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, TamperedRelated posts
Should I Buy From A Used Car Dealer Or Privately?
Buying a used car from a dealer or buying it privately, which is the best?
Both have their pros and cons and these should be weighed up against the other before any decision is made.
Firstly, going with a dealer you will have a wider choice over the cars on offer, certainly more than you would by going privately.
When buying from a dealer the car will have been cleaned and any faults will have been corrected and it will come with some sort of warranty. When purchasing privately you will be liable to fix any corrections and have to valet the vehicle yourself, plus you will have no comeback if something serious goes wrong within the first year.
Going with a dealer gives you plenty of time to check the car over in perfect lighting conditions; however you might feel rushed or pressured when looking a car over privately.
A dealer usually wont mind at all if you wish to bring in your own expert to look over the car as they will have nothing to hide. However when going privately it could be harder for you to get an expert to look over the car with you.
Dealers also can offer finance often with high interest charges but this still gives you the option of finance which may be beneficial to you. With a private seller, you will need to pay the money in full.
The downside to buying from a car dealer is that the car could cost you more than by buying privately. Also, you wont be able to interrogate the owner of the car through a dealer however when buying privately you have the opportunity to do so.
It really is all a matter of which you prefer as there are good and bad points either way, but the above tips will hopefully give you a better idea of which way to go when looking for your used car.
Tags: Buy Car, Buying A Used Car, Buying Car, Car Buy, Car Buying, Car Dealer, Car Dealers, Cars, Downside, Faults, Finance, High Interest, Interest Charges, Lighting Conditions, Money, Private Seller, Pros And Cons, Purchasing, Valet, WarrantyRelated posts
There is no secret that auto insurance prices are on the rise and have been that way for a good many years. There is something that makes us all cringe in response to paying for something that we may very well never use and at great expense to us. So we are all in search of the cheap auto insurance. This can be a game that takes a good long time to play but in the end it should be well worth it. Of course this is not something that will happen over night and there is several matters that go into the whole thing. Auto insurance is tricky business and the companies not only want to protect you, but also their bottom line in the end. So if you are in search of the cheap auto insurance then you should follow a few general rules.
The best way to get cheap auto insurance is to be a good driver. That is really a common fact that many people over look these days. Insurance companies reward those drivers that have had no accidents, and no tickets. Of course this may be easier said than done to be honest considering even accidents that are not your fault look bad on your record. The tickets thing is what really matters most. Just one ticket for speeding can raise your auto insurance rates by over thirty percent a year. So you can see that it is best to obey the traffic laws at all costs no matter what. This will give you the very best cheap auto insurance with most companies.
There is the matter of shopping around for cheap auto insurance as well. The one mistake that people often make is to think that the company they have been with since they were young is giving them the best rate. This is the farthest thing from the truth in all actuality. You will find that with the vast array of auto insurance companies that sprinkle the country side that the prices will vary greatly. Many times you can save hundreds of dollars in premiums by going with another company.
Finally, cheap auto insurance is given to those that have easily insurable cars. This is no secret, but you should have a car that has a good safety rating with the insurance companies in order to maintain the best rates on the insurance. The auto insurance companies do not like those little sports cars that move at top speeds as they can be the ingredient for disaster and much expense.
Tags: Accidents, Actuality, Array, Auto Insurance Companies, Auto Insurance Rates, Bottom Line, Cars, Cheap Auto Insurance, Cheap Insurance, Company Insurance, Cringe, Insurance, Insurance Business, Insurance Prices, Long Time, Mistake, Premiums, Shopping, Traffic Laws, Tricky BusinessRelated posts
Tips For Buying A Used Car At A Used Car Auction
Are you interested in buying a used car from an auto auction or a used car auction? If you are, have you ever done so before? Unfortunately, when it comes to buying a used car from a used car auto auction, there are many first time bidders who end up making costly mistakes. To prevent yourself from being one of those used car auction bidders, you will want to continue reading on, as a few helpful used car auction tips are touched on below.
Perhaps, one of the most important things that you need to remember, when it comes to buying a used car from a used car auction, is that not all used car auctions are the same. Auto auctions come in a number of different formats. For instance, there are auctions where only used cars are sold and then there are others auctions where a large number of products, including used cars, are being sold. To have a larger selection of used cars to choose from, you may want to focus solely on auctions that specialize in the auctioning of used vehicles.
In keeping with the type of used car auction that you wish to attend, it is also important that you examine whether or not you are even able to attend. If you are just one lone individual who is looking to buy a personal car for yourself, you will want to try to find a public used car auction. Public used car auctions are auctions where anyone is able to walk in and place a bid on a used car. It is important that you know what type of used car auction you plan on attending, as there are auto auctions that require proof of a dealership license.
In addition to the type of used car auction that you wish to attend, it is also important that you examine how the auction is operated. For instance, are you required to arrive at the auction and bid on a vehicle that you have never previously seen or had the opportunity to examine? While a large number of auto auctions work this way, you may only want to attend auctions that give you the opportunity to inspect their used cars. This inspection session, if it is available, is often scheduled in the days leading up the used car auction. In addition, you may want to see if the auction house or company in question has an online website. If they do, you may be able to find information, including pictures and detailed descriptions, of some of the cars that at the auction.
It is also important that you examine methods of payment accepted before you start bidding on a used car at a used car auto auction. Unfortunately, many first time bidders mistakenly believe that all auto auctions accept the same methods of payment. This is a mistake can be troublesome and result in a large hassle. That is why it is important that you examine the methods of payment accepted. In most cases, you will find that cash, credit cards, or certified checks are accepted. In some rare cases, you may be able to find a used car auction house or company that offers financing or one that accepts personal checks.
Before bidding on a used car at a used car auction, it may be a good idea for you to speak to an auction representative. Depending on the auction house or company in question, you may even be able to do so before attending an auto auction. When speaking to a company representative, you will want to inquire about the documentation that you will receive when you bid on and buy a used car. After buying a used car, you will need to register it with your local Department of Motor Vehicles (DMV). To register a vehicle with the DMV, you need to have proof of ownership. Most well-known and reliable used car auction houses or companies will automatically provided you with the required documentation, but it may still be a good idea to get verification ahead of time.
Since the used car auction that you choose to attend will have a significant impact on the success that you see, when buying a used car, it is important that you choose your auto auctions carefully. If you are a Chicago resident, a resident of a surrounding area, or would be willing to travel there, you may want to examine North Shore Auto Auction.
Tags: Auction Bidders, Auction Car, Auction Tips, Auto Auction, Auto Auctions, Bid, Buying A Used Car, Car Auction, Car Auctions, Car Auto, Car Buying, Car Tips, Cars, Costly Mistakes, Important Things, Personal Car, Proof, Public Auction, Public Auctions, Tips For Buying A Used CarRelated posts
Tips For Buying Via A Private Sale And Getting The Car Of Your Dreams
You can get a great deal and the car of your dreams if you choose to look for your used car online. However there are some unscrupulous people out there who will try to sell a car that has been stolen or has been written off in an accident. When it comes to buying via a private sale you have to follow a few simple guidelines so that you get a bargain and not an old banger – or even worse.
The easiest way to find the right car for you s is to go online with a specialist motoring website. A site such as this will have thousands of cars all listed by private sellers and by conducting a search you are able to find a specific make and model within seconds. Once you have narrowed down your search, browsed through the photos and read the listing you will then have to make contact with the seller. However before this you can benefit from doing a little research regarding the type of car you are looking for and this will give you a rough indication as to if the sellers are asking a fair price.
While you also do not want to pay too much for your used car you should also be very wary of any car that is way below the going price for a car of that make, model and age. Any car that is listed well below the average should be considered a red flag, especially if the seller has given no indication as to there being any faults with the car.
Before you actually travel to see the car, confirming the buyer is actually who they say they are, is a must. The majority of private sellers will just put a mobile telephone number and an e-mail address down on the listing and while this is often done for privacy reasons, there could be a more sinister reason. Ask the seller for their landline number and address and then check these online. Never arrange to meet anyone to take possession or to look over a car in any place other than their home. If someone is going to con you then they could simply arrange to meet you in a place which they claim would be more convenient for you, sell you the car and then disappear only for you to find out later that the vehicle was stolen.
When going to look over a car when buying via a private sale if you know very little about motors then consider taking a mechanic with you to check over the car. While you will have to pay for this it can be very worthwhile if there are several faults found on the car that would work out very costly to repair. Finally all cars have a vehicle identification number which can be found on the car in several different places. Find this number and then make a car data check online with a specialist motoring website to learn the full history of the vehicle.
Tags: Address Check, Banger, Bargain, Car Of Your Dreams, Cars, Contact, E Mail Address, Faults, Landline Number, Mobile Telephone, Possession, Privacy Reasons, Private Sellers, Red Flag, Right Car, Rough Indication, Search Photos, Sell Car, Telephone Number, Travel CarRelated posts
Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.
Lets take a look at some tips, pros, and cons when it comes to making this decision.
First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, youll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars wont have all of those superfluous dealer add-ons stuck on the window either that will just never do.
In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades youd like to have on the used car that you couldnt otherwise afford going with the new.
Yet, with all of this, buying a used car isnt for everyone. Finding a used vehicle that fits ones entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.
Not so many years ago, reliability was a major concern when purchasing a used car and rightfully so. Today however, reliability problems are a fraction of what they used to be. Todays vehicles, when properly maintained will easily go for 100,000 miles and its not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.
Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.
As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty youll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that arent covered by any manufacturers warranty anyway; items such as brakes, tires, alignment, batteries, etc.
Of course nobody can guarantee that you wont encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.
When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle youll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car youre looking at. Be sure to crunch the numbers for both sides.
With used cars, insurance can save you some money as well because youll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.
And finally, (the latest) safety features could be a concern if youre looking at used car (particularly if youre going back a few model years).
All in all, if the touch, feel, and smell of a new car, isnt a top priority for you, I think youll find that a well thought out used car purchase you can get more car and features and still be within your budget.
Tags: Automotive Market, Better Chance, Buying A Second Hand Car, Buying A Used Car, Car Buying, Cars, Depreciation, Exercise, Fraction, Initial Price, New Car, Perspective, Price Tag, Pros And Cons, Purchasing A Used Car, Reliability Problems, Risk Factor, Second Hand Car, Standpoint, Todays VehiclesRelated posts
When It Comes To Buying Car Finance Look Online First
When it comes to buying car finance your first port of call should be online. By going online with a specialist car finance website you are able to access some of the top UK car loan providers to determine which would be the cheapest option for your particular circumstances. Car finance comes in many different forms and it is imperative that you understand your options and what each option entails so when it comes to comparing you know which is better for your personal needs.
The most popular type of car finance is hire purchase, this is simply a loan which you take out after paying a deposit against the car and then pay for the remainder over a certain period of time. The monthly repayments will depend on how much you wish to borrow, how long you wish to take the loan over and the deposit you are willing to put down. Of course your credit rating will be taken into account as well and you will be putting the car up as security against the money you are borrowing in case you find you cannot afford to keep up the repayments.
An alternative method when it comes to buying car finance is to go for a popular choice called personal contract purchase. Again you will put a deposit down to reduce the amount left to borrow on the car and then take out an agreement which will last for a specified term during which very low monthly repayments are made, after this there will be a lump sum left which will mean you have choices to make. If you decide to pay off the balance left owing then the car is yours, if you want to part exchange for a new car you can or you can give the car back and you owe nothing more.
A lease or credit purchase is very similar to the personal contract purchase method of buying car finance but you do not have the option of changing cars or of giving it back, you have to find the money for the balance left owing. All finance options suit different circumstances and information and advice can be found with a specialist website regarding all options. Understanding what you are taking on is essential so you have to not only compare the rates of interest and deals but also unearth any hidden charges, these are usually found in the key facts which should come with the loan.
Buying car finance is never easy and it is not something which should be rushed into, never be tempted by what seems to be very low interest rates without first reading the small print. Hidden costs could be associated with the finance option which could boost up the cost considerably. By reading the small print you can determine how much interest will be added onto the loan, the total amount you will pay and the rate of interest, also how much would be left to pay up at the end of a personal contract purchase or lease purchase.
Tags: Buying Car, Car Finance, Car Hire, Car Loan, Cars, Choices, Circumstances, Credit Rating, Finance Options, Finance Website, Loan Providers, Lump Sum, New Car, Period Of Time, Personal Contract Purchase, Personal Needs, Port Of Call, Remainder, Repayments, Uk Car