Be Prepared for the Problems in Used Car Financing With Solutions Before You Start

Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.

Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.

To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.

This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.

Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.

“For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”

Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .

The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:

Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.

SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.

Top 5 iPad Finance Apps for Business

The past two years have been a whirlwind in mobile computing and people are embracing these new devices, like the iPad, at breakneck speeds. Apple’s Fourth Quarter revenues jumped 21 percent from a year ago, including the sale of over 11 million iPads. It’s clear that the huge advances in mobile devices are not only changing how we live our personal lives but also how we do business. For business, especially small business, some of the biggest advantages are coming from the app world. If you want to make your business finances a breeze, check out these apps:

1. Square: Credit card transactions have never been easier. The developers of this free app will send you an actual credit card reader that plugs into your iPad. It’s secure, easy, mobile, and even has built in analytics to track sales, collect tips and tax, and send electronic receipts via email or text. There is no need to delay the payment process anymore. Oh, and they only charge a 2.75% transaction fee: no contracts, fees, or merchant accounts necessary.

2. Expensify has the traveling business world in an uproar. The features of this app are impressive at the least: sync banking information to track purchases in real time, digitize receipts to reduce the chance of losing them (just snap a picture and the app will discern and note the necessary info), customize and email reports for approval, and be reimbursed to your checking account. You’ll be your accountant’s best friend with the organization and ease provided by this app.

3. Time Master + Billing: With a 4 star rating in the app store, this app sets the bar for time and expense tracking. The overall best feature is flexibility to be customized to fit how you work – rounding minutes, multiple running timers, billing rates, expenses, client project/tasks, and so many more options. There are even additional modules available to include invoicing, QuickBooks export, and wireless sync between mobile devices.

4. Intuit GoPayment Credit Card Terminal: Similar to Square but a little bit more involved. It’s also a free app, but you have to jump through a few more hoops (AKA a 15 minute application process) to be approved to use this service. However, if you’re looking for a proven brand name, this may be for you.

5. QuickBooks Connect: This is a great supplement to your QuickBooks Online subscription (QuickBooks 2011 users you’ll have to get a paid subscription to use this app past 30 days). Manage customer information and balances; create invoices and sales receipts; convert estimates to invoices; email estimates, invoices, and sales receipts and more with this handy app.

Mobile computing can make all the difference in the efficiency of your business. Look for the bottlenecks in your financial administration and ask yourself, is there an app for that?

Kristi Daeda is an online marketing strategist that works with companies nationwide to define and execute powerful online marketing strategies. Read more about her thoughts on online marketing at her website [] or as featured on Mobile Apps Designers.

The Best Free Android Finance Apps

Obviously many people will be skeptical as to how good free apps actually are, with many consumers actually purposefully not downloading free apps due to fears that they will crash or being infected with various ways of stealing your money. However these fears are totally unfounded and without evidence so do not let this put you off. Now to the apps:


If you have been on the internet at some point then you will have undoubtedly heard of PayPal. The service facilitates payments between people via a simple email address, avoiding the complexities usually associated with bank transfers and the like. The PayPal Android app allows users to manage their PayPal account just as they would through the official website. The app is totally secure and allows you to make purchases or deposits also amongst other activities on the move, a very useful addition to the marketplace.

Quote Pro

Quote Pro is also an incredibly useful app, used by many on a daily basis it has fast become one of the most downloaded in its range. Not only can you obtain extremely detailed and accurate information about the range of stocks you have an interest in, but you can also keep an eye on your portfolio of stocks and shares.

Tip Calculator by TradeFields

Tip Calculator is perhaps one of the most imaginative apps I have personally seen on the app marketplace. It is incredibly useful for an aspect you will have probably have struggled with every time you’ve been out for a meal, the tip. Not only will the app inform you of the total tip you should be leaving behind, but will also divide the total tip amount between the number of people at the dinner, saving much embarrassment, delays and napkin calculations!

Currency Converter

How many times have you been in a foreign country or at the airport and have been wondering how much you will actually get in return for your dollars? Numerous times in all probability. The currency converter provided by Pocketools will enable you to be provided with an accurate, up to date and independent currency exchange valuation allowing you to shop around to find the best exchange rate. Not only does this app provide you with the current exchange rate, it will also give you data on the currency of your choice over the last 5 year period through the use of many easy to read graphs.


This is without doubt one of the best apps I have personally seen. With the rising prices of gas which look set to continue for the foreseeable future it is a great way of ensuring that you are driving as economically as possible and therefore saving as much gas as possible. I haven’t an idea about how it works but it does, the interface is also extremely slick, simple to navigate through and to understand.


Finance, whilst the name of the app may not excite you or conjure up ideas that this app is going to change the world it certainly fills a gap in the market which needed a simple app. It’s similar to Google search in many aspects, it provides a very basic user interface, but one that is incredibly effective and performs its job excellently. If you already use Google Finance or are considering starting to use it then this app is vital, it synchronizes everything meaning it’s like being on your main PC.


Financisto is another great money manager. The ability to create long and short term budgets for holidays, short breaks or just a simple shopping trip is a real plus point for this app and one which has seen it rocket in terms of popularity. In addition to this the app has the capability to check your recurring payments amongst many other essential financial activities; this has left many users of the marketplace wondering why there is no charge.

10.5 Hints to Help You Get a Car Loan

1. Know your credit score.

Get a copy of your credit report. Review it for errors and make any corrections before you try and get a loan. If there are major errors in your credit report, consider delaying your application until the corrections are completed. This will make sure you keep the car dealers honest. If you desperately need transportation, try renting a car short term until your credit report is straightened out. You may actually save money on fuel, insurance and repairs by renting which you can add to your down payment.

2. Have an explanation for your credit issues.

Don’t be apologetic. Bad things happen to good people. Be specific about any problems or crisis that caused your problem. Let the bank know about any major upheaval in your life that may have led to your problems such as an illness or a natural disaster, like Katrina, or 9-11. Make sure that you can substantiate your claim.

3. Don’t lie about anything on the credit app.

Lenders will turn reject your loan if they find you lied to them.

4. Know your income.

Make sure you can prove what you make. Have your proof readily available.

5. Save your down payment.

More down means more car. Larger down payments can sometimes get a lender to view your application more favorably.

6. Know what the payoff on your trade-in is.

If you are trading in a car with a payoff, get a ten day payoff from the lender. If you have a warranty or additional policies bought with the vehicle, find out if you can cancel them. This will lower your payoff or entitle you to a refund after the vehicle is paid off.

7. Know what your car is worth.

Check out NADA or KBB first. Go to CarMax and see what they will buy it for. Use these figures to negotiate the best trade in value. Remember, If you get more than the payoff, that amount becomes down payment.

8. Buy what you need, not what you want.

Set realistic expectations. Don’t buy more payment than you can truly afford. Rebuild your credit first, than rebuild your image later.

9. Don’t be argumentative.

Nice people get better deals than people who give sales reps a hard time.

10. Try other sources to get a loan.

Check online. Lenders such as Capital One, HSBC, Roadloans, and CitiFinancial all have websites which let you apply direct to them for a loan. You may get better rates and terms from lenders online than from a dealer.

Check your credit union or insurance co. They may have a loan program or lender relationship. A good payment history with your insurance company may help you get a loan from their bank. Credit unions can sometimes do automatic payroll deductions, which guaranty you pay the loan, so they may be more receptive.

10.5 Don’t go from dealer to dealer.

Excessive inquiries can be a reason a lender declines your application.


Don’t be misled by “Every application is accepted”

Just because a dealer says your application is accepted, that doesn’t meen that your loan is approved. Accepting your application means that the dealership will take your infomration to submit to a lender. It’s up to the lender to approve your loan application, not the dealership.


Adverse action notification under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA) requires a creditor obligation to furnish certain information to a customer seeking financing
whenever a decision is made that is adverse to the customer. This means that a dealership must submit your application to a lender for adecision or THEY (the dealership) must furnish you with an Adverse Action Notice describing why THEY (the dealership) declined to approive your request for a loan, AS SUBMITTED. Unless the dealership has their own finance company, they are required by law to either submit your application to a lender or tell you what information the dealership has used in order to decline your request for credit. If a dealership dopes not submit your application, they may be in violation of these two federal laws!

Geoff Cohen is a seasoned auto professional, with over 30 years experience. He has done it all, from sales rep to F&I Manager, New Car Manager, Used Vehicle Manager, up to GSM and GM. He has also worked as an area sales manager for a major sub-prime lender as well as run his own BHPH and Auto Leasing/Brokerage company.. He is the National Accounts Manager for AutoLending Network and is a contributing author to, a blog about Special Finance solutions for auto dealers as well as F&I Magazine and World of Special Finance Magazine

The Top 10 Dealership Scams Part 3

Car Dealers have numerous ways to scam a potential buyer. Let’s continue examining a few of them so you know what to look out for when making your next car purchase:

6. The Dealer Mark up Scam

This is an unnecessary fee that the dealer charges for no reason other than greed. This fee can be seen on the orange sticker marked on the manufacturer’s suggested retail price (MSRP).

The additional dealer markup is nothing more than requiring more money for no real reason. They can include all kinds of extra fees in the additional dealer markup.

When you see an extra dealer mark up fee, ask the dealer to get rid of it. If they refuse, it is pretty much up to you, but remember that if you do pay the extra dealer markup, you are overpaying for no real reason.

7. The Payoff Your Loan Scam

This is when the dealer offers to pay off the balance of your current car loan no matter how much money you still owe. It is a common sales strategy.
When the average buyer hears it, they think that by purchasing a new car with a new dealership, they will automatically owe no more money on their current car.

That couldn’t be further from the truth.

What really happens is that the dealership does help you get out of your current contract; however, they normally are forgetting to tell you how high your fees are going to be for breaking the lease agreement with your old dealership.

You will now be responsible to pay fees that are in the thousands to make up for it.

You also will not be able to refinance for a new car until those fees are paid. Of course the dealership can add the cost on to your contract with them at a substantially higher rate.

The dealership only agrees to this deal because they want to get more money off of your current car. They aren’t really doing anything for you at all.
The dealership will also give you far less then the car is worth on the trade off. Basically this scam works because they will up your monthly fees, and then sell your trade in for a more money than its worth.

The dealership then extends your monthly payments so that they can make it appear that you are paying a small amount monthly when you don’t even realize that you have committed to an extra year of payments.

To avoid this scam, you have to bite the bullet and ride out your current lease till the end. If you are really determined to get a new car, then you should try selling your current car on your own.

Just sell it so that the buyer just takes over the lease payments.

8. The Used Car Sold “As Is” Scam

This is when a dealership will sell you a car that has been in a car wreck, but they will tell you that the car has been completely refurbished.

When you see the car it has a sticker on it that says “as is” on it and no warranty is included with your purchase.

This is the dealer’s way of telling you that you can’t bring the car back, you are assuming all risks for the car, and that it is not under warranty.

To avoid this scam, don’t buy a car without a warranty or one that says “as is” on it. By doing this, you might as well buy a car from a stranger on the street with the same deal.

9. The Bounced Check Scam

This is when you walk into a dealership with a bank draft and the dealership charges that they can’t accept your draft because your bank bounces checks often so they now refuse checks from that bank.

Of course, this leaves the table open for them to get the extra money they want by offering to sell you a car at a higher interest rate.

You can avoid this scam first by getting your drafts from Capital One Auto Finance.

Then let the finance manager know that you are aware of the scam that they are pulling and that Capital One Auto Finance is in the business of giving loans so the checks don’t bounce.

10. The Forced Credit Application

If you are hoping to pay for a car outright or in cash with a bank draft or check that is what you should do. Some dealerships will not let you.

You will hear one of these lines so that they can try and get you into paying monthly terms for more money.

“State laws require that you must fill out a credit application before I can sell you this car.”

“Everyone that buys a car from us fills out a credit application first.”

“It’s the company’s policy”.

If you hear any of these lies, then know what’s going on. When you are paying cash why would you think that you need to fill out a credit application?

It doesn’t make sense. No state will force you to apply for credit when paying cash.

Would you have to fill out a credit report if you want to buy a sofa or groceries while paying cash? See how silly this is. To avoid this scam, just laugh in their faces.