Feb. 22, 2012 6:30 a.m. |(0) Comments

As we move further away from the credit freeze, some consumers might want to think about taking a blowtorch to high-rate car loans that they took out just two years ago or so.

It may be possible to find (and yes, qualify for) a lower rate that would make refinancing an existing car loan a great way to save money.

Jessica Hearns, 23, bought her used car during the financial crunch in July 2009. She didn’t have much of a credit history, and she ended up getting stuck with a 19% rate for a five-year car loan on her blue 2007 Chevrolet Impala.

Hearns, who works at MGM Grand Detroit, said her mother kept nudging her to refinance that car loan.

“She said my interest rate was entirely too high,” Hearns said.

In January, she worked with a credit union in Detroit to refinance that car loan to a 3.5% rate for a three-year loan.

The payment dropped to $165 a month from $225 a month. Yet in order to pay that car off even sooner, she plans to pay $240 a month.

“You save a lot of money, and it’s a great deal,” Hearns said.

Consider another example: What if you could qualify for a car loan at 4% to replace an old loan at 12%?

In this case, a consumer could save around $49.50 a month, according to an example worked up by Greg McBride, senior financial analyst at Bankrate.com.

Say a consumer took out a $20,000 five-year loan at 12% two years ago. That payment would be $444.89 a month.

Now that there’s three years left on that loan, you’d want to refinance to a three-year loan. The idea is not to refinance and string out the payments even further.

If someone’s credit has improved, the consumer might qualify for a 4% rate on a three-year car loan and end up paying $395.46 a month, he said.

In that example, McBride said, the customer would save $1,780 in interest over the life of the loan by refinancing to that deal.

“Not everybody in town is charging the same price,” he said.

MORE DETAILS: REFINANCING A CAR LOAN

Car loan rates vary based on your credit score. Pay your bills on time, keep balances on credit cards low and keep your score higher before refinancing a car loan or any loan. See www.myfico.com and go to the Financial Help Center for information on auto loans.

If you have three years left on a five-year car loan, do not refinance to a five-year loan. You’d want a three-year car loan.

If you refinance, make sure your old loan does not have any prepayment penalty.

ABOUT THE WRITER

Susan Tompor is the personal finance columnist for the Detroit Free Press. She can be reached at stompor@freepress.com.

Article source: http://www.jsonline.com/blogs/business/139959263.html

IRVINE, Calif., Feb. 21, 2012 — /PRNewswire/ — CarFinance.com (www.carfinance.com), the company that is revolutionizing the auto loan process for the more than one in three (36%) consumers with less-than-prime credit[1], today launched a virtually paperless, direct-to-consumer auto loan refinancing solution for the credit-challenged. CarFinance.com’s simple online auto loan process provides direct online refinance applications and timely approvals — all electronically completed from the comfort and privacy of the home.

“Not only are consumers holding onto their vehicles for longer than ever[2] most of those car owners purchased their vehicles just a few years ago when the economy was soaring and interest rates were higher,” said CarFinance.com CEO Jim Landy.  “CarFinance seeks to bring those payments down to earth, and save the longer-term car owner with less-than-prime credit hundreds of dollars per month. CarFinance.com’s online application ensures that the process is simple, quick, private and hassle-free.”

Empowering the tens of millions of credit-challenged consumers who have previously had few auto loan options is the mission of CarFinance.com, which makes new and used auto loans – and now refinancing – simple, secure and anonymous for the less-than-prime credit sector.

Lower Monthly Payments More Critical and More Available Than Ever

Refinancing can significantly reduce monthly auto payments. For example: in Q4 2008, a $30,000 new car loan for 72 months could have a $600 monthly payment. Today, as many consumers are holding on to their cars for longer periods, there is an opportunity to refinance the balance and reduce the monthly payments by $200 per month or more.[3] 

And, lowered monthly payments means more available cash to help car owners pay off other bills or unexpected expenses.  It can also help car owners afford crucial vehicle maintenance, which studies show consumers have been delaying.[4]^{By refinancing to lower monthly payments, car owners can put more focus on vehicle maintenance, afford many of those needed car repairs – ensuring both the safety and the extended life and value of their vehicles.}

How CarFinance.com Refinance Works

• The car owner goes online to www.carfinance.com and fills out a simple application form.
• Within minutes, a credit decision is made.
• The car owner signs the loan document online.
• CarFinance.com takes care of paying off the car owner’s old loan.
• The car owner’s monthly payment can be lowered, potentially saving hundreds of dollars in monthly expenses.
• The car owner’s personal information remains 100% confidential, safe and secure.
• CarFinance.com’s one-on-one customer service support is available to the loan applicant.

Eligiblity for CarFinance.com Refinance

• Car owners with 550 through 675 FICO scores.
• Vehicles 6 years old or newer and up to 75,000 miles.

The Irvine, CA-based CarFinance.com is initially offering auto financing and refinancing in 15 states, and will roll out nationwide in the coming months.

[1] Experian Automotive, “State of the Automotive Finance Market,” 2011

[2] http://www.usatoday.com/money/autos/story/2012-01-17/cars-trucks-age-polk/52613102/1

[3] The monthly payment for a $30,000 auto loan for 72 months at 13% interest is $602.22.  After 36 payments, the balance would be $17,873.  A new 72 month loan at 13% interest would have monthly payments of $358.78, a reduction of $243.44 per month

[4] A recent survey from AAA showed that one quarter of drivers neglected repairs and maintenance on their vehicles in the past 12 months due to the economic climate. AAA, One in four Americans Could Not Pay for Major Car Repair, According to AAA Survey, 8/3/2011: http://newsroom.aaa.com/2011/08/1-in-4-can’t-pay-for-major-car-repair/

About CarFinance.comCarFinance.com (www.carfinance.com) is the first and only direct, online auto financing lender with a mission to empower the growing ranks of credit-challenged (less-than-prime) new and used car shoppers by providing a virtually paperless time- and money-saving way to get a car loan pre-approved before hitting the dealership. Through CarFinance.com, car shoppers can, from the comfort of home, or anywhere with an Internet connection, apply for a car loan to purchase a vehicle – or lower existing car loan payments by refinancing with a new loan – and complete the entire process online, keeping personal information private, safe and secure. CarFinance.com enables car shoppers to walk in to the dealership with cash in pocket and their heads held high – and to secure a better deal by confidently negotiating price as “cash buyers.”  CarFinance.com also provides consumers with easy-to-use finance empowerment tools and content, such as calculators, financing tips and advice.

CarFinance.com is led by the team that built Triad Financial, one of the largest U.S. auto finance companies, and is headquartered in Irvine, California.

Media contacts: Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com Angela Jacobson, mWEBB Communications, (714) 454-8776, angela@mwebbcom.com

SOURCE CarFinance.com

Article source: http://www.bradenton.com/2012/02/21/3889778/carfinancecom-takes-the-headache.html

Ventura County Credit Union works with drivers in Ventura, CA on obtaining an affordable auto loan rate without the hassle. Unlike other institutions that pressure borrowers into a high interest rate, Ventura County Credit Union provides rates as low as 3.49% APR from the beginning.

Auto Loan Rate Terms and Conditions

This auto loan rate is available to qualifying members of the institution. To become a member, borrowers must either live, work or attend school in Ventura or Santa Barbara County. Additionally, those employed within an eligible employee group are also welcome to join.

The 3.49% APR auto loan rate applies to auto loan terms up to 60 months for new and used vehicles. Auto loans older than one year and in good standing with the institution has the option to be included in the Skip-a-Pay program. Under this program, interest still accrues but members are able to extend the life of the loan.

About Ventura County Credit Union

Ventura County Credit Union supports the financial vision of their members in the Ventura County community. Their deposit and loan products help members develop smart money-saving practices for the long-term. They received their charter back in 1950 and have continued to grow within the community. Today, their boast over $500 million in assets and over 50,000 members strong.

Other Terms and Conditions may apply. Additionally, rates may have changed since this offer was posted. Please contact the financial institution for the most recent rate updates and to review the terms of the offer.

Article source: http://www.gobankingrates.com/auto-loans/rate-deal-day-ventura-county-credit-union-349-apr/

LAKE FOREST, CA —
SourcingLink.net Inc. (PINKSHEETS: SNET) announces that its subsidiary, Alliance Auto Group (AAG), has secured financing with a private lender located in Long Beach, California. The Financing will allow Alliance Auto Group to add vehicles to the fleet as needed.

AAG President William Paige stated, “This financing will enable us to increase the fleet by 5-10% per month. The financing option couldn’t have come at a better time. Over the past month our business model has gained exposure due to the flexibility of the program and also because our presence at two of the biggest celebrity events of the year. We have focused on branding the AAG name and as a result we have received a lot of inquiries about our services from retail and commercial interest. The business is exploding and we are ready to maintain and keep up the momentum. We look forward to updating shareholders about our up-and-coming newest additions to our fleet.”

More information about upcoming events can be found at www.sourcinglinknet.com and www.allianceautogroup.com.

SourcingLink.net Inc. trades on the Over the Counter Market under the stock ticker symbol SNET.PK.

About SourcingLink.net Inc.:

SourcingLink.net Inc. is a holding company based in Orange County, California. Through its subsidiaries, the Company is engaged in the car share and automobile membership services. These services allow members access to a fleet of vehicles at a fraction of the cost of ownership and renting, but provides flexibility that leasing doesn’t.

Our motto is, “Why Experience one, when you can drive them all?”

For more information visit the company’s website at: www.sourcinglinknet.com and www.allianceautogroup.com

Forward-Looking Statement

Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.

© Marketwire 2012

Article source: http://www.msnbc.msn.com/id/46463052

The following video is part of our “Motley Fool Conversations” series, in which industrials editor and analyst Isaac Pino and research analyst Lyons George discuss topics across the investing world.

In today’s edition, Isaac discusses a recent development in the auto world — adding high-tech features to car dashboards. Ford is planning to have streaming music and podcasts, GM will have video, and Tesla will have a complete touch screen interface with a 17-inch LCD. Do these devices make driving more dangerous, or are high-tech features the next inevitable move by the auto industry? Isaac and Lyons address the apparent reluctance of the Department of Transportation to spoil the party for multi-tasking commuters.

Please enable JavaScript to view this video.

In an age of increasing access to mobile technology, investors should pay close attention to the tech companies leading the pack. We identified three stand-out technology powerhouses and analyzed their prospects as investments in our recent special report, “3 Hidden Winners of the iPhone, iPad, and Android Revolution.” The report is free today but won’t be forever, so check out your copy by clicking here. Enjoy, and Fool on!

At the time this
article was published Isaac Pino owns shares of Zipcar. Lyons George has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford and Zipcar. Motley Fool newsletter services recommend Ford, General Motors Company, Tesla Motors, and Zipcar. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Article source: http://www.dailyfinance.com/2012/02/22/big-auto-goes-high-tech/

So much for the long-held notion that Americans purchase a new car and flip it every three or four years.

People who buy new cars are holding on to their vehicles for a record amount of time, an average of almost six years, according to the automotive research firm R.L. Polk Co.

The recent recession has pushed people to hold on to their cars and pay off their loans. In the process, they discovered that their vehicles were more reliable than they might have expected, said Mark Seng, a Polk analyst.

Automakers are looking at the trend and believe that it’s one reason it will take some time for auto sales to return to the pre-recession levels as more people learn to live with older cars.

It coincides with what Hyundai Motor America Chief Executive John Krafcik says is “a fundamental change in the way Americans think about their automobiles.”

An automobile has dropped in importance in the hierarchy of social status since the recession, he said, making “the need to change your car to show who you are less important.”

Geoff Moore, a Los Angeles screenwriter, agrees.

“We drive our cars until the wheels fall off,” he said. “It seems wasteful to keep flipping cars.”

Moore and his wife, Nicki, just replaced a 1995 Honda Civic with 140,000 miles with a new Subaru Forester, which they intend to keep for at least a decade. They also own a 2005 Volvo station wagon.

Polk said the typical buyer of a new car keeps the vehicle for 71.4 months, an increase of almost 18 months since 2006. Because its review of car registrations includes leases, people who buy their cars outright are probably holding on to the vehicles even longer, Seng said.

Improving auto quality is pushing the trend, said David Champion, senior director of Consumer Reports’ automotive test center.

In the past, people sold their cars well before they reached 100,000 miles, which was about the mileage at which drivers thought the vehicles would be worn out.

“You would sell the car at 60,000 miles to get some residual value out of it. But nowadays 100,000 miles is only halfway through the life of the car,” Champion said.

Automakers have also lengthened their warranties. Most new cars come with a three-year or 36,000-mile warranty. Hyundai includes a five-year or 60,000-mile warranty and goes to 10 years or 100,000 miles on the powertrain.

John Maigler, a retired United Airlines mechanic and manager from Des Plaines, Ill., purchased a Kia Soul in 2010 because he liked the 10-year or 100,000-mile warranty on the powertrain.

“I keep my cars a long time. I am cheap,” Maigler said.

The trend isn’t expected to reverse, even if the economy takes off and people feel secure enough financially to buy new vehicles.

“Longer ownership periods are with us to stay,” Krafcik said. “Longer loan terms tend to drive longer ownership periods as people pay down their loans. Cars are better and last longer. And the brands that have longer warranties like Hyundai are gaining market share.”

jerry.hirsch@latimes.com

Article source: http://www.chicagotribune.com/classified/automotive/la-fi-autos-new-cars-20120222,0,6670977.story

So much for the long-held notion that Americans purchase a new car and flip it every three or four years.

People who buy new cars are holding on to their vehicles for a record amount of time, an average of almost six years, according to the automotive research firm R.L. Polk Co.

The recent recession has pushed people to hold on to their cars and pay off their loans. In the process, they discovered that their vehicles were more reliable than they might have expected, said Mark Seng, a Polk analyst.

Automakers are looking at the trend and believe that it’s one reason it will take some time for auto sales to return to the pre-recession levels as more people learn to live with older cars.

It coincides with what Hyundai Motor America Chief Executive John Krafcik says is “a fundamental change in the way Americans think about their automobiles.”

An automobile has dropped in importance in the hierarchy of social status since the recession, he said, making “the need to change your car to show who you are less important.”

Geoff Moore, a Los Angeles screenwriter, agrees.

“We drive our cars until the wheels fall off,” he said. “It seems wasteful to keep flipping cars.”

Moore and his wife, Nicki, just replaced a 1995 Honda Civic with 140,000 miles with a new Subaru Forester, which they intend to keep for at least a decade. They also own a 2005 Volvo station wagon.

Polk said the typical buyer of a new car keeps the vehicle for 71.4 months, an increase of almost 18 months since 2006. Because its review of car registrations includes leases, people who buy their cars outright are probably holding on to the vehicles even longer, Seng said.

Improving auto quality is pushing the trend, said David Champion, senior director of Consumer Reports’ automotive test center.

In the past, people sold their cars well before they reached 100,000 miles, which was about the mileage at which drivers thought the vehicles would be worn out.

“You would sell the car at 60,000 miles to get some residual value out of it. But nowadays 100,000 miles is only halfway through the life of the car,” Champion said.

Automakers have also lengthened their warranties. Most new cars come with a three-year or 36,000-mile warranty. Hyundai includes a five-year or 60,000-mile warranty and goes to 10 years or 100,000 miles on the powertrain.

John Maigler, a retired United Airlines mechanic and manager from Des Plaines, Ill., purchased a Kia Soul in 2010 because he liked the 10-year or 100,000-mile warranty on the powertrain.

“I keep my cars a long time. I am cheap,” Maigler said.

The trend isn’t expected to reverse, even if the economy takes off and people feel secure enough financially to buy new vehicles.

“Longer ownership periods are with us to stay,” Krafcik said. “Longer loan terms tend to drive longer ownership periods as people pay down their loans. Cars are better and last longer. And the brands that have longer warranties like Hyundai are gaining market share.”

This story first appeared at LATimes.com.