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Financing Articles

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Automakers Offer Financial Help For Fire and Flood Victims
   Published September 2, 2020
Itís been a tough year financially for a lot of folks. First came the economic impact of COVID, which is still ongoing, and add to that, many people are now also dealing with natural disasters in parts of the country, like hurricanes and fires.

Toyota Financial and Ford Credit are stepping in to provide some payment relief to customers impacted by Hurricanes Laura and Isaias, as well as those impacted by the wildfires in California and the derecho which struck the Midwest  Read More
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Special Report: The Used Car Bubble Is Bursting
   Published August 27, 2020
Iíve talked on the Car Pro Show for eight weeks about used car prices being sky high. I monitor the Manheim Dallas auction weekly so I can report to my listeners up-to-date information about trade values. I have also warned everyone that this bubble would burst and prices would drop hard and fast.

Just last Saturday I talked about every vehicle, especially trucks and SUVs, bringing way over MMR (Manheim Market Report). MMR is the gauge car dealers  Read More
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Car Pro Advice: Car Leases and Down Payments
   Published August 20, 2020
Something I said on the Car Pro Show recently spurred a lot of questions about putting money down on leases. I soon realized this was an area of confusion for many people.

If you do a conventional purchase of an automobile, I recommend putting as much of a down payment or trade equity as you can. This lowers the monthly payment and cuts down on interest charges. However, the scenario is very different with a lease.

While cash or trade equity  Read More
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Commentary: Sorry Dave Ramsey - You Blew This One
   Published August 11, 2020
I recently saw this question posed to money-guru and radio host Dave Ramsey, who I listen to occasionally and we, in fact, are on some of the same radio stations across America:

Dear Dave,

Could you explain why buying a new car at 0% interest isnít a good idea?
Raina

Dear Raina,

The only way you have a chance of getting 0% interest on a new car is if you have perfect credit and pay full MSRP (manufacturerís suggested retail  Read More
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How To Decide Whether to Buy or Lease Your Next Vehicle
   Published August 6, 2020
We had a listener call the show who was skittish about leasing, she had never done it before. We get this call at least weekly. Here are some things to think about when considering whether to buy or lease your next vehicle.

1. Consider How Much You Drive
When I get the question of lease versus buy, my first question back is always how many miles per year do you drive? Some people, especially third party leasing companies, will disagree with me on this; however, I maintain that if you drive  Read More
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How to Navigate the Car Dealership Finance Office
   Published July 8, 2020
Many of the questions I get on the air have to do auto financing. This is an area people who have bought cars before worry about. By the time it is time to sign on the dotted line, you may have been at a dealership for a long time, you are tired, and you are just ready to go home with your new vehicle.

Here are some things to keep in mind:

Finance Departments
Beware: Like every profession, there are good dealers and bad dealers. Many people are taken advantage of in the finance department of dealerships. Over the years, I have seen it all, high-pressure tactics to purchase extended warranties, credit life, and disability insurance, GAP insurance, etc. I have also witnessed downright fraud. Bear in mind, most finance managers are paid on commission, based on what they sell.  Read More
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New "Ford Promise" Program Allows Eligible Buyers To Return Vehicle Due to Job Loss
   Published June 30, 2020
A lot of people are worried about their financial future right now in the uncertain times forced upon us by the COVID-19 pandemic that refuses to loosen its grip. That can make the proposition of buying a vehicle, either new or used, even more daunting. So Ford is providing some peace of mind with its new ďFord PromiseĒ program. It allows eligible buyers who purchase a 2019-2021 model-year new or used vehicle through Ford Credit to return the vehicle if they lose their jobs within  Read More
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Negative Equity Hits All-Time High in April
   Published May 20, 2020
A record number of consumers are upside down on their car loans, according to new research released by Edmunds. In a press release, Edmunds says its data shows that in April an all-time record share of 44% of new vehicle sales with a trade-in had negative equity, compared to 40% in March and 33% in April of 2019. The average amount owed on upside-down loans also climbed to an all-time record high of $5,571 in April, compared to $5,405 in March and $5,036 in  Read More
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Mazda Hires Toyota Financial As Finance Partner
   Published April 8, 2020
Toyota Motor Credit Corporation is launching a private label business with Mazda North American Operations, its first-ever client, through the creation of Mazda Financial Services (MFS). Mazda Financial Services began operations April 1 and offers a suite of automotive finance, lease, wholesale, dealer banking, and insurance protection products and services to Mazda dealers and customers in the U.S.

ďWeíre honored that MNAO selected us as their financial partner  Read More
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How To Get Help Making Car Payments During Coronavirus
   Published March 18, 2020
As the country battles the spread of COVID-19 and the resulting financial crisis now facing many families, automakers are tackling two separate issues. One, helping customers who may be severely impacted by COVID-19 and find themselves unable to make payments. To that end, automakers are offering to discuss payment options and help for current owners.

At the same time, automakers know they need to do something to bolster sales during this uncertain  Read More
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What To Do When You Canít Afford Your Car Payments
   Published February 26, 2020
I hear from listeners all the time who can no longer afford their car payments. Unfortunately, by the time they reach out to me, it is often too late. Here's what to do if it happens to you.  Read More
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The Dangers Of Co-Signing An Auto Loan
   Published February 24, 2020
By nature, we are a giving group of people. We really want to help people when they are down on their luck; it is what we do as Americans, right? So you have a friend or relative who asks you to ďjust co-signĒ a car loan so he or she can get around, take the kids to daycare, and get to work. It sounds easy and you believe he or she will do the right thing. Sadly, too often, these scenarios play out with a loss of money and a loss of the relationship.

Of course, there are exceptions. My  Read More
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FTC Cracks Down On Credit Repair Services
   Published January 29, 2020
The operators of a bogus credit repair scheme are banned from the credit repair business and subject to a wide array of other requirements under settlement terms with the Federal Trade Commission.

In its press release the FTC states: the settlements relate to an FTC complaint filed in June 2019 alleging that the defendants targeted consumers with false promises of substantially improving consumersí credit scores by claiming to remove all  Read More
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Will Paying Cash Save You Money at the Car Dealership?
   Published January 2, 2020
Paying Cash vs Financing
You read that right, you can often get a better price by financing the car with the dealership from which you are purchasing.

Thinking back to my years in the retail auto industry, I ran across a lot of people who wanted to throw around the fact that they were paying cash, and were determined that they should get some sort of special deal because of that. The truth was, as a car dealer, I didnít really care how we got our money. Whether cash, credit union, bank or  Read More
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What To Know About Pull-Ahead Lease Offers
   Published September 11, 2019
Pull-Ahead Lease Programs
Over the last few years, these programs have become very popular with automakers, and are just another form of an incentive. It can vary, but generally if you are currently in a lease, the ďpull-aheadĒ will allow you to skip up to your last three payments if you lease another vehicle of the same brand. This is particularly good for people who are on track to go over their mileage allowance. Essentially, you are moving your lease end date up by 90 days.

Are their  Read More
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How to Buy a Car with a Pre Approved Loan
   Published July 25, 2019
So youíre ready to buy a new or used car, but you need an auto loan. Should you finance with the dealer or through a third party? How does the application process work? What happens if you canít get pre approved? In this article, we will answer these questions and help prepare you for the auto loan process.

Dealers or Third Party Lender?Typically, you can get a better rate financing through dealerships. They have vested interest in getting your business and moving vehicles off their lots.  Read More
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What To Know About Used Car VS New Car Financing
   Published June 12, 2019
There is one fundamental thing to understand about the difference between new and used car financing. Namly, itís much easier to get new car financing. Not only is it easier, but Car Pro Show host and automotive expert Jerry Reynolds says new car loans also typically come with lower interest rates than offered with used car loans.

Reynolds explains there are two big reasons why this is the case:
First, used cars are a riskier investment for lenders.  Read More
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Car Payments and Avoiding Long-Term Auto Loans
   Published June 10, 2019
It is easy to get caught up in the phenomenon of the new car smell. You saw a car that looked great to you, your old car is tired and you are tired of it. You go to a dealership, take that test drive, and the love affair begins. You are blinded by your favorite color, the great stereo, all the safety features, and the fuel economy. Youíll do whatever it takes to drive home in your dream car. Does that mean youíll sign a 7-year legal, binding contract so you can afford the payments? If so, you  Read More
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Budgeting How Much Car You Can Afford
   Published June 7, 2019
So itís time for your first car, or maybe itís just time to replace the current one and you want to do a better job budgeting for what is one of the biggest purchases youíll make in your lifetime. Either way, youíve come to the right place because what you donít want to ever do is find yourself in a situation where you can no longer afford your car payments. Car Pro Show Host Jerry Reynolds addresses that situation here.

How Much Car Can You Afford?Many financial  Read More
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How Credit Scores Impact Automotive Financing
   Published June 7, 2019
Itís one of the most nerve-wracking parts about the car buying process for many shoppers. Applying for credit. Itís best to do your homework by obtaining your credit score before going to the dealership and filling out the important credit application. The last thing you want is to be surprised with a low score that derails your car-buying plans.

Car Pro Show host Jerry Reynolds explains the dos and doníts of filling out the credit application  Read More