Financing > Avoid Playing Auto Financing Poker

Avoid Playing Auto Financing Poker

by: Daniel DeHaven

Finance departments are where dealers make most of their profit (well, financing and after-market products).

Their profit lies on something called the "Finance Reserve." That is the difference between the interest rate the dealer is offering you and the lower interest rate (called the "buy rate") the bank offers the dealer.

For example, lets say you have a credit score of 700. The finance manager offers you a conventional loan through Generic Bank at, say, 6.9%.

But what you don't know, as you sit there negotiating, is that the dealer already has a standing arrangement with the bank that says that any buyer with a credit score of 700 can have a loan at 4.9%. If you go for the 6.9%, the dealer keeps the other 2%. That's the "Finance Reserve." For the dealer, it's just gravy. Cash in his pocket.

Most banks cap a dealer at 3% over the "buy rate," but not all do. According to our latest reports, Ford Motor Credit, for example, has no cap on the dealer mark up. That means you could pay anywhere from 1% to 10% more than what you actually qualify for.

Don't worry, the dealers are not out to get you. This financing reserve sometimes works in your favor. It allows the dealer to offer competing interest rates to consumers who have no chance of getting that rate elsewhere!

Regardless of how cards fall, smart car shoppers get their credit report score and look for loan quotes before they walk into the dealership. You can find more information and receive a no-obligation, free auto loan quote at http://www.buyingadvice.com/

About The Author

Daniel DeHaven is the Editor in Chief of the BuyingAdvice Team (www.buyingadvice.com). He understands the auto business. He's been around it - all of his life. Daniel has been a consumer advocate voice for over 15 years. He has learned every trick and profit ploy car salespeople use... and mistakes buyers tend to make.

Conventional Financing For Wholesale Deals

Conventional Financing For Wholesale Deals

by: Lou Castillo

This info is very important for both new and experienced wholesalers, AND buyers of fixer-uppers, to carefully read and understand. We learned it painfully, hopefully you won't have to :-)

Often times we are asked by investors about using conventional financing for their investor deals. In other words, they want to go through a bank or other similar lending institution to purchase a fixer-upper from us, or another wholesaler. The obvious advantage is that rates are cheaper, and the loan origination fees (many times referred to as ?points?) are both much less than ?hard money? (loans from individuals or small institutions specifically for investor type properties, with rates ranging from 5 points and 15% interest to 10 points and 18% interest). There are, however, some obstacles to using conventional financing of which you must be aware.

First of all, these banking institutions...

Conventional Financing For Wholesale Deals

Financing > Conventional Financing For Wholesale Deals

Buying A Car After Bankruptcy? These Suggestions Could Help

by: R. Lawrence Anderson

If you are buying a car after bankruptcy, here are a few suggestions that could help:

First, you want to make sure you've done everything you can to increase your credit score. Once you've done that you're ready to start shopping for your car!

Here's a question for you: Is it better to get outside financing or get financing through the dealership when you are buying a car after bankruptcy. The answer is... drum roll please... it depends!

It's worthwhile to apply for outside financing when buying a car after bankruptcy. But make sure you do it through the right lender. If you don't, you could end up paying $100s or $1,000s more in extra interest. If you even get approved at all.

Now let's assume you've done your homework. You found the car you like, you know how much that make and model sells for, and you know how much your trade in is worth....

Buying A Car After Bankruptcy? These Suggestions Could Help

Financing > Buying A Car After Bankruptcy? These Suggestions Could Help

Student Loan Options For Financing Your Education

Student Loan Options For Financing Your Education

by: Sintilia Miecevole

When you begin applying for colleges, you will find that tuition and boarding fees are extremely expensive. Unless they are independently wealthy, few people can pay for college outright. If you do not qualify for scholarships, financing your education can seem virtually impossible, even with the help of regular financial aid grants. However, there are many low interest student loans available for students that qualify for them. Rather than putting off your education, you can borrow money and defer payment until your have graduated and have found a full-time job with which you can pay back what you owe.

The first step toward applying for student loans is to fill out a financial aid application form called the Federal Application for Student Financial Aid. Once you have been accepted to a college or university, you will be sent a packet of financial aid information. You...

Student Loan Options For Financing Your Education

Financing > Student Loan Options For Financing Your Education

3 Little Known Tips to Buying Fitness Equipment

3 Little Known Tips to Buying Fitness Equipment

by: Amy Metz

Did you know that buying fitness equipment for your home isn?t really that difficult?

It?s true that the world of fitness equipment can seem like a maze at times and that there are literally hundreds of different types of fitness equipment pieces that might work well for your home arrangement.
However, with a little guidance, the process really isn?t that hard and you will be amazed at the bargains that you can find if you just dig a little deeper than the average consumer is usually prepared to. Let?s take a look at some tips to help you out in your quest for new fitness equipment.

1.
Look at used equipment. This is where some good deals can be found.
Fitness equipment can obtain a weird status in a person?s home.
They might have been really excited to buy it initially and dreams of a fit body and monthly gym savings might have filled their...

3 Little Known Tips to Buying Fitness Equipment

Financing > 3 Little Known Tips to Buying Fitness Equipment

Auto Financing Online

Auto Financing Online

by: Mike Hamel

More and more consumers are getting their auto financing online instead of from the dealerships where they buy their vehicles. Getting auto financing from a dealership has some benefits:

? Convenience ? vehicles and financing are in one place and the dealer is motivated to find financing for buyers, no matter their circumstances.

? More options ? a dealer?s relationships with a variety of banks and finance companies mean they can offer a range of loans to fit a buyer?s credit rating.

? Special programs ? sometimes dealers can offer manufacturer-sponsored, low-rate programs, but usually only to people with good credit.

But getting auto financing online offers even more advantages:

? Certainty ? buyers know how much they can spend before setting foot on a dealer?s lot.

? Clout ? buyers with financing in hand are treated like cash customers and are in a stronger negotiating position.

?...

Auto Financing Online

Financing > Auto Financing Online

Mortgage Brokers

Mortgage Brokers

by: Dan Lewis

When applying for a home loan, it can be difficult to ascertain your options and the best deal out there. Mortgage brokers can help you shop for the best loan for your situation.

Mortgage Brokers

A mortgage broker is an independent professional assisting homebuyers with their mortgage needs. Instead of a loan officer for a bank, a mortgage broker typically works with tens or even hundreds of lenders. This independence lets mortgage brokers hunt for loans that fit the credit history and particular lending needs of a person.

Let?s assume you have less than stellar credit when you apply for a loan at ABC Lender. The lender pulls your credit report and determines you don?t qualify for any of the loans offered by the lender. The lender is going to drop you like a rock and move onto the next potential borrower.

Now, let?s make the same assumption regarding your credit score, but put a mortgage broker...

Mortgage Brokers

Financing > Mortgage Brokers

5 Ways Poor Credit Scores Costs You Extra Money

5 Ways Poor Credit Scores Costs You Extra Money

by: Jeanette Joy Fisher

Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don't know about your credit could be costing you money.

Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.

Did you know that your credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?

1. Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility...

5 Ways Poor Credit Scores Costs You Extra Money

Financing > 5 Ways Poor Credit Scores Costs You Extra Money