Understand the importance of your credit score and prepare accordingly.The car loan APR that you will be offered will be based on a few different factors. Calculating APR takes the following into account:Credit historyPrincipal amount Length of termVehicleDown paymentCurrent market ratesThe most important factor of all is your credit score. Credit scores are used by lenders to determine the likelihood of an on time repayment. A higher credit score will get you a more favorable car loan APR because they will view you as less of a risk. This means it is incredibly important to make sure your credit score is in tip top shape before you even apply for financing. Credit scores are broken down into the following brackets:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditA credit score of 750 or higher will put you in the position to get the best rates possible, so aim to get your credit score as high as possible. Having a lower score doesn’t mean it’s impossible to get a good deal, but you will need to shop around and compare a lot more. Preparing ahead of time to get your credit score in good shape is critical when looking for financing. There are a few steps you can take to try to increase your score.Get a copy of your credit report and review it for errors and unrecognized accounts.Pay your bills in full and on time.Pay down your debt, especially on accounts where your credit utilization ratio is high (the amount you owe compared to your credit limit).Avoid closing credit lines, even if you don’t use them.Request higher credit limits on your accounts.Avoid opening new accounts and try to avoid any hard inquiries on your credit.These steps can help you to get the best car loan APR possible. Good credit scores can help us in many other aspects of our lives too. A good score can get you better rates on car insurance, get you approved for a mortgage or lease, and get utility services set up easier. Life is just easier when you have a higher credit score.Know what fits into your budget before you go shopping.You should have a very clear idea of just how much you can afford on car payments before you even step foot into a dealership. The general rule is to pay about 10-15% of your monthly income on car payments, and 20% or less on all transportation costs combined. This would include gas, insurance, and routine maintenance. While this is a great guideline, make sure that this actually fits into your budget. Determine all of your monthly income and all of your monthly expenses to see how much you can actually set aside for payments. This will also help you determine how much you should put as a down payment.Get pre-approved beforehand.Getting pre-approved ahead of time gives you a lot more negotiating power when you enter the dealership. If you can get approved for a relatively low car low APR before you go shopping, the dealer has a mark that they will try to beat. Try to get a few different pre approvals so that you can compare all terms and get the best loan possible. In addition to the car loan APR you want to compare customer satisfaction ratings. If customers seem unhappy with the lender, it’s probably a sign to look elsewhere for financing. Pre approval also gives you a little more peace of mind when looking at cars because you will already have an idea of the interest rate and will have an idea as to what your payments will look like.Make a 20% down payment.Down payments are important for two main reasons: they will significantly reduce your monthly payments and they will help prevent your loan from becoming underwater.A down payment of at least 20% is recommended by most experts. This is money that you will completely avoid paying interest on, so the more you can put down the better off you will be in the long run. And since most depreciation happens in the first year of the car’s life, it will help to curb that amount. Cars typically lose about 20% of their value in the first year.Being underwater in a car loan means that you owe more on the loan than the car is worth. Let’s say a car costs $25,000 and you put no money down as a down payment. At the end of one year, you most likely have only paid off $3500 or $4000, but your car has already depreciated to $20,000. You already owe more on the car than you would be able to get if you sold it. Being underwater in your loan will make it very difficult for you to ever refinance your loan as well. So it’s best to make a significant down payment and avoid being underwater.Choose a short loan term.Short term loans mean that you will pay less interest over the life of the loan. Your monthly payments will be higher as your repayment will not be spread out as much, but you will save a significant amount of money by not paying as much interest. Dealerships like to use “lower car payments” as a selling point when negotiating. They do this for a few reasons:It makes it seem like you are saving money, when in reality you are paying them more money over the life of the loanIt makes you feel more comfortable to select a more expensive carIt gives them room to try to sell you more add-ons and upgradesDealerships may try to convince you that spreading out your payments over a longer period of time is a good idea, when in reality it just gives them more ways to get more money out of you. A term of three years or less is best when looking into financing unless you need extra room in your monthly budget.Use cash for the taxes and fees.When you are shopping for a car, it’s easy to only look at the sticker price and try to work the numbers using only the MSRP. But in reality, cars cost much more than just the list price. Sales tax can easily run you a few thousand dollars. Add on the various fees such as the origination fee, dealership fee, and advertising fee and you are talking several thousands of dollars in addition to the cost of the car. But if you use cash for these fees it can help ensure that your financing amount is still reasonable. Refinance your loan if the terms aren’t ideal.It’s not hard to get into a bad situation with a car loan. Maybe the salesman was smooth talking and convinced you that you were getting a good deal, or maybe you were not a particularly desirable candidate for financing when you initially applied. But there’s good news: car refinancing can get you out of a bad car loan.When you refinance, you want to follow the same smart steps you would take to finance your original loan. Making sure your credit score is in good shape is at the top of the list. You also want to shop around and compare rates and terms. Using a company that specializes in car loan refinance can help you compare and get the best rates possible.Those are our top tips for financing your car the smart way.A little preparation can go a long way when looking to get a loan. Making sure your credit score is in order, getting pre-approved for financing, and comparing offers are all great ways to ensure you are getting the best deal possible. Make sure you consider traditional banks, credit unions, and online lenders when researching your options.If you already made a deal that you are looking to get out of, consider refinancing your car loan with Auto Approve. We have relationships with lenders across the country so you can be sure you will get the most competitive car loan APRs out there. And with a 96% would-recommend rating on LendingTree, you know you are in good hands.Don’t wait to start saving, get your free quote today!GET A QUOTE IN 60 SECONDS

When you buy a product, you want some degree of confidence that you're buying a quality product. That’s where warranties come in. Most products these days come with warranties, from your television to your hairdryer to your phone to your laptop case. But all of these, while they can be major purchases, pale in comparison to the cost of a new car.So when you have something as expensive as a new car, you may want a little extra assurance that if something goes wrong, you're covered. But the problem with warranties is that they come with an expiration date. While you may be covered for a few years, you may feel kicked to the curb when the warranty expires—or you may lose coverage when you refinance and need a new protection plan.Vehicle protection plans were created to take over when standard warranties end, and maybe even supplement your manufacturer’s warranty. But how do you decide if a vehicle protection plan is worth it?Let’s talk about what vehicle protection plans are and how you can decide if getting one is right for you.What is a vehicle protection plan and what do they cover?A vehicle protection plan offers additional coverage on your car for maintenance and repairs. Vehicle protection plans can be used in conjunction with your manufacturer’s limited warranty or can be used when the limited warranty expires.First off, let’s talk about what warranties are. A warranty is a company’s guarantee of their product. They are typically offered by manufacturers to give customers some peace of mind that they are buying a quality product. Most new cars these days come with a limited warranty, either a limited bumper-to-bumper warranty, a limited powertrain warranty, or both. Limited bumper-to-bumper warranties cover most things that can go wrong on your car, generally only excluding things like wear and tear and theft. Limited powertrain warranties cover the parts of your car that make the car actually drive, like the drivetrain or the transmission. It is common for dealers to offer a three year limited bumper-to-bumper warranty and a five year limited powertrain warranty. This gives owners an additional two years of coverage for the main components of the car.When these warranties expire, customers may feel a little unease. Or maybe their dealer is only offering powertrain warranty, and the buyer wants to add on more protection. That’s when a vehicle protection plan takes over. Vehicle protection plans vary a lot in what they cover from plan to plan. But in general, a protection plan will cover repairs on:EngineTransmissionDrive AxleElectrical ComponentsBrakesSuspensionAnd moreSpecific coverages will vary from policy to policy, but these repair costs can really add up. A new transmission can cost anywhere from $2000 to $3500, while an engine rebuild can cost between $2500 and $4000. Think of it this way. You have a four year loan on your new car that comes with a three year bumper-to-bumper warranty. Just as your warranty ends, your transmission goes and it will cost you $3,000 to fix on a car that isn’t even fully yours yet. That can really set you back. But if you had a vehicle protection plan, you would not be responsible for that cost.Is it worth it to get a vehicle protection plan?Vehicle protection plans are a great option for a lot of people. But for others, they might seem expensive and unnecessary. Getting a vehicle protection plan might not be worth it if any of the following apply to you:You prefer to work on your car yourself and avoid taking it to a mechanic at all costsIt’s your secondary car that you do not rely on–a rental car or a few weeks in the shop won’t be an inconvenience for youYou are thinking about getting rid of your car in the very near futureBut for many, vehicle protection plans can be well worth it. Especially if you are able to add it on easily to your car payments, like you can when you refinance with Auto Approve. By rolling your vehicle protection payments into your car payments, you can bundle everything and save a lot of money. Vehicle protection plans can give you peace of mind.If you don’t have an emergency fund saved up, a vehicle protection plan can give you some much needed peace of mind. For many of us an unexpected breakdown can throw our lives into disarray. Our finances take a hit AND we need to worry about towing and rentals. You may suddenly be on the hook for a $2000 repair, a $150 towing bill, and $300 for a few days with a rental car. Not only is this a lot to wrap your mind around, but it’s a lot of money that you suddenly need to scrounge together. But if you have a vehicle protection plan you do not need to worry as much and can save yourself one big headache.There are often extra perks.Depending on your vehicle protection plan, there may be other perks that come along with it. Let’s look at the kind of vehicle protection plan you can get when you refinance your car with Auto Approve. In addition to covering a host of mechanical and electrical issues that may arise with your car, a vehicle protection plan offers:24/7 roadside assistanceUp to $50 per day rental reimbursementCourtesy towingYour choice of certified-ASE mechanicAll of these perks can really add up, especially when you think about paying for the repairs on top of the towing, roadside assistance, and rental car. And since you are covered by a certified-ASE mechanic, you know that you can get your repairs done quickly and correctly.It can help you budget for emergencies.When you have a vehicle protection plan, you won’t get hit all at once with a large repair bill. A large repair bill is something that many Americans can’t easily handle. After all, only 42% of Americans report having an emergency fund. This number has dropped from 54% in the past two years as our economy has been on a rollercoaster. But if you have a vehicle protection plan you don't need to worry as much about having an emergency fund set aside. Instead you can pay a little bit every month for the protection, which will help you budget for the unexpected. What should you consider when choosing a vehicle protection plan?If getting a vehicle protection plan sounds like a good move for you, there are many plans out there from which to choose. Cost, coverage, and customer satisfaction are among the chief concerns you probably have when choosing a plan. Be sure to ask the following questions as you start researching plans:How much does it cost? Will the cost more than likely outweigh your savings? Is there an initial upfront payment or just monthly payments? If you are able to bundle the cost it can be much more budget friendly.What specific parts and repairs are covered? Get a detailed list so that you know exactly what is–and isn't–covered. You know your driving habits and your car better than anyone so you can decide what level of coverage you will need.Is it transferable? If you are considering selling your car and getting a new one, you might be able to transfer your policy to your new car.Do you already have coverage? Some insurance plans or other services like AAA may already cover some of the benefits of a vehicle protection plan. What mechanics can you use? If the list of mechanics is super restrictive, it may not make sense to get the plan. After all, what good is the plan if it will only pay for repairs somewhere that is too far away? Make sure the plan will cover a certified mechanic so you can ensure the repairs are done correctly. Is the provider trustworthy? You want to make sure that the company arranging and providing the warranty has a good customer service rating. Bad customer service is the last thing you want when dealing with an emergency repair. How long of a commitment is the plan? Can you stop coverage at any time or do you need to commit?Asking all of these questions can help you narrow down the list of possible providers and help you select the best plan possible. That’s everything you need to know about vehicle protection plans.Vehicle protection plans can be a great option for car owners who’d like a little more extra comfort. And while some plans can be expensive while not providing a whole lot, there are some that offer a great bang for your buck.If you refinance your car with Auto Approve, you can easily add on a vehicle protection plan that is unmatched in its coverage and perks. So don’t wait, get started with a free quote and start saving today!GET A QUOTE IN 60 SECONDS

Monthly expenses never seem to stop. Between our rents and mortgages, insurance, utilities, and living expenses, the bills sometimes just keep rolling in. And buying a car just keeps those numbers ticking upwards. Car payments, gas, insurance, repairs–all of these can add stress on our monthly budget. But how do you know when too much is too much? How can you decide when a car is officially out of your budget?Here’s how you can decide how much car payment is too much.What car payment can you afford?When shopping for a car, it’s important to know exactly how much money you can afford to spend every month on car payments. The general rule is to spend less than 10-15% of your monthly income on your car payments. When including gas and insurance, this number shouldn’t be more than 20% of your monthly income.If your take home monthly income is $5,000, 10% of your monthly income is $500. This gives you an additional $650 for gas and insurance. But instead of merely following some financial rule, you will want to ensure that this number actually fits into your budget and actually makes sense for your lifestyle.In order to determine if this number works you will need to consider your budget as a whole. You can calculate your budget using the following steps:Determine your income. This number should be your take home pay–your pay minus any taxes and contributions. Be sure to include any additional sources of income outside of your salary as well.Determine your expenses. Include your invariable expenses (numbers that do not change every month like your rent and insurance premiums) as well as variable expenses (numbers that do change every month like your grocery bills and electricity).Make a plan. Decide what your priorities are. Are you looking to save money for the long term? Looking to get out of debt? There are a lot of different budgeting models to choose from that can help you structure your budget. A 50/30/20 model is a common approach, where 50% of your income goes to needs, 30% goes to wants, and 20% goes towards savings.See how your expenses and your income fit into your budget model. Go through each item and see how they fit into your budgeting goals. This will also allow you to see how much money you can afford to pay for your new car.Does the 10-15% rule work for you? Does it still allow you to allocate money towards savings or paying down debts? Be sure you know what payments you can afford before stepping foot into a car dealership. And remember that it’s always better to stay under budget than to go over.How can you negotiate a car payment?Once you know what monthly payments you can afford, you can start to decide what cars are available to you. You can look online to determine how expensive certain cars are, and use an online calculator to determine the monthly payments.Ultimately the monthly payments you are responsible for will depend on a few factors:The total cost of the carThe car loan APR you are offeredThe down payment you makeYou have the power to negotiate the total cost of the car. Dealers always have wiggle room in their pricing, so depending on the popularity of your car you might have luck negotiating a price that is below MSRP. You can also try to negotiate out of any associated fees, which would be added onto your repayment amount. Fees such as “advertising fees” and “dealership fees” can have some wiggle room to negotiate.The car loan APR you were offered will be based on your credit score, debt-to-income ratio, and overall financial health. The better shape your credit score is in before you apply for financing, the better car loan APR you will be offered.The down payment you make will also greatly affect the amount of your monthly payments. The more of a down payment you make on your car, the less of an overall principle you will owe and the less your payments will be. Experts generally recommend putting down at least 20%–this can also help ensure that you don’t end up owing more money than your car is worth.How can you reduce your car payments every month?If you have already taken out a car loan, you may be wondering how to get low monthly car payments. Your best bet to reduce your car payments is to refinance your car loan. By refinancing your loan, you can reduce your payments in a few ways.Refinancing to a lower car loan APR can save a lot of money in interest. You will have the best chance refinancing to a lower APR if:Your credit score has increasedYour debt-to-income ratio has decreasedThe prevailing market rates have decreasedAny of these can lower your car loan APR significantly which can in turn lower your monthly car payments significantly. While you don’t have control over the market rates, you do have the power to work on your credit score and pay down your debts, so be sure to focus on that before you apply for refinance.Refinancing also gives you the chance to change your car loan repayment period. When you lengthen your repayment period, you stretch out the principle you owe over a longer period of time which automatically lowers your monthly payments. It is worth noting however that you will end up paying back more in the long run as you will be paying interest over a longer period of time.That’s how you can decide if a car payment is too much and how you can lower your monthly payments.It's important to make sure you can afford your monthly car payments before you sign on the dotted line. Doing your research ahead of time can help set you up for success. But if your car payments have become a monthly burden for you, refinancing your car loan may help you out of a tight spot.Refinancing a vehicle with Auto Approve is simple and easy. After all, refinancing is our specialty so we know a thing or two about it. We have relationships with lenders across the country so you can rest assured you are getting the most competitive rates possible. All you have to do is get started with a free quote to see just how much money you could be saving. We handle the rest–even the DMV paperwork! So don’t wait any longer and don’t waste any more money, get your free quote today!GET A QUOTE IN 60 SECONDS

We typically break down car owners into two types of people: people who lease their cars and people who buy their cars. People who lease their cars love that new car smell and never want to give up the opportunity to get the latest and greatest car every few years. And people who buy their cars love the freedom that comes with having something all to yourself.But what happens when a lease person wants to switch teams? Their current car is all they’ve ever wanted and more, so the idea of giving it up is too much to bear. Enter the car lease buyout.Here are our top 6 tips for buying out your current leased car.What is a car lease buyout?Car leases are generally for a period of either 24 or 36 months. At the end of that time period, you have three options:Trade your car in for a new leaseReturn your car Buy your carBuying your car from your lease is a little different than when you go to buy a new car. First of all, there is less risk of investment because you already know that you love the car and have knowledge of any issues or problems the car may have. There are no mysterious previous owners that may have mistreated the car.The buyout loan amount will also be significantly less than when you buy a new car. Because the car has already taken its biggest hits on depreciation, the car will not be as expensive as when you buy a new car. Let’s look at what you should consider when deciding if a lease buyout is right for you.Is it a good idea to buy your leased car?There are a lot of reasons that buying a leased car is a great option. If you simply love your car and do not want to get a new car, that might be reason enough for you. But there are other great reasons to buy your leased car.You put your car through some wear and tearAll lease agreements allow for a small degree of wear and tear. A scratch or ding here and there is generally acceptable and expected to a certain degree. But if your car has a significant degree of wear the leasing company might charge an exorbitant amount in fees upon the return of your lease. Buying the car out instead will help you avoid these fees and put your money to better use.You are over or under the allotted mileageEvery lease agreement has a mileage cap on it, typically 12,000 to 15,000 miles per year. For every mile over that limit you will be charged. You could easily spend hundreds if not thousands of dollars in overage fees by the end of your lease. But if you buy your car, you can put that money to better use.If you are under your allotted mileage by a significant amount, your car may be worth more than the dealer is valuing it at. In this case, your car may be worth more than the buyout and you can sell it for a profit.6 tips for buying your leased carMake sure you consider the total buyout priceTo determine if a buyout is worth it, you will need to consider the total cost of the buyout, not just the residual value that is listed in your contracts. The total buyout price will include the following:The residual value of your car, as listed in your contractAny remaining payments (you can buy your leased car at any point in your lease)Any applicable feesSales taxThese additional costs can add significantly to the total buyout. But taxes and fees are pretty unavoidable when buying a car, so don’t let it dissuade you too much. Instead be mindful of the added costs and ensure you have enough money to afford your decision.Know if it’s worth itBefore you decide to buy your car, try to determine your car’s value. To do this, you will need to know two things: your car’s residual value and your car’s market value.The residual value is the value of your car at the end of your lease, determined by the leasing company. This number can be found in your contract and is typically non-negotiable. The market value is what your car is actually worth in the real world (what other people will pay for it). You can determine the market value by using a website such as Kelley Blue Book or Edmunds. These websites can determine how much your car is worth based on the make, model, year, and condition of your car. Comparing these numbers can help you decide if buying your lease makes sense. If the Kelley Blue Book value is much lower than the market value of your car, you may be paying more for your car than it is actually worth. Let’s say the residual value of your car is listed at $15,000 in your contract, but the market value is $12,000. If you bought your lease, you would be paying $3,000 more than your car is worth. If on the other hand the market value is listed within a few hundred dollars of the residual value, it is most likely a fair deal.Take the time to prepare your financesIf you are looking to secure financing for your loan buyout, be sure to take the time beforehand to ensure your finances are in good order. The rate you are offered for your car loan buyout will depend on your credit score, your debt to income ratio, and the prevailing market rates. While there is nothing you can do about the market rates, you can ensure that your credit score and debt to income ratio are in good standing. You can prepare your credit score by taking the following steps:Commit to making full, consistent, and on time paymentsPay down debts, especially those with a high credit utilization ratioRequest a copy of your credit report and ensure there aren’t any errorsRequest higher limits on your accounts to increase your credit utilization ratioHold off on opening any new accounts Hold off on anything that might trigger a hard inquiry on your creditThese steps can help ensure that your credit score is as high as possible which will encourage the best car loan rate offers.Call your leasing companyIt’s a good idea to get in touch with your leasing company directly to answer any and all questions you may have. They can tell you exactly how much you will need to buy the car and tell you what fees and taxes you are required to pay.Additionally they can tell you if they allow third party buyouts. If a friend or loved one is interested in buying your car a third party buyout may provide a good solution for all involved, but not all leasing companies allow them.Compare lease buyout loansUnless you have enough cash in your bank account to buy your car outright, you will need to secure financing. And in this case, you want to shop around for terms and rates. Don’t be coerced into getting a loan from the dealership as they almost never have the best terms. Look around at a range of lenders, including traditional banks, online lenders, and credit unions. You want to consider the following when looking for a car buyout loan:Car loan APRRepayment periodCustomer service ratingsAdditional feesWhen looking for a loan, using a company that specializes in car loan buyouts can handle the comparison shopping for you. Auto Approve has relationships with lenders across the country and can help you apply for different loans and select the buyout loan that is right for you.Rethink your insuranceWhen you lease a car, you are typically required to have pretty hefty insurance coverage. The dealership wants to make sure that their asset is covered even when it’s in your possession. But when you buy your car it’s a different ballgame. You are not required to carry any additional coverage (aside from your state’s minimum requirements). So while you may be taking on more debt with a car buyout loan, you may be saving money on insurance. Those are our top tips for buying your leased car.Buying your leased car can be a great option for you for a number of reasons. But it’s important to do your research and find the best car lease buyout loan possible. That’s where Auto Approve comes in.At Auto Approve, we can find you the best deal possible for your car loan buyout to ensure that you don’t overpay for your car loan. Getting started is easy–just head over to Auto Approve to chat with one of our loan specialists.Don’t wait–get your free quote today!GET A QUOTE IN 60 SECONDS

Car loan rates have been at historic lows the past few years as our economy has been navigating uncharted territories. But as we try to get out of our current inflation situation, interest rates have been increasing across the board. So what does this mean for the future of car refinance?Auto refinance rates are expected to increase over the next several months, making now the perfect time to refinance your car loan.How does the Fed affect auto loan rates?In order to understand what is happening with auto loan rates, we have to talk about what the Fed does. This is a complex question, as the Fed does a lot. The Fed has three major responsibilities:manage US monetary policymonitor issues and risks within the US financial systemsupervise and regulate banks within the US The Fed’s two major priorities are to maximize employment and stabilize prices. One of the main ways the Fed accomplishes this is by setting the benchmark rate. The benchmark rate, or federal funds rate, is the interest rate set by the Fed that affects all borrowing within the US. This rate affects certificates of deposit, savings accounts, credit card rates, mortgages, and more.If the economy is a bit slow, or predicted to be slow, the Fed will lower this rate to encourage more spending in the economy. When rates are low for savings, such as savings accounts and certificates of deposit, consumers have less of an incentive to save their money. And when borrowing rates are low, consumers are more incentivized to take out loans and make more purchases.But this sort of action can have unintended consequences, which is where we find ourselves now. When the Fed lowered the rate in reaction to the Covid shutdown, it encouraged spending but also helped contribute to inflation. Inflation has many root causes and there is no simple answer as to why inflation has skyrocketed in the past year. There are many reasons and they are all related to supply and demand. These causes include:New Technology. When a new product or new technology is introduced to the marketplace, the demand will outweigh the supply and cause inflation.Growing Economy. When the economy is growing, unemployment usually drops and people have more money in their pockets. Increased purchases cause increased demand for items and prices increase.Government Regulations. Government regulations like tax subsidies can cause demand to rise, which in turn causes inflation. Regulations like tariffs can cause production costs to increase, which is passed onto consumers and also causes inflation.Expanded Money Supply. If the Fed prints money at a rate that outpaces the economy’s growth, there will be too much money in circulation for the amount of goods and services, and inflation will occur. Supply chain issues. When there is a shortage of materials, the cost of these materials will increase because of supply and demand (This is one of the main contributors of our current inflation)Rising wages. An increase in wages, either from government regulations or from an industry’s competition for workers will cause a higher cost of production. But this is a highly debated area in economics, as many argue that higher wages also cause an increase in demand that offsets inflation. Change in exchange rate. If the U.S. dollar loses value in relation to foreign currency, imported goods become more expensive, which also drives inflation. Inflation is a very complicated issue, but the reaction to inflation is usually to increase interest rates, which is what the Fed has been doing steadily throughout 2022.What are 2022 auto loan rates?Auto rates in 2022 are reacting to the increased Fed rates, but not as much as other industry interest rates. This is because the auto industry is in general a little less sensitive to the Fed rate as other industries, such as the housing market. But 2022 auto loan rates are increasing. It’s hard to say how much they will rise by the end of the year, but they are expected to continue rising until inflation slows significantly. It is an expensive time to buy a new car. The global chip shortage caused a major slow down in the production of new cars, and this has led to a reduced supply. Inflation for both new and used cars is thus at an all-time high. Combine that with an increasing Fed rate and you are left with an expensive and inflated car market.But auto loan rates are not solely dependent on the market rates. They still heavily depend on your personal finance history including your credit score and your income. So while it is an expensive time to buy a car, that doesn’t mean that it is necessarily a bad time for you.Is now a good time to refinance a car?Since everything in the US market is inflated, it’s never been more important to save money where you can. And a great way to do that is by refinancing your car loan. There is still a good chance that you can qualify for a lower car loan APR. It is a good time to refinance a car loan if any of the following apply to you.Your Credit Score Has IncreasedYour credit score is one of the major factors in the car loan APR you will be offered. Your credit score may have increased for any of the following reasons. You have been making full, on-time, and consistent payments to your accountsYou have paid down your debt and improved your credit utilization ratioYou don’t have any  new accounts or hard inquiries on your creditYou have had your credit limits increasedYou have had a negative event expire, such as a bankruptcyIt is a good idea to check your credit report and ensure that everything is accurate and correct. You can check your report one time per year at each of the three credit reporting agencies, and you should be sure to take advantage of this. Check that all of your payments are properly recorded, your debts are accurate, and your personal information is correct. Inaccuracies in these areas may cause you to have a worse credit score than you actually have.If your credit score has not increased since your initial financing, it’s a good idea to take some time to work on building your credit score before applying for a car loan refinance. You will secure a much better car loan APR if this score is high.You Have At Least Two Years Left In Your LoanCar loan refinancing is more beneficial the earlier you pursue it. When you refinance a car loan, the intention is to reduce the interest you will pay. Car loans are structured so that the interest is paid mostly towards the beginning of the loan. This means that the longer you wait to refinance, the less money you will save in interest. Experts recommend having two years or more left in your current loan to maximize the benefits of refinance.You Don’t Have a High Prepayment PenaltySome car loans have prepayment penalties built into their contracts. This is to dissuade someone from paying off their loan early–after all, if you pay off your loan you will spend less on interest. Prepayment penalties vary greatly from lender to lender, so be sure to check the terms of your loan.If you do have a prepayment penalty, sit down and do the math to determine whether or not it is worth it to refinance. If the savings of refinance do not outweigh the penalties, then refinancing is not a good idea for you.You Could Really Use a Break In Monthly PaymentsRefinancing can help reduce your monthly payments by reducing your car loan APR. But it can also help reduce your payments if you stretch out your repayment period over a longer timeframe. Let’s say you initially financed your car for 36 months and you are struggling to make the payments every month. If you were to refinance that loan over 48 months, you would have 12 extra months to make payments on the same principal. While you will end up paying more money in the long run (you will be paying interest for an additional 12 months) this can greatly reduce your monthly payments and give you the breathing room you need in your monthly budget.That’s why auto refinance rates are going up–and why you should refinance your car loan now. Refinancing is all about timing–and right now, the time is right. If you have been thinking about refinancing your car loan for some time, there isn’t much time left to wait. Auto loan rates will continue to increase throughout the year and possibly into next year. Refinancing now can ensure that you will get the best rates possible.At Auto Approve, we specialize in car loan refinancing. That means we know how to get you the best car loan refinance possible. So don’t wait any longer–get in touch today for a free quote and start saving!GET A QUOTE IN 60 SECONDS

With the last few days of summer looming on the horizon, everyone is itching to make the most of it. And for a lot of people, that means getting in as many motorcycle rides as they can. It also means that it’s a great time to buy a motorcycle if you have been thinking about it. Many people sell their bikes as the summer winds down, so you might be able to get a great deal on your new wheels. But how do you know if it’s a motorcycle you can afford?Here’s everything you need to know about the cost of buying a motorcycle and how you can decide if a motorcycle is outside of your budget.How much does a motorcycle cost?In general, buying a motorcycle is cheaper than buying a car. There is a pretty wide range of costs, depending on what type of bike you want. But there are additional costs that come with a motorcycle that you will also need to think about.The motorcycleA new motorcycle can cost anywhere from $10,000 to $35,000. This is a pretty wide range, so it is important to do your research and determine what you are looking for in a motorcycle. Will this be a bike for commuting? Or is it for leisurely weekend drives? This can affect what type of bike you should select. There are lots of different types of bikes, such as cruisers, touring bikes, and standard motorcycles, which all vary in size and functionality. You should also decide which is better for you, a new bike or a used bike. Used bikes are significantly cheaper–you can usually find a decent one for less than $5,000–but they tend to need more maintenance and repairs.Additional things to consider include:Does it fit your height and weight?Is it an appropriate engine size for your experience level?Does it have the technology that you want?Once you select the bike that you want, do research online to find the best prices. If you are a novice rider, you should consider going to a reputable dealer. They will help you determine which bike is the best choice for you as well find you the best deals around.The repairs and maintenanceMotorcycles pose a much greater risk of injury to the driver than a regular car does. This means that keeping your motorcycle in top shape is extra important. Routine maintenance such as regular oil changes and tire replacement will keep you safer on the road. You should expect to pay about $1,000 per year on maintenance, with additional repair charges as needed.The safety gearWhile cars are outfitted with the latest and greatest safety mechanisms, motorcycles are not. Motorcycle safety requirements vary from state to state, but there is a general consensus that every rider should have a well fitting and protective helmet, a jacket, boots and protective pants. You can expect to pay up to $1300 on these safety items, but it’s well worth it (after all, it’s cheaper than a stay at the hospital).The additional costsIn addition to the motorcycle, repairs, maintenance, and protective gear, there are other costs associated with buying a motorcycle.Motorcycle License. In addition to your regular license, you will need a specific motorcycle license. These typically run about $30.Motorcycle Insurance. Most states in the US require motorcycle insurance. The average price for annual insurance is about $700.Riding Courses. Some states require you to take a riding course and skills test before issuing a motorcycle license. A typical riding course is about $100. These courses may make you eligible for insurance discounts, so they could pay for themselves over time.All in all, a new $5000 motorcycle will cost you an additional $3000 in the first year, and another $1500 to $2000 per year after that (not including gas).Can I finance a motorcycle?Buying a motorcycle is similar to buying a car. You can finance it as you would any other vehicle, but you should consider the benefits and drawbacks of financing before you commit to any payment plan. The motorcycle payments you will have to make will depend on:The price of the motorcycle. This will depend on if it’s new or used as well as the make, model, and year.Any additional taxes and fees. You will have to pay sales tax as well as any administrative fees.The interest rate you are offered. This will depend on your credit score, your income, and the market rates.The down payment you make. It’s a good rule of thumb to put 10-20% down on your motorcycle. This will help stave off depreciation.The repayment period you want. The shorter your repayment period is, the higher your payments will be as you have less time to pay the principal off. Keeping a shorter repayment period will also lessen the amount of interest you will have to pay over the life of the loan.How do I know if a motorcycle is outside my budget?Your motorcycle payments will depend on a lot of factors. It’s a good idea to sit down and come up with a budget to determine what you can afford. If you are planning to use your motorcycle to commute, you may find that its gas efficiency saves you some money on transportation costs. When you look at your budget, be sure to consider:Your motorcycle paymentYour insurance paymentSafety gearMaintenance and repairsAdditional feesLets say your motorcycle payment is $350 per month and insurance is $50 a month. You know that on average it is $1000 per year for maintenance. We can round that up to $100 per month. That means you need $500 every month to pay for your motorcycle. On top of that, be sure you are adding to your emergency fund in case an expensive repair pops up.The only way to know if a motorcycle is outside of your budget is to sit down with your finances and do the math. That’s what you need to know about buying a motorcycle and how to decide if it’s outside of your budget.Buying a motorcycle can be expensive. But with some planning and research you can be sure that is within your budget.If you already own a motorcycle and think you might be overpaying on your monthly payments, consider refinancing your motorcycle loan with Auto Approve. We’ve helped thousands of bikers save money on their monthly payments. What are you waiting for? Head over to Auto Approve today to get your free quote!GET A QUOTE IN 60 SECONDS

We could all use a break now and then, especially when it comes to our bills. So it may come as a relief to hear that there is a way you can skip 90 days of car payments. That’s three whole months without a car payment looming over your shoulder. And the best news is it's simple. All you have to do is refinance your car with a lender that offers 90 days without payments.Refinancing your car loan can get you 90 days with no car payments.What is car loan refinancing?  Car loan refinancing is when you pay off an existing loan with a new loan. By securing a new loan that has a better car loan APR and better terms, you can save a lot of money.There are a lot of lenders that will refinance your car loan, from credit unions to traditional banks to online lenders. With so many options, it’s usually a good idea to use a company that specializes in car loan refinance. This will help you to weed through all of the competition and find the best rates available.There are a number of lenders that will offer no payments for 90 days as a perk. This can be helpful if you could use some time to get your finances in order, or just give you a break with monthly payments.When is a good time to refinance my car?When Your Credit Score Has IncreasedYour credit score is the main consideration that lenders look at when determining what car loan APR they will assign to you. If your credit score has increased, you will most likely qualify for a lower car loan APR. Your credit score is determined by a number of financial factors. The following information is used to calculate your credit score:Payment History (35% of your credit score) This shows lenders if you pay your bills on time and in full. This will also show missed payments and any bankruptcy details.Accounts Owed (30% of your credit score) This category looks at how much money you owe compared to how much credit you have available to you (your credit utilization ratio). The lower your debt to credit ratio is, the higher your score will be. You should aim for this number to be below 30%.Length of Credit History (15% of your credit score) This looks at the age of your accounts. The longer you have had credit, the higher your score will be.Credit Mix (10% of your credit score) This looks at the types of accounts you have. Do you have a healthy mix of credit cards, loans, mortgages, etc? Having a balanced mix of credit accounts will show lenders that you can handle your finances over multiple accounts.New Credit (10% of your credit score) New credit will lower your score a bit. This is because your history with this new credit isn’t reflected in your score yet, so it’s essentially an unknown account.The two most important and impactful categories are your payment history and your accounts owed. This means that any changes to those areas can cause a significant swing to your credit score. There are a few reasons your credit score may have increased since your initial financing. You paid down some of your debtYour credit limits have increasedYou have been making consistent, on time, full paymentsA negative event, like bankruptcy or eviction, has expiredA hard inquiry has expiredIf your score has increased since your initial financing, you may be eligible for a much lower car loan APR. And that can add up to hundreds (if not thousands) of dollars in savings.Note: It is a good idea to get a copy of your credit report. You can do this once per year for free from each of the three credit reporting agencies: Experian, Transunion, and Equifax. Check your report for any errors and inconsistencies and contact the agency if you find anything that is inaccurate. This can ensure your credit score is as accurate–and as high–as possible.When the Market Rates Have DecreasedThe car loan APR you are offered will be determined in part by the market rates. If the economy is not performing well, or is not expected to perform well, the market rate will lower to encourage spending. That is when you will find the lowest car loan APRs. If the rates are lower now than they were when you first financed your car, you may be eligible for a lower car loan APR.When You Need Some Breathing RoomThere are a lot of reasons to refinance your car loan, but one of the most common reasons is to lower your monthly car payments. If you are in a tight spot every month when it comes to paying your bills–maybe your hours got cut, or your other bills have increased unexpectedly–refinancing can help you reduce your monthly car payments.Car loan refinance can lower your monthly payments in a few ways. First off, if you qualify for a lower car loan APR your monthly payments will automatically be lower. But even if you do not find a drastically lower APR, refinancing will allow you to change your repayment period. By stretching out your car loan repayments over a longer time, you will reduce your monthly payments drastically. You will end up paying back more money over time as you will be paying more interest back overall, but this decrease in monthly payments can help you if you are in a tight spot with your monthly payments.And finding a loan with 90 days without payments can give you a break to get your finances back on track.When You Have More Than Two Years Left On Your Original LoanCar loans are front loaded amortized loans, which means in the beginning of the loan your payments go more towards the interest, and towards the end of the loan your payments go more towards the principal. Car loan refinancing helps you to save money on interest. As your loan is nearing the end of your term, you are paying primarily towards the principal, so it is less beneficial to refinance. By making sure that you have more than two years left on your loan you will benefit much more from car loan refinance.How do I refinance my car?Car loan refinance is super easy, especially when you use a company that specializes in car loan refinance. Just follow these three easy steps below and start saving money.Do Your Research and PrepareThere are a few steps you should take to ensure that you will get the best refinance possible. It’s good to research different lenders to see what types of loans are out there. While you won’t have any specifics until you apply, you can get a rough idea of what different lenders are offering. Talk to family and friends to get recommendations for reputable lenders and try to pick three to five lenders that you would like to pursue.Check to see which lenders offer 90 days without payments. There are quite a few of them out there (or you can use Auto Approve and they can do the research for you and save you the hassle!)You will also want to prepare your finances. Check your credit report and credit score to make sure there are no inaccuracies. Collect all of the documents you will need for applications as well. You will most likely need the following:A Photo IDYour vehicle’s information, including the bill of sale, VIN number, make, model, and year of your carProof of insuranceProof of income and financial history, this will vary from lender to lender but may include pay stubs, banking information, and your credit reportProof of residence, such as a mortgage statement, lease agreement, or utility bill (this cannot be a PO box)Apply and CompareOnce you have done your research and gathered your documents, you can begin applying. Be sure to apply all at once–all inquiries in a fourteen day period will count as one hard inquiry on your credit report. When the offers come in, be sure to compare the following:The car loan APRThe repayment period optionsThe prepayment penaltiesOther feesAlso take into consideration whether or not the lender offers a 90 day no payment option. If you use a loan refinance company like Auto Approve they can handle the application process for you. They have relationships with lenders across the country, so you can be sure you are getting the best rates and offers possible.Sign and SaveWhen you decide which loan is right for you, just simply sign on the dotted line and start saving! It’s just that easy! And if you use Auto Approve, they even handle the DMV paperwork so you don’t have to deal with it. If your loan doesn’t require payments for 90 days you can immediately enjoy the breathing room.And that’s how car loan refinancing can get you up to 90 days with no car payments.If you could use some more breathing room in your monthly budget, car loan refinancing is a great way to do so. And with Auto Approve, it couldn’t be easier.So don’t wait, get your free quote today!GET A QUOTE IN 60 SECONDS

The automotive industry is ever-changing and is constantly evolving to keep up with the world around us. Advancements in connectivity, autonomous driving, and fuel storage all are shaping the way we think about transportation. So what exactly are the top automotive trends?Let’s take a look at the latest trends in the automotive industry.Advanced Driver Assistance SystemsAs technology becomes more and more advanced, it can be used to help keep drivers safe on the road. Advanced Driver Assistance Systems (ADAS) are systems that can help drivers detect accidents and assist in driving and parking functions. There are a lot of different ADAS systems, including:Lane keep assistAutomatic lightingBlind spot detectionAdaptive cruise controlLane departure warningsReverse brake assistForward collision avoidanceCross traffic alertsThese systems rely on innovative technology including the use of software, ultrasound sensors, lidar, and radar. As these systems become more and more advanced, they will be used in autonomous, self driving vehicles. But for now they are being used in many new car models and are becoming increasingly standard in base models. About one third of the cars sold in the US, China, Japan, and Europe have ADAS features.Self Driving CarsClosely connected to the concept of ADAS features is the increased push for self driving cars. ADAS features are divided into six categories to describe the level of autonomy of the car. The categories are as follows:Level 0, No Driving Automation. The car can provide information to the driver but cannot control the car. This may include features like parking assist, lane departure warnings, and rear-cross traffic alerts.Level 1, Driving Assistance. The car can take control over one functionality. This may include adaptive cruise control or emergency brake assist.Level 2, Partial Driving Automation. The car can take over multiple functionalities. This may include highway assist and autonomous parking.Level 3, Conditional Driving Automation. The car can make informed decisions but the driver is still required to be alert and present to manually take over.Level 4, High Driving Automation. The car can make informed decisions and intervene should something go wrong. A driver can choose to manually override. Level 5, Full Driving Automation. The car will fully drive itself without the need of a driver. These cars will not have steering wheels or gas pedals, they will chauffeur people around independently.Level 5 automation is the goal of many car makers, but most cars are still around level 2 or 3. Certain car manufacturers including Volvo are working on level 4 automation, although local legislation will dictate how these cars can operate in their jurisdictions.The future of cars is self driving and autonomous, and these advances are being made today.Improved ConnectivityAs our wireless infrastructure improves there is a push in the automotive community to have more connected cars. There are seemingly endless possibilities to what improved connectivity means for the future of cars. Not only are cars being connected to other devices within the car, such as the driver’s phone and smartwatch, but they are connected to the internet at large. Currently, improved connectivity is being used in the following ways:Send vehicle health reportsGet real time directionsWarn of issues with the carIntervene to prevent a breakdownThis type of technology is quickly developing and improvements in connectivity are a major trend in 2022 automotive technology.Human Machine InterfaceHuman Machine Interfaces, or HMIs, provide an interactive experience for drivers and passengers. While we use HMIs everyday (your touchscreen and keyboard are just two examples), HMIs are constantly evolving in the automotive world. From dashboard touchscreen displays to voice recognition to augmented reality, carmakers are pushing boundaries on what HMIs can be used for and how they can make the driving experience better.Increased Usage of Electric Fuel CellsFuel cell electric vehicles (FCEVs) are quickly becoming the most popular trend for electric vehicles. Fuel cells generate energy through electrochemical combustion as opposed to combustion. Hydrogen and oxygen are combined to generate electricity. Fuel cells have been proven to be more efficient than internal combustion engines and produce only water as a byproduct. This makes them more environmentally friendly and less prone to breaking down. Additionally, they have more instantaneous torque and provide smoother, more consistent power.Many countries are pushing this new wave of electric vehicles, including the United States, Japan, China, Germany, and South Korea. This is because electric vehicles release 54% fewer CO2 emissions than traditional gas cars (even the newest vehicles). In the United States today there are over 1.2 million electric vehicles, and this number is expected to grow to nearly 20 million by the year 2030.Car Subscription ServicesThere are currently five automakers that are rolling out subscription features for their cars– Audi, BMW, Cadillac, Porsche, and Tesla. These subscription services require owners to pay to use or unlock certain features of the car. Owners will have a monthly or yearly fee to use features such as voice recognition and driving assistance.While subscription models are nothing new–after all, don’t we all have Netflix?–subscription models for cars open a whole can of questions and concerns.Automakers want you to be paying customers for life. By switching to a subscription model, they will ensure that you will be a paying customer even after your car is paid off. On the plus side, this model can incentivize automakers to stay up to date on software updates and help owners keep their current cars for longer.But this also raises concerns over safety and fair treatment of consumers. Consumer advocates worry that a charge for safety features will price owners out of safety features, making the cars less safe overall. Because of this, there is a push to ensure that all subscription features are convenience features, and that certain features become base level across the board. These base level features would ideally include automatic emergency braking, forward collision warning, and blind spot warning.But until legislature is put in place to restrict or standardize the subscription model, we can expect subscription models to become more and more commonplace.Those are the latest trends in the automotive industry.The automotive industry is quickly changing and evolving to keep up with technology. And while it’s amazing to see how much is changing, one thing is constant: people will always need to save money on their car loans.If you are overpaying on your monthly car payment (and you probably are) then get in touch with Auto Approve today! Refinancing your car loan with Auto Approve can save you hundreds of dollars a month–so don’t wait, get started today!GET A QUOTE IN 60 SECONDS

When deciding on the best vehicle for your family, there are a lot of things to consider. And with how many options there are to choose from, it can be downright overwhelming (there are currently over 130 different SUV options available on the market!)So today we are talking all about SUVs, from why they are so popular to how you can choose the best one for your family.Here’s what you should consider when choosing the right SUV for your family.Why is everybody buying an SUV?SUVs are more popular now than ever. In fact, SUVs and pickup trucks make up 70% of the auto market. In 2018, worldwide SUV sales hit an all time high of nearly 30 million vehicles. But why exactly are SUVs so popular?They are safer.First off, the obvious: SUVs are larger than sedans. Their size means that there is more protection if you get into an accident. SUVs are also higher off the ground, which can give you a better vantage point on the road as well as make you feel safer while you are driving. This is a huge reason why many people have made the shift to SUV from sedan.They can fit more passengers (and more stuff)Again, they are larger, so they can fit a lot more passengers and a lot more cargo. SUVs are also more comfortable for passengers because they have taller roofs. There are electric options.When SUVs first came out on the market, they were gas guzzlers. Not only did it cost more money to buy an SUV than it did to buy a sedan, but it cost more to keep it filled with gas. But times have changed since then and there are no hybrid and electric SUVs. Some of the electric SUVs on the market can even go over 300 miles on a single charge. They are better in the winter.If you live in an area where it snows a lot, you know that weather has to be a consideration when choosing your car. SUVs are a great option in the snow because they have shorter wheelbases and a more even distribution of weight than sedans.They are versatile.You can have it all with an SUV: a luxurious ride during the week and a workhorse on the weekend. SUVs often have plush interiors and all the latest tech, but also have powerful engine and towing capabilities. You essentially get two vehicles in one.How many different types of SUVs are there?While there are a lot of SUV models on the market today, they all tend to fall across eight different categories based on their size and engine capacity. There are standard SUVs and there are crossover SUVs–standard SUVs are built on truck platforms, while crossover SUVs are built on car platforms. Subcompact CrossoversThese are the smallest SUVs on the market. They tend to have good fuel economy and are great commuter SUVs with enough room for four adults. Popular examples include the Jeep Renegade and Honda HR-V.Compact CrossoversThese SUVs are slightly larger than the subcompact crossovers but still relatively small. They offer more interior space and tend to offer more features. Popular compact crossovers include the Ford Escape and Toyota Rav4.Mid Size CrossoversThe mid size crossovers are a bit larger than the compact and subcompact crossovers. These models can be equipped to handle off roading (the compact and subcompact can not) and offer significant interior space for passengers and luggage. This is one of the most popular choices for SUVs in the United States. Some of the most loved models include the Ford Edge, Honda Pilot, and Kia Telluride.Full Size CrossoverFull size crossovers are essentially wagons that offer third row seating and spacious interiors. They are great family cars and tend to have lots of safety features. Popular full size crossovers include the Nissan Armada and the Volkswagen Atlas.Compact SUVsCompact SUVs are a little more durable than the crossovers and are designed with comfort and durability in mind. Some of the most popular vehicles include the Hyundai Tucson and the Jeep Wrangler.Mid Size SUVsThese models are what many people think of when they hear the term SUV. They are spacious, can typically handle off road driving, and boast a lot of amenities. Some of the most classic SUVs including the Chevrolet Blazer and Jeep Grand Cherokee fit into this class of SUVs.Full Size SUVsThe full size SUV category is the perfect blend of luxury comfort and high performance. They tend to have the latest technology and comforts. More and more luxury full size SUVs are entering the market, but common models include the Ford Expedition, BMW X7, and the Chevrolet Suburban. Performance Crossovers and SUVsThese performance SUVs are equipped with powerful engines, making them surprisingly quick for their size. They have fast accelerations, often going 0 to 60 at a rate that matches or exceeds other sports or muscle cars. Popular models include the Porsche Cayenne Turbo S and the BMW X5.How to Choose an SUV for your FamilyThere are a lot of factors to consider when deciding which SUV is the right fit for your family. Here are the top things to think about.What size do you need?As you can see, there are a lot of different sizes of SUVs on the market. Do you have a large family that necessitates third row seating? Do you do a lot of activities that require you to lug stuff around? If so, a mid size or full size SUV might be better for you. If you have a smaller family and don’t need all the extra space, a compact SUV or crossover might be a better fit.Do you need 4 wheel drive?If you want to go off-roading or live in an area where it snows a lot, 4 wheel drive might be a necessity. 4 wheel drive offers more traction and stability on and off the road, but it will limit your options and cost you a bit more, so it might not be necessary based on your lifestyle.Do you want luxury or durability?Let’s face it: some kids make more of a mess than others. If your kids participate in a lot of activities and sports, they might give your interior more of a run for its money. But if your kids are older or don’t make as much of a mess, you might want to opt for more of a luxurious interior. Range Rovers and Escalades are good options if you want a nicer ride, but a Nissan Xterra might be a better choice for soccer pickups.How many miles will you put on it?Think about how many miles you will put on it, and how much gas you might go through. An electric SUV or hybrid option might be a good idea if you drive a lot, while a regular SUV might work just fine for you if you don’t plan to put a lot of miles on it. Think about safety.You are buying a car for your family, so you need to consider the safety features. There are a lot of safety features available on base level models, as well as additional add on safety features. Here are a few options to look for:Collision warningsAutobrakeLane-departure warningsLane-keeping assistBlind-spot detection Park-assist systemsThey vary widely by make and model, so be sure to do your research and determine which features are important to you. Below are some of IIHS’s top picks for the safest SUVs of 2022.Acura RDXAudi Q5/Q5 SportbackCadillac XT6Chevrolet TrailblazerFord BroncoGenesis GV80Hyundai PalisadeMazda CX-5Mercedes-Benz GLE-ClassNissan MuranoSubaru AscentChoose something you love.As we mentioned before, there are a ton of different SUVs on the market so you don’t need to settle. SUVs are built to last a lifetime now, so be sure that you are completely satisfied with your choice. If you are unsure about making the switch to an SUV, consider renting one for a week or two to see how it fits your lifestyle.That’s what you should consider when choosing the right SUV for your family.With so many options out there, it might feel overwhelming to decide which SUV is right for you and your family. But with a little research, thought, and test-driving, you can certainly find the SUV of your dreams.If you have already purchased your SUV and are looking to refinance, look no further! Auto Approve has helped thousands of people save money on their car payments. We have relationships with lenders across the country, so you can be sure you are getting the most competitive offers and the best rates. Getting a free quote only takes a few minutes, so don’t wait to start saving money–get started with Auto Approve today!GET A QUOTE IN 60 SECONDS

Budgets sound boring and laborious–we get it. They can feel overwhelming to create, and you are probably wondering if you will even stick to it. So what’s the point? But budgets are incredibly important. They can create financial stability by helping you stay on track with both your income and your expenses. Having a strong, accurate budget can help you with your day to day spending while also helping you create a plan for your financial future. Whether your goal is to pay down debt, buy a house, or save for retirement, budgeting will help you succeed.Today we are talking about budgets: why they are important, how to make one, and five things every good budget has.Why are Budgets Important?It can help you reduce your spending.When you create a budget, you know exactly how much money you have coming into your bank account every month. That means that you also know how much money you can afford to spend every month. Keeping that number in mind can help you to curb your spending significantly.It can help you feel in control.When the bills roll in every month, it’s easy to get overwhelmed. This is especially true with variable expenses, which we will discuss later. But if you have a budget you will know what these expenses should be (approximately) and you will be able to adjust your expenses in other areas if need be. In general, budgeting can help you feel like you have a good grasp on your finances.It can help your credit score.Your credit score is the most important consideration in your financial life. If you are applying for a mortgage, a car loan, an apartment, or even a refinance, your credit score is the first thing that will be analyzed. A budget won’t outright help your credit score, but it will help you by keeping on track with your expenses. People with good budgets are more likely to:Pay back debtsMake on time paymentsAvoid overspending and accumulating debt in the first placeAll of these factors can help increase your credit score, which will help you get approved for loans and secure lower interest rates.5 Things Every Good Budget HasAccurate Fixed ExpensesFixed expenses are the costs you have every month that do not change. A good budget will have a very inclusive and accurate tally of fixed expenses. These might include the following:MortgageRentProperty taxes Condo feeHouse insuranceRenters InsuranceUtilities with a standard rate (cell phone, internet, trash collection)Car lease or car loan paymentCar insuranceSubscription servicesYou may have some or all of these fixed expenses, and you might have other additional fixed expenses. Look through all of your bills and bank statements to make sure you have included everything. Fixed expenses are always the same month after month, so they are easy to include in a budget.Average Variable ExpensesVariable expenses are costs that you pay every month that vary in the amount. Every good budget will have a list of these expenses with their monthly averages. Common variable expenses include:GroceriesUtilities based on consumption (electricity, water)Transportation costs (gas, parking, maintenance, bus fare, etc)Clothing ChildcareEating outEntertainmentIf you have children, this list can grow quickly with sports and activities. Try to include everything. The more inclusive your variable cost list is, the more accurate your budget will be. To get a good average of these, look back at your past year of expenses. Come up with a monthly total for each category, and then average them out. Good budgets rely on accurate totals for fixed and variable expenses. If these numbers aren’t inclusive or accurate, your budget won’t be accurate–and therefore it won’t be helpful to you.An Emergency FundAll good budgets include an emergency fund. Emergencies are unpredictable, so when one strikes it can spell big trouble for our finances. Having an emergency fund can help bail you out of a tight spot. If you do not have an emergency fund set up, an unexpected medical bill or mechanic bill will really throw your finances into disarray. How much you will need in an emergency fund varies from person to person, but the general rule of thumb is to have six months worth of expenses on hand. Financial GoalsOne of the ultimate goals for budgeting is to create a plan for future financial goals. These goals will vary from person to person and can be short term or long term. Some short term goals may be:Saving for a down payment for a car or a homeSaving for a vacationPaying down credit card debtLong term goals often have a bigger price tag attached to them and can take longer to achieve. Common long term goals include:Paying off student loan debtPaying off your mortgagePaying off your car loanCreating a retirement fundWhatever your goal is, be sure to include it in your budget. Having a goal will help you to stick to your budget and motivate you to stay focused.Regular ReviewsA budget is not something that you create and then say, “I’m done!” A budget will do you no good if you do not regularly review it and adjust it to fit your life. You should review it regularly, at least once every month or two. Look at how your income is matching up with your expenses. Here are a few things to consider:Am I spending more than I am saving?Which categories have increased and which have decreased?Are there any areas where I can cut back? Am I saving enough for my financial goals?Are there any new expenses in my life I should include?By regularly reviewing your budget you will be more likely to adjust it as needed and keep it as a functional part of your life. How to Create a BudgetCreating a budget is simple, but it is important that you be very organized and thoughtful throughout the process. The more organized you are, the more accurate your budget will be. Just follow our simple steps to get started.Be prepared. There are many apps and programs designed for budgeting (Mint and Goodbudget are two of our favorites). But really all you need is a good spreadsheet. Once you have your spreadsheet set up, dig out your credit card bills and bank statements for the last year or two. Determine your income. Calculate your actual take home pay (your pay minus any taxes and deductions). Add in any other income you may have–dividends, inheritance, rental payments, side hustle money–it will all add up. Categorize your expenses. As we mentioned before, your fixed and variable expenses are incredibly important to your budget. List them all out in your spreadsheet and go through your bills and bank statements to determine a value for every category. Make a budgeting plan. There are a lot of plans you can use when it comes to budgeting. A common plan is the 50/30/20 model, where 50% of your income is allocated for needs, 30% is allocated for wants, and 20% is allocated for savings. Another model is the 70/20/10 plan, where 70% of income goes towards monthly bills and everyday spending, 20% goes towards savings, and 10% goes towards debt repayment. Determine what your ultimate goal is and decide on a plan based on that.Budget your needs. How much do you need to live on? Determine which expenses are necessary and which are not and allocate money from your budget as necessary.Budget your wants. How much wiggle room do you want in your budget for the nonessentials? Going out to dinner and buying brand name items aren’t strictly necessary, but they may be things you want to include. Determine how much you can afford to spend on nonessentials. Budget your emergency fund and your savings. This is where your long term goals set in. How much extra money can you allocate to your savings? All extra income should end up here.Review and adjust. Try out your budget and see how it goes. If you need to find some extra money to include in your budget, see where you can make adjustments. Cutting out subscription services, clipping coupons, and refinancing your car loan are all easy adjustments that can add up to a lot of savings. That’s everything you need to know about budgeting, including five things every good budget has.If you don’t have a budget yet, here is your sign to create one. It will take a few hours to put together, but it can save you a lot of money and a lot of headaches down the road. And with the cost of everything these days, who couldn’t use some extra money? We know a thing or two about saving money–after all, we save people hundreds (if not thousands) of dollars every year by refinancing their car loans. So if you want to save money on your car loans, get in touch with Auto Approve today!GET A QUOTE IN 60 SECONDS