San Mateo, CA  — With $4-per-gallon gas a reality, more Americans are listing their SUVs for sale and looking to purchase more economical vehicles. For buyers seeking any new or used car or truck, Bills.com President Ethan Ewing suggests that consumers consider these nine tips before heading for the nearest auto dealership.

“A car can be a tremendous convenience and even a necessity in many U.S. communities,” Ewing said. “But it also can be another cause of financial problems for individuals who live on a tight budget. Being a smart consumer can help you make a better vehicle choice, and prepare for a better financial outlook.”

Ewing’s tips include:

1.   Watch out for “we’ll pay off your trade-in” offers. A dealer who makes this offer will actually just add the amount of the loan on the vehicle you trade in to your new vehicle loan. “If your car has lost value quickly, or if you have had a new car for less than a year, the loan amount on your car may be more than its trade-in value - meaning you would you could be facing a big chunk of debt added to a new car loan,” Ewing cautioned.

2.   Go low. At its most basic, a vehicle is a tool to transport you from place to place. It should work reliably, be safe, and have payments that fit within your budget. While society sometimes links cars with status, think about what you could do with the price difference between an older car and a BMW. Saving $200 a month on a car payment could add $14,400 to your nest egg in seven years - nearly enough to buy your next car outright.

3.   Beware the hybrid temptation. Before jumping on the hybrid bandwagon, be sure you can afford it. All hybrid vehicles get better gas mileage than the same model with traditional technology, and are better for the planet. But they typically cost $3,000 to $6,000 more than their conventional counterparts. Some analysts suggest that hybrid buyers will only break even on the costs over the lifetime of the vehicle. If the cost is a strain, look at a conventional car that gets good mileage. For thousands of dollars less, you will still be saving money on gas and helping the environment.

4.   Consider after-purchase costs. While researching a vehicle, call a few insurance agents for different companies and get their estimates of costs to cover the vehicles you are looking at. Some features and some vehicles cost more to insure. Check a site such as Edmunds.com, which presents “cost of ownership” figures that take into account maintenance and repairs.

5.   Compare and negotiate. When it comes to a car purchase, “slow and steady wins the race.” Carefully research the cars that interest you, test drive them, and compare book prices and local offers. Contact several local dealers and ask them to fax or e-mail you their best price on your chosen vehicle, and consider online auction sites such as eBay for another way to shop around.

6.   Use a broker. Another option to relieve the uncomfortable pressure of car sales is to work with a broker. A broker negotiates the car deal for a flat fee. Because the broker typically obtains a good price, the total cost is usually no more than you could negotiate yourself. You also avoid the hassle of negotiations. If you are a member of a credit union, warehouse or automotive club, ask the club if they offer similar services.

7.   Check your credit. Before buying, check your credit report and credit score. If below average, you will pay higher interest rates. Taking a few months to pay bills on time can build up your score and get a better deal.

8.   Review financing options. Paying cash for a car often is the best value — without interest payments, you keep your money. But if you have not saved up for a car, take the time to compare financing. Usually, your own bank or credit union will offer the best rates. But those with good credit might be able to benefit from special low- or no-interest financing from the dealership. Whatever you choose, look at several options and make your decision carefully, not under pressure from the sales team at the dealership. Go home and sleep on the deal if necessary.

9.   Do not burn cash. Once you have your car, refrain from driving aggressively — it wastes gas and essentially burns up money. Basic frugal moves like combining errands, carpooling or taking public transit, or walking and biking when possible can produce substantial gas savings over time.

“A vehicle is a significant and important purchase,” Ewing said. “With the right planning and consideration, the choices you make will not drive a car-sized hole right through your budget.”

About Bills.com (www.bills.com)
Based in San Mateo, Calif., Bills.com is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. As the online portal to Freedom Financial Network, LLC, the company has served more than 40,000 customers nationwide since 2002 while managing more than $1 billion in consumer debt. Its RSS feed is available at http://www.bills.com/news_releases/.

But for now, he added, CarMax can’t give investors any meaningful guidance for the rest of 2008.

Richmond, Va.-based CarMax does have an innovative growth proposition, and its concept has drawn a lot of attention since the company began in 1993 as a unit of Circuit City Stores Inc. before being spun off six years ago.

Contrasting with the adversarial sales tack used by most dealers, CarMax takes a “no haggle” approach that aims to develop customer loyalty and foster repeat business. Its sales people make the same commission, regardless of what vehicle they sell, so they have no incentive to badger customers to buy pricier, higher-margin models.

CarMax competitors have found that idea tough to copy.

In the current roiled auto markets, though, it may be difficult for any used-auto dealer to have a friendly transaction with customers. Wholesale prices for larger vehicles have fallen by about 25 percent this spring, or four times the typical pace of depreciation, according to CarMax’s first-quarter report.

On average, someone trading in a large SUV now is getting $3,100 less than two years ago, says Jessica Caldwell, manager of pricing and industry analysis at Edmunds.com, which tracks auto industry trends.

Making matters worse, a large number of such vehicles are bought with dealer financing. “People just can’t afford to write a multithousand-dollar check to get out of [owning] a sport utility” and switch to a hybrid, CarMax’s Folliard said in the conference call.

Still, there are many reasons to think that CarMax will weather the storm and perhaps emerge stronger.

The U.S. used-car market is highly fragmented, comprising some 21,500 franchised new-car dealerships and 43,000 independent used-car dealers.

With annual sales of more than $8 billion, CarMax still has a relatively modest share of a $340 billion used-car market, and that share has continued to grow despite the sagging market.

The company has been expanding into new markets around the country with new superstores, which total more than 90. That growth will continue, executives said.

And despite ongoing jitters in parts of the credit markets, CarMax recently found the asset-backed bond market receptive to a $742 million auto loan securitization. That makes it easier for the company to maintain its lending business.

Justin Fuller, an equity strategist at Morningstar Inc., has been watching for CarMax shares (KMX) to cheapen up, expecting swelling new-car inventories to pressure—and take demand away from—the used-car market. Such developments would make the shares a long-term buy, he said.

“CarMax is a big company. It has a lot of financial resources, and it can live through this,” Fuller said. Many smaller used-car dealerships probably won’t, he added.

When it comes to a used car auto loan, there are many factors that you will want to consider. First, you need to figure out what type of car that you want. Figure out how much you can afford to spend on this car, and with today’s prices, you need to find a car that does not use a lot of gas.

When you get ready to go to the dealer and look at their selection of used cars, it is best to take someone with you that knows a little bit about cars. Do not let the sales representative direct you to a specific car. Look around and decide which ones interest you. You know that salesmen make a commission on the cars that they sell. Naturally they are going to direct you to the cars that cost more.

At the same time, if you are looking for a used car auto loan, do not get hooked into purchasing a new car. The financing will depend on your credit. If it is acceptable but not perfect, your interest rate will be a little higher than it would have been with a better score. If you have bad credit, it is going to be a lot higher.

When deciding to buy a good used car versus a brand new one, there are several factors to consider. With a new car, you will be paying more for it. You will definitely be paying more in interest. The depreciation will be higher than on a used car depending upon what you buy. The minute you drive a new car off the lot, it begins to depreciate. Even though you get a warranty with new cars there are good used cars that have warranties as well.

If you know that in six months or a year you are going to be in the market for a used car auto loan, this would be a good time to check out your credit. If it needs a little boost to make the difference in the interest rate you will get, start working on it now rather than right before you go car shopping because it takes time for that to change, your credit score does not change overnight.

Get as much debt as you can paid off so that your credit does not look maxed out. If there are discrepancies in what you think should be on your report and what actually is, dispute the information. When credit companies send out a request to a creditor asking that they verify a debt, some will not bother to answer. When this happens the information must be taken off your credit report. So a derogatory item can disappear which will help your credit.

Choose the most car for the value. You cannot buy a Hummer and expect for the payments and interest and insurance to be a normal rate. However, you can buy a van or a SUV and it will not be so outrageous that you cannot afford to pay for it or run it. Because a new car costs so much more, the payments are going to be higher and you will not be figuring on all the expenses that will crop up. So take your time while looking for a used car auto loan.

For more insights and additional information about finding a Used Car Auto Loan as well as getting a free online used car quote, please visit our web site at http://www.car-loan-resources.com

A lot of people face problems buying themselves a new car and very often, they have to put their hands on a used car. However, they will still face problems such as tight credit checks in order to get auto loans. Under such circumstances, there is only one solution available, which is to apply for an auto loan for bad credit.

There is this myth among the consumers that you will not be able to acquire an auto loan easily with a bad credit. The truth is a person with a bad credit does not prevent him from getting an auto loan. However, such auto loans will be given only if the person looking to apply for the loan is planning to purchase a used car. Such transactions can take place easily as used auto loans for bad credit is a form of secured loan.

There is little to no risk on the lender as the purchase deal documents will be retained by the lender to allow him to sell the used car to recover the amount of loan in case of any default. Credit checks will not be performed as the loan is now secured. However, there are some risk on the lender as used cars might have a higher depreciation rate and the competitive nature of the loan business will force the lender to keep his interest rate low.

Before taking up an auto loan for bad credit, you are advised to only opt for a car in tip-top condition as a car in bad shape will only lead to higher interest rates and the cost of repairs will sometimes eat into your wallet. If there is some mechanical problems with the car, get it repaired. If this is not possible, do acquire the car under a warranty.

Another tip on acquiring such loans is to conduct a research yourself on the fair interest rates in regards of such loans. Some Internet services do offer consolidated data on the amount willing to be offered by shortlisted lenders and the interest rate that they will be charging. This will definitely help those who having a tough time traveling around asking for loan quotes.

Also, do keep in mind that finding for auto loan for bad credit lenders can result in a few crooked lenders. With this in mind, take your time to fill in some of your details to Internet services that will help you match your loan profile with reputable auto loan lenders. Their service will allow you to slowly browse through the list of potential lenders to make the best decision by yourself. On some occasions, apart from providing such services, they do provide free advices to help you make up your mind.

Thinking of getting an auto loan for bad credit?