Monthly Archives: August 2018

Auto Financing

You shouldn’t have to allow a bad credit rating to ruin your financial life and prevent you from getting the car you need to visit family, commute to work and safely get your kids to school. Even if you have a poor credit rating or not credit rating at all you can still get your hands on a great quality car loan. . Once you have worked out your budget you will able to pick a suitably priced car to match it.

Auto finance companies are now becoming more specifically tailored to meet the needs of people with a bad credit rating. Every company will offer a variety of alternative loans to suit everyone’s needs so even if you didn’t qualify for the loan you wanted you can still qualify for an alternative you may not have been aware of. The two main types of auto finance available are secured and unsecured loans. Secured means your car loan will be guaranteed by a main possession. In the case of cars it is usually the car itself although it can sometimes be your home in some cases.

This means if you fail to meet the payments of your car loan, the auto finance company will be able to possess your car meaning you lose money and the car you needed. With these loans it is ultimately much better for you to fully ensure you can afford the loan taking into the account the worst-case scenario. Because of this risk factor these types of loans are much easier to obtain and so many people with bad credit will choose this option.

An unsecured loan does not require a guarantee on any possession but it will require a good credit history to obtain and it is harder to get this type of loan approved. There are also other loan types and special offers available for your car loan such as a no credit check loan that does not require you to have any kind of credit history either good or bad.

This type of loan will test your ability to pay the loan back currently and you will need to be able to provide bank statements to the finance company to show your economic stability. There are also other things you could do to ensure you get your auto finance approved. If you have the time, you can do simple things such as paying household bills regularly and on time to build up your credit rating. This can have a dramatic impact on your credit history and give you a terrific boost for getting that second chance at a car loan within a few months.

You may also wish to consider if the car you have applied for affected your auto finance approval. If the car is too expensive for your current budget or if it is too expensive against your credit history your application may have been rejected on that basis alone. Before you go for your second chance at a car loan application, you should work out a budget that details all the expenses and financing you need. This should include road tax, insurance, petrol, maintenance and your estimated finance loan. Once you have worked out your budget you will able to pick a suitably priced car to match it. Choosing a cheaper car will give you a better opportunity to getting your auto finance approved.

Are You Ready to Obtain Aircraft Financing

If you’re interested in purchasing an aircraft whether it be for personal or commercial reasons, you’ll of course need to know a little bit about the aircraft financing process. Take the following quiz and see if you have the necessary understanding to proceed with attaining an aircraft finance loan.

(1) With regards to aircraft financing for aircraft under $100,000, generally what is the loan term for, say, a 15 year amortized loan?

(a) Generally, a 15 year amortized loan has a loan term of 3 years.
(b) The term for such a loan is 2 years.
(c) A 5 year term is usually imposed for this type of loan.
(d) None of the above.

Answer: (c) Because most borrowers generally upgrade their aircraft after 5 years, the 5 year term is usually prescribed.

(2) How long can the amortization schedule stretch on a loan for an aircraft over $100,000?

(a) The length of amortization can be as long as ten years.
(b) Amortization can span over as much as fifteen years.
(c) Sometimes an amortized loan of this type can extend 20 years.
(d) Most amortized loans for aircraft over $100,000 can go as long as 30 years.

Answer: (c) An amortized loan over the $100,000 mark can have a breadth of 20 years.

(3) With regards to experimental aircraft financing what is generally required of a kit-built plane versus a plane that has not been kit-built?

(a) FAA registration
(b) An appraisal
(c) A larger down payment
(d) A title search

Answer: (c) If you said a larger down payment, you are correct.

(4) What is an “advance fee scheme?”

(a) A scheme used by some unscrupulous lenders who ask for a sizeable down payment to fund experimental aircraft.
(b) An advance fee scheme is used by some aircraft finance lenders to secure the funds needed in order to conduct a title search and valuation of an airplane.
(c) Advance fee schemes are used to lower aircraft financing rates on single engine and twin engine planes.
(d) Advance fee schemes have been used in some instances of commercial aircraft financing for turbo props that are
hard to finance. An initial fee is charged by a lender with the pledge of financing the loan if the borrower pays the “upfront” expense.

Answer: (d) Beware if you’re in the market to finance any jet or turbo prop that has restrictive lending requirements. Many people have lost their money by succumbing to such a scheme.

(5) What is the best type of financing to choose if you need to make significant avionic upgrades to your aircraft?

(a) A 5-year fixed/adjustable rate loan.
(b) A 7-year fixed balloon loan.
(c) Experimental aircraft financing
(d) A 20-year fixed rate loan

Answer: (d) If you need to make repairs or upgrades every several years to your aircraft, this is the loan to choose.

How’d you do on the above quiz? Can you improve on your knowledge with respect to aircraft financing? A little “barnstorming” session never hurts anyone.