Online Auto Loan Calculator: Your Smartest Move Before Buying a Car

Buying a car on loan requires a careful evaluation of expenses as it may lead to a budgetary imbalance. If you are not aware of factors such as monthly payments, interest rates, term of the loan, loan conditions, etc., it can cause a financial disaster. But, do not worry because an auto loan calculator is one of the most important financial tools that can help you avoid the times of distress. If you use it, it can prove to be your smartest move as a car buyer.

Let us look into the Basics of an Auto Loan Calculator – what, how and why?

What is an Auto Loan Calculator?

An auto loan calculator is a tool which helps in calculating the amount of loan to be repaid. It also includes the interest rate, price of the car, term of the loan, the monthly payment amount and the additional car-related taxes that you have to pay to the local government.

It is available online and can be helpful at the time of negotiating with car dealers. Basically, it helps you to do homework before you step out of your home to buy a car.

How does it work?

You can access the calculator by visiting the websites of a car dealer or an online auto financing company. In order the find the total payable amount and the total interest amount, you will have to fill the following required fields:

· The loan amount approved by the lender

· The interest rate

· Number of months

Once you provide the details, the total payable amount will be calculated in seconds.

Why Use an Auto Loan Calculator?

The foremost advantage of using the tool is the ease of calculating monthly payment. It helps to avoid confusion by letting you calculate your monthly payments in advance so that your expenses do not interfere in making regular payments.

It is difficult to compare two loan quotes on the basis of monthly payments. But, with the help of an online calculator, you will be able to compare each and every aspect of the loan quote. It will help you in choosing the best car loan quote.

Last but not the least; a good calculator saves you time and money. You can request the lenders to send you loan quotes. It will help you to compare them online without the need of visiting several lenders and dealers for loan quotes.

So, before you set out to sign the loan contract, make sure that you do not forget to use the online auto loan calculator because it can be your smartest move as a car buyer.

Car Loans for People on Social Security

Since 1974, the Supplemental Security Income (SSI) program has helped several blind, aged and disabled Americans. Today, the SSI program is a source of income to approximately eight million people of America.

Car lenders often have a problem in approving your loan request, if you receive income from SSI or any of the following sources:

>> Social security benefits

>> Disability income

>> Workers compensation

>> Unemployment benefits

>> Pension

>> Interest income

>> Cash from friends and relatives

Why do Lenders have a problem with People on Social Security?

Lenders categorize income in two parts:

1. Earned Income

You earn wages, net-earnings and other such incomes because of your job or business. Such income is considered earned income.

2. Unearned Income

SSI, compensation and other social security benefits that you receive without doing any work are considered unearned income.

Lenders believe that unearned income is unstable. It is possible that you may receive less income in future due to change in government policies. Also, the unearned income is necessary for your survival. It is usually inadequate to make regular monthly payments on a car loan.

So, if you have unearned income, lenders will not approve your car loan application easily.

How to get a Car Loan if you are on Social Security?

People with social security are considered risky borrowers. So, to get approved for a car loan, your goal must be to reduce the lender’s risk and ensure regular payments. Following are the ways in which you can fulfill your goal:

1. Income from Job

There are several factors that determine your loan approval. Earned income is one of them. If you are currently employed, you can ask the lender to consider your income from the job.

2. Duration of Employment

If your earned income is slightly lower than the lender’s minimum monthly income requirement, you can convince him of regular payments by providing a proof of your stable employment. Show your Employment Verification Letter to the lender as it includes the duration of your employment.

3. Inexpensive Car

Expensive car results in higher risk to a lender and lowers your chances of approval. So, it is important that you choose an inexpensive car. If you opt for a cheaper car, the loan amount will be reduced along with the lender’s risk. So, he will have no problem in approving your loan application.

4. Down Payment

Down payment is the upfront amount that you pay to the dealer. It will lower the loan amount and lender’s risk. Getting a car loan will become very easy if you can manage a down payment of at least ten percent of the total car price.

5. Co-Owner

A co-owner has the right of ownership as well as shares the responsibility of the car loan. You can ask your spouse or children to co-own the car. If anyone is willing to share your responsibility, lender’s risk will be reduced and you will have no problem in getting the loan.

6. Co-Signer

There is also the option of finding someone to co-sign your loan agreement. If you can find someone to assume the responsibility of regular payments, lenders will approve your loan application. But, remember that co-signer needs to have good credit score and lower debt-to-income ratio.

If a car is a necessity for you, it is important that you do not let anything to create an obstacle in getting a car loan. Social security is a boon for you. Follow the tips mentioned in this guide to ensure that it doesn’t become a bane for you.

Auto Title Loan – Your Car Is Your Treasure-House

Are you in need of cash? Have you exhausted all your options but unable to find a solution to your cash problems? Even financially stable families may get caught in financial crises. Prolonged illness, loss of a job or any other unforeseen event may compel you to look for quick financing options.

If you are trying to obtain a short-term loan to end your financial crises, you may have heard of the following advertisements related to auto title loans:

1. Get Cash for your Car!

2. Get Quick Cash!

3. No Credit Check required!

Auto title loans are prevalent in several American states. It is popular among borrowers because the loan program is easy to obtain. You may have heard about it from your neighbors or friends. If you are interested in obtaining the loan program, you must only join the club after understanding it thoroughly.

What is an Auto Title Loan?

According to Investopedia, it is a short-term loan in which the borrower’s car title is used as collateral.

To obtain the loan program, you will have to allow the lender to place a lien on your car title. Also, you will have to surrender the original title to the lender.

What is the Difference between an Auto Title Loan and an Auto Pawn Loan?

An auto title loan allows you to obtain cash and end your financial crises by pledging your car as collateral. The lender will require the title of your car and not take possession of your car. But, if you obtain an auto pawn loan from a lender, you will have to surrender your car along with the title of your car.

What are the Requirements for getting an Auto Title Loan?

If you want to obtain the loan program, you have to fulfill the following requirements:

1. You should be at least 18 years old.

2. You must have the original title of your car.

3. There should be no lien on the car.

4. The car should not be older than 15 years.

What Documents are required for getting an Auto Title Loan?

Following is the list of documents that are required for getting the loan program:

1. Identification Proof

2. Age Proof

3. Income Proof

4. Original Title of your Car indicating No Liens

5. Utility Bills

6. Vehicle Registration and Insurance

What is the Process of getting an Auto Title Loan?

Just like any other loan program, you have to submit an application form to the lender. The lender will consider your financial situation and analyze the worth of your car. Do not worry if you have bad credit history. If your car is valuable and you have a stable income source, the lender will approve your loan application.

Obtaining an auto title loan is simpler than you think! If you have ownership of a car, you can use it to get out of your financial troubles. Truly, your car is your treasure-house. Use it in times of distress.