Car Insurance

I have written before that the most important thing to consider when applying for an auto loan is the current auto loan rates. These loan rates are responsible for determining how much you are going to end up paying for the car. So the most important thing you have to me in the look-out for is low car loan rates. In this article I’m going to talk to you about the current auto loan rates and give you some extra tips on the best places to look for low loan rates.

First off, you should know that there a 4 main different kinds of auto loan rates:

• 36 month car loan

• 48 month car loan

• 60 month car loan

• 72 month car loan

Each of them have different loan rates that fluctuate between 6.5% and 14%, sometimes climbing up to the 15% or 16%. The actual rate depends on you location and if you want a new auto loan or a used car loan, but the general rule of thumb is the lower number of months for the auto loan, the lower the car loan rate. Of course if you want a used car loan you should expect slightly higher loan rates than for new cars.

I’ve learned that depending on where you apply for your auto loan, you can expect to find lower or higher rates. I won’t talk about it in-depth but you can anticipate lower auto loan rates from credit unions and higher – but safer – rates from the auto dealers.

Auto Loan Rates Different Locations

If you are part of a credit union, you’ll be able to opt for larger auto loans with lower auto loan rates. You should check your union and compare the auto rates with your local bank to see which one is better. The other place, auto dealers, can offer you auto loans with a slightly higher loan rate but are much safer. When I say safer I’m saying that the whole loan process faster and approval rates are much higher.

But don’t worry if you’re not a member of a credit union or only find high auto loan rates with your auto dealers. There is another kind of auto loan you can apply for called a home equity auto loan. By placing your house as a collateral, you’ll be securing your auto loan no matter what. Always remember to research for the current auto loan rates until you have nowhere else to look for

Bad credit auto loan is in style since decade and many lenders offer a range of cheap yet competitive secured and unsecured loans. With an estimated one in six people having a terrible credit history in the UK, lenders have specially developed a loan package for people of such background. Bad credit auto loan is gaining popularity nowadays because it provides solution for those having dubious credit record.

If your credit record is less than perfect then getting a loan from high street lender can be difficult. A bad credit history can result from defaults on payment, bankruptcy, previous mortgage arrears, county court judgements (CCJ) or through difficult financial situation caused by redundancy or breakdown of a relationship. Bad credit auto loan can be obtained despite your horrible credit scores.

Bad credit auto loan can be secured and unsecured loans. A secured bad credit auto loan is secured against your property by offering collateral. The advantage of bad credit auto loan is that borrowers have to pay less interest rate as compared to unsecured bad credit auto loan interest rates. Payment duration ranges from five years to thirty years. So, it is convenient for the borrowers to pay off the loan early.

Unsecured bad credit auto loan is not secured against any property. Interest rates of bad credit auto loan are on higher side. Loan process is fast and simple. Since bad credit auto loan is a short term loan, it is ideal for car financing.

However, choice is yours, whether you borrow secured bad credit auto loan or unsecured bad credit auto loan, the motto is to get the best deal.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting E-secured-Loans as a finance specialist.

Recent improving performance trends in prime auto loan asset-backed securities (ABS) continued in May, according to ‘In the Auto ABS Driver’s Seat,’ a Fitch Ratings newsletter released today. Fitch’s prime auto loan ABS delinquency and prime annualized net loss (ANL) indexes both posted further improvements in May.

Delinquencies of 60 plus days or more dropped 4.8% in May to 0.40%, versus that of April. Delinquencies are 23.1% lower through May 2005 versus the same period in 2004, and the index is at its lowest level since June 2002. Prime ANL dropped 21.4% in May to 0.66%, the 16th consecutive monthly decline and the lowest level in more than five years. Prime cumulative net losses (CNL) were 0.85% in May, down 3.4% from April and 11.4% lower than in May 2004.

In the subprime sector, delinquencies of 60 plus days or more rose to 2.30%, up 8% versus April, but 4.6% lower than one year ago. ANL continued to improve in May dropping 2.8% to 4.86%, 26% lower than in May 2004, reaching its lowest level since June 2001. However, volatility persists in this sector, and delinquencies and losses are expected to pick up in the summer months, which are seasonally a weaker period.

The latest edition of ‘In the Auto ABS Driver’s Seat,’ a monthly newsletter that tracks retail auto loan performance, auto industry trends, and developments in the auto ABS securitization market, is available on the Fitch Ratings web site at www.fitchratings.com in the ‘Structured Finance’ sector page under ‘ABS’ in the ‘Newsletters’ section.

Fitch’s rating definitions are available on the agency’s public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.

Standard & Poor’s today assigned its triple-’A’ ratings to Oracle Epsilon Funding’s JPY6.2 billion floating-rate and JPY15.6 billion fixed-rate notes. The notes are ultimately backed by a pool of auto loan receivables originated by Orient Corp. (Orico).

Standard & Poor’s ratings address the timely payment of interest and full payment of principal by the legal final maturity date of February 2007.

The notes are secured by JPY21.8 billion in fixed-rate bonds issued by Orico Maple Funding (OMF). The bonds, in turn, are secured by a senior beneficial interest in a trust created with Sakura Trust & Banking Co. Ltd. from a pool of auto loan receivables originated by Orico. Orico has entrusted an aggregate amount of about JPY25 billion of auto loans to the trust and has also purchased a subordinated beneficial interest of roughly JPY3.2 billion issued by the trust.

The ratings are based on:

– Overcollateralization of approximately JPY3.2 billion, or 12.8% of the
securitized pool;

– A reserve account to be funded at closing with about JPY340 million;

– A relatively high level of excess spread that is expected to continue over
the life of the transaction, and can be used to redeem part of the principal of
the senior certificates equivalent to the amount of defaulted auto loans;

– The status of Oracle Epsilon and OMF as special-purpose, bankruptcy-remote
entities; and

– The existence of a swap agreement that will be contracted with an ‘AAA’
rated swap counterparty to mitigate any mismatch in interest rates between the
notes and the underlying receivables.

Farmers Insurance, Colorado’s second-largest insurer, with more than 479,000 auto customers, and Citibank have joined together to offer auto loans through Farmers’ 614 insurance agents.

Farmers will also offer credit life and disability coverage where approved, through its life insurance company, Farmers New World Life.

The program has been launched in Colorado, Nevada, Oregon, Arizona, and California. It will be expanded in phases to the remaining 24 states where Farmers Insurance operates.

Customers can contact their local Farmers agent at the time they want to purchase an automobile and obtain or refinance a loan. Notification of approval will usually occur within three hours.

“Providing competitively priced auto loans is another step toward our business strategy to offer an assortment of companion products and services to meet the needs of our customer base,” said Don Mealer, assistant vice president, regional operations, at Farmers. “We are excited about the opportunity to work with Citibank, one of the premier financial institutions in the world, on this venture,” Mealer added.

“Citibank is honored to have been chosen by Farmers to participate in this program. Citibank will integrate its lending expertise with its efficient servicing capabilities to offer a superior auto loan product to Farmers’ customers,” said Denis Moore, vice president and business manager for auto finance at Citibank.

With headquarters in Los Angeles, Farmers Insurance includes the third-largest auto and homeowners insurers and one of the nation’s leading commercial insurers, and also operates a major life insurance subsidiary.

Citibank is a subsidiary of Citicorp, a global financial services organization serving individuals, corporations and governments in 98 countries. The corporation has businesses dedicated to serving the full spectrum of financial needs for consumers in more than 50 countries.