360 Finance Car Loans

The residual value of a car is how much it will be worth at the end of a lease period. Finance companies need to calculate a car’s residual value before they can know how much to charge during the lease period. For example, if a financier calculates that a $30,000 car will have a residual value of $16,000 at the end of a five-year lease, the financier will know that it must charge $14,000 to break even on the lease – and more to make a profit.

Finance brokers help borrowers organise car loans with lenders – that is, they act as middlemen between borrowers and lenders. While lenders will only recommend their own products, finance brokers recommend products from a range of lenders. Finance brokers need to be accredited with a lender to do business with that lender; a typical broker will be accredited with between 10 and 30 lenders. Finance brokers generally don’t charge consumers; instead, they receive commission payments from lenders.

Vehicle finance, also known as a car loan, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Vehicle finance can be used for both new and used vehicles.

Yes, as long as you meet basic criteria set out by lenders you are eligible for car finance. Your interest rate will be determined based on your financial history which can be found in your credit report, your income and any property you may own.

Comparing car loans for pensioners before you settle on one is important though, if you want to secure the best possible loan for your circumstances.

Single mothers can sometimes find that due to their circumstances the bigger banks can be less inclined to lend to them, but there are smaller companies and specialist lenders who can be willing to provide loans to people in a range of circumstances.

Single mothers could benefit from getting in touch with a car finance broker, as a broker is likely to have knowledge and access to options that are suited to their needs.

Advantages to using a broker:

• Finance brokers often don’t charge for their services as they work on a commission basis from lenders.
• Brokers will have industry knowledge and contacts within lending companies and is therefore more likely to be able to find the best deal for your circumstances.
• Brokers are qualified professionals who are licensed under the National Consumer Credit Protection Act so have an obligation to follow responsible lending practices and to work in your best interests.

Find car finance through a broker.

If you have been previously denied for a car loan, it doesn’t necessarily mean that you will be denied from the next application you make. Bear in mind that applications, or “hard enquiries” remain on your credit report for 2 years, but only affect your credit score for 1.

There are some steps that you should go through however before you reapply:

• Check your loan denial letter, gauge the reason(s) for your rejection. These may be:

• Your credit score is too low

• Your income was too low

• Your debt-to-income ratio was too high

• If you were unemployed or had only been in your current employment a short time

• Review your credit report

• Check for errors and file a dispute if there are any

• Make steps to improve your credit

• Review your providers and select a lender that advertises for your credentials

Try not to over-shoot your application based on a low advertised interest rate. Only apply for loans you can realistically be accepted for.

Yes, having bad credit does not necessarily mean that you will be denied car finance. You can find a number of specialist lenders for bad credit car finance. Compare bad credit car loans before you buy though, because not all car loans are unlike and having bad credit may mean you are more likely to be hit with higher fees and interest rates.

Single mothers can sometimes find that due to their circumstances the bigger banks can be less inclined to lend to them, but there are smaller companies and specialist lenders who can be willing to provide loans to people in a range of circumstances.

Single mothers could benefit from getting in touch with a car finance broker, as a broker is likely to have knowledge and access to options that are suited to their needs.

Advantages to using a broker:

• Finance brokers often don’t charge for their services as they work on a commission basis from lenders.
• Brokers will have industry knowledge and contacts within lending companies and is therefore more likely to be able to find the best deal for your circumstances.
• Brokers are qualified professionals who are licensed under the National Consumer Credit Protection Act so have an obligation to follow responsible lending practices and to work in your best interests.

There are companies that claim to offer no credit check car loans. However, you may find that companies that offer no credit check car loans have high fees and high interest rates. You might be better off finding a specialist lender who will look at your credit history and income, who will decide whether or not you are able to responsibility pay back the loan. Alternatively, you could contact a car finance broker.