Auto Loans In America

Auto Loans In America

Drive your dream car today with SafeAmerica’s low rate affordable auto loans. The process is quick and easy.Buying a car should be fast and easy. So should financing.USA offers several auto loan programs available that will give you your best option at the best rate. We also make repaying on a loan seamless with payment transfer programs, payroll deduction, Online Banking and Mobile Banking. A combination of higher prices for new cars and relatively low rates for auto loans means Americans are borrowing a record amount to pay for their new rides.According to Experian Automotive, which tracks millions of auto loans written each quarter, the average amount borrowed by car buyers last quarter climbed above $27,000 for the first time ever.”It’s not surprising buyers are borrowing more,” said Melinda Zabritski, Experian’s senior director of automotive credit. “If you look at the most popular segments, they are full-size pickups and SUVs. It’s hard to find one of those models new and fully loaded for under $30,000.”According to Experian, the average auto loan in fourth quarter 2013 was $27,430—an increase of $739 compared with the same period of 2012. The average used car loan was $345 higher, coming in at $17,974. Those with non-prime credit ratings—or credit scores between 620 and 679—had the highest average auto loan. For these borrowers, the average new car loan rose more than $1,500, to a new high of $29,385.And as their loans rise, keeping the monthly payment as low as possible has become more of a challenge—even as car buyers stretch their loans over longer periods of time. According to Experian, the average monthly payment for a new car auto loan rose $11 to $471 in the fourth quarter; the average monthly payment for a used car loan edged $4 higher, to $352.Not surprisingly, those with subprime credit ratings—credit scores between 550 and 619—had the highest average monthly payment, of $499.”I expect that monthly payment to continue rising and go above $500,” Zabritski said. “There’s always a tipping point where buyers say, ‘I can’t pay that much every month.’ So far, we haven’t seen the flashing lights go off indicating buyers are at a tipping point.”The payments are rising despite an increasing number of car buyers opting to stretch their loans over six or seven years. According to Experian, a record 20 percent of all new car auto loans in the fourth quarter were more than six years in length.  Overall, the average auto loan is scheduled to last five years and three months—but that could be rising.J.D. Power said last week that February was on track to have one-third of new car auto loans last at least six years.Bigger auto loans shouldn’t come as a surprise, given the average transaction price—or the amount buyers are paying at dealerships—climbed 1.9 percent to $32,160 in February, according to Kelley Blue Book. It’s the second straight month transaction prices came in above $32,000, as car buyers are adding navigation systems, in-car connectivity and infotainment systems to their vehicles.Within the industry, automakers such as Ford and Volkswagen have average transaction prices higher than $34,000. But for February, the highest average transaction price among the largest mass automakers was General Motors, where the average model sold at dealerships for $35,380.

   Same low rates for a new or used vehicles
   Repayment terms to 96 months
   Up to 125% financing including tax, license and mechanical breakdown protection
    Ability to buy from a dealer and get your SafeAmerica financing on the spot. Just look for the Credit Union Direct Lending
    Purchase from a dealer, private party or buy out a lease.

Other Optional Benefits:-Skip-a-Pay – allows you to skip up to two payments per calendar year, upon approval. Fee per loan skipped.Debt Protection – cancels your eligible loan balance in case of death.GAP Protection – pays any balance remaining should the collateral be totaled and the loan balance exceeds the value of the collateral.Mechanical Breakdown Protection (MBP).CARFAX® Report – vehicle history reports, purchase one before you buy a vehicle.Save money by refinancing your existing auto loan from another financial institution.

Get Pre-Approved:-Get pre-approved for your next auto loan. You will know how much you can borrow before you go auto shopping. It will speed up your loan process too.

Preferred Dealers Spotlight:-SafeAmerica is proud to spotlight our dealer partners that help member’s secure on-the-spot financing right at the dealership with Credit Union Direct Lending (CUDL). When you’re in the market for a new or used car shop at one of these dealers and save.How to get the best auto loan:-Some consumers will spend days making sure they get the lowest price on a vehicle, yet they won’t bother to shop for the best auto loan. If you don’t have financing in place when you visit the dealership to buy, you’re leaving yourself vulnerable to whatever terms the dealer offers, which may have a much higher interest rate than you could get elsewhere. And dealers often mark up the interest rate of a loan over what you actually qualify for, which can cost you hundreds of dollars extra.Ultimately, you want to balance a loan’s total cost against a monthly payment you can afford. But if you concentrate only on the monthly payment, you’ll increase the chances that you’ll unknowingly end up with a bad deal. It’s also smart to face reality before setting your sights on a dream machine.

Keep an eye on a loan’s total cost:-When comparing loans, the figure to focus on is the annual percentage rate (APR), which varies from day to day. A lower rate can produce significant long- term savings. For example, a three-year, $15,000 loan at 5 percent APR would save you nearly $500 overall, compared with the same loan at 7 percent.Another key consideration is the term of a loan, which can significantly affect both your monthly payment and the total cost of your financing. A shorter term means higher monthly payments but less money paid overall. Try to keep the length of the loan as short as you can afford.A three-year loan costs far less overall than a five-year loan. For example, if you borrow $15,000 at a 6.5 percent APR for 36 months, your monthly payment will be $460, and the total interest will be $1,550. The same loan stretched out to 60 months would lower the monthly payment to $293—over $150 less—but increases the interest by $1,060 to a total of $2,610. And that doesn’t even take into account that longer loans often have higher interest rates.Another concern with long-term loans is that they lengthen the time before your payments begin building equity in the vehicle. For example, with a 60-month loan, it might take 18 months of payments or longer before the car is worth more than you owe on it. This means that if you want to trade in or sell the car early, the price you’ll get won’t cover the amount you still owe, also called being “upside down.” The same is true if the car were stolen or destroyed. Your insurance payment won’t be high enough to pay off the rest of your loan.You can reduce this period by taking a shorter loan. For example, with a three-year loan, you already might have built thousands of dollars of equity in the vehicle by the end of the first year.You can avoid being upside down by making a significant down payment. When financing the purchase of a new car, we recommend having a trade-in or down payment of at least 15 percent of the total cost.

Where to shop for an auto loan:-Walking into a dealership with a guaranteed auto loan in your hand gives you bargaining power and flexibility. It also helps you avoid the common sales tactic of mixing up the vehicle price with financing costs. On the other hand, going into the dealership without doing research on how you are going to finance your purchase is setting yourself up to overpay.And by entering your ZIP code, you can see some offers tailored specifically for your area. But the site often doesn’t include a lot of local lenders or, in some cases, national ones. So it’s worth checking with individual institutions, as well.A dealership may be able to offer you the best financing terms. But you should still do your homework beforehand by carefully shopping for the best loan offers so you have a comparison point.Also, taking the automaker’s low- or zero-percent financing often means having to pass on a rebate, since your choice generally is one or the other, not both. But you often can get the best of both worlds by taking the rebate from the dealer and getting financing elsewhere, even if the interest rate is higher than the promotional one from the manufacturer.

Local banks:-Banks generally have very specific, conservative loan policies and may only cater to those with better credit references. As such, banks are in a position to offer some very com­petitive loan rates. Since you probably have a relationship with at least one bank already, that might be a great place to start your financing search. Most banks have websites where you can check their current loan rates, but if you decide to apply for a loan, you should stop by a branch office and deal with a real person. It’s a good way to control where your personal information goes, and by avoiding mistakes or misunderstandings, you might walk out the door with a pretty good interest-rate offer.

Local credit unions:-Credit unions operate a bit like banks, but they lend money only to their members, who are also owners of the credit union itself. Because credit unions are nonprofit, their operating costs are fairly low and their lending rates can be quite competitive. Many people belong to credit unions just to take advantage of the convenient loan policies.

Content Credit :- Caroline Layzell Yoga Teacher

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