Tag: Cars
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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Advice for Car Buyers What Car Do You Need?
by admin on May.24, 2010, under Cars
Advice for Car Buyers: What Car Do You Need?
This is something many car buyers do not really think about hard enough before they go out onto the dealer lots. It is easy to become distracted by good looking cars, great offers and the sales pitch of an enthusiastic sales representative, but does this get you what you really need in your car? Do you even get what you want?
The answer is, “No!” for many car buyers and this leads to disappoint and frustration. Even worse, it typically means more cost and more inconvenience as you then need to change the car over and buy another one – you bear the depreciation and minimizes your utility and enjoyment. It makes sense to consider what car you need first!
Consider Needs not Wants
Think about the hard facts of life when it comes to your driving:
• Manual or automatic transmission?
• Do you really need four-wheel or all-wheel drive?
• What safety equipment and features do you really need?
• How much storage and cargo space do you need?
• How many seats?
• How many doors?
• What seating positions and flexibility do you need?
• Do you need special seating if you have a bad back?
• How much space on the drive or garage do you have to store the vehicle in?
Affordability
How much can you really afford? This is a tough question because it certainly will focus your mind. Cars are expensive, but it is too easy to commit to a high monthly payment in your desire to drive off with some fantastic looking new wheels and only come payday, realize what a mistake you have made.
Establish your monthly budget and stick to it! This will also help you in negotiating with the dealer and motivate them to bring a car down into your price range instead of holding out for a higher price and risk losing the sale altogether.
Do You Need to Buy or Can You Lease?
Leasing does not need you to come up with such a lot of money upfront as buying a car does. Once the lease term expires you are left without a car and nothing to use in part-exchange. Buying a car is more expensive on the upfront costs and the monthly cost is also usually higher than leasing as well, however at the end of the loan period you own the car and can continue motoring without the cost or use the car in a part-exchange deal.
Look at All the Cars in the Same Class
If you find a car which is right for you, then before you commit yourself to buying “that” car, look at what other vehicles are in the same class. Comparing different vehicles of the same class will get you the best value for money as though they will be similar in basic specifications there is a lot of flexibility when it comes to optional extras and the after sales support provided by dealers and manufacturers.
These are just some of the main issues you should consider when you are buying a car, a new or a used vehicle – establish your needs first and select a vehicle based on how you will use it before desire takes over and you make a buying mistake.
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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.