Archive for June, 2010
In recent years car insurance has increased in cost by as much as 20% a year. These costs are due to a number of factors: more powerful cars, more congested roads leading to higher accidents, and greater numbers of uninsured drivers which forces insurance companies to raise the cost of premiums to cover themselves for the risk that these uninsured drivers pose.
One of the groups hit most severely by these raises have been young and newly qualified drivers, and young men in particular. Last summer, for the first time, the average cost of a third party insurance policy became more expensive than the average cost of a comprehensive policy for the first time, reflective of the fact that it’s cheaper for young drivers to get third party coverage.
That average cost for third party coverage was £1,300, and for a lot of newly qualified drivers it’s a lot more expensive than that.
Research conducted by Co-Operative car insurance recently found that hundreds of thousands of parents are willing to lie in order to save their children money. Through a practice known as ‘fronting’ parents name themselves as the main drivers, thus benefiting from reduced premiums even though their children are actually the ones driving the car.
A surprising 41% of parents revealed that they are currently fronting and 61% said they would consider it in the future.
These numbers are of great concern to the insurance industry, not least because it places them at greater risk should the child of a parent who has fronted be involved in an accident. The insurance industry argues that the cost of insurance policies accurately reflects the risk of young drivers, and if the young drivers are not paying those costs themselves, then the insurance companies are the ones losing out.
Fronting is, also, illegal. Some industry experts have compared it to stealing, but whilst this might be going slightly too far it is fraud. The repercussions can be serious, not only if the insurance company discovers that you have fronted a policy (because they won’t pay out if there’s an accident) but because you may find yourself incapable of getting insurance in the future.
At the end of the day everyone should do their best to find the cheapest deal they can, but the costs of insurance accurately reflect the risks that young drivers pose. So, if you do your research and look around you can find some great deals, but they’ll still be quite expensive when compared to a policy for an experienced driver. If you’re looking for a good deal on your car insurance take a look at some of the deals that Co-operative Insurance is offering at the moment.
Tags: Accidents, Co Operative Car Insurance, Fraud, Hundreds Of Thousands, Industry Experts, Insurance Companies, Insurance Company, Insurance Industry, Insurance Policies, Insurance Policy, Parents, Party Coverage, Powerful Cars, Premiums, Repercussions, Risk, Third Party Insurance, Uninsured Drivers, Young Drivers, Young MenRelated posts
An introduction to collecting car brochures Part 3 What to look for when buying.
If you have read the previous articles in this series you should now have a clear idea of what brochures you are trying to obtain for your collection.
Now for the fun bit! Starting, maintaining and increasing your collection.
As you are collecting second-hand items, the condition of an item you are after can vary dramatically. Also, it does not help that sellers regularly either omit or misdescribe items.
Therefore, it is paramount that you ask the right questions and look for what the seller hasnt said as much as what he has in his advert description.
Having been disappointed on more than a few occasions when a pristine item has arrived through my letterbox, I have a checklist that I consult before committing to buying. The list is as follows:
1)What is the size of the item in centimetres? Pictures can be deceptive and what looks like a 21cm x 29cm item, may be much smaller in size.
2)How many pages long is it? Beware that on smaller brochures, there can be confusion between seller and buyer with what represents a page. My firm only uses the term pages for items that are 6 pages long or more. Otherwise, we use the term number of sides. As a reputable seller, this avoids any confusion and disappointment.
3)What is the reference number of the brochure? Most manufacturers have a code system for their brochures that you will become familiar with very quickly. By keeping a note of the references, you will avoid duplicates in your collection.
4)What is the condition of the brochure? Amazingly, very few sellers have a condition scale attached to the advert (we do). One persons pristine may be fit only for the bin in other collectors eyes! I therefore ignore vague words like the above and ask direct questions Has it any creases or tears and if so how many and how bad? Any fading? Any foxing (A term used to describe stains, specks, spots and blotches in paper)? Any water or damp damage?
5)How will the item be delivered to you? On auction sites especially, it is natural to go for the cheapest posting method. However, if the item is being sent for the cost of the stamp, can you really expect anything more than for it to be delivered in a flimsy envelope? Probably not. The only way that a collectable paper item should be sent is in a card-backed envelope preferably marked do not bend with the item wrapped in plastic to prevent water damage and a return address inside, just in case the postal system loses it. I also insist on a proof of posting, again just in case the item goes missing. For any item over a preset limit, in my case 30/$60, I offer to pay extra for recorded delivery. Better safe than sorry.
If you get a satisfactory answer to the questions above, you will be as certain as you can be that you will get the item and that it will be of a standard reflecting the price you have paid. The list sounds a bit daunting, but essentially it boils down to ensuring you know what you are getting and making sure it arrives in the same condition with which it left the seller.
Many is the time that I have received a sodden envelope that contains a perfectly preserved item because I have insisted on it being wrapped in plastic. If the seller says, he does not normally do this, offer to pay extra for the service or if practical, collect the item. If your seller cannot or will not take this care, may I suggest that you walk away and wait for another to turn up.
Please remember that for older brochures especially, a bit of fading and foxing and the odd crease or small tear is perfectly acceptable. In fact, I prefer an item with a patina to an as new item as it seems to have more character.
Finally, unless it is extremely rare, I would avoid buying any incomplete, falling apart or badly damaged brochures. On the whole, they have little or no value and it is best to wait for a better one to be offered for sale.
Next week, I will be discussing the correct way to store your collection.
Tags: Advert, Blotches, Brochure, Car Brochures, Car Part, Confusion, Creases, Disappointment, Letterbox, Occasions, Reference Number, Specks, Stains, Vague WordsRelated posts
It is a fact of life that many people need adequate forms of transportation to commute to and from their jobs. If you are like most people, your car is one of the largest expenses you will have next to your house. In all the research I’ve done on personal finance, how you go about purchasing an automobile can have a large impact on your credit and financial picture. If you go about purchasing a car the wrong way, it can put you in a financial strain which will be difficult to recover from.
Can You Afford It?
As of this writing, the average American makes about $33,000 per year. Most brand new cars cost well over $12,000. This means that the cost of a brand new automobile makes up a large percentage of the annual income made by most Americans each year. Most people cannot afford to pay $14,000 up front for a brand new car, so many choose to get car loans. When you take into consideration the interest that must be paid, it can take as long as 7 years for the average worker to pay off this loan. At the same time, the car will depreciate in value, and will be worth very little once it is paid off compared to its original value.
Job Security
It is also important to remember that most people don’t keep their jobs for seven years. Many people, especially those that are young adults, may work multiple jobs within a single year. This shows a lack of stability, and it is easy to get into a financial strain if the economy suddenly experiences a downturn and jobs become harder to find. It is for this reason that you should avoid car loans and consider buying used vehicles instead. There are many advantages to buying a used car instead of a new one.
Benefits of Getting Used
Used cars tend to be much cheaper than brand new cars. Because of this they are easier to save money for. They will often be sold by private owners instead of a company, and the owner is likely to be much more flexible. You save money because you are purchasing a car at a wholesale price. Unlike a car loan, you won’t have to pay interest when purchasing a used car. At the same time, there are some disadvantages to buying a used car. Used cars will often have a large number of miles on them, and are much more likely to breakdown faster than new cars. This could leave you having to make costly repairs.
Cant Addon
Used cars don’t have the options that you will get with new cars. The color and other accessories can’t be chosen, and what you see is what you get. While there is little you can do about this, you can have a mechanic check the used car prior to buying it to make sure there are no mechanical problems. If the transmission goes out, it could cost you well over $1000 to get it fixed, and this could put you into a financial strain. You should buy quality used cars from companies which have a reputation for making good vehicles.
Pay the True Value, Not What You Are Told
You should also check the bluebook value on any used car you’re interested in to make sure the price the owner is asking isn’t to high. If the bluebook value on a specific car is $3,000, don’t buy it from an owner who asks for $4000 unless there is a good reason to do so. Car loans should be avoided at all costs unless you have a stable job, a high income, or a large amount of savings.
Tags: Brand New Car, Brand New Cars, Buying A Used Car, Car Loans, Downturn, Economy, Fact Of Life, Forms Of Transportation, Job Security, Jobs, Many People, New Automobile, Personal Finance, Private Owners, Purchasing A Car, Seven Years, Wholesale, Wholesale Price, Wrong Way, Young Adults