Auto Loan Education

In general, the two largest loans that consumers take out, are for homes and cars. The reasons to refinance a car loan, are the same as those for a home- lower interest rates, and reduced payments. Your new lender will pay off the original lender, and the vehicle's title will be transferred to them. We outline the benefits, costs, and savings of a car refinance loan to help you decide.

So you found the car of your dreams but don't know how you are going to pay for it? Well, there are a few steps involved in financing: Get Your Credit Report: Before you walk into the dealership and apply for financing you need to know what your credit record is like. Too many dealers will try to slide in a higher interest rate. Consider credit unions or online lenders.

Decide what type of car you want. The Real Basics: standard or automatic transmission; engine size/horsepower; antilock, power lock, or power-assisted brakes; extended warranty.... Medium Level Considerations: leather, power seats; wiper and/or defroster for the rear window; power mirrors on the exterior; air conditioning. The Frills: remote starter; sunroof; car alarm; audio system.

If you've decided to purchase a used car, do your homework before buying. Check out the following important items: Fuel consumption, Maintenance costs, Insurance rates, Past repair record, and Safety record for that make and model. Plus, we show you the 4 elements of the FTC's "Used Car Rule," as set out in their Buyer's Guide. There is more to buying a used car, than kicking the tires.

The following is an overview of the new-car buying process. How Much Of A Car Payment Can You Afford? Decide how much you have to spend on a new vehicle. Your monthly car payment should be no more than 20 percent of your monthly net income. Will You Get A Car Loan Payment? Decide whether to pay cash, finance or lease your new car. Each method offers different advantages. Plus, 8 more steps.