Car Tips
When You’re About To Default On Your Car Payments
by admin on Jun.02, 2010, under Car Tips
When You’re About To Default On Your Car Payments
Even in a strong economy, millions of people struggle to make their car payments. Of course, the past twelve months have been dismal in the automotive industry. And with the economic environment growing darker each day, more people are losing their jobs and looking at their late-model vehicles as expensive liabilities. If you’re having trouble making timely car payments, you have alternatives. Today, I’ll explain the options available to you.
Working With Your Lender
When people fall behind on their auto loan, they often choose to avoid the lender. That’s a mistake. Not only does the lack of communication frustrate the lender, but it effectively eliminates your chance of working with them. For example, they might be willing to defer your next payment. The lender will want to know the details of your situation, including why you’re falling behind and your current credit score. Be open with them. They can often help you bring your account current.
Refinancing Your Auto Loan
Interest rates have dropped significantly over the past year. Most people think of a decline in interest rates in the context of refinancing their homes. You can just as easily refinance your auto loan. If your credit score is reasonably good, there are plenty of companies that will help you refinance the terms of your loan to lower your monthly payments.
It’s also worth noting that higher interest rates can often have the same effect on the amount you need to pay each month. That’s due to some lenders being willing to stretch the terms of your loan over a longer period of time. It’s more expensive over the long run, but you’ll end up with lower – and perhaps more manageable – monthly payments.
Selling Your Vehicle
You can also sell your car if you’re falling behind. However, this requires some clarification. Even though you drive your vehicle off the dealership lot, you don’t actually own it. The title rests with the dealer. In order to sell your car, you need to transfer the title. The only way to do that is by paying off your current auto loan.
Sometimes, given your situation, the value of your car will exceed the amount you owe. If that’s the case, it’s a simple transaction; sell the vehicle to the new buyer and use the money to pay the lender. The title can then be transferred to the buyer. On the other hand, if your vehicle’s value is below the amount you owe the lender, selling it leaves a deficit. You’ll need to make up the difference before the title can be transferred to the buyer.
You’ll notice the option that I’ve neglected to mention is allowing your vehicle to be repossessed. That is always a mistake. It will damage your credit and impact your ability to get an auto loan with a competitive rate in the future. Remember, you have plenty of options if you’re falling behind on your car payments. The key is taking action to resolve the problem as quickly as possible.
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4 Keys To Extending The Life Of Your Car
by admin on Apr.30, 2010, under Car Maintenance, Car Tips
4 Keys To Extending The Life Of Your Car
As people continue to tighten their financial belts, many are looking to their vehicles in hopes of finding ways to save money. While the price of gasoline and your monthly auto insurance premiums may be beyond your control, you can influence the amount of money you spend on auto repairs. Over your car’s lifetime, you can save thousands of dollars.
The life of your automobile is a direct result of the maintenance and care you provide along the way. The more diligent you are, the longer it will last. This article will describe four keys to ensuring that your vehicle lasts as long as possible.
#1 – Change Your Oil And Replace The Air Filter
Two of the most important things you can do to extend the life of your engine is to periodically change the oil and replace the air filter. Oil is necessary to lubricate the moving parts of your engine. Over time, the oil breaks down and becomes less effective. While every vehicle is different, changing the oil every 5,000 miles is a good idea.
Your air filter captures dirt, debris, and particles that might otherwise damage your engine. Eventually, it will become clogged. When that happens, your engine is forced to work harder in order to receive the air it needs for efficient combustion. If you drive in an area that is exposed to a significant level of dust and dirt, check the filter every 5,000 miles. Otherwise, it should last 10,000 miles or more.
#2 – Check The Tire Pressure
Your tires are the only part of your car that makes contact with the ground. Given that, it’s surprising that most motorists devote very little attention to their upkeep. The most common problem is the pressure within the tires. If they are underinflated or overinflated, they might impact your fuel efficiency. They can even present a safety issue.
Check your tire pressure every few weeks. Keep them consistent with the psi recommended by your owner’s manual. If the treads wear thin, invest in a new set of tires.
#3 – Be A Smart Driver
Hard stops and quick starts can become a habit over time. The problem is that both can have a negative influence on your fuel efficiency, brake pads, and suspension. When you accelerate, do so gradually. Try to anticipate traffic lights and other stops to avoid slamming your brake pedal to the floorboard.
#4 – Follow The Manual’s Service Schedule
Your owner’s manual includes a maintenance schedule that is defined by the number of miles you’ve driven. For example, it might recommend visually inspecting the brake pads and discs at 25,000 miles. It might suggest checking the drive shaft boots and steering linkage at 50,000 miles. Follow this schedule. The automaker recommends the maintenance items because they know what it best for your vehicle’s health.
By keeping on top of your oil level and air filter, driving smart, and following the service intervals in your owner’s manual, you’ll extend the life of your car. And that can keep thousands of dollars in your bank account over the long run.
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How To Find A Car’s Dealer Cost
by admin on Mar.17, 2010, under Car Tips, Cars
How To Find A Car’s Dealer Cost
Whenever you approach a car dealer, you can expect to spend time negotiating the final price. This is true for both new and used cars. The problem is that consumers are often confused about where to start negotiating. It’s understandable, especially given that there’s a sticker price, dealer invoice, and other terms that are used loosely in the industry. Each has a specific meaning and knowing them can be essential toward negotiating a better deal. Today, we’ll briefly explore what these terms mean. Then, I’ll show you how to find the dealer cost of a vehicle (the best place to begin negotiating).
Numbers Explained
First, let’s take a moment to clarify what some of the most common prices mean. Most people know what “sticker price” means. If you walk into a dealership and are willing to pay the sticker price for a car, there’s no need to negotiate. You can leave with your new car in minutes. Paying sticker price is obviously a bad idea (which we’ll discuss in a moment).
You’ve probably heard of the “dealer invoice” cost, but you may not fully understand what it means. It’s the dollar figure that car manufacturers print on invoices that are given to dealers for every car they purchase. However, there are often details under the surface of this dollar figure which aren’t disclosed to the public.
For example, automakers commonly give dealerships incentives and other deals to encourage purchase orders. Sometimes, the dealerships will transfer these incentives directly to customers, lowering the price of their vehicles. However, they’ll often keep the incentives and use them to preserve their profit margin during negotiations with prospective buyers. Ultimately, you may be proud of the fact that you’ve aggressively negotiated a price for your new car that is below the “dealer invoice.” In reality, the dealership can still be making thousands of dollars in profit without your realizing it.
Finding The True Dealer Cost
Knowing how much money a dealer truly paid for a vehicle is critical to negotiating the best price. So, how do you uncover this dollar amount? First, the dealer invoice cost is widely available. Some dealerships will actually offer it to you (though, acquiring it from an unbiased source is always preferable). Once you know the dealer invoice, you’ll need to find out what types of incentives, rebates, and cash deals were offered. Then, you’ll subtract those from the dealer invoice to determine the actual dealer cost.
You can ask a salesperson to divulge the information. But, some will be resistant while others may actually mislead you. The easiest way to gain access to the numbers is to use ConsumerReports or a similar resource. Once you’re armed with the dealer cost, you can negotiate a better deal on your new or used car.