5MinuteAutoLoan.com Blog

Your driving habits can save you money at the gas pump. If you drive a lot and don’t have a fuel efficient vehicle, the best way to save money is to change the way you drive. Timely vehicle maintenance and good driving habits can enable your car to go an extra 30-40 miles or more between re-fueling.

If you run your car on less than a quarter tank of gas, fuel from the bottom may damage the fuel injector. Therefore keep your tank at least a quarter full. Use your car’s transmission, to control it and save money. Don’t drive when you can roll. If you have a manual, don’t use the clutch to brake on an incline. Use the transmission for switching gears.

Pay attention to maintenance check-ups; prompt action can save you time and hundreds of dollars in the long run. A well maintained car also fetched a higher value in the market. Take care to warm up your car, so that the oil gets enough running time to lubricate the engine. When budgets are tight, the first thing that is compromised is routine maintenance. However, over time, routine maintenance like oil changes, tune-ups, tire rotations and wheel alignments can save money in repair expenses and fuel economy.

Car insurance providers have launched policies that exclusively target the ‘green market’, comprising of drivers who want an eco-friendly insurance product.

Most often these insurers offer green incentives or ‘carbon offsetting’ schemes, which means that a percentage of the price of the insurance will go towards carbon offsetting projects. Others are prepared to offset 100% of your green vehicle’s emissions.

A carbon offset is “a financial instrument which represents a reduction in greenhouse gas emissions”. One carbon offset represents the reduction of one metric ton of carbon dioxide, or other greenhouse gases. If you have an existing car insurance policy, contact your insurer to check if they have environmental incentives. A good place to shop for green car insurance is online. Browsing around will give you a lot of information about the level of coverage you need and the best deal you can get.

Consumers heave a sigh of relief as gasoline prices nationwide show signs of decreasing, following a slump in the demand for crude oil. On September 9th, the national average fell to $3.65, down from a peak of $4.11 in July. After hitting $145 per barrel in July, the market for crude oil collapsed when oil closed Tuesday at $103.26 on the New York Mercantile Exchange. Many financial analysts expect crude oil prices to slide below $100 in the near future.

Gas prices in California plunged 76 cents per gallon after a high in June, according to an update from the AAA of Northern California auto club. A gallon of gasoline touched $3.85, down 28 cents from the previous month. Prices in San Francisco and San Jose have also dropped by 29 cents, making $4.03 and $3.94, respectively.

Californians, who paid almost 25 cents to 35 cents more than the national average for a gallon of gas, are now relieved as prices are falling faster than in other states. High taxes, refining capacity and the use of fuel blends not found elsewhere, have always kept California’s gas prices above the national average.   The Organization of the Petroleum Exporting Countries (OPEC) has announced that it will curb production in an attempt to keep prices from falling further.

If you’re looking for a car finance loan, but are not sure where to get one, do a little homework to find out about the various sources for car finance loans.

A car loan is available at car yards, lending institutions such as banks, car finance companies and Internet car finance companies. It is in your own best interests to find the best loan available on the market. A bank can give you car finance, but the car loan market is very competitive, and you are a valuable customer, so keep all your options open. A bank may put down tougher conditions than a car finance company, before giving you a loan.

The two main ways that your car finance loan can be obtained are known as direct and indirect finance.  Direct loans are given by a single lender, and tend to be more expensive than indirect loans because direct lenders are at more risk from default. Indirect loans come from a lending company and are flexible, because the risk to the lender is less.

You can save a lot of money by shopping for the best auto loan. Narrow down your focus to some key features and check out how the loans compare with one another in terms of total up-front fees and charges; annual percentage rate (APR), total cost of the loan, prepayment privileges and early-discharge penalties.

Rick Wagoner, Chairman of General Motors Corporation will participate in a Senate Energy Summit on September 12th, to push Congress into backing a $50 billion federal loan to Detroit’s Big Three automakers.

Democrats and Republicans have been at loggerheads over rising energy prices and how to relieve them. The energy summit, scheduled for Sept. 12, was initiated by group of senators hoping to break a deadlock over loans authorized by Congress in last December’s energy bill but not funded. The $50 billion federal loan was meant to retool plants to build advanced technology vehicles.

A $7.5 billion energy bill for automakers, parts suppliers and consumer incentives was unveiled in July, by a group of senators known as the Gang of 10. The bill has now garnered the support of six other senators who moved the plan for an energy summit.

The leading automobile makers General Motors Corporation, Ford Motor Company and Chrysler LLC are considering a proposal to seek about $50 million in low cost loans from the federal government to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.

The top executives at these companies, each incurring significant losses as industry sales decline, are expected to meet the government officials in Washington in this regard, the industry sources said. They will also meet the Congressional leaders and the Federal Reserve officials, it is said. Meanwhile, it is learnt that the three companies are preparing plans to act as one entity to get low-cost funding.

The auto makers and some part suppliers are seeking low-interest loans to manufacture fuel-efficient cars as the high gasoline prices have increased the demand for fuel-efficient cars. Meanwhile, many automobile companies have been hit by the fall in the demand for trucks and SUVs as the fuel price inched towards $4 per gallon. They are hopeful of getting these loans, the industry sources said. It may be mentioned here that both Republican and Democrat presidential candidates recently supported providing more capital to automobile makers for the research and development of fuel-efficient cars.

The first thing that comes up to your mind when you decide to buy a car is – Do I have that much money? If you can afford it fully, there’s no problem. Otherwise, it is time for you to think about your finances! The point here is to get a lower car loan rate quote which makes driving your car a more enjoyable experience.

While you are planning to buy a car, research on the car loans available in your city. But before applying for the loans, take a look at your credit ratings. If you one among those with a bad credit rating, it may be difficult! Yes, a bad credit rating will result HIGH interest rates and low amount approvals. So you have to see a company that offers poor credit auto loans.

The next thing is the monthly payment. Roughly 20 percent of your net income can be used for a car payment. Plan your expenses and be at least sure to reserve this much percentage of your income for the repayment of the loan.  These are just a few tips, once you plan and plunge into action, you can get many ideas like this! All the best!

GM’s Vice Chairman, Robert A. Lutz, said that car manufacturers were deserving of government backed funding to the tune of $50 billion in view of the current credit squeeze. This financial support was crucial for auto makers who needed the capital to transform and speed up the process of manufacturing fuel-efficient vehicles. Mr. Lutz was speaking at an event near Chicago where GM was exhibiting its 2009 lineup.

GM and the United Automobile Workers union are trying to persuade Congress to sanction $3.75 billion to support the $25 billion in loans authorized in 2007. The auto major is also asking for up to twice the original funding amount, on account of a sudden hike in the demand for fuel efficient cars. GM is trying to get Congress to take a decision by September, so that the money would be available in 2009. Critics have cautioned that the loans are a bailout.

Fitch publishes a variety of rating opinions, scores and other relative measures of financial or operational strength. The most common are credit ratings, but Fitch Ratings also provide specialized ratings. These ratings provide an opinion on the financial health of an organization to meet financial commitments; these ratings are used by investors to indicate the likelihood of getting a return on the money and the terms under which it was invested.

Fitch issued five upgrades and 10 downgrades in July 2008, compared with four upgrades and 40 downgrades in June. Fitch has issued 271 upgrades and 793 downgrades through July 2008, compared to 133 upgrades and 35 downgrades during July2007. The downgrades of financial guarantors led to negative ratings in 2008.The equipment lease and auto loan sectors showed positive rating activity in July 2008. On the other hand, the aircraft and small business sectors saw downgrades during this same period.

In July, Fitch affirmed 149 ratings in the student loan, auto loan, equipment loans, small business loans, new assets, structured debt, airplane loans, and dealer floor plan sectors. Fitch expects the proportion of upgrades to downgrades to come under heavy pressure from current economic concerns.

Plummeting house prices and over-leveraged borrowing are common-place scenarios in most of America’s cities. According to first-quarter data from TransUnion, a credit-reporting company, seven of the 10 most credit-delinquent cities in the U.S. exceed the national average by two or three times.

In Stockton, California, 8.87% of borrowers were 60 days behind on their loan payments in the first three months of 2008. Laredo in Texas is the top debt-burdened city for auto loan delinquencies at 2.2%. Pine Bluff in Arkansas has the most number of people behind on their credit cards, at 2.28%.

Filings for foreclosure leapt 55% in July, compared with 2007, and increased by 8% since June, according to RealtyTrac. Across the country, more than 272,000 homes received foreclosure notices this July.

Central California is under the spotlight, as the nation’s second-highest state for foreclosure rates behind Nevada, according to RealtyTrac.