Getting a New Auto Loan Is the Craziest New US Buying Trend
Getting a new auto loan is easy now. You can get all information online. Just a few clicks will help you crack a good deal. It is better to do research about the different lending institutions in order to know from beforehand what is in store for you. Apart from the banks and credit unions, there are private lenders who are quite popular in lending money to people in need of the same.The banks and credit unions in the US follow a standard guidelines as far as approving a new auto loan. The normal eligibility criteria are:• A person should be of 18 years of age and above
• Must be a citizen of the USA
• For salaried employees: they must have worked in the current company for at least a year
• For business men: they should be in the business for a minimum number of yearsUsually, the interest rate differs from one bank to another. The documents that these institutions require include an address proof, identity proof, and for salaried people they need to submit their income proof. People with a good credit score usually don’t have to worry about getting a car loan. Today, the loan application process has become very easy and simple – you just need to access a desktop computer or a laptop with a steady Internet connection to visit your selected bank’s website and fill up their auto loan application form. After you submit the form, the bank officials will either send you a confirmation email or will call you up to know more about your loan requirements.Getting an auto loan with bad credit is also possible now although not from the banks or credit unions. If you have a poor credit score or no credit because of a bankruptcy or missing payments, divorce or unemployment, you can approach a private lender in your area. There is always the option of collecting adequate information about the lenders in your area by visiting their sites. You can even ask for an online auto loan quote in order to compare and find out which one of them is offering the best rate per month. Thus, no longer the US residents will have to sit back thinking they won’t be able to purchase a vehicle because of insufficient cash. The private lenders and many dealers who have a specialized lending wing offers any amount of money to get in a car.People who wished to celebrate this new year 2014 driving their favorite car can now turn their wish into reality be applying for a new auto loan online! People with a good credit rating can also apply for a loan from a private dealer/lender. However, it seems the secret behind the rising popularity of the auto lenders lie in giving instant money to people with a not so good credit. The private lenders ask for a lower rate of interest in order to help people with a poor credit easily manage the monthly payments. Besides, most dealers/lenders ask for a low down payment and often a zero down payment to avoid exerting a financial burden on the borrowers.
Auto Financing Online – Get Pre-Qualified for an Auto Loan
Before you start shopping for a new or used car, make sure your finances and credit are in order in advance. Getting pre-qualified for an auto loan is a fantastic way to get into a new car faster. Following are some tips that can help you to secure some solid financing for your new vehicle.Auto Financing and Pre-qualificationGetting pre-qualified for a car loan doesn’t have to be hard. Most of the time, auto consumers can get auto financing as soon as they have selected a car. If that is the case, the auto dealership usually submits their loan application through a third-party, finance company. This finance company has the ability to either grant or reject your loan application. In cases where credit is acceptable, the auto loan is approved. What makes this easier is that the funds in theses cases are protected by the vehicle. However, in some cases, the car dealerships and the third-party financial institutions charge higher rates when the applicant has a low credit rating. While this can sometimes be a nuisance, you need to remember that at least you are getting financing on your vehicle. When it is possible, it is important to secure your own financing.Auto financing online is beneficial because loan amounts tend to be based on a number of financial factors such as your personal income, your total consumer debt, and other financial obligations that you may have. Therefore, you need to be aware of sale prices in relation to your available budget. Once you have secured your pre-qualified loan amount, you can start looking for your new vehicle.Getting Pre-qualifiedThere are several different ways to go about getting pre-qualified for a car loan. Auto financing online is one good way to secure a car loan if you have decent credit. Doing things in this manner, you will have the widest selection of loan options. The first step is usually to talk with your bank or credit union. These institutions offer good rates that are often better than rates you could receive from financial companies. If you have ever financed a car before, you may want to request additional loan information from the previous lender.If you have a poor credit rating you may have to get pre-qualified from what is called a sub prime lender. The easiest way to get a sub prime lender is to go online or by getting an auto loan broker. Getting pre-qualified for a car loan is just like applying for any other type of loan. The only difference is that instead of going off of official credit information, they will be going off of unofficial personal information that is stated by you. Success will result in you receiving a pre-qualified offer.After your acceptance of the pre-qualification offer, the lender will send you a written note that does not guarantee the loan but allows you to submit an official application for the loan. once this application has been validated, and proof of income has been proven, the lender will either retract the offer or grant you the loan.
SR&ED Tax Credit Financing – The Only Two Things You Need to Know About SR&ED Finance
SR&ED Tax Credit Financing is somewhat misunderstood, or in fact not really considered by many Canadian business owners and financial managers in Canada. We use the word ‘considered ‘simply because many SRED claimants are not aware that their SR&ED claims can be financing as soon as they are filed – in some cases prior to filing!So let’s return to our topic – what are the two things you need to know about financing your SRED tax credit. We’ll keep it simple -1. You have to have a SR&ED claim to obtain financing for the claim!2. A SRED financing claim is in fact similar to any business financing application – frankly it’s quite simpler and more focused!Is that it? Yes, it’s as simple as that. SR&ED tax credit financing is one of the most unique ways to bring valuable cash flow and working capital back into your firm. Just the very nature of SRED itself suggests that your firm relies heavily on the credit to recover the capital you have spent under the government’s quite generous non repayable grant.So let’s return to our point # 1 – to finance a claim, you need a claim. The SRED program in Canada is the governments rebate; in effect it’s a grant, back to Canadian business for any investment you make in research and development. More and more information is coming out everyday from government and private sources which suggest that many firms who are eligible for the program either aren’t aware of it, or even more disappointing, don’t know how to go about preparing and filing a claim. We are often amazed when some clients infer that it’s ‘too much trouble ‘to prepare a SRED claim.A couple of points can be made on this subject. We have met a small handful, and we repeat small handful! Of clients over the years who prepare their own filings. This of course is possible, legal, and in some business owners minds ‘cost effective. The hard reality is that most firms don’t have the technical and financial know how to complete a claim on their own. (Apologies to the firms which successfully prepare a file their own claims – you know who you are!)The majority of claims in the SRED area are prepared by what is known as SRED consultants. We tell clients that these consultants are high specialized, are up to date on current government SRED and accounting matters, and in most cases work on contingency – meaning that they prepare the claim at their own risk and time, and charge a fee which is totally based on success of the final claim approval. If Canadian business owners and financial managers don’t choose to pay a contingency fee then they can play a flat rate based on the SRED consultant’s time on the claim and filing. Naturally more often than not the SRED fee has to be paid as soon as the claim is completed, even if you still have to wait several months to a year to get your funds.More importantly, as it relates to the financing of the SRED claim, a claim tends to be more financeable when it is prepared by a reputable consultant in this area. And in fact when you claim is financed, either at time of filing or prior, the SRED consultant can also be paid in full or in part out of the financing.So the bottom line on our point # 1 is simply – make yourself aware of the program if you are not, prepare a solid claim with the use of a reputable consultant, and be knowledgeable that the claim can be financed during preparation or at time of filing.Let’s move on to point # 2- Clients ask, is it really that simple to finance a SR&ED tax credit. There is only one answer, which is of course yes. You should treat your SRED tax credit financing just as any other basic financing. Because this area of Canadian business financing is somewhat of a boutique are you should ensure you are working with a credible, trusted, and experienced advisor in this area.Let’s cover some of the very simple key basics around the financing of your claim. Most firms are eligible, under the program itself, to receive anywhere from 20-50% of your expenses in the R&D area. Your SRED claim will ultimately have a final value, which is made up of the federal and provincial portions combined. Let’s assume its 200,000.00 as an example. You and your accountant have filed your year end financials, and included a SRED claim of 200k. What happens now if you want to finance that claim. The reality is that you simply have to fill out a standard business financing application – just as if you were borrowing for any other matter. In our case the ‘collateral ‘, if we can call it that, it’s the SRED claim.Important to note hear that you are not incurring debt or creating a ‘ loan ‘ on the SRED – Your balance sheet stays intact, you are simply ‘ monetizing ‘ the SRED claim in order to generate working capital and cash flow now. Generally you receive approximately 70% of the claim as an advance, with the 30% held back and payable to yourself in full when you final claim is audited, approved, and that cheque from the government is ‘in the mail ‘! The financing feels itself, associated with the tax credit financing are deducted from that final 30% holdback. You can generally create a SRED loan for a period of a minimum of 60 days, but most SRED financing generally last from 3-12 months, depending on the size of your claim, its eligibility with CRA, and whether you are a first time filer.So whats our bottom line – it couldn’t be simpler:- Make yourself aware of this great program – prepare a proper claim with someone who is experienced
- If you are focused on cash flow and working capital needs consider financing your claim and directly monetizing this great program