10 Signs It’s Time For A New Car

10 Signs It’s Time For a New Car

1. Your heater stopped working.

Stove Heater

2. Alternatively, your air conditioning is shot.

airconditioner

3. Your locking mechanism isn’t working.

car-door-lock-fixed (1)

4. Or, your door handle came off all together.

car-door-repair-win-knob (1)

5. Your seats were so destroyed, you had to replace them…with patio chairs.

fun_car_repair_4

6. Your windshield wipers need to be operated manually.

wiper blades (1)

 

7. Just like your brake lights.

ghetto-fix

8. Your sun roof won’t close.

sunroof open

9. And you had to get creative when your side-view mirror broke.

Taped Mirror

10. Last but not least, your car is more duct tape than it is car.

duct-tape_3-jpg

Should We Repo It?

Should We Repo It?

QUESTION:
Four months ago my girlfriend bought a 2007 PT Cruiser for $9700. The window had a sticker showing it was a 2008, but that was not the case. She put $2500 down and traded in her 2004 Nissan Altima that she still owed $2300 on. The used car dealer told her he would pay it off but he only sent $1000 to the finance company leaving a balance of $1300, which my girlfriend is still making payments towards. The PT Cruiser needed all the motor mounts replaced, which the used car dealer refused to pay for. The cost for that was $704. A few days ago the timing belt broke and that will cost an additional $1300 to repair. We don’t have the funds to fix this and the dealer will not take responsibility for anything. Can we just have the finance company repo it? What do you advise we do? Thank you and hope to hear from you soon.

ANSWER:

Joe, I’m so sorry to hear your story! The dealership has the responsibility to pay off the car that was traded in by you. Take a look at the paperwork your girlfriend signed to make sure you were given $2300 for the trade? And does it have the $2300 for payoff? The dealer will have to pay it off to receive the title to the vehicle in order to sell the car. The title will not be given to the dealer unless the car is paid for. I suggest you call the attorney general of your area and report the dealership. Then I would call the lender that your girlfriend is paying the monthly payments to and tell them the story you just told me. See what help you can get from them. They may refinance for you in order to help keep the loan together or put off some payments until you get your car fixed. I never recommend repo because it will hurt your credit and will make you pay a lot higher interest on the next car. But sometimes we have to do what we have to do to survive. I can only hope you run into a dealership that will help you next time and not hurt you!!!!

Thanks for sending me the great question and hopefully your currently lender will step up to the plate!!

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760

Is my credit score too low?

Is my credit score too low?

QUESTION:
Todd, We have a good friend that purchased an Optima through the dealership.  Our situation is different.  I have a credit score of 680.  Is the score too low to qualify for low rate financing on an Optima?  We will have $2,000 down with no trade.

ANSWER:

Micah, thanks for the question! I’m curious as to what source you are using to know that you have a 680 score?  What I have found in this industry is that there are several criterion that are used for purchasing.  If you are buying a house they (the lenders) have a certain list of things they think are important and will allow them the best view of you and your history to ensure repayment.When you are buying a car it is a different list.  I have people that monitor their credit from home and think that the scores they see on those reports are the same scores a lender looks at when determining their risk in a car deal.  I have found the people that come in with a score from a monitoring system appears around 100 points lower than what the lenders see. Kia finance will usually offer low financing to scores higher than 670.

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760

Am I able to…

AM I ABLE TO…?

QUESTION:
If I cosigned with my ex boyfriend and now he doesn’t want me on the title, am I able to take myself off of it?

ANSWER:

Great question! If your name is on the loan, the lender will not allow you to take your name off of the loan unless your boyfriend can refinance the loan without you. You could take your name off of the title, but you must remember your name is still on the loan and you will be responsible for a loan on a car that you do not own. If your ex decides to not make payments on the car, your credit will take a hit and you wont be able to sell the vehicle without being on the title.

Be Careful!!!

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760

Is it true?

IS IT TRUE?

QUESTION:
If a dealer suggests its better for me to use their financing…. Is that ever true? He showed me the numbers and it seemed to make sense but I am skeptical because I can get 1.7% loan at my credit union. He showed me different options of 0% interest and NO $1500 rebate, OR 2.9% interest with the rebate… All for 5-year loans. His numbers appeared to be in my favor by taking the rebate at the 2.9%.

ANSWER:
The best thing for you to do so that you can see which choice is better is to use a payment calculator (Click Here) on our site or someone else’s. Plug in the bottom line that you will be financing with your credit union rate. Now I’m assuming you CANNOT get the rebate unless you use the manufacturer lender but ask to make sure. So then see what the finance charge will be over the 60 mos. Then plug in the bottom line again which should be less the rebate and plug in the 2.9 and use 60 mos and compare your finance charge. Whichever is less will be your answer!!!

Thanks so much for your wonderful question and don’t hesitate to let me know how things go!!!Sincerely,
Todd Helmick

Royal Automotive/Lexus of Tucson
Phone 520-795-0760

What should I do?

WHAT SHOULD I DO?

QUESTION:
Todd, I am emailing you to ask you a question. I purchased the vehicle that I have under an impulse around a year ago. I am having problems getting out of it because I owe more than it’s worth and my credit isn’t so well. I was wondering what I can do to get into the car I want with the payments I want as well, without having to pay $15, 000 down to get into a new vehicle. I am looking to see if I can purchase a new/used SUV soon.

ANSWER:
Wow!! $15,000 is a lot of money to put down to get into a car!!! Have you gone to several dealerships for them to look at your car and give you a value? Don’t let them run your credit but find out what they would give you on your car. I’m not sure where you live but we will give an “offer to purchase” your vehicle whether you buy a car from us or not. That way you can figure out the real value a dealership will give you for the car and compare to your payoff so you can figure what’s left to pay. Now you can try also to sell the car privately but I would think a dealership would do better. Now after all of that if you find you really owe another $15,000 after you sell your car then my only suggestion is to start paying more money monthly on your car to drive down the difference. Also, during tax rebate time you can use that to put on your car to lower that difference!!! Lenders don’t want to finance to much over what a car is worth and if you try to roll too much money from another loan over on a new loan they will decline. Looking from the lender’s point of view, if they finance more than what the new car is worth and something happens, like an accident or theft, they will never get their money back on what they loaned, so that would be a bad risk for them to take.

Hopefully this gives you something to think about and if you are in Tucson or close stop by 4333 E. Speedway Blvd. and let’s see what we can do!!!!!

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760

Expect Growth in Subprime Market This Year

By Nick Zulovich, Editor
January 04, 2013

SANTA MONICA, Calif. — When Edmunds.com considered the Top 10 trends expected for 2013, an even higher increase in auto loans to subprime consumers made the list.

Senior analyst Jessica Caldwell stated several times during a conference call on Thursday that the subprime market is an area of growth.

“Looking back at what’s been able to drive the industry, expansion of the credit profile for different types of consumers has certainly helped,” Caldwell said. “I think that will be another driver going into 2013. Especially since this credit is cheap, people are not paying as high an interest rate as they once did. That makes their purchases a lot more affordable to them.”

Recent data shows the New Year began with subprime market momentum.

Experian Automotive’s Q3 State of the Automotive Finance Market Analysis showed an even higher majority of used-vehicle buyers fell into subprime credit tiers.

The report indicated the total subprime financing market for used vehicles in the third quarter increased 5.47 percent year-over-year to 54.43 percent, up from 51.60 percent in the same period last year.

Experian’s analysis also determined that loans financed for new vehicles to customers with nonprime, subprime or deep subprime credit ratings increased to 24.84 percent in the third quarter, climbing from 21.87 percent a year earlier.

Caldwell thinks that trend should continue even though the U.S. economy is still facing some headwinds.

“Despite any uncertainty that lives out there, people still have to buy cars,” Caldwell said. “We’re seeing that through all of these things that seem fairly scary and negative, the Euro zone crisis, the debt ceiling, the fiscal cliff; people still have to buy cars.”

Article: http://subprimenews.com/spn/news/print_story.html?id=2719

Negotiation Tools

CAN A FACTORY REBATE BE A NEGOTIATION TOOL?
QUESTION:

Todd,

Can a new car dealer use a factory rebate amount as a negotiation tool to haggle over the final price of the vehicle?
-Javier

 

ANSWER:

Great question!!!  Rebates come in many different forms.  Sometimes they are on a particular car and you get it if you are buying that car and others you may have to qualify for.  But never is a rebate negotiable, if you qualify for it according to the manufacturer you are entitled to get it and a dealership should never make this confusing. Dealerships are actually audited on this and will not get paid on the rebate if rules were not followed.  You can negotiate on everything else if you are shopping at a store that negotiates.

My recommendation is that you also shop at a dealership that does not use negotiation tactics to see what type of deal you can get. Chances are, you will end up getting the same, if not a better deal at the “non-negotiation store” and you will have saved a HUGE amount of time.

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760

How Much Can a Family Member Help?

HOW MUCH CAN A FAMILY HELP?

QUESTION:
Hello,
I will try to make this question simple! I have bad credit & will be filing bankruptcy soon.  I need to get a used car and my budget is less than $13,000.  I would definitely be able to make the monthly payments.  My younger brother who is 26 years old does not have a license or a permit but is willing to finance the used car under his name and he would let me drive it. Is there any alternative solution than this?  Any kind of suggestions would help.

Thank you! –Yumi (From Pennsylvania)

ANSWER:
Well you are in luck- It is possible to file bankruptcy and still get a car!!! I would NOT recommend using your brother for a couple of reasons…#1 you need to reestablish some good credit and if you let him buy your car then no one will know that you have made all the payments (financing a car is a great way to re-build your credit score). #2, it’s illegal. The lenders want to know where the car is and who the real owner is. Don’t feel bad because I do have a lot of people ask me that same question. Something worth considering is having him be a cosigner on the loan. You are very lucky to have a brother that is willing to help you with re-establishing your credit!
Remember, to a bank or lender everything is based on “risk”. If you lower the risk, they (the lender) will be willing to take a chance on you!!!  By coming to the table with a down payment, this will lower the lender’s “risk” and improve your chances of getting a loan approved. So hopefully you can convince your brother to help lower the risk of the car loan.

Keep in mind that to get a car loan while you are in bankruptcy, there are some rules you need to adhere to. For example, you must have done your “meeting of the creditors” before most lenders will let you borrow money.  You also must keep in mind that you may not be able to buy you DREAM vehicle. $13,000 will buy you a reliable car or an unreliable car. Make sure it is as reliable by doing research on the brand and vehicle history. Rebuilding your credit is a long road, but it is easy if you take smart little steps at a time. Doing things correct now will make your life easier in 4 to 5 years from now when you want to upgrade to a better car.

Hopefully I didn’t complicate things too much for you and gave you a little information that you can use to help your car purchase be more understandable for you!!!! Good luck and let me know how things go!!!

Sincerely,
Todd Helmick
Royal Automotive/Lexus of Tucson
Phone 520-795-0760