When Does Legal Financing Make Sense

Legal financing is relatively new compared to other financial offerings. When a person is involved in a lawsuit and can’t wait for compensation, they may borrow money against their lawsuit. In return they will pay the lender back the principle plus the arrangement fees. Legal financing is one of the only types of financial tools that allows you to borrow against an uncertain outcome. When a person borrows money against their lawsuit, they are doing so on a non recourse basis. This means for any reason if the client loses his or her case, they don’t have to repay the loan.

Legal financing may not make sense for all people. The money is borrowed at a high rate because the investor is taking a risk on an uncertain outcome. It is always recommended that you avoid borrowing against your suit unless it’s for a dire emergency. This asset makes most sense for those folks that can’t afford to wait until compensation is paid. A person may need money for housing, car payments, doctor bills or even groceries. When a person just can’t financially sustain, it may make sense to borrow against your case.

The legal processes of obtaining compensation for a personal injury and commercial litigation case can take time. In some cases, people have to wait years before they will receive a verdict or settlement. When a person is out of work or lost a significant chunk of income, they may need a few dollars to hold them over. If a person is unable to pay for their housing or risk having their car repossessed, it may become a necessity to borrow against a claim.

People that are going through the legal process of a personal injury or commercial litigation case sometimes are forced into a smaller settlement. The defense typically employs a group of attorneys that are ready to fight a client tooth and nail. If a victim is financially incapable of waiting a case out, they may be forced into a smaller settlement. This can be financially devastating to those individuals that haven’t finished medical treatments or lost their life savings on a patent. While your attorney is recommending against a settlement, you may not have a choice. If a person is considering a much smaller settlement that pays a fraction of what has been lost, legal financing may become a much more viable option.

If you are considering a lawsuit loan against a case, you should always consider working with those companies that have experience in handling your said case. Not all companies take the same types of cases. During the initial application process, make sure you are working with a company that provides legal financing for your case. This can save you a ton of time and in some cases money.

Used Cars Can Make Dream Of Owning A Car Come True And That Too At An Affordable Rate

With rising costs of automobiles, it is becoming increasing difficult to purchase a brand new car. Also for students it is far easier to buy used cars than a brand new one. A used car comes at a lower cost and its maintenance is also comparatively low.

A new car has high cost and when you add several other expenses of accessories, fuel, insurance etc. your expenses are going to take a plunge northwards. So when you buy a car, it is essential that you calculate your budget and understand your needs and then only take a decision.

You have the option of buying secured or unsecured loans to finance your car. Now when you buy a secured loan, then you will have to pledge your assets. Whereas unsecured loans can be obtained without any pledging of assets but have to be availed at a higher cost.

With used cars, the car value being less, getting pre-approval of loan is fairly easy. When you have a pre-approved loan, it means that you already have the money to buy your car. This will put you in a better condition than before and you will be able to negotiate in a better way.

But to get loans at an affordable rate, it is essential that you understand what factors are considered by the lenders, more so for a used car, to calculate your interest rates.

Loan to value (LTV)
LTV is a value that shows the amount you borrow as a percentage of the book value of the vehicle you are purchasing. The current LTV that most lenders offer is between 80 % -115 %. The loan amount sometimes exceeds the car value because the additional money is given to pay for other supplementary expenses of registration, insurance, accessories etc.

Age of vehicle
When it comes to loans for older cars, lenders have their own benchmarks. For few lenders no car more than 8 years can be financed. For few others 6- 7 years is also the limit. So before you buy a used car, make sure that it is not too old otherwise no one would be willing to finance you.

Term of loan
Now this is also at the discretion of the lenders and it is generally between 36-72 months. Now you should remember that several lenders fine you in case of a pre-payment. So you should be very clear of this clause in your agreement.

Miles on vehicle
How much the car has been driven before is also of essential consideration when it comes to assessing your interest rate. Lenders have a cap on how many miles the car should be driven. If the car is driven more than the pre-determined limit, then the lender won’t finance your loan. For few lenders the maximum is 60,000 miles while few also offer up to 90,000.

Down payment
When you buy a new car, its value is higher than a used one. So when it comes to making a down payment it becomes a bit difficult for students or anyone else. So if you buy a used car then making a substantial down payment would also be fairly easy.

When it comes to buying car loan, shopping around is the best advice anyone can offer. Few companies offer better rates as they specialize in the lending for your used cars only. When you approach several lenders, you will be able to zero in on someone competitive and thus be able to save money. And when it comes to shopping there is nothing better than the web. Online search can be done while sitting in the comfort of your house. Also there are no middlemen and so you can save a lot on your interests.

So buying a used car is always a better option if you have financial constraints, after all what matters the most is, when you own a car, you can commute in a better way.

Discover Auto Loans for Extremely Bad Credit

Once upon a time it was said that you won’t be able to get a car loan if you don’t have a good credit standing. But like everything times have changed and that statement is no longer true. The market has changed and so has the demand and this created the availability of auto loans for extremely bad credit. That’s right; contrary to what you may have heard or believed even people with a terrible financial history can get approved for an automobile installment loan.

Granted I am not talking about a low interest loan or a brand new luxury vehicle. However the fact remains that a consumer with a credit history that may be considered by some lenders to be horrible credit can purchase and finance an automobile. Although the terms of the advance may be unconventional and seem outrageous to person with stellar credit, but at least there are options for a person that sorely needs a dependable mode of transportation.

These types of auto loans for disastrous credit are not available at your average car dealer. They are a specialty offered at Buy Here Pay Here (BHPH) auto dealerships. Typically these retailers only sell used vehicles, but more and more new car dealerships are starting to operate separate divisions of their business to cater to this customer. However only used cars are offered to these credit challenged buyers to reduce the risk to the dealership.

The secret to providing automobile loans for those with very bad credit is what is commonly called “In House Financing”. This is a practice where the selling dealer not only sells the vehicle, but they also fund the loan. No outside lenders or other financial institutions are involved in the process and all decisions to approve or reject the applicant/buyer are done in house. The dealer is the one responsible for approving the vehicle installment loan and they are also responsible for recovering the vehicle if the lender defaults on their loan.

This unconventional method of financing automobiles is becoming more popular because the traditional auto lenders have become more stringent when it comes to approving those with bad credit. However there are what is commonly called “Secondary Lenders or Sub-Prime Lenders” that will finance borrowers with weak credit that require a substantial down payment and other stipulations that make this option less than desirable for the car buyer that is already financially compromised. These types of lenders have strict credit score minimums and the best option for getting an auto loan for those with very bad credit is usually in house financing from buy here pay here dealers.

The Upside of Bad Credit Auto Loans

You might ask how can there be an upside to having bad credit and buying a car, but there is and if you haven’t been in that situation it is hard to comprehend. Imagine if you will a person that has been out of work for an extended period of time because of an illness, laid off of work because of the economy or some other reason and they don’t have an income and limited savings like so many Americans today. This lack of income and savings can quickly destroy your credit score if the bills aren’t being paid and it can even result in a vehicle repossession which will severely lower their standing.

It is said that the one of the top reasons for bankruptcy today is outrageous medical bills. Once a person gets back to work whether it is for medical reasons or lack of work rebuilding their credit score can take years. But having a dependable vehicle is a necessity for most people to get back and forth to their job. Without the ability to get an auto loan for extremely bad credit these people might never recover financially. This is just one scenario where buy here pay here dealers provide a valuable service to the automobile consumer when conventional lenders turn their back.