Car loans – Timeup Soft http://timeupsoft.com/ Tue, 21 Jun 2022 13:39:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://timeupsoft.com/wp-content/uploads/2021/10/icon-12-160x160.png Car loans – Timeup Soft http://timeupsoft.com/ 32 32 The Scoop on Bad Auto Loans https://timeupsoft.com/the-scoop-on-bad-auto-loans/ Fri, 17 Jun 2022 15:06:35 +0000 https://timeupsoft.com/the-scoop-on-bad-auto-loans/ Do you know your credit score? This three-digit number carries considerable weight throughout your adult life. It can determine whether buying big-ticket items like a car or house is easy or stressful. For many people, this last point is true, as their credit scores may still improve due to periods of financial instability or limited […]]]>

Do you know your credit score? This three-digit number carries considerable weight throughout your adult life. It can determine whether buying big-ticket items like a car or house is easy or stressful. For many people, this last point is true, as their credit scores may still improve due to periods of financial instability or limited credit history. With options like car loans for bad creditpeople with low credit ratings can buy a vehicle.

So how do you know if you qualify for a bad credit auto loan? What exactly is it, and is it too good to be true? Here’s the inside scoop on credit scores, car financing, and why a bad credit car loan can work in your favor.

Your credit score explained

What is a credit score, other than a three-digit number that can add tremendous stress to any major purchase? Your credit score is a number between 300 and 900 that tells a lender (the bank or institution you borrow money from) how risky it is to give you a loan. The higher your credit score, the lower the risk to the lender as you are likely to repay the debt.

On the other hand, the lower your score, the higher the perceived risk of loan default, or non-payment. If you default, the lender has no choice but to send you for collection, repossess the vehicle, or foreclose on your home.

Credit scores are calculated by major credit bureaus like Equifax and TransUnion. These companies work together to collect data about your financial activity. This data is then categorized into five categories: payment history, credit usage, credit history, credit mix, and credit inquiries. Each of them has a certain weight or influence on your overall score. Here’s what that means:

  • Payment history represents 35% of your credit score and looks at how quickly you paid, or if any accounts were cashed.
  • Credit usage is 30% of your score and looks at how much credit you are using. Ideally, you should only be using 35% of your available credit, which means not maxing out your credit cards.
  • Credit history is 15% of your score and takes into account how long you’ve had lines of credit open. In this case, the longer the better, as it shows a diagram of how you manage your debts.
  • The Credit Mix represents 10% of your score and seeks a healthy balance between revolving credit (credit cards) and installment credit (car loans, student loans, mortgages).
  • Credit inquiries represent 10% of your credit score. This category looks for frequent and serious inquiries about your score, implying that you are in financial difficulty and need money.

Credit ratings: poor to excellent

Canadian credit scores range between 300 and 900, with 650 as the average score. There is no set standard of a good or excellent credit rating. Instead, each lender sets their requirements for acceptable score. However, there are some general guidelines on what these scores mean. For example, Equifax classifies scores as follows:

  • 300 to 559: Bad
  • 560 to 659: Fair
  • 660 to 724: Good
  • 725 to 759: Very good
  • 760 to 900: Excellent

Car loans for bad credit: the basics

When you need a reliable vehicle to get to and from work, there’s nothing more stressful than knowing that your credit score will make the purchase almost, if not entirely, impossible. Rebuilding your credit after a period of financial instability is a daunting task and a seemingly endless cycle. You need to rebuild your credit with a new line of credit, but your low credit score is preventing you from getting a credit card or a loan. Without a vehicle, getting to work becomes even more difficult and puts you at risk of losing your job; a stable source of income is essential to pay your bills on time.

Traditional lenders set high requirements or standards, which is fine when your credit score is very good or excellent. However, this makes major purchases virtually impossible for people who are rebuilding their credit or who don’t have a long credit history. This is where car loans for bad credit come in. These loans break the cycle to help people with low credit scores or minimal credit history. How? They defy the standards set by conventional lenders.

Bad credit car loans, commonly known as subprime car loans, do not have the same high standards as conventional car loans. Instead, subprime lenders allow people with low credit scores to purchase a vehicle. So what’s the problem ?

A salesman is shown holding a car key in front of documents and a car key.

Car loans for bad credit: too good to be true?

Bad auto loans aren’t too good to be true. Although they may look like “bad loans”, they are a workable solution for car buyers with bad credit. People who qualify for these subprime auto loans typically have a high debt-to-equity ratio and a credit score below 600. They may also have a history of bankruptcy, foreclosures, frequent late payments, or lines of credit sent to collections. – or little credit history at all.

Subprime lenders consider these characteristics for each potential borrower. In exchange for lower standards, a car loan for bad credit usually comes with a higher interest rate and fees. The higher interest rate reflects the higher risk the lender takes when making the loan. It is quite possible that the loan will not be repaid, which could result in a significant financial loss for the lender. Additionally, a lender may charge a penalty fee for repaying the loan before the end of the term or contract.

When shopping for a bad car loan, one of the most critical questions to ask is whether the lender is reporting your payments to the major credit bureaus. Why is this important? Subprime lenders are not required to report your payment activity. If you work with a lender who doesn’t report your payments, your lending activity isn’t helping to rebuild your credit, and that means every payment you make — on time and in full — isn’t always benefiting you. . way. On the other hand, if your lender reports your payments, this activity can have a positive impact on your credit score.

Your future behind the wheel

One of the biggest takeaways is to understand that not all bad credit car loans are equal or beneficial. For example, if your goal is to rebuild your credit, working with a subprime lender that doesn’t report to the major credit bureaus is a waste of time. Unfortunately, the market is also fraught with predatory lenders known to withhold essential information and charge exorbitant fees. While regulation has mitigated many of these practices, it’s still important to put safety first: work with a reputable lender, ask lots of questions, and read the fine print more than once.

Ultimately, a loan of any type, whether it’s a bad credit car loan, credit card, or mortgage, is a contract between you (the borrower) and the lender. As with any contract, it is essential to understand the terms and read the fine print before signing on the dotted line. For example, with a car loan for bad credit, make sure that the contract describes everything in detail: the term of the loan, the monthly payments required, the interest rate and the associated fees. Then it won’t be about what’s expected of you, setting you up for greater financial success as you rebuild your credit, one payment at a time.

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More and more people are falling behind on their auto loans https://timeupsoft.com/more-and-more-people-are-falling-behind-on-their-auto-loans/ Thu, 16 Jun 2022 14:30:00 +0000 https://timeupsoft.com/more-and-more-people-are-falling-behind-on-their-auto-loans/ Photo: Steve DaSilva People are falling behind on car loans, Toyota is slowing production lines, and Audi is suing NIO for copyright infringement. All this and more in The morning shift for June 16, 2022. 1st Gear: This surely bodes well for the economy as a whole Ford Chief Financial Officer John Lawler said Wednesday […]]]>

Image for article titled More and more people are falling behind on their auto loans

Photo: Steve DaSilva

People are falling behind on car loans, Toyota is slowing production lines, and Audi is suing NIO for copyright infringement. All this and more in The morning shift for June 16, 2022.

1st Gear: This surely bodes well for the economy as a whole

Ford Chief Financial Officer John Lawler said Wednesday Mustang Mach-E manufacturing costs were risingand also that delinquencies on loans are increasing due to “economic pressures”. With Fed interest rates upand the hashtag #StockMarketCrash always trending on Twitter, these defaults could be yet another sign of economic turmoil to come. Of Automotive News:

Ford Motor Co. Chief Financial Officer John Lawler said Wednesday that auto loan delinquencies were beginning to rise in what he called a “dynamic” economic environment.

“We’re looking for every data point we can to know where the consumer is and where they’re headed, given inflation issues and economic pressures,” Lawler said at the Deutsche Bank Global Auto Industry Conference. “We’re seeing headwinds around delinquencies as perhaps a leading indicator.”

Still, he said the rise was not yet cause for concern, as crime rates have been at historic lows for about last year.

“It looks like we’re going more towards the average,” Lawler said.

Falling inventory, coupled with weaker incentives and higher average transaction prices, puts the industry in a better position than in previous years if the economy slips into a recession, he said.

“It’s a completely different environment heading into what could be a potential recession than anything I’ve seen in the past,” Lawler said.

With a recession on the horizon, there’s only one reliable way to make sure your money weathers the storm: Chevrolet Corvette NFT. Note: Steve is not a qualified financial adviser. Please do not purchase the Corvette NFT.

2nd gear: Toyota further slows production in Japan

Toyota has been on a production cutting tear lately, and there seems to be no end in sight. The company is suspending yet another production line in Japan for the next few weeks. From Reuters:

Toyota Motor Corp (7203.T) said on Thursday it plans to further suspend production at the domestic production line in June and July due to semiconductor shortages and an outbreak of COVID-19 at the factory. one of its suppliers.

It has now announced that it will produce 750,000 vehicles worldwide for the month. It did not reveal the number of vehicles it aims to produce for July.

This time, he cited staff disruptions at one supplier due to a COVID-19 outbreak and faulty production equipment at another supplier.

Poor Toyota, seeing problems with both workforces and equipment from its suppliers. This production target of 750,000 units is probably around one 15% reduction from pre-pandemic levelsalthough this may change depending on the particular sub-brands involved.

3rd Gear: Audi sues NIO over car names

NIO offers two models called ES6 and ES8. Audi sells two cars called S6 and S8. According to the latter, these are too close for comfort. Of Reuters:

Volkswagen’s Audi (VOWG_p.DE) has filed a lawsuit in a Munich court against Chinese electric vehicle maker Nio (9866.HK) for alleged infringement of Audi’s trademark rights, German newspaper Handelsblatt reported on Thursday. .

According to Audi, Nio’s decision to name two of its ES6 and ES8 models infringes Audi’s trademark for its own S6 and S8 model designations, the Handelsblatt reported.

Nio, a premium brand which has so far made most of its sales in China, entered the Norwegian market in May last year and plans to launch in Germany, the Netherlands, Sweden and in Denmark before the end of the year.

The ES6 has For yearsand the ES8 even longer, but it looks like Audi didn’t have a problem until NIO started getting a little closer to Volkswagen’s territory. That’s the problem with alphanumeric car names – there are only so many letters and numbers to choose from.

4th Gear: Electric Truck Buyers Put Down Deposits on Everything

A new study has confirmed what the rest of us have always suspected: if you take refundable deposits for your fancy new electric truck, people will throw away their money without necessarily intending to actually buy the vehicle. Of Automotive News:

Electric truck consumers are using refundable reservations to pre-order more than one EV and keep their options open, according to a new survey by battery health analytics firm Recurrent.

The study, released on Monday, surveyed more than 200 consumers who had at least one pending EV reservation between April and May and found that shoppers tended to overorder electric trucks due to concerns about whether the manufacturer would actually honor the purchase. According to the results, 89% of Tesla Cybertruck reservations overlapped with another truck pre-order, and 100% of Ford F-150 Lightning and Chevrolet Silverado EV pre-orders also reserved another vehicle.

The study found that nearly 50% of consumers who reserved the Tesla Cybertruck or another vehicle intended to repurchase the preorder.

Electric cars don’t seem to follow the same trend, but e-truck buyers just seem to want an e-truck no matter who built the thing. The market is a real race to reach buyers, and a race in which Tesla is falling further and further behind.

5th gear: Sony and Honda make the connection to electric vehicles

It’s wedding season, and while the rest of us are looking for flights and continually forgetting to RSVP (I’m sorry, Lydia, I promise I’m coming), Honda and Sony have finally taken those electrified steps into the driveway. The two companies are forming a joint venture called Sony Honda Mobility Inc., to combine the capabilities of both companies into one new automaker. Of Automotive News:

TOKYO – Honda Motor Co. and Japanese electronics giant Sony Corp. signed an agreement to create a “high value” electric vehicle joint venture this year under the name Sony Honda Mobility Inc. that will provide a “new generation of mobility and services.

The 50-50 company will be established this year with the aim of starting electric vehicle sales and providing mobility services in 2025, the companies said. The deal is still subject to regulatory approval.

Yasuhide Mizuno, currently managing director at Honda, will serve as chairman and CEO of the new company. Mizuno previously served as Honda’s general manager of automotive operations before being assigned to lead the Honda-Sony JV readiness office, a change that took effect June 1.

Honda CEO Toshihiro Mibe said the initial venture is expected to be small, but this is an important step in testing new business models for an industry beleaguered by change.

I had been trying to figure out if “Hony” or “Sonda” sounded better, but I think Sony Honda Mobility is probably a stronger name than either. Still, I wish I could listen to the meeting where they chose the company name first.

Backhand: It’s a Jeep Thing

On this date, 77 years ago, a the butterfly flapped its wings. Now I’m blinded on the freeway by chrome-bumpered mall crawlers. Thanks Willys.

Neutral: What’s your recession plan?

Personally, I’ll fit huge gas tanks into the hatch of an Integra and start raiding along the Gulf Coast, which I’ll now rename Gastown, in a perfect mix of The fast and the furious and madmax. Did you know the villain costumes for road warrior were almost entirely assembled from parts purchased from bondage shops and sporting goods stores? Related question, does anyone have any bondage store or sporting goods store recommendations in New York?

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A woman who defaulted on two car loans has her debt reduced https://timeupsoft.com/a-woman-who-defaulted-on-two-car-loans-has-her-debt-reduced/ Tue, 14 Jun 2022 17:00:00 +0000 https://timeupsoft.com/a-woman-who-defaulted-on-two-car-loans-has-her-debt-reduced/ A woman who couldn’t repay the loans on two cars had the amount she owed reduced by $3,500 because a financial dispute resolution service said the loans were unaffordable from the start. The woman first borrowed $8,500 in 2012 to buy a car. But she got into trouble when her benefits went down and she […]]]>

A woman who couldn’t repay the loans on two cars had the amount she owed reduced by $3,500 because a financial dispute resolution service said the loans were unaffordable from the start.

The woman first borrowed $8,500 in 2012 to buy a car. But she got into trouble when her benefits went down and she stopped paying. The lender repossessed the vehicle and sold it for $600.

Then, in 2019, she wanted to buy another car for $13,500 and asked the same company for a loan of $15,000 to cover the purchase plus expenses and insurance.

She and the company had changed names, so neither recognized the other.

READ MORE:
* Borrower gets $6,500 refund for unaffordable car loan
* Sneaky lenders enroll family as ‘co-borrowers’ to dodge guarantor laws
* Lender cancels loan after friend of young borrower dies in horror accident

She couldn’t pay the loan alone, so she had her mother-in-law as a co-borrower. She lived with her partner, their children and her mother-in-law at the time.

According to information submitted by the lender, the pair had a weekly income of $1,023.43 against expenses of $881, leaving a budget surplus of $142.43. After making the weekly loan repayments of $139, they would be left with $3.43 per week.

But in April 2019, she stopped repaying the loan. In June, the lender repossessed the car and auctioned it off in July of that year for $1,500.

The lender attempted to contact the two women in late 2021 about repaying the remaining $15,200.

Neither made regular payments. The main borrower was located in 2021 and said at that time that she was studying and could not afford to repay the loan.

The lender went to court, first for the 2012 debt, for which the borrower was told $35 would be deducted from her benefits each week, then for the 2019 debt. The borrower offered $10 a week for this, but she defaulted and a seizure order was applied for an additional $35.

The woman approached a financial mentor for help, who feared that a total of $70 a week would be taken from her benefits each week, and complained to the FSCL on her behalf.

The mentor said she shouldn’t have received the 2019 loan when she couldn’t pay the 2012 loan.

The financial mentor opined that both loans were probably unaffordable because she had defaulted on payments within months. The financial mentor also questioned the process of selling the cars, as they sold for far less than she paid.

Bank, insurer, lender, broker or advisor have harmed you? Complain to one of the four official financial services complaints services.

But the lender did not accept that the loans were unaffordable and was confident that it had met its responsible lending obligations.

He said he could not control how much the borrower paid for the vehicles and they were sold through a reputable auction house.

FSCL did not investigate the complaint about the 2012 loan as it was before the responsible lending rules came into force in 2015.

He accepted that the woman’s name changed between 2012 and 2019, so the lender didn’t realize the same woman was involved.

He could not review the issues that had been considered by a court, but could review whether the 2019 loan had been made responsibly, as that had not been resolved.

The FSCL case manager said even the small surplus that was shown in the women’s budget in their 2019 application disappeared when it was looked at further.

“We were of the view that the loan was unaffordable from the outset and that the lender had breached its responsible loan obligations…We recommended that the lender repay $3,500 in interest and fees to [her] residual debt”.

FSCL also expressed concern that a vehicle bought for $13,500 in February could sell in July of the same year for $1,500.

“We suggested to the lender that they might wish to reduce [the] debt as an acknowledgment that something may have gone wrong in the sales process to cause such a large discrepancy.

The lender disagreed.

The borrower accepted FSCL’s conclusion that the lender should reduce its debt by $3,500.

“As the deductions from the seizure order seemed to cause [her] financial difficulties, we suggested that she asks the court to reduce her payments to a more affordable amount and that the lender agrees not to contest this request,” FSCL said.

The FSCL said that when a vehicle is repossessed and sold, it may sell for less than the borrower and lender expected, leaving a borrower with significant debt and nothing to show for.

“We encourage borrowers to exercise caution when buying a car to ensure it is worth the asking price of the car dealership. If a borrower cannot afford to repay a loan, they may also consider selling the vehicle privately, with the consent of the lender, giving them more control over how much they sell for.

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Gen Z and millennials have the hardest time affording car loans https://timeupsoft.com/gen-z-and-millennials-have-the-hardest-time-affording-car-loans/ Wed, 08 Jun 2022 19:45:11 +0000 https://timeupsoft.com/gen-z-and-millennials-have-the-hardest-time-affording-car-loans/ Millennials and Gen Z auto loan default article highlights: Gen Z and Millennial auto loan holders have higher default rates than the national average Higher default rates could be related to the wealth gap and/or poor credit history which causes them to borrow at high interest rates There are ways to avoid defaulting on your […]]]>

Millennials and Gen Z auto loan default article highlights:

  • Gen Z and Millennial auto loan holders have higher default rates than the national average
  • Higher default rates could be related to the wealth gap and/or poor credit history which causes them to borrow at high interest rates
  • There are ways to avoid defaulting on your car loan and even get your car back if the financial institution repossesses it.

Let’s face it: without financing, that is, without loans, most of us could not afford to buy cars. This was the case even before the prices of new and used vehicles skyrocketed. But even though just getting a loan is stressful enough, it’s nothing compared to paying it back. And that’s assuming you can repay it at all. To some, that sounds like a reasonable assumption. Yet, according to a new report, this is not a given for many Gen Z and Millennial auto loan holders, as they are defaulting en masse.

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Westpac offers lower rates for auto loans for electric and hybrid vehicles https://timeupsoft.com/westpac-offers-lower-rates-for-auto-loans-for-electric-and-hybrid-vehicles/ Wed, 18 May 2022 14:02:00 +0000 https://timeupsoft.com/westpac-offers-lower-rates-for-auto-loans-for-electric-and-hybrid-vehicles/ “We expect demand for these vehicles to continue to grow, with many Australians already planning to make the switch.” Non-bank lenders Plenti and Pepper Money have targeted the EV space, with the latter offering a comparison rate of 3.99%. Although Westpac research showed more than two-thirds of Australians were put off by the cost of […]]]>

“We expect demand for these vehicles to continue to grow, with many Australians already planning to make the switch.”

Non-bank lenders Plenti and Pepper Money have targeted the EV space, with the latter offering a comparison rate of 3.99%.

Although Westpac research showed more than two-thirds of Australians were put off by the cost of electric vehicles, Plenti released a report in March that showed electric vehicles could be cost-effective against internal combustion engines in 15 years when are associated with renewable energy sources.

Easing Household Fiscal Pressures

“We know that the majority of Australians are now actively considering an electric vehicle as their next car and this initiative will help them make the switch. Given that an average Australian household currently spends $3700 a year on petrol and diesel, the Purchasing an electric vehicle would ease the real pressure on the monthly budget,” said Electric Vehicle Council Director General Behyad Jafari.

Plenti’s research has shown that electricity bills could be as low as $230 per year when electric vehicles and green energy are bundled together. The emerging non-bank lender announced on Wednesday that it has reached a financing agreement with an electric vehicle manufacturer, after reporting its first positive result in cash, supported by growth in auto loans.

Its auto loan originations increased 177% to $639 million from a year ago, resulting in full-year net cash income of $500,000 and loan originations of $1.1 billion up 134% year over year. In the second half of this year, the cash profit was $2.7 million.

“Automotive remains the largest and highest growing vertical and is poised for accelerated near-term growth with the launch of commercial auto loans, financing deals in the electric vehicle market and the launch of a dealer point-of-sale program,” said Wilsons analyst John Hynds. .

Mr. Hynds warned that funding cost increases would take time to be passed on to lending customers, limiting projected cash profit for the first half of 2023 to $3.4 million.

“In the second half of 2023, expectations are for improved net interest margin and therefore stronger loan book growth and expected net income of $9.2 million,” he said.

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How the Fed’s rate hike will affect auto loans https://timeupsoft.com/how-the-feds-rate-hike-will-affect-auto-loans/ Fri, 06 May 2022 13:13:10 +0000 https://timeupsoft.com/how-the-feds-rate-hike-will-affect-auto-loans/ Adding to the rollercoaster news cycle this week, the Federal Reserve raised its target federal funds rate by half a point. According to Edmunds Insights executive director Jessica Caldwell, this is the biggest rate hike in more than 20 years. And while it may curb rising inflation, it will squarely hit the wallets of new […]]]>

Adding to the rollercoaster news cycle this week, the Federal Reserve raised its target federal funds rate by half a point. According to Edmunds Insights executive director Jessica Caldwell, this is the biggest rate hike in more than 20 years. And while it may curb rising inflation, it will squarely hit the wallets of new and used car buyers.

“The average monthly payment for a used vehicle purchased in April was a record $543 (and up 20% year over year!) with an average annual percentage rate of 8%,” said Caldwell said Thursday. “Today’s rate hike will force used buyers into older vehicles to keep payments within an affordable range.

As we already know, the prices of cars, SUVs and trucks are steadily increasing for several reasons. Supply has been the big issue as parts are hard to come by – even more so since Russia invaded Ukraine – and chip shortages continue to plague us. A month ago, Edmunds reported that the average monthly payment for new vehicles purchased in the first quarter of 2022 is expected to ring in at $648, which is the highest level Edmunds has ever recorded. Compare that to a monthly payment of $639 at the end of 2021 or $575 a year ago and you’ll see the path we’re on. Used car prices are not far behind at $538, down from $432 in the first quarter of 2021.

Now we can superimpose the rise in interest rates, which will affect the borrowing rate. Edmunds’ Caldwell explained why it’s different this year.

“In the past, interest rate hikes didn’t affect the new car market significantly because automakers subsidized many loans,” Caldwell told me. “Automakers are still subsidizing many loans, hence the average annual interest rate for a new vehicle financed at a dealership. That said, since inventory is so tight right now, automakers are less motivated to offer low-interest loans because it’s technically an incentive program.”

The rate increase will strengthen the new-vehicle buyer base of high-income buyers, Caldwell said, but the biggest effect will ripple through the used-car market.

“Given that used car prices are already at record highs, this increase will only make this market more expensive, and buyers will be forced to refrain due to affordability or purchase a vehicle older to keep payments within an digestible range,” she said.

That’s great news if you’re a bank, I guess. Otherwise, it’s going to be difficult for auto buyers for some time to come.

Do you have any advice? Send a note to kristin.shaw@thedrive.com.

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RBI buyback rate hike likely to have nominal impact on car loans and sales https://timeupsoft.com/rbi-buyback-rate-hike-likely-to-have-nominal-impact-on-car-loans-and-sales/ Thu, 05 May 2022 09:36:20 +0000 https://timeupsoft.com/rbi-buyback-rate-hike-likely-to-have-nominal-impact-on-car-loans-and-sales/ The sudden revision has raised concerns among car buyers and automakers, while experts say it is likely to have minimal impact on interest rates. See the pictures RBI revised the repo rate and CRR by 40 bps and 50 bps, respectively. The Reserve Bank of India (RBI) surprised by announcing a 40 basis points (bps) […]]]>

The sudden revision has raised concerns among car buyers and automakers, while experts say it is likely to have minimal impact on interest rates.



to expand See the pictures

RBI revised the repo rate and CRR by 40 bps and 50 bps, respectively.

The Reserve Bank of India (RBI) surprised by announcing a 40 basis points (bps) or 0.40% increase in its lending rate to commercial banks and a 50 bps or 0.50% increase in Cash Reserve Ratio (CRR). After a four-year hiatus, the repo rate rose to 4.40% from 4% previously, while the CRR was raised to 4.5%. And the sudden overhaul has raised concerns among car buyers and automakers about the impact it’s likely to have on sales.

Vinkesh Gulati, President of the Federation of Automobile Dealers Associations (FADA), said: “The RBI’s decision to raise the repo rate by 40 basis points clearly caught everyone off guard. This move will reduce excess liquidity in the system and make car loans expensive. “

Read also : RBI Repo Rate Rise: How It Will Affect Two-Wheeled Loans

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RBI announced a 40 basis point (bps) or 0.40% hike in its commercial bank lending rate and a 50 bps or 0.50% increase in the cash reserve ratio (CRR).

Revisions made by the central bank should have a nominal impact on interest rates on loans. But according to our sources at the State Bank of India (SBI), interest rates on any loan across all sectors will not see an upward revision of more than 0.40%. In fact, the rise in commercial banks is expected to be well below the 40 basis point mark and the same is true for auto loans. At present, interest rates on car loans range mainly from 7.4% to 8.3% across the banking sector, which could be revised to a maximum of 7.8% to 8 .7%, if commercial banks decide to pass the entire charge on to customers. .

For your point of view, the real interest increase per lakh will probably only be ₹400 per year (PA) if the entire burden is passed on, resulting in an increase of ₹33.33 per lakh per month . So, let’s say if you take out a loan of ₹10 lakh, your interest rate is likely to increase by a maximum of ₹4000 PA which will result in an increase of ₹333.33 in your monthly EMIs of car loan.

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At present, boosting production in an effort to maintain adequate inventory and reduce long lead times remains the primary concern of automakers and stakeholders.

Sharing his views with carandbike, RC Bhargava, President – Maruti Suzuki said: “We already have a huge backlog due to the chip shortage, so the rate review will not have a major impact. on our sales. This is a nominal revision, so interest rates will have a very minimal effect, so customer sentiments won’t be badly affected as they won’t really feel the impact.”

Sharing his view on the overall impact, Sridhar V, Automotive Analyst, Grant Thornton LLP, said: “The impact of the RBI rate review will be minimal on short-term auto loans and may induce customers to hold back their buying instinct as the cost of vehicle acquisition may increase, but in the medium to long term it will be neutralized as the low interest rate regime may be behind us and we will not OEMs cannot expect lower interest rates in the near future, as they are currently facing higher input costs, higher fuel prices, and the availability of manufacturing materials. critical input, which could be another additional aspect that could hamper their sales. The industry will soon consider a request creating benefits such as the GST reduction, which they have been seeking for a long time.”

The industry has borne the brunt of a global semiconductor supply crisis and is currently ramping up production in an effort to maintain adequate inventory and reduce long lead times. expectation remains the biggest concern for automakers and stakeholders.

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Rising interest rates on loans and deposits are likely to impact buyer sentiment.

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Even observers said a 40 basis point impact on interest and IMEs would be minimal. Thus, the overall volume outlook remains more or less the same. Volume segments that range from ₹5 lakh to ₹18 lakh (hatchbacks and compact cars and SUVs) will likely see a very nominal impact as the standard loan amount taken out for these cars ranges from ₹4 lakh to ₹12 lakh and The maximum monthly EMI increase in this case will be around ₹500. That said, overall sentiment is likely to be cautious, with rising fuel prices and periodic OEM hikes, as general buyers will take time to understand the impact of the quantum of the interest rate hike. .

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Finance your next used car purchase with May’s best car loans https://timeupsoft.com/finance-your-next-used-car-purchase-with-mays-best-car-loans/ Thu, 05 May 2022 07:00:00 +0000 https://timeupsoft.com/finance-your-next-used-car-purchase-with-mays-best-car-loans/ Global supply issues continue to slow the delivery of new cars to Australia, but for those looking for an alternative to used cars, financing your vehicle doesn’t have to be a challenge. New car sales figures from the Federal Chamber of Automotive Industries (FCAI) for April revealed that the number of vehicles sold fell 12.2% […]]]>

Global supply issues continue to slow the delivery of new cars to Australia, but for those looking for an alternative to used cars, financing your vehicle doesn’t have to be a challenge.

New car sales figures from the Federal Chamber of Automotive Industries (FCAI) for April revealed that the number of vehicles sold fell 12.2% from the same period last year.

The total number of vehicles sold over the past month was 81,065 – and the numbers were down in every state.

FCAI chief executive Tony Weber said this was the result of “global issues that impact the production and shipment of new cars”.

“Automakers continue to suffer from a shortage of microprocessor units, which is impacting their ability to ramp up production to pre-pandemic levels,” Weber said.

“Covid-19 continues to impact manufacturing and supply, particularly where factories have been forced to close and shipping operations have yet to fully recover. This is reflected in lead times extended delivery times for new vehicles,” he said.

One option potential buyers might consider is buying used cars that are already available in Australia. And unlike waiting over a year to put the pedal to the metal for a new year, finding and researching the best used car financing for your needs and budget can be a whole lot easier.

Indeed, RateCity has simplified the search for auto loans by listing its top-rated personal loans for May 2022.

RateCity’s Personal Loan Ranking ranks the best auto loans using Real Time Ratings™, our rating system that rates loan products out of five, based on cost and flexibility.

Keep in mind that a car loan is a financial commitment that can often take years to pay off. Consider using RateCity’s auto loan calculator for a repayment estimate to make sure they fit comfortably within your budget.

(Rankings correct at time of publication. Please note that lenders may swap places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

The best used car loans

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RBI Rates | Home loan https://timeupsoft.com/rbi-rates-home-loan/ Wed, 04 May 2022 07:00:00 +0000 https://timeupsoft.com/rbi-rates-home-loan/ Home, personal and auto loan borrowers faced a sudden interest rate shock on Wednesday after the Reserve Bank of India announced an untimely hike in repo rates. The bankers ET spoke to are preparing to pass the hike on to their borrowers, marking the start of a nearly three-year cycle of rising borrowing costs. “With […]]]>
Home, personal and auto loan borrowers faced a sudden interest rate shock on Wednesday after the Reserve Bank of India announced an untimely hike in repo rates. The bankers ET spoke to are preparing to pass the hike on to their borrowers, marking the start of a nearly three-year cycle of rising borrowing costs.

“With today’s increase in the repo rate, loans linked to the repo rate will be repriced, as far as Kotak is concerned, our book is the largest in repo rate benchmark followed by MCLR, so for us , it is fair to pass on the rise in the RBI rate and reasonable,” said Uday Kotak, MD, Kotak Mahindra Bank. as RBI rates are integrated into deposit rates, you will see MCLR-based loans being re-priced.

Currently, interest rates are at historic lows with home loans starting at 6.5%, car loans starting at 7% and personal loans starting at 9%. Bankers say interest rates could rise by up to 200 basis points, if inflation continues to break through the regulator’s comfort band.

“We think the repo rate could be just over 6%, in which case we are seeing a 200 basis point rise over the next 12 to 14 months,” a banker said on the cover of anonymity. “We will need to be vigilant on interest rate sensitive sectors to ensure minimal credit slippages if interest rates rise disproportionately.”

Banks, in anticipation of an imminent rate hike, have already passed on rate hikes to borrowers. The State Bank of India, the largest lender, recently raised its marginal cost of lending rate by 10 basis points. A basis point is equal to one hundredth of a percentage point.

Bank of Baroda had increased the MCLR by five basis points across all durations while Kotak Mahindra Bank had increased its MCLR by five basis points across all durations. Banks and non-bank lenders have raised lending rates by up to 15 basis points over the past month due to tighter liquidity conditions and rising deposit costs.

“Looking ahead, given the hawkish rhetoric and the high likelihood of high inflation printing for April, the RBI will accelerate further hikes,” said Rahul Bajirao, chief India economist at Barclays. . “We expect the RBI to now offer a rate hike of at least 50 basis points at the June policy meeting. We see the RBI raising its key rates to 5.15% by August and we expect it to reassess macro momentum to gauge the need for further upside beyond that.

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I disbursed N1.8 billion in housing/car loans to workers, N2.9 billion in gratuities to retirees https://timeupsoft.com/i-disbursed-n1-8-billion-in-housing-car-loans-to-workers-n2-9-billion-in-gratuities-to-retirees/ Tue, 03 May 2022 11:29:28 +0000 https://timeupsoft.com/i-disbursed-n1-8-billion-in-housing-car-loans-to-workers-n2-9-billion-in-gratuities-to-retirees/ By Priscilla Ediare, Teen-Ekiti Ekiti State Governor Dr Kayode Fayemi revealed that his administration had disbursed over N1.8 billion in car and home loans to civil servants, local government staff and teachers over the course of for the past four years as an appreciation for their commitment and as a demonstration of the government’s commitment […]]]>

By Priscilla Ediare, Teen-Ekiti

Ekiti State Governor Dr Kayode Fayemi revealed that his administration had disbursed over N1.8 billion in car and home loans to civil servants, local government staff and teachers over the course of for the past four years as an appreciation for their commitment and as a demonstration of the government’s commitment to their well-being.

The Governor also revealed that his administration, during the period, paid a total sum of N2.9 billion as gratuities to retired civil servants and local government staff.

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Speaking on Sunday at this year’s May Day rally held at the Ekiti Parapo pavilion in Ado Ekiti, the state capital, the governor assured that his administration was working out the terms of payment for a month. salary arrears (owed by the previous government) this month to commemorate Workers’ Day.

Represented by the Deputy Governor, Otunba Bisi Egbeyemi, the Governor further assured that the full clearance of the remaining arrears was under consideration after giving his approval for the cash implementation of the 2017 and 2018 promotions.

Dr Fayemi said the government has a duty to do more for workers, admitting inflation has deeply eaten away at the gains made by his first and second administrations over the past decade when workers have benefited from ‘a salary increase not less than three times.

Recalling the suffering inflicted on workers by the previous administration, Dr Fayemi said: “This is why we cannot afford to return to the dark era of non-payment of wages, allowances and pensions. We have already come out of the dark tunnel and we must resist all tricks to roll us back as a state.

Speaking during the June 18 gubernatorial election, the governor urged workers to “look at where we came from, where we are now and where we are going as a people and as a state. “, urging them to join his administration in building on the success recorded on laudable programs and policies.

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Dr Fayemi added, “In everything we do, we must place the best interests of Ekiti State far and above all other considerations. Things can and should only get better. Therefore, let us together make the right choice, not only for ourselves but for our future generations.

The Governor revealed that N309 million, N339.2 million were disbursed as housing loans to local government officials and staff, respectively, while N571.3 million and N41.3 million naira were disbursed in the form of car and housing loans to civil servants and local government staff respectively. making a total of 1.2 billion naira.

On what teachers have benefited from the loan scheme, the Governor explained that while N287.3 million was disbursed as car loans to teachers, N299.8 million was disbursed to teachers as loans housing, totaling N587.1 million.

Giving a breakdown of gratuities paid since 2018, Dr Fayemi revealed that more than 2 billion naira have been paid to workers who have retired from public service, while 843.1 million naira have been paid to retirees from the civil service. local government service for a total of N2.9 billion paid as gratuity. .

He added: “We did all of this because we deliberately put the welfare and well-being of our workforce, the engine that drives our 5-pillar program, front and center despite our limited resources. .

“You will recall that at the beginning of this administration, most offices were cluttered and not conducive to work. As a responsible and responsive government that values ​​the well-being of workers, we immediately sprang into action by undertaking building renovations and completing the derelict secretariat buildings.

“We have also provided office furniture and equipment through the MDAs. The state government has also extended the water supply to the Secretary of State.

“As a gender-responsive government, we have built a 21st-century public service that is safe and gender-responsive so that workers can use their potential for effective service delivery. J approved the first female department head and the administration approved paternity leave for male officers and six months maternity leave for nursing mothers in the civil service.

He also commended the leaders of the state workers’ unions “for their tireless engagements with the state government for the welfare of the workforce, which demonstrates their determination to advance the cause. workers in this difficult time”.

The State Chairman of the Nigeria Labor Congress (NLC), Comrade Kolapo Olatunde, has advocated extending the minimum wage to workers at grade 13 and above and paying a gratuity to workers who have taken their retired since 2013.

Olatunde said workers are praying for a successful gubernatorial election to produce a worker-friendly and focused leader who will benefit workers and retirees.

The state Trades Union Congress (TUC) Chairman, Comrade Sola Adigun, urged the state government to come up with a bailout plan for the subsidized institutions to lift them out of their current economic situation.

Adigun also called for a gradual increase in grants to these institutions to sustain their existence.

The TUC boss called on political gladiators to play the game with the utmost sense of decorum “just as we know that regardless of party affiliation, the winner of the election will definitely come from Ekiti, no position worth the shedding of anyone’s blood”.

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