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
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
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
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
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
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.
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
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
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.
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
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
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
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
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
Editorís Note: This article has been updated since its original post in February of 2017.]
We had a perplexed radio show caller last Saturday who found the perfect car at one of the used car only dealerships, but he knew it was overpriced.
I canít help but chuckle to myself when someone tells me he or she bought a vehicle from a place that doesnít negotiate prices and had a wonderful experience. My first thought is always: of course! You can have a wonderful experience at any car lot in Read More
What you pay for car insurance depends on more than just where you live, how old you are and whether you have a clean driving record or not. It also depends heavily on your credit. Most car insurers use parts of your FICO (Fair Issac Corp) credit score as a factor in determining what premiums to charge, except in California, Hawaii or Massachusetts where itís illegal to do so.
FICO Credit ScoresFirst letís looks at the different groups of the FICO score according to Experian. 800-850 = Read More
A Houston caller last week started our call saying he wanted to lease a new F-150 and was going with a famous third party lease company, not affiliated with a dealership. I sort of jumped on him, then apologized, explaining to him that this was not a good idea.
Third-Party Lease CompaniesI enjoy pointing out car dealer ads to my radio listeners that I find false or offensive. For one thing, people seem to enjoy the education, and it gives me satisfaction to think that maybe I can dissuade Read More
Weekly on the Car Pro Show, we have a number of callers who identify themselves as senior citizens who are considering leasing for the first time.
I explain on the air that as we age, our mobility becomes more and more important and, frankly, precious. For many seniors, they have never given much thought to leasing a vehicle; many grew up in a time that this just wasnít done. However, it should be considered, along with the purchase option. It is wise to look at both in-depth to make the Read More
[Editorís note: This article has been updated with new information and for comprehensiveness since its original post December 11, 2017.]
December is the time to snag a bargain on a new car and itís been that way for years. It is easy to get caught up in the hype and incentives and not end up getting a good deal. This year, people seem incredibly surprised at the deals dealers are offering up right now, mainly due to big customer incentives.
As a reminder, you can take all or part of the Read More