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Electric vs. Gas Cars: Deciding Which to Buy

04/13/2022 22:00
You’re gearing up to buy your new car and suddenly you have one more thing to think about; do you want an electric car or a gas car? A decade ago the choices were very limited, but now there are more options when it comes to electric cars. So if you’re undecided about what your next ride should be, we’re here to help. Today we are talking about the pros and cons of getting an electric car.Which is better for you, an electric car or a gas car?The difference between electric cars and gas cars is fairly simple. Electric cars are powered either solely or partially by electricity. They use a battery that stores the energy, and an electric motor starts the vehicle. Gas cars solely use gasoline as fuel. They use an internal combustion engine to start the car and stored gas to power the vehicle.What types of electric cars are there?First up, let's talk about the different types of electric vehicles that are on the market. There are three main types of electric cars. All Electric (Battery-Electric, BEVs). These vehicles use stored electricity as the sole means of energy. Examples of BEVs include the Chevy Bolt, Tesla Model X, and Volkswagen e-Golf.Hybrid Electric (HEVs). The vehicles use an internal combustion engine as well as an electric motor. They do not plug in to charge, but instead are charged by a regenerative brake system. These vehicles turn your car’s kinetic energy into stored energy. Examples include the Honda Civic Hybrid, Toyota Camry Hybrid, and Toyota Prius Hybrid.Plug-in Hybrid Electric (PHEVs). Just like the HEVs, they have both an internal combustion engine and an electric motor, but they can be plugged in to charge. These vehicles will run on just the battery until the battery is almost out, then it switches to gas as a source of fuel. Examples include the Chevy Volt, the Chrysler Pacifica Hybrid, and the Hyundai Sonata PHEV.Which will save you more money: electric or gas?This question is a bit complicated, as there are a lot of components to the cost of cars. If you're looking to save money on your car payment, there's a lot to consider. Upfront, electric cars tend to be more expensive. This is, however, trending downwards as more EVs enter the market. Let’s look at gas cars first. In 2022, gas prices are expected to hit a national average of $4.00 per gallon. This means that it will cost the average person with a 14 gallon tank about $56 to fill up their tank. Cars vary greatly in their gas efficiency, but the average car gets about 25 miles to the gallon. So for an average car, we can get a little over 330 miles to the tank. This averages to about $.16 per mile for a gas car. Now let’s look at electric cars. The average cost of a kilowatt-hour is $.1042 (10.42 cents). A standard electric car takes about 7.2 kWh/hour to reach a full charge of about 50 kWh. This means it costs about $5.10 to fully charge an EV. The standard range is about 250 miles for one full charge. This averages to $.02 per mile for an electric car. So it’s pretty clear that even with our estimations, a gas car will cost you much more money in fuel in the long run. On top of that, gas cars are often more expensive to maintain than electric cars. Transmission fluid, coolant, and motor oil are all expenses that you can avoid with an electric car. Looking to save money on your monthly car payment?If you already have a car but need a better rate, consider a car loan refinance. Interest rates are still low now, so it's a great time to get a free quote and see how much you could save.What are the advantages of electric cars?It is safe to say that electric cars will save you money in the long run. But what are some other advantages to switching to electric?Less EmissionsA great benefit of having an electric car is that it produces less emissions (zero emissions if your car is all-electric). If you are concerned about the environment, this is a huge advantage. More Energy EfficientElectric cars are more energy efficient than gas cars. EV batteries convert about 77% of energy into movement, while combustion engines convert between 12% and 30%. Tax CreditsThe government offers tax credits when you switch over to an electric vehicle, which can vary between $2500 and $7500. There are a few restrictions/conditions of the tax credit:You must own the car to receive the tax credit.You cannot simply buy an electric car in order to resell it.The electric car must be mostly used within the U.S.The manufacturer must be qualified.The battery must be able to store at least 4 kWh of energy.The battery must also be able to be charged by an external energy source. Lower Maintenance CostsSince there are less parts under the hood, maintenance costs are much less for electric cars. In essence, there is much less that can go wrong. They are composed of a motor shaft and little else, while gas cars have hundreds of moving parts. Plus you can skip out on oil changes and don’t have to worry about transmission fluids. What is the downside of electric vehicles?While electric cars have a lot of benefits, there are some considerable limitations.Less InfrastructureDepending on where you live, there might not be a good infrastructure for having an electric car. In bigger cities charging areas are common and can be found with little effort. But if you live in a rural area, it may be impractical to rely on charging areas. It is much easier to find a gas station than a charging station.Short RangeCompared to gas cars, electric cars have a shorter distance they can travel without requiring a charge. This makes it hard to do longer trips or take road trips.Long Charging TimeElectric cars can take a long time to fully charge. An electric car that needs a charge to drive 200 miles would take about 20 minutes of charge time, and that's with a DC fast charger. Other chargers can charge at a rate as slow as 14 miles of range per hour. Gas cars can be filled up with the snap of a finger. Car SelectionWhile we have come a long way in the last decade, there are still only about 30 different electric cars to choose from. This can be quite limiting, especially if you have a lot of other considerations in your car-buying criteria. And that’s what you need to know when deciding between an electric car and a gas car. Buying a car is very exciting, but it can also be very overwhelming. If you aren’t in the market for a new car because you still have an existing loan, consider refinancing your car loan with Auto Approve. We can help you save a ton of money. And who doesn’t want that?GET A QUOTE IN 60 SECONDS
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How to Sell a Car Privately

04/11/2022 22:00
Buying a new car is exciting, selling your old one may not be as exciting. There are two options you have as a car owner: selling your car privately or selling your car to a dealership. And while there are perks and downfalls to both options, selling your car privately will most likely give you more bang for your buck. Selling your car privately does require a bit more work on your end, but it will pay off in the long run.Here are our top tips for selling a car privately.Explore your optionsThere are two main options to sell your car: privately or through a dealership. Selling your car privately means you can charge whatever you would like, sell it on your own timeline, and essentially deal with the process yourself. If you go through a dealership, it is much easier and they will handle all of the legwork for you. You can even use the car as a trade-in and upgrade to something else. But you do not set the price for your car – they set it. And it is usually for significantly less than what you would get in a private sale. If your main goal is save on your monthly car payments, you could also consider refinancing your vehicle instead of selling. But that's for another article.Decided to sell privately? Make sure you take these important stepsHere are our top tips for selling your car privately (and making the most money).Understand and Research Your Car’s ValueValuing a car can be difficult, especially if you have an emotional attachment to it. It’s easy to think “this is the best car I’ve ever had, it’s worth at least XYZ”. But you need to keep your emotions and your expectations in checkThe best place to start your research is online. Look at a range of websites including Kelley Blue Book and Edmunds to see exactly what the market value of your car is. The values are based largely on the condition that your car is in. Assess your car’s condition honestly. The guide below can help you determine your car’s current condition.Excellent Condition. Your car looks new and is in excellent mechanical shape. It is rust free and has never had any body work or painting. The engine is clean with no visible defects or leaks. Your car also has a clean title history, will pass all safety and emissions tests, and has complete and verifiable service records. Cars in excellent condition are rare, making up about 5% of the used car market. Good Condition. Your car is free of major defects and problems. There may be some minor blemishes to the interior or exterior, but nothing major.Your car has a clean title history and there are no major mechanical issues. Your tires should match and have a good amount of tread on them. There should be little to no rust. To be sold at retail, your car will require minor reconditioning. Most cars for sale will fall into this category. Fair Condition. Your car has some mechanical or cosmetic issues. It needs some work done and may be in need of servicing, but your car is in reasonable running condition. There may be some rust damage and the tires may need to be replaced. The title history should still be clean. Poor Condition. Your car isn’t in good shape and is running poorly. Maybe there is extensive rust damage or a damaged frame. You may need to have an independent appraiser determine what the car is worth. Chances are your car is in good or fair condition depending on how old it is and how much you drove it. Take note of how many miles the car has and if there are any recurring issues. Then use the online tools to assess a fair market value for your vehicle.Prepare Your CarYou want to put your car’s best foot forward when preparing to sell it. It’s a good idea to have your car inspected by a mechanic to make sure there aren’t any issues of which you aren’t aware. This will give you a chance to make any necessary repairs before you even list the car for sale. In addition it’s a good idea to:Gather your service records.Give your car a good cleaning – inside and out. Maybe consider giving the car a wax or polish before taking pictures.Ensure all lights are working.Check the oil and other fluids.Check the tires.Have all of these things done before you even advertise that your car is for sale. You never know how fast your car may sell and it may be the difference of several hundreds if not thousands of dollars.AdvertiseOnce your car is in tip top shape, start advertising. Tell your family and friends and look for places online where you can list it. Facebook Marketplace and Craigslist are good free places to start. If you want to pay for advertising to reach a different sector of the market, you can try Auto Trader, EBay Motors, or consider taking out an ad in the local paper. Show Your CarOnce people start contacting you about your car, they will most likely want to see the car and possibly take it out for a test drive. It is recommended that you meet in a public space and that both parties have an extra person with them for added safety. If they would like to take a test drive, ask to see a photo ID and take a picture of it with your phone, and assure them that you will delete it when you are done. Be sure to ride with them, bringing your friend or family member if it makes you more comfortable. Seal the DealIf the buyer is happy and you agree on a price, secure payment as soon as possible. Have them pay with cash or a cashier’s check, which is more secure than a personal check. Make sure you have a full payment in your hands before you hand over the keys. You will then need to finalize all of the paperwork.Get your car's paperwork in order before you sellWhen you sell your car, you must have the title of the car. All other paperwork will depend on your state and can vary. The Car’s TitleFirst and foremost you will need the title of the car, and you must make sure it’s in your name. If your car is still under financing, you will need to pay off your vehicle in full before the deal can be finalized. The title will show a lien if you do not own the car outright.If your car suffered from certain types of damage, you may need to get a title brand from the DMV. A title brand is a permanent note on the title that will alert any prospective buyers about your car’s condition. If your car was in a flood or salvaged, you may need to get this brand. Failure to do so may result in a fine or other penalties.Warranty Information (If Applicable)If your car is still under warranty, check to see if it’s a transferrable warranty. This may help you to negotiate a better price on your car. As-Is DocumentationThis is not required, but might be a good idea for you to consider. As-is documentation outlines the condition that the car is in. This paperwork will ensure that the new owner acknowledges and accepts all future responsibilities with the car. It essentially says that the previous owner has disclosed all information and the new owner accepts the car as-is.Odometer DisclosureThe Truth in Mileage Act, which is a federal law, states that all owners must disclose the odometer reading of the car they are selling. You must do this if the car is less than ten years old and up to 12,000 pounds. Check with your state to determine exactly what you must include, but an odometer disclosure typically includes the VIN, make of the car, model of the car, year, the buyer’s name and address, buyer’s signature, seller’s signature, current mileage, and a notary seal.Bill of SaleA bill of sale is not required, but it is a good idea. A bill of sale outlines the buying agreement and typically includes a vehicle description, odometer reading, purchase price, and signatures of both the buyer and the seller. A bill of sale can absolve you from any future liability issues that may arise.And that’s everything you need to know about selling your car privately. Selling your car privately can be a hassle, but it can certainly be worth it in the long run. Follow our tips for selling your car and make sure you get top dollar for your car.If you aren’t looking to sell your car, but are looking for some extra cash, consider refinancing with Auto Approve. We work closely with lenders across the country to get you the best rates possible, which can translate to huge savings. So don’t wait – get your free quote today!GET A QUOTE IN 60 SECONDS
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Top 6 Money Moves To Make Before You Are 25

04/10/2022 22:00
When you are young, it’s easy to feel overwhelmed by money decisions. On one hand, you might be out on your own for the first time and have a lot of expenses (maybe more than you anticipated). But on the other hand, you know that how you handle your money now can have big implications for your future.While it may seem like a lot to think about, it’s true that the decisions you make now will affect every aspect of your financial future. Do you hope to have a family? Do you want to retire early? Do you dream of a vacation home? Getting into good financial habits early will help you plan to live the life you want.So today, we are talking about the 6 best money moves you should make before the age of 25. Make a budgetMaking a budget is a simple task that can have long lasting effects. All it takes is some time and discipline, and you can set yourself up for a good financial future. Here’s what to do:Determine your incomeYour first step is to determine how much money you are bringing in every month. Calculate your actual take home pay, which is your pay minus any taxes. This is your net income. If you have any deductions for a 401K or similar accounts, make sure you account for them as well.Determine if you have any other income coming in every month. This could be from a side business, from rent you receive – anything that gives you some extra spending money. Determine your expensesOrganize all of your monthly expenses into a spreadsheet. You will need two categories each month, fixed costs and variable costs. Fixed costs are your monthly expenses that do not change and are the same amount every month. Fixed expenses can include rent/mortgage, your car payment, cable bills, internet, etc.  Variable expenses are expenses that change from month to month. Variable expenses can include groceries, your electric bill, dining out, etc. To determine average variable expenses, go through your credit card and bank statements from the past six to eight months and come up with averages for each category.  Budget your needsDivide your expenses, both variable and fixed, into needs and wants. What do you need to survive and what is a luxury? Divide them up and take a look at each category.  Determine where there is wiggle room. For example, rent and groceries are both necessities. You can’t change your rent payments, but you can adjust your grocery bill. Decide on a fair budget for your needs. Budget your wantsLook at your spending in your “wants” category. This is where you have the most room to adjust. See what you can get rid of to free up extra room in your budget. Little changes here and there will add up to big savings over time. Make a planNow you need to determine how you want your finances to be allocated. Many advisors recommend a 50/30/20 model for personal budgets. This means that 50% of your income is allocated for needs, 30% is allocated for wants, and 20% is put into savings. You can adjust these numbers based on your situation, but aim to always have some money allocated into savings. See how your current expense allocation looks. From there, determine where you can make adjustments. Canceling some streaming services or refinancing your car loan can free up a good amount of money every month. Decide on a budgeting plan that your plan is realistic and easy to track. The more complicated your budgeting system is, the more likely you will lose steam and your budget will go off the rails.Check your credit score and credit reportGet in the habit of checking your credit score regularly. Having a good credit score will make everything in your financial life easier. The top benefits include:Lower interest rates on credit cards and loansBetter chance for credit card and loan approvalHigher credit limitsBetter insurance ratesEasier approval for rentalsMore negotiating power for loans and accountsYou can check your credit report for free up to three times per year, once from each of the big three credit bureaus. Be sure to take advantage of this to monitor for any inaccuracies. Here’s what you should keep an eye on:Identifying Information. Your name, address, social security number, date of birth, and phone number. Make sure everything is accurate.Credit History. Look at all open and paid credit accounts, like credit cards, mortgages and loans. Check on any accounts that are shared with someone else. Look at total loan amounts, remaining loan balances, late payments, and check to see if any accounts have been sent to collections. Public Records. Ideally this section will be blank. This is where bankruptcies and judgments would be listed.Inquiries. Check to see what companies have requested your credit report. If anything looks incorrect or amiss, contact the credit bureau to report it. It may take up to 30 days to receive a response, but you want to ensure any mistakes are corrected. In addition to ensuring that your credit score and personal information is accurate, checking your credit report will also alert you if anyone has been opening accounts or conducting business in your name.Increase your credit scoreCommit early in your financial life to increasing your credit score. The most important factors to your credit score are payment history and credit utilization. So be sure to prioritize making full, on time payments and keep your credit utilization ratio below 30% – this means that your total debt is less than 30% of the total credit you have available to you.Start an emergency fundEmergencies are by nature unpredictable. You never want to be caught off guard without a financial safety net. The earlier you start this, the better off you will be. Depending on your situation, your emergency fund goal may vary. But no matter what your goal is, you want to use the budget you created before to allocate money to your emergency fund. If you never touch this money – great! Then it’s tuckered away safe and sound, possibly earning a little interest along the way. But if you do need it for an unforeseen medical emergency or damage to your house, you have the resources to help yourself.Refinance your loansLike a lot of young adults, you may have gotten roped into a few less-than-ideal financing situations. If you bought a car when you were younger, you probably didn’t have a stellar credit score. And it’s hard to get a good interest rate when you have virtually no credit to your name. As time has gone on and you have built more and more credit, you have probably qualified for a better interest rate than you did when you initially applied for financing. That’s why you should look into refinancing your loans, especially your car loan.Refinancing your car loan can help you in a lot of ways:You can secure a lower APRYou can change your repayment periodYou can add or remove a cosignerThe earlier you refinance in the life of your loan, the more money you will save. Check out Auto Approve today to see how much money you could be saving!Start saving for retirementThe earlier you start saving for retirement, the more comfortable your retirement will be. Even making small contributions to a tax-favored retirement account in your early 20s can add up to big money. Open an account that is geared towards retirement, such as an individual retirement account (IRA) or a 401(k). This way you can defer paying taxes on this money – this means there is more money in the account to earn interest on.If your employer offers to match any contributions to your retirement, be sure to take advantage of this. This is essentially free money.To emphasize how beneficial it is to start saving for retirement early, let’s look at an example. If you were to save $4,500 per year over 45 years of working, you would have over one million dollars by the time you retired. If your money was matched dollar for dollar by your employer, you would only need to contribute $2,250 per year. That’s less than $200 per month that would enable you to comfortably retire. Isn’t that worth it? So get started while you are young enough to have that money work for you.And those are our top 6 money moves to make before you are 25.Commit early to prioritizing healthy financial moves. The earlier you start a responsible budget and savings plan, the earlier you will reap the rewards. And if refinancing your car loan can help you reach your goals, be sure to contact Auto Approve today. We can help you save money every month so that you can make your money work for you!Get started with Auto Approve with a free quote!GET A QUOTE IN 60 SECONDS
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What is a Good Rate for a Truck Loan?

04/05/2022 22:00
The demand for trucks right now is at an all time high, so buying a truck can feel a bit overwhelming. With prices higher than ever, you want to make sure, if you're buying, you're getting a good rate on your truck loan.If you're in the market for a new truck, you might be wondering if now is a good time to buy that truck you’ve had your eye on, or if you should hold off and wait until next year. If you already have a truck, maybe you are wondering if now is a good time to refinance your truck loan. Today, we are talking all about buying a new truck, from cost to car loan APRs, to help you make the right decision.Let’s talk about buying a new truck: the costs, the rates, and how to decide if it’s the right time for you to buy.How much does a new truck cost?The price of a new truck is certainly on the rise these days. Between June 2020 and June 2021, new truck prices increased an average of 7.2% according to Kelley Blue Book. That’s a huge increase in just 12 months. According to Kayla Reynolds, an analyst at Cox Automotive, “New-vehicle affordability continues to decline as the income required to purchase the average new vehicle continues to climb. In June, for the first time in a decade, vehicle buyers were essentially paying sticker price – the manufacturer's suggested retail price – for new vehicles."According to Kelley Blue Book, a new truck now costs an average of $41,105, and full size pickup trucks tend to average out closer to $50,000. Many full size pickup trucks are out pricing luxury cars. The good news is there are still some highly rated affordable truck options on the market, including the 2022 Toyota Tacoma (starting at $26,700), the 2022 Ford Ranger (starting at $25, 500), and the 2022 Ford F-150 (starting at $29,990). Why are trucks so expensive?Why exactly are trucks so expensive right now? There are a few reasons for this, many of which have to do with the fact that pickup trucks are getting nicer and nicer as the years go on. They are no longer strictly for utility, but are instead morphing into versatile luxury rides. Here are the top reasons trucks are so expensive.Pickup trucks are becoming more luxuriousNew trucks these days are akin to luxury cars. They often have full grain leather, Wi-Fi, and touch screen infotainment. They are being used as family vehiclesPickups are getting larger and roomier, so they are quickly replacing minivans and SUVs as family car options. They now have many family friendly features built in, and their ability to double as a work truck makes them a desirable new vehicle option.They are more powerful than everAn increase in power and capability has made these pickups much more expensive. Advances in technology including turbochargers, direct injection, and aluminum body panels have increased the towing capacity and increased the horsepower tremendously. (The average truck could tow 7,000 pounds in the mid 1990s, while today the average pickup can tow 10,000 pounds) But all of these advancements come with a hefty price tag for research and development, which ultimately is passed on to the consumer.There are heavy dealer markupsSince trucks these days are so nice and in demand, dealerships mark them up much more than other types of vehicles.There are higher profit marginsManufacturers are taking advantage of this demand as well. Reuters estimates that the average full size pickup truck sold by GM brings in $17,000 of profit. This is much, much higher than the markup for a car.What are today’s auto loan rates?If you want to buy a new truck, it’s going to come with a pretty hefty price tag. But the good news is that car loan rates are still exceptionally low. So if you luck into a good deal, now is the perfect time to buy a new truck.Today's average auto loan rates depend heavily on your credit score. These are the average car loan APRs from the last quarter of 2021, as reported by Experian.Exceptional (Super Prime, 800-850): 2.47%Very good (Prime, 740-799): 3.51%Good (Near Prime, 670-739): 6.07%Fair (Subprime, 580-669): 9.41%Very poor (Deep Subprime, 300-579): 12.53%The higher your credit score is, the lower your car loan APR will be. It is always a great idea to work on increasing your credit score before applying for a car loan.How does the loan term affect loan rates?The length of your car loan will greatly affect the car loan interest rates that you are offered. You can typically find financing ranging from 24 months to 72 months, with the shorter repayment periods offering lower interest rates. But remember, the shorter the repayment period is, the higher your monthly payments will be, as there is less time to split up the total cost.With longer financing options becoming available, many people are choosing to have lower payments over a longer period of time, even if it means that their interest rates will be higher and they will be paying interest for a longer period of time. This is another reason that new truck demand is increasing: while prices are higher, financing is making it doable. If you are in a position where you can afford new truck payments, now is a great time to take advantage of the low rates. But if you are struggling to pay your bills every month, wait to pull the trigger on a new set of wheels.Should I refinance my truck loan?If you already have a truck that you are financing, it might be a great time to refinance your loan. Rates have dropped drastically in the past few years, so even if your truck is only two years old, the rates may be 3 to 4 points lower than what you are currently paying. And this can translate to hundreds if not thousands of dollars in savings. So how do you know if the time is right to refinance your car loan?If your credit score has improved since your last auto refinance or initial financing. Check your credit score and see how it compares to when you initially financed your truck. If it has increased, even if only slightly, you may qualify for a much better car loan interest rate. If the market rates have dropped since your last auto refinance or initial financing. If the market rates have dropped in general since your last financing (which they probably have in today’s economy), you may qualify for a much better car loan interest rate. If you need some breathing room in your monthly budget. Refinancing your car loan can save you money by lowering your interest rate. It also allows you to change your repayment schedule, lengthening your repayment period and thus reducing your monthly payments. This can free up a lot of money in your monthly budget.You want to add or remove a cosigner. If you want to change who is listed on the loan, you will need to refinance your loan. Since each car loan interest rate and set of terms is determined based on who is listed on the loan, you cannot simply change who is listed as the borrower.Who will refinance my truck loan?If you are looking to refinance your car loan, you have a lot of options. From traditional banks, to credit unions, to online lenders, there are seemingly endless options for refinancing.Your best bet is to use a company that specializes in auto refinance, a company like Auto Approve. Auto Approve can guide you through the refinance process, from selecting and applying to different lenders, comparing the different offers, and signing all of the necessary paperwork. Refinancing can be complicated, but when you have a partner like Auto Approve who is dedicated to making your refinance as easy as possible, it can be a breeze! And rest assured we NEVER markup the rates from lenders. We are passionate about passing those savings on to you.That’s everything you need to know about buying a new truck and refinancing your existing truck loan.If you can find a good deal on a truck, today’s rates make it a fantastic time to purchase a new truck. Interest rates will most likely increase over the next few months and years, so you should try to take advantage of the low rates while you are able. If you already have a truck that is financed, you can benefit greatly from a car loan refinance. Our customers routinely report savings of hundreds if not thousands of dollars. And Auto Approve makes it so easy to get started! Just head over to our website and fill out some basic information, and we can get you offers in minutes. So if refinancing your truck sounds like a good move for you, don’t wait any longer – get your free quote today from Auto Approve! GET A QUOTE IN 60 SECONDS
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What is APR and How is it Calculated?

04/05/2022 22:00
You’ve probably heard the term APR tossed around a lot. But what does APR stand for, and what is the difference between interest rate and APR? While these terms are similar, they are not exactly the same. Today we are talking all about interest rates, APRs, and how they are calculated.What is the difference between interest rate and APR?Interest rate and APR are often used interchangeably in the car loan industry, but they are not exactly the same thing. An auto loan’s interest rate is the cost of borrowing money every year, expressed as a percentage. It does not include any fees that are charged for the loan. An auto loan’s APR (Annual Percentage Rate) is the cost of borrowing money every year, expressed as a percentage, including any associated fees.So while they are similar, they are not exactly the same. The APR is considered to be a more accurate measure of the cost of the loan, as it takes all of the fees into account as well. The Truth in Lending Act requires lenders to disclose all loan terms and fees, so they are obligated to alert you to anything that you are responsible for paying. Since all lenders must disclose the APR, it is a valuable tool for comparing loan terms.Note: Be sure that you are always comparing APR to APR, not APR to interest rate. You always want to compare apples to apples.Here’s how to calculate APR on a loan.A car loan APR is calculated using the interest rate that you are offered. Here are the basic steps to calculate APR on car loans.Determine the interest amountAdd any administrative fees to the interest amountDivide by the principalDivide by the number of days in the loan termMultiply by 365 (one year)Multiply by 100 to convert to a percentageIn other words, here is the APR formula:APR = ((Interest + Fees / Loan amount) / Number of days in loan term)) x 365 x 100Let’s put this to use. Math class is in session! For example, say you are borrowing $20,000 to finance your new car. You have a 5% interest rate and a four year loan period. The closing costs on your loan are $700.Principal (P) : $20,000Interest Rate (R) : 5%Time (T) : 4 years The interest on the loan can be found with the formula:Total Amount Accrued = Principal (1+Rate x Time)Total Amount Accrued = 20,000 (1+.05 x 4)Total Amount Accrued = 20,000 (1.2)Total Amount Accrued = $24000So now we know our total amount accrued is $24,000, and our accrued interest $4,000 (Total Amount- Principal Amount). Now we can put all of this in our APR formula.APR = ((Interest + Fees) / Loan amount) / Number of days in loan term)) x 365 x 100APR= ((4000 + 700)/20000) / 1460 x 365 x100APR = 5.875 %So while your interest rate is 5%, your APR is actually 5.875%. This number more accurately represents the cost of your car loan.How are car loan interest rates determined?While the car loan APR is what you should be comparing, this number is based on the interest rate that you are offered. But how are car loan interest rates determined? Why do these rates vary from person to person?Car loan interest rates are determined by both market factors and personal finance factors. Market FactorsCar loan interest rates depend in part on how the economy is performing. Interest rates are set by the Federal Open Market Committee (FOMC). If the committee determines that spending needs to be encouraged, it will lower interest rates to do so. We are still in the middle of an unprecedented economic wave following the pandemic, and interest rates are still remarkably low (which is why right now is the perfect time to refinance your car loan). Market rates are expected to increase as the year goes on, so it’s best to refinance your car as soon as possible to take advantage of these low rates.Your Credit Score and HistoryYour credit score is the most important factor in your car loan interest rate. Credit scores are the biggest variable from application to application. Your credit score takes into account the following categories: Payment History. Do you have a history of on time payments? Have you missed payments in the past? Lenders want to be sure you will pay back your debt on time. Amounts Owed. How much money do you owe? The amount of money you owe, your debts, are used to calculate your credit utilization score. A credit utilization score below 30% is considered desirable for lenders. Credit History Length. How old are your accounts? Having older accounts and a longer credit history is more favorable to lenders. Credit Mix. Do you have a mix of different types of accounts and debts? A good mix might include a mortgage, auto loan, student loan, and credit cards. This indicates to lenders that you can manage your money across multiple accounts. New Credit. Do you have a lot of hard inquiries on your credit? Do you have some brand new debts? These might be considered liabilities by lenders.Your IncomeIn addition to your credit score, lenders will also look at your income and your debt-to-income ratio. If you are carrying too much debt, the lenders may only offer higher car loan interest rates as they consider you to be a riskier candidate.The Loan TermIn general, the longer the loan term is, the higher the interest rate you are offered will be. Lenders will offer lower rates for shorter terms. This means that if you select a longer lease period, you are not only paying a higher car loan interest rate, but you are paying it for a longer period of time. This means you will end up paying a lot more money overall by selecting a long repayment period.How can I get a lower APR car loan?If you are looking to either secure a new car loan or refinance your car loan you are probably wondering how you can get a lower APR car loan. And the good news is there are some steps you can take to increase your chance of securing a good car loan interest rate.Step 1. Get Your Credit Report and Review for ErrorsContact one of the major credit bureaus (Equifax, Experian, and TransUnion) to get a free copy of your credit report. You can get your report from each agency for free once per year. Review your report carefully and look for any inconsistencies. Are the dates of opened accounts correct? Are the balances on each account accurate? Is your payment history correct? Make sure that all credit limits are up to date and that all personal information is accurate. If you notice any errors, report them immediately. Step 2. Request Higher Credit LimitsThe higher your credit limits are, the lower your credit utilization ratio will be. This compares the amount of money you owe to the amount of money available to you. Lenders will often increase your limits throughout the years when they review your information, but you can also try requesting a higher limit and see if they will oblige. This will help your score as soon as it is reported to the credit agencies.Step 3. Keep Your Credit Balances Below 30%Keeping your balances to less than 30% of your available credit will help your credit score greatly. This will lower the credit utilization ratio we discussed above. The highest credit scores often use less than 7% of their available credit, so keep that in mind when you are looking at your accounts. Working to keep a low credit utilization ratio will help your score immensely. Step 4. Commit to On Time PaymentsMaking consistent, full, and on time payments will help your score a lot. Sign up for autopay if you are able to, or set an alert on your calendar if you have a tendency to miss payments.Step 5. Shop Around and CompareThe car loan interest rates that you are offered will vary greatly from lender to lender, so you really want to prioritize shopping around. If you are looking to refinance, you are in luck – Auto Approve makes shopping around and comparing incredibly easy. We have relationships with lenders all across the country and can easily help you apply to a number of lenders and compare their offers instantly. Think of us as your partner in saving money, because we never mark up our rates. We just pass the savings on to you.That’s everything you need to know about interest rates, APRs, how they are determined, and how you can get the lowest rates.Now that you know all about car loan interest rates, you are probably keenly aware that you are overpaying on your loan every month. But you can escape your bad loan terms, and Auto Approve is here to help! Don’t wait any longer to start saving, get your free quote today!GET A QUOTE IN 60 SECONDS
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Questions You Should Ask Before You Lease a Car

03/31/2022 22:00
When you decide to lease a car, there are a number of things you need to consider. From the lease term to the mileage limits to the hidden fees, there is a lot to unpack. But before we get into the nitty gritty of specific lease questions, you need to ask yourself first: Is leasing a car a good idea? If any of the following apply to you, a car lease might be perfect for you.You don’t drive a lot, and don’t want to be bothered with repairs and maintenance.You want a new car every few years.You don’t want to deal with selling the car.You want to maximize tax deductions (you will be using it as a business car).Leasing a car is also great if you want to ensure you get the lowest monthly payments and want to put less money down to drive off. So if leasing a car sounds like a good solution for you, let’s talk about what questions you need to ask before you lease a car. How Long is the Car Lease?One of the biggest questions you need to ask about your car lease is the length of term. There are usually three options you have to choose from: short term (less than one year), 2-3 years, or long term (4 or more years). And there are advantages and disadvantages to all of these.Short term leasingShort term leasing of less than one year is not always an option. But it can be a good solution for you if you need a car quickly but don’t want to be tied down to anything or make a long term commitment. Certain dealers will offer leases of 3, 6, 9, or 12 months. But with these terms, the payments will be much higher than with other longer lease terms. That is because depreciation occurs most aggressively in the first year of a car’s life.2-3 year leasingTwo years is typically the shortest period that a dealer will offer. The monthly payments will be lower than a short term lease, but still will not be very low. Again, the largest amount of depreciation occurs in the first year, so the dealer needs to account for this. A three year lease will provide you with lower monthly payments than a two year lease, which is why a 3 year lease is the most popular lease term. When leasing, you want to be sure that the car’s warranty will be active for the entire length of your lease. If the warranty expires, you will be on the hook for whatever repairs are necessary. A typical car warranty will last at least 60,000 miles, which will extend the entire length of the three year lease. Long term leasingFour years is typically the longest that you can lease a car for, but you may find a rare five year lease here and there. The monthly payments will be lower the longer your lease term is, so if prioritizing low payments is your main goal, a longer lease might be the best option for you. But be sure that the warranty will cover for the length of your lease.Deciding which lease term is right for youThere are pros and cons to each lease term, so consider the following when deciding which term is best for you.What monthly payments are you comfortable making? Remember, the shorter the lease, the higher the monthly payments.Will you be leasing a business car? If the car will be used for business, you may find deals on 2-3 year leases that are lower than personal use leases.Are you comfortable making a commitment? If you don’t want to commit to anything long term but need a car now, short term leasing might be right for you.There’s a lot to consider, but most people will find that a standard 3 year lease will provide them a balance of lower monthly payments, sufficient warranty coverage, and the ability to get a new car in the not-too-distant future.How Many Miles Does The Lease of the Car Include And What Happens When I Go Over?Mileage limits are another major factor of a lease. Car leases always have a limit to the amount of miles that you can put on the car per year, typically 10,000 or 12,000 miles per year. If your mileage limit is 12,000, that’s only 1,000 miles per month. That equates to 250 miles per week, so if your commute is 25 miles one way, a car lease with this mileage restriction will not work for you.So what happens when you go over your mileage limits? Each lease will spell out a per-mile fee for which you are responsible. These fees are not meant to be penalties per say, but are meant to make up for the higher depreciation that is accruing because of the extra miles. Lower priced cars tend to have a fee of $.15 per mile, mid priced cars tend to have a fee of $.20 per mile, and high end or luxury cars tend to have a fee of $.25 to $.30 per mile. This should be spelled out in your car lease contract and is usually non-negotiable, so be sure that you are comfortable with the mileage limitations.If you do go over your mileage limits, you have a few options.Consider a lease pull ahead This is when dealers get you back in the showroom before your lease term is over. There are a number of reasons a dealership may offer this. They may want to make sure several of the same cars aren’t hitting the auction block at the same time, or maybe there is a strong demand for the current car you are leasing. But whatever the reason is, they may waive all fees if you sign a lease on a new car.Buy your leased carIf you like your current car and know that the excess mileage fees are going to add up to a lot, you should consider a car lease purchase. Auto Approve can help you finance your car lease purchase and keep you in the car you love. This way you will not be responsible for any overage fees or excess wear and tear fees, and can instead keep your car for the foreseeable future, or sell it.Try to reduce your mileage and pay the feesIf it looks like you are going to exceed your mileage limit on your car lease, you can try to minimize the damage and cut back on driving as much as possible. Try carpooling when possibleRent a car for vacations or long drivesUse public transportationConsolidate your trips as much as possible Try to incorporate some of these tips into your driving life; little changes can add up over time. If you can anticipate how many miles you will be over your lease agreement, you can begin saving for those fees.What Other Fees Does The Car Lease Have?When comparing car lease deals, you want to consider what fees you will be charged. These will vary from dealer to dealer, but commonly include the following.The Acquisition Fee. This is meant to cover the dealer's paperwork and related costs for the beginning of your lease. It can also be called a bank fee or administrative fee. It can be anywhere for $400 to $800.The Disposition Fee. This is meant to cover the expenses of returning your car at the end of the lease. It pays for the car to be cleaned and for any minor repairs that the car may need. It usually runs about $350.The Wear and Tear Fees. Check the fine print about what you may be charged for wear and tear. Slight wear is expected and factored into your monthly payments, but they will outline in your lease agreement anything that they think is excessive. Check to see what your financial responsibility will be.Some of these fees are negotiable, while some are not. It never hurts to try to get some of these fees waived, or at least try to haggle them down. If leasing a car is right for you, be sure to ask these questions before you sign on the dotted line.Leasing a car is a great option for many people and has become increasingly popular over the last decade or so. But be sure to do your research and ask the right questions before you agree to anything. One of the best parts of leasing is that if you love your car, you can always purchase it at the end of your lease term. That’s where Auto Approve comes in. Just enter some information about you and your car, and we can get you quotes for your car lease purchase in no time! So if you love your car lease and aren’t ready to say goodbye, get started with Auto Approve today!GET A QUOTE IN 60 SECONDS
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What is a Good Rate for a Car Loan?

03/31/2022 22:00
If you are looking to buy a new car, there’s a good chance you will need to apply for financing. The good news is, car loan APRs are lower now than ever, making it the perfect time to buy a car or refinance your car loan.So, how do you know if you are getting a good deal or not?Today we are talking about how car loan interest is calculated and what is considered a good rate for a car loan.How does interest on a car loan work?Before we get into the specifics of today’s car loan rates, let’s talk about how car loans work and how interest gets calculated and applied. Car loans are secured loans, which means that if you default on payment, the car itself will be used as collateral.The primary factors of a car loan are the following:The principalThe interest rateThe length of repaymentThe principal that you are borrowing is the cost of the car, plus any fees and taxes, minus your down payment.Principal = Cost of Car + Fees + Taxes - Down PaymentThe interest that is charged is essentially the price of borrowing money for your loan. The car loan APR that you are offered is based on:The market ratesYour incomeYour credit scoreThe repayment termsThe interest that you are responsible for over your repayment is calculated using the following formula:Interest Cost= Principal x Car Loan Rate x Length of Loan TermThe interest due is added to the principal due and divided up over your repayment period. While your monthly payments will be the same every month, the money will be divided up between principal payments and interest payments according to an amortization schedule.How much should you put down for a car payment?When it comes to your car loan, you may be wondering “How does increasing the size of your down payment impact your auto loan?” The more money that you put down up front, the lower your monthly car payments will be. In general, it is recommended that you put 20% of the total cost down as an upfront payment. This will offset depreciation and help ensure that you never owe more on the car than the car is worth. Let’s look at an example to see how much a down payment can save you.You would like to buy a new car with a purchase price of $30,000 and you choose to not make a down payment. You have an APR of 6% and a sales tax of 6%, and you have decided on a 48 month payment period. Total Loan= Purchase Price + Sales TaxTotal Loan= $30,000 + .06 x $30,000 Total Loan= $32,330Over the life of the loan, you will pay $4,048 in interest on this balance of $31,800, ultimately paying a total of $35,848 on your $30,000 car. Your monthly payments will be about $747 per month.Now let’s look at what happens when you put a 20% down payment on a car. Total Loan = Purchase Price + Sales Tax - Down PaymentTotal Loan = $30,000+ .06 x $30,000 - $6,000Total Loan= $25,800Over the life of the loan, you will pay $3,284 in interest on this balance of $25,800, ultimately paying a total of $29,084. Your monthly payments will be about $606 per month. A down payment of 20% will save you over $700 in interest and reduce your monthly payments by over $100. On top of saving you money and lowering your monthly payments, there are other benefits to making a down payment on your new car:It might make the approval process easierIt might qualify you for special incentivesIt can offset depreciationAs you can see, making a down payment on a car can make a big difference.What is a good rate for a car loan?So what’s considered a good rate for a car loan? For that answer, let’s look at the latest State of the Auto Finance Market Report from Experian. Every quarter Experian does a deep dive into the auto industry’s consumer trends. This latest report from Quarter 4 of 2021 gives us the following car loan APR averages based on credit score.Exceptional (Super Prime, 800-850): 2.47%Very good (Prime, 740-799): 3.51%Good (Near Prime, 670-739): 6.07%Fair (Subprime, 580-669): 9.41%Very poor (Deep Subprime, 300-579): 12.53%The better your credit score is, the better car loan APR you will be offered. That is why it is so important to work on raising your credit score before you apply for financing, or before you apply to refinance your car loan.  The market rates play a large part in the car loan APR that you will be offered, and we have been seeing incredibly low interest rates over the past few years. The Fed has announced that rates will be increasing as the year goes on, so now is the perfect time to refinance your car loan.When is a good time to refinance a car loan?The average car loans above should give you a sense of whether or not you can find a lower car loan APR when you refinance. But if any of the following apply to you, now is probably a great time to refinance your car loan.You got talked into dealer financing with your original loan Your credit score has improvedThe market rates have dropped since you initially applied (And they probably have!)You need some extra breathing room in your monthly budgetYou want to add or remove a co-borrowerOn the other hand, if any of the following apply to you it might not be the best time to refinance your car loan.If your existing loan has heavy prepayment penaltiesIf you need a high credit score for another applicationIf your existing loan is less than six months oldIf your existing loan has less than a year leftIf your credit score has decreasedToday’s car loan rates are lower than ever, making it the perfect time to refinance your car loan.With rates this low, now is the perfect time to refinance your car loan with Auto Approve! Just fill out some basic information and we can help you start comparing rates (and saving money) today. And rest assured that we never mark up your rates; we are passionate about passing the savings right on to you. So don’t wait any longer – get a free quote from Auto Approve today!GET A QUOTE IN 60 SECONDS
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What Credit Score Do You Need to Lease a Car?

03/29/2022 22:00
Car leasing has become more and more popular over the past decade. And it’s no surprise; there are many benefits to leasing a car. You get to trade in and get a new car every few years, you don’t have to worry much about maintenance, and the monthly payments tend to be much lower than traditional financing. But sometimes the requirements of leasing are more strict than the requirements of financing, especially when it comes to your credit score.The credit score you need to lease a car will vary from dealer to dealer. Having a good credit score will earn you a much better interest rate and better repayment terms. But if your credit score is less than perfect, you may still be able to lease a car.According to data gathered by Experian, over half of lessees had a credit score over 741 in the fourth quarter of 2021. Though that is a pretty high bar, all is not lost if your credit score is below that. In fact, you may even be able to get a lease if your credit score is below 700, although you may have to make some concessions. But having a good credit score will put you in a much better position to negotiate a good car lease.Today we are talking about why your credit score is important when leasing a car, and how you can improve your score to get the best car lease deals and terms.Why is a Good Credit Score Often Needed for a Car Lease?When determining your car lease rate, lenders will look at the following factors:Market ratesYour incomeThe vehicle you want to leaseYour credit scoreAnd while these are all taken into account and are all important, your credit score is without a doubt the most important factor in determining your car lease interest rate.Credit scores indicate to lenders how reliable of a customer you are. Will you pay your debts back? Will you pay them back on time? The less of a risk you are as a borrower, the more likely you will be approved for a car lease and the better the interest rate you are offered will be.Your credit score is determined by five major factors:Your payment history. This makes up 35% of your credit score. This category tells lenders if you pay your accounts on time, and if your payments are on time, full, and consistent.  This is the most important category in your credit score.Your amounts owed. This makes up 30% of your credit score. This category tells lenders how much debt you are in. The accounts owed category uses your credit utilization ratio, which measures the amount of money you owe to the amount of credit you have available to you. This is measured both as an overall ratio of your total debt and total credit, and measured for each individual account. You want your credit utilization ratio to be less than 30% ideally. The length of credit history. This accounts for 15% of your credit score. This measures how long you have had your accounts open. The longer you have a history of open accounts that you consistently pay, the higher your score will be.Your credit mix. This section accounts for 10% of your credit score. This section looks at how diverse your portfolio is. A healthy mix of loans, credit cards, retail credit cards, mortgages, etc will help show lenders that you can balance having varying accounts open.Your new credit. Your new credit category accounts for 10% of your credit score. If you are opening new lines of credit, it means there are some variables that may change your current credit situation. For example if you are opening a new line of credit, you may currently owe more money than your current report is reflecting. The most important categories in your credit score are your payment history and your amounts owed. Staying current with payments and making sure that you do not take on too many debts are the most important things you can do for your credit score.Your credit score takes all of these factors into account and assigns you a three digit number between 300 and 850. These scores are defined along the following categories:Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579As the latest Experian data pointed out, more than half of lessees were reported to have either prime or super prime credit scores. With these high credit scores, you will be more likely to get a better car lease rate and better leasing terms.Does Leasing a Car Build Credit?A car lease is a type of installment account. An installment account is simply a loan that has fixed payments over a period of time. Other types of installment accounts include mortgages and personal loans. Installment accounts are reported to credit agencies, therefore they will affect your credit score.Leasing a car will be another monthly bill that you will have to keep up on. But if you can make consistent, on time, and full payments, leasing a car can help boost your credit score. Make sure you do not get in over your head with your car lease; car payments can add another burden on a tight monthly budget. Always make sure you have breathing room in your budget in case of an emergency.How Can You Improve Your Credit Before You Apply To Lease a Car Online?You want to make sure that your credit is in its finest shape before you look to lease a car online. Here are our top tips to improve your credit score before applying for a car lease.Check your credit reportYou can request a copy of your credit report once a year from each of the three major reporting agencies (Experian, Transunion, and Equifax). That means that three times per year you should be reviewing your credit report for errors or mistakes. Be sure to do this before you apply for a lease. Compare your payment histories, make sure there aren’t any strange accounts that you are unaware of, and make sure all of your personal data is up to date. IF you notice any mistakes, report them immediately. Little issues here and there can spell big trouble for your credit score.Commit to making on time paymentsSince your payment history makes up 35% of your credit score, this is very important. Pay extra attention to your payments in the months leading up to your lease inquiry. Signing up for autopay can be very helpful if you have a tendency of missing payments. If your accounts don’t offer autopay, try setting up alerts in your calendar to remind yourself that a payment is due.Pay down your debtsReducing your credit utilization ratio by paying down debts can have a positive effect on your credit score. Remember that your credit utilization ratio is calculated on your total debts, as well as your individual accounts. So if you have one account in particular that you owe a lot of money on, try to strategize your payments and pay down those debts first.Request higher limitsWhile many accounts will automatically grant you higher limits as your account matures, it doesn’t hurt to request a higher limit. Requesting higher limits from your credit accounts can help improve your credit utilization ratio and boost your credit score significantly.Wait on opening other new accountsOpening a new account triggers a hard inquiry on your credit report, which can cause your score to dip slightly. It can also affect your length of credit history. These are only minor dings on your credit score, but it’s best to hold off anyway. You never know what few points could stand between a good credit score and an excellent credit score.Become an authorized userIf you have a family member who has exceptional credit, you can ask them to become an authorized user on their accounts. This can give your credit score a major bump.Try Experian BoostExperian Boost  is a new service that can instantly boost your credit score by including payment histories that are usually not included in credit score calculations. For example, your on-time Netflix payment would not normally count towards your credit score, but with Experian Boost, it would count positively. And if Experian finds that you don’t have a good history with these accounts, it won’t count them against you. While this won’t boost your score 100 points, it can give you an extra few points that might make all the difference for your car lease rate. It’s important to have a good credit score to get the best deal on your car lease.Leasing a car is a great option for many people, and having an excellent credit score can help you get a great deal. If you already have a car lease and are looking to purchase your lease, Auto Approve can help! Car lease purchase is one of our specialties, and we can help secure you a great rate with one of our top lenders.GET A QUOTE IN 60 SECONDS
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How Much Money Does It Cost To Get an Auto Loan Refinance?

03/24/2022 23:00
If auto loan refinance has been on your mind, you are probably wondering about all the pros and cons. While you have heard that refinancing your car loan can save you a lot of money in the long run, what about the upfront costs? Does it cost money to get an auto loan refinance? And if so, is it worth it to refinance your car loan?In this article, we'll take a closer look at refinancing and what you need to know to decide if refinancing your vehicle loan is right for you.Is It a Good Idea To Apply For A Car Refinance?Auto refinancing has a lot of benefits, but like everything, you should do your research and make sure it is the right decision for you. Let’s talk about the pros and cons of refinance (car, truck, SUV or motorcycle)The Pros of RefinancingThere are a lot of pros to refinancing your car loan. The biggest of course is that it can save you a lot of money. By refinancing your car loan to a lower APR, you can save hundreds if not thousands of dollars over the life of your loan. You may qualify for a lower APR if your credit score has increased or if the market rates have decreased (market rates have dropped almost 2% in the past two years, so chances are the market rates are lower now than at your initial financing).The Cons of RefinancingWhile you can save a lot of money through auto refinance, you will be required to pay some upfront costs. They will vary from lender to lender and depend on not only your current loan’s terms, but also your new loan’s terms. Here are a few costs that you may be responsible for:Prepayment fee. Some lenders charge a fee for paying off your loan early. This should be outlined in your contract, and will vary greatly from deal to deal.Processing Fee. Both your current lender and new lender may charge you a processing fee.Registration Fee. You may be required to re-register your car when you refinance your car loan. This will depend on the state you live in.Title Transfer Fee. Some states may charge a title transfer fee, even though the title is just moving from one lender to another. It’s hard to say exactly how much the upfront costs of car refinancing are. But refinancing a car loan can save you a lot of money in the long run, so it’s worth doing the math to see how much money you can save with an auto loan refinance.When does it make sense to refinance your car?If any of the following apply to you, it might be the perfect time to refinance your car.If your credit score has increased since your initial financing, you may qualify for a lower car loan APR.If your income has increased since your initial financing you may qualify for a lower car loan APR.If you got talked into a bad deal in the first place, you may find better terms.If the interest rates in general have dropped since you first took out the loan on your vehicle, you may find a lower car loan APR.If you want to add or remove a borrower to your policy you will need to refinance your car loan.If you need some extra cash every month, refinancing your car loan to a lower APR or lengthening your repayment period (or both) can reduce your monthly payments.When does it not make sense to refinance your car?If any of the following apply to you, it might not be the time to refinance your car.If your credit score has decreased, you might not qualify for a lower APR.If you have an old vehicle or a vehicle with high mileage, it might not qualify. If you owe more on your car than it is worth, you might not qualify.If you have less than a year left on your loan, you might not qualify.If any of the above apply to you, it might make sense to wait to refinance. Does Refinancing a Car Lower Your Credit Score?There will be some upfront fees associated with your car refinance, but are there any other downsides to refinancing your car? The only other slight downside to refinancing is the slight ding that your credit score will take. But this ding is only temporary, and the benefits of refinancing will most likely far outweigh this. In fact, refinancing your car loan to a lower APR can help your credit in the long run if it helps you to manage your monthly payments more efficiently. Car refinance will affect two main categories on your credit report: your history length and your new credit. Opening a new account will shorten your credit history length. It will also count as a new credit and the hard inquiries will be noted in your credit report.Because of this, your credit score will most likely take a slight dip when you refinance, but car loan refinancing may still increase your credit score in the long run by making your payments more manageable.  Adding in a car loan can also be beneficial to the credit mix category on your credit report.What are the Best Car Refinance Companies?So what should you take into consideration when looking at car refinance companies? As always, we recommend doing your research before jumping into any financial decisions. There are a lot of places where you can refinance your auto loan, including traditional banks, credit unions, online lenders, and dealerships. When looking into any of these options, take into consideration the following factors:Customer reviews/ customer satisfactionAverage rates being offeredAverage fees that are chargedA great option for many people is to use a company that specializes in auto refinance, like Auto Approve. Since we know the refinance industry better than anyone else, we are equipped to guide you through the auto refinance process and answer any questions you may have along the way. We have relationships with lenders across the country, so we can get you the best deals and make the application process seamless.  And when the offers start coming in, Auto Approve can help answer any questions and help you to make the best decision.While it may cost money to refinance your car loan, it is probably still worth doing so.We hope this answered your questions about auto refinance. To get more information on refinancing, or to find out just how much money you can save, get in touch with Auto Approve today!GET A QUOTE IN 60 SECONDS
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Why is it Better To Lease a Car Instead of Buying One?

03/24/2022 23:00
When you finally decide to get a new car, your first instinct may be to buy. But have you considered that leasing might be a better option?There are a lot of benefits to buying a car, but for many people, the perks of leasing a car will far outweigh the benefits of buying a car. So why is it sometimes better to lease a car than to buy?If You Lease a Car, You Can Negotiate The PriceThere is a misconception when it comes to leasing that you do not have as much negotiating power. But this could not be farther from the truth. When you lease a car, you actually have much more to negotiate on than when you buy a car. So what exactly can you negotiate on your car lease?The Capitalized CostThe capitalized cost (or “cap Cost”) is the agreed upon value of the car. In other words, it is the sticker price of the car. Your car lease payments will all be based off of this price, so it’s important to negotiate this number as low as you can. Be sure to go to Kelley Blue Book and Edmunds to get a good sense of what a fair value is for your car. The Money FactorThe money factor is similar to the interest on a loan. It is essentially the cost of leasing the car. Money factors are expressed as very small numbers (such as .003), but you can multiply this number by 2400 to get an approximate percentage that makes sense (.003 x 2400 = 7.2%).Your ability to negotiate this will vary from dealer to dealer. Your money factor is determined mostly by your credit score, so the factor that you are offered will depend on which bracket your credit score is in. Some dealers will claim this is non-negotiable, while some dealers may budge. It is worthwhile to try to negotiate this rate as low as possible.The Down PaymentYou can usually negotiate the down payment required on your lease. And if your credit score is good enough, you may be able to put zero money down. When you buy a car, you want to put down as much money as you can, as you will not have to pay interest on that money and it will help ensure that your loan doesn’t become underwater. But leasing is different. If you put a down payment on a car lease and something happens to it, that money is simply gone. Additionally, one of the main perks of leasing is the low upfront costs. If you have a large down payment, this defeats this perk. You should always try to negotiate this and roll over any down payment requirements into monthly payments. The Mileage AllowanceDepending on how much you drive, the mileage allowance may be a huge hindrance for you. All leased cars have annual mileage allowances, typically 10,000 or 12,000 miles per year. If you go over your allotted mileage, you could face a fee for every mile that exceeds your limit. So you want to be sure to negotiate this term in your car lease agreement. The Lease TermConsider how long you want to have your leased car. This will vary from person to person – some people love getting a new car as soon as they are able to, while others like to stick with a car they are comfortable with for a longer period of time. You should be sure however that you never extend your lease beyond your warranty period. If something breaks while you are leasing the car but it is not covered under warranty, it will be your responsibility to fix it. And that can be a big hit in the wallet.How To Negotiate a Better Lease of a Car OnlineLeasing a car online may provide you the best chance to get a good deal. Instead of being limited to the dealerships that are nearest to you, you have a much larger market to look through. So here are our top tips to negotiate and lease a car online.See what you can afford. Go through your budget and see how much you can comfortably afford to spend every month on a car lease. (If you need some help with your budget, we have a handy guide to budgeting you can use) When thinking through your budget, be sure to not overextend yourself. Keep in mind that emergencies happen and you don’t want to pick a car lease that just fits into your budget. Always give yourself some breathing room.Research cars. Take a look online and see what type of car suits your needs the best. Would you prefer a car or an SUV? What color do you prefer? What makes and models have the best reviews? Websites like Kelley Blue Book and Consumer Reports can help you to narrow down your choices and give you a good idea of what a fair capitalized cost will be.Search for dealers. There are tons of dealers and online sellers for you to choose from. Do your research to see who has the best customer satisfaction ratings and who has the best car lease deals on the car you are looking to lease.Do a buy vs. lease comparison. Make sure that leasing is the right option for you. It may be helpful to do all of the math and determine what your monthly payments would be for both. Leasing will almost definitely result in lower monthly payments, but make sure you are comfortable with the pros and cons of leasing before agreeing to anything.Select your dealer and apply. Once you know what you are looking for and who has the best deals, select the dealer you want to move forward with. In order to apply for your lease, you will most likely need the following information:A valid photo IDYour insurance informationProof of income (normally your last two pay stubs will suffice)Proof of residency, like a current utility billIf this will be a trade-in, you will also need any trade documents, such as your current car’s title, registration, and/or loan release. Compile all of your documents and scan them onto your computer. Complete all of your applications and wait for your offers to come in. Negotiate. When your offers come in, you can start negotiating. You can negotiate all of the same points that you would negotiate in person. Be sure you are getting a fair capitalized cost and market factor, and make sure the down payment, lease term, and mileage allowance are all reasonable. Remember: a larger online market means you have more options, so don’t rush into any deals and don’t settle.Sign and arrange transport. After you have decided on which loan is best for you, you can sign on the dotted line and start arranging for transportation. The dealer or service you are leasing from will probably be able to arrange this for you, but it doesn’t  hurt to look around to see if you can find a better car lease deal.How Do You Get The Best Car Lease Deals?In order to find the best car lease deals, you will need to do some research. There are tons of websites that specialize in online leases, like CarsDirect and TrueCar. But be sure you know what is a good value for the car lease you are interested in by using sites such as Kelley Blue Book and Edmunds to look up values.If you are already leasing a car and are interested in purchasing it, you can find great lease purchase deals online as well. Purchasing your lease may be a good option if any of the following apply to you:You love your car and can’t bear to part with itYou have gone over your mileage allowance and will be responsible for heavy feesYou have a lot of wear and tear on your car and will be responsible for heavy feesYour car is worth more than the buyout priceYou have a party that is interested in buying your car from youWhatever your reason is, lease buyouts can be a great way to save money and stay in the car you love. At Auto Approve, lease buyouts happen to be one of our specialties. We can help you secure financing and keep you in the car you love! Sometimes it makes more sense to lease a car rather than buy one, and sometimes it makes sense to purchase your car when the lease is over.There’s a lot to think about when it comes to leasing a car. Be sure to weigh your options and decide what works best for you. No matter what you decide, be sure to do your research and negotiate as much as possible.If a lease purchase makes sense for you, you can get started with Auto Approve today!GET A QUOTE IN 60 SECONDS
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