Monthly Archives: February 2012

Four Year Low for Interest Rates

There was good news today for car buyers. According to Bloomberg Business, interest rates are at the lowest they’ve been for four years. The low interest rates are in part to borrowers now paying their bill on time and not falling behind as well as a rise in demand for new cars. On average, the interest rate for a new car loan fell to 4.52% in the fourth quarter. This figure was founded by Experian Automotive and they also said that the rates were the lowest since they began tracking the figure in 2008.

Borrowers who have fallen behind on payments by 30 days saw a decline of $15.1 billion in the fourth quarter. That’s 8 percent down from just a year before and 28 percent lower overall of what it was at the end of 2009. Those who were delinquent on loans of 60 days decreased $3.48 billion which translates to a 14 percent drop-off from last year and 39 percent from 2009.

A positive up-swing in car sales has really lit a fire under the financial companies. They are now boosting lending in the auto industry after seeing a sales increase of $12.8 million last year, the second consecutive annual increase of at least 10 percent. Another factor in the lending trend is that the Federal Reserve has stayed committed to holding short-term rates at near zero all the way through at least 2014.

Experian’s report also noted that buyers whose credit is nonprime or even worse accounted for 23% of the new car financing market in the fourth quarter. This is a huge change considering that just the prior year, it was less than 20 percent.

Now is the best time to get the car you’ve been dreaming of. Approved Loan Store wants to help make that dream a reality. Contact us today at 877-217-2217 or log on to the website to apply for a car loan. Be sure to also follow Approved Loan Store on Facebook so that you can see all the latest news and blog tips.

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Insurance Purchasing Tips

Choosing the right auto insurance is a very important thing to keep in mind for anyone purchasing a car. The problem, however, is it’s easy to get lost when figuring out which is the best. Luckily, the Insurance Information Institute has released a guideline to make sure that people get the best insurance at the best possible rate.

Make sure to keep in mind that an insurance premium is based on a multitude of factors. It can include everything from your driving record, how much you use your car, where you keep it parked, and your credit score. This is why it is important to get educated about all your choices, and the best way to do this is by asking questions.

Depending on the company you go with, your prices and coverage can vary greatly. In order to make sure you’re getting the best, the article recommends that you get at least three different quotes. Call the insurance agents or companies directly and compile information from the internet. Don’t shop by price alone but rather look at an insurance company with a good reputation. Get advice and recommendations from family and friends. Also, there is a state insurance department website that you can peruse.

Premiums are based on the price of the vehicle. This includes the cost it takes to repair it, and factors like the safety record are taken into account. It’s worth doing some research into a car to see how these might impact the insurance cost on buying the car. Know just how likely this car is to get stolen before going in for a purchase, because the insurance premium looks at these factors.

Increasing your deductible is another recommendation. A deductible is the amount you pay before the insurance policy kicks in. If you get a high deductible for your coverage, this can have an impact on lowering the cost of your premium. Just make sure that you have the money in case you have to pay a claim before asking for an increase. You don’t want to be unprepared.

The final tip is to make sure you ask for any and all insurance discounts. The insurance companies have a large range of different discounts they can offer drivers. Make sure that you are vocal in your questions to the insurance agent. Ask them about items such as anti-theft devices, multiple policies with the same company, drivers education courses, good credit record, and higher deductibles. These are just a few options, so make sure to ask.

Some leg work is necessary, but really, when buying a car, you should always have everything ready in advance. This will help to make sure that when you do go into the dealership, you’ll be walking out with insurance that’s best for you. Go online to Approved Loan Store’s website and apply to get a car loan to drive away in your dream car today. Follow ALS on Facebook as well so you can stay up to date on every blog and deal!

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Budgeting to Afford an Auto Loan

One of the biggest question that people have when they go to get an auto loan is what can they afford with financing a car. That’s a question that Approved Loan Store is striving to answer, and Loans.org has some great first steps towards planning a car purchase.

People need to understand just where their monthly income should go to. An auto loan is something that can cause a great deal of financial stress and should be prepared for. Following the steps the article lays out, it can make a world of difference in making sure that a family can repay an auto loan without breaking the bank.

The budget plan was proposed by Liz Weston, a finance writer. It’s the 50/30/20 budgeting plan. What this breaks down to is that the person following the plan needs to divide one’s needs, wants, and savings in different allotments. Needs should take up no more than 50 percent of one’s after-tax income, wants are 30 percent, and the 20 percent that remains should be saved.

Breaking it down even further, the plan calls to make sure that needs are actual needs. Needs do not include those nice new shoes but rather things that are necessary for survival. Those items include housing and food, and, in the case of this blog, transportation. One of the items in needed that the article recommends possibly cutting back on is a cell phone plan if the basic plan can help keep costs down. Other ways to cut back on needs is to stop eating out for dinner and instead opt for home-cooked, and generally healthier, meals.

Wants include things such as movies, video games, clothing, or anything else that goes beyond the basic. In order to accomplish this, you can cut back again on a cell phone plan. You can also avoid the new season’s style and instead save money for later. That’s where the final 20 comes in, putting aside 20 percent every month in savings. This will go a long way in giving comfort of mind. The recent economic collapse put everyone on edge, creating an atmosphere of fear of sudden and long term job loss. If you’re properly prepared for such life altering events, then you can be in a better situation should the worst case arise.

Bringing it back to auto loans, this budgeting plan can go a long way in making sure that anyone is comfortable with paying back an auto loan. By breaking down just what in someone’s life is necessary versus a want and putting a set sum aside for saving, it puts the person in control of their financing. Following this budgeting can help borrowers assure themselves that they can make the loan payments and still have enough set aside in case something happens.

Set your budget and head on over to Approved Loan Store to sign up today to get a car loan. Don’t forget to also follow Approved Loan Store on Facebook in order to stay up to date on any future budgeting tips.

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Debunking Common Credit Score Myths

What’s your credit score? This is a question that defines so much in our lives. It determines loan rates, the ability to refinancing a home, credit card rates, and the list goes on. Your credit score is a magic number that’s kept in secret by the major credit score agencies because for the longest time, FICO didn’t want consumer to even know that these scores were out there. They sure weren’t even going to let people know what exactly went into giving a score. It wasn’t until early in 2000 that the curtain was pulled back a little and customers were given a chance to see their FICO scores. This was due to tremendous pressure from both politicians and consumer advocates. Now people have a better understanding of what they can do to improve their credit scores to give them a better shot at the best rates. That knowledge, however, is a double sided coin that has lead to many myths being passed along to improve scores.

One such myth is as long as you handle finance properly, then the credit score will just take care of itself. The problem with this thinking is that a credit score doesn’t simply examine your financing health. Credit scores tell lenders how likely you’ll default based on how you handle credit which is why having no credit can be just as bad as poor credit.

Another rampant myth in credit scores is that to have a good score you must carry a credit card balance. What’s being reported to the agencies is the balance from your last statement, not a leftover from when you got the statement and paid it. This myth can cause people to carry debt that is completely unnecessary under the belief that it affects a credit score in a positive manner. This is not true, and you should pay your bills in full anyway just to avoid interest.

Next myth that needs debunking is that you should never close an account if if can be helped. This falsehood exists because people are under the impression that closing unused accounts can help scores. That just isn’t true. Having unused or available credit can actually be seen as a low-risk factor viewed favorably by FICO. Closing a credit card removes available credit. Just shutting down unused accounts will not instantly improve your score.

These are just a few of many of the credit myths that have managed to weave their way into society. It’s hard to blame anyone seeing as how the credit agencies keep everything about the process so secretive. For anyone looking to finance a car, it’s important to have a grasp on your credit score. That being said, Approved Loan Store is looking to work with you, should you have excellent or bad credit. Go to the website today and check out how they can help you find the car or truck of your choice at an affordable price with the best rates. Follow on Facebook as well so you can view all future tips and news.

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Economic Improvement Spurs Auto Affordability

Everyday seems to bring with it optimistic news of the auto industry. Whether its seeing sales skyrocket in the previous year or in the month of January, or seeing more people finally able to start paying off their loans, or just people who have been hurting due to poor credit scores finally seeing financing extended to them, it seems that the bad times are really starting to go away. Hope is finally starting to break through a bleak economic climate.

To further this good news, Autofinancenews.net is reporting that Comcerica Bank has revealed the best auto affordability reading since the third quarter of 2009. According to the article, the purchase and financing of an average-priced new vehicle took 23.1 weeks of median family income in the fourth quarter of 2011. Consumers, on average, were down 4% from last year having spent $1,050 less on new cars in the fourth quarter.

“Household credit conditions are also improving, as shown by the low household financial obligations ratio, which measures total debt payments as a percentage of income. When you put those two concepts together, it means that households are increasingly willing to take on a reasonable amount of debt by purchasing an attractively priced automobile,” says Robert Dye, Chief Economist of Comerica Bank in Dallas. “Those favorable trends are allowing consumers to feel more confident about unleashing their pent-up demand for automobiles. Favorable affordability and improved job growth mean more upside potential for auto sales in early 2012.”

Good news is such a blessing these days, especially after watching the entire economy collapse and take so much with it. Things are really starting to rebound and people are really seeing that. Sales figures with the auto industry point to people finally going out to purchase a vehicle. This is the best time to take advantage of such an optimistic time. Go to Approved Loan Store’s website to see how you can sign up today! You can also follow ALS on Facebook, that way you can stay up to date on all the latest news.

Low Income Drivers Struggling to Find Reasonable Auto Insurance

Car Insurance is something that many drivers struggle with. By law, they are required to have it for their cars. The problem is that many have issues with even affording it. Due to things, such as credit problems, many are not getting a fair chance to get reasonable insurance.

The Consumer Federation Of America recently released a study called, “Lower Income Households and the Auto Insurance Marketplace: Challenges and Opportunities.” The study shows some of the ways that low income consumer are being denied economic opportunities in the auto insurance market. A couple of the major auto insurers are even refusing to sell policies to low income customers. The ones that do sell them are often at much higher premiums and give much less coverage.

The startling number the study reveals is that a third of low income drivers don’t even have insurance. That means that low income families have an incredibly hard, almost impossible, time getting qualified for an auto loan. The Consumer Federation of America is wanting state regulators to lead a charge in getting something done. They are asking for low income families to be able to get access to insurances by lowering minimum liability coverage requirements, by creating low income purchasing programs, and starting a program that will reward safe drivers.

Buyers shouldn’t have to be concerned if the insurance deal they are getting is for the best. They should be concerned about getting the car they want. Approved Loan Store is looking to make sure that buyers get the best deal for a car loan. Check it out today on their website and be sure to follow ALS on Facebook to stay up to date on all the latest news and offerings.

Car Loan Repayment Sees Improvement

New analysis from Equifax on consumer debt has found some interesting results. What they found was that consumers were more likely in 2011 to make their payments on time on auto loans than any other year. The delinquency rates of 60 days or more fell not only for auto finance companies but for banks as well. To be exact, the auto finance companies saw a decrease in 19 percent while the auto banking sector’s drop was 23 percent. An even more remarkable figure to go with that report is that more than 30 billion dollars in new auto loans were taken out in October 2011.

Auto loans weren’t the only place in the credit industry that was seeing consumers paying back their loans. Bank credit card lending was given its greatest year over year improvement with a 29 percent decrease in 60 day plus delinquency. Retail credit cards had about a 15 percent improvement.

Michael Koukounas, senior vice president of analytics for Equifax, had this to say about the news, “The improvement in 2011 delinquency data, paired with consistent growth in loan origination in multiple sectors, provides truly positive momentum for the industry as we begin a new year.” With the recent job numbers and unemployment rate going down to 8.3 percent, there’s hope that this trend continues into 2012. Consumer debt itself is down from the 12.4 trillion in 2008 to about 11.1 trillion.

If you’re looking to get a car loan, then Approved Loan Store is the place to start. It’s easy to find the best available loans. Just click on the Approved Car Loan tab on the main website and get the process started. Don’t forget to like ALS on Facebook so you can stay up to date on all the news and deals being offered.

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Auto Lenders Optimistic About Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau has been out of the news as of late. With President Obama finally selecting someone to lead it, it’s now in its infancy and about to embark on what it was created to do. To this extent, Autonews.com reports that members of the CFPB have begun to meet with auto loan traders. With so much mystery behind just what the bureau intends to do, the members of the American Financial Services Associations who were involved in the private meetings walked away with optimism about what was going to happen next.

AFSA CEO Chris Stinebert was impressed by the agencies want to make measures based entirely on data rather than knee jerk reactions. “There are some good people at the CFPB — honest, dedicated, hardworking people with good experience and background. We have been very encouraged in our dealings with them. They are not shooting from the hip. They state repeatedly they want to base decisions going on facts — not on anecdotes, but on data, on empirical research. If that is true, then we have very limited concerns.”

CFPB Assistant Director Richard Hackett echoed this approach to regulations they would pass. “Our decisions on use of regulatory tools, whether enforcement, supervision, or otherwise, will be informed by data from stakeholders, including industry.”

According to the article, auto dealers will be exempt from the bureau with the exception of buy here, pay-here stores. That being said, it’ll be impossible for dealers not to be affected by what happens to the auto lenders. That leaves many of the lenders still anxious to see what happens next. Bill Himpler, the AFSA executive vice presidents said, “Despite what we hear from the CFPB staff, what we hear from the field I don’t think really lowers our anxiety level.”

Approved Loan Store is looking to make the loan process easy for you. For more information on getting a car loan for yourself, visit the Approved Loan Store to start the process and look into getting the car you want. Be sure to also follow on Facebook so you can stay up to date on any offers and all the latest financial news.

Financing Not an Issue with Buyers

People are more concerned about how their car looks than finding the financing for it according to a survey that was put out by J.D Power and Associates given to analyze why people buy certain cars. The findings they turned up paint quite the interesting picture of car buyers.

In a break down of the results, the reason that scored the highest for not buying a certain car was the look and/or design. The next reason was the price of the vehicle. Other notable reasons were online ratings, lack of reliability, and the interior design. The amazing thing about the results, however, is that financing didn’t rank highly on the list. Barely one percent of survey subjects stated that they wouldn’t purchase because of financing issues. That means that finding financing was less of a concern than the vehicle’s gas mileage or design choices.

I think the survey results say a lot, that even in such economic straits, people still care more about the car’s reputation or how cool it looks on the road before worrying about financing. This survey shows that people still care that their money is going towards quality, wanting only the best looks and gas mileage. They just seemed too stressed out about finding a loan to help them achieve that dream car that they want.

Approved Loan Store is a company dedicated to ensuring that people don’t have to worry about finding that funding, regardless of credit. Approved Loan Store is the business that wants your concern to be about which car you want to drive away in, not about wondering if you’ll get the loan for it. Make sure to also follow on Facebook so you can see all the offers and start dreaming about the car you want without the hassle or worry.

Easier Financing Offsets Rising Used Car Prices

Some good news and bad news for car buyers today. Autofinancial.net is reporting that 2012 is expected to see an increase in 2012, making it the third straight years of the price raising. In his speech on February 4th, Jonathan Banks, the executive automotive analyst with the National Automobile Dealers Association, said that the increase will be because of an increase in demand and decrease in the supply of used cars. Compact cars will be seeing a rise of 2.7 percent while SUV’s are expected to see only a 1.4 percent increase. That translates to used prices going up by 1.8 percent over the course of the year.

That’s the bad news, the good news is that even though prices are rising, there are other factors to help buyers. Credit loosening is making it so that people with problems on their credit can get a loan. Another factor is that trade-ins are going to be getting more leverage. “The slowing rate of depreciation on used vehicles over the course of the year will lead to even stronger trade-in values and enhance the equity that a consumer has in their vehicle,” Banks said.

Approved Loan Store is here to make sure that you can get the financing you need to drive away in the car you want. You can go online to learn more and apply for a loan here. Make sure to also follow on Facebook so you can stay up to date on all the latest news and offers.

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