Refinancing a Car Loan - Why Is It so Popular All Of A Sudden?

Typically, lenders have always only tried palming off refinancing offers on unsuspecting homeowners . They tell them that if they would only agree to a refinancing deal, they could easily lower their payments. A lot of the time though, their persuasive arguments are just a lot of hogwash. Well, apparently, homeowners are beginning to wake up to this fact. Thus the banks are beginning to try to push refinancing car loan just the way they did home refinancing in years past.

And it's a real hit with car owners, too. More and more, car owners who have bought their cars through a financing deal are trying to see if they can take the banks up on their offer and rework their terms. Car refinancing applications are up by around 30% this year over last year.

In fact, the banks are finding that they're getting more people interested in refinancing existing loans that getting applications for new car loans. Refinancing a car loan is such a popular thing these days that lenders who have traditionally never got themselves mixed up with the car financing business, are trying to jump in now.

It is somewhat understandable why all these car owners would be interested in refinancing a car loan right now. They are looking at how they borrowed to finance a car a year or two ago when interest rates were over 7%. Interest rates today are at just 6% today, they're wondering why they shouldn't take advantage of it through a refinancing deal. You might think that 1% doesn't sound like a big deal; why would people not want to go to all this trouble for that? It's not just the 1% though. Anyone who's bought a car a year or two ago, chances are that their credit rating wasn't that good then. Refinancing a car loan today, they have a chance to take advantage of their improved credit. They'll get better rates.

So this is all a wonderful idea, right?

Well, maybe it is for some people. But you do have to understand that if you bought a new car today, you would get a 5% interest rate. And there are some dealerships that offer 2%. You might do even better for yourself if you bought a new car instead of flogging that old dead horse.

Lenders apparently, want to take your attention away from the fact that if you bought a new car, you would get a much better deal. They just advertise how refinancing a car loan saves you money, so they get to charge you a little more interest than they would if they just sold you a new car loan.

Dealerships love refinancing deals because it helps them get people into the dealership so they can talk to them. They hope that they can talk them intobuying a new car from them not long from now.

Pay Off Car Loan Early. You Don't Want a Loan on Something That Loses Value

You know, when they advertise a new car on TV and they talk about soaring feelings and total freedom, then don't really tell you about how unfree it feels to be tied down to a car loan for years. A car loan does make a lot of sense to people in various life situations. But the thought of how you're committed to paying something off for years before you will own it can be less than liberating. Sensible people don't really mind a loan for a house. Most often, houses rise in value. A car on the other hand, loses value everyday. To them, to pay off car loan as early as possible is what makes sense. Where's the point paying interest on something that loses value?

It isn't just a matter of principle. You save wads of cash by not paying interest on a car loan. Often, you end up paying as much in interest as you would to buy the new car itself. Just imagine what you could do with that kind of money if it was yours.

There are other ways in which holding onto a car loan can cost you dearly. When you have a loan, you're credit score takes a beating. I for instance, had a credit score of 820. After a new car loan and three months of paying everything on time, my credit score was 800. When you have loans, your credit score doesn't like it. If your credit score is around 700 to begin with, a 20 point did can be fatal.Another reason to pay off car loan early.

Okay, so you're convinced. You need to pay off car loan early. So how do you do it?

One way would be to not pay it off immediately if you can't afford it, but to try to shave a few months off, by paying a little extra. Say that your car payment is $325 a month. Try to pay $350 a month instead. Or if you can afford it, try to pay $400 a month instead. You'll take a full year off your payment schedule. That's real savings in your pocket.

The secret is to make a few little changes just like this one that you won't notice outright. It makes things less painful. Make one extra payment one time every year for instance. It doesn't have to be a fixed time. Any time you get a little extra money – from a tax refund or a bonus or something, use it for this. Before long, you will find that you've taken quite a bite out of your car loan.

And make sure that you do not do the opposite of the extra payment, too. Most lenders will give you a payment holiday once or twice a year as if they're being nice to you. They'll send you a letter that says they can just skip a payment once or twice a year and you'll be happier for it. Don't do it. It only prolongs your loan with them, and it makes you pay more interest to them in the end.

How to Become a Car Salesman - Learning the Fraudulent Tricks of the Trade

People in general don't admire car salesmen in the used car trade. They see them as greasy, unreliable and unpleasant people. And yet, there are plenty of people out there who would like to know how to become a car salesman.

Well, if you're one of those people and you would like to know how to become a car salesman in the used trade, you will have to know beforehand the kind of unpleasant tricks you will have to pull on your customers. Here are some of them. Try to see if in the end, you still feel like it.

The first thing you need to to as a used car salesman is, you have to get customers to come into your lot to look at cars so that you can pull a few devious tricks on them. How do you get them there? You get them there with a few devious tricks, of course.

What you will do is, you advertise a few sought-after brands of car at very cheap prices. Of course, people are going to come in because they are going to wonder how you're selling such great brands at such cheap prices.

Once people step onto your lot, you show them the cheap cars, and you tell them that really, those cars are a terrible bargain because there's this, that and the other thing that's wrong with them. And then, you'll upsell them to what youreally intended to sell them all along. Once they're there, and once you've seen the lemon that a low price can get them, they will  psychologically feel a lot readier to trade up. That's the trick you have to pull.

There's another thing you have to do once customers get to your lot. You have to lowball them - give them a price that's very, very low. But you won't sell the car to them at that price. You will insist that they shop around and see if they can match your price. Once the customer wastes his time shopping around unsuccessfully, he'll come back to you. Only now, you'll say that those prices have been revised. Your customer will be so exhausted at this point that he'll just buy whatever you offer him.

Whatever car the customer seems to be interested in, you want right away to step up and say that you drive the same car or your wife does. If you're feeling a little extra sentimental, you have to tell them that your mother drives that car. Of course it's all lies. And even if it is the truth, you're only driving the car because you work at a used car dealership and you got that car for free.

If the customer seems a little bit unwilling to buy, what you do is, you offer the car to the customer for couple of days, just to get a feel for her. When you're hoping for is that when you're being so nice and generous, the customer will feel bad about returning ist just walking away.

That's how to become a car salesman in the used trade. You have to have no conscience.