How Bad Is Your Credit?

Generally, there are four factors to be considered in assessing a person’s credit for an auto loan or lease:
Credit bureau report which includes bankruptcies and proposals
Your credit bureau will give a comprehensive summation of all your credit activities: auto loans, credit cards, lines, and loans, even credit inquiries. It will also present data on your loan registrations, judgments, and collections. This will be the basis in determining your creditworthiness.
Bankruptcies and proposals are reported to the credit bureau seven years after discharge (in Canada). When these credits and bankruptcies are dealt with accordingly, it would be affirmative since it would be reflected as your credit-handling capacity.
You can request a copy of it through a reliable reporting agency for a fee.
Credit score
There are several credit scoring methods, the most common of which is the Fico score model. The score is derived primarily from your credit history and will determine your credit worthiness.
This will include your past credit records like the number and timing of credit inquiries, timeliness of payments, financial agreements made, and whether balances are above approved levels. Do bear in mind that the better the credit, the higher the score.
Debt service ratio
This involves the ratio of your monthly credit obligations and monthly income. These credit obligations consist credit card payables, mortgage or rent payments, and loan payments.
Job and residence stability
The longer you stayed in your company, the better your chances of getting a car loan. The most important is the main source of income. The secondary or part time employment doesn’t hold much weight compared to the main source. The longer one stayed in a residence the more likely you will be considered for a loan since you are less of a flight risk.
Availability of Cosigners/Co-applicants
Having any of your loved ones or any relative who could be the secondary driver of the car can be a
co-applicant or cosigner. They can surely give plus points for attaining that loan.

Source: http://www.ezeecredit.com

Car Trivia: What Is, What Isn’t?

When did the car windshield wipers became a standard equipment for cars?
Answer: 1923
Who was the mechanic, race car driver, and the race car team owner whose cars dominated many races after World War II?
Answer: Enzo Ferrari
Whose he that created motorcycles with a meager $3,300 after the Second World War?
Answer: Soichiro Honda
When was the radio first offered as a standard car accessory?
Answer: 1923
How many cars registered in the United States during the fateful year of 1913?
Answer: more than 1 million
What was the car first offered for sale during 1887?
Answer: Benz
What was offered as standard car equipment during 1963?
Answer: seat belt
When was the first power windows introduced?
Answer: 1946
Who first introduced the first electric trunk release?
Answer: Ford

Source: http://www.anythingaboutcars.com

Things to Ponder Before You Lease That Car

Length of Contract: Most car leases are 18, 24, 36, or 48 months in length.
Negotiate: Most dealerships buy cars in big volumes, and they get a good deal because of that. It’s not that hard for them to pass on that benefit to their customers. All it takes is a good negotiation.
Residual Value: A good residual value at the end of the contract will bring down the monthly installment. The residual value directly affects your monthly payment.
Early Termination Fees: Most car leasing agreements will demand large amount for penalties when a lessee terminates the contract.
Excess Mileage Fees: Try to measure up your driving mileage to the number that the dealership demands from you for the lease. If you’re that much of a driver and you think you’ll go beyond that number then check for another car.
Wear and Tear: Have a daily checkup of your car to monitor its wear and tear status. Bear in mind that in the end you would have to pay for any excess of that.
Car Modifications: If you’re intending to make your car an art car entry, take note that you have to pay for all expenses to revert the car back to its original make.

Sources:
http://www.carleasinguk.com/
http://www.edmunds.com

Short-term Lease: Anyone?

When you need to fly away to do business in another country for the next six years and yet you want to impress your soon-to-be-wife, you can avail of your dream car for a car lease type called “short-term lease.”

The most common option for car dealers would be a car rental. It is advisable to avail of a prolonged car rental only when the duration of use would be from one day to several months. But when you want to use it from six to twenty-four months, it’s more practical to have the short-term lease.

The short-term car lease works just like the Swapalease wherein the concept runs in an “assumption” basis. This simply means when a lessee would want to get off the lease in the middle of the contract, the next lessee would finish the rest of the car lease and he/she is responsible for the car as regards the mileage, wear and tear, and other concerns, particularly for the excess of such.

To find dealerships or banks or any other financial institutions that can help you with this concern, it’s a good strategy to check online sources but you need to double-check each of them by calling. Now your chance to impress is not spoiled by time away from her.

Source: http://www.leaseguide.com

To Buy or Not to Buy

Car leasing has become so popular an option that most car owners would have a lot to know about it. Entrepreneurs and car lovers both seized the opportunity to earn from its growing popularity.
Hence from coming up with a variety of lease types to the skyrocketing number of leasing companies, customers are not to worry about choices; what they should worry about is making the right choice.
Let’s say you have a concern regarding the calculation of your lease fees: the residual value, the monthly payments, how much insurance should you be getting, etc. It would come as a surprise that there’s actually an automatic lease calculator. This may appear superfluous, but it can be of some convenience for those who are not into numbers.
This tool can save you time and a head-splitting headache doing the math for the following:
Capitalized Cost -0 MSRP minus discount
Lease Price- minus $0 down payment
Residual Value-after 24 months
Depreciation Fee- part of lease payment
Lease Fee-part of lease payment
Monthly Payment- without tax
Usage Tax- 0% of 0
Total Amount Payment-what you pay
Among many others in the market, the automatic lease payment calculator can be not as exacting as you are when you are adamant of getting the right numbers in a lease. So to ensure that you are not misled by a button, double-checking is a necessity.
In the end, you are given the chance to risk accuracy in exchange for convenience. But then this goes for a lot of choices in the world.

Source:
http://www.bankrate.com