Motorists in the UK are wasting an estimated £3.6 billion pounds a year through failing to shop around for car cover and so could be more likely to need a car loan.This equates to £120 pounds, per person, per year.

The news follows the release of new figures from online bank Egg that show that one in five motorists simply accept the renewal quote offered to them by their current insurer.”Every year, millions of motorists end up paying over the odds for their car insurance because they do not get around to shopping around for competitive cover,” said Andy Deller, director of banking and insurance at Egg”Some insurers prey upon this apathy by hiking their premiums in the knowledge that many drivers will not bother switching to another provider,” he added.Egg’s figures show that motorists saw their premiums rise by an average of six per cent a year, while 1.28 million motorists saw their premium rise 15 per cent or more. However around 5.95 million motorists - representing 20 per cent of those on the roads - accepted their renewal quote without shopping around, with 3.4 million more (11 per cent) only looking at one other quote.Of those that did not shop around more than one in three (38 per cent) said they did not have the time, did not see the point or found it too confusing looking for new cover.The remaining two thirds of people (62 per cent) said they were not shopping around as they believed their provider gave them a good deal and were loyal to them.

Robert Amlot has a concern, he thinks that the majority of people who buy a car could be enjoying it more than they are, and he knows why they aren�t. He says that most people go to the dealership and look at the car that they want, they test drive it, agree on a price and buy it. So why is this a bad thing? Because most people end up leaving feeling like they are spending too much for the car even though it was the price they wanted.
Sometimes they end up spending more than they would have, other times it is the fact that the interest rate they ended up getting was too high  either way they are not happy with the monthly payment that they know they are going to be responsible for - for the next 48 months. But Amlot says that there is a better way to buy a car.He says that buyers need to go to the bank or the credit union before they go to the dealership. Not only will they be able to go with cash in hand,which helps their buying power, but they will know exactly how much they can afford and what they can’t. They will also know the interest rate for their new purchase, so that when they go to buy the car, the financing part of it is already taken care of.Amlot maintains that if you know where you stand, and don’t have the dread of waiting to see what your monthly payment will be, you will have a much better time picking out the car you want. This way, you only look at cars that you can afford, and then drive one home knowing that this is yours for the next several years  and it is a good thing instead of a payment that you dread.

According to Automotive News, Michigan’s credit unions have been increasing at a surprising speed, and they think that a lot of it has to do with the fact that they are offering much lower rates than the banks that the dealerships traditionally use. They have found that the interest rate on a auto loan has been running 6.14% at the credit unions, and 7.35% at the banks.They have found that the percentage of people using the credit union auto loans has increased over the past two years from 3% to 10%. The Michigan Credit Union League President David Adams says that the jump is due to two things: the aforementioned interest rate that they charge, and the selling off of loans and how they affect them.Because of the way captive lenders have been sold off, it has led to better working relationships between lenders like credit unions. They usually have a vested interest, which has a lot to do with the larger influx of car loans coming their way.
The biggest thing however is the speed at which the credit unions have been processing their loans. It is in the dealers best interest to get a loan processed as soon as possible, so that they don’t lose the deal. If a lender starts taking too long to approve a car loan, customers have a chance to think about what they are doing and many times they will simply walk away from the deal so that they can think about it some more. With credit unions processing them so fast, it has made them a major competitor with the larger banks who used to be known for the number of loans that they would process and how quickly they could do them.

CompuCredit Corp is pleased to announce that they have made two different auto loan deals in California with the assistance of the firm of Troutman Sanders. Troutman Sanders says that it was through the work of two of their partners, W. Brinkley Dickerson, Jr. and Andrea M. Farley, that the deals were a success.CompuCredit first purchased ACC Consumer Finance LLC of San Diego on February 2nd; then later that day purchased a $195 million auto loan portfolio from Patelco Credit Union of San Francisco. For both transactions, the company paid a total of $168.5 million in cash and debt. CompuCredit had disclosed the transactions in the annual report that they had filed on February 28th. The annual report was filed with the Securities and Exchange Commission. They said that without the help of their outside council and internal council the deals could not have gone off as smoothly as they did.The company used internal council David J. Maslia and Rosalind T. Drakeford to complete the acquisitions in addition to the assistance they received from Troutman Sanders.

HSBC Malta is trying to get your auto loan business. They consider themselves to be more competitive that most auto loan dealers, and say that they are willing to go the extra mile to get your business. Their motto is Dont borrow money to buy a car without talking to HSBC, as they believe that they can beat most auto loan prices, but they want borrowers to give them the chance.In conjunction with the Motor Fair, they are offering special auto loan deals until May 31st that they think most borrowers won�t be able to turn down. They are going to carry a 2% discount on their interest rates for the first year, with another 1% discount for the remainder of the auto loan up to seven years. This deal is good for all new car auto loans.They are also working deals for car loans for used cars as well. They have a minimum car loan amount of Lm5,000 and a maximum auto loan amount of Lm25,000. They are looking to finance cars that are up to three years old, with a five year auto loan term. This deal is very competitive, and borrowers would have a hard time finding a better car loan deal for used cars that this. They say that anyone interested in one of the car loans can come visit them at the Motor Fair in Naxxar or by phone at 2380-2380. They are also offering information on their car loans Their company says that since car ownership is so popular in their countries, they know that they have to keep changing to earn customer’s car loan business. They say it is their number one priority to give the best possible customer service and deals anywhere.

With the increasing car loan interest rates, auto finance companies have been feeling the brunt of them. They used to be considered a great place to put your money, but with the new trend of increase car loan rates they have become somewhat unappealing to most customers. You are seeing major players in the auto loan industry, like Maruti Udyog and Bajaj Auto, falling below their normal stock performances. However, with major players feeling the brunt, you also have the smaller ones like Shriram Transport Finance and Bajaj Auto Finance, who have fallen below normal market operating performances over the last six to twelve months, and are expected to drop even more. They are competing against each other in a rapidly declining auto finance industry.They are also looking at some intense competition from each other as well as smaller margins, as more and more car buyers choose to pay cash or keep the car they have instead of getting an auto loan at a higher interest rate. They are left with very limited pricing power, as well as higher borrowing costs which are adding to the interest rate crisis. Experts think that if the current car loan interest rates continue to rise, not only will the margins continue to deteriorate, but borrowing costs will continue to increase. This leaves the dealers and the car loan industry with these added costs as they can only pass so much of it onto the car buyer, or they just won�t buy the car. Experts are finding that putting their money in banking stock instead of auto finance companies is more feasible for them. Their stocks are more affordable, and more attractive than those for auto finance companies.

Enterprise Life Insurance Company has reached a settlement with Texas Attorney General Greg Abbott in regards to the credit insurance that they offered to customers on their auto loans. The company had come under fire for offering the auto loan insurance to customers that did not need the car insurance for as long as they did.The way the insurance worked, the auto loan consumer would purchase the extra insurance to cover the payment of the auto loan should the purchaser become disabled or died. The insurance was there to benefit the consumer so that they or their survivors would not be settled with the debt.However, the full cost of the credit auto insurance policy was bundled into the auto loan, so that it was spread out over the course of the loan. However, if the person paid the auto loan off early, they would still have paid for the insurance, even though they did not actually need it. Enterprise should have returned the premiums back to the consumers that paid their auto loans off early but they didn’t.The settlement ended up being for $4.9 million, and would give an average of $230 back from their premiums. More than 21,000 Texans will be getting the refund. Under Texas�s auto insurance code, Enterprise was obligated to return the premium and thus with this ruling they will.