Car Loan Interest, the Never-Ending Debt

Car loans are a necessity for most, because it provides you with the flexibility to finance a dependable ride. However, if you receive a loan with a high interest rate, it can make this option expensive, thereby leading to a higher monthly payment. Therefore, it’s important to follow these steps before getting a loan, as it can help you receive the best rates:

Check your credit

The best way to determine if you are a good candidate for credit is to check your score with all three bureaus. While there are many websites that say they can help you, the best approach is to ask each bureau personally, as you are entitled to a one free report from each annually. When you receive them, be sure to check and dispute any errors you may find. By knowing your credit score, it can help you prepare for the kind of rates you may receive. It may also give you pause to hold off on the purchase if your score is low and you want to improve it before financing.

Comparison shop for rates

If you apply for financing at a dealership, it’s likely they will do this for you. However, if you want to receive financing before stopping by, you should compare rates from different lenders in your area. One of the best ways to go is credit unions, as they offer lower rates than banks. It’s important to note that credit unions do have membership qualifications that may include employer, county of residence or other factors, so be sure to see if you qualify.

Meanwhile, if you have a car loan and want to settle your debts quicker, you can try to refinance it. Here are a few ways to do this:

Ask your lender for lower rates

If you have been making your payments on time, then contact your lender and see if you can do a refinance through them. In many instances, they will be happy to accommodate you because they want to keep you as a customer. If they are able to refinance it, then you will receive a lower interest rate, which will result in a lower monthly payment. Now it’s important to note that in some cases, a refinance may extend your loan. Therefore, be sure to understand the terms before agreeing to them.

Shop around for better rates

Much like you would do when financing a car purchase, you can shop around to see if lenders can give you rates that are more favorable. Before doing this, be sure to know how much you owe on your loan, its interest rate and whether there are prepayment penalties. Additionally, be sure to know the value of your car because banks will factor this in when determining whether they want to approve your loan. You can use a site like Kelley Blue Book to gain a ballpark estimate of what your car’s value is.

For many, financing a car is the best way to ensure they receive a dependable ride. If you decide to do this, be sure to check your credit and shop around for the best rates. If you have a car loan and want better terms, ask your lender to see if they can make any concessions for you. By doing these, it may help you receive a low interest rate, which can free up cash quicker and help you pay off your loan faster.

Jeffery Sterner blogs about personal finance, and debt management for America’s Debt Help Organization—Debt.org.

Four Things You Should Know Before Shipping Your Car Overseas

It’s not every day that you need to ship your car overseas. However, if you ever find yourself in a situation where it needs to be done, you should be more than 100 percent prepared for what that entails. That means exploring all of your options, knowing the rules, and filling out the necessary documents. Here are four things you should know before starting the process of shipping your car overseas.

1. There are several different ways to ship your car overseas.

A car can travel overseas on a plane or a boat. Having a chartered plane fly your car is a lot more expensive than putting it on a boat. There are three different ways to ship your car via boat.

-          Roll on/roll off: It’s where your car is driven on the deck of the ship to be blocked and braced before the start of the journey. This is the cheapest way to ship your car abroad.

-          Regular container: Your car is placed into a container with other people’s stuff. While a container would protect your car from bad weather and other unforeseen circumstances, your car would still be exposed to other cargo items.

-          Exclusive container: This is the most expensive option, but it’s the safest one. Your car is the only item in the container, along with any other belongings you may have. No one else can gain access to your exclusive container.

Also keep in mind that the larger your car is, the more it will cost to ship it. For example, shipping custom vans would cost more than shipping Honda Civics.

2. Your auto insurance policy may cover overseas transport.

Before you go out and purchase shipping insurance, check with your car insurance company to see if your policy already covers overseas transport. If not, you should get shipping insurance. It’s about 1.5 – 2.5 percent of the value of your car.

3. You shouldn’t leave any more than a quarter tank of gas in your car.

Auto carriers prefer to have cars that carry only a quarter tank of gas because this decreases the total weight they have to carry on their ship. Also, it’s generally required that you remove everything from your car except for the spare tire and the jack and have your car thoroughly cleaned and serviced prior to shipping it.

4. Most auto shippers will manage the paperwork and custom regulations for you.

You need to have all the necessary documents ready before putting your car on the ship. Putting together a lot of documents and ensuring that you follow the destination country’s custom regulations can be stressful and overwhelming, so it’s a good idea to go with an auto shipper that will do all the dirty work for you. Here is a list of the documents required to ship your car to another country:

-          The title, which must be clean and clear of any liens.

-          If the title has a lien, the lien holder must give permission in the form of an original letter of release and three certified copies of the title.

-          A Bill of Sale, depending on which port the car will sail from.

-          A photocopy of your driver’s license.

-          If you just purchased the car, you must provide an original certificate of origin from the dealership that sold it to you.

Chiara Fucarino is a guest blogger who has written on mostly car-related subjects, such as GMC Conversion Vans.