You should not let a high APR stop you from getting the car that you like. Not all borrowers get the concept of how an APR works. APR short for Annual Percentage Rate, is the actual rate that a borrower is paying to a lender every year. In fact, when you are negotiating with a lender, it is recommended that you ask for the APR so that you will have a more detailed view of what you are actually paying every year, inclusive of all charges involved.
Sometimes, you make mistakes and end up with an APR that doesn’t suit your financial situation due to your credit score. However, there are effective ways of dealing with a high APR. Let’s lay out the facts on the impacts of APR on your payments and how to manage it.
Higher Payments due to Interest
As you might have already guessed, a high APR means bigger payments due to high interest. This might put you in a difficult position especially if you’ve been eyeing a specific car for months but the APR involved is giving you second thoughts. But it’s not the end, you can still consider many options so that you can afford the car that you really love.
Choosing an Extended Term Loan
One alternative that you can do is by extending the duration of your car loan. While short term is the ideal term, it is not for everyone because of the high monthly payments it incurs. With an extended term loan or long term loan, your total debt is divided by a bigger number of months thus resulting to a lower monthly obligation. This is one way of mitigating a high APR.
Consult Your Lender
Visit your lender and ask for possible options that you can do in order to lower the APR on your current loan. That is why it’s important to establish a good relationship with you lender. However, if your lender can’t help you, you can consider refinancing your car loan. For instance if you have recently shown that you are a more responsible payer, you might just find another lender that is willing to loan you money at a lower APR. You can consider this option and pay off your existing loan with this cheaper one. Just make sure that there are no prepayment penalties.
Let us show you a much clear perspective.
Table 1. APR and the monthly payments involved in an extended term loan.
|Interest of APR
||Duration of the Loan
||Monthly Payments Involved
As you can see in Table 1, the payments involved are really significantly different. You would save a lot of money when you consider this option. There are a lot of options when dealing with a high APR, ask your dealer today for any recommendations. They are experts not only when it comes to car but also about vehicle financing.
If you’re interested in an SUV you definitely want to make sure that you’re checking out these ones. Even though they have smaller space in the second row than other SUV’s these ones definitely have plenty of space for anyone that you want to bring along. After all, an SUV is plenty large enough of for everything you might need so even the small ones are likely to be good enough for your needs.
If you’re looking for ultra-luxury you’re definitely going to love the Lexus GX. This SUV is sleek and rugged at the same time so you feel like you can go wherever you want. The inside is soft, smooth and even more sleek and it’s definitely high enough priced that you can understand the luxury appeal. You also get three rows of seating, with 34.1 inches in the second row and plenty in the third as well. Not to mention each of the available upgrades.
The Toyota Land Cruiser is a little less ‘fancy’ but it still has plenty of great features. It’s moderate on the inside so you get some of the features but some additional benefits like a moonroof and great accents. You get 34.4 inches of space in the second road and each of the three seats in that second row is going to be comfortable and large enough for a child or an adult, which means you’re going to love this. If you’re looking for a vehicle like this one then make sure to find the best auto financing available.
This SUV definitely looks rugged and ready for the outdoors. It has a back end that you’ll easily be able to load up with all of your favorite things. With a low price you will spend a little more on gas for the Jeep Wrangler but it’s still decent for longer trips. With 35.6 inches of space in the second row, you’re going to be able to bring anyone you want along without any problems at all. There’s plenty of traction on the tires too, so you won’t have a problem with anything at all.
Another great luxury option is the Lexus LX, which offers 36 inches in the second row and still plenty of space in the third as well. You’ll be able to fit up to eight people in this vehicle and all of that will plenty of comfort. The seats are designed to ensure that everyone enjoys themselves and the infotainment system is definitely for those who want to keep themselves informed about everything their vehicle does.
Finally, we come to the Jeep Wrangler Unlimited, which offers 37.2 inches in the second row, is slightly larger than the original version. It’s slightly more expensive but you’re still going to get good gas mileage to go along with it. This is still the same rugged vehicle as the other Wrangler we discussed, but with a little more in the features department, which you’re going to love.
Your credit report is something that tells anyone who looks at it how well you’re doing at paying off your bills on time and keeping up with your accounts. It’s something that can definitely cause you trouble in the long run because if it’s bad it can affect the way that you get credit. But just who can actually look at that credit report? Unfortunately, the list is pretty long and it’s going to mean problems for you in the long run when everyone on that list is looking at what you have to offer.
Potential Employers – Now your employer has some limitations on what they can look at on your credit report and what they can do about it. Your credit score is entirely off limits to them and they can’t make any decisions based on that score, but they can look at your history of payments and just how much debt you have to decide if they want to offer you employment. If you have a lot of debt it will turn them off because they know that you have to pay it off somehow and they don’t know how honest you’re going to be.
Bank/Credit Union – If your bank or credit union is going to be giving you a loan they can look at your credit score and credit report to decide if you’re a good investment. In fact, anyone who’s looking to give you credit or a loan can look at your report and your score to determine if they want to loan you anything or if you’re not likely to pay it back. Your history is going to count against you quite a bit because they’re going to assume that you’ll continue what you’ve been doing, not that you’ve changed.
Housing – If you’re looking to get a house they can look at your credit report as well. Now the people actually selling the house don’t care because they’re going to get the money from your financial backer, but that financial backer will care and they’ll decide to give you a mortgage or not based on your credit. Apartment complexes are allowed to look at your credit score as well and if your history shows that you’re not good at making payments they could refuse to rent you the space because they don’t know if they’re going to get paid in the end.
No matter where you go you’re going to run into people who can run your credit report and will as well. That’s because they know the credit report says a lot about your history. Unfortunately, even if you’ve started making some changes they don’t know if they can trust those changes and you may not be able to get the credit you need. Make sure you’re aware of that before you start applying for anything, it could end up a problem for you. If you’re looking for a car though, and you don’t have time to get your credit up, you can check out a loan application here and get approved even with bad credit.
A car dealer can tell you anything to make you trade with them. They will lie to you, they will cut corners and beat about the bush even when they know the car they are about to sell you has a glitch. This happens where one is shopping for a second hand car. It also happens to first time car buyers looking for new cars. Your best bet is to be on the lookout and spot that bad dealer before he rips you off. Here is how to go about it.
Reputation is everything
People will always have the nicest things to say about good dealers and of course, the meanest things about substandard ones. The only way you can come across what they say is by going online. They will leave reviews on popular car trading sites, review websites and forums. So take your time to read more about dealers on these avenues. You will certainly find something posted about that dealer you want to trade with. Anything that seems to shade or cast some bad light your preferred dealer’s car yard should be a red flag. Avoid that dealer or be careful with him.
You can look or even talk to a car dealer and know right from the onset that this is an experience dealer. The kind of enthusiasm experienced dealers often exude is hard to fake or mimic. They know about brands and some specific details off head. They are always patient and willing to bargain with you until you both agree on a price that will leave you both smiling. It is business at the end of the day. The buyer and the seller have to be both satisfied. Inexperienced dealers often ignore this simple business aspect without knowing. They will rush every process just to make a sale. Avoid them as much as you can.
Openness and professionalism
You will most likely end up buying from a friendly dealership than you would from an unfriendly one. The reasoning or rather logic behind this is simple. First off, a friendly dealership treating you in a professional manner will make you feel valued as a client. You will in fact, want to do more business with such a dealership in the near future. Not so with a dealership that exudes the ‘don’t care attitude’ simply because you want to inquire something or even window shop.
All these are important factors that you need to consider when eyeing for the right car dealer in Winnipeg. Take some time doing your research and asking for referrals. Auto financing companies that approves auto loans with bad credit no cosigner are good options, make sure to give them a call.