The Ins and Outs of Auto Financing

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In 2015, the average price for a new car is $31,252, while a used car comes in at around $16,335, and both of those numbers are constantly changing. With the price of both new and used cars increasing each day, buyers should consider financing their vehicle purchase as a helpful way to assure they get the car they want.

The first thing that every buyer should know when it comes to financing a car, is that there are two types of financing available. The first type is called Direct Lending. Direct Lending means that an applicant gets financing directly from a financial institution; such as a bank, finance company, or a credit union. When you use direct lending, you are entering an agreement to pay the amount financed plus a finance charge over a period of time. There are several benefits to Direct Lending.

Two main advantages of Direct Lending:

1. You can ask several lenders about your financing options before you agree to them

2. You can also learn about your credit terms in advance before you go to the dealership.

The second type of financing is Dealership Financing. Dealership Financing refers to when an applicant gets financing through the car dealership where the vehicle is purchased from. The dealer may retain the finance contract, but more often than not, they will sell it to a bank or finance company, which is called an Assignee. The Assignee will then service the account and collect the payments. There are several benefits of financing through a dealership, too.

Two main advantages of Dealership Financing:

1. Dealership financing is definitely the most convenient, as they sell the cars and finance in one location and are often open late and on weekends.

2. Dealers work with a range of different banks and financial institutions, which means that they often have more options for customer financing, and they also have access to manufacturer sponsored, low-rate incentive programs.

Regardless of what type of financing you chose, it is important to be fully aware of all that financing entails. Research federal and state auto financing laws; these will help you better understand the process, ensuring that you get the best financing options available to you. You should also determine what you can actually afford when it comes to monthly payments and money down. The price you end up paying each month will depend on several factors – total price you negotiate for the vehicle, the annual percentage rate (APR), and the length of the credit contract.

A few final points to keep in mind:

1. If you are looking to trade in your current vehicle make sure that you have not gone into negative equity and that the dealership you are working with will accept trade-ins.

2. If you have a credit deficiency, you may need to get a co-signer. Be prepared and talk to someone who you think would be a good co-signer for you.

3. You should be prepared for a credit check and all that that entails.

Ultimately, if you do your research and prepare yourself, it shouldn’t be hard to get a financing option that works for you!

 

Throwback Thursday: Chevrolet Suburban

Did you know that one of the oldest car models still in production is the Chevrolet Suburban? The first model was built in 1933 for the National Guard, and most of its body was made out of wood. In 1935, Chevy rebranded it is a station wagon for the general population, and they have since produced 12 generations. To this date, the suburban has been around for a whopping 82 years!

1935 Model:

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2016 Model:

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Looking for a Chevy Suburban? Let EveryAuto help you here: Chevy Suburban

 

The Top 10 New Cars: 2015 Edition

Searching for the right car can be overwhelming, especially because there are so many amazing options on the market today. Below is a list (in no particular order) of the best 10 cars of 2015 to help you on your search!

1.) Tesla Model S:  This is the car to watch these days, and one of the few cars that Consumer Reports gives an overall rating of 99/100, the highest rating of any car on the market. The Tesla Model S combines the experience of a luxury car, a high performance car, and an eco-friendly car all into one stunning package. It gets an astounding 84 MPG, but one of it’s coolest elements is that it’s technology is designed to update, meaning that you can upgrade the technology without having to upgrade your car. If you’re looking for a luxury car that’s going to last, this is the best option.

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2.) Kia Soul: Despite the ridiculous commercials, the Kia Soul has slowly emerged as a stylish, refined, and practical vehicle choice. This car features a smart interior, solid build, and a 130-hp 1.6 liter four cylinder engine. Behind the wheel it boasts a tilting and telescoping steering wheel, four wheel disc-brakes, stability control, and a total of 6 airbags. If you’re looking for a unique car that drives with ease, look no further.

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3.) Volkswagen Passat:  Although one of the more underrated Volkswagen models, the Passat has long been known for its around town flexibility. With an impressive turbocharged engine, the 2015 model also features upgraded shocks, springs, and a much more efficient exhaust system. If you’re looking for a more luxurious ride at a standard price, the Passat is a sure bet.

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4.) Toyota Tacoma: When you think of the mainstay of the truck world, it’s hard to think of anything else besides the tried and true Toyota Tacoma. It has long been the de facto car of choice for an active lifestyle; mainly because it transitions so easily from mainstream driving to off-roading. It offers the storage and power of a pickup truck, but is perfect for someone who lives an active and adventurous lifestyle.

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5.) Audi A7: If you’re are looking for a luxury vehicle that is incredibly versatile, you’ll be hard pressed to find a better option than the Audi A7. With all the amenities of a luxury car; modern interior, LED headlights, and subtle grill, this model also features two engine options and four wheel drive. Audi also only offers the only ZF 8-speed torque converter on the US market.

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6.) Toyota Prius: Without a doubt, the Prius is virtually unmatched in the fuel efficiency by any other standard vehicle. The basic model gets up to 50 MPG and can travel up to a mile on electricity alone. One of the best things about how popular the Prius is, is that Toyota now produces it in a variety of options. The 2015 model comes in the original hatchback, the compact, the Prius C, the Prius V wagon, and a plug in version.

2015 Toyota Prius

7.) Jeep Wrangler: The Wrangler is the car that comes to mind when someone says the word Jeep. The 2015 edition is no exception, bringing back everything we loved about the old Jeeps and updating the things we didn’t. The new model offers a 3.6 liter V-6 torque engine, as well as four wheel drive, ample ground clearance, and nimble suspension. But the best thing about this car? It can transform from a cozy shield against winter weather, to a summer cruiser in minutes.

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8.) Honda Odyssey: When it comes to cool cars, a mini-van isn’t generally the first thing that comes to mind. However, we think there are some pretty awesome reasons why you should check out the Honda Odyssey. Firstly, it’s generally accepted as one of the best minivans to drive. Secondly, it’s incredibly roomy, with enough room for your whole family, and then some. And for all you parents out there, the 2015 model features a built in vacuum cleaner!

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9.) Honda CR-V: In 2015 Honda brought the CR-V back, and they were not messing around. Almost everything about this model has been updated. With improved handling, suspension, and brakes, the CR-V is no joke. The 2015 is the most stylish version yet, and has an amazing fuel economy. Standard models also feature Honda LaneWatch, which makes parking a breeze!

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10.) Ford Mustang: Of course, we couldn’t make a list without mentioning the quintessential American car; the Ford Mustang. The 2015 model features the latest and greatest technology, and is one of the more powerful cars on our list. The Mustang’s seamless transition makes driving it a breeze, but sets it apart from other sports cars by making it easy to drive on a day to day basis. You can never go wrong with a mustang!

2015 ford mustang

Let EveryAuto help you find the perfect new car: Search for New Cars Here!

How to Buy Your First Car in 10 Steps

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Congratulations! You’ve decided to purchase your first car. This is a big step, and can often be an overwhelming process. Below, you will find some tricks and tips to help you navigate researching, deciding on, and purchasing your dream vehicle.

Step One:

  • Establish what you need: This is different from what you want, in that it will be what is essential to your lifestyle. Do you live in an area that experiences a lot of snow and ice? Then you probably need 4-wheel drive. Do you have kids or a large family? You probably need a mini-van or SUV. Do you drive long distances regularly or have a long commute to work? Then you probably need a car that gets good gas millage. By identifying what you absolutely need, you can start to narrow your search.

Step Two:

  • Establish what you want: This is different from what you need, in that it may not be absolutely essential, but still important to you. Are you a music lover? Then you probably want a good sound system. Do you talk on the phone a lot? Then you probably want a car with a bluetooth system built in. Do you take a lot of road trips? Then it might be nice to have a navigation system built in.

Step Three: 

  • Prioritize: Once you’ve determined the difference between what you want and what you need, you can start to prioritize what you’re looking for. If you want a great sound system, maybe you’re willing to compromise on leather interior to lower your price. Go in with a clear idea so that you don’t get sidetracked and end up paying more.

Step Four:

  • Research: Before you visit a dealership, it’s important that you have at least a baseline knowledge of what type of car you want, what you can afford, and (if needed) what financing is available to you. The web is a great tool for this step, find cars near you.

Step Five:

  • Locate a dealer: Find a dealer in your area that is convenient and you like. You can read reviews online, and check to see what their inventory looks like. Check out EveryAuto’s dealer research page!

Step Six:

  • Know your options: You should have a clear idea of what is available to you, both in terms of your actual car, and your financing options. Don’t be afraid to bring examples to back yourself up, and don’t be afraid to ask for what you want. Additionally, some dealers may not be as well versed in the specificity of the car that you are looking for, and may not always know about all the customizations available to you.

Step Seven:

  • Be an asset to yourself: Don’t go into the dealership expecting them to educate you. You should already have a clear idea of what type of car you what, what your budget is, and (if needed) what type of financing you would be approved for. Be as proactive as you can about the process; it will save you time and money in the long run.

Step Eight: 

  • Check the cost collision insurance: When is comes to collision insurance, some cars cost more than others and that’s just the nature of the beast. However, you want to make sure you have comprehensive insurance, and you should factor this into your overall budget for the car.

Step Nine:

  • If you’re buying used, have the car checked by an independent mechanic: This is just common sense. Some people even bring their mechanic with them while they shop, just to expedite the process.

Step Ten:

  • Enjoy yourself: When all is said and done, if you’ve researched your options and prepared yourself, purchasing a car should be pretty painless, and even enjoyable. Buying your first car is an exciting milestone, and you should have fun with the process!

Resources:
If you’d like to search used cars, click here: Used Car Search

If you’d like to search new cars, click here: New Car Search

Let EveryAuto find the right vehicle for you!