When applying for an auto loan, most buyers grapple with some question of whether they should opt for a fixed or floating rate option. The question assumes importance as car loans have a lower tenure than home loans, home loans have a 15 – 20 year tenures, during the borrower will go through a few rate cycles.

Car loans are for three to four years and maximum tenure: 7 years and that on an average. It means that a person mostly would find it difficult to gauge that whether they are entering a rising or a falling cycle. Many public sector banks, including State Bank of India, Bank of India and Bank of Baroda have started offering floating rates on auto loans. ICICI Bank was offering both floating and fixed options way bank in September 2007 and is planning to offer only floating rate loans in August 25. Private sector lenders are beginning to offer floating rate loans.

“Earlier, we were planning to increase over fixed and floating rates by 50 basis points each. However, now we feel that the interest rate cycle has almost peaked. For the customer, it will make a lot of sense to get into floating rate auto loans,” said N R Narayan, head of vehicle loan in ICICI Bank. He also said that the interest rates would move southwards after that.

Director of Acorn Wealth Govind Pathak said “Six months ago, the answer would have been definitely fixed because of the uncertainty in the interest rate scenario. Now, floating rate looks like a better option.” Though this is the immediate solution as far as the choosing the interest rate goes, auto buyers in the future will have to carefully gauge the scenario before taking a call on the right option.

Car sales drop down in July for the first time in three years as the oil price spike and measures to control inflation dampened the mood August 11 New Delhi. While two-wheeler sales grew 19.47 percent and domestic passenger car sales fell 1.71 percent in July. Dilip Chenoy director-general of the Society of Indian Automobile Manufacturers (SIAM) said “this is the first time since November 2005 that the passenger vehicle segment registered a decline. The central bank’s measures to contain inflation of the oil price hike and cost of finance has impacted growth in this segment. ”

Total sales of domestic vehicles stood at 778,907 units compared with 681,771 units in the same month last year. According to figures released by SIAM, passenger cars clocked sales of 87,724 units during the month against 89,250 units in the same month a year ago. Dilip Chenoy said the challenges continue to be the availability of finance, especially in semi urban and rural areas. Interest rates on auto loans, were in the range of 10-12 percent in 2007, increased to 12-15 percent the year. And according to auto analyst Murad Ali Baig, “Second-quarter sales are traditionally lower than first quarter since people wait for the festive season.”

Vice-president in sales and marketing of Hyundai Motor India Ltd Arvind Saxena said “Inflation is affecting the affordability of customers and high interest rates are also making it difficult for buyers to get loans. As the trend suggests, it will not be too surprising if we close the fiscal recording single-digit growth.” Maruti Suzuki India sales grew 1.45 percent to 45,757 units in July against 45,101 units in the same month a year ago while rival Hyundai Motors recorded a flat month by selling 15,061 units in July and while the sales of Tata Motors fell 8.87 percent to 12,012 units.

Consumers taking out car loans from vehicle dealerships have rocketed over the past year, and as other lenders have raised both their interest rates and their rejection rates. In spite of an overall slump in car sales in UK, Volkswagen said last weekend that it had hits its 2008 target of £1bn worth of car loans five months ahead of schedule. Volkswagen’s managing director Graham Wheeler said “We put our success down to the fact that we have more available funds and can move faster than other financial organization.”

According to Moneysupermarket.com, the comparison website, the average of the top five cheapest personal loans is currently 7.7 percent, compared with 6.5 percent this time last year. Lender are rejecting many more loan applications this year, accepting only those with the very best credit ratings. While car finance has historically been expensive compared with personal loans available in the wider market, most high street lenders have been increasing their interest rates over the past year.

Volkswagen is currently offering loans as low as 7.8 percent APR while Peugeot Citroen offers finance starting at 7.9 percent and Renault loans are just over 8 percent. Head of loans at moneysupermarket.com Tim Moss said that the success of the car finance products was driven by two factors.

We know the hardships that people trying to put themselves through school and work phase. It’s not easy to pay for school fees and school stuff, let alone attend and succeed. Student auto loans are the easiest to apply for, as well as to receive. There are many agencies available to help students. Most of the loans issued to people enrolled in college are backed by the government.
A good auto loan company can help by providing auto loans calculator. Auto loans calculator is perfect tool to calculate rates and payments. Just enter the loan amount needed along with the number of months you will want the loan term to last. Then estimate what interest rate amount will be or enter the exact amount and the calculator will provide with monthly payment total. Now students do not want to wait for offers, they want to know if they are qualified for an auto loan and how much they are qualify for. Through the internet the ability to shop around from the comfort of a person’s home is now a viable option. Online lenders offer easy to use applications that a person fill out and submit electronically. With online auto loan calculator and auto lender sites, people can calculate monthly payments and differentiate lenders in a computer.
The application that is submitted is processed and the prospective auto loan recipient will contacted by a loan service representative.

Things that you want to know about auto title loans. Auto title loan is a short-term loan secured by the title to have vehicle. The lender holds the title of the car, and often a key while the borrower keeps the car. What if you do not pay the loan on the right time? Then the lender can renew the loan and pushing up the amount due in fees and interest or the lender can repossess the car.
The danger of auto title loan is that the auto title loan can be one of the most costly as well as risky. When you falling behind on an auto title loan that typically charges 300 percent annual interest, you can lose your car even though you may have paid far more than you borrowed. The 16 states that permit high-interest auto loans, Illinois is the only state where there is no limit on the interest rates lenders can charge.
The state set down rules in 2001 covering loans up to 60 days, exerting control over auto title firms. Most lenders shift their loan to 61 days to evade the rules. Auto title loan companies say they are providing a service to people in need, but some consumer advocates say they can operate too aggressive. Auto title firms are starting to face more controls, says Jean Ann Fox of the Consumer Federation of America.

Everyone can be approved for an auto loan no matter what credit situation have.  There is a thing as a bad credit auto loan or auto loan even you have a bad credit or getting a car approved.  It is easy to get the car you need; first of all you have to realize that because of poor credit you have to prepare for a down payment.  It seems to have a heavy price but take note that it will give you a lower monthly interest rate.  Second, try to search online or search in the web, there are so many websites out there that can help you in budgeting your money and finding the perfect car.  It is easy to search online as pointing and clicking and it is quick.
Third, you must be a risk taker, but be cautious at the same time.  Because you have bad or poor credit does not mean you will never get approved for your auto loan, more companies are approving for people with bad credit.  Make sure you are signing with a reputable company, and weigh out all different possibilities.  It pays to compare and study the different plans and remember it is possible that you could not get what you’re paying for with your hard-earned money.  Last to remember is to check for hidden fees, make sure to check every detail of the auto loan to see if you are not being deceived by lenders, lenders could be imposing hidden fees.

We humans are sometimes never satisfied to what we have; we always seem to want more and more things.  In today’s competitive world we see new models of cars that being manufactured, which tantalize ourselves and increase the want to buy or purchase these great brand and new models of cars.  Some people purchasing these kinds of cars are not feasible as they are very expensive, at this juncture cheap auto loans comes into the picture.
Planning to take cheap auto loans are advised to take a substantial survey of the market before choosing the lenders from whom they take the lending.  Because competitors are always try to provide a better deal than the other ones.  If people do not do any market research then it might end up paying much more than what is required.
Cheap auto loans help people to lend a small amount of money that is required to purchase modern cars.  People who opt to take loans sell off their cars and add it up with the money from the cheap auto loans to buy the car.
Cheap auto loans involve into small lending’s where the interest rate offered also different from the usual car loans in the market.  People tend to choose variable rate for cheap auto loans as they like to pay loans fast, people who are looking to re-establish good credit ratings can also benefit from these loans.  Other aspect of cheap auto loans that they are also offered to people with bad credit rating, or foreclosures.

Want to buy vehicle and don’t have enough cash, then apply for instant auto loans, it is the quickest way to loan a vehicle.  Instant auto loan is not usually secured in nature, but there is a secured loan that you can get.  However some individuals prefer unsecured auto loan rather than the secured ones.  The difference of these two is that the unsecured auto loans are processed faster, and the best thing about unsecured instant auto loans is that you don’t have any collateral.

In instant auto loan the rate of interest charge is much higher, because the lenders are at risk as they don’t have any security.   The interest rate will be decided upon the amount that borrowed.  However, if the terms of loan define then in case if customers are at default then the lender will take the vehicle.  Nowadays many online loan companies can provide auto loans instantly at a nominal interest rate, just search around the internet and find one, it will help get your dream car without walking around town.

In auto loans there is good competition in the financial market and having good research many can definitely find a good deal.

Loans that based on auto titles are ensnaring customers in debt by charging triple-digit interest rates. Auto title loan providers typically charge 300 percent annual interest, and some states that permit high-interest auto loans. Illinois auto title loans are unregulated and they think that they can get away with anything they do, and the 16 states only Illinois set no limit on the interest rates. The only state without a single customer protection linked to auto loans title.
Auto title loan firms business do online and the annual rate charge at their stores is three hundred percent. Many auto title loans consumers will have problems, plus high gas prices coupled with a big monthly car payment. Refinancing auto loan could get a lower interest rate and a lower monthly payment, applying for auto refinancing can potentially see great savings in their budget. Auto loan refinancing works very much like home refinancing, with some difference. The exception of a title transfer fee required by law, there are no costs for the customers. Refinance will get new lender for existing loans, for a better rate, can also extend payment term, skip a few payments, add products, and add or remove a co-applicant to a loan.
The company is able to arrange loans that allow up to 90 days with no payments. The savings consumers will see vary, but can be substantial. A loan adviser then compares offers from the company’s network of lenders to find the best deal for individual situation.