Since the early 2000s, zero percent annual percentage rate auto loans have been an important part of the car-buying landscape. Whether the vehicles were subcompact cars or heavy-duty trucks, zero percent APR offers seemed to be everywhere, particularly around big holiday sale weekends and the fall car-clearance season. Interest-free offers usually require shoppers to have a credit score above 700 to qualify. But if they can tick that box, they can net some significant savings: A buyer who gets a zero percent interest rate on a $25,000, 60-month loan would save $3,300 in interest charges, compared to a loan with the average 5 percent APR. Recently, though, zero percent loan offers haven’t been quite as easy to find. In August 2017, for example, 14.6 percent of car deals were financed with zero percent loans, according to Edmunds analysts. This year, however, that number dropped to 7.4 percent. Notably, Nissan and Toyota pulled sharply away from zero percent financing in August, … [Read more...] about Rising interest rates mean fewer no-interest auto loans. Here’s how to save money.
Suntrust auto loan
Rising interest rates mean fewer no-interest auto loans
Since the early 2000s, zero percent annual percentage rate auto loans have been an important part of the car-buying landscape. Whether the vehicles were subcompact cars or heavy-duty trucks, zero percent APR offers seemed to be everywhere, particularly around big holiday sale weekends and the fall car-clearance season. Interest-free offers usually require shoppers to have a credit score above 700 to qualify. But if they can tick that box, they can net some significant savings: A buyer who gets a zero percent interest rate on a $25,000, 60-month loan would save $3,300 in interest charges, compared to a loan with the average 5 percent APR. Recently, though, zero percent loan offers haven't been quite as easy to find. In August 2017, for example, 14.6 percent of car deals were financed with zero percent loans, according to Edmunds analysts. This year, however, that number dropped to 7.4 percent. Notably, Nissan and Toyota pulled sharply away from zero percent financing in August, which … [Read more...] about Rising interest rates mean fewer no-interest auto loans
Auto loans while in bankruptcy
When filing for bankruptcy and making a fresh financial start, a car purchase is often part of the plans. Trustees and lenders recognize this and many people are able to get a car loan while in bankruptcy, or shortly after, depending on the type of bankruptcy for which they’re filing. Car loans and Chapter 7 bankruptcy Most likely you’ll be filing for Chapter 7 or Chapter 13 personal bankruptcy. Under Chapter 7, the debtor’s non-exempt assets are liquidated to pay creditors. The process normally takes four to six months from filing until debts are erased and the bankruptcy discharged, during which time there will be a 341 hearing with creditors about your case. While it may be possible to get a car loan while in Chapter 7 bankruptcy, you’ll generally have a better chance of approval, and potentially better terms, by applying after the bankruptcy has been discharged. When you’re ready to apply, you’ll want to find a lender that will accept … [Read more...] about Auto loans while in bankruptcy
Riding with the repo man: as auto loan defaults rise, car repossessions skyrocket
CLEVELAND - The computer in the spotter car shouted "Hide!" and repo agent Derek Lewis knew that meant to keep driving like nothing happened. He'd just found another wanted vehicle. He was about to ruin someone's day. Best not to draw attention.It helped that he wasn't in a tow truck, the stereotypical image of a repo man. Lewis drove a beat-up Ford Crown Victoria sedan. It had four small cameras mounted on the trunk and a laptop bolted to the dash. The high-speed cameras captured every passing license plate. The computer contained a growing list of hundreds of thousands of vehicles with seriously late loans. The system could spot a repossession in an instant. Even better, it could keep tabs on a car long before the loan went bad.Now, Lewis had a live hit in a parking lot. He glanced at his laptop. The plate matched a blue 2006 BMW 325xi. He twisted in his seat. "It's right there," he said.Technology has made the repo man ruthlessly efficient, allowing this familiar angel of financial … [Read more...] about Riding with the repo man: as auto loan defaults rise, car repossessions skyrocket
There’s More People Taking Out 96-Month Auto Loans Now
Last month, we briefly highlighted that auto loans with terms lasting as long as 84 months are becoming more common, thanks to a number of prevailing factors. Turns out, I should’ve dug deeper: as the Financial Times notes, we’re witnessing an uptick in new car buyers taking on 96 month loans. Eight years, folks. The Financial Times piece highlights a lot of the figures we’ve noted in recent stories: record-setting loan amounts outstanding ($1.1 trillion, now $1.2 trillion), people paying record amounts for a new car ($27,430), a record number of people 90 days or more behind on their auto loan payment (6.3 million). And here’s the upshot, per the FT (emphasis mine): Lenders in America’s $1.2tn car-loan market are extending terms for as long as eight years, meaning they face a greater risk of defaults and meagre recovery values. And this: The average term on new car loans stood at 67 months — or five and a half years — at the end of 2017, … [Read more...] about There’s More People Taking Out 96-Month Auto Loans Now