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April 23, 2015

Things you must know about vehicle financing

vehicle financing optionsVehicles have become a necessity and so many people own vehicles. Vehicles are relatively expensive hence most people consider financing or leasing when getting a vehicle. There are important things that you must know when financing your vehicle and they are discussed below.

Financing options

There are two main types of financing for vehicles and they are direct-lending and dealership-financing. Direct-lending is where you get a loan from a bank or any other financing institution such as a credit union and you make an agreement to pay over a period of time. Once you have decided on a vehicle to buy and the dealer to buy it from then you can pay with the direct loan you received. Dealership financing is where you pay for your vehicle through the dealership. The dealer gives you a vehicle and you make an agreement to pay for a period of time but you also pay for the finance charge. In this case, you must have an assignee such as a bank. Before choosing a financing option, you must do your research and shop around for the best options before making a decision on whether to buy or lease. You can do this on the internet by just a click on the computer.

Before buying or leasing a vehicle

Before you buy or lease a vehicle, you must consider the federal or state laws that govern financing and leasing of vehicles. These laws will ensure you lease or buy a vehicle legally and also give information to make the process simpler and easier. You must also determine how much you can afford. Before making a purchase or taking up a lease, you must assess your financial situation and make sure that your income is able to cover the payment for the vehicle as well as your living expenses. You can get information about our financial situation online with just a click. It is also advisable to shop around for a financing deal that is comfortable for you. You should not strain financially after taking up financing for a vehicle.

When applying for financing

When you are applying for financing you should talk to the finance and insurance department of several dealerships to determine the financing options that they have and the cost to be paid monthly. Talking to several dealerships will help you determine the best dealership that fits your needs. You must also be ready to share your financial information such as your current financial situation as well as past and current credit obligations so that the dealerships can determine what amount of financing you can qualify and determine the vehicle that you can buy with your current situation. The dealerships also require your financial information so that they can take it to the consignee. When you are considering leasing a vehicle, you must know that you can only use it for a particular period and for a number of miles. Leasing payments are usually lower than fi9nancing payments but freedom of using the vehicle is limited. Some creditors may need you to have a co-signer especially when your financial situation is shaky so that they can take up responsibility in case you default to pay the loan.

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August 15, 2014

Ways to Boost Your Auto Insurance Business

Auto insurance for allAutomobile insurance business is among the most sustainable in the present world. Government regulation of making insurance compulsory for all motorized vehicles contributes to the success of this business. This business of covering automobiles against damages could be owned privately, by public sector undertakings, or by joint stock companies. In a country like USA auto insurance business is controlled by public limited companies. The level of competition among these companies is not stiff as the number of entities is less. Further each of these companies is tied up strategically with separate car manufacturers and their dealers for insuring new vehicles.

Insurance for vehicles is done on sale but before the concerned automobile hits the roads. The coverage amount depends on vehicle type, its use, its engine capacity, and seat capacity. If these are same across manufacturers then insurance cost remains same for similar category vehicles. For instance, the cost of insurance for a 4-seated petrol car of 1200 cc of two different makes would be same. Similarly the cost of insurance for trucks of same capacity and type but different brands would be the same.

With the parameters of calculating premium remaining constant there is not much of variation in insurance cost among companies. Further, there is not much of publicity for auto insurance as it is mandatory for all vehicles. Anything which is compulsorily procured or bought does not require too much of a marketing, particularly when service providers are limited. However, in a globalised economy the entrance of more companies in this trade is expected to increase competition. With increased competition it becomes important to devise new tools for attracting more customers. More information on these topics is found in this author’s website.

Probable tips

  • Depreciation – Under normal circumstances premium for any automobile is increased every year because of depreciation. As the chances of wear and tear of a used machine increases with its usage so does its coverage cost. Keeping insurance costs unchanged in spite of depreciation is one way of making insurance packages more attractive.
  •  Discounts – Usually automobile insurance providers offer accidental or loss coverage for a period of one year at a time, to be renewed in successive year. In the event of ‘no claims’ (when there are no accidental damages) during a year, the cost of insurance is discounted for the subsequent term. This discount rate varies from one service provider to another and is a determining factor of attracting more customers.
  •  Claim settlements – Time required for claim settlement is another vital aspect in boosting auto insurance business. For a car owner the time spent in receiving the settlement amount from the time of notifying damages is crucial. Often companies take a long time in making settlement payments and that too after repeated requests. Lengthy settlement period is a huge turn-off for car owners. To make automobile insurance services more tempting, settlements should ideally be made before a damaged car leaves a garage.
  •  Simplicity – Formality involved in lodging a complaint is another vital issue determining the acceptability of a motor vehicle insurance provider. The greater the formalities, lesser is the acceptability of an insurance service provider. It is advisable to have a simple and convenient process of lodging a complaint or claim.
  •  Accessibility – Accessibility is another important determinant of an insurance company’s popularity. Companies with more offices or contact points are naturally more acceptable to end-users. It is common human tendency to approach a service provider which has more visibility.
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February 8, 2014

Ways to Save Your Insurance Company Doesn’t Want You to Know

Insurance promisesEvery car insurance company promises you their very best rate. They also promise to make you an offer that their competition can’t top. In other words, insurance providers make promises they can’t keep. So, what can you do to make sure you get the best deal on the market? Make your own.

Consumers know that it pays to shop around. Smart buyers compare quotes from several insurers before purchasing a policy. However, even the savviest shoppers probably don’t know that after they’ve found the best coverage at the lowest rate there are ways to save even more.

How? It’s all about research. Car insurance companies will be quick to talk you into their most comprehensive coverage. On the surface, the old adage—more is better—appears to ring true. What these companies won’t tell you, though, is that these top-tier policies are excessive for everyday drivers. And in this case, excess is expensive. By taking a thorough look at your driving habits, vehicular assets, and overall financial situation, you can determine how much coverage you actually need.

Do you drive every day, or just occasionally? Is your commute 15 minutes, or 50? The answers to these questions matter. The more time you spend behind the wheel, the more likely you are to be involved in a collision, statistically speaking. Naturally, the converse is true. If you only net 15 road miles each week, you aren’t as likely to cash in on your policy. Many insurance representatives are trained to ask these questions when providing a quote. If yours never did, it’s time to make a phone call. And if you recently changed jobs and are now working closer to home, you should update your insurance provider; it’s likely that they will lower your rate.

What you drive matters just as much as how you drive. Unless your vehicle is new or you’re still making payments on an auto loan, you might be carrying more insurance than you need. Check the Kelley Blue Book value of your car. If this figure is significantly lower than your comprehensive or collision coverage, it may be time to adjust your policy accordingly. In some cases, as for those who drive old (but not collectible) cars, it could be worth dropping collision coverage entirely.

Choosing a plan with a higher deductible might not sound like a good way to save money. However, drivers with a great safety record can cash in big with this strategy. Here’s the logic: safe drivers are involved in fewer accidents. By raising your deductible, your insurance costs drop—sometimes an increase of just a few hundred dollars means a 15% to 40% reduction in overall policy fees. A portion of the money saved on premiums can be set aside to cover the deductible in the event you need to file a claim. The remainder of this money is then free for investment or can be put towards purchases you actually want to make.

Having your financial ducks in a row pays off. Many auto insurance providers will now review your credit score and reward fiscal responsibility with discounts. When you’re looking to spend less on car insurance, be sure to inventory your other expenses. Check for duplicate coverage. For example, AAA membership offers roadside assistance and towing. There’s no sense in carrying policy add-ons for these services if you’re already getting them elsewhere. This is also true for bodily coverage. If you carry a fairly comprehensive medical insurance policy, it is likely that any bills resulting from accident-related injuries will be taken care of.

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August 28, 2013

Financing your First Car

Car financingIt will happen at a stoplight on your way to your first real job. The Plymouth Acclaim that you earned merely because you were the 16-year-old child of middle class suburbanites will not go, no matter how hard you hit the gas. The serpentine belt will blow, again, and it will seem silly to put more money into a car that is old enough to drink.

Still, what car seems affordable on an entry-level salary? Even the most economical of economy cars is likely too expensive to be paid for out-of-pocket. More often than not, securing an auto loan is a necessary step in purchasing your first car, and there are a few things that are helpful to know before you trust the offer made by your dealer.

New or Used?

Even before thinking about a loan, it is wise to decide whether you will purchase a new or used car, and from who? There are many pros and cons to both used and new cars, so it’s best to keep your budget in mind as you make your decision. Used cars, whether purchased as a “pre-owned” vehicle from a dealership or from your neighbor on Craigslist, will more often than not be significantly cheaper than a new version, and may not even be that, well, used. Notoriously, the value of a car depreciates as soon as it drives off the lot. If you buy a used car, make sure you have access to its entire history. Know who owned it before you. Know what accidents it has been involved in. That way, if you’re on the brink of having a used car horror story, you have the information to navigate your new-to-you car in another direction. On that note, never sign an As-Is statement. You are entitled to 30 days to find out whether the car is in working order.

As for new cars, they can be more expensive. And if few people are already driving that year or model, you can’t be absolutely sure that you haven’t landed yourself a lemon. Research is just as important with new cars as it is with used ones—you want to know the MSRP (Manufacturer Suggested Retail Price) and what deals other dealerships are offering on your chosen model. The Internet is a great place to research car prices, warranties, and safety features. Finance options for your new or used car can also be found online.

The Loan

Before you apply for a loan, it is wise to know your credit score first. There are many places that will give you access to your credit score for free online, such as Credit Karma. This will help you know what kind of interest rate for which you are eligible. Generally, the higher your credit score, the lower your rate. As you are young, it’s likely that your credit score will be low due to your brief credit history.

“The newer the car, the lower the rate” is also a piece of car finance advice that has been bandied about since the beginning of auto loans. While this may seem like a tick in the “pro” column for new vehicles, remember that the cost of the vehicle itself will likely be more than enough to make the savings in interest a moot point.

There are many ways for you to finance your car, and it’s smart to both diversify your application process and go to the dealer with a pre-approval already in place. Apply for loans at banks and credit unions, online financial institutions, and even the dealership (though these loans usually aren’t as competitive). Be honest on your applications, and take your time when considering all of your offers. Know the total cost of the loan. Pay attention to the loan term—a shorter term will involve higher monthly payments, but less interest. Don’t go for an offer that comes equipped with a laundry list of fees—you can be certain you won’t make up for the difference in savings on interest. No matter the case, do the math. Which offer works best with your current income? Which offer will allow you to save the most money in the long run?

If you go to the dealership pre-approved for a loan with a nice low rate, you will have the upper hand in negotiating what could be an even lower rate with you dealership.Be wary of the dealer offering you a lower price on the car with a higher interest rate. Remember, do the math. Rely on your own research. If you display clear confidence in your knowledge, it is less likely that the dealer financial manager will try to pull the wool over your eyes.

Driving Away in Your New…

While attempting to seduce you into their loan, the car dealership may offer you a number of “services” that also may not be in your best interest. Any “extended warranty” is more than likely not worth the extra cost—most warranties are extensive enough to cover any damages, and at the point the extension kicks in you will have spent more than you would out-of-pocket for repairs. Many dealerships offer expensive security systems that you could easily install yourself for less. Be careful about deciding to purchase life or disability insurance from your dealership. Like with loans, you may be better off getting a better deal elsewhere, if you need these types of insurance at all.

Of course, remember to have fun as you shop, and to buy a car that you can see yourself driving. A car may ultimately be a practical tool for transportation, but the right car can also provide a pleasurable experience.

Levi Hyatt is a part time blogger and a full time wannabe stunt driver. He’s carried his passion for cars over to writing about car financing. When he’s not going full throttle, Levi enjoys playing guitar for his cats George, Ringo and Paul.

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July 29, 2012

Simple Ways to Save Money When Purchasing a Car Insurance Policy

Car accidents take place all the time and this is probably the main reason why minimal car insurance is mandatory in the majority of the countries on the planet. This minimum policy type will offer a certain level of coverage in case that something bad happens; so, if you are involved in an accident and your vehicle is damaged, the insurer will pay the repair costs up to a certain amount of money. There is a lot of competition in the insurance market, so there are many companies and many different insurance policies out there. This is one of the main reasons why it is very important to understand what these policies have to offer, so that the decision to sign an additional insurance contract or to reject a bad policy is made wisely.

Sadly, many people end up paying large amounts of money for car insurance. But this should not be your case. First and most important, you need to decide on the amount of money that you are willing to spend on car insurance. There are three main categories you can choose from: policies that cover the third party, third party plus fire and theft, and the full, comprehensive car insurance policy.

The full comprehensive policy surely has a catchy name; it promises to take care of all the risks, but you should not get yourself lured by these promises. You need to ask the insurer as many questions as possible if you are interested in signing this kind of contract. As an example, if you own such a policy and you get involved in a car accident, the insurer will pay for the car repairs or give you the money you deserve, but the company will evaluate your car depending on its market price. The insurer is not going to consider your opinion about how much your car values. This is just an example, so make sure to read all the fine print and ask all the questions that you can think of; if you live in Eastern Europe, you can find out more information about this on the Asigurari RCA Casco car insurance portal.

The very place where you live may influence the car insurance costs; your career and age are also important factors that can raise or lower the premiums. If two or more drivers will be using the car, this will make the insurance policy pricier; this means that you shouldn’t add more drivers than needed to the policy.

Another good idea that will help you reduce the insurance payments is to take safety driving lessons. Any insurer will value this and will reward you by cutting the price of the policy. If you have completed a safety driving course, do not forget to take the needed documents with you, so that they can be examined by the insurer’s representative.

Many people choose to increase the deductibles, thus paying less money on a regular basis. Nevertheless, before paying the deductible, you should verify the solidity and the stability of the insurance company that you intend to work with; you are going to pay them your hard earned cash, so make sure that your money are in good hands.

You can always ask the legal authorities about the history of a certain insurer. And if all of this sounds way too complicated, it might be wise to use the assistance offered by an insurance broker. An insurance broker is a specialist that was authorized by legal and state institutions to offer you competent advice on insurance matters.

Before signing a contract with an insurance broker, you should make sure that you are choosing a reliable, competent person. Extended family and close friends can definitely give you some names of good insurance brokers that they have worked with in the past. When you have found a knowledgeable broker, he will give you all the advice that you need. Another option is to do your research on the internet; there are many website where these insurance brokers are evaluated and people write about their experiences after working with them.

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