Before purchasing a dream car, try to assess if the budget can really afford it. Questions like, how will it be paid, who will be helping to pay for it, what is the price limit of the car to be bought, and how long will it take to pay off the car? These should be considered even while planning to buy the car. The trend nowadays is that people buy the cars by cashing out the down payment, and the balance will be paid by installment. Others are just lucky enough to have saved the right amount of money that they are able to cash out the total cost of the car, which, by the way, seldom happens now. Never set aside the possibility of paying thousands of dollars when buying from a dealer or a specific car company, where in the end, charges you more for the interest which takes even years to pay.
Once you have found a way to finance the car you are eyeing on, then it’s time to start shopping around. There are credit unions and even local banks that are willing to loan the needed amount to purchase the car with an Annual Percentage Rate of only 1.9 per cent. However, this may turn out to be a catch, since this will only be happening on the first year. Without prior notice, these interest rates can increase which is a total inconvenience for those with just a fix income every year.
It is a big plus if a buyer is a member of a credit union. Being a member could save you from the trouble of spending a whole day in a lender’s office because the processing of the loan could only take just a few minutes after filling out the necessary papers for the request. In a credit union, fifteen to twenty minutes is all that is needed to do the application. They could even loan even up to $25,000.00 within just an hour after signing the papers.
It will be very helpful when a research is made prior to making that loan for a car. Believe it or not, car dealers are really digging out most of the penny in a buyer’s pocket by issuing interest that is sometimes unreasonable. There are two things needed to consider when thinking of financing a new car:
First, what’s the price willing to be spent by a buyer? More often than not, other people would rather ask themselves the question: How much of the car price do they intend to buy instead? They will be willing if the know they can afford their choice. Consider monthly regular expenditures. The monthly payment for the new car should not get in the way of paying the fixed monthly dues in the household. If in case it does, by merely doing a math, then just consider a second hand car. Just make sure that all is checked and examined to avoid hassle in the future.
Second, is it really important to change cars every two to four years? Consider cars offered on a lease, if so. Other dealers and car companies offer the leasing of a car for that amount of time, which you can return but no money will be refunded. However, there is an allotted amount of distance or mileage that should be covered during those years of lease, but this is negotiable. On the other hand, if a buyer is not interested in changing cars, it’s best not to opt for the cars for lease.
It is safest to get a loan from a credit union or a financial institution instead of a local car salesman; they would definitely try to reach even a buyer’s bottom dollar. Getting information from someone whom can be trusted and expert about financing a car, for they will be able to give you tips at your own interest. Financing either a new or a second hand car is a lot of sweat, but the determination to get the best car at the best price can be considered a success.
This should be a win, win situation for anyone. After all its your money that is at stake here. Do your research and it can be a beneficial decision on your part.
Tags: Amount Of Money, Annual Percentage Rate, Banks, Budget, Car Company, Car Dealers, Car Financing, Car Purchasing, Car Tips, Cars, Credit Unions, Dream Car, Few Minutes, Finance Car, Inconvenience, Interest Rates, Necessary Papers, Prior Notice, Thousands Of Dollars, Twenty MinutesRelated posts
Before getting your own car, it pays to do some homework. Think about what you need, what the car will be used for, and your budget. Look in books and online and think about repair costs, safety tests, mileage etc.
All this research can save you some serious money and help you avoid being ripped off.
Once youve chosen the car you want, you have to decide how you are going to pay for it. You can pay the whole amount upfront or you can finance the purchase over time. If you do use financing, you should be aware that this increases the total cost of the car as you must pay for the car plus the credit.
Once you have decided on how much you can put down, you can look at the annual percentage rate (APR) of the loan and the length of the loan and see how much your monthly payments will be.
Generally speaking, the shorter the term of the loan, the higher the APR. If you are in your teens, cosigning with your parents will help you to get a better rate. You may also want to think about paying in cash for a less expensive car.
Dealer or Private Sale?
This is an important decision to make. If you buy from a dealer you will generally pay more. But you will benefit from knowing that if there is a problem you can return to the dealer to complain. Many dealers offer warranties and guarantee the quality of the car.
On the other hand, buying from an individual will offer less security as the car will generally be sold as is, which means you must bare the cost of any problems that later arise. You also cannot go back and complain to an individual if something they told you turns out to be untrue. That said, buying from an individual can often offer very good value.
First of all, they will not add a mark up on the price, which is what a dealer would do if he had bought it first. Also, if you bring along your own mechanic, or someone who knows about cars, you can have it checked out to make sure everything looks ok.
Before you buy the car, make sure you examine it with an inspection checklist. Get a good test drive over varied road conditions and be sure to get the cars maintenance record. It is also worth having the car inspected by a mechanic if you have serious concerns about it.
Finally, before you buy, make sure you are ready to meet all the associated costs of having the car. These include insurance, fuel, maintenance and repairs.
Tags: Annual Percentage Rate, Annual Percentage Rate Apr, Budget, Buy Car, Buying A Used Car, Buying Car, Car Credit, Car Dealer, Cars, Expensive Car, Homework, Inspection Checklist, Mechanic, Mileage, Own Car, Parents, Safety Tests, Serious Money, Upfront, WarrantiesRelated posts
Buying A Used Car: Why You Should Attend A Used Car Auction
Are you in the market for a used car? If you are, have you ever thought about attending a used car auction? Although used car auctions are a great way to get affordable vehicles, it is as if they are a well-kept secret. It is time that you familiarize yourself with this well-kept secret, as it a great way for you to save money.
When it comes to used car auctions, many individuals do not even know that there is such a thing. Those who are somewhat familiar with used car auctions often associate the cars available for bidding as cheap, low-quality vehicles; like junk. Of course, you may run into a few less than perfect vehicles at a used car auction, for the most part, you may be surprised with just how many quality vehicles you can purchase. That is why you should attend a used car auction.
Speaking of attending a used car auction, there are many individuals who mistakenly believe that they must buy something at an auction that they attend. This is not how a used car auction works. While different used car auctions are operated in different ways, you and other bidders have the opportunity to bid on any used vehicles that you would be interested in owning. Should you not find a used vehicle that meets your interests, you do not have to place a bid. In fact, many auction attendees are actually just there for viewing. If you are unsure as to whether or not you should buy a used car from a used car auction, you may want to think about attending one just to see how the process works.
Another one of the many reasons why you should at least think about buying a used car from a used car auction is because of the auctions that you have to choose from. No matter where you live, you should be able to find at least a few used car auctions to attend. While you can attend any used car auction that you would like, you may want to take the time to find the perfect one. This will increase your chances of walking away with an affordable used car. Many used car buyers have seen success with auctions that are open to the public, ones that are free to attend, or ones where you are able to inspect all vehicles before placing a bid.
As previously mentioned, you may actually be surprised with the type of vehicles that you are able to find for sale at a used car auction. Unfortunately, many individuals mistakenly believe that only vehicles that were unable to sell outright, by the owner or a by a dealership, are placed into used car auctions. Yes, it is true that some of these vehicles may make their way into a used car auction, but those are not the only types of used cars that can be found at a used car auction. You should know that many used car auction houses or companies have a program is known as a consignment program.
A consignment program is where a used car auction house or company assists a car owner with the selling of their vehicle, for a reasonable fee. Instead of spending time fielding calls from potential buyers and spending time on marketing, many car owners now choose just to let a used car auction house or company do the work for them. What does this mean for you? It means that you could get a like-new vehicle for half of its value at a used car auction. In all honesty, you never really know what types of vehicles you can find at a used car auction. That is why it is advised that you at least think about attending one.
If you are interested in attending a used car auction and you live in or around the Chicago area, or are willing to travel to the area, you may want to checkout North Shore Auto Auction. By visiting their online website, which is located at www.publicautoauctionnst.com, you can find updated information on upcoming auctions, as well as the vehicles that will be available for bidding in those auctions.
Tags: Auction Attendees, Auction Car, Auction Works, Bid, Bidders, Buy A Used Car, Buy Car, Buying A Used Car, Buying Car, Car Auction, Car Auctions, Car Buying, Cars, Different Ways, Low Quality, Money, Quality VehiclesRelated posts
A used car is also known and called as a pre-owned vehicle. This could be a car, an SUV, a pickup truck, or whatever vehicle that has already been owned by a person. However, for some reason that owner has sold it back to a dealership. If you are thinking of buying that one, then you are buying a used car.
Jerry Christopher has been working in the automotive industry for more than two decades. He says even when buying a used car, there are myths that one should be cautious about. After all, he also would like everybody else to get their fair share of the money they are spending on a used vehicle.
One myth that Christopher is talking about is that most people think that they should buy a used car that comes from a brand that has been known for making quality vehicles. However, this automobile expert says that even the best model or best make of cars would not be a good buy if the previous owner did not know how to properly maintain it. Sooner or later, as the buyer, you might be experiencing major problems with it that would only cost you much on your pocket.
Aside from this, another myth that people scouting for a used vehicle believe in is that once the previous owner of the used car has provided them with the vehicles maintenance records, they would be safe from any kind of future problems regarding the vehicles performance. However, Christopher says that there are documents that could be fraudulent and fake. He claims that there are dishonest owners who would falsify their records so as to show that they did take good care of the vehicle even if the vehicle did not receive any kind of maintenance during the period that it was under their ownership.
What is best to be on the alert about any potential signs of dishonesty on the sellers end. Aside from this, you should also be ready by knowing the right amount of information on vehicles and their maintenance.
Tags: Automobile Expert, Automotive Industry, Buy Car, Buying A Used Car, Buying Car, Cars, Decades, Dishonesty, Fair Share, Maintenance Records, Money, Myth, Myths, People, Pickup Truck, Pre Owned Vehicle, Quality Vehicles, Scouting, Signs, SuvRelated posts
There are many challenges you will face when buying either a new or used car. It depends on the model that you want, how much is the budget, the size of your family and the options that go with it.
If you have an idea on the right car, then a little research on the value of the car in the market to date will be able to help the you when approaching a dealer.
This can be done by checking the internet or looking through the local newspaper before going to the various dealers in the area to make comparisons.
If the ideal car is not available on the lot, the if you tell the dealer about it these people can help by looking for that particular model or offer a similar car similar to your choice.
Since dealers often want to get rid of the cars quickly, it is also possible to get a good deal on what is available as long as it meets your requirements.
Most cars have a maintenance record. The buyer must ask the dealer to see it and if it is not available, then you should contact the dealership or repair shop where most of the work was done.
The buyer has the right to see a copy of the dealers warranty. To be safe, you can also ask if a service contract is provided in buying the used car. This contract that is offered by the dealer may or may not provide coverage that is in the manufacturers warranty which may cost extra.
Since the warranty usually comes when buying a car and the service contract does not, it is best to ask if you need to avail of by answering some questions;
What are the differences between the coverage of the warranty and the service contract?
What repairs are covered?
Is routine maintenance covered?
Who will pay for labor and parts if brought to the shop?
Who is authorized to perform the repairs and where?
How long does the service contract last?
What are the cancellation and refund policies?
Just looking at the car will not give information if the car is in good condition. It should be test driven under various road conditions such as the highway or in traffic.
Since most people are not that knowledgeable about cars, it is advisable to bring the car to a reliable mechanic for proper inspection.
Tags: Budget, Buying A Car, Buying A Used Car, Cancellation, Car Dealer, Car Service, Cars, Challenges, Face, Ideal, Maintenance Record, Manufacturers Warranty, Model Car, New Car, Refund Policies, Right Car, Road Conditions, Routine Maintenance, Service Contract, WarrantyRelated posts
Buying a car can be hard enough; do I want a hatchback, saloon, 4-door, 2-door, convertible, four-wheel drive? How much can I afford to pay for insurance? Furthermore, being given the hard sell in the dealership showroom can add more pressure. However, do we need the hard sell or have we already subconsciously made a decision on the car we would like to buy?
Studies have shown that many customers do not need the hard sell, but instead just a picture to show off the features of the car. Weve all probably seen an advert on television or a picture in a magazine or newspaper, which has made us look at the car and want to have one on the spot! Obviously, it aids the customer if the picture is of something sleek and stylish rather than a rust-bucket, which is why the desirability of vehicles such as a sporty hatchback is high.
Manufacturers are clever in the way that theyll do this. Youll notice on more occasions than not with car adverts that the price provided is not for the car you are seeing. The picture of the car will be the top of the range version with all of the possible extras, but in fact the price youll be told is the starting from price for the lowest car in its range. The price for the actual car you are viewing will usually be in small print at the bottom of the advert.
Do, however, the roles of celebrities come into play in persuading us to purchase a certain make or type of car? I believe that they do.
Take a look at the BMW X5 for example. Since the release of this car, every celebrity and their dog have one. I believe as a consequence of this, the amount of non-celebrities driving this car has risen dramatically. The same can be said for a few cars, which brings the assumption that we, to some extent, base our lifestyles on celebrities, who influence us to purchase cars that are deemed fashionable and popular by them.
The bases for buying a certain car by many will be will my friends laugh at me? and will I look cool in it?. After all, the technological strides of manufacturers recently have meant that the reliability and performance of vehicles is very good, and certainly more than adequate for most drivers using city and country roads. So what else can there be to influence the decision of car buyers other than the cool factor?
Maybe, the running costs and fuel consumption is prominent somewhat; especially for the four-wheel drive and high performance vehicles. However, the celebrity power has certainly persuaded many in their car buying decisions, and will almost definitely continue to do so.
Tags: Advert, Aids, Assumption, Behaviours, Bmw, Bmw X5, Car Adverts, Car Buying, Car Price, Cars, Celebrities, Celebrity, Consequence, Extent, Four Wheel Drive, Insurance, Lifestyles, Occasions, Rust Bucket, WheelRelated posts
Car loans are more common than ever. Most people are learning that they can get into the car that they want much easier and much more quickly if they have a loan than if they wait until they have saved enough. The fact of the matter is that cars are expensive, even those that are not all that fancy. If you want a car that will last and will get you from point A to point B safely you’ll need to invest in it. And a simple way to do this is with a car loan.
Applying For a Car Loan
Applying for your first car loan is a little bit unnerving because you aren’t quite sure what you are getting into. The process is actually quite simple and depending on your credit, your lender, and your car dealership you could be driving home in your new set of wheels the same day as you fill out an application! Sound too good to be true? The whole point of car loans is that they make it simple for people to get a new car without actually having the cash on hand.
When you apply for a car loan you will first need to know what sort of car you would like to buy. Most lenders need to know the make and model of the car that you are looking at so they can verify that it is a car worthy of their financial support. In addition to providing the lender with this information you will need to supply your personal information such as your full name, your mailing address, your financial information, your date of birth, and your social security or tax payer identification number. When the lender has all of this information they run a credit check. They look to see how responsible you have been with credit in the past.
If you have had credit challenges in the past, there is no need to worry. There are many lenders out there who deal with those that have less than perfect credit. Regardless of your credit, you will usually hear back from the lender within an hour or so and they will let you know how much they are willing to finance, how much of a down payment you need if any, and what the terms of your loan are. The terms refer to how long you have to pay off the loan and what your interest rate is. Once you sign the paperwork and verify that you have automobile insurance you are free to drive your vehicle home.
With a car loan you will generally need to make one monthly payment. This not only pays on the amount that you have had to borrow to buy the car, but also the interest on the loan. While the idea of paying on a car loan is not something that people look forward to, it is a lot easier to come up with the money for a monthly payment than it is to save up for the car! Car loans really do make it simple for the average consumer to get that new car.
Tags: Buying Car, Car Buying, Car Dealership, Car Loan, Car Loans, Cars, Credit Challenges, Credit Check, Date Of Birth, Fact Of The Matter, Financial Information, First Car, Lenders, Little Bit, Model Car, New Car, People, Set Of Wheels, Social Security, Tax Payer Identification NumberRelated posts
Do You Make These 5 Mistakes When Buying Car Insurance?
Here are some of the common mistakes many car insurance policyholders make. See if you recognize yourself:
You assume the insurance salesman is your friend.
Insurance salesmen are exactly that — salesmen. And they do get compensated with bonuses and other rewards for selling certain types of policies. Those policies are not always the policies that are best for you. Remember that the next time you are shopping for auto insurance. Generally speaking, insurance salesman are rewarded for selling the smaller policies that leave the insurance company less exposed in the event that you want to make a claim. These are the policies that are most profitable for the insurance company. So, as surprising as it might sound, you may actually be under-insured.
To make sure this doesn’t happen to you, make sure that you have the basics: liability coverage, comprehensive coverage and collision coverage (see below).
Your deductible is too small.
Many consumers think that they need to protect themselves against every little scratch and dent. That’s a bad idea. You should only insure yourself for those things that you cannot afford to lose. If your car is only worth a few thousand dollars, don’t spend that much on premiums for collision coverage by buying a small deductible.
Another reason this is a bad idea is that you’ll be tempted to nickel and dime your insurance company with every little thing that happens to your car. Eventually, your premium will go up or they could say, “we’re declining future coverage.”
So seriously consider getting a much higher deductible — maybe even as much as $1000. You’ll save money and your coverage will probably extend to a much higher limit.
All your cars have the same insurance coverage.
If one of your cars is an old beater, don’t cover it the same way that you cover your other cars. For example, if you have an old pickup truck that you use to transport building materials and you don’t care if it gets dented or scratched or whatever, just get the minimum amount of coverage on it. Who knows? Maybe you just drive it a few miles a year. Get insurance that is appropriate for that vehicle and cover your other vehicles in ways that are appropriate for them.
All your cars are jointly owned.
There’s really no reason to own a car jointly. If you share ownership with your spouse, it’s possible that you could be exposed to liability if your spouse causes an accident. In other words, both of you could be sued. Similarly, when your child buys a car, or if you buy them a car, put the car in your child’s name. That way, you can avoid liability for any accidents caused by your child.
You forgot your umbrella.
Here’s how umbrella coverage works: if you’re in a very bad car accident that causes a lot of property damage that is beyond which your insurance policy covers, you may have to pay massive amounts of money out-of-pocket. This is what umbrella policies are for: to protect you from liability that is way beyond the limits of your standard auto insurance policy. These umbrella policies are usually pretty cheap (a couple of hundred dollars) and can give you important coverage.
Conclusion
Hopefully this article has showed you some things that you can do, that will help you avoid common mistakes that car owners make when they buy auto insurance.
Tags: Auto Insurance, Bad Idea, Buying Car Insurance, Cars, Collision Coverage, Consumers, Insurance, Insurance Company, Insurance Coverage, Insurance Policyholders, Insurance Salesman, Insurance Salesmen, Liability Coverage, Nickel And Dime, Pickup Truck, Premiums, Rewards, Scratch And Dent, Shopping, Thousand DollarsRelated posts
How To Buy A Car (Trust Me – I Used To Sell Them)
We Americans like to buy a car at the dealership in one afternoon, and the dealerships try very hard to make us think that is possible and even smart. But its not. Realize how big a purchase a car is. And it is complicated.
Buying a car is the second-largest purchase most people make after buying a home. When you buy a home, think about all the help you have: you have a broker to help you find the best home for you, and a mortgage broker to help you find the best financing. And an inspector to make sure the house is safe. Sometimes you also have an attorney to make sure the contract is fair, and a title company makes sure the title is clear before you pay for the home. But when you buy a car, there is not one person there to help you. And the dealers want you to THINK you can waltz in to the dealership and buy a car from start to finish in an afternoon and sure, you can, but you will pay much much more if you do it that way. Here are four tips to give you an advantage:
1. Make at least one trip to the dealership JUST to look around and drive the cars. Promise yourself you will not buy that first time, no matter what. Why? So that you can go home and look up information on the internet, including dealer cost, safety ratings, option prices, and any manufacturer to dealer incentives that the dealer has certainly not told you about!
2. Know what you can afford before you visit the dealership to buy! This means talk to your personal banker or credit union officer before going to the dealership. Why? Some dealerships might actually WANT you to sign on for a more expensive car than you can afford so that you will then default on your loan and they will repossess the car.
3. Whenever the finance manager calculates something, insist that he show you the calculation. Why? The easiest place for dealerships to take more money from you is in the monthly payment. It is VERY common for dealers to increase monthly payments by just a few dollars, even $20 per month, over about a five year period is like giving the dealership $500 extra on the spot.
E.G. If you tell the salesman you can afford a payment of $500 per month, he might find a deal for you in which the payment works out to $460 per month. But instead of telling you that, he might tell you that he has great news!! – - that your payment is down to $480. What happens to the $20 difference between the lender’ $460 per month and the $480 the dealer is charging you? It goes right into the dealers pocket, and you will never know it unless you Len how to run the calculation yourself, or at least run it by your banker. How much would a dealership make, taking in an extra $20 per month for five years, on a loan with an interest rate of 3.9%? About $500. It is next to impossible to figure this kind of thing out without a financial calculator, or a friend with a financial calculator. But its worth the trouble!
4. Write down everything you learn about the car, from the internet, magazines, and especially from the salesman. Why? Doing this keeps everybody honest, and literally on the same pageYOUR page! Your salesman will see that you are writing down everything he says, and he will be less inclined to lie, or to try to change information on you later on. This tip is all about staying in control.
Tags: Buy A Car, Buy Car, Buying A Car, Buying A Home, Buying Car, Car Dealership, Cars, Dealer Incentives, Easiest Place, Expensive Car, Finance Manager, How To Buy A Car, Money, Mortgage Broker, Option Prices, Personal Banker, Purchase A Car, Safety Ratings, Title Company, WaltzRelated posts
While it is possible to get a great deal and a bargain car at an auction, buying a used car this way isnt always the ideal way to buy a car, there are better ways.
If it is your first time of buying a used car or you know very little about cars, then buying from an auction isnt advisable. Perhaps the biggest problem with purchasing a car from an auction is the fact that that you have very little cover to fall back on if there should be any problem with the car. This is usually due to the auction house issuing a disclaimer, which many do, which states something such as sold as seen.
While many goods are covered by the Sale of Goods Act, some of the cleverer auction houses can get around this by altering the conditions of the sale by taking away the buyers rights under the Act.
If you do wish to purchase a car from an auction then it is advisable to visit an auction house several times before actually deciding to bid on a car. This way you can get used to the terminology used and the way auction houses work. It is also advisable to take someone with you who knows something about cars when you do decide to buy.
Most auction houses will hold preview days where you look at the car up for auction prior to bidding. This will give you a good chance to have a look at the vehicle.
You would be wise to consider having a vehicle data check done, which is a service that checks a vehicles history. It will show up really valuable things such as whether the car has been stolen, or the mileage tampered with etc.
Finally, it is essential that you know your spending limit. Dont ever be tempted to go over that limit no matter how good a deal something may seem.
Tags: Auction Bidding, Auction Car, Auction House, Auction Houses, Bargain, Bid, Buy A Car, Buying A Used Car, Car Auction, Car Buying, Cars, Checks, Good Chance, Ideal, Mileage, Preview Days, Purchasing A Car, Second Hand Car, Several Times, Tampered