Car Insurance

Not many people have sufficient on-hand resources to pay cash for a new/used car purchase. Most people HAVE to finance at least a major portion (about 80%) of any such acquisition. Most people just assume that financing through the car dealership is the simplest, easiest and most convenient way to go—and most people pay more than they need to because of that assumption!

Car dealerships rarely provide direct financing; i.e., they “partner” with a lending institution which provides funding to “qualified” buyers who apply for loans at car dealership offices. The lending institution accepts all the involved risk, while in most cases the dealerships accept a flat fee commission, a percentage of the total loan, and/or a bonus for each loan placement from their lending “partner.” This cost is paid for by the buyer through a higher loan rate. It might be simpler and easier to file for a loan at the car dealership, but please don’t assume that it doesn’t cost you for that convenience. In a small number of case, financing is provided, however the dealer does not receive any fee, percentage or bonus for placing the loan. The service is provided to make the car buying experience better and more convenient for the customer.

Banks and credit unions offer direct financing to car buyers, usually at rates better than those they can offer through any “partner” car dealerships—this is because they have no fees to pay for a middleman. Deal directly with a lending institution and you can save money on your new/used car purchase. If you have a savings/checking account with a bank or credit union, they are much more likely to provide you with a car loan than any lending institution for which you are not already a customer, and you’re more likely to get a better rate or more convenient terms (or both) from them too. Most even offer lower rates if you agree to have payments automatically deducted from your account—no checks to write, no envelopes to address, and no stamps to send them in. Now that is a convenience which not only doesn’t cost you anything, it usually saves both time and money!

Try to have your financing issues addressed before you even go to a car dealership. Banks and credit unions will help you determine how much you can afford to pay, which should provide more confidence and less anxiety for when you actually go to a dealership. With loan approval issues already addressed before you set foot on a lot, you’ll be in a position to close the deal right then and there, and to drive it home without further delay. Now that could be a convenience derived from adequate preparation and forethought!

Many wonder whether or not there vehicle will make the trip. Provided you follow factory routine auto maintenance schedules, Pre Road Trip Car Maintenance is simple. Here are some Pre Road Trip Car Maintenance tips and suggestions.

Here’s what to do:

• Clean your car inside and out—windows too! Cleaning your car is a great way to get to know it. For example, you may notice worn tires or a broken lamp.
• Set tire pressures to factory specifications. Adjust tire pressures according to your owner’s manual, especially if you are hauling significant weight.
• Check the fluids, belts and hoses—with most of today’s cars, these can be checked quickly with a peek under the hood.
• Test all your wiper blades to ensure they’re cleaning well. Replace as needed.
• Check all your exterior lights, including fog lamps as applicable.
• If you’re close to your next scheduled vehicle maintenance, get it done.

If you do not know your particular vehicle’s maintenance needs, or its service intervals, they’re worth learning. It will help to rein-in maintenance suggestions from aggressive service facilities.

Many wonder whether or not there vehicle will make the trip. Provided you follow factory routine auto maintenance schedules, Pre Road Trip Car Maintenance is simple. Here are some Pre Road Trip Car Maintenance tips and suggestions.

Here’s what to do:

• Clean your car inside and out—windows too! Cleaning your car is a great way to get to know it. For example, you may notice worn tires or a broken lamp.
• Set tire pressures to factory specifications. Adjust tire pressures according to your owner’s manual, especially if you are hauling significant weight.
• Check the fluids, belts and hoses—with most of today’s cars, these can be checked quickly with a peek under the hood.
• Test all your wiper blades to ensure they’re cleaning well. Replace as needed.
• Check all your exterior lights, including fog lamps as applicable.
• If you’re close to your next scheduled vehicle maintenance, get it done.

If you do not know your particular vehicle’s maintenance needs, or its service intervals, they’re worth learning. It will help to rein-in maintenance suggestions from aggressive service facilities.

The main things to look for in a car body inspection are collision and care. How well the car body was cared for and are there indications that the car was in a collision.

Consider the general appearance of the car. People who care for their car properly care for the obvious things first; this indicates how well the entire car was cared for. Record any defects you find. After inspecting five cars you won’t even remember what color your own car is.

Look for windshield dings and cracks, worn out wiper blades, missmatched or missing wheel covers, fender damage and dents, cracked headlight or tail light lenses and damaged mirrors. Later on you can use these to negotiate a lower price or get the dealer to repair them.

Look for corrosion and collision. Both are bad. Corrosion never heals itself; it only corrodes more with time. The problem with collision is you have no idea how well the repair was made. Sometimes the repair shop cuts corners on the quality; sometimes it is the previous owner. You should avoid a car that has obviously been involved in a major collision. The potential future problems include early corrosion, air conditioning problems and bad tire wear.

Don’t rush through the car body inspection, a small thing undetected now can grow into a major problem later. Look down the side from about 10 feet in front and behind the car for each side. The lines on adjacent panels should be straight. Look in the paint for a smooth reflection. Look especially for ripples. They didn’t make the car with sides like a rippled potato chip.

Look at the color of the paint from near and far and various angles. The color should be uniform and similar in smoothness if it was all painted at the same time (when the car was new). If not it may have a repainted section.

When the car was new, the gaps between body panels were straight and all the gaps were the same size. Check for corrosion. Corrosion only gets worse. If you can see surface corrosion, there is probably much that you can’t see.

Frame parts and many other components that are hidden under the car corrode also. Use a magnet to find body filler. The Magnet won’t be attractive to body filler only metal. The car wasn’t built with any body filler.

As soon as you determine the car has been in a major collision, it’s time to move on to the next car. Sometimes the repair is done with non-OEM substitute parts to save money. In a front end collision the air conditioner condenser can be damaged. It will only work for a while and fail later on, a costly repair. Some front end collisions cause frame damage which will impact the structural integrity of the car and can adversely affect tire wear.

What is the best way to keep from buying a car that has been in a major collision? People don’t volunteer information about collisions involving the car.

Get a Car History Report on the car. Copy the VIN (Vehicle ID Number) and go online to a Vehicle History Report site.

As if choosing a car you want was not complex enough, auto dealers with their ads use the misleading language of “Car Speak.” We have simplified the most used terms to help navigate your way to the best deal.

Add-on interest :: Is Interest that is calculated at the start of the loan, then is is added to the principal, not a legal disclosure, just a misleading amount. To be repaid even if the loan is paid off early.

Base price :: The car base cost without options. This price includes any standard equipment and the warranty and is listed on the M.S.R.P. sticker.

Blue Book :: Actually, Kelley Blue Book, a sales guide dealers use to compute wholesale and retail car pricing. “Blue Book” price can actually mean a price that is found in one of the guides to pricing. The books come in several hues. These are put out by many organizations, are available online and can be found in the reference sections of local libraries.

Car extended warranty :: A contract that covers some car repairs after the manufacturer’s warranty expires. Extended warranties are sold by dealers and independent companies. With a new car, the auto extended warranty from the dealer usually must be bought within a year of ownership.

Dealer holdback :: A reduction in price, usually between 2 and 3 percent of manufacturer’s price, that manufacturers pay dealers, usually quarterly. A holdback may allow the dealer a discount on the invoice price. A buyer could purchase a car below invoice price and still leave the dealer with a profit.

Dealer incentives :: Programs offered to increase the sales of slow moving models or as a means to reduce excess inventories by manufacturers. Dealers may keep or elect to pass on the incentives to the buyer.

Dealer preparation :: A charge that dealers try to inflict on buyers. It is pure profit. The dealers have already been paid for the cost of removing the packaging materials by the manufacturer.

Destination charge :: The price charged for transporting the car to the dealer from the factory or port of entry. This price is to be passed on without any markup.

Invoice price :: The maker’s initial charge to the dealer. The price won’t be the dealer’s cost because they receive rebates, other incentives and the infamous holdback from the manufacturer. The invoice price includes freight, known as the destination charge.

Monroney sticker :: Also known as M.S.R.P., Manufacturer’s Suggested Retail Price. The price sticker on the car window that includes base price, the manufacturer’s installed options, the destination charge, and the car’s fuel economy. Federal law requires this label. and it is removed only when the car is sold. It is named after A.S. “Mike” Monroney, an Oklahoma congressman who sponsored the Automobile Information Disclosure Act.

Prepayment penalty :: A lender’s penalty to the borrower for prepaying the loan before all the payments are made.

Rebate :: A manufacturer’s price reduction as an incentive to buyers. The rebates appeal to people with less-than-perfect credit. These are people who do not qualify for the best rate loan. These rebates also appeal to fist time buyers who do not have another car to trade in.

Rule of 78s :: A formula that was devised before modern calculators. It was a quick way to calculate payoff amounts when payments were made ahead on an loan. Still in use, the Rule of 78s is used to calculate a rebate of interest charges when paying off a precomputed loan. There is no worse way to calculate a payoff amount for a borrower looking to get out of a loan. The Rule of 78s packs extra interest charges in the early months. The Rule of 78s can be applied to calculated loans that are paid off early.

Do you have an old vehicle that you no longer drive? If that vehicle still runs, do you plan on doing anything with it? If not, you may want to think about donating it. Car donations are rapidly increasing in popularity. Each year, a fairly large number of individuals and businesses make the decision to donate the cars that they no longer need or what. Why is that? Because there are literally an unlimited number of benefits to donating your car.

Perhaps, the greatest benefit of giving your car away, as a car donation, is that you will be helping out a charitable organization that needs it. Many of the receivers of donated cars are non-profit organizations. These non-profit organizations often work to help those that are in need. For instance, many cities have local food pantries. Volunteers may not only need to collect food, but deliver the food to those who need it. Without a vehicle, volunteers may be unable to complete all of their tasks. Your car donation could prevent that from happening.

When giving your car away as a donation, you should also be proud. This is another benefit to donating your car. Most individuals, who do donate their cars, are left with a feeling of selflessness and pleasure. Not all individuals make the decision to donate their cars. In fact, if given the opportunity, many car owners would choose to sell their car before donating it to charity. You should be proud of yourself for making to decision to help someone else before helping yourself.

Another one of the many benefits to donating your car is that it is relatively easy to do. In fact, when it comes to car donations, you will find that you have a number of different options. First, you could contact all local charities and ask if they would like to acquire your car, as a donation. If you do not have the time to do this, you could contact a company or organization that specializes in car donations. Once they have your car in their possession, they will then search for a charitable organization who could use it. Although you will not necessarily know where your car will end up, you will find that using a car donation company saves you time and maybe even money.

As mentioned above, you should be proud of yourself for making the decision to donate your car, instead of selling it for a profit. While it may have been difficult to do, you will not necessarily receive nothing for your good gesture. Depending on whom you donate your vehicle to and the vehicle’s worth, you may be able to receive a car donation tax deduction. It is important to note that you will not be compensated for the whole cost of your car, but it will be better than receiving nothing at all.

As you can easily see, there are a number of different benefits to donating your car. No matter which charitable organization it ends up with, it is likely that your car donation will be put to good use.