5MinuteAutoLoan.com Blog

The Ohio Department of Insurance report revealed that homeowner insurance rates have picked up by 1.5%, even as auto insurance rates continued on a three-year decline of 2.6 percent in 2007.

Historically, Insurance rates paid by Ohio residents have been among the lowest in the nation. Ohio’s auto insurance rates are ranked the13th lowest in the country, according to recent figures from the National Association of Insurance Commissioners; Ohio ranked 6th for lowest homeowners insurance premiums. 

Lower premiums on auto insurance are the result of a competitive marketplace. Car insurance premiums are based on the car’s sticker price, the repair costs, overall safety record, and the risk of theft. Many insurers offer discounts for features such as daytime running lights and anti-theft devices that reduce the risk of injuries or theft.

Texas paid the highest cost of homeowners insurance ($1,372), and Oregon the lowest in 2005 ($491), according to the National Group. New Jersey residents paid the highest for auto insurance ($1,183), and North Dakota drivers paid the least ($554).

Are you wondering if a “no down payment” loan is a good option? Lenders will look at some factors to determine whether you’re eligible:

• How reliable you’ve been when making payments
• How your credit score may have changed.
• How the value of cars may have changed

Getting an auto loan with no down payment is an easy way for a person to buy a car. This type of loan offers borrowing without any collateral or down payment. If you have a trade-in vehicle, most dealers will accept it as equivalent to cash down, and issue an auto loan with no down payment. The trade-in will help lower monthly payments for the life of the loan.

Check out the principal, interest, and fees so that when you apply for an auto loan with no down payment, you can see exactly what it will cost monthly, yearly and for the term of the loan. You must make sure that the auto loan with no down payment, does not outlive the life of the car.  

 One advantage is that the financing for this kind of a loan comes from two sources - the value of the vehicle and the money financed. As a borrower you should work towards steadily improving your credit rating and shop around for an entry-level car that is pretty basic and reliable, not fully loaded with extras. If you’re a first timer, try and get a term for 3-4 years or less, so that you can pay it off on time, repair your credit, and finish off with a vehicle that still has good resale value.  

It’s not hard to get an auto finance loan, but familiarizing yourself with its implications is often a different ballgame. An auto loan is a binding agreement between a lender and a borrower. The advantage to getting an auto loan is that you don’t have to the cash in your hands, before you buy the car. The disadvantage is that the loan will attract interest over time, which results in you eventually paying much more than the actual cost of the car.

Get your Credit Report together, as any lender will need to review your creditworthiness.  Collect up money for a down payment, which is what you first pay to obtain an auto loan. The more you pay down, the less you will require as finance from the lender.

Study your finance contract carefully and scrutinize the terms and conditions, to make sure they are favorable to you. Try and bargain for a low interest rate; interest is the percentage you pay on the money you borrowed.

The principal is the amount of money given to you by the lender. Every payment you make is diverted towards paying the principal and towards interest. Find out the duration of the auto loan; remember you will have to make a commitment to pay up every month, for the entire term. Most auto loans stretch for 24, 36, 48, or 60 months.

Auto finance companies in the U.S. are switching to longer-term car loans, in an attempt to downsize their involvement in the leasing business.

Long term auto finance loans have a slower repayment of principal, as well as increase the risk of losses resulting from defaults in payments. Leasing companies in the auto finance industry also have to cushion themselves with reserve funds to make up for possible losses from these car loans.

These kinds of car loans now stretch as long as 7 years or 84 months. GM, Ford and Chrysler LLC, consider long term auto loans as a way of shedding heavy inventories. Soaring fuel prices have caused a catalytic decline in consumer’s confidence and have hit the fortunes of auto makers, who are now faced with plunging sales especially in the pickup trucks and sport-utility segments.

Long term car loans such as 72 or 84 months, can reduce monthly payments for buyers, putting them on par with payments under leasing agreements. However long term car financing heightens the risk factor of defaults, as the unpaid principal would be higher than that of a short-term loan. Auto financing companies need to factor the loss perspective into the prices charged to customers who avail such loans.

Presidential candidate, Senator Barack Obama said that he would like to see 1 million plug-in hybrid vehicles on American roads by 2015. He also offered tax credits to buyers of hybrid automobiles and outlined plans to help American auto manufacturers achieve the goal of fuel efficiency and reduced dependency on oil imports.

Speaking at Michigan’s Lansing Center, Senator Obama said that he was keen to end oil imports from the Middle East and Venezuela within 10 years and give fillip to Michigan’s domestic carmakers, by making it a hub for the future production of fuel-efficient and alternative fuel vehicles.

Obama’s proposed energy plan includes an expenditure of $150 billion over the next 10 years to meet the demand for fresh energy sources, a plan that is expected to create 5 million new jobs. The costs for the plan to raise mileage standards, provide incentives for auto companies and consumers to switch to hybrids, would be met by a proposed windfall profits tax, ending $20 billion in subsidies to oil companies.

The Illinois Senator was offering $4 billion in loans and guarantees to carmakers to develop plug-in hybrids. Consumers would get a $7,000 tax credit for buying the fuel efficient vehicles; and taxpayers a $1,000 rebate to make up for high energy prices.

A mid-July news poll revealed that voters in Michigan named high gas prices as second to the economy, in terms of important issues facing the country. Energy issues figure largely in the presidential campaign and will determine the way popular votes swing.

The AAA auto club says the average price of a gallon of gas in
Washington is $4.23. The average cost of a gallon of gas in Washington dipped by 12 cents since July 6^th, which is not saying much, since a gallon of gas in Washington costs 27 cents more than the national average of $3.96. Bellingham recorded the most expensive gallon of gas ($4.27 per gallon), while the cheapest was in Spokane at $4.15.

While gas prices skyrocket past $4 a gallon, consumers are engrossed with cost cutting measures and fuel efficient choices. High gas prices seem to have had a catalytic effect in putting the brakes on consumption, changing consumer behavior and driving habits, which in turn, should reduce prices.

The AAA club’s survey today found that the average price of diesel in Washington was $4.90, 8 cents less than the record on July 18. Diesel prices in Seattle were $4.24; Olympia $4.18; Vancouver $4.13; Yakima $4.23 and Tri-Cities $4.26.

The effects of high fuel prices have trickled down into consumer lifestyles; from free pizza deliveries, plunging SUV Sales, to commuting patterns. 

Microsoft Corp announced that it will provide car manufacturers with advanced services to meet demanding consumer expectations. Microsoft’s Automotive Business Unit would expand its automotive-based software products to include services as well, in order to enhance a feel-good experience while choosing a vehicle.

Flagging off these services, is Microsoft Live Search for Devices, the first of many new offerings for its automotive platforms. Live Search for Devices, can enable compatible applications for in-vehicle infotainment and can be operated across the board in Windows Automotive and Microsoft Auto.

Microsoft Corp’s technology drives Ford SYNC in North America; it is also a committed software partner for other majors in the automotive industry. Currently, the automotive industry is undergoing major challenges; hence Microsoft’s commitment to the in-vehicle software platforms comes at an appropriate time for consumers as well as manufacturers.

Microsoft’s Automotive Business Unit provides new technologies and interfaces for in-car communication and entertainment systems. The award-winning Microsoft Auto and Windows Automotive software platforms help to provide driver connectivity to a wide range of techno-wizardry such as hands-free communication, mobile devices, navigation with personalized settings and hi-fi entertainment.