5MinuteAutoLoan.com Blog

Funding for a new program that would reduce domestic dependence on foreign oil and create jobs and technologies in the US, has received support from 71 US House members. The program would be required to lend up to $25 billion to automakers and auto parts suppliers over the next couple of months, a move that is crucial to the future of the US auto industry.

The Advanced Technology Vehicles Manufacturing Incentive Program was initiated to help car manufacturers to concur with new fuel economy standards of 35 miles per gallon by 2020. The $25 billion in loans would be limited to 30% of the cost of any plant or technology program and engineering work within the United States.

The Alliance of Automobile Manufacturers asserted that the NHTSA’s goal of raising fuel economy standards by 4.5 percent per year between 2011 and 2015 was “not technologically feasible or economically practicable”. Raising fuel economy standards would put additional pressure on an industry already reeling from dismal sales figures and economic distress, they said. The alliance said NHTSA had underestimated the costs related to improving technology.

The NHTSA has the task of implementing a law passed by Congress in 2007 that required new cars and trucks to meet a collective fuel economy average of 35 miles per gallon by 2020.

An Amortization schedule gives you a detailed break-down of each payment on a mortgage, as calculated by an amortization calculator. It is a helpful tool that will show you all the information about your loan and help you make your payments on time.

On any mortgage, every payment is apportioned between the interest as well as the principal amount of the loan. The exact amount paid up towards the principal varies each time, and the remainder goes to interest.

An amortization schedule shows you how much money is paid towards the interest, as well as how much towards the Principal balance, with each payment. When a mortgage is first taken out, a large portion of each payment is paid to interest. Over time, as the loan matures, more money goes towards paying down the principal.

Amortization schedules are arranged according to dates. The first payment is made one full payment period after taking the loan and the last payment will mop up the balance of the loan completely.

An amortization schedule breaks down your payments into interest and principal amounts, and gives you a time schedule of the dates to pay your interest, principal, and the remaining balance on principal.

The benefit of a loan amortization program is, knowing when your loan will be paid off. The more you pay, the less interest is paid; thus the loan is cleared more quickly. Making one extra payment means you automatically reduce the amount of interest you would otherwise pay.

FEV Inc., a global engineering services company plans to expand its tech center by another 45,000 square feet, adding 150 jobs to its American headquarters. This move comes in the light of increasing industry demand to develop engine technology at the Auburn Hills facility.

FEV provides powertrain testing services and advanced engine systems engineering. It also develops prototypes for the automotive industry and supplies advanced engine-testing equipment.

FEV’s first expansion came in August, when the company moved into a $4.3 million expansion on Luella Lane, next to its original location at 4554 Glenmeade Lane. This is FEV’s second expansion in Auburn Hills in the past 18 months, adding more employees to its existing 227, taking its numbers to a total of 350.

FEV was founded in 1985, and is the North American subsidiary of Germany-based FEV Motorentechnik GmbH. FEV’s expansion comes in the wake of other foreign automotive firms investing in the Auburn Hills area.

TransUnion, a consumer credit reporting agency, released its analysis of trends in auto financing for the first quarter of 2008. It reported that Wyoming had the lowest auto loan delinquency rate in the nation, during the first quarter. Wyoming’s rate for auto loans delinquent stood at 0.37 % (for 60days), in comparison to 0.65 % in the U.S. overall.

The report is part of a series of consumer lending sector statistics and analyses focusing on credit cards, auto loan and mortgage data with TransUnion. These findings were arrived at from TransUnion’s data base of 27 million anonymous consumer records, picked randomly. Louisiana recorded the highest auto loan delinquency rates at 1.19 percent, with Alabama following at 1.07 percent.

In June, TransUnion reported that Wyoming’s 60-day mortgage loan delinquency rate was 1.41 percent, compared to a U.S. average of 3.23 percent. TransUnion also maintained that $14,616.94 was the average auto debt per borrower in Wyoming. Nevada revealed the highest auto debt at $16,034.

Borrowers in the states of Nevada and Arizona had limited availability of home equity-based financing for auto purchases. This could probably be the reason why auto loan debts were higher in those states, explained Peter Turek, Vice President of TransUnion’s financial service group. However, he also said that states with the highest delinquency rates also showed decreases since the fourth quarter of 2007.

A contributing factor to paying off car loans could be larger income tax refunds, with consumers filing earlier than in 2007.

Every active service person is eligible for a military auto loan. These loans are usually customized to suit the needs of
America’s service people and their families. Military auto financing are incentives for military personnel on active duty, in appreciation of their service to the nation. These types of auto loans also come with special discounts not usually given to civilians.

A car loan for military personnel works in pretty much the same way as that of a civilian. The service person approaches a lender for a loan through their credit union or bank. Once approval is obtained, a discount is fixed, depending upon factors such as the person’s credit history.

However, it is important that service people also shop around for the best terms at many financial institutions, before concluding a deal.

Look for the best plan that matches your budget and needs. A lease may be better if your car is only going to be used minimally. Make sure that you can afford the car purchased, in the long run, and that you can make the required monthly payments, as well as the overall costs to own it.  

Students who need to commute to schools or colleges can look at options of buying a car on a student loan. Most students who live on a rather tight budget, have to be careful about getting into debt, and must weigh their options carefully before committing to an auto loan. Auto loans for college students have actually become much easier now than ever before, what with the several online and offline options available. However, while looking for your perfect car in the classifieds, it is important to plan your budget well in advance, too.

First, you should decide whether to buy a new or used vehicle. It’s no secret that it makes better financial sense for a student to buy a used car. A certified or pre-owned vehicle can save you big bucks as well as be reliable. Used cars may be cheaper than new cars, but also come with expenses like insurance, fuel and maintenance, which can add up to quite a bit. So it is important to consider these expenses along with loan payments, while calculating the cost to own a car. Most often student auto loans offered by banks, financial companies, car manufacturers and car dealers, offer cash rebates, attractive APR rates and flexible payback terms.  

Look for the most reliable and affordable vehicle that your money can buy. Do some research in online car sites to collect information on what you really want? Check the vehicle’s history and vehicle identification number (VIN) to ensure that it hasn’t suffered any serious damage through its service history. Look for rebates and cash back bonuses, zero or flexible down payments, deferred payments and zero percent financing or low interest rates, when you consider a college student loan.

The concept of Car Lease Finances is different from car finance, which finances the purchase of a car.  Auto leasing, pays for the use of a car, truck or van over a period of time and is different from renting. A car may be rented for hours or days, but a minimum period of leasing is 2 years. There are two kinds of car lease finance that you need to know about.  

One is a Closed End Lease: Whereby the person who leases the vehicle (lessee) returns it at the end of the lease period to the leasing company. In a closed end lease the lessee has no liabilities other than paying for any damage or excess mileage (agreed upon earlier). 

In an Open End Lease: The lessee bears all the financial risks associated with the leasing of the vehicle. An open-end lease is best suited to commercial businesses, because the market value of the car is fixed at the end of the lease contract. This value is compared to the original value of the car, and you pay the difference in values; which could set you back quite a bit, financially. 

Monthly payments on leasing are 30%-60% lower than other kinds of loans for the same time period. On a lease, you only pay for a portion of the car’s value over the lease period. Down payments on a lease are usually much smaller as well. Normally you pay a deposit of your first monthly payment, as well as tax, title and registration fees. You can also put down a larger deposit, to reduce your monthly payments. ¼/p>

Buying a car fundamentally involves making a serious monthly financial commitment. To make it easier on yourself, calculate your car loan well in advance and check if it is easy on your budget. You will have a better understanding of your payments and less chances of defaulting on it.

Calculate your down payment and then deduct it from the price of your car. Further deduct your trade-in-value. The resulting amount is more or less what you would be paying on your car loan.

Calculate the total amount of cash you need to have, to buy your new car. Make sure you actually have more money than that quoted on the sticker price of the car. There will always be fees, minor and other small expenses before concluding the sale, which may hike the total price of the car.

There are many online tools to calculate your car loan for free. Use a financial calculator when you are ready with all your figures.

Check on how much money your new car will cost to insure. Any insurance company will be able to give you an estimate on how much and what sort of coverage you need on your new car. Make sure you opt for extra safety features like airbags, which will save you money on insurance payments in the long run.

It’s not really difficult to learn about different kinds of auto loans, but knowing their intricacies is often a whole new game. Sometimes we lose out on little details that could make life easier with a personal car loan. When you apply for an auto loan, you need to know that you have a fair chance of approval. However, not everyone’s credit is good enough. A secured auto loan is one way you can help your chances of being approved for an auto loan as fast as possible.

Secured auto loans are easily available, but a buyer must be careful to make efforts to get such a loan at a comparatively lower interest rate, to save money. To get the cheapest secured loan to suit your budget, pay special attention to the collateral or security you are going to offer to the lender. The value of the collateral offered will determine a lower interest rate and the loan amount. For example, a home is something which has high value, so you can get a secured car loan against it. Most lenders will readily provide you with a bigger loan amount at a lower interest rate, under such circumstances.

Secured personal car loans normally offer between 90% and 100 % of the cars’ total cost. So if you want to buy a luxury car, you can do so, as the full amount may be financed by the loan. Secured car loans for a new car, are usually best taken for a short term ranging from 36 to 72 months, even though you can get one for 2 to 7 years. Two factors will help to ease your repayment: One – keep the loan repayment term as short as possible. And Two - take a smaller loan lower amount and get a lower interest rate. If you are looking at buying a used car, that car should not be more than 5 to 6 years old.

Drivers in Michigan now benefit from a new Auto Insurance rate plan that puts savings back in the pockets of thousands of customers like themselves. The new plan introduced by GEICO will come into effect on July 3, 2008, for new policy holders and October 1, 2008, for policies that need renewal. 

The new auto insurance rates will include- premium changes for motorists, based upon factors such as risk perception, coverage, geographic area, type of vehicle, and other discounts available. Millions of Michigan drivers can now take a fresh look at new car insurance, compare rates and save on auto insurance premiums. 

GEICO is one of the largest and fastest growing auto insurance companies in the US and meets the insurance needs of the people of Michigan. Find out more about competitive auto insurance rates, accident forgiveness, claims services and savings on insurance premiums.