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Learn the Most Convenient Car Financing Options

If you are going to apply for an auto loan, you will face the question of choosing between Direct Lending and Dealership Financing options. Let’s find out which one is better. It is time to learn different ways to get money for your car.

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Once you have decided to purchase a car, worked upon your budget, and selected the model, the next part is all about auto financing. Even after having a good income source and a decent credit score, applying for an auto loan is a task. It is because there are so many factors attached to it. Car financing is a purchase that will affect your financial situation over the long run, and hence you can’t go wrong with the loan term or the overall financing cost.

Direct Lending vs. Dealership Financing: Your Choice

There are two main ways to finance your car:

1. Direct Lending Option

Direct lenders can be any third-party who has an individual loan approval process and interest calculations. You can get pre-approved loans from such lenders and have them on the table while negotiating with the car dealer. There are many types of direct lenders you can choose from:

a. Credit Unions

Credit Unions are non-profit financial institutions that charge a lower interest rate on car loans. Hence, they are a reasonable option to arrange money for your new car. But, credit unions provide car financing to their members only. So, if you want to enjoy the benefit of lower interest rates, start with your credit union. If you are not a member of any credit union, check if you fulfill the criteria to become a member of one of them.

b. Banks

Banks provide car financing at affordable rates if you qualify their loan approval criteria. They are the most popular source for car buyers to get their pre-approved auto loans. Nowadays, many banks offer an online application process to help you apply for a loan from the comfort of your home.

c. Online Lenders

Many online auto financing companies offer loans to applicants. You have to submit an online loan application, and you will receive an approval within two business days. The chances of getting an auto loan with an online lender are significant. They have a network of several dealers, banks, and credit unions. Thus, they provide the best loan quote to customers, even if someone has a bad credit score.

2. Dealership Financing

Car dealers can provide you with some of the best deals by reducing the list price of your car and offering you additional discounts if you apply for a loan with them. Dealership financing includes various financing options to choose from, but check the loan quotes in detail to get the best deal.

a. Captive Finance Companies

Few automakers like Ford and Honda have their own finance companies. They are known as captive finance companies, which provide loans to car buyers with lucrative offers such as 0% finance cost for initial months. But to get such loans, you need to have an excellent credit score. Hence, you should upgrade your credit score if you decide to go for it.

b. Buy Here, Pay Here

Often, Buy Here Pay Here Dealers will offer financing options to car buyers on their own. The dealers can earn additional income in the form of interest revenue. However, they also assume the risk of missed payments. Typically, if you have a poor credit history and want to buy a used car, you can opt for in-house financing with the dealer.

c. Financing arranged by Dealers

Often, dealers have tie-ups with third-party financial institutions such as traditional banks and credit unions to help their customers secure an auto loan. They assist in getting easy auto loan approval by helping the customer meet the loan criteria. It aids them in increasing sales and enables car buyers to make the purchase quickly.

What’s your Decision?

There are many financing options to buy a car. But, choose wisely after evaluating the interest rates available to you. Understand the terms and conditions in detail and discuss the repossession terms. Will there be a grace period in case you missed a payment? Is there a pre-payment penalty? Cover all aspects and then make a well-informed decision that suits your financial situation.

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Things To Consider When Applying For USDA Loans New York

A low income may stop you from being able to buy your own home. Saving for a down payment fee could be a real pain

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But with the USDA’s Rural Housing Loan, you can now have a less stressful way of securing a home.

USDA loans New York already have helped a lot of people to get homes in rural areas. If want to be part of them, you should consider some factors to make sure that you would not have any regrets.

Quality of Life in New York

The first thing to consider is the quality of life to expect when moving to New York. When thinking about New York, most people think of the city, but it’s important to remember that New York is a whole state! The updated definition of the USDA Rural Housing Loan program now includes counties within New York.

New York is culturally and economically diverse. There’s a sweet balance that New York just nails with its fair share of big cities, like New York City, and its forested rural communities and other few suburbs. The education opportunities available are top-notch, with thousands of students worldwide attracted to its quality. Job and business opportunities are also abundant in New York. With New York’s Wall Street, the state is a powerful economic hub.

If you want to stay away from the busy city life, but still make it accessible for you and/or your family in a few hour’s drive, then you’d be excited to apply for a USDA loan in New York.

What makes me qualify for a Rural Housing Loan?

In order to quality for USDA loans New York, you must choose a property in an area accepted as rural by the USDA. Applicants should have moderate and below incomes. The adjusted household income should not exceed the 115% median income of the area. In New York, the average household income limit for a family of 1-4 is $133,550 a year, and can go as high as $176,300 for a family of 5 or more. Families/applicants must be without adequate housing, but are able to afford rent, utility, interest, tax and insurance bills. USDA housing loans do not have a minimum credit score requirement. Applicants should be able to and willing to repay the mortgage loan.

Are there USDA loans New York that I can apply to?

There is a surprising amount of loan lenders in New York that can help you apply for a USDA rural housing loan. To choose one, there is no need for you to go from lender to lender. A good lender can provide you with the necessary answers to your questions about the loan, and should be able to keep your trust with their provided services. To chat with them, simply go to their site and start messaging them. Once you’ve talked to them and have your questions answered, simply fill their forms and follow through with their instructions. Your plan of moving to New York is now one more step closer to you.

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Hotter than normal: Here’s how the Australian IPO market got its mojo back

The Australian initial public offering (IPO) market is witnessing a frenzied rush by companies to go public like never before, cashing in on bullish trend. The queue of private companies seeking to get listed on the Australian Securities Exchange (ASX) is only getting longer with over 30 companies rolling out their IPO prospectus to make stock market debut this month itself.

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In the first fortnight of July 2021, over 20 companies have already commenced trading on the ASX. As many as eight companies made their debut on the first two days of the month, and eleven were listed in July’s first full week.

While some big IPO stocks such as PEXA, Australian Rare Earths, 29Metals, BlueBet Holdings, Silk Logistics, Charger Metals, Aerison Group have already listed on the ASX, there are over a dozen more lined up to start trading at the domestic bourse.

The surge in the IPO activity comes despite the recent drop in the average listing return by companies. The listing return is the profit generated by the company when stocks are registered at a price higher than the offer price. However, not all stocks generate a positive return on listing as it depends on the prevailing market sentiments.

The ASX IPOs delivered an average listing return of 11% in July, compared with 40% last year.

Among the listings in July so far, the highly-anticipated online property exchange PEXA Group (ASX:PXA) gained just 0.1% on market debut, despite strong fundamentals. The online property settlements firm raised AU$1.18 billion at an offer price of AU$17.13, in what is touted to be Australia’s biggest IPO so far this year.

The recent listees – logistics and freight tech firm Silk Logistics Holdings (ASX:SLH) and battery metals explorer Charger Metals (ASX:CHR) – notched decent gains on their market debut. While Silk Logistics gained 20% on its ASX listing, Charger Metals surged 15%.

Why is the Australian IPO market so hot right now?

The busy month of July is on track to register the highest number of IPOs this year. The recent surge in IPO activity is attributed to favourable market conditions, ample liquidity, and new opportunities propelled by the coronavirus pandemic. At the same time, a low interest rate also augurs well for the fundraising activities as many companies have filed IPOs to capitalise on the record low-rate environment.

The Reserve Bank of Australia (RBA), in the July policy meeting, reaffirmed that it does not expect to start lifting cash rates until 2024 “at the earliest”. The central bank has kept the cash rate unchanged at a record low of 0.1%, despite a recovery in the economy and employment. The apex bank has reiterated its commitment to maintain highly supportive monetary conditions to support a return to full employment and inflation consistent with the target.

Upcoming ASX IPOs

If you are an IPO buff, the next two months are going to be exciting as the Australian equity market will see a surge in the IPO activity. While around 15 IPOs are in the queue for listing next fortnight, five companies are slated to join the ASX in August, as per data available on ASX. However, the number could increase depending on requisite approvals.

Here is a list of the upcoming ASX IPOs. Note that the IPO dates and prices may change, but the companies have received the nod from the Australian Securities and Investments Commission (ASIC) to file their prospectus.

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