How to Win the Financial Battle Vs Your Automobile

Think in the Long Term (for Models) Buy the car you want – but only after it is at least two years old, and three would be better. By doing this, you automatically save hundreds of thousands of dollars over your lifetime. When I was 23, I wanted to buy a nice four-door sedan, and…

Think in the Long Term (for Models)

Buy the car you want – but only after it is at least two years old, and three would be better. By doing this, you automatically save hundreds of thousands of dollars over your lifetime.

When I was 23, I wanted to buy a nice four-door sedan, and I was drawn to the Cadillac STS. The new model had a base price of more $ 50,000, and with any kind of little extras the sticker was almost $ 55,000. I was doing very well at a young age, but I was not doing that well to blow 50 grand on a new car.

I was thumbing through my local paper (yes, this was before the Internet changed everything) and saw an ad for a 2 year year old Cadillac STS for $ 19,500. The car had less than 40,000 miles on it and came with an extended warranty to 90,000 miles. It was gorgeous, shiny and just serviced.

It was an attractive price since the first owner was eating the depreciation.

According to the average car will lose 11 percent of its value the second you roll it off the lot and an additional 15 percent to 20 percent the first year you own it. The second-year depreciation (loss) is another 15 percent, for a loss of at least 45 percent over the first two years.

Depreciation is usually calculated off of the base price, not the extras. This could be the sport package that raises the price $ 10,000 but only gives you $ 2,000 back after the first year or two. So it's quite possible to find beautiful cars with manufacturer warranties still in place and pay 35 percent to 50 percent less than the first owner did when purchased new.

I bulldo that car for four years, had very few out-of-pocket repairs, and sold it for $ 3,500.

So what kind of deal could you get today? When I was young, one of the dream cars was a Ferrari Testarossa, and its price was around $ 200,000. You can buy one now for around $ 50,000, and most do not have that many miles on them because they're babied by the owners.

Think in the short term (for Loans)

If you finance your auto purchase, you can save a lot of money by keeping the term to no more than 36 months. These buildings equity in the car faster and saves on interest.

This may be difficult because the monthly payment is higher than if you finance over six years, and it's higher than a monthly lease. If you finance $ 25,000 at 5 percent interest for three years, your monthly payment will be $ 749.27, and your total payout will be $ 26,974. If you extend that loan out to six years, your monthly payment drops to $ 402.62, but your total payout increases to $ 28,989. That's $ 2,015 more out of your pocket to own the car.

Assuming you buy the car with a small down payment, by financing it for six years, your loan pay-down is going at a much slower pace than the depreciation on the vehicle, creating an “underwater” situation on the car almost from the get -go. During the three-year program, you're paying down the car faster than it's depreciating, giving you options if you have to sell the vehicle.

If you really can not afford that three-year payment, take out a five-year option and send a little extra every month toward the principal to pay it off sooner.

Leasing a newer model looks attractive because the monthly payment is less, but you might not want to do that. I'll explain why next post, when I offer several other ways to save loads of money when purchasing an automobile.

Believe it or not you might be better off buying your own car rather than funding your 401k or IRA!

What Is a Secured Loan on My Car? Your Questions Answered

When you look to take out any kind of loan, you'll always be faced with dilemmas and choices. Whichever loan you decide to go for, it's usually the options that surround each one where it can get confusing. However, the first thing to decide on is whether your loan will be secured or unsecured. Almost…

When you look to take out any kind of loan, you'll always be faced with dilemmas and choices. Whichever loan you decide to go for, it's usually the options that surround each one where it can get confusing. However, the first thing to decide on is whether your loan will be secured or unsecured. Almost every loan available on the market today is one or the other, so which is best?

Unsecured loans

Although unsecured loans are a larger risk for lenders, they are more broadly available and come in several different guises such as a credit card or personal loans. Also, they do not usually require any form of security or assets and could have greater flexibility in terms of repayment options.

But for all these benefits, even the highest loan amounts are lower than with a secured loan. Rigorous credit checks are undertaken to prove you're credit worthy and capable of paying the loan back in full. Plus, if you have a low income or had credit problems in the past, it can make it much harder to take out an unsecured loan.

If you're successful, you'll need to ensure your budget can handle the repayments. Many unsecured loans have a higher rate of interest that could cost you more in the long run. If you miss any payments or can not pay back the total amount, it will affect your credit rating making it harder to borrow again in the future.

Secured loans

A secured loan is the type of loan that is protected by a valuable asset or item of collateral. It's a lower risk to lenders who can offer larger loan amounts because, as the name suggests, you'll be providing 'security', whether it's a house or a car, to help borrow the money.

Although credit checks are usually still applied to ensure a creditworthy background, the process is more focused on the security you can provide. The lender sees the high-value item that's offered against the loan as a guarantee that you'll repay the loan in full and there before retain ownership of it.

It does mean, however, that the lender has the right to take possession of the item if the loan is not paid back in full, including fees and charges. This will affect your credit score in the same way as if you defaulted on an unsecured loan.

A secured loan on your car

One of the easiest and quickest ways to get a larger sum of money is to take out a secured loan on your car. Often known as a logbook loan, the process involves getting a secured loan with your car being the valuable security against it.

There are several trustworthy lenders available to you and a few have already helped thousands of customers withdraw the cash from their cars and make the process nice and simple. Some companies offer NO formal credit checks, so as long as you own your car and it's free from finance, there's no reason why they will not help you.

It is important you do your research before committing to a loan company. Many offer hidden fees and charge you penalties for paying back the loan early. This can come as a nasty surprise to many people once they have already been tied into a contract.

Know the Advantages of Taking a Lending Capital

If you are dealing in today's financial market you know how the lending capitals are helpful. They operate the liquidity of any business, organization, and other government entities. The plants and equipment are the compulsory assets that a company has fixed. The working capital can be considered a part of the operating capitals. The proper…

If you are dealing in today's financial market you know how the lending capitals are helpful. They operate the liquidity of any business, organization, and other government entities. The plants and equipment are the compulsory assets that a company has fixed. The working capital can be considered a part of the operating capitals. The proper amount is found out by calculating current asset by deducting the deduction the current liabilities.

What Is Lending Capital?

This can also be characterized as a type of loan. The capital is generally granted to the business making professionals. They help in meeting the financial needs of a business. They are available not only for the small business but in fact mostly for the larger businesses. But these capitals can never be used to purchase assets or something that means financing for a longer time. There are several advantages of getting these kinds of capitals. These are as follows:

Handling the Financial Difficulties

In certain situations, some financial difficulties may mount in a company. If the businesses have assets they would go bankrupt if they are unable to pay their dues. So, in order to prevent such situations, the loans are generally provided. The companies can apply for the loans so that they can prevent the shortage and stabilize the situations. The business owner can thus, retain his ownership intact. When you borrow from such lenders then you will not have a tight obligation from the lenders to pay the money exactly on time like the banks do.

Collateral Is Not Required

Loans are of two types. They are secure and unsecured. The most common loans are found to be of the unsecured type. They are commonly for the small businesses with lesser to no risks. They also require having a good history.

No qualification restrictions are there for the businesses then that is there for the unsecured loans. Shorter terms of the loans should be applied for the short term loans. With this in hand, the money is spent on the business for a shorter period of time.

The Money Can Be Used

When you are taking the lending capital from any of the financial institutions there are very few restrictions on how you can utilize the money. They can be used for the maintenance of operations and increase the revenue opportunities.

Quicker Approval of Money

With these financial lending, you can get money fast from the lender without any hassles.

Thus, this process is considered to be a boon for the business making organizations when they are running short on their finances.

The Process of Car Repossession – Understand It So It Doesn’t Happen to You

In a perfect world, things would always go as they should. Sometimes that's just not the case. If you've found yourself in a bind or on the verge of falling behind on your payments. The best thing to do is contact your credit card, mortgage or auto loan companies and explain your situation. Take action…

In a perfect world, things would always go as they should.

Sometimes that's just not the case.

If you've found yourself in a bind or on the verge of falling behind on your payments. The best thing to do is contact your credit card, mortgage or auto loan companies and explain your situation.

Take action

If you have a car loan, you understand the importance of paying your loan on time. If you can not make your payments on the exact due date.

You are granted a 30-day grace period to make a payment without having this late reported to the credit bureaus.

If you do not think you'll be able to make a payment before the 30-day grace period ends or foresee yourself being in a bind that will last longer than 30 days, there is something you should know.

Ignoring calls from your creditor is the wrong route to go.

* While you may feel embarrassed or related to contact your credit, you are not alone. Thousands of people fall behind on their payments due to financial hardships. The person on the other end of the phone is trained to handle these types of calls and will be more than willing to help you the best way they can.

What should you do?

Most car loans have a stipulation that allows you to defer your payments for a short amount of time while you get your finances located. Other options besides deferment may be offered such as lower payments until you can make the full payment.

Your options will depend on your specific car loan and terms agreed upon at the time of sale.

If you are currently in good standing:

Call your credit and explain that you've had some setbacks and ask about your options to defer your loan payment until you can make payments. This will usually give you about 2 months to catch up.

If you are currently not in good standing (late beyond 30 days):

Call your credit back and explain that you've had some setbacks and would like to make a plan to catch up on your payments or defer a future payment. Ask about your options to defer your loan payment until you can make a payment. You will usually be asked to make your account at least current up to 30 days before a deferral can be granted.

How will this help you?

Car repossession does not end well for anyone. Not you and certainly not your creditor. Once a car is repossessed, it is usually sold at an auction for a fraction of the cost. This is a lose-lose situation for everyone.

While your loan is in deferment you will not be reported late to the credit bureau as you have made an agreement with the company to pay at a later date.

The downside to this, of course, is that your loan agreement will be extended and you will end up paying more interest in the long run. This is, however, a better alternative to having your vehicle taken.

When can your car be repossessed?

It all depends on the specific car loan you have in place. You are usually considered in default of your loan agreement as soon as you miss a payment.

With that being said, you are granted a 30-day grace period. Some states allow cars to be repossessed after one missed payment. The longer you take to make your payment is one step closer to having your car taken and a serious ding on your credit report.

A repossession will keep on your credit for up to 7 years and hurt your chances of obtaining other car loans in the near future. Even after a repossession, you may still owe the difference between what you owed your lender and what your car was sold for. This is called a deficiency balance. A deficiency balance is usually the norm especially if you purchased a newer vehicle.

Please note that these options are for those experiencing temporary hardships. It is not recommended for long-term foreseeable situations.

All You Need to Know About 2 Wheeler Loan Finance

With growing demand in semi urban and rural areas, 2 wheeler industry is a high growth sector. The industry is estimated to be Rs.6, 000-Rs.7, 000 crore in size. This means there is ample opportunity for 2 wheeler finance companies. There was limited awareness about financing for a 2 wheeler in the olden days but…

With growing demand in semi urban and rural areas, 2 wheeler industry is a high growth sector. The industry is estimated to be Rs.6, 000-Rs.7, 000 crore in size. This means there is ample opportunity for 2 wheeler finance companies. There was limited awareness about financing for a 2 wheeler in the olden days but with the increasing penetration of financial institutions across the country, it has become possible to obtain 2 wheeler finance quickly and conveniently.

Getting 2 wheeler loan finance has become easy. The eligibility criteria, documentation requirement and the process has been stated below:

Eligibility:

Individuals above the age of 18.
Salaried individuals who have been employed for more than a year.
Business owners who are running a business for over a year.

Documentation:

Identity Proof
Address Proof
Income Proof
Valid KYC documents
Passport size photographs

Procedure:

In order to apply for 2 wheeler loan finance, the applicable needs to scout the market for various Banks and financial institutions offering the loan. Based on the terms and conditions of the relevant financial institutions, the applicable should choose the one that suits its requirements. The application process is quick and transparent. The applicant needs to meet the eligibility criterion in order to apply for the loan. Further, the applicable needs to submit the application form and provide the required documents to the financial institution. The customer executives are friendly and will guide through the entire process of application. The application will be processed within 48 to 72 hours and the loan will be approved in no time.

It is advisable to seek a loan from a trustworthy financial institution. They offer flexible tenure and easy repayment options. With a low rate of interest and a flexible repayment tenure, purchasing a 2 wheeler has become quick and easy. Individuals with a positive credit history can get the loan approved quicker and are also eligible for the special schemes. Once the loan amount has been disbursed, it is not possible to change the tenure and amount, since it is important to give the loan application a good thought and settle for a repayment tenure which is possible based on the monthly income of the applicable. Financial institutions offer customized solutions to the applicants based on their requirements. Depending on the type of 2 wheeler to be purchased, the loan amount will be sanctioned.

The applicant will only be required to pay a small amount as down payment and the balance can be converted into a 2 wheeler loan which is to be repaid in easy monthly installments. Upto 95% of the on road price of the vehicle is available as a loan to the applicant and the repayment tenure ranges between 12 months to 48 months. With the increasing demand of 2 wheelers across the country, banks and financial institutions are offering loans which meet the requirements of the consumers and they also settle the terms accordingly.