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:

804_1934-chevrolet-suburban-1

2016 Model:

2016_suburban_edit

 

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.

2015_tesla_model_s

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.

2015_kia_soul

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.

2015 volkswagen passat

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.

2015_toyota_tacoma

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.

2015 audi a7

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.

2015_jeep_wrangler

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!

2015_honda_odyssey

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!

2015_honda_CRV

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

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How to Buy Your First Car in 10 Steps

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!

New VS Used Cars: Which is Right for You?

One of the most common questions we see car buyers grapple with; is whether to buy a new car or a used car. Like anything, there are advantages and disadvantages to both options. Check out our comparisons below to help you determine which is best for you:

New Cars:

  1. Choice: When you buy new, you get to customize exactly the way you want, and often have more options than a used car. Color, interior, entertainment, and navigation systems are all customizable. If you don’t see what you want on the showroom floor, there’s a good chance that the dealership can special order a car to your qualifications.
  2. Better Finance Rates: A used car may cost less initially, but the interest rate will most likely be higher. Low-interest financing and cash rebates are often used to entice buyers into new cars, and are generally not offered for pre-owned vehicles.
  3. Better Warranty: While you can always buy warranties for a pre-owned vehicle, the best warranty you can get, for the best price, will be the one that comes from a manufacturer with a new vehicle.
  4. Safety: Vehicle safety laws are constantly changing, and auto makers are always producing new vehicles to meet that change. Newer vehicles will meet those more stringent safety standards, simply because they were made more recently.
  5. Higher Fuel Efficiency: Much like safety standards, car manufacturers are constantly adapting their product to be more fuel efficient with lower emissions. Additionally, new cars tend to have more hybrid options.

Used Cars:

  1. Price: Look, the bottom line? A used car is always going to be cheaper than a new one. The money that you save might make it possible to spend money on some customizations like sound or navigation systems.
  2. Insurance Rates: Generally, it will cost less to insure a used car. Keep in mind that this will be a monthly expense, so this may a significant factor in making your decision.
  3. Depreciation: Depending on the make and the model of the car, it can loose up to 45% of it’s value within the first three years. So, while you may be getting the latest of everything with a new car, you will loose a greater amount of money as it depreciates.
  4. Environmental: It’s not a guarantee that a pre-owned vehicle will be less environmentally friendly, and if you’re into recycling, buying a used car ensures that no resources will be used to produce a new car.
  5. Variety: If you’re open to buying used, you have a pretty much endless inventory to choose from. You are not limited to vehicles that have been released in the past year, and if you are willing to spend some time looking, the sky is the limit as to what you can get!

So what’s the final say? Well, ultimately it all comes down to what you want. There are plenty of reasons to go with new, and plenty of reasons to go with used. The bottom line is that you should go with what fits your situation best. Do your research, go for test drives, and have a clear idea of what you want. Whether buying new or used, the end goal is that you’re happy with your car!

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!

 

 

The Top 10 Best Used Cars

With a pretty much unlimited inventory, it can be hard to narrow down what type of used or pre-owned vehicle is going to get you the most bang for your buck. Below you will find our list of the top 10 used cars available to you.

1.) ‘05 Honda Pilot:

The earlier Honda Pilots set the standard for comfort when it comes to larger SUV’s; both in the interior and in the drive quality. This car drives well, and even better, it smoothly transitions to all kinds of terrain. Ideal for active families, it comfortably seats 5 people, with three seats that fold down in the trunk space for a total of 8 seats. This make and model also has great visibility and  towing capabilities!

honda_pilot

2.) ‘06-’07 Infiniti G35:

For a new and used car alike, the Infiniti G35 boasts some impressive stats. With a 3.5 liter V-6 engine and dual path intake, this car has a smooth drive and excellent stability control. It has a stylish exterior that ages well, with an equally as nice interior. Six airbags are standard, making it a safe option for any driver.

infiniti-g35

3.) ‘07-’08 Lexus ES:

Lexus has long been known for offering affordable luxury, and the ES is no different. With a drive that is smooth and reliable, and a 272 horsepower engine, this car combines the best of all worlds. With SmartAccess keyless entry, one of the highest safety ratings possible, and room enough to accommodate an average 2 parent 3 child family, it’s an excellent option for a wide variety of buyers.

lexus_es

4.) ’08 Mazda 3:

Among car fanatics, Mazda’s have started to emerge as a new favorite, mainly because they are so fun to drive. With a 2.3 liter and 263 horse power engine, this is a car that can talk the talk and walk the walk. The ’08 boasts upgraded safety features, and it’s clear Mazda put a lot of effort into making this car great. The styling is understated, yet attractive, and the model has an impressive array of standard and optional features, which means you can customize it to your liking!

mazda_3s

5.) ’08-’12 Honda Accord:

The Honda Accord has long been seen as the stereotypical used car, and jokes, aside, there’s a reason for that. Honda is widely known for their reliability, and because their cars last so long, they are an ideal option for someone looking for a pre-owned vehicle. It offers a comfortable ride, plenty of room, and 3.5 liter V-6 engine. When it comes to all around quality at a good price, the Honda Accord is the best bet!

Honda_accord

6.) ’09-’11 Toyota Rav 4:

If you’re looking for a smaller sized SUV that fits a fairly active lifestyle, then look no further. With a 4 cylinder engine and plenty of room for passengers, this is an ideal road trip car. The Rav 4 also features Toyota’s Hill Start Assist Control, Downhill Assist Control, and a comprehensive StarSafety program. This would definitely be a great option for someone looking to make the move from a compact to an SUV.

toyota-rav4

7.) ’10 Subaru Impreza:

This car is certainly small yet mighty. While it definitely falls in the compact category, it has the power and engine of a much bigger car, with both 4 wheel drive and a turbo charged engine 2.5 GT engine. The 2010 Impreza also has impressive safety ratings; including 5 stars for frontal crash protection and 5 stars for side protection, making this car is a surprisingly smart buy for someone looking for a versatile ride.

subaru_imprezza

8.) ’10-’12 Toyota Camry Hybrid:

It’s hard to put a price on Toyota dependability, because any car that they make will definitely have lasting power. The 2010 redesign of the Camry did a lot for Toyota’s brand, and it shortly became one of their most popular cars. With an electric motor and continuously variable transmission, 7 air-bags, and anti-lock brakes, you definitely get your money’s worth. While this model is excellent in both hybrid and non-hybrid options, if you’re looking to save on gas and go green, this is one of the best hybrid options on the market!

toyota_camry

9.) ’11-’12 Nissan Murano:

The handling on the Nissan Murano is truly one of the best in its class. With continuously variable transmission and a 260 horsepower V-6 engine, it doesn’t get much smoother. For a compact, it’s pretty roomy and has an impressive 64.5 ft of cargo space. Finally, the IIHS gives it the highest possible safety rating, making it a great option for families and car fanatics alike.

nissan_murano

10.) ’13-’14 Hyundai Elantra: 

Hyundai is largely underrated, but the ’13-’14 Elantra is nothing to scoff at. It is equal parts fun and practical to drive, and boasts an impressive 38 MPG on the highway. It’s interior is home to the latest technical features, including driver selectable steering mode. With plenty of cargo space, it’s the ideal for a buyer looking for a new car experience at a used car price.

hyundai_elantra

Let EveryAuto find the perfect used car for you: Used Car Search Here