How to minimize your monthly payment if you are taking on a bad credit car loan?

This article explores some of the most commonly misunderstood concepts of bad credit car loan, when it comes to refinancing, or interest APR it provides tips on lowering your currently monthly payment.

Don't feel like you are pushed against the wall if you have less than perfect credit. You will be surprised how many Canadians today fall into that category. A car loan's approval and ARP or interest rate is based on your credit history, generally speaking the better the credit bureau the lower the interest rate. I mean after all it makes sense if the person you are lending money to have a good chance of returning it, wouldn't you be more comfortable taking less interest in return just to keep him happy? And in the other extreme if you feel like your principle is at risk, you should minimize the risk by taking on a big return, otherwise it’s not worth your time right? Every time you are trying to take on a car loan, try to think about it from the lender's perspective. That will often give you valuable insights into the world of banking and lending practices.

All of us want a lower monthly payment, and we all want to pay as little as possible and drive as nice of a car as possible. That is just human nature! So to get a lower monthly payment you simply buy a cheaper car with less capital cost and that is the first way to reduce your monthly payment. But if you have bad credit on top of that, interest rate will be your enemy so having a lower monthly payment is almost impossible. But in relative terms, you can still lower your payment in a few different ways. One of them is try to take on another loan at a lower APR rate, so for example if you’re current bad credit loan is at 21% interest rate, and you still owe $10000 on that loan. By you applying for another loan from a different lender may result in you been approved for another $10000 loan at 17% interest rate. That 4% difference can save you 30-40 dollars per month, so it will only make sense if you can get the lower rate.

The second tip is to re-apply financing after one year of repayment. The bad credit car loan system works kind like our jail, when you are on good behavior and after a while they may give you an early release, or set paroled due to that reason. It is very much the same in the car loan repayment and credit rebuilding process.

Thank you for reading this article, it is brought to you by Auto Credit Financial Canada, for more articles please visit us online at www.autocreditfinancial.ca

Auto Credit Financial Canada is a Toronto based bad credit car loan provider, we have helped hundreds of clients getting into their dream car without any hassles.

Don't be fooled by CarProof report when buying your next used car!

This article looks into how to interpret a CarProof report properly, understanding the pros and cons of such report.

So you have probably heard of the CarProof report that is currently available in Canada, but without the proper information to decode such report it can be quite dangerous to the average consumers. Although it is a great idea to check on the vehicle history to make sure it is in a reasonable condition, but this double edged sword can work against anyone who has a vehicle with an accident repair on it. Many of us have no idea about the average cost when you take your vehicle into a body shop, the cost of repairs can be astronomical. For example if you drive a Honda Civic and you have hit a shopping cart which damaged your front bumper and embedded few scratches to your driver side fender. It is only natural for you to repair your car under your insurance policy, but this simple repair can cost as much as $2000 in body shop bills. When it comes to selling your vehicle in the future, your buyer may ask you to provide such report, and refuse to purchase your car due to the claim. CarProof report if interpreted incorrectly can cost you thousands of dollars in resale value. What if you drive an exotic sports car? Did you know a bumper replacement on a Porsche can cost as much as $5000? It seems like such a big deal when it is not.

It is very difficult to find a vehicle on the market today without any kind of accident repairs, due to the lack of description and breakdown of the repair value, a CarProof report can really hurt one's resale value if you had a claim in the past. Usually a repair cost less than $3000 is none serious, and a repair costing less than $5000 should be noted. But if a repair claim exceed $10000 it can be considered high, but keep in mind if the person is driving an exotic sports car, that can be just one bumper and fender job. Due to this recent trend in the consumer, may dealers are paying out of their pocket just to have a clean CarProof, there are many ways to get around the issue. For example a customer may have just finished a body shop repair, and it will take months before the claims are shown on the report itself. Therefore if you solely depend on this report to base your purchase decision on you maybe buying a vehicle that is overpriced.

In conclusion, to better protect yourself in your next purchase. Bring the potential vehicle to a trusted mechanic, let him produce you a real life inspection that can be backed up. Use the report carefully and don't fool yourself into thinking if the report is clean then you have made the right choice. This article is brought to you by Auto Credit Financial, your credit specialist when it comes to used car financing. Visit us online for more helpful articles at Auto Credit Financial

Auto Credit Financial Canada is Toronto's top bad credit car loan provider, we have helped over hundreds of people to get into their next car loan regardless of their credit history. Visit us online at www.autocreditfinancial.ca

Lease vs finance which car loan is easier to break?

This article focuses on some facts regarding lease and finance on a car loan, and offer you some tips on how to break out of your current loan.

First of all, what is the difference between a lease vs finance when it comes to a car loan? Well there are number of factors that will come into play, but the most important misconception is lease is like a long term car rental, where finance means the car belong to my name. Well it is true and not true, on paper finance will have your name on the ownership portion, and lease will have the lien holder's name and address instead of yours. But when you look at the big picture, both lease and finance means you are taking on a loan and until the loan is paid off in full, and only then you can say you own the car. So before the lease or finance is paid off in full there is still a lien on your vehicle which restricts you from selling the vehicle without clearing the lien first. When it comes to you breaking the contract it is easier to break a lease contract vs finance for few different reasons. First of all when you lease a vehicle you are paying for the depreciation on the vehicle, not the entire loan. On every lease there is a residual value or end value. Which can also be called your buyback on the car, it is usually 40-50% of the selling price of the vehicle when it was new. So let's take a $30,000 vehicle for example, your lease end value will most likely to be $15,000 depending on the manufacture. Usually import has a higher residual value, versus domestic vehicles. So lease use the same vehicle and let's assume the monthly payment on the lease is $450 per month, with 0 down. After 2 years into your lease, you owe the leasing company $21,000 to pay out, and let's say your vehicle still worth $19,000 according to Canadian black book. At that point you only need to pay $2,000 to get out of that lease. Of course the lower the mileage you have on the car the better and easier it is for you to break that lease. Rarely you will have very little chance of getting any equity when you break the lease. But occasionally when the lessee bring back a vehicle less than 10,000 km there maybe a small amount of equity you can claim for yourself.

Now when you are financing a vehicle, you are not only paying for the entire loan with taxes added. But also interest rate accumulated over the term. So the same $30,000 car can have a finance lien of $36,000. Now after 2 years into that loan, you may still have $28,000 owing on the vehicle. But when your car is only worth $19,000, to break that financing contract you will be looking at $9,000. So in short, if you are looking to get out of your future contract when it comes to a car loan, it is always easier to break out of a lease vs finance.

This article is brought to you by Auto Credit Financial Canada, Toronto's top bad credit car loan provider, to visit us on the web please visit www.autocreditfinancial.ca>

Auto Credit Financial Canada is Toronto's top bad credit car loan provider, we have helped over hundreds of people to get into their next car loan regardless of their credit history.