Learn the Advantages of Online Auto Loans Right Now

If you need an car loan right away and are worried because you have bad credit, then relax, because there are plenty of online banks that are making loans right now, to people whose FICO scores are most likely a whole lot worse than yours.Why did I say, “online lenders”?Well there are lots of land-based lenders that will probably give you a loan, but the online ones will almost always give you a far better deal because of the cutthroat competition.Having emphasized that you’ll almost certainly get a better deal from an online lender than a land-based one, I should perhaps add that you shouldn’t expect to get the preferred interest rate that somebody with a five-star credit rating will be offered, because you definitely won’t be.The essential thing to do if you want to get the best online auto loan, or any other loan for that matter, is to carefully check out numerous banks, and I mean “numerous’, and not just two or three of them. Please don’t be like the majority of people with bad credit that are so happy to be offered a loan at all, that they jump at the first one that’s offered.Moreover, don’t just check the interest rates, but check the monthly payments too, because by doing so you’ll quickly become aware as to whether or not there are hidden charges. If the interest rate is lower, but the monthly payments are higher, then the hair on your neck should stand up, and you should find out what’s causing the inconsistency.What’s really neat about applying for a loan on the web, is that it seldom takes more than a few minutes to fill in a form, and after you’ve filled in several of them, then you’ll normally get replies within 24 hours. Moreover, keep in mind that with hardly any exceptions, that it costs nothing to apply for an online loan, and that you’re also under no obligation to accept what’s offered you.Now let’s consider the advantages of making your car purchase, after you’ve already received loan approval.The most common scenario is that someone with poor or bad credit goes to a car showroom and completes a loan application. After the reply comes back, he or she gets offered a choice of just one or two cars that they’re qualified to buy, and because they generally feel so lucky to even be offered a loan, they take a car that they don’t really want, and they don’t even check the cost of the loan.Compare the above with going into a showroom when you’ve already qualified for a loan, knowing exactly how much you have available, and how much the loan is going to cost you. Apart from the added confidence it brings,it also means that they’ll be a greater number of cars available to you, and you’ll also be in a much better bargaining position.The differences between the two experiences is night and day, with the second one being a different world completely.A small note of caution would not go astray here, and that’s that whilst it’s always smart to check the details of any document that you sign, it even more important in the case of a loan to someone with bad credit. The reason for this is that whilst you’ll get lots of loan offers, the costs will vary greatly, and some of the deals will be verging on usury.So don’t be lazy, and don’t feel that you’re in a desperate situation because you’re not, and if you’ll spend just a little extra time getting the right loan, and then continually make regular payments, you’ll not only end up with a car that’s yours, but you’ll also improve your FICO score at the same time.

Second Chance Auto Loans

Second Chance Auto Loans OnlineIn years past, if you had bad credit, a bankruptcy, or repossession in your credit history, it was virtually impossible to apply for auto loans through automobile dealerships or even directly through the auto finance firm; the answer was almost invariably “no”. This created an uncomfortable and embarrassing experience for many people that found the car that they wanted at a dealership, only to be turned away. With the advent of the Internet, giving consumer’s ability to search for an online auto loan, automobile dealerships and auto loan finance companies now have to compete much more vigorously to get a consumer’s attention, let alone their business; today, it is a borrower’s market. As a result, second chance auto loans and other online auto loan products have become readily available to consumers looking to apply for auto loans online to purchase new or used cars, regardless of their credit history.All Second Chance Auto Loans are Not Created EqualAlthough automotive dealerships and auto finance companies are currently operating in a highly competitive “get every buyer that they can”; type of environment, not everybody applying for second chance auto loans will be in the same boat. One important thing to remember is that automotive dealerships and lender’s will consider you and your vehicle loan in regards to how much risk that they feel you represent as a borrower (i.e. what is the chance that you will make your car payments on time and completely?) This assessment of risk is based upon a formula, unique to each dealership or lender, that is calculated using facts about you that you provide, facts about you available through the credit reporting agencies, your income, and other factors. Some negative factors that might be considered when you apply for auto loans are:• How long ago was the last negative entry on your credit report?• Do you have accounts that are currently in arrears or in default?• Have you had a car repossessed in the past few years?• Are you currently in bankruptcy, or has your bankruptcy been discharged?• How low is your credit score?• What is the ratio of how much credit that is available to you (e.g. credit cards and open loans) as compared to your debt?That being said, there still are factors that can mitigate an automotive dealership or lender’s risk to positively influence the outcome of your application:• Do you have money for a down payment available? Even if a down payment is not required, making one can be a smart thing to do. The down payment can be a smaller token amount, like $250 or $500. This will let the dealership or lender know that you mean business and that you are more likely to make your payments in a timely manner, as you now both have a stake in the vehicle. Still and all, it makes great sense for you to make as large of a down payment as you can afford. Doing so will give the dealership or lender confidence in you, and it will give you the ability to negotiate a better interest rate.• Is there someone that you know with a good credit history that would be willing to cosign on your online auto finance application? A cosigner with good credit, usually a family member or close friend, would immediately put you into a better loan with better terms and a lower interest rate.• What is your income? Obviously, the higher your income, the better that the dealership or lender will feel about approving your auto loan.Note, see also our recent article “How to Get Approved for an Auto Loan with Bad Credit if you have Low Income”; for more information.• What is the ratio of your rent or mortgage payment as compared to your gross income? A scarcely known fact is that automotive lenders and dealers pay close attention to this figure. For example, if you make $1,500 per month income, and your monthly rent or mortgage payment is $500, then your housing cost takes 30% of your monthly income. Anything beyond 40% or so will send a warning to the lender or dealer and they might need to be convinced that you will be able to make your monthly car loan payments on time. Take this into consideration when you fill out your auto finance application.

Customer Finance Programs Key to Increasing Sales

While studies show that technology spending is once again on the rise, there’s a reason you haven’t heard a collective sigh of relief from the software industry. While many budgets are once again allowing for the purchase of enterprise software, hardware and peripherals, there’s no question that today’s purchasers are smarter, savvier and more selective than ever.Even though the purse strings have loosened, competition is at an all-time high. It’s no longer enough to provide a software solution that meets the potential customer’s needs, or even to provide it at the best price. Today, smart vendors are constantly looking for ways to stay one step ahead of the competition.While increasing sales is always part of a competitive business strategy, software development companies often overlook a simple method of accomplishing this objective – making it easier for customers to buy.One option increasing in popularity among software vendors is to establish a customized finance program that provides no-hassle financing solutions for your prospective clients. In addition to “one-stop shopping,” your customers can reap the other benefits of financing that make it easier for them to commit to technology purchases, including:100 percent financing — Many finance companies offer 100 percent financing for the cost of software and maintenance contracts, which requires no down payment. Because customers don’t have to come up with a down payment, they can make a purchase immediately, rather than hold up the sale with a “wait and see” mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more capital in revenue-generating activities.Improved cash flow management – With software financing, your customers can conserve capital for reinvesting in their business and improve budgeting accuracy through fixed monthly payments. Financing also makes it easy for customers to access multiple-year budgets by paying for the benefit of your software over its useful life.Flexible payment structures – Customers can optimize project budgets by taking advantage of the flexible payment structures available through financing to maximize the return on their investment. For example, with software financing, customers can ramp up payments to match the revenue generation of a new technology project that is utilizing the software being financed.While financing provides a clear advantage for the buyer, when a program is well planned, the list of advantages for software developers, distributors and resellers can be even more beneficial.Improved Customer RelationsAs noted above, financing packages add value for the customer by enhancing their buying power, offering greater flexibility and providing convenience. It also increases their satisfaction through the ability to leverage their budget to acquire the total technology solution – which could include software, hardware, service, support, integration and training – rather than only the parts and pieces they could afford through an outright purchase.Shorter Sales CyclesOn the sales side, any customer who expresses some interest in a product seems like a good lead. However, there are many times when the question of how to pay for the new software prevents the sale from happening. Time lost on dead-end deals can be eliminated when financing is part of the sale, as the ability to pay is immediately considered in the equation. In addition, many finance companies now offer fast, easy credit and documentation processes, so you can complete a sale quickly and avoid costly processing delays.Another benefit is that as software needs are being discussed in the sales process, the finance specialist can work with the chief financial officer or accountant to determine which financing option and payment plan best suits business needs and cash flow.Direct customer financing can also save software vendors millions of dollars each year by reducing the number of days a sale is outstanding. Consider a company with quarterly cash sales of $50 million. On average, it can take 45 days to collect payment. Assuming a borrowing rate of 6 percent, the 45-day lag in payment results in a carrying cost of $371,204. If the same numbers are run with a leasing finance program that generates payment within 2 days, the carrying cost drops $82,253, saving the company more than $288,951 in one business quarter.The Big PictureOverall, equipment financing programs can:Generate larger, more profitable sales faster;Increase account control;Improve sales efficiency and productivity;Lower days-sales-outstanding;Improve cash flow;Differentiate your company from its competition; andProvide complete solutions for your customers.Taking the Next StepAfter identifying an interest in offering flexible financing as part of the sales process, the next step is to develop a finance program. By partnering with an experienced leasing company to develop a finance program for your customers, you can transfer all of the uncertainties of extending terms to your customer to the finance company.Partnering with an experienced finance company also means you can concentrate on what your company does best – developing software – while letting a finance expert handle the intricacies of a finance program. Put simply, by working with a third party, your company will receive all of the benefits with none of the risk.Whether you choose to refer your clients directly to your financing program partner or to work with a third-party finance partner to develop an in-house program, it is essential to choose an experienced equipment finance partner. During the sales process, the finance expert will be working closely with your customers, and it’s important that his or her actions and service levels reflect your company’s ability to meet your customers’ expectations. When searching for a finance partner, look for a company that:Is flexible and willing to work with your management team to develop a program that will meet your financial objectives;Is experienced in the IT and software finance world, since the sales process, client-decision criteria, and revenue recognition issues are different than that of capital asset sellers;Provides marketing support and materials to help you promote your financing programIs willing and able to provide your sales team with materials and training to ensure sales team members are comfortable and easily able to raise financing as an option with their clients; and Is a financially stable, long-term business partner.Companies in search of a leasing partner can visit Choose Leasing (www.ChooseLeasing.org), a Web site developed by the Equipment Leasing Association, where you can find answers to commonly asked questions about leasing and search for an experienced leasing company specializing in vendor finance programs.