car loans ferrari girlCar Loans are one of the largest debts consumers carry (after a mortgage) and a recent study shows one out of four custormers will pay $1,000 too much – all in financing costs.

At issue are car loans through dealerships when buying cars.

The Consumer Federation of America, a Washington, D.C.,-based consumer interest group, said consumers often pay additional fees in that process – totaling as much as $1 billion nationwide – without realizing they qualified for cheaper financing.

What happens, the group said, is that a bank approves an interest rate, the dealer tacks on additional percentage points as a kind of service fee and then the dealer and lender split the difference.

About half of car buyers choose financing through the dealership. The reason is quite simple – we can’t escape the hammerlocks of the salesman-sales manager “tag team” and just walk out the door, and find our own financing.

Go to your bank, or credit union, or even get on the internet and find the best interest rate that you qualify for in a auto loan.

Use the $1,000.00 you save for a Cancun “getaway”.

Using your car as collateral to get a short-term loan can be a good option for you if you need quick cash. You can continue to drive your car during the loan period, and as long as you repay the car loan within the allotted amount of time, the transaction can be smooth and efficient.

Obtaining this type of car loan is easy – all you need to do is complete an online form and submit it. You will be contacted by a loan agency that will first confirm whether you own the car. If all the paperwork is in order, your loan will be approved.

Another option is to personally go to the loan agency’s office to negotiate the loan details. Then you can walk out with the loan in hand. Whichever way you follow, the important thing is that the application process for auto loans is quite simple and hassle-free.

As long as you can prove that you own your car, car loans mean guaranteed cash. There are no questions asked about your credit history, so that, you can receive the loan even if you have bad credit.

The maximum loan period is usually 30 days. The bottom line is that you have to pay back the money within this period. You don’t have to worry about rising interest rates or monthly payments. Car loans are designed as one-shot deals to help you during emergencies. There is no long-term commitment. You can even apply for the loan, receive it, and then return the money borrowed if you realize that you do not need it. Your responsibility is limited to the loan amount. Thus, auto loans can help you get right back on the track to financial security.

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