Auto Loans After Bankruptcy – Should You Finance A New Or Used Car?

So what is Auto Car Insurance really all about? The following report includes some fascinating information about Auto Car Insurance--info you can use, not just the old stuff they used to tell you.

Deciding whether to purchase a new or used car is a big decision, especially if you have just filed a recent bankruptcy. Of course, the decision is largely based on how bad you need a vehicle. There are valid reasons for financing a new or used car after bankruptcy. On the other hand, there are also numerous reasons to delay the car buying process. Before applying for an auto loan, carefully consider whether now’s the right time to finance.

When Was the Bankruptcy Discharged?

Once your bankruptcy has been discharged, you are free to finance an auto loan, mortgage, or acquire a credit card. However, you will incur huge finance fees or interest. For the most part, financial experts recommend waiting at least six months to a year before financing a large expense.

The interest rate you receive on an auto loan immediately following a bankruptcy will be approximately three percentage points higher than the average loan. This will significantly increase your monthly car payment. To avoid high fees, wait until your credit improves.

Have You Established New Credit Accounts?

The information about Auto Car Insurance presented here will do one of two things: either it will reinforce what you know about Auto Car Insurance or it will teach you something new. Both are good outcomes.

After a bankruptcy, it is vital to establish new credit accounts. Bankruptcy gives you the opportunity for a fresh start. Thus, you should apply for new credit cards, department store charges, gas cards, etc. The only way to improve your credit score after bankruptcy is to open new accounts and maintain regular payments. In time, your score will rise, which justifies a better rate on your auto loan.

Choosing an Auto Loan Lender for New or Used Car

If you decide to purchase a new vehicle, the next step involves selecting the right lender. There are quite a few options available. You can obtain financing through a new or used car dealership, or you can secure your own financing. If possible, compare rates from at least three to four money sources. Contact your bank or credit union and inquire of their rates. Notify the lender of your current credit status.

In most cases, you will have to secure financing through a sub prime lender. Some traditional auto loan lenders may offer these types of loans. Another option involves taking advantage of online auto loan brokers.

Brokers will thoroughly assess your credit application, and match you with various lenders. Next, the broker will email you quotes from these lenders. You pick the most desirable loan package.

This article's coverage of the information is as complete as it can be today. But you should always leave open the possibility that future research could uncover new facts.

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The Best Ways to Lower Your Auto Insurance Cost

When you're learning about something new, it's easy to feel overwhelmed by the sheer amount of relevant information available. This informative article should help you focus on the central points.

Auto insurance is as they say a necessary evil but there are things that you can do to lower the bill not the least of which is shopping around. Don't just take it for granted that the company you have had your insurance with a long time is giving you the best deal. Every company has different guidelines and what may be a risk to one company may not be to another. Your insurance premium is computed on the basis of many factors, such as the year, make and model of your vehicle, your driving experience and record, your place of residence, driving habits and even your credit score.

When you are buying insurance for your vehicle pay attention to the deductibles as the amounts you choose drastically affect the rate. I recommend that you go with a low deductible for comprehensive just due to the fact that if you have someone run into you in a parking lot and leave you don't want to be on the hook for the bill. When calculating how high to go on your collision insurance you should consider the value of the car as well as what limit may be set by the lender if you have the car financed. I would suggest setting this as high as possible; I personally keep mine at $1,000 because if someone hits me I am going to require them to pay it. If your vehicle is worth less than $3,000 I would drop the collision altogether because the money you save over a couple of years could replace the vehicle.

Choose your vehicle wisely.Before you buy your next car, consider that the bigger it is, the higher your insurance will be. Safety devices such as airbags, automatic seat belts, ABS system can qualify you for a good discount. Anti-theft devices (Lo-Jack, VIN etching, passive restraint systems) will also lower your premium. Cabriolets cost more insurance due to the heightened safety risks. Stay away from sports cars and four-wheel drive vehicles. Both of these vehicle classifications are substantially higher than others especially if you are under 25 years old!

If your vehicle doesn't have an anti-theft device have one installed. The cost for installing a system can be as little as $100 and insurance companies give big discounts for anti-theft devices.
Truthfully, the only difference between you and Auto Car Insurance experts is time. If you'll invest a little more time in reading, you'll be that much nearer to expert status when it comes to Auto Car Insurance.

Don't make frivolous claims! This may sound like common sense just like keeping a clean driving record but you would be surprised how many people make claims for petty things. If you have an issue that will cost you less than $300 or $400 pay it out of pocket. Many companies will reward you for staying claim free.

Consider paying for the damage yourself once you have done your homework. Consider an income policy instead of a lump sum Most people know that life cover pays out a lump sum if you die. But far less know that you can buy cover that pays a regular tax free income instead of a lump sum. Consider enrolling your teenager into elite and recognized advance driving courses. Your insurance costs can be lowered if your teen passes through theses courses with flying colors.

Don't exaggerate the value of your car. The more expensive you say your vehicle is the higher the insurance rate will be. Just give the amount needed to replace it and update this figure annually. Checking consumer guides and asking insurance agents can pay off as well. You can easily find out the price range for your insurance policy, as well as discover the lowest prices in town. Check the financial ratings of the companies too. Then, when you've narrowed the field to three insurers, get price quotes. Checking your Auto insurance price before you purchase a car could save you a lot of money down the road.

Pay your insurance premiums annually instead of monthly or even quarterly if at all possible. This will save you quite a bit in the long run since the companies charge substantial interest rates for carrying the balance. Shop for your Auto insurance on the internet, you will be surprised how much you can save by doing this. By doing it yourself you are saving the company the expense of a live person.

Knowing enough about Auto Car Insurance to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about Auto Car Insurance, you should have nothing to worry about.

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