Category Archives: Credit and Financing

Freeman Grapevine: “I don’t think my New Car is Upside Down?

At Freeman Grapevine, we get asked all of the time by new car buyers: “What does it mean to be “upside down” on your new car?” Well, simple put, you owe more than the car is worth.

The first step to getting out of this crazy situation is to understand that you are not alone. Roughly 30% of people in the United States are in similar situations, and what’s more is that many of these people are in this situation from the get go. That’s right…almost the moment they drive off of the lot. Sometime you gotta’ do what you gotta’ do when you need a new car.

Now that you know you are not alone, the next step is to take stock of what your current options are.

One of the more common strategies people use to get out of such situations is to try and sell the car. Unfortunately, unless you are able to sell the car for what you owe, you are still responsible to pay the loan in full, regardless of who actually owns the car. Another common strategy is to trade in the car that is upside down for a new vehicle. While this may get you out from under one inverted car loan, it is going to put you right back under another one.

This is great advice:

The best thing you can do is finish paying that car off and then sell it or use it as a trade. If you are upside down, you are probably going to want some guidance as to how you can get back on your feet. That’s where Freeman Grapevine can help.

Does anyone have a suggestion or service they can recommend?

How to finance a used car loan

Should you want to purchase a used car and wish to have it financed, but do not know where or how to go about it, then this info is for you.  Where do you find financing for a used car loan?  In most cases getting any used vehicles financed will involve paying higher interest rates than any new car loan.  Also having any used car financed could involve a higher rate down payment, but that also varies depending upon your credit score.

First here’s a video differentiating between a loan and a lease just as a refresher;

When you are ready to get a used (previously owned) car financed from a dealership then first you will want to choose a certified pre-owned auto that will be on site and available from the dealers car lot.  Then begin with some negotiating for the price and purchase of this used automobile long before ever getting yourself involved with any arrangements for the financing.  Check prices on line so you have all of your negotiating tools ready when it comes down to sitting with the salesman.

You can get yourself plenty of used car quotes, right over the internet, before you ever start making any deals towards the purchase of a used car.  When you are online be sure to check the terms of the used car loan and also the rate of the interest at one of the many websites that will offer you this kind of information.  Going online for financing will result in you getting some of the best rates available via direct to consumer financing and could help you get the best sales price for your used car.  Start looking around for some alternative financing for a used car loan should you be planning on purchasing a used (previously owned) car.  Many of the lenders will offer a lower interest rate for newer cars than used cars. Finally be sure to know just what your credit score is whenever you are ready to discuss any financing options.

Remember, the higher your credit score, the lower the rates.  Should you have a score above 680, you should be able to get very fair terms in regard to any financing of a used vehicle, via your online source.

If you have any more questions about financing, don’t hesitate to give me a call and I can go over your options in greater detail.

Get a New Car By Assuming Someone Else’s Lease

If it has been used even for one day, it can be called a used car. When someone leases a new car or vehicle, it is new only on the first day, the moment they drive off of the lot the depreciation begins. Therefore, if you find a vehicle or car for Lease Takeovers, where the lessee has already paid all the upfront fees that are associated with a new lease (anywhere from $1000-$3000), you can just take over the monthly lease payments and get a great deal.

If you are lucky, the person trying to get out of the lease may be willing to give you a few installments and other monitory incentives just to entice you into the Lease Takeover. That is why you should not reject a Lease Takeover and Lease Transfer option or offer. It may be financially beneficial for you to at least analyze some offers and weigh the pros and cons of each offer individually and see if you can get a better deal with a Lease Takeover, rather than opting for a new vehicle Lease. If you opt for a new vehicle Lease in your name and deal with vehicle dealership and the leasing company, you will have to pay the upfront fees, taxes, applicable administrative charges, etc, and after the first day, you will be driving a used car. Remember, a car is new only on the first day.

Now, why someone would be willing to pay you some money or offer some incentive for a new car Lease Takeover? The answer is simple, but there are a thousand different reasons. People may want to get out of their vehicle leases due to marriage, divorce, losing a job, a new job, getting a company car, moving to another country, financial problems, etc. Besides this, the lessee may have to face the payment of thousands of dollars in early lease termination expenses. Therefore it is better for them to entice and offer monitory incentives or a few installments to the person who is interested in the Lease Takeover and Lease Transfer.

Another question and doubt that many new car Lease Takeover prospects have is – What if the vehicle or car you like is from a distant city or not in the same area? The answer is again simple as most new Lease Takeover and Lease Transfer companies have offices in different parts of the country and all of them have websites with online registrations, portfolio of Vehicles, and you can contact them for more information and assistance. Almost all car dealers and leasing companies allow lease transfers across the country.

The bottom line is, if someone else is driving the car of your dreams, it might be  a nightmare for them and could mean huge savings if you can take of their lease.

If you have any questions or comments, you can find me…well here. And of course Here!

How to Find Great New Car Reviews

What is it that makes reviews such a wonderful source of information when researching a new car? The reason is simple. A review is typically given by someone who knows first-hand specifics about the vehicle in question. The trick, though, is not necessarily in finding reviews, since they can be found literally anywhere. What is difficult is finding accurate information from a source that can be trusted.

“I don’t know which car has more horsepower?”

Typically, people do not want to make a high-dollar purchase without having some type of information that they can count on. The next time you are in the market for a new car or truck, take a look at one of these sources, and you can be certain to have a location for reviews that you can trust.

  • Magazines: One of the most trusted and popular sources of information that a driver has at their disposal is that of magazines. Such publications have for years based their entire professional reputations on providing accurate information. Magazines such as Car and Driver and Motor Trend have become well known for providing accurate information on multiple levels, for both the professional and amateur level of knowledge.
  • Internet: Going online is one of the best ways that anyone can use to gather information and reviews about the various vehicles that a person can buy. Visit as many different places, but places that are trustworthy, to gather information that is going to help you in your decisions, there are some things that need to be kept in mind when doing this. You are going to want to limit your searches to sources that have some type of a professional stake in their recommendation, basically places that are staking their professional reputations.
  • Mechanics: I have found that one of the greatest sources for reviews that I can trust is a mechanic. A mechanic is used to delivering professional grade information (since they are a professional) on an amateur’s level. I would strongly suggest that you take advantage of your local mechanic. Typically, the best way to ask a mechanic what they think is just saying something like, “What would you choose?”
  • Government: While I know that it is pretty hard to trust anything that comes from the government these days, there are a couple of governmental sources that I would strongly suggest that you go along with. One is the National Transportation Safety Board (NTSB) and the National Highway Traffic Safety Administration (NHTSA). Both of these sources sole job is to help maintain safe roadways, so therefore can be trusted to provide fairly accurate information.

Now certainly this isn’t an exhausted list by any means. Checking blogs like this one, forums, consumer oriented publications and other forms of media is just going to make the decision making process that much easier. Here’s a hint: Pay as much attention to the negative reviews as you do the good ones. If you have any questions or comments, you know where to find me.

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