All posts by Admin

Auto Loan Balances Hit Record High To End 2014

By
Posted in Auto Loans & Financing News

It's no secret that some people need help affording a used car. Few drivers have enough cash to cover the full cost of a vehicle, so most turn to financing options such as auto loans to help them get behind the wheel. You don't have to have a sparkling credit history to get these loans, either, as more subprime borrowers are getting opportunities to do so. 

Auto loan balances continue to grow
Experian Automotive recently released its latest report, the State of the Automotive Finance Market, which detailed the loan landscape in the fourth quarter of 2014. According to the data, the total outstanding balance on all loans reached $886 billion at the end of last year. That's the highest mark ever recorded. 

Some of that growth can be attributed to an increase in subprime loans. The volume of both subprime and deep-subprime loans grew, despite the fact that the total market share for the two segments declined from the same time last year, the report found. 

"Whenever there is an uptick in the number of loans to sub-prime and deep sub-prime customers, there is the potential for a 'sky is falling' type of reaction," said Melinda Zabritski, Experian's director of automotive finance. "The reality is we are looking at a remarkably stable automotive-loan market, in part because consumers are continuing to stay on top of their payments." 

Managing loans 
Although subprime borrowers are still taking out their fair share of auto loans, the delinquency rate hasn't grown – a good sign that these drivers are paying back their debts. According to Experian, 30-day delinquencies grew only slightly to 2.62 percent from 2.61 percent, while 60-day delinquencies fell from 0.73 percent to 0.72 percent.

This stability may encourage lenders to keep offering deals to subprime buyers. It also shows that the loans are good for borrowers as well, with these individuals able to make monthly payments and stick to a repayment plan. 

Even if you don't have the best credit history, you can find opportunities to buy used cars with the help of auto financing. The financing department at NJ State Auto is ready and able to assist you in taking advantage of these deals. Its experts can get you same-day credit approval no matter what your background is, allowing you to show up, select a vehicle and drive off the lot in a timely manner. 

Shop Around For Low-Priced Used Cars

By
Posted in Auto Industry News

Finding the right used car can be a real challenge. Not only do you have to consider the features and performance aspects that matter most to you, but you must stick to a budget. That's no easy task – especially in the current climate. Used car prices continue to climb, putting many drivers in a tough position when it comes time to buy. 

The appeal of used cars
Why are expenses so high? It all starts with the quality of vehicles currently on the market. Lightly used models have many features that drivers want, as well as some examples of cutting-edge technology, and they offer all of these perks without major concerns about decreasing value or expensive new car payments. 

"Lightly used cars are very appealing to car shoppers since they are equipped with modern technology and have already taken their biggest depreciation hit," said Jessica Caldwell, a senior analyst for Edmunds.com.

Because these vehicles are attractive options for many, the demand is greater, and that impacts price. 

Used car prices are up 
A recent report from Edmunds.com noted that the average cost of used cars reached a record high in 2014. The average price increased 5.7 percent from 2013 to hit $16,800. Some lightly used vehicles, such as those that were only 1 year old, sold for close to $30,000. Unfortunately, these expenses are well beyond the budgets of many drivers, and motorists will have to work around the high costs to find a car they love. 

Edmunds.com also expected prices to keep climbing, at least for the immediate future. However, auto financing options are also more prevalent than ever before, so the expenses may balance out and remain palatable for all types of drivers. While these high prices may be off-putting, it only underscores the importance of shopping around for the best bargains and interest rates. 

Shop around to avoid high prices
Because the average cost of used cars is increasing, it's important for drivers to do whatever they can to control expenses. There are plenty of places to find used cars for less than $10,000 – including NJ State Auto Auction. That lot is home to hundreds of Carfax-certified used cars, trucks and vans, and drivers can take advantage of the auction system to find great deals on quality vehicles. 

A Look At What Oscar Nominees Are Driving

By
Posted in Celebrity Auto News

The Academy Awards show is widely considered to be the most prestigious ceremony in Hollywood. Every year, the Academy recognizes the best creative minds the film industry has to offer, and those who are lucky enough to nab a nomination in the acting categories often go on to become some of the world's biggest stars. 

Regardless of who takes home the coveted statue, all nominees often become fixtures in Hollywood. That means you'll be seeing a lot more of these faces and learning many of the details about their lives – including what kind of cars they're driving. Answer Financial got a head start on this by digging up the vehicle choices for this year's nominees. 

Celebrities love luxury
If there's one thing many of this year's Oscar nominees love, it's their luxury cars. That's especially true among the individuals in the Best Actor category. Frontrunners Eddie Redmayne and Michael Keaton, who have been nominated for their roles in "The Theory of Everything" and "Birdman," respectively, are fans of Audi. Redmayne was seen in a silver Audi Q7 SUV, while Keaton – a former cab driver – now gets behind the wheel of an Audi S4.

These actors may be the favorites in their race, but they still have to beat out competitors Bradley Cooper, Steve Carell and Benedict Cumberbatch. Cooper, nominated for his performance in "American Sniper," regularly drives a Mercedes G55 Wagon, while Carell, who received a nod for his role in "Foxcatcher," was previously spotted driving a Porsche. 

Few low-key rides
Not every nominee chooses to get behind the wheel of a high-priced vehicle. Julianne Moore, who is the heavy favorite to win the prize for Best Actress thanks to her emotional performance in "Still Alice," prefers to drive a Toyota Prius. That's a far cry from some of her fellow nominees. Reese Witherspoon, who turned heads in "Wild," drives a Lexus RX, while "Two Days One Night" star Marion Cotillard owns a Jaguar XF. Rosamund Pike has similar taste. The "Gone Girl" actress has been seen in a Mercedes-Benz C-Class, according to Answer Financial. 

Even if you can't afford the same expensive vehicles the stars have, you can still make sure you're driving a quality automobile. Not sure where to begin? Head to New Jersey State Auto Auction. The lot is home to hundreds of Carfax-certified used cars, and one of these vehicles could be the right investment for you. 

Now Is The Time To Buy A Car

By
Posted in Auto Industry News

It may seem like it's never the right time to make a big purchase. Maybe you've had some expensive surprises pop up, your personal financial outlook looks brighter in the future, or experts have said to hold off. Those are all valid reasons for waiting, but sometimes you need to spend money – such as when you need to replace an older, broken-down vehicle. Luckily, the current economic landscape is one that's ideal for acquiring a used car. 

Why should you look to buy a used car now? Here are a few reasons the time may be right. 

1. Interest rates are low
WalletHub.com recently reported that interest rates for used cars are at one of the lowest points in years. While you may need to stretch out the payments, the longer loan terms could be ideal for anyone who is focused on sticking to a monthly budget. All you have to do is shop around for the right deal. 

2. Used cars for sale are high quality
Purchasing a used car doesn't mean you're buying a low-quality vehicle. In fact, many options are only a few years old, and as a result, they offer plenty of valuable features that make your driving experience better. Many boast impressive fuel efficiency as well, ensuring you can spend less at the pump throughout your time as an owner. 

3. You don't have to wait for credit 
Even if you need special financing to purchase a used car, you don't have to wait long to complete the process. In fact, locations like New Jersey State Auto Auction offer same-day credit approval for any buyer. You can even start the paperwork online before heading to the car lot to choose your ride, sign your name and start driving. 

4. There are other ways to save
Spending a little more money to get a car isn't the end of the world – especially with so many other ways to save. In addition to negotiating the right financing option, you can also take advantage of low gas prices to stick to a budget. Brushing up on some knowledge relating to maintenance and repairs can also help keep cash in your wallet, as you won't be spending as much for oil changes and other types of routine work. 

4 Tips For Building Credit

By
Posted in Auto Loans & Financing News

Everyone needs to start building credit at some point. The trick is to find the right time and attack the problem with the most effective strategy – and that can be tough. You don’t want to wait too long to start a credit history, but you also shouldn’t take the leap before you’re ready to make regular payments. Here are a few tips that can get your credit building started on the right foot. 

1. Stick to just one credit card
You should refrain from opening up too many credit accounts in the beginning. Start with one card and make a concentrated effort to have a sparkling record. Once you hit a year of success, you can think about adding a second card – preferably one with a better interest rate, now that your score has likely improved. 

2. Don’t reach your credit limit 
It may be tempting to put a ton of purchases on a new credit card. You might even come close to hitting the maximum limit. However, this will only hurt your score. Try to start by making smaller, more manageable purchases with the card and paying them off in full as soon as possible. As your credit limit goes up, you’ll be in a better position to close on bigger buys. 

3. Monitor your score
You have the right to check your credit score twice per year without cost. One of the major credit bureaus can provide you with the full report so you can scope out mistakes and track your progress. This also ensures you’ll spot any errors before they become a problem. 

4. Be patient when possible 
Major changes aren’t going to happen overnight. You must be dedicated to the cause and really make an effort to make smart financial decisions – otherwise, you may be doing more harm than good. Hold off on major purchases until your credit score puts you in a good position. 

If you have to buy something big, such as a used car, make sure you head to a facility that will help you out. New Jersey State Auto Auction may be just the place. The financing department can assist you in securing guaranteed credit approval and finding an auto loan that won’t put a damper on your wallet. 

3 Tips For Modern Car Shoppers

By
Posted in Auto Industry News, General Auto News

Once upon a time, buying a used car was easy. All you had to do was head to a lot, pick the vehicle and fork over the cash in exchange for the keys. While some parts of that process may remain the same today, other elements are much more complicated. That's why some buyers need a little guidance to help them make decisions. 

Here are three tips you should use to make the shopping process a breeze and to ensure you wind up behind the wheel of the right car. 

1. Online tools can help complete the process 
Many Internet-based resources can be used to make the buying process easier. For instance, the New Jersey Auto Auction website allows you to start bidding on the used cars you want without even being on the lot. You can also get started on the paperwork needed for credit approval, which can ultimately save you a lot of time. 

2. Feel free to ask questions 
Some drivers may feel they are uninformed, and as a result, they have a long list of questions they think are dumb. Don't let this fear keep you from speaking up. Edmunds.com recommended all buyers ask as many questions as they see fit – regardless if they think it makes them look like an easy target. If you're really self-conscious about it, simply conduct some research beforehand so you have a general idea of the car you're looking at or recent trends relating to auto loans. That should relieve some of the pressure and cut down on the unknowns, allowing you to focus on asking more informed, specific questions. 

3. Determine the budget yourself
There are many resources available to help you figure out your budget, so you might as well use them. Online calculators can assist you in determining how much each auto loan or interest rate will cost you in the long run. You can also look up long-term cost of ownership for certain models, which will allow you to estimate insurance and maintenance expenses. All of these contribute to the bottom line and need to be considered as part of your budget. If nothing else, this will provide you with a baseline that you can then compare to the loans a financing department offers. 

Warren Buffett Auctions Off His Used Car

By
Posted in Celebrity Auto News

Ever heard of Warren Buffett? This tremendously successful businessman has been one of the biggest industry leaders for decades. While you may not know the details about his dealings, you've probably heard about his massive net worth and numerous charitable endeavors. His latest move is no different, as Buffett is putting one of his used cars up for auction to benefit an organization in his town of Omaha, Nebraska. 

About the auction
Buffett donated his 2006 Cadillac DTS to Girls Inc. of Omaha. The charity, which was founded in part by the businessman's late wife and aims to empower young women, is selling the car to the highest bidder in an effort to raise money. 

According to The Wall Street Journal, the 8-year-old car has accumulated a little over 20,300 miles in its life. However, its vehicle history isn't totally clean: Buffett was involved in a fender-bender with the car in 2006, but he had the vehicle repaired, and it's been well-maintained ever since. It hasn't been wasting away in his garage, either – the source noted that Buffett drove the car until 2014 and then chose to donate it. 

The Cadillac's value is about $12,000, but the association with Buffett is going to raise the price tag. Also contributing to its worth is the Buffett autograph scrawled on the dashboard and the fact that the tycoon is offering to hand over the keys to the winner in person. All the car's new driver has to do is get to Nebraska and pick up the ride. Bids are being collected online from Feb. 11 to 19. 

Pick up your own vehicle
The starting bid for the Cadillac is $10,000, and the final bid will likely be much higher. While that may be too rich for your taste, there are still ways you can find used cars for sale without raising your budget or sacrificing performance on the road. 

At New Jersey State Auto, for instance, you can browse through used car deals that come in under that $10,000 mark. Not only are these vehicles great for your wallet, but they still have the safety features and high quality you're looking for. No matter what your budget is, you can find a vehicle – and financing option – that works for you. 

3 Things To Consider In A Used Car

By
Posted in General Auto News

A recent study from the AAA Foundation for Traffic Safety found that a considerable number of drivers admit to breaking the rules of the road. This occurs even despite the fact that one-fifth of drivers have been involved in a serious crash and most people recognize these practices are unsafe.

Motorists who are serious about improving their driving habits do have some options when it comes to staying safe on the roads. Some help can come in the form of special features – or the lack thereof – their cars are equipped with. If that sounds appealing to you, consider these three factors that impact safety behind the wheel. 

1. Be picky about technology 
You may be tempted to spring for a used car that's loaded with advanced technology and gadget-friendly interfaces. However, these amenities can occasionally serve as a major distraction on the roads, with many drivers attempting to justify their texting and calling instead of kicking the habit. 

"Despite the growing body of research that offers evidence about the possible dangers of using hands-free technologies, most drivers don't understand the risks and continue to use these technologies," said Peter Kissinger, president of the AAA Foundation for Traffic Safety. "The good news is that we all have the ability to make safer choices and can personally enhance our safety while driving."

2. Use cruise control 
When you're trying to look through the hundreds of used cars available at places like NJ State Auto, you're probably putting features like cruise control on the back burner. However, having this perk working can be a huge advantage if you're trying to cut back on speeding. AAA noted that about half of drivers say they go more than 10 mph above the limit, even on residential streets, and having a resource like cruise control could help prevent speeding. 

3. Trust your brakes 
According to the AAA survey, more than one-third of U.S. drivers report running through red lights. That's in spite of the fact that more than half of motorists believe this action is a serious threat to safety and a whopping 73 percent say it's completely unacceptable. For some, the reasoning behind zooming through a light could be as simple as not having enough room to stop – but with high-quality brakes, you don't have to worry. Make sure your used car has been cared for in the past and don't forget to invest in brake repair in the future. 

Pay Attention To These Maintenance Issues After Buying A Car

By
Posted in General Auto News

Once you've looked through the selection at New Jersey State Auto Auction and chosen the car you want, you're likely ready to sign off on a loan and get behind the wheel as soon as possible. That's all well and good, but you shouldn't let too much time pass without paying attention to the maintenance the vehicle needs. 

After you drive off with your used car, be sure to focus on a few maintenance tasks that can improve the quality of the vehicle and save you money. 

1. Read the owner's manual 
It's not a specific servicing task, but you should take it upon yourself to look over the owner's manual. Get an idea for how often you should be changing the oil or replacing the brakes. While the manual may not spell out an exact schedule, it can give you a few ideas and guidelines on caring for the used car. 

2. Rotate and replace tires 
Although most aspects of the used car may be up to snuff, you should make sure the tires are ready to handle your brand of driving. People in New York and New Jersey, for example, should consider installing snow tires for the winter months. These wheels can be extremely helpful in inclement weather, and they also prolong the life of standard tires. At the very least, make sure you're rotating and aligning tires as needed, as this can improve fuel efficiency and driving performance. 

3. Maintain the battery
The last thing you want is to turn the key in the ignition and hear nothing. This may not be a common problem, but it can come about if you let battery care fall by the wayside. Make sure you're having the battery maintained as needed. You should also watch how you're using your vehicle's lights and radio when it's running on the battery. These simple tasks may drain the juice and leave you stranded, so be careful and keep an eye on the time. 

4. Clean the car
Any vehicle you drive off a car lot is bound to be clean and shiny, and you should take it upon yourself to keep it that way. Be sure to go through car washes, vacuum the interior and clear out any trash. Leftover debris inside your car can cause distractions and mask odors or sounds that would otherwise warn you of problems. Washing the exterior is even more important, as it protects against rust and corrosion.  

How To Fix Credit Report Mistakes

By
Posted in Auto Loans & Financing News

Credit scores and reports are an important part of securing auto loans. Lenders need to be aware of your history so they can come up with terms regarding interest rates, loan length and other details. This is all fairly straightforward, but things can get complicated when mistakes are made in the process.

Mistakes on a credit report may have severe implications on your future finances, so you need to make sure all data is correct before signing off on a loan. Here are three steps to follow to ensure your report is accurate – even if it means contesting and fixing some errors. 

1. Get your report 
The first thing you have to do is get a copy of your credit report. Then you can look over your score and the factors that may be negatively impacting it. Any errors should be circled and clearly marked. Be sure to create your own copies for records as well. It's also important to get copies of your report from a few different credit bureaus, especially if you notice a mistake. The organizations may have different scores or errors that need to be remedied. 

2. Gather evidence
Once you identify a problem, it's up to you to collect proof of the error. You'll need to put together a dispute letter that follows the proper guidelines and support your claims with evidence. Again, be sure you're making copies of everything so you have backup in case something goes wrong. You should also send everything to the organization with certified mail, as a receipt can be sent to you upon the package's arrival. 

3. Be patient 
Then you wait. Credit report disputes usually take about 30 days to be settled, but if you haven't heard back within six to eight weeks, contact the organization again. Should the bureau recognize the mistake, it will fix the report, send you an updated history and let other providers know about the error. 

When you need a car to get to work and complete other responsibilities, all of this necessary waiting can be tough. Luckily, the entire process doesn't have to be dragged out across weeks. At NJ State Auto Auction, the financing department offers guaranteed credit approval and same-day purchasing options, allowing drivers to get behind the wheel quickly.