Car Finance through a car dealer
Question about finance
What are the benefits of a finance major over a simple business administration major?Trying to decide which major I want, I think I want to go into finance, but I am not sure. I know I am going into business- at a business school.
Also, if there are any people who have careers in finance, what do you specifically and do you like your jobs? Because I have an internship in finance and accounting and it is pretty boring…but it is just because they don't give me enough work to do so I don't feel like I have had the true experience.
All of us require proper car finance at the time of purchasing a car. The procedure to buy a car from a car dealer would be simpler rather than walking directly into a company. Car dealers arrange for some useful services of automobiles loans and automobile insurance. Dealer financing is probably the best route for a low interest car loan as they deal in large volume. If you are not satisfied with the car finance provided by your dealer you can always opt for automobile refinancing.
The following information will help you understand the importance of Automobile Loans, Automobile refinancing, and Automobile Insurance. All three factors play an important role at the time of purchasing a car.
1) Automobile Loans
All of us need a car but to buy a car we need to obtain financial loan. Automobile Loans are very important source of helping the buyers to finance their cars. An automobile loan route is the direct automobile financing route. Automobile dealership will help you get a better bargaining power with an approved automobile loan. Automobile loan terms can be shorter or longer. If you go for a higher car loan term you will have to pay a high interest rate and vice versa. Since the car dealers have access to multiple financial institutions you can be assured a low interest rate.
2) Automobile Insurance
It would always be advisable to have an automobile insurance if you own and have a car. All you have to do is apply for an automobile insurance and pay the premium to the insurance company once a year. If you meet with a an accident, damage your vehicle and spent lots of funds on its repairs all you have to do is just inform the insurance company and get all your money back. A car dealer will help you with the service of automobile insurance.
3) Automobiles refinancing
If you have a poor credit history you can submit your application to the automobile refinancing. Your poor credit scores can make you to pay a much higher rate of interest on the loan. One does not need an appraisal for refinancing the automobile loan. You also need to make a note of all the reasons you need to refinance. Consumers who do not pay enough attention to the automobile financing can encourage trouble and might have to pay a higher interest rate. Automobile refinancing is seeing a boom mainly on account of the lowest mortgage rates in 45 years.
Isabella Rodrigues writes for newyorkcarinsurance.info,
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Video related to finance
Complete video at: fora.tv Nobel Prize-winning economist Joseph Stiglitz proposes alternatives to Gross Domestic Product (GDP) as a measurement of national economic success. —– Nobel Prize-winning economist Joseph Stiglitz ("Globalization and Its Discontents") talks about his new concept of economics, "The Economics of Information," and his latest book, "Making Globalization Work" – Asia Society Joseph Stiglitz was chief economist at the World Bank until January 2000. Before that he was the chairman of President Clinton's Council of Economic Advisers. He was awarded the Nobel Prize in economics in 2001. He is currently a finance and economics professor at Columbia University. He is the author of Globalization and Its Discontents and The Roaring Nineties.
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Tags: Automobile Insurance, Automobile Loans, automobile refinancing, Car Dealer, Car Finance
Posted on March 20th, 2010 at 1:19 am
The dealer can make points, so if a lender approves you for 7% the dealer may charge you 9%, then the dealer and the lender split this 2% usually 75/25 with the 75 going to dealer. The most that most lenders allow is usually 3 points, but 2 is most common. They may also not be allowed to make any in which case the bank just pays them a flat commonly $100-$200, just for sending them the loan.
The other person was corrrect in saying sometimes the dealer may have to pay a fee just to get you financed, but by law they cannot pass this fee along to you. And they can usually still make points.
Hope this helps
10 yrs in auto biz
Posted on March 20th, 2010 at 2:15 am
Mate these videos are so much helpfull and very clear to understand, you have a great approach of teaching, well done!!
Posted on March 20th, 2010 at 2:34 am
Did I miss something? Did you say initally you would give me $100 today and toward the end of your talk, you said you would give me today $105 and I could invest it at 5% rate and earn $110.25. How did you go from giving me $100 toay to giving me $105 today?
Posted on March 20th, 2010 at 2:43 am
Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carquotes.fateback.com
Posted on March 20th, 2010 at 10:02 am
Really helpful in understanding some of the complex and simple financial terms..
Posted on March 20th, 2010 at 2:12 pm
Come in with your own financing. The dealer will use the fact that they're financing against you. They won't give you a "great" deal on the price of the car AND "great" financing terms.
Posted on March 20th, 2010 at 6:23 pm
I always finance through my local credit union and this is they way it works from my experience.
Step 1 – Contact your Credit Union first and get approved to whatever amount you intend to purchase a vehicle for. Don't forget to include all fees and taxes and make sure you ask for a fax number so that the dealership can fax them a bill of sale.
Step 2 – Go pick your car and negotiate your best deal. Explain to the finance person that you intend to use a separate financial institution than what they are offering.
Step 3 – The financial person will draw up a 'mock contract' with a lending establishment that they use and tell you that you have 10 business days to give them a check for the full amount of the purchase. The terms and conditions are not important unless you don't get them the check within the 10 business days.
Step 4 – Give the dealer finance guy the fax number to your financial institution and have them fax a bill of sale. Drive away in your car if your financial institution is closed.
Step 5 – As soon as the financial institution in which you are borrowing money is open, call them immediately and ask if they received the bill of sale. They should say yes and they should overnight you a check for the full amount listed on the bill of sale, assuming you were approved for at least that amount.
Step 6 – When you receive the check, take it to the dealership and hand it to the finance guy you dealt with. Also request that he tear up the 'mock contract' he created in case you did come with a check.
All that is left is that you start to pay back your lending institution.
Good luck.
Posted on March 21st, 2010 at 6:45 am
It seems a not easy cracking nut,look around here
http://www.Autoinsurancepro.info
you should find something helpful.
Posted on March 21st, 2010 at 7:41 am
It is not a bad idea assuming they can match or beat your bank. Get approved with a rate from your bank then go to the dealer. When you get into the finance office explain to them the rate you have and make them at least match it. Dealers are indirect lenders that can make a profit on rate. Meaning they may get the rate for 5.5% but the can mark it up to 8.5% and get 80% of the profits on the rate. Keep them honest but financing through them saves run around time.
Former New and Used car Sales and Finance Manager
Posted on March 21st, 2010 at 12:02 pm
I’m in finance 300 right now. thank you!
Posted on March 21st, 2010 at 2:53 pm
awesome
Posted on March 21st, 2010 at 4:24 pm
I’m thinking of majoring in finance. The first thing I dedicated myself to do is look through this entire playlist. I just want to thank you for giving me and everyone else such an opportunity.
Posted on March 21st, 2010 at 7:10 pm
man thats clear as crystal, now i understand present and discount value
Posted on March 22nd, 2010 at 1:55 am
A lot of dealerships will cash a deposit check before they get a reply from the lender. It is not illegal and you are entitled to the amount in full. Since you wrote a check, some dealerships will wait until the check has cleared, then issue you a check back for the deposit.
Cash deposits are usually always returned much quicker. There is no reason to get a lawyer if you signed the check because the dealership would simply prove that you consented to the funds transfer, even if you didn't <by showing a check addressed to them, signed by you>. You can try to go to your bank and do a stop pay, however many charge for the service. Good Luck!
Posted on March 23rd, 2010 at 6:06 am
Hey, this is so cool. Continue making these great videos. I do not know why they are not as popular as all the other less interesting vids on youtube, I mean this often makes me want to say “But this is so simple!”
Posted on March 23rd, 2010 at 7:27 am
that’s amasing! thank you very much from argentina and france!
Posted on March 23rd, 2010 at 11:03 am
Read your contract, it depends on the terms of the loan…but normally yes you can refinance if you have good credit and the car is worth the amount you got loaned.
Posted on March 23rd, 2010 at 11:20 am