If you’re planning to buy a new car, you may be curious about alternative ways of paying for it. One of the most common questions people interested in alternative automotive financing come up with is whether or not they can pay for a car with a credit cards.

While buying a car on a credit card can be convenient and allow you to rack up some serious reward or travel points, it isn’t always the best way to go. Here’s what you need to know about paying for your next ride by swiping your credit card.

Do Car Dealerships Even Accept Credit Cards?

While many car buyers don’t even realize it, the majority of dealerships do have the ability to process payments via credit card. However, there’s usually a limit on how much of your car purchase you’ll be allowed to pay for with your card. In most cases, this limit is around $5,000.

Dealers place these limits on transactions to avoid the high processing fees charged by credit card companies.

While this is the general rule, there are some dealerships out there that will let you put your entire transaction on your card.

If you plan to finance your vehicle purchase with your credit card, it’s important to ask the dealership you’re buying from about its credit policy in advance.

Which Credit Card Should You Use?

When it comes to a purchase as large as a vehicle, not all credit cards are created equal.

If you want to put the entire purchase on your card, your best bet is to use an American Express card with the company’s Express Auto Purchasing Program.

This program is made specifically for financing automotive purchases and increases the likelihood that a dealership will let you use your card for the full price of your new car.

Buyers with premium credit cards such as an American Express Platinum are usually also preferred by dealerships.

Another good option for putting a car on your credit card is to use an automaker-specific card. These cards are offered by large auto manufacturers in conjunction with credit card companies and generally work on a rewards basis.

As users put purchases on the cards by paying for ordinary necessities, they gradually accrue reward points that can be put toward the purchase of a vehicle from a specific brand. This arrangement can be extremely useful for saving money if you already know what your next car purchase will be.

Some of the manufacturers that offer such credit card rewards programs include Nissan, Toyota, Lexus, GM and Chrysler.

If you’re buying a car with a credit card specifically to earn rewards or travel points, you’ll want to use whichever card the dealership will accept that has the most generous reward program.

One card that may be a good option for this purpose is the Chase Sapphire Preferred card, which offers both considerable cash-back and travel point rewards.

Alternatives to Buying a Car With a Credit Card

If you’re not sold on the idea of paying for your next car with a credit card, you may want to explore other alternative financing options that don’t involve taking out an auto loan.

The simplest and likely best of these options is to just pay cash for the car, as this is the only method that absolutely ensures no interest or fees will accumulate.

Alternatively, you may be able to lock in a lower interest rate on borrowed money by taking out a home equity loan or borrowing from the balance in your 401(k) plan.

Be sure to carefully weigh all interest, fees and tax implications of any financing plan you choose, as they will all have an effect on your overall financial well-being.

A final consideration to keep in mind is that taking out an auto loan isn’t necessarily a bad idea in the current low-interest economic climate.

As of July of 2019, interest rates on new car loans averaged around 5 percent, with some variance depending on the term of the loan.

Borrowers with good credit can often access much lower rates, making it quite inexpensive to finance a new car using a traditional auto loan.

LendingClub has a selection of auto loans that offer competitive rates and might well fit your needs much better than a credit card.

Warning: Pay off Your Balance

Before you even consider paying for a car with your credit card, it’s important to have enough money on hand to pay off your balance in full when your bill comes due.

This is because the high interest rates charged by credit card companies will quickly begin to add up if your balance is carried over.

With APRs averaging just under 18 percent, carrying a balance as large as the price of a car could incur thousands of dollars in additional interest costs.

The Argument Against Using a Credit Card

Beyond the problem of high interest rates, using a credit card to buy a car may also pose a risk to your credit score. This is because high credit utilization is a negative factor in calculating your score.

Utilization is expressed as the ratio of your balance to your credit limit.

If your car purchase runs the utilization rate on your card close to 100 percent, you may find your credit score dropping considerably, as credit utilization accounts for a substantial portion of your overall score.

In turn, a lower score can increase the cost of borrowing money in the future and make it more difficult for you to take out subsequent loans. Generally, it’s a good idea not to drive your utilization rate above 30 percent.

In the end, you have to weigh the benefits and risks of buying a car with a credit card for yourself. If you have enough money to pay off the balance when your bill comes due and a high enough credit limit, using your credit card can be a good way to get a good amount of cash-back or travel points.

If, on the other hand, you’d have to carry the sum on your balance or don’t have a credit limit considerably above the price of the car, there are likely better and less expensive ways to finance your purchase.

After You Buy, Get Insured Cheaply

Regardless of whether you pay for a car with a credit card or using an alternative financing approach, you’ll want to ensure your car is fully insured – and ideally at the lowest cost.

If you don’t rack up tons of miles each year – and most people don’t – Metromile may be your best option. It’s a pay-per-mile insurance option so you only pay for what you use. Instead of a fixed bill coming in the door even if your car is sitting in the garage a lot, Metromile can save you a chunk of change during those times.

METROMILE SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 3.5 out of 5 stars	Pricing: Base rate + per-mile rate Lost Car Locator: YES Free Street Cleaning Alerts: YES Get Started via Metromile secure site

The article Can You Pay For A Car With A Credit Card? was originally posted on Investormint

What You Need To Know When Leasing A Car: Car ownership has always been a big deal, particularly in the United States.

You may have gotten your first vehicle when you were in your teens and not been without one since. In recent years, this dynamic has shifted somewhat. For many drivers, leasing a vehicle has become more attractive than buying a new car.

In fact, nearly 1/3 of new-car transactions are now leases. Before choosing to go this route with your next vehicle, you need to understand some basic facts about the process.

You gain a number of benefits from leasing, but you do lose some control.

Auto Leasing Basics

When you lease a car, you agree to make monthly payments, usually for a three-year term. The most common options are 36 months, 48 months and 60 months.

You are then able to leave the lot in a brand new vehicle with the prospect of obtaining another brand new ride after three, four or five years respectively.

While you do not own the vehicle, you will have the same responsibilities that you do when you purchase a car. You will have to pay for maintenance, insurance, licensing, and registration.

At the end of the lease, you may simply turn in your ride and start the process over again. In fact, you may decide that you never want to own a car again.

Not ready to lease? Prefer to buy – lock in great rates with LendingClub Auto Loans.

Benefits Of Leasing A Car

Purchasing a new car is never cheap. Most banks or financing companies want a 10% down payment in order to finance a car.

With today’s new cars often costing $30,000 or more, that means you have to come up with a chunk of change, particularly if you do not have a vehicle to trade in.

On the other hand by choosing a lease, you generally need either no downpayment or a small one. This benefit alone entices a number of people to lease instead of buy.

Years of monthly payments can really beat up your budget.

>> Budget Better with Acorns & Personal Capital

ACORNS SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 4.5 out of 5 stars	Management Fee (up to first $5,000): $1 monthly Management Fee (above $5,000): 0.25% Acorns Deal: Free to college students for up to 4 years Get Started via Acorns secure site

Happily, these payments are also lower when you lease. After all, you are only paying to use the car for a relatively short period of time. You can end up paying hundreds less per month using this method.

Lower maintenance costs are another great advantage. With a three-year lease, the manufacturer’s warranty will take care of any major repairs.

And because the vehicle is new, you should not face many small issues either. You won’t have to worry about the transmission going out or the power steering failing.

If you are a car lover, leasing allows you to experience the latest designs and technology that auto manufacturers offer. Each year’s new models outdo the previous seasons. With leasing, you can always be the cool kid on the block. Plus, you’ll be able to enjoy the latest safety enhancements.

Finally, if you drive to work, you may be able to deduct some of your leasing costs on your taxes. You cannot do that with car loan interest.

Car Leasing Restrictions You Need To Know

Leasing is not the answer for those people who want to be in charge of their own vehicle. Since you don’t own the car, you have to follow the company rules.

If you are a car slob, leasing may not be for you. The dealership will charge you for damage to the auto when you return it. So if you stain or rip the seats, ruin the carpet or otherwise mar the interior or exterior, you may have to pay extra for the damage.

Long-distance drivers may not be a good fit for leasing. The average driver puts about 12,000 miles on their car each year. When you lease, that’s the mileage that you are allowed. If you exceed it, you’ll have to pay for the extra travel.

By the way if you drive less than average, and want to save money on car insurance, check out Metromile, a pay-per-mile car insurance option that can save you a lot compared to traditional auto insurance options.

If you lease, you need to remember that you will not have a trade-in when it’s time to get a new vehicle. That means your second lease may cost you more each month.

Recommendations When Leasing A Car

Here’s what you need to know when leasing a car. Since you are paying for a vehicle’s depreciation when you lease, you can save money by choosing a car that keeps its value.

Vehicles like the Toyota 4Runner are still worth around 70% of their sticker price after three years, so you pay less to lease them each month than you would other models. Other good automakers that have what is called a “high residual value” include Subaru and Porsche.

Experts recommend that you put something down on your lease even if you don’t have to in order to keep your monthly payments down. The amount should be a modest one, however, since you will not own the car.

When you decide to lease, make certain that your contract contains gap insurance. If you are in an accident that truly wrecks the car, you could be in trouble. You will be on the hook for a lot of money if you don’t have insurance that covers the difference between what your regular insurer will pay and the balance of the lease.

Leasing a car may be your best choice, particularly if you like low monthly payments and new technology. You can get a good deal without being a champion bargainer, and you can relax about potential mechanical problems.

Of course, if you want to travel across the country with two dogs and three kids, you may be better off buying a new car or SUV. You need to choose the option that best suits your lifestyle.

Tips When Leasing A Car

When it comes time to sign your lease, keep an eagle eye out for some additional profit-generating items for the dealership.

The Capitalized Cost or “cap cost” is dealership jargon that translates to the agreed upon sales price of the car plus fees. Don’t make the mistake of accepting the MSRP price on a lease – you can and should negotiate it, and when you do your monthly lease amount will be lower.

Depreciation and Residual are two other terms to pay focus on carefully as they significantly affect your payments too. What you want is a car with low depreciation and a high residual value.

Depreciation refers to how much value the car loses over time. Often cars will lose as much as half their value over the timespan of a 36 month lease. But some cars, like Volvos and Subarus typically depreciate less – thanks in part to their high safety ratings.

Target a car with a high residual value because your lease payments will reflect the difference between the Capitalized Cost and the Residual Value. If the car is worth a lot at the end of the lease, the Residual Value will be high and you’ll enjoy lower car payments.

Other profit-making fees to not overlook include the lease acquisition fee, lease return fee or disposition fee, and lease protection.

The lease acquisition fee simply refers to the revenue the dealership earns by arranging the lease.

You can think of the disposition fee as a way for the dealer to lock you into their brand of automobile. If you continue with a new lease at the end of the term, many automakers will waive this fee.

Lease protection is offered by some brands in case you do ding or scratch your car. The terms of this coverage should be inspected carefully so you understand precisely what is and what is not covered.

>> Find Out How To Trade In Your Car

The article What You Need To Know When Leasing A Car was originally posted on Investormint

Since you don’t have a driver’s license, yet, you probably don’ t own a car. That can make it difficult for you to take your road test and get your license. It’s the proverbial chicken and egg problem!

If you need a car for your road test, try the following options. One of them should help you get a vehicle so you can earn your license.

Borrow a Car From a Friend or Family Member

Borrowing a car from a friend or family member is your cheapest option. Hopefully, the person you borrow from won’t make you pay for the car.

Before you borrow someone’s car, though, you need to learn a few things about the vehicle. Any car that you use for a road test must:

• Have proof of insurance.
• Have proof of registration and a license plate.
• Have working safety equipment, including all lights, mirrors, brakes, horns, and seat belts.

Since you only have a learner’s permit, you will also need someone to accompany you to the testing facility.

Ideally, the car’s owner will come with you. If the owner can’t come, talk to your local department of motor vehicles (DMV) to learn about any documents that you need to bring.

>> How To Buy AutoZone Stock?

Rent a Car From a Local Driving School

If you took lessons from a driving instructor, then the driving school may let you rent a car for your road test.

You get a few benefits by renting a vehicle from a local driving school. For instance, you already know that the car:

• Has the right documentation to prove that it’s registered and insured.
• Has working safety features.
• Receives regular maintenance so it can perform well during your road test.

Some driving schools will pick you up from home and drive you to the test site. That way, you don’t have to worry about finding a licensed driver to accompany you.

Other schools will meet you at the test site location.

Either way, you get a reliable car without the inconvenience of finding someone to go with you.

The only downside to renting a car from a local driving school is that you have to pay for the vehicle. Prices can vary considerably from city to city and school to school.

Make sure you contact several driving schools in your area to get the best deal possible. If you took lessons from a school, ask about any student discounts that can help you save money.

Typically, you can expect to spend about $100. Some schools charge a little less. Some charge a lot more.

>> Get The Best Auto Loan Rates

Get a Car From a Rental Company

Rental car companies will happily let you rent a vehicle for the day. There are a few things to think about before you choose this option, though.

First, some rental agencies will not rent to drivers under 25 years old. The companies that will rent to people under 25 tend to charge high underage driver fees. The fee varies depending on the agency you use and the state you live in. You may pay as little as $25. Then again, the company may charge you $100 or more on top of the rental price.

Second, rental agencies won’t give cars to people without licenses. That’s a big obstacle for people trying to graduate from a learner’s permit to a driver’s license.

When you reach out to car rental agencies, ask them if they have related to drivers with learner’s permits. Most of them will refuse to let you rent a vehicle. You might find a company, however, that understands the plight of people trying to pass their road tests. As long as you have a licensed driver with you at all times, they may rent a vehicle to you.

In most cases, renting from a car agency is your most expensive option. It gets even more expensive if you have to pay an underage driver fee. If it’s your only option, though, you will have to pay the higher price to get your license.

>> Get Latest Rates From Direct Auto Insurance

Passing Your Road Test With an Unfamiliar Car

Every car drives a little differently, so you should get some experience driving the car that you plan to use during your road test.

You may discover that the vehicle accelerates quickly. You don’t want to lose points by accidentally driving to fast during your test.

Or you may find that the car has sensitive brakes. Your test moderator won’t enjoy getting thrown around when you slam on the brakes at a stop sign.

You should also spend some time with the car so you can learn how to:

• Adjust the mirrors correctly.
• Turn on the headlights.
• Control the windshield wiper speed.
• Use the turning signals.
• Adjust the seats for a comfortable ride.

You don’t have to own a car to pass your road test. You will, however, need to bring a car that you have experience driving. Once you find the right car, practice so you can pass your road test easily.

Don’t Forget To Get Insured

Perhaps the easiest thing to look past when you’re caught up in the worries of passing your driver’s test is car insurance – but it may be the most important.

If you do happen to bump into something during your road test or have some collision that results in damage to your car or another vehicle or person, you’ll want to make sure any damages are fully covered by a top auto insurance policy.

As a new driver on the road, you may be viewed by auto insurers as more risky than a driver with decades of experience. That risk is usually reflected in a higher premium payment.

Sadly, there’s not a whole lot you can do to lower rates until you’ve built up a good track record of driving safely.

If you’re not sure where to turn, check out LendingClub auto insurance, which offers low APR rates and has a no income requirement.

>> How To Trade In Your Car

>> Is AAA Worth It?

The article How to Get a Car for a Road Test was originally posted on Investormint

LendingClub is a U.S. online lender that is best known for peer-to-peer lending. It was the first marketplace to register its products with the SEC as securities. However, it does have some traditional offerings, including auto loan refinancing.

LendingClub will refinance a wide range of existing auto loans, and it has helped many borrowers lower their monthly car payments and/or lessen their overall obligations.

Online offers are instant and, after accepting an offer, it usually only takes a few days and no more than a few weeks to complete the refinance.

But is it right for you? In this LendingClub auto loans review, you’ll find out everything you need to know.

LendingClub Auto Loans Spotlight

Are LendingClub Auto Loans
Right for You?

Auto loans through LendingClub are an excellent option for those who:

• Want lower monthly car payments
• Are looking to reduce the total cost of vehicle ownership
• Want to avoid hard credit pulls while considering refinancing
• Previously financed through a local dealership
• Have improved credit ratings since the original car loan

You generally do not want to refinance too soon or wait until it is too late, such as when there are less than two years left on the loan.

LendingClub Quick Facts

The lowest APR that LendingClub currently offers is 3.99%. Other online lenders go as low as 3.64%, but these rates are reserved for the most creditworthy borrowers.

While LendingClub does refinance for borrowers with credit scores as low as 510, it has more stringent prerequisites and conditions for all customers with a credit score below 630.

Note: LendingClub does require a hard credit pull in order to finalize auto loan refinancing. However, it only requires a soft credit pull in order to make any initial offers.

Apply for Auto Financing Now >>

How The LendingClub Auto Loans Program Works?

Auto refinancing through LendingClub was introduced in 2016. Although relatively new, it has had an immediate impact in the auto loan world due to offering many borrowers refinancing options that are 1 → 3% lower than rates on their original vehicle loans.

When it comes to car loans, LendingClub is very much focused on refinancing. It does not explicitly offer lending to cover the cost of a new vehicle.

While it is possible to get that kind of funding through LendingClub via a personal loan, that solution would involve peer-to-peer financing.

Unlike most of the other financial products available through LendingClub, auto refinancing is not peer-to-peer. Instead, all refinanced auto loans are made by WebBank, a member of the FDIC.

When you apply for LendingClub auto refinancing, LendingClub will offer you up to two different refinancing options.

Whether you get the second offer depends on credit quality and other factors, such as the value of the particular car being refinanced.

Refinancing Option #1

The first proposal will be a term-match offer, which means that the length of the new loan will match the existing loan.

The offer will, however, have a reduced APR, which is what will enable you to pay less for your vehicle overall or have a lower car payment each month.

Refinancing Option #2

The second proposal, if applicable, will be a term-extension offer. This lets you extend the period of the current loan by up to 12 months.

This means that you can have a lower car payment each month as well as pay less for your vehicle overall.

Soft Pull vs Hard Pull Timeline

LendingClub makes these initial offers to you via a soft credit pull. A soft pull or soft inquiry does not affect your credit score.

Only if you accept an offer does LendingClub require a hard pull in order to finalize the loan. A hard pull or hard inquiry does, in fact, affect your credit score.

The initial offers are instant and available online, and they only require minimal and general personal information.

Accepting an offer requires a more substantial loan application, but the process is still rather simple and fast.

There are no origination fees. Plus, no prepayment penalties apply, however there may be title and state fees depending on where the vehicle is registered.

LendingClub Car Loan Rates

The interest rate is fixed, however advertised interest rates are subject to change.

Although LendingClub accepts a credit score as low as 510, it does expand its restrictions for borrowers with credit scores of 630 and under.

These expanded restrictions are not published, and they are determined on a case-by-case basis.

The best auto refinancing rates at LendingClub are reserved for credit scores of 720 and above.

Apply for Auto Financing Now >>

LendingClub Auto Refinancing Restrictions

LendingClub has certain restrictions that may limit the auto refinancing options offered to you.

These limits are based on information about the individual borrower, including where that person lives, but they also account for the terms of the existing loan and the particular vehicle being financed.

If you are considering refinancing your auto loan through LendingClub, then your first step should be to ensure that you, your vehicle, and your current loan are within the acceptable parameters:

• Eligible vehicle
• Eligible loan terms
• Available in your state
• Maximum vehicle age: 10 years
• Maximum vehicle mileage: 120,000 miles

As for loan terms, your current loan must have been open for at least a month, which commonly means that you will have made at least one payment toward it.

Additionally, the current loan must have at least 24 months remaining, or the refinancing is generally not deemed worthwhile to the lender.

The loan amount must also be for at least $5,000 but not more than $55,000.

In order for auto refinancing to be available to you, the financed vehicle must be eligible.

Eligible vehicles are less than 10 years old, a benchmark based on the model year rather than other factors, such as the initial purchase date.

The vehicle must also have less than 120,000 miles on it and generally be deemed to be in reasonable condition at the time of the refinancing.

Note that certain vehicles are ineligible regardless of age and mileage. These include:

• Motorcycles
• Salvaged vehicles
• Commercial vehicles
• Recreational vehicles

There are also certain makes and models of passenger vehicles that are ineligible.

These include Daewoo, Dodge Neon, Hummer, Isuzu, Oldsmobile, Pontiac, Saturn, Suzuki and Volkswagen diesel vehicles.

Which States Are LendingClub Auto Loans Available?

Auto refinance products from LendingClub are only currently available in 35 states.

The vehicle must have valid registration in an eligible state in order for a loan to be refinanced.

Prior registration in other ineligible states does not matter. Therefore, if you originally financed an auto loan in Colorado, an ineligible state, but have now moved to California or another eligible state and registered the vehicle there, you could refinance.

States that are eligible for LendingClub auto refinancing include: AL, AZ, AR, CA, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MO, MT, NE, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA and WI.

Apply for Auto Financing Now >>

LendingClub Auto Refinancing Alternatives

For consumers seeking to refinance their auto loans through an online lender, LendingClub is not the only option.

Three other prominent options are LightStream, myAutoloan and Clearlane.

LightStream

LightStream is a division of SunTrust Bank focused on online lending.

It offers auto refinancing as well as all types of auto loans, including those for classic cars.

LightStream is also notable for having no limitations when it comes to a car’s make, model, model year and mileage.

It is available in all states and requires a hard pull as well as a 660 credit score.

LightStream is generally considered a superb option for borrowers with top-tier credit but not so much for borrowers in the middle or at the lower tiers.

myAutoloan

myAutoloan focuses on all types of auto loans:

• Loans for new vehicles
• Loans for used vehicles
• Auto refinancing

This lender does cater to lower credit scores of 500+. It also refinances vehicles with up to 125,000 miles.

However, it stipulates a hard pull as well as a $1,100 monthly income. LendingClub, on the other hand, requires no income verification at all.

Clearlane

Clearlane is similar to LendingClub, but it refinances auto loans with amounts as high as $100,000.

It requires borrowers to have higher credit scores of 600+ and an income of at least $1,800 a month.

It is a strong option for borrowers with fair credit but does not compare as favorably to LendingClub for borrowers with strong credit.

Borrowers who live in a state where LendingClub is not available may want to consider Clearlane since it is available in every state but Nevada.

LendingClub Auto Refinancing
Review Summary

Arguably, it has never been easier to refinance an auto loan, and companies like LendingClub are the reason why.

Accessibility is incredible no matter where you live, and competition among lenders is fierce. That competition makes it quite easy to get the best possible annual percentage rate for your credit score.

Is LendingClub the best online auto refinancing option available? The answer to that question for many people will certainly be yes.

The exceptions will generally be consumers at the edges. Borrowers with superb credit quality may not find the best deal available to them at LendingClub.

Borrowers with fair or poor credit may find acceptance and better deals through lenders who specialize in them.

For everyone else, LendingClub is a simple and an effective way to lower your monthly car payment, reduce the overall cost of your car and perhaps even achieve both at the same time.

Apply for Auto Financing Now >>

The article LendingClub Auto Loans Review was originally posted on Investormint

Finova Financial may not be a familiar brand name lender but in just a few years since launching in 2016, the company has raised $155 million from top tier Silicon Valley investors to provide fast, affordable loans based on the equity you own in your car.

If you want a Car Equity Line of Credit (CLOC), Finova can provide instant approval decisions and same day cash funding. Once you are approved for the line of credit or loan, you have access to an online dashboard and can make payments via the web or mobile devices.

With a successful payment history, you can build your credit score and potentially enjoy declining interest rate payments, as well as access to on-demand funding.

Unlike other lenders, Finova claims that it is in the business of building relationships with its clients not transactions but before you apply for a loan you should know how much the auto lender will charge you.

Finova Used Car Financing: Spotlight

FINOVA SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 4 out of 5 stars	Maximum APR: 30% Minimum Loan Term: 12 months Prepayment Penalty Fee: $0 Get Started via Finova secure site

Why Choose Finova?

If you own a car or a truck, you can use your vehicle as collateral for a loan, which Finova labels as a car equity line of credit.

Finova is designed for borrowers who might otherwise be tempted to apply for a high-interest rate payday loan.

You don’t need to have an established credit history. In fact, no minimum credit score is required and you may be approved even if you only have a few years of credit history.

Even a bank account is not needed because you can pay via MoneyGram but you will need to pay an additional fee if you choose that payment method.

While the threshold for loan approval may not be stringent, you will be disqualified if you are in bankruptcy.

Lenders who offer car title loans generally demand high interest rates and fast payback periods. Term lengths for Finova loans are comparatively longer and feature lower interest rate charges.

Keep in mind before you apply that your car or truck is required as loan collateral so you do still risk losing it despite the more favorable pricing and loan duration terms than those of many lending alternatives.

APPLY FOR A CAR EQUITY LINE OF CREDIT NOW

Finova Cost Of Loan

If you were to borrow $1,000 at the maximum APR rate of 30%, the cost of your loan would be $261.52 inclusive of fees payable to third parties, such as the $75 DMV Lien Fee and Document Stamp Tax.

All fees are rolled into the life of the loan and are included in the finance charge.

If you don’t have a bank account, MoneyGram fees can add up over the course of the year to more than half of the cost of the loan.

How Finova Works

When you apply for a Finova Financial car equity line of credit, you will need to meet certain requirements, including:

• You own the vehicle in your name and have a lien-free car title.
• You must have comprehensive and collision insurance prepaid for the term of the loan and Finova Financial must be named as an additional payee or you can purchase the Debt Cancellation Addendum.
• You must have adequate equity in your vehicle.

You will also need to be at least 18 years of age, have a driver’s licence and utility bill for proof of residency, and show proof of income with a recent pay stub.

Once approved, the maximum amount depends on the state you live in. Finova operates in the following states:

• Arizona
• California
• Florida
• New Mexico
• South Carolina
• Tennessee

The loan amount you receive is based on the value of your vehicle and your monthly income which indicates your ability to pay back the loan.

Your loan APR rate will range from 17% to a maximum of 30% and you will also be required to pay a $25 credit investigation fee.

APPLY FOR A CAR EQUITY LINE OF CREDIT NOW

Finova Financial Funding

Learn more about Finova Financial emergency car equity lines of credit:

Finova Review: Pros and Cons

Finova FAQ

Finova Summary

If you own your car or truck lien-free and need fast access to cash, Finova is a cheaper alternative to a payday loan and many car title lenders, plus it has more generous term lengths than most car title lenders.

If you have a limited credit history or low credit score, Finova may be a good option with APR rates ranging from 17% → 30%, minimum term lengths of 12 months and no requirement to have a bank account.

Still, it is best to calculate overall costs before signing up because third party fees can significantly increase overall loan costs, especially if you have a good credit score because you may be able to get more favorable rates from a bank auto loan.

APPLY FOR A CAR EQUITY LINE OF CREDIT NOW

The article Finova Review 2020 – Emergency Auto Loans was originally posted on Investormint

If your credit isn’t perfect but you want to buy a car without spending a day at your local dealership haggling, where do you go?

One option is Carvana, an online used car dealership that also offers financing on the cars it sells.

Think of Carvana as the place to go when you want to click a few buttons online and buy a car that has passed a thorough inspection process and comes with a 7-day money-back guarantee.

You can browse among thousands of used cars and even receive a $200 credit that you can count towards flights or travel if you need to pick up a car in another city.

Best of all, you can sidestep the hidden fees which are infamous in a traditional buying experience at a local dealership. When you buy a car from Carvana, you won’t be hit with pesky hidden charges that on average amount to over $400 according to Edmunds.com.

Carvana claims it can save buyers on average $2,199 compared to purchasing at a dealership. But does it stack up when you factor in all the other aspects of buying a car?

Carvana Used Car Financing: Spotlight

Why Choose Carvana?

Carvana has an extensive inventory of used cars that have passed an exhaustive certification process, and can be purchased haggle-free. Plus, they come with a 7-day test own guarantee.

When you buy a used car online with Carvana, the entire purchasing process from start to finish is refreshingly simple, especially when compared to the alternative of trekking down to your local dealership for a day of haggling and getting badgered by sales reps.

NO HAGGLE PURCHASE

If you enjoy bargaining, you might be better suited visiting your local dealership to haggle over pricing and perhaps you will come away with a better deal.

But for most car buyers who shudder at the thought of haggling with a professional dealer who has more than a few tricks up their sleeves to ding you on price and fees, the no-haggle policy at Carvana will be a relief.

The listed price for a car is the price you pay. And while that price should be fair, it is worth double checking on Edmunds or Kelley Blue Book that you are not overpaying.

BROAD CUSTOMER RANGE

You don’t have to meet lofty credit score thresholds to be eligible to purchase a car and your credit score won’t take a hit either because only a “soft credit check” is conducted.

Carvana caters to a broad range of customers, even those who are subprime, and has a minimum income requirement on buyers of $10,000 annually.

EXTENSIVE CERTIFICATION PROCESS

Each of the thousands of cars available via Carvana are assessed as part of a 150-point certification process to ensure they are in good condition.

Carvana claims that no cars in its inventory have been in accidents. And all information relating to imperfections or safety recalls is disclosed to you.

DELIVERY

When you purchase a car, it will be delivered to you or if you need to pick up a car from a far away destination, you will be provided a travel credit of up to $200 to count towards your airfare.

7-DAY TEST OWN

Once you purchase a car, you have 7 days to test it out, so if you find something is awry you can return it with no qualms.

Apply for Auto Financing Now

Carvana Snapshot View

How Carvana Used Car Financing Works

Provided you are at least 18, making at least $10,000 annually, and have a FICO Score above 300, you are eligible to apply for financing through Carvana.

If you are already pre-approved for a loan elsewhere from a bank or a credit union, you can still make a purchase.

During our Carvana review, we found 7,119 cars available for purchase with prices ranging from $6,500 to $50,000+.

You can specify the most you are willing to pay monthly as well as the price range, mileage, and model year.

Based on $1,500 down and a 72 month loan at 3.99% APR, the monthly payments on the range of cars we reviewed were as follows:

If you have excellent credit, your APR may come in just under 4% from our checks and rise as high as almost 14% if your credit is poor.

To give you ballpark figures of what this would mean. A buyer with poor credit would probably pay just over $50 more each month than a buyer with excellent credit assuming a purchase price of approximately $15,000 with 20% down payment.

LOAN DURATION

The default monthly payment figures are based on 72-month (6 year) auto loans.

A general rule of thumb is to limit the amount you borrow when paying for a depreciating asset, such as a car. If possible, keep the term length as short as possible and try not to exceed a 3 year loan duration period, otherwise the sum of your interest charges could be quite hefty.

You may want to compare other auto lenders to see if you can get better rates, especially if the quoted rate is approaching or exceeding double-digit percentage levels.

Another option is to squirrel away a few nuts each month so you can build up a higher cash down payment or even pay fully in cash.

Apply for Auto Financing Now

Carvana Review: Fees

Carvana delivers your car fee unless you live outside a local market and charges no hidden fees. However, if you return your vehicle you may be responsible for mileage and delivery fees.

DELIVERY FEES

When you purchase a car through Carvana, no delivery fees are charged unless you live outside a local market. However, if you return the car within the 7-day guarantee window, you may be hit with delivery fees.

MILEAGE FEES

If you take ownership of a vehicle and then return it you will also be charged with mileage fees before you can return your trade-in.

HIDDEN FEES

No hidden fees are charged so the price you see is the price you get. The price you pay for the vehicle will be the sticker price plus local taxes, title and registration fees based on your zip code.

Carvana Review: Pros and Cons

You can purchase a car quickly, haggle-free, and without worry of hidden fees while enjoying the comfort of knowing it has undergone a thorough inspection report and comes with a money-back guarantee. However, be wary of taking on too much debt and committing to a long loan duration which may cause interest payments over time to add up.

Carvana FAQ

Carvana Summary

If you were to listen to Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! author Robert Kiyosaki, you would know that taking out a loan to pay for a car is generally a no-no. Why pay interest on an asset that depreciates over time? That is good financial advice in general but if you don’t have the cash to pay for a car outright yet need the wheels, you may have little choice.

Carvana comes in useful by providing a one-stop shop marketplace where you can find and finance a used car. But you don’t need to take out a loan at Carvana to shop around. You can pay in cash or get financing from other sources, such as a local credit union.

With your financing in place, you can enjoy a no-haggle purchase at Carvana because listed prices are final and non-negotiable. Plus, you get a 100-day limited warranty and a 7-day money back guarantee after you buy your car.

The usual nuisances of buying a car are removed at Carvana. You don’t have to make a trip to a local dealership but instead can purchase your used car 100% online and have it delivered to your home free of charge. And you won’t get dinged with hidden fees which are so common when purchasing a car more traditionally.

Carvana does open its doors to buyers of almost every level of creditworthiness so where possible strive to shorten the loan term to avoid hefty interest charges over time.

The bottom line is if you are on the hunt for a used car and want a hassle-free shopping experience, Carvana deserves your consideration.

Apply for Auto Financing Now

The article Carvana Review 2020 – Financing For Used Cars was originally posted on Investormint

Here are a few tips to help you get a better deal when you are trying to figure out how to trade in your car economically.

The first thing to keep in mind is that when you trade in your old car for a new one, you will be setting out on a voyage to negotiate two prices at your local dealership: the sale price of your old car and the purchase price of the new car.

If you are not yet a negotiation wizard, Stuart Diamond’s New York Times Bestseller, Getting More, is a classic book to help you get the best deal.

Brushing up on your negotiation skills is almost a prerequisite before you step onto a dealership lot because any car salesperson worth their salt will have fine-tuned their haggling skills and will gladly sell you a new car at a premium or buy your old car at a discount.

With your negotiation skills honed, your next steps will be to compare prices for your new car, find out the value of your old car, shop around for quotes, and drive away in your new wheels!

What Is My Used Car Worth?

To find out what your used car is worth, first gather basic information about the make and year of your car as well as mileage, engine size, and extra features, such as leather seating, sunroof, navigation system, and sound system.

Then you can visit either of the two best known car pricing guides:

Most online pricing guides will first ask you to enter your zip code because car prices vary nationally by location.

If you are looking to trade-in your car – meaning buying a new car and selling an old one as part of a single transaction – you will pay a price to the dealership for the convenience.

However, if you are willing to shop around a bit, you can look to websites like Craigslist and LetGo or even Facebook’s marketplace to find private party deals that keep more money in your pocket.

Gather Your Documents

Before trekking down to your local dealership, gather the information you will need to finalize a deal.

The following car sale checklist may come in handy:

While dealerships are generally a convenient way to trade in your car, you will probably run into one roadblock that slows you down: the car inspection.

Most dealers will want to conduct a physical inspection of your car before providing you a quote so consider online quotes as simply estimates. In general, dealerships will quote you prices below what you see online.

One way to boost your chances of landing a good deal is to trade in your car on the last day of the month, if possible.

Dealerships often have month and quarter-end quotas they try to hit so you may be able to squeeze a little extra out of them then because they are motivated to get the deal done to hit their quota target.

> Check Out Carvana: Financing For Used Cars 

Get The Best Car Deal

Depending on what kind of car you drive, the trade-in deal you get will be easier or harder to negotiate.

If you drive a Honda Accord, for example, which is generally available and sold widely among many dealerships, you will have the upper hand during the negotiation phase because you can walk away if the dealer doesn’t give you an inch during the bargaining process.

However, if the car you want to buy is only available from one dealership in your city then the dealer knows you don’t have many options if you really want the new car, and will probably try to squeeze more money out of you.

Remember that the purchase of your new car is only one half of the trade-in negotiation process, you will need to come to terms on the sale price of your old car too.

You may feel a little worn down after coming to an agreement on the purchase price of your new car, so feel free to take a break for a few minutes, walk outside and get some fresh air before returning to the table to discuss the sale price of your old car.

Sometimes, you will discuss the sale price of your old car first before discussing the purchase price of the new car. Either way, it is best to take a break between conversations.

And it doesn’t hurt to let the dealer know that, even though the price of one car has been agreed, the terms of the next deal need to be to your satisfaction before completing the overall trade-in.

A key to good negotiation is to know what your starting offer will be and what your reserve price is too.

When selling your old car, you will want to keep three prices in mind:

1. Kelley Blue Book or Edmunds estimated value of your car
2. The opening price at which you want to sell your car
3. The reserve price below which you won’t sell your car

If the dealer won’t pay more than your reserve selling price, consider walking away. You might find that they will call you back before you reach the exit!

Similarly, when you are negotiating the purchase price of your new car, you will want to have the estimated price from an online pricing guide in mind as well as your opening low-ball offer, and the most you are willing to pay.

Don’t forget that taxes and fees will need to be paid on the agreed upon price.

What If I Have An Auto Loan?

If you are looking to trade in your car and still have an auto loan outstanding, you will need to do a little more financial gymnastics than simply offsetting the sale price of your old car against the purchase price of your new car to arrive at the trade-in value.

Depending on whether your car is worth more or less the loan balance remaining, a credit or debit will be applied respectively to the sale price of your new car.

The bottom line is if you owe more than your car is worth then you will have to pay the difference before completing the trade-in but if your car is worth more than you owe, the difference will be subtracted from the sale price of your new car.

If your loan balance is greater than the value of your old car, the dealer may ask you to pay the difference at the time of the trade-in or invite you to roll the difference into a new loan. Beware of this offer!

If you were to roll the amount into a new loan, you will start paying interest on it so, over time, you will end up paying even more.

Enjoy Your New Wheels!

If you are in the lucky position that your old car is worth more than the outstanding loan balance, the trade-in calculation runs a little more smoothly.

All you need to do is subtract the sale price of your old car from the purchase price of your new car.

The dealer will pay you the difference directly or count it against the sale price of the new car.

If the sale price of your old car is rolled into the purchase price of the new car, you will see a trade-in credit listed in your new car sales agreement.

And if the thought of visiting your local car dealership gives you a headache, you may want to check out a company like Carvana, which provides financing for used cars, a marketplace to buy cars, and helps you to sidestep the haggling process.

>> Need Used Car Financing? Check Out Carvana

The article How To Trade In Your Car was originally posted on Investormint