Liberty Auto Loan: Your connection source for car loans across the country.
According to the Federal Trade Commission, the price of new cars averages $28,000, which means most people will seek some sort of financing to make the purchase. The practice of making car loans goes back almost to moment a car first rolled off the assembly line more than 100 years ago. The process has changed substantially over the years as economics and credit has evolved to what consumers know today. At one time, buying something “on tick” was considered a very risky proposition on the part of both creditor an debtor, and people who purchased something in this manner did it as a last resort to buying something upfront. Today, financing a car is business as usual and people don’t think twice about seeking car loans when they’re ready to buy a car.
Though a seemingly complicated process, car loans are actually quite easy for the average consumer to purchase and manage – and, management is key to successfully completing the loan to its full term. The sticker price of the car is not the only amount the borrower will be financing. Instead, the borrower must keep in mind the total cost of the car, which includes the price of the car, any fees charged by the lender, taxes, license, and insurance. It is this amount that makes up the principal of the loan and is the amount on which interest will be charged.
Interest rates are key to managing car loans. They are what the consumer will be considering when shopping for a lender, and will drastically alter the outcome of the loan at its end. The lowest interest rates are what the consumer will be looking for in making his, or her, final choice for financing since they can mean a difference of thousands of dollars over the life of the loan. Interest rates are rooted in a borrower’s risk to the lender, and will go up if that borrower has a poor credit score, or any other indicator that he, or she, doesn’t make good on debts. Interest can be fixed or variable. Fixed interest rate loans carry the same interest rate for the term of the loan. Variable interest rate loans have a changing interest rate for each year of the loan’s term, with a very low interest rate (sometimes called a teaser rate) for the first year, and a higher rate for the remainder.
Lenders will charge fees for certain services they provide. Before a consumer signs any contracts, he, or she, should find out exactly how much these fees add up to. Most financing costs are fairly standardized, but they will vary from lender to lender. All lenders are required by law to provide a complete list of theirs before the signing of any contracts, and the borrower should be wary of any financing operation that doesn’t want to reveal all the costs upfront. Also, a lender may not charge any fees before services are rendered. If the borrower has any doubts about any costs the lender is attaching to the loan, the borrower should ask about them. In some cases, these fees may be negotiated down, and in other cases, some fees may simply be fraudulent.
LibertyAutoLoan.com offers a service that connects people with affiliate lenders and car dealerships across the country in order to give them access to the best auto loan deal available. A useful tool for people with bad credit, it’s a handy tool for people with good credit overwhelmed by the vast choice of lenders available in just a single web search. While there are no guarantees that someone will be approved for an auto loan, the chances of finding a loan with reasonable rates and terms are greatly improved with a more reliable selection than the average search engine can offer. What once took days, even weeks, to do can be pared down to a few hours – it’s comparison shopping made easy.