How does bad credit car financing work?

Bad credit car financing is sometimes knows as second chance financing. Most car dealerships have taken into account that not everyone has perfect credit. Most finance departments at dealerships have at least one or two finance people that deal with subprime, or bad credit, financing.  Their job is to find a loan company that will buy your loan even though your credit is not perfect.  Based on your credit these loan companies will set specific criteria for the down payment, monthly payments and at times even the price range of the vehicle you can purchase.

They do not approve everyone, but in most cases, if there is a suitable car on the lot and you have a steady income and job history, they will approve you on a vehicle. Keep in mind it may not be the exact vehicle you want, but it will be a newer used vehicle or a new vehicle.

Most people are aware of their credit situation, so do not be embarrassed to let your salesperson know when you go looking for a car that your credit is not the best. They will be much more appreciative if they know that up front, and your purchase experience will be much easier. They will be able to guide you towards cars that you will more likely be approved for, as well as ones that fit into your budget. You will probably be required to put down more money as a down payment than someone with good credit does and your interest rate will be higher. If you have a vehicle to trade in, they will probably take it if it is paid off or very close to being paid off. If you owe a large balance on the trade in, that balance will have to be added onto your new loan, which can mean the difference between approval and denial for a loan. As long as you know that you may not be driving out with the most expensive car on the lot or the one with the most options, a bad credit car loan is a good option if you have bad credit and want to reestablish it.

Advantages

There are advantages to getting a bad credit car loan through a dealership.  These types of loans allow monthly payments by mail or electronic transfer from your bank account. Setting up electronic transfers assures that your loan is paid on time every month, which helps establish credit. These companies do report to the credit bureau, so putting forth your best effort to make your payments on time can help reestablish good credit. Another advantage is that you are getting a car that is either new or a couple years old. This means that in addition to getting a car that is in better shape, you either have a full or partial manufacturer’s warranty. This keeps you from paying high repair bills as most items are covered by the manufacturer’s warranty for the first 36 months. If you get a newer used car, you may want to consider purchasing and extended worry for your peace of mind in case the need for any major repairs comes up over the life of your loan.

Disadvantages

You also want to keep in mind that there are disadvantages of getting a bad credit car loan as well. If your credit score is extremely low, you may have to put down up to 40% of the purchase price of the vehicle, or you may not be approved at all. Unless you have a newer car that is paid off to trade in, you will need a good amount of cash to put down on a bad credit car loan. If you are unable to make a large down payment and do not have a paid off vehicle to trade in, you also may be denied. If you are approved and start but start having issues paying your loan, they are less likely to work with you to make payment arrangements, and they will report any late payments to the credit bureau. They also usually have strict standards when it comes to repossession. For normal credit car loans, they usually allow up to 90 days to get your loan back on track if you have a temporary financial situation before they repossess it. For bad credit car loans, they may only give you 30 days to correct the situation before they repossess the vehicle. Any negative reports to the credit bureau on a bad credit car loan are much more detrimental to your credit than if you were late on a regular loan.

Summary

When you are in need of a new car and have credit issues, there are options to help you not only get a new car but improve your credit as well. Just make sure that you fully understand the terms of the loan before you sign, so you are sure that it is something you can handle financially. Do your best to save enough money for a substantial down payment so that you can increase your chances of being approved for a loan. Before you go to a lot do some research online for inexpensive cars so you have an idea of what your options might be before you even set foot on the lot. The more planning you do before you ever go to the car lot, the better chance you will be approved and driving home in your new car later that day.

Dealing with Engine Chronic Fatigue Syndrome

When you do not take care of yourself, eventually you will start feeling run down, tired and feel like you just are not functioning the way your normally do.  Improper maintenance or a lack of maintenance can do the same thing to your car.  When people have a poor diet, their arteries clog up; when cars have a poor diet, their components clog up affecting performance and gas mileage.

It can affect almost every system in your car, not just the engine but the transmission, electrical and cooling systems as well. There is no need to be discouraged though, much like a human, there are things you can do to improve performance and get your car back to normal. If the only things you know about your car are how to put gas in it and drive it from place to place, educating yourself on proper vehicle maintenance can be an invaluable tool to not only help you save money, but get back and forth to where you need to go more safely and efficiently.

The importance of proper maintenance

Maintaining your car is actually a simple process, but for some people they either choose not to do it or just do not know how or when to take it in for service. If your car is not running as good as it should, you are using more gas than you should, which costs you more money, and contributing to harmful emissions into the environment.

Eventually if you do not maintain your vehicle, you will end up with major repairs caused by a seized motor, which could have easily been avoided with proper maintenance. Your owner’s manual should be the first thing you consult to find a schedule of maintenance for your vehicle. If you have a used vehicle without an owner’s manual, the internet is a great place to research what you need to do for your car to keep it in tiptop shape. Different vehicles have different schedules so you want to be sure that you are doing the correct maintenance for your specific vehicle.

How to maintain your vehicle

Some of the things you can do are  provide just the regular maintenance for your vehicle, such as oil changes on a regular basis, checking all fluids, checking and maintaining the condition of the battery and being aware of any leaks or problems. If you have had your vehicle for a long period, you may want to find a mechanic and have them perform some advanced maintenance on the vehicle such as an engine, transmission or cooling system flush. Usually these services are only performed when the vehicle has been poorly maintained and there is an excessive buildup of sludge or other particles that affect the performance of your vehicle. It may cost you a little more to have these services done, but it is still far less than you would pay to have an engine, transmission or cooling system replaced.

Be proactive when it comes to your vehicle

Once you have your engine back in good performing condition, you need to maintain it, whether you do it yourself or find a mechanic that will handle it for you. Make sure that you check your oil and other fluids when every time you refuel your vehicle. If you notice a drop in any fluid levels, make an appointment for your mechanic to find out what the problem is.  You have to be proactive to make sure that there are not any serious leaks or other problems that could leave you stranded on the side of the road with a seized motor. Even maintaining proper tire pressure can affect the fuel efficiency of your vehicle. Although you may have to learn a few things about your car, it will be worth the time in the end in extra money in your pocket.

Summary

When you are feeling run down and just not your best, you want to do something to fix it. Your vehicle is that same way. A poorly running vehicle costs you extra money that you do not need to spend, as well as emitting things into the environment that are not good for anyone.  A vehicle is one of the most expensive investments you will make next to the purchase of a house, so you want to maintain your vehicle just as you maintain your home.

Synthetic Lubrication – Myths and Facts

Anytime there is anything new that enters the consumer market, you will have your believers and non-believers. Synthetic lubrication is no different from any other new item to hit the market. With anything new, people have a tendency to believe whatever the manufacturer claims the product can do, much like the magic elixirs that were sold by snake oil salesman in the old days.

 

The difference today is you have any information you want at your fingertips, allowing you to research a product for yourself before you try it. If something is too good to be true, chances are it is, but the more educated you are about a product the better decision you can make to try it or not.

Stating the facts and dispelling the myths

There are many facts and myths about synthetic lubrication, which with a little research can be proved or disproved. Unfortunately, even mechanics have been drawn into some of the misconceptions as the public about synthetic lubrication as well, so they may not even be able to help you make an educated decision. In the case of synthetic lubrication, most of the negative points that are circulating about it are untrue, but without a little research, you may be swayed against it when it really could be as good as it is claimed to be. On the other hand, you may believe that it is the best thing for your car, and then realize it may not be. Doing your own research and making your own judgment is the easiest way to know that you have made a decision you are happy with.

One of the important facts to remember about synthetic lubricants is that they are manufactured from organic compounds that are chemically rearranged to produce the ideal lubricant. To make a more common comparison, it is like sugar versus artificial sweetener.  Artificial sweetener contains the same molecular compounds as real sugar, yet they care chemically altered to change some of the effects sugar has on the body. Synthetic oil is created through the same process. They are simple taking what nature has provided and improving on it, creating the ideal lubricant. In addition, all oils are independently tested to make sure that they live up to their claims.

As I mentioned before, most of the negative arguments about synthetic oil are simply myths.  One of the most common myths is that synthetic oil damages seals. This one really does not require any research, just a little common sense. What benefit would an oil company get by producing something that causes damage, none, so this is not true. Some people think that synthetic lubricants are too thin in consistency to work as well as regular oil. This again, is not the case. All oil, whether synthetic or regular must follow a certain criteria to be considered a specific grade, so 10W-40 in synthetic oil is exactly the same viscosity, or thickness, as 10W-40 in regular oil. Another concern many people have is the synthetic oil not being compatible with any residual regular oil that may remain in the engine during an oil change. This is another myth, at least today it is. When synthetic oils were first introduced, some brands contained components that would cause them to separate from regular oil. As more research was done and the synthetic oil perfected, this is no longer a problem. Today there are even synthetic blends available that are a combination of regular and synthetic oil. Perhaps the biggest myth is that synthetic oil will void your warranty. This could not be farther from the truth; in fact, some manufacturer’s now recommend synthetic oil to prolong the life of the engine. These are only a few of the myths associated with synthetic oil, an online search will provide you with many more. Take the time to read them and make sure you find both sides of the argument. With a little research, you can decide, based on facts if synthetic oil is right for you.

Be an educated consumer

Since synthetic oil appeared on the market, manufacturers have tried to educate the public to give them all the facts and dispel all the myths. Like any other new product, it usually has to cross the hurdle of gaining consumers trust before the public accepts it. Consumers need to base their decisions on the benefit of a product, not just the price. If something is expensive, it does not necessarily mean it is the best, and just because it is inexpensive does not mean it is inferior. It is predicted at some point that all vehicles will be using synthetic oil, until then, do your research and make the decision for yourself based on facts.