DEALER FINANCING

By Casey Bond

Labor Day, arguably the best day to buy a car, is just around the corner. That means anyone planning to purchase a new vehicle or obtain an auto loan might want to do it the weekend of September 5 or possibly miss out on some really sweet deals.

Customers taking on auto loans in April were faced with the fewest new car incentives in five years. A new report released by New Jersey-based Autodata Corp. revealed that automakers reduced spending on discounts and incentives in the U.S. by 14 percent in April to an average $2,320 per vehicle.

Automakers Offer Fewer Discounts

You can find a pre-approved auto loan just about anywhere that offers conventional car loans. You may obtain pre-approved auto financing through banks and credit unions, dealerships and online. Depending on your personal finances and specific needs, any of these options have potential advantages.

Pre-Approved Auto Loans from Financial Institutions

Those looking for SUV auto loans may want to think twice after a USA Today report revealed the value of used SUVs are plummeting thanks to increasing gas prices. The report found SUV prices are dropping below the values listed in well-known buying guides, making it difficult for those who already own them to trade them in for a reasonable price.

Trade-In Values Drop for Gas Guzzlers

Those looking for auto loans this month have plenty of incentives to look forward to, but before walking out the door to a dealership, find out about the latest manufacturer recalls. It seems that almost every major car manufacturer has had to recall a vehicle at some point this year. Let’s take a look at the latest recalls announced this week.

Nissan, GM and Chrysler Recalls

Pinyo is the owner of Moolanomy Personal Finance and a contributing writer to U.S. News Money and Currency from Amex. Moolanomy covers a wide range of personal finance and investing topics, with features that include reviews, comparison guides, and Q&A sections. You can follow him on Facebook.

Fall is the time of year when car shoppers will find the most attractive offers at car dealerships. With next year’s model already on the lot and ready to go, car dealers traditionally offer some of the best deals during the last few months of the year. This can be a big incentive for consumers who are on the fence regarding their next car purchase.

If you’re planning on getting a car financed by an auto dealer, you may want to know what the definite advantages and disadvantages of taking this auto loan because dealerships function differently than independent financial institutions.

Let’s look at some advantages and disadvantages of taking the auto dealer financing route. This way, you can decide for yourself if this the right choice for you.

Are you interested in calculating the balance of your auto loan amount over a period of time? If so, you will need to understand auto loan amortization.

Morgan Cox defines amortization as: “A schedule that allows some return of the original principal amounts back to the lender. The longer the amortization schedule, the lower the payment.” In other words, auto loan amortization is basically the process of following a repayment plan for a car loan.

If you want to pay your car loan off early, there are some great ways to take advantage of this often beneficial opportunity. It is recommended, however, that you avoid diving in and paying it off without first reviewing your options. Depending on the contract you signed, you may actually be doing yourself more of a disservice than a favor.

Lump Sum or Double Payments

After a month of disappointing sales in June, automakers have decided to up the ante on their incentives for the remainder of the summer — and consumers are reaping all of the benefits. For instance, Toyota is expected to continue its incentives that include 0 percent car financing on select vehicles for 60 months.

Some other companies that are expected to get in on the action include Ford, General Motors, Honda and Nissan. Some believe that Chrysler may be offering incentives as well, but to a lesser extent (Daily Finance).