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
It is becoming harder and harder for people to find affordable prices for new or even “pre-owned” vehicles. The cost of extras continues to rise, and even basic models can set an average person back for several years. If you are interested in buying a car, but feel as though you simply do not have the money, a government car auction might be the best opportunity for you. You can find incredible deals, and it is not uncommon for people to save thousands of dollars.
The majority of vehicles at a government car auction have been repossessed from criminals or people who have failed to make payments on government loans. There are also government car auction vehicles that are “retired” police cruisers or other government vehicles that are no longer in service. You can usually find a wide range of makes and models, and it is even possible to find classic cars that are not readily available at most dealerships.
There are government car auctions across the country, and you locate one in your area by simply contacting local government agencies or searching online. In fact, the Internet has greatly affected the government car auction. There are a number of sites that allow you to bid on vehicles from the comfort of your own home. They can also direct you to parts for salvageable cars at auction. The best sites allow you to quickly search available vehicles, so you can find exactly what you are looking for.
Whether bidding online or in person, it is essential to be well-informed before entering into an auction. The point of a government car auction is to save money. If you do not know the true condition of a vehicle, you can end up paying more money than it is actually worth.
Tags: Auction Vehicles, Average Person, Cars Auction, Cars Auctions, Classic Cars, Criminals, Dirt Cheap Cars, Government Agencies, Government Auction, Government Car Auction, Government Car Auctions, Government Loans, Government Vehicles, Local Government, Makes And Models, Police Cruisers, Pre Owned Vehicles, Salvageable Cars, Thousands Of Dollars, True ConditionRelated posts
For most people, owning classic or vintage cars is a dream-come true. Owning classic cars are considered a luxury. It is very expensive and most people cannot afford to buy one, much more to restore one.
If you are considering buying a classic car, you should first think about your budget, how much are you willing to spend on these antique machines? There are some people who spend their saving just to own one.
Vintage cars can also be an investment. After you restore one, the market value of the car would be better than you imagined. Depending on its model and condition, classic cars can be a potential profit maker.
These classics are usually sold in auctions and there are many classic car enthusiasts out there willing to spend a fortune on these cars.
However, before buying one you should consider the following:
Keep in mind that what you want to buy would be described as a collector car.
Decide what car fits your budget. This will probably eliminate those vintages you drool about in major car shows, unless you are very rich. Just one of those cars you see in major car shows can cost you at least hundreds of thousands of dollars.
Researching on where to buy classic cars is not easy. You have to spend a lot of time and effort just by searching one of these cars. Remember that these cars are not manufactured anymore and you do not often see these on your regular used car dealership.
You would probably find one on junk yards or on old peoples houses that do sell or throw these classics away. You can even get them with a bargain price. However, these cars are probably covered with rust already and have engines that are in bad shape.
Another good way to look for a classic car is by going to auctions. If you can afford to travel, take time to go to car auctions in different places.
This will give you a chance to offer a bargain for it. You can also opt for a classic car that is in good condition and less restoration will be required.
If you found what you were looking for, compare them. If you are a mechanic you can probably do the comparison yourself, if not, try to bring your trusted mechanic along to help you decide which one to buy. Always remember that the less restoration required the better.
After purchasing the car, the next step would be restoring it. Be prepared to spend a lot of time and money on this phase, since good car parts for classic cars are hard to come by and are usually very expensive to manufacture.
Obtaining the car parts necessary for restoration will be very time consuming and will require you to make many calls in shops that sells antique car parts. One way of easily obtaining classic car parts is by searching in the Internet.
Here, you can obtain hard-to-find parts for the model of your car.
If you do not find one, you can ask a machine shop to manufacture one for you. All you have to do is bring the old part to the shop and they will do the rest.
If you dont know much about repairing cars, much more restoring it, it is probably best if you hire a mechanic to do the restoration or go to one of those classic car restoration shops. These kinds of shops are usually very expensive and not recommended if you bought the car for investment purposes.
This is because some classic cars restored are valued less than what it costs to do the restoration.
After the restoration and paying huge bills for the mechanic or restoration shops, you can now fully enjoy your vintage car for years to come.
Tags: Antique Machines, Bad Shape, Bargain Price, Buy Cars, Car Auctions, Car Dealership, Classic Car Enthusiasts, Classic Cars, Collector Car, Different Places, Drool, Fortune, Hundreds Of Thousands, Junk Yards, Model Cars, Profit Maker, Rust, Thousands Of Dollars, Vintage Cars, VintagesRelated posts
Car Buying Tips: Five Things You Need To Know To Avoid Hidden Fees And Additional Costs
Before purchasing your next car, you’re going to want to check for hidden costs, add-on fees, and other charges. You could end up spending hundreds, even thousands, of dollars over the lifetime of your loan.
Once you’ve found the car you want, it’s time to sit down with your sales rep to negotiate the terms of your contract. After a little back and forth on price, figuring out your interest rate, and calculating your monthly payment, you’re ready to sign on the dotted line, right?
Not so fast.
When you read the fine print you may find that additional fees and charges have found their way into your contract including add-ons you didn’t necessarily ask for.
Most car buyers are so focused on getting the best interest rate and negotiating the most affordable monthly payment that they’re unconcerned with the fine print of the contract. By the time they get to the step where they review and sign the paperwork, if the sales rep is throwing industry terms at them that they don’t fully understand, they’re becoming exhausted from the entire process and just want to get it over with.
Here are a few insider tips to make sure you don’t regret signing those papers.
1.) Read the Fine Print
While this seems pretty obvious and self-explanatory, it’s amazing how trusting the consumer can be. Honestly, the last time you bought a car, did you read and fully understand the contract before you signed it? Probably not. Most people don’t.
Some unscrupulous car dealerships are betting on that. Because most people don’t read the fine print, some sales reps can slide in additional, undisclosed charges or extras with huge mark-ups to their profit.
Also, make sure there are no blank spaces on your finance contract that can be filled in later wherever there are blank spaces, write in “$0″ or “N/A.”
2.) Typical Extras
Most of us are familiar with learning about the standard features of an automobile and then figuring out which additional features we are willing to pay extra for, but here are some extras to look out for when reviewing your contract:
Rust proofing
Extended warranty
Fabric protector
Car alarm (including Lojack, a device police use to find your car if you report it stolen)
Paint sealant
Credit life insurance
GAP
Window etching
The value of such extras depends on individual customer needs and situations. If the sales rep attempts to tell you that some or all of these extras are standard for every vehicle on the lot, ask to order your car from the factory, or suggest the dealership trade with another dealer that hasn’t pre-packaged their vehicles.
Extra products can add thousands to the negotiated price of the vehicle. Most products fill a customer need that when priced and disclosed correctly and can add real value to the whole transaction.
The problems with extras occur in two areas. First, when the sales rep doesn’t spend the time necessary to determine which products fit the specific needs of the customer. Rather than suggest specific extras individually priced, the sales rep lumps all the products together and pushes you to buy them as a package.
Second, unscrupulous sales reps can add thousands of dollars to the amount financed for these products, but not disclose the price increase until the last possible moment, when the financing contracts are being signed.
3.) Documentation and Administration Fees
Federal, state, and local governments are pushing more and more of their regulatory cost onto the local dealerships. In an effort to offset some of these fees and services dealers are required to perform, most add, a documentation or administration fee to the total cost of the transaction. Depending on state and local regulations, fee adding $100 to $150 seem reasonable and cover most of these additional items. These services include:
Duplicate Title Fees
Notice of Security Interest (to perfect lien)
30-day Permits
Federal terrorist matching data bases
Federal information privacy requirements
State vehicle id verification
Highway Patrol Inspections for out-of-state titles
Registering leases at customer’s county of residence
Carfax
FedEx charges/Shipping charges
Additional title addendums
Truth in lending record retention
Some dealers have taken up the practice of marking up documentation and administrative fees and are now charging as high as $300 to $500 per sale. A few are even higher. The charge for most of these fees seems to be more based on getting a customer to pay extra after the customer has finished negotiating, not the average amount it cost to get most deals through various state and federal regulations, as implied.
4.) Ask for a Menu System Disclosure
The best disclosure method I’ve seen in years involved using a menu system. On a separate sheet of paper the rep produces a document that includes:
1.)The negotiated price of the vehicle or trade difference
2.)The additional price of suggested extras (these can be shown as various option packages that may save money when bought in combination and as individually priced options)
3.)New totals initialed by both parties
This procedure makes sure that any suggested extras are properly explained and disclosed. It also allows the customer time to consider each item separate from the longer and potentially confusing finance documents. The final numbers from the menu should get carried over directly to the finance document.
5.) Other Costs
When buying a car, remember that there are other “hidden” costs (or, costs that aren’t usually considered), that go beyond the dealership.
During the lifetime of your vehicle, you’re going to have to pay for registration and tags, taxes, insurance, oil changes and fuel every year, and periodically pay for maintenance and repairs. Older models (cars more than 3-5 years old) may cost less up front, but you will likely need to factor more maintenance and repair costs into your budget than if you bought a newer model. While new models need fewer repairs and maintenance work, you will have to pay more up front.
Your wallet does not have to go through the ringer the next time you decide to visit a new or used car dealer. You can protect yourself from blindly signing into an unfavorable car deal by doing your homework, going to a car dealership with a good reputation, being prepared, asking questions, and double checking behind your sales rep.
Tags: Best Interest, Betting, Blank Spaces, Car Buyers, Car Buying Tips, Car Dealerships, Dotted Line, Finance Contract, Insider Tips, Interest Rate, Last Time, Lifetime, Mark Ups, Paperwork, Purchasing Car, Sales Rep, Sales Reps, Sit, Thousands Of Dollars, UpsRelated posts
Salesmen are more willing to haggle prices to close the deal when in the holiday season, as most people are too busy to think about buying a car at that time.
Another time that is the best for getting a good deal is the period from July to October. Dealerships are trying to get rid of their inventory to make way for the new year models.
Do some research online, and get some quotes optimally along with some good rebates or incentives. Print out your results from the lowest quotes and bring it with you to your local dealer. Showing them the lower quotes might compel them to give you a better deal. If not, shop around some more.
Visit FightingChance.com This site has great advice, as well as incentives and rebate offers. You may be able to save thousands of dollars on your car purchase.
A good tactic is to bring a copy of your credit score with you to the dealership. It can lower your interest rates on your car loan.
Be suspicious of any ‘bait and switch’ tactics, such as some odd change that occurred after you initially discussed the car with the dealer. Some unscrupulous dealers will use your preference for a particular car as leverage in convincing you to stay with your choice; although, unfortunately there has been some ‘unforseen’ change in the price or deal you originally discussed. Stick to your guns and remind them that is not what was agreed. If they don’t back down,or at least give you a concession, then it is up to you if you want to accept the difference.
A rule of thumb is to never wait until your car is broken down and you are desperate not only are you not thinking as clearly at a time like that, but the salesman may sense your desperation and take advantage of you. On such a major decision, try to force yourself to take action when you realize your car has issues, but while it is still running.
Do your research before going in and subjecting yourself to high-pressure tactics. Don’t fall for any deals where you are required to make an on the spot decision. This is a big commitment and you need to be on top of the game.
Tags: Bait And Switch, Car Buying Tips, Car Loan, Car Purchase, Concession, Credit Score, Desperation, Holiday Season, Incentives, Lemon Law, Leverage, New Year, Pressure Tactics, Rebates, Rule Of Thumb, Salesmen, Switch Tactics, Tactic, Thousands Of Dollars, Unscrupulous DealersRelated posts
I had what I thought was an interesting question sent in to me the other day and that is the topic of this article. The question asked was essentially; out of all of the car buying tips, the car deal negotiating tips, and out of all the dos and dont dos when you are car shopping and ultimately buying, what is the single most important area to have under control as the buyer.
I had to preface my answer by saying that in order to get your best deal when buying a car, there are many pieces to the car buying puzzle. They are all individually important because when you put all the buying processes together they make up your deal. And all of these car buying puzzle pieces are what dealerships are all about. They each represent an opportunity to sell you something and therefore make a profit on that sale.
Having said that, this is a great question and you would probably get many different answers. But, since you asked and I have pondered Ill give you my thoughts.
I would have to say financing. You must take the time to do such things as:
Get and understand your credit report.
Shop around for your financing options and ultimately get yourself pre-approved so you will know the amount, the interest rate you qualify for, and the length of your loan.
If you dont get your financing questions answered and in order, you can literally cost yourself thousands of dollars. So, while all of the other aspects of buying a car are indeed important, such as the price of the new car, what you get for your trade, and all of the research that goes into these areas; you can literally give it all back and much more in the dealers finance department.
If I get all my financing lined up ahead of time, why would I even bother with the dealers finance department?
A Good question; and there are a couple of aspects to the answer. First, once you know what you qualify for (a bird in hand), you can then give the dealers finance manager the opportunity to do even better for you. Secondly, even if you have no intention of using the dealer financing option, youll still have to have a seat in the finance office just to sign all the paperwork. Which means the finance person will do their best to sell you their financing package. So being prepared is the best answer.
If you have your financing in hand and know all your numbers ahead of time, youll be able to fend off the monthly payment approach by the car dealers sales person. Buying a car based on monthly payments is good for the dealer; bad for you.
Also, your financing homework becomes even more important if your credit is less than grade A. Be mindful that just the difference in just a couple of percentage points on your interest rate can represent over a thousand dollars to you during the life of your loan. And if your credit score leaves a little to be desired by potential lenders, you will probably see a wider range of qualifying quotes that you get back. So it is even more important that you get your car financing house in order before you head out to the dealership.
Certainly, financing is but one piece of the car buying puzzle. But, its a big piece. And you can rest assured its a big piece (for potential profit) for the dealer. Many people dont realize that this is yet another area at the dealership that you can and should try to negotiate on the road to getting your best car deal.
If you have done your research and homework to give yourself the best possible chance on the front end of the car buying process (new car & trade-in), dont give it all back on the back end of the deal (financing & insurance F&I) by not knowing what your financing numbers and options are.
Tags: Bird In Hand, Buying A Car, Buying Car, Car Buying Tips, Car Deal, Car Shopping, Control, Credit Report, Dos, Finance Department, Finance Manager, Financing Options, Good Question, Interest Rate, Negotiating Tips, New Car, Opportunity, Preface, Puzzle Pieces, Thousands Of DollarsRelated posts
Do you want to own your own car? Do you want to save money? Then why not try to buy a rental car?
Acquiring a rental can be a best deal to save thousands of dollars in your pocket. There are many things to consider.
In United States, many states have laws implemented in order to give the customer the safest way to obtain rental cars.
The main concern of the laws is to prohibit the possible dealer or private sellers to escape from the confinement if they sold a rip off car. If the dealer purchased a dreadful type of rental car, the law will give them proper consequences.
It is advisable for the buyer armed with knowledge when purchasing rental cars. When the buyer goes out to look for the available rental car, he must not buy on a single impulse alone.
Most of the car dealers have a sales strategy to convince their customer. The buyer should not let these strategies to pressure him or herself when making a major car rental purchase.
The buyer must look at the car. He should find out what is the value of its blue book system. The blue book is a kind of publication that records the fair price for most rental car available.
The mechanical parts of the car must be check by a professional inspector before making a decision. The mechanical parts of the car should have a good standing. If the dealers do want to inspect the engine, do not buy that car.
Examine also the several parts of the car like tires, brakes, belts, rims, mirror and others in order to get the best car. If those parts are damaged, be sure to repair it as soon as possible to avoid unnecessary accidents.
Have a best transaction on a rental car
For instance, if a buyer is fined with a well-maintained car for at least one month of its life, do you think he will get it?
The car should have a regular oil changes, brakes and other parts inspected as often. A best rental car must enclose with warranty. For example, the warranty must be at least one-year wit a five moth/12,000 miles and a seven day purchased warranty policy. If the rental cars have that quality, most of the time buyers will be grateful to get their hands with those said cars.
Most of the rental cars are priced based upon its availability. Some car dealers give its customer the best price deal, like buy now a rental. This deal normally gives the buyer discounts and privileges to have enough time to negotiate with the dealer.
In the year 2005, about 1.9 million rental cars were sold out in United State. Many kinds of were conceded out directly to auction and bidding sale. There are also cars sold out straightly to the dealers floor.
On the other side of the story, several rental companies for their own marketing strategy selected almost ten thousands.
Here are some of the considerations how to purchase rental cars:
Is it a late type? A typical kind of rental car for sale is having an age of one or two years of age. This can create a wide selection of vehicles that has a new style and sought after.
The car must have only one owner to further trace it history. The papers and other requirements can be easily signed.
Most important the reasonable price. The buyer must get the car without the pressure of bargaining.
Rental cars can offer a wonderful value option. The buyer must be wise enough. Remember rental cars must give comfort not troubles.
Tags: Accidents, Belts, Best Car, Blue Book, Car Brakes, Car Tires, Confinement, Many Things, Moth, Oil Changes, Own Car, Private Sellers, Professional Inspector, Rental Car, Rental Cars, Rims, Sales Strategy, Seven Day, Thousands Of Dollars, WitRelated posts
Cheap Car Insurance Company – A Little Help To Make Your Rates A Little Cheaper
Is there really such a thing as a cheap car insurance company? Cheap and car insurance dont seem to be soul mates of compatibility. Insurance has a lot of responsibility and a lot of expense. Im not sure that cheap can ever happen unless the whole world stopped having accidents. Reasonably priced might be your best alternative description when looking for low cost car insurance. A lot of people consider car insurance a necessary evil until they have to use it and then the attitude begins to change. Insurance is one of the most humanitarian legal agreements you will ever purchase. We are really all collectively covering each others assets. That is the purpose of insurance. It is society protecting itself from itself. Alright, that was our little mental health talk about insurance. How do we get the lowest rate?
Cost Savings Ideas
1. Buy Multiple Policies Auto and Homeowner policy combinations always give you discounts. Auto and renter policies do the same.
2. Buy Higher Deductibles low deductibles are a thing of the past. High deductible insurance is now known as self-insuring. Higher deductibles of $500 or more make a lot of sense because the savings year in and year out will save the insured thousands of dollars over the lifetime of the policy.
3. Take limited Tort If you are in a state that has tort options then you can discount your overall policy 20% or more by choosing limited tort. The tort option is your right to sue for pain and suffering. This is additional money awarded you for the inconvenience of the accident. You may have lost three months work. The suffering and time spent on rehabilitation are what this option is all about. Limited Tort allows you to sue for a limited amount of injury and suffering. These limits are state specific. Contact your agent or insurance company for definition of full tort and limited tort.
4. Non-Stacked Uninsured and Underinsured Motorist Coverage Stacked coverage will add up. Every car that you own is multiplied by the base limit. Buy non-stacked and save money. Make sure that your base amount is adequate.
Tags: Accidents, Assets, Attitude Change, Car Insurance Company, Cheap Car Insurance, Combinations, Deductibles, Health Insurance, High Deductible Insurance, Homeowner Policy, Inconvenience, Legal Agreements, Low Cost Car Insurance, Mental Health, Necessary Evil, Renter, Soul Mates, Thousands Of Dollars, Three Months, Tort