...a new car loan is not always the best way to deal with money issues...
(PRWEB) February 26, 2014
Complete Auto Loans has just released an article giving advice to car owners to help them decide whether or not to refinance their cars. A lot of car owners are wanting to get better deals on their cars, or to lower their monthly fees. However, a new car loan is not always the best way to deal with money issues, as it can be damaging to car owners in the long run. The article can be found here.
The first piece of advice that Complete Auto Loans offers to car owners is to look at the going interest rates on new car loans. If the current interest rate car owners have on their loans is better than the going interest rate, then refinancing would be harmful, not helpful to car owners.
The second piece of advice that Complete Auto Loans offers is for car owners to look at how much they will save in the long run. The longer car owners extend their loans, the more they will have to pay in interest, regardless of their monthly payments. Unless drivers are unable to make their current payments, they should refuse any plans that increase the amount of money they will be losing in the long run.
And finally, Complete Auto Loans reminds drivers not to get a car loan that will last longer than their cars. Citing Dave Ramsey, they state that "your brand new car will lose 25% of its value the moment you drive off the car lot. In 4 years, you car will have lost 70% of its value." With cars depreciating so rapidly, it is unwise for drivers to get car loans that will outlive their cars.
Complete Auto Loans is an internet-based auto lender that lends to a broad group of the population without basing lending decisions on demographics or location. Complete Auto Loans subscribes to the theory that all borrowers are equally worthy of getting a car loan, and that interest rate decisions should be solely based on whether or not individual lenders have an employment history that is substantial enough to justify the value of the loan. Complete Auto Loans is also in the forefront of the move away from the FICO score as a credit gauge, and towards a more comprehensive evaluation of credit-worthiness that takes into account more than just the quantifiable histories of borrowers.