This, for many is a big secret: The difference in car insurance premiums among insurance companies (for similar packages or policies) can be more than $1000. So unless you did due diligence, you are likely paying a lot more than you should. You certainly could do one or two things with an extra $1000. For most of us, a tenth of that will be highly appreciated. Let me show you how you can get savings on your car insurance...
How do insurance companies determine your premium? They do so by determining your risk level. So, how do they determine your risk level? They do so by your score against several factors (I guess that's why you have to fill out a form). However, like most things, there is no general consensus among insurance companies on the relative weight of each factor against the other. This is what you'll have to take advantage of to make huge savings in your car insurance...
Let's use these factors to make things clearer: Age group and marital status. If you are an under-25, you are considered the highest risk age group. However, if you are married, you are considered the lowest risk group as far as marital status is concerned. However, if you are married and under-25, different insurance companies will score you differently depending on which factor they think is a stronger indicator of your risk level. If an insurance company decides to take marital status as a heavier factor of the two, you'll pay less because you are married.
So you can see that although all insurance companies use the same factors to determine your premiums, your quotes will differ considerably based on which factors they consider as the strongest risk factors and those they consider the lowest risk factors.
Another factor that counts heavily is an insurance companies unique selling proposition. That is what they stand for and who they are focused on servicing. This will determine their biases and to a large extent, what premiums they will charge a certain group of persons. So it does help to find a company that is positioned to favor a group you belong to.
Just as an aside...
A number of folks can actually get so caught up in making savings that they forget what insurance is about in the first place: Providing cover. Don't be caught in that trap. You can make savings without becoming uncovered or "undercovered."
On a parting note...
With the internet, you don't have to go through the Yellow Pages to find the name of insurance agents and then start calling them. All you need to do is click to sites that give you quotes from leading insurance companies in your country.
The additional peck is that online car insurance quotes are usually less than those you'll get from agents. The reason for this is the subject of another article. However, just take advantage of it.
And, never satisfied to leave a good thing alone (I like making them even better), I have researched the best car insurance quotes sites for you. So, I have made it really difficult for you to NOT make some reasonable savings without wasting your whole day. Remember, car insurance quotes are free so what do you lose?
Article Source: http://www.superfeature.com
Wednesday, August 22, 2007
Auto Insurance --Saving $100's Without Compromising Your Cover
Discount Auto Insurance
Auto insurance is an necessity, but why pay more for it than you have to? Take advantage of every possible discount on auto insurance that you can. Many people choose to pay auto insurance on a monthly basis. However, the premium is calculated on a six month or annual basis. If you look at your monthly statements, you are being charged for the convenience of making the payments monthly. If you pay the six month or annual premium in full you will save money over the course of the policy.
Most insurance companies offer more than just auto insurance. They want to be a provider for all the needs of their customers. There are multiple discounts offered on auto insurance if you combine it with another policy such as your home owner's insurance or a life insurance policy. This is because the insurance company wants to maintain your business. They can even roll everything into one convenient monthly, quarterly, semi annual or annual payment.
Many people don't realize that the types of vehicles they operate have a huge effect of the base cost of the auto insurance that they pay. Sports cars and convertibles are among the highest autos when it comes to insurance rates. To get discounts, consider buying vehicles with added safety features including passenger air bags, side air bags, four wheel drive, and a sensor for backing up.
The more you are able to establish yourself as a safe driver, the more discounts you will get on your auto insurance. An insurance provider will look at how long you have had your driver's license as well as any claims, accidents, and moving violations. Major moving violations such as driving under the influence will raise your insurance costs because of the high risk involved with covering you. If you have young drivers in your household, consider having them take driver's education so that you can get a discount for them. Many insurance company's offer a discount for student with good grades as well.
The internet is a great place to find out about the various discounts that may apply to your particular auto insurance needs. If you are new to getting auto insurance or you have a spotty driving record, you may have to start out paying a high premium. You can work to establish a pattern of being reliable by following the rules of the road and paying your premiums on time. This way you will be eligible to reap the rewards of discount auto insurance in the future.
Article Source: http://www.superfeature.com
Search For Cheap Insurance Online: 17 Tips for Getting the Best Insurance Quotes
Does the thought of searching for quality, reliable insurance make you cringe? Looking for affordable insurance, whether it's auto, home, life, health, renter's and so on, is much easier then you think. With the convenience of the Internet, consumers can receive multiple insurance from insurance agents in their area, all without setting foot in an agent's office or flipping through the phone book. Following these simple suggestions will put you on the right path to receiving affordable insurance quotes.
General insurance tips:
1.Have your current insurance policy with you when requesting your insurance quotes.
2.Consider a higher insurance deductible.
3.Purchase all of your insurance policies with the same company to qualify for a multiple policy discount.
For an affordable auto insurance quote:
1.Be sure all vehicle discounts are applied (Anti-lock brakes, Alarm system, daytime running lights, VIN-etching, etc.).
2.Take a defensive driving course.
3.Be very accurate about your mileage to and from work.
4.Ask about affinity discounts.
For an affordable homeowner's insurance quote:
1.Be sure your home is insured to its value.
2.Be sure all home discounts are applied (Alarm, smoke alarms, fire extinguishers, dead bolt locks, etc.).
3.If your home has been renovated, tell your agent.
For an affordable life insurance quote:
1.Consider level premium term insurance.
2.If you are a smoker, quit for at least 13 months and request that your insurance company consider you for a nonsmoker insurance rate.
For an affordable health insurance quote:
1.Consider a higher co-payment or deductible.
2.Join a group health insurance plan.
For an affordable long term insurance quote:
1.Consider a longer elimination (waiting) period.
2.Purchase coverage when you are young (premiums are lower).
3.Pick a daily benefit based on where you live
Purchasing or updating your insurance policy should not be a complicated, time-consuming process. Often there aren't enough hours in the day to finish everything you need to complete. When you search for affordable insurance with companies like HometownQuotes, not only will you have more time at the end of the day, you will also have someone at the end of the line to answer questions and have the opportunity to work with an agent from your area.
Article Source: http://www.superfeature.com
Online Auto Insurance – The benefits of buying car insurance online.
In the late 1990’s, as the internet gained popularity, consumers realized the convenience of shopping online for many different things including car insurance. The internet offers endless information about any subject you need to know more about and it even allows you to complete important purchases such as buying auto insurance online.
Buying auto insurance online not only saves you money, but also carries many benefits which make your life easier. Plenty of auto insurance companies offer discounts for purchasing auto insurance online. The reason companies offer discounts is because when you purchase auto insurance online, the costs associated with issuing the auto insurance policy is significantly less costly for the insurance company compared to issuing an auto policy the traditional way.
When purchasing car insurance online, you are saving the insurance company money, therefore, the savings can be transferred to you. Other reasons for saving money by buying car insurance online is that you do not need to waste time and money, such as gas, driving to the agents office. Also some of the fees that are included in buying car insurance the traditional method are often not charged. Some examples are:
* An agent’s Commission
* Broker’s Fees
* Endorsement Fees
* Renewal Fees
Not only are you saving money by buying auto insurance online, you are also getting the benefit of being able to manage your auto insurance online. If you buy auto insurance online, most companies will offer you the convenience of finding answers to your questions online and making changes to your policy online. That makes life easier for the most of us. Finding important information such as legal information can also be easily researched before buying auto insurance online.
One of the best reasons for purchasing car insurance online is that you can compare insurance rates from many quality companies in order to make sure you are receiving the cheapest car insurance rates. Many websites offer the ability to compare car insurance online from many quality auto insurance companies such as Progressive, AIG, GMAC, Infinity and more. One such website is OnlineAutoInsurance.com which allows you to compare online auto insurance from many quality auto insurance companies with one single process. You can even buy your car insurance online and make changes, payments and find answers online and even speak to a licensed agent if you wish.
Article Source: http://www.superfeature.com
An Insight into Auto Loan
With expansion in the field of technology and automobile industry every year variety of latest models of vehicles are introduced in markets throughout the globe to attract new customers. There has been an innovative development in the production of cars and so has the need arisen to obtain quick money to finance it. The most suitable and simple way of getting a dream car is by applying for an auto loan.
In today's world having a car or any vehicle has become a necessity for everyone. If a person is planning to buy a car and is short of money or if a person is planning to buy a car on installments the best option is to take auto loan.
The first step of getting a good auto loan is talking and discussing with lenders. The terms of the loan should be well understood by the borrower and he has to make sure that he agrees to them. There can be various points which a person does not like in the terms of the loan, so they should be known to the lenders and should be worked upon.
Various ways to secure an auto loan are:
Banks/Financial institutions: Now a day nationalized banks and financial institutions provide their customers a wide range of auto loans containing various terms in compliance with their demand. Any person can borrow up to 125% of the assessed value of car. Such loans are generally available for a term of 3-5 years but the term of the loan can be extended up to 6 years if the value of the car goes beyond a certain limit. Generally bank or financial institution grants the loan only after checking the financial position of any individual.
Online lenders: In order to secure an auto loan a person can browse through relevant websites and compare rates with different schemes with a lender only with few mouse clicks. Such lenders starts the process of granting loans immediately through mails and one finds the best deal knocking his door within minutes at his doorstep.
Various types of auto loans:
Bad credit loans: Generally a person intending to buy any vehicle must have a good credit score. But, such loans are offered to people with bad credit on a higher rate of interest. One must be smart enough to negotiate a best deal with a suitable lender.
Unsecured auto loans: This type of loans can be obtained easily without placing any security against the vehicle. Here there is no fear of losing an asset but it carries a higher rate of interest as compared to secured loans.
Secured loans: Secured auto loans are the loans that are secured by the assets on the car/vehicle that is being purchased. It gives the much needed security to the lender on the lent out money. As the full loan payment with the interest is over the loan amount becomes zero. The main thing is that the person should be regular in paying his installments.
Getting auto loans today should not be a difficult thing to do. Auto loans are available for people of all different credit backgrounds and with different options. It is not hard for buyers to get an auto loan that works for them.
They should be able to find something that fits their budget so that they do not have to end up paying outrageous interest and fees. There are auto loans that are perfect for almost anyone. All it takes to find them is a little hard work. Secure your loan an easy way and take your dreams for a long drive.
Source :http://www.goarticles.com
How Do I File A Claim For An Auto Accident?
Having to file a claim for a car accident that you never planned on having is a challenge unto itself. Knowing what to do when and what to expect, can save you money and emotional energy.
The very first thing that you should do when you are involved in a car accident is exchange driver information. That is assuming you are not seriously injured. If you are seriously injured, make sure that the following information is collected by someone at the scene of the accident.
Get the other driver's name, address, telephone number, driver's license number, insurance carrier, policy number, insurance carriers telephone number, and the license plate number of the vehicle or vehicles involved in the accident.
Make sure that you get the name, address, and telephone numbers of any witnesses to the accident. They may be needed to substantiate how the accident occurred.
Local law enforcement should be contacted to report the accident. If you can not reach them, you can go to your local police department, sheriff's office, or Department Of Motor Vehicles and obtain the necessary form to complete and submit it while there. You also may be able to submit the report via the Department Of Motor Vehicles website.
In the majority of cases, you should report the accident to your insurance company. Before calling them, make sure that you understand your policy.
Sit down and carefully read your car insurance policy. If there is any part of it that you do not understand, call your insurance agent or company, have a list of questions prepared, and get the answers.
If you still are not sure as to what to ask, you may quote car insurance with another insurance company and while you are getting your quote, ask them.
Once you have a complete understanding of your policy, contact your insurance carrier as soon as possible to report the accident. An insurance adjuster may be sent to record the damages to your vehicle and take your report and determine who was at fault in the accident. Be prepared for this. If necessary have a written description of what happened including any diagrams that will explain the accident.
And, having a depostion from any of the witnesses at the scene would be helpful.
If the accident was not your fault, you can either contact the other driver's insurance company or have your insurance company contact them to handle the repairs to your vehicle, or if necessary replace your vehicle.
If you use the other driver's insurance company, you will not have to file a claim on your policy and pay any of your deductible to have your vehicle repaired.
Do not relieve the responsible insurance company of its responsibility until all of the damages are settled to your satisfaction. If necessary have your insurance company handle your claim if the other party's insurance company questions who was at fault or offers an unacceptable settlement.
Be sure to consider all of the settlement factors:
Bodily Injury – You may be entitled to financial compensation for any injuries caused by the other driver. It may take several days for your injuries to become apparent.
Property Damage – The insurance company is responsible for paying the reasonable cost to repair the other drivers vehicle or property if you are at fault. If you are not at fault, the other insurance company is responsible for the repairs to your vehicle. The damages to the vehicle will be determined by the adjuster. In most cases the insurance company and the repair shop negotiate any disagreements about what should be repaired. If you don't agree with their conclusion, you have the right to go to another repair shop.
Being involved in a auto accident is never fun, but do understand that you have certain basic rights, and if you are not satisfied with the way your claim is being handled, you can contact the state Department Of Insurance regarding your claim.
Article Source: http://www.superfeature.com
Cheap Auto Insurance Quotes from Quality Companies
Consumers should keep two important factors in mind when searching for an auto insurance company. First of all, we all want to obtain a cheap auto insurance company, but what most of us ignore is the quality. It is important to make sure that not only do you find a cheap auto insurance company, but a company that will give you the expected customer service.
You're probably wondering why your friend or family member is getting such a cheap auto insurance quote from a certain insurance company, but when you called to get your quote, it was outrageously expensive. Many of us may not realize that although a particular driver is getting the best rates from one auto insurance company, it can also be the most expensive insurance company for you. Each auto insurance company will give different auto insurance quotes for different driver categories. You may or may not fall into a preferred category of a certain auto insurance company. If you don't, most likely the auto insurance quote you get from them will not be cheap. In the other hand, if you do fall into an insurance companies preferred category, you're quote will be among the cheapest.
That is why it is important to obtain several auto insurance quotes from multiple companies. The bottom line is that you need to find out which auto insurance company will offer the category that you fall into, the cheapest possible quote for auto insurance.
There are tons of auto insurance companies out there to choose from; however, you don't have to call each one by phone to get quotes from each one individually. Thanks to technology, you can now log into many auto insurance websites and with one simple process, obtain an auto insurance quote from several companies. Some websites also allow you to purchase the auto insurance online and print your proof of insurance immediately.
While in the process of obtaining auto insurance quotes from multiple companies, you may want to take some time and look into the background of a particular company in order to make sure you're dealing with a stable, quality auto insurance company that will provide the service that you're looking for. Each auto insurance company is assigned a letter grade from "A" being the best and so forth. AM Best is a company that assigns the grading system, you may want to inquire about an insurance company's grade before you decide to buy auto insurance through them.
Once you found your cheapest auto insurance quote and have inquired on the background and quality of an insurance company, feel comfortable with your decision of buying your auto insurance policy online. Buying your auto insurance policy online right from the comfort of your computer may give you the benifits of being able to manage your insurance policy without leaving your computer. A few benifits can be making payment to your auto insurance policy, completing endorsements and submitting an insurance claim right from the comfort of your home.
Article Source: http://www.superfeature.com
Consumers Guide to Online Auto Insurance Quotes
When getting online auto insurance quotes you should be keeping in mind a few factors to make sure you obtain auto insurance quotes from the right companies.
Make sure that when obtaining online auto insurance quotes, you keep quality in mind. It is important to not only look for cheap auto insurance quotes, but look for quality online auto insurance companies.
Looking up the history of online auto insurance companies can be easy if you know where to look; however, most consumers will just read an insurance company's website to read about their background. That is definitely not the best way to research a company because any company can write their own content to make it sound good.
There are multiple companies that specialize in issuing reports on auto insurance companies. Each company is assigned a letter grade from "A++" being the best and so forth. In the most part, consumers will be satisfied buying car insurance online from companies with an issued rating of "A" to "B" which is "good" to "great".
Log onto the A M Best site to research auto insurance company ratings at www.AMBEST.com. You do have to create an account to look up a company's rating, which is fairly simple. Once you create your account, click on "rating and analysis" and input the company's name.
Make sure you're inputting an insurance company's name and not the website name or the brokerage's name. The rating grade is given to auto insurance companies only and not to brokerages or anyone in between.
Now you should be more prepared when searching for the right company, you are now set to start obtaining online auto insurance quotes. Obtaining auto insurance online can be beneficial as long as you can make sure to look into the background and history of the website you're getting quotes from. If you decide to buy auto insurance online, make sure that you are confident in the insurance company's reputation.
Buying auto insurance online gives you the benefits of being able to manage your auto insurance policy from the comfort of your computer. If you're obtaining online auto insurance quotes instead of calling around, you're also saving time because some companies offer multiple quotes with one simple process.
Another good idea is to pick up the phone and contact the online auto insurance company to see how fast they answer the phone. If it takes you an hour to get a hold of a representative, when you're in need of service, you have an idea of the time it takes to be assisted with your auto insurance needs.
Take advantage of obtaining online auto insurance quotes and buying auto insurance online but do keep in mind that you should research the website in order to ensure quality and the customer service you deserve.
Article Source: http://www.superfeature.com
Car Insurance, The Smart Way College Students
Car insurance is a requirement for drivers. The cost of it, however, is a choice. Different car insurance issuers price their coverages differently. There are multiple factors that affect the price a shopper gets. A 70 year young man driving a 20 year old pick up truck will pay a different car insurance rate than an 18 year old that drives a sports car.
Car insurance companies understand that the risk associated with these 2 drivers have a great chance of being vastly different in scale. Now, most people automatically would consider the 18 year old driver in the sports car the more dangerous of the 2 drivers. However, if the youthful driver is an obedient child under strict parental supervision but the older driver has cataracts, cant hear and occasionally falls asleep at the wheel, the danger level distribution shifts vastly.
Then there are other variables such as the choice between full or liability coverage, where you live, how far you drive, gender, how often the type of car you drive is stolen each year and many others. Place all of these variables into the car insurance calculation formula and you are in for a wild ride. No pun intended.
So, the whole costing scheme for car insurance can get pretty complicated and murky really quickly. Variables like this make the game of finding adequate car insurance at a cheap price a game worth playing.
There are more car insurance companies than you can shake a stick at. This makes the competition for your insurance payment a reason to shop around before you commit to any one of them. It never hurts to look around and see what you find.
Car insurance firms will often offer different rates for seemingly identical policies. So, much about the whole process is relative. Dont settle for the first policy that is thrown across a desk at you. Shop around. Car insurance companies will often be willing to compete with other car insurance companies even though they wont initially tell you that.
One strategy for getting low rates is to call multiple car insurance insurance companies and start the conversation by mentioning the rate that you received from other companies. In many cases, they will attempt to beat it buy quoting a lower price or by providing more coverage for the same price.
Another means of lowering the amount you pay each month is to use the Car Insurance Toolbar at CarInsuranceToolbar dot com. The Car Insurance Toolbar interfaces with TypoBounty dot com, a website that allows the user to earn money by reporting typographical errors that they see online. With the average payout for a single error being two dollars car insurance premiums become more manageable fast.
Strategize and utilize tools to mitigate the car insurance price effect. It is worth it.
Article Source: http://www.superfeature.com
Car Loan Refinance: Your Loan Funding Tool
While opting for a car loan, the primary concern for any borrower is the rate of interest and the resultant EMIs. Though the market offers a variety of finance products, the eligibility criteria for most such schemes are stringent and have been designed to attract borrowers who can offer better security and financial stability. Apart from that some institutions take time to process ones loan. Thus, in the bid to get a quick loan to finance the dream car, some borrowers often tend to opt for a finance scheme that charges a steep rate of interest. Now once the loan has been sanctioned and accepted, the EMIs have to be repaid by the borrower and it is then that the realization of financial crunch finally dawns upon. Not only that, any borrower who is paying a higher EMI will opt for a plan with a lower rate of interest any day, provided he comparatively saves more money in the long run.
The process of replacing the existing loan with an entirely new scheme that charges a lower rate of interest is known as refinancing. So if one has taken a car loan and wants to shift to a plan that charges a lower rate of interest can very well refinance it.
Moreover, an car loan refinance makes life easy for all those who had opted for a bad credit car loan. Most financial institution rely heavily on a person's credit score to determine his/ her eligibility. Those with less than desired level of credit score often fail to qualify. However, such customers opt for a bad credit car loan that has been designed exclusively for loan seekers with a low credit score. The only concern regarding a bad credit car loan is its higher rate of interest as compared to the general plans. The concept of auto loan refinancing gives such borrowers an opportunity to revive their credit scores and replace their loan with an entirely new plan that charges them a much lower rate of interest.
Car loan refinance is fast catching popularity among the customers. With more than a dozen new car models being launched every year, the need to have a car is irresistible. Financing a car purchase is not difficult either and if the EMIs are poking a big hole in the pocket, simply just refinance the loan.
Source : http://www.goarticles.com
Auto Loans - How You Can Find The Best One
Auto loans are a very competitive market. Getting a good auto loan is a matter of knowing what to do and what to ask for. Anyone can get a good auto loan if they only take the initiative to do so. There are any lenders competing for business when it comes to auto loans so shopping around and finding the best deal is not hard.
As with any loan an auto loan is based upon the borrowers credit. The worse their credit score, the harder time they will have getting a loan. Having a bad credit score could greatly limit the options in lenders, but it does not mean a person should settle for just any loan. They can still be picky and get the best auto loan possible.
The key to getting a good auto loan is talking and negotiating with lenders. A buyer needs to understand the terms of the loan and make sure that they agree with them. If they see something they do not like they should talk to the lender about it and work it out so they do agree.
It is also important for a buyer to know what they can afford. In some cases, a shorter term loan is the best bet. For someone with adverse credit, high interest rates over a shorter period of time means less cost. However, the shorter the loan the higher the monthly payments. That is why knowing what you can afford is essential.
Another way to help get better rates is to make a larger down payment. This helps to reduce the overall amount to be financed, which in turn reduces the interest. If making larger payments per month is not good, then perhaps saving more to put down is the best option.
Above all, a buyer should realize that they have many options. They do not have to go with the first lender that offers them a deal. Shopping around is always the best choice. They should always try to get at least two quotes, if not more. It is essential for a buyer to look around so they can get the best possible auto loan.
If you are a homeowner then a secured loan can also be a cheap option. With a secured loan you can borrow more, spread the payments out over a longer period of tie and generally obtain a lower rate.
Again if you have an adverse credit history then you will be paying a slightly higher rate but the terms are flexible and usually you will not have any huge charge if you pay off the secured loan early.
Getting auto loans that are reasonable should not be a difficult thing to do. Auto loans are available for people of all different credit backgrounds. With all the different options it is not hard for a buyer to get an auto loan that works for them.
They should be able to find something that fits their budget and where they do not have to end up paying outrageous interest and fees. There are auto loans that are perfect for almost anyone. All it takes to find them is a little work.
Article Source: http://www.superfeature.com
Finding An Auto Loan – Even With Bad Credit
If you have bad credit, you will likely encounter some difficulty getting an auto loan. In some cases where a person's credit report is very poor, they will not be able to get a new car loan, but can probably still obtain the financing to buy a used car. If you find yourself in this position there are a few things you can do to improve your credit, improving your chances to be approved for an auto loan and also get a lower interest rate.
The first step is to take a close look at your credit. Even if you believe your credit is poor, it may be that it is considered moderate credit. Request a copy of your credit report and credit score. Your credit score is a number between 300 and 850 that is used as a baseline to determine your eligibility for different types of credit. If your credit score is below about 550, you may find it very difficult to get an auto loan. 550 to 675 is usually considered moderate credit, while a score above 675 is considered excellent credit.
The credit score is only one part of the picture when applying for an auto loan. The other factor is your credit history report . This report contains details of your debts and the timeliness of your payments. It will also reveal the number of open credit accounts you have, and whether or not you have filed for bankruptcy in the past.
After you have received your credit report, make sure that all the items on it are accurate. Inaccuracies can make your credit appear worse than it actually is. If mistakes are discovered, the law requires that the item be removed from your credit report within 30 days; in fact, anything can be removed from your credit report if the creditor in question does not respond within 30 days. Removing negative items from your credit report is one of the most effective things you can do to improve your credit.
The next step to getting a car loan with bad credit is to clear up the legitimate problems that affect your credit history report. Pay down excessive credit card balances and close any unnecessary credit accounts you may have. As you pay down the balances you will lower your debt to income ratio, thereby increasing your chances of getting an auto loan with a low interest rate.
Once you have made all possible improvements to your credit, the final step is to compare lenders to find the terms you want and the best available interest rate. Whether you decide to purchase a new vehicle or a used one, be realistic about how much you can afford to pay every month. You don't want to tarnish the credit you have been working to improve. Building a record of timely payments on your auto loan will help strengthen your credit, so that the next time you finance a car you can put more money into your automobile, and less in your lender's pocket.
Article Source: http://www.superfeature.com
Auto financing and poor credit
The most common misconception concerning bad credit auto loans is that they are complete rarities. Nothing could ever be less true. A bit of smart management can keep you away from those sky-high interest rates, particularly since bad credit does not necessarily mean you and the situation in which you are currently form a financial disaster. In most cases, people with bad credit at a certain point actually have quite a good credit history before that, but were subject to unfortunate events.
Auto financing is not as strict as it used to be, and loaners are not that reticent about it any longer. In their case as well, the mentioned misconception is slowly, but definitely disappearing, particularly since they also have to do business, and even someone with poor credit may prove to be a viable investment.
As stated above, even if you have bad credit, auto loans are not impossible to get. In fact, it may be even easier than it seems. Many people ask themselves whether this is truly possible, and although it is, you need to take into serious consideration a number of details, before actually receiving the loan. You have to be very careful for others not to take advantage of you simply because you have poor or no credit. Otherwise, you should know that it is possible to obtain bad credit auto loans.
One common mistake that people in search of bad credit auto loans seem to do is focusing exclusively on auto financing. Not that it would be a bad idea, but one has to see the problem on the overall, and consider the financial decisions for the future. These decisions need serious approaching. After all, it is impossible for bad credit auto loans not to affect your financial future in one way or another. Such a mistake may very well result in many over-inflated payments that you could avoid completely with a bit of careful planning ahead of time.
One thing to look out for is the tendency that some have to charge you extra by adding all sorts of additional fees. Sacrifices are, indeed, necessary, but the key is to try to decide whether these auxiliary packages are truly essential for the transaction, and if they prove not to be, do not let others to fool you.
Getting a loan with bad credit is obviously not as easy as if you had perfect credit, but luckily, there are firms that specialize exactly in this, and which feel perfectly prepared to offer you or intermediate for you auto financing. The online approach is very likely the most efficient. Evidently, there is no way you could reach the same number of people face-to-face in so little time. In addition, the advantage of a database is not a matter of overlooking when your request needs the sure matching of an offer.
If you are a rookie of the whole operation, try searching for one of the firms that handle the intermediary work – specifically, they put you in contact with the perfect person who can offer what you are looking for, preferably as close to the place where you live as possible. In this manner, you know you have prepared the grounds for the optimal choice concerning your auto financing, and you do not have to go from place to place – it is all a matter of electronic settling.
Article Source: http://www.superfeature.com
Auto Loan For Bad Credit ? The Six Worst Things You Can Do
Need an Auto Loan For Bad Credit ? The Six Worst Things You Can Do
(1) Purchasing the wrong auto. As mentioned earlier it's important to meet your needs and not your wants. Pick an auto that fits with your budget and daily lifestyle. If you drive a great distance everyday then you'll want to choose a car that is more comfortable for long distance travel or is more economical in terms of gas mileage. If you have kids it may not be a good idea to pick a sports car.
(2) Showing your emotions in the showroom with the dealer or manager. Emotions cloud our judgment and the dealers know it. Auto dealers take full advantage of this when they see a potential client dreamy eyed and salivating over their fantasy car. Once they know this they will be much less willing to negotiate on price or terms. You'll also be more likely to accept a bad deal if your emotional. In most states they have a three day "cooling off" period where you can take the car back if you want too. (For this exact reason!)
(3) Choosing a dealer by a specific limited location: Not all dealers are the same. Dealers have what's called a CSI which is their Customer Satisfaction Index. These indexes vary from dealer to dealer and could be a good indication of the kind of service you can expect from them. You should probably also check with the Better Business Bureau to see if there have been any complaints against the dealership or the manager of the dealership.
(4) Talking about your possible trade in too soon: Don't mention your trade in until the final price has been firmly set. If you prematurely mention that you are going to trade in your existing vehicle you may find yourself playing their favorite trade-in game. If you do decide to trade in your car make sure that you have it clean to give them the impression that you value your car. If you bring it in dirty then they will have the impression that you do not value your car and want to reduce the trade in value.
(5) Going it alone unprepared. If your not mentally prepared for the negotiating process then you may want to consider an auto brokering service which gives members special pricing through authorized dealers. This definitely eliminates the hassle of the negotiation process.
(6) False sense that the deal has been over and done with. Dealers may think you've completed the deal when they come back and charge you for more stuff like dealer preparation charge, undercarriage treatments, delivery charges etc.. Make sure you have all of the upfront information before you make the final deal.
Now that you've had a chance to review the six worst thing's you can do when getting an auto loan, you can now review the most important steps like:
(1) Knowing what your credit report says about your credit history.
(2) Identifying what kind of car you actually need. (What you can afford).
(3) Shopping around to get the best deal. The auto dealers vary in price and service.
(4) Knowing the "real " final cost of the car.
(5) Making prompt payments on your car once you have purchased it so you can build up your credit rating.
Article Source: http://www.superfeature.com
Improve Your Credit With An Auto Loan
If you plan on financing your next vehicle, you should take some time to shop for car loan quotes. Naturally you want to get the best possible interest rate, since auto loan interest rates are closely tied to your credit rating and credit score. Although you will need an excellent credit scored to get the best auto loan rates, most people are still able to secure some kind of auto financing. Free quotes are widely available online, and by comparing a number of quotes, you will get an idea of what to expect.
The first step in shopping for a car loan is to order a free copy of your credit report. If you find erroneous items on the credit report, you should get them removed before financing a vehicle. Once you review your credit report and learn your credit score, you will have some idea of the interest rate you can expect to pay.
If you find that your credit is poor, there are steps you can take to improve your credit score. Close accounts that you use rarely or never, because having too many open credit accounts can adversely affect your credit score. Avoid having accounts maxed out, and try not to make any late payments before applying for your auto loan.
Be aware that an excessive number of inquiries into your credit can have an adverse effect on your credit score. However, some inquiries count toward your FICO score and others don't. If you authorize a lender to check your credit before applying for a loan or other type of credit, it will affect your FICO score. If you request a copy of your own credit report, or a business requests a copy of your report before performing a service or offering merchandise, it will not count against your credit score. Likewise, inquiries by a potential employer will not affect your FICO score.
There are a few steps you can take to improve your credit score before you apply for an auto loan:
- Close credit accounts which you seldom use, as having too many accounts may lower your credit score.
- Try to keep balances paid down as much as possible. A number of maxed out accounts could be viewed as a sign of the potential inability of an applicant to be able to make the payments.
- Obtain a copy of your credit report and check it for errors. Many people find inaccuracies on their credit reports that have lowered their credit score. You have the right to have corrections made to any inaccurate items on your credit report.
Once you have confirmed that your credit report contains only accurate information, you should build a history of timely payments, lowering your debt to income ratio and decreasing your total amount of debt. Increasing your credit score takes time, since negative items can remain on your credit report for seven years, and ten in the case of bankruptcy. Fortunately, older items are less important than your recent credit activity.
Now that you have the foundation for improving your credit in place, you are ready to begin shopping for auto loan quotes. Getting online quotes is a quick and efficient way to test the waters and see what kind of rates and terms you will be able to procure. Obviously you want the best car loan rates possible, but you should also be aware of the terms offered and the length of the loan. If lower monthly payments are your goal, you may greatly extend the time it takes to pay off the loan.
Don't overlook banks and credit unions where you already do business as sources of auto loan financing. They may offer you significantly lower interest rates and give you more flexibility in the repayment terms of your car loan. Don't eliminate dealer financing as an option when purchasing a vehicle; just be aware that car dealers often add extra points in exchange for a lower interest rate, or charge more for the vehicle itself.
Unless you are able to pay off your loan early, it will usually take several years to repay. Making timely auto loan payments will help increase your credit score, which will allow you to get a less expensive loan the next time you purchase a vehicle. In fact, demonstrating responsibility with an auto loan is one of the best ways to improve your credit.
Article Source: http://www.superfeature.com
Is It Time To Refinance Your Auto Loan?
With interest rates near all time lows for the last several years, many people have been refinancing their mortgages, lowering their mortgage interest rates and monthly payments. It is also possible to save a lot of money by refinancing your auto loan.
Auto loans carry much shorter payoff schedules than do home loans, so it is to your advantage to refinance your car loan as early as possible, before a good deal of the original loan has already been repaid. If you are already several years into making payments on a car, the savings will not be as great.
When you refinance an auto loan, you will pay off the existing loan completely and enter into a new loan agreement, which will ideally carry a lower interest rate than the original loan. If your refinance loan has a payoff time longer than what was left of your original car loan, and your interest rate is equal to or lower than your previous interest rate, you will in turn have lower monthly payments. You may opt to take the interest savings from the new loan and apply it toward the principal, thereby reducing your payoff time.
Before you apply for an auto refinance loan, you should determine your credit score. To qualify for a refinance loan, you do not have to have perfect credit, but your FICO score should be at least 550 or higher to qualify for a competitive interest rate.
The next thing to look at is the interest rate on your current auto loan. You want to make sure you will be able to get a lower interest rate when you refinance. If you find you can't get a lower interest rate than you already have, it may not be worth it to refinance, unless you are satisfied to simply extend your payoff time to get lower monthly payments. In contrast, if you are able to knock down your interest rate by several percentage points, you could save thousands of dollars during repayment.
When refinancing a car loan, you will need to know the exact amount needed to pay off your original loan. While some companies offer an auto equity loan with cash back, most traditional lenders will only loan enough money to cover the payoff cost of the vehicle. In either case, you will need to know the payoff balance of your existing loan.
Another benefit of auto loan refinancing is that in most cases you will be able to skip a payment. Because you are entering a completely new financial agreement, there will be some time involved in paying off your original loan and receiving a payment schedule for the refinance loan. This will allow you to effectively skip a monthly payment.
Finally, compare several lenders and get a feel for what kind of interest rate you are likely to get on an auto refinance loan. Rates and terms will vary from lender to lender. Before getting your car loan quotes, collect all necessary personal information, including address and phone number, time with your current employer and salary level, residence history, and contact information. Doing your homework ahead of time will insure that you get the best possible interest rate for your auto loan refinance.
Article Source: http://www.superfeature.com
A Look At How Hybrid Cars Work
The Hybrid Electric Vehicle (HEV) is quite a marvel. Even as a work in progress, it has improved the gas-dependence situation and has saved many from having to spend so much on fossil fuels and has even helped save some taxpayer money.
What is it under the hybrid car hood that is seems to set it apart from the other cars? Let's take a peep and try to take a look at just how these wonders called the hybrid cars work.
What's In The Combination?
The keyword in all of this is the word "hybrid." An HEV basically brings out the best in both electrical power and fuel. By incorporating both an electrical motor and a gas engine, it allows the vehicle to switch back and forth between energy sources. Of course, the usual case is that the car really depends solely on the battery and electrical motors to run the vehicle.
So what is the gas for? Well, the vehicle will still need fuel to run a motor that charges the battery which in turn runs the whole car. But the beauty of this set up is that not much fuel is needed to charge up those batteries; thus, hybrid cars really only need so much fuel to fill their significantly smaller gas tanks and therefore it saves people from having to spend so much money on gas.
Going The Distance
In order to actually see how a hybrid car works, one would have to take one for a spin on a full tank and compare the results in mileage with a car that runs only on gas. One will definitely see the huge difference in cars dependent on electric motors. Going a great distance is achieved by the way the hybrid works. There are 3 essential technologies that allow this to happen.
The first is known as regenerative braking and this involves an electric motor that applies resistance to the drive train which causes the wheels to slow down. The energy from the wheels turns the motor which in real time acts as a generator which converts energy wasted during coasting and braking into electricity. That electricity is then stored in a battery until it is needed by functions in the electric motor.
The next technology used in hybrid cars is the elect motor assist. This elect motor assist provides extra power to help the motor in acceleration like ascending elevated terrains or speeding up. Smaller engines are used which is more efficient compared to when internal combustion engine is used.
Another hybrid car technology that is beginning to pick up in a lot of modern hybrid car is the automatic start and shutdown. This technology allows a hybrid vehicle to stop in the middle of traffic or at a stoplight, thus, shutting down the whole engine as well, ultimately preventing the engine from wasting energy and fuel from just being idle. When the accelerator is stepped on again, the engine will start up automatically and acceleration is made available. It's a clever option that is ideal for city driving. When combined, these three technologies spell how hybrid cars work.
Source : http://www.goarticles.com
Great Lease Deals on Used Wheels
Are you struggling with the decision whether to buy or lease a new car? You many not realize that leasing a used car is another option that's available to you. Leasing a used vehicle is an attractive option for drivers who want an affordable alternative to driving a luxury sedan or truck.
As with new car leasing, you need to do some research to help secure the best deal. First and foremost is price research.
Your price research should be focused on the vehicle's key figures: the initial market value, and the estimated residual value. It's a little harder to determine these figures on used cars, because there are no factory-set sticker prices and the residual percentages are determined by subjective current retail value. For this reason, it's important to find several estimates and then determine a median value. You can find the information you need online at sites like cars.com and edmunds.com, and you can visit local dealerships.
Comparing the used car lease with a lease on a new car of the same make and model is another way to pin down a good estimate. This tactic provides an overview of the differences between new and used car leases. Similar to leasing a new car, a used car lease is naturally more attractive when the residual value depreciates the least. It's easier to find a leasing bargain with a high-end luxury vehicle that holds its value.
Next, you should verify the accumulated mileage and assess the overall condition of the vehicle. The maximum mileage on the used vehicle you choose should not have exceeded 12,000 miles a year. For example, if the car is three years old with 50,000 miles on the odometer, it's probably not your best choice for a used vehicle lease.
In addition to actual mileage, check for signs of excessive use, like worn seat fabric and damaged interior elements, worn pedal pads and a dirty engine, which can indicate poor maintenance or even an odometer roll-back. Even if the car is being marketed as certified, it's in your best interest to have it thoroughly inspected by a qualified mechanic you know and trust.
Gap coverage is a type of insurance offered on a new car lease that protects the driver against vehicle loss, damage or theft. This type of coverage is not usually offered on a used car lease. Automobile insurance policies will typically only cover what your car is worth at the time of loss, rather than what's owed on the lease. The difference can run into thousands of dollars.
For your own peace of mind, arrange your own gap coverage before entering into a used car lease. You can make these arrangements directly with the dealer, or through an automobile insurance company.
If you've been dreaming of driving a high end car, but can't manage the high monthly payments, a used car lease can be just what you need to cruise in high style.
Source : http://www.goarticles.com
Do You Know These 5 Things That Can Save You Money At Cheap Car Auctions .??
Everyone wants to get a bargain, right .?
And you want to know that what you just bought is worth more than you paid for it - We all do .!!
Ok, Let's get to the 5 things you should know about saving money at cheap car auctions.
Firstly, Do Your Homework..!
Sounds simple I know; yet lots of people just arrive at the cheap car auctions EXPECTING a bargain. How can you possibly get a bargain if you have no idea what the usual selling price is..?? Find out what is on offer before you attend, then investigate what that make and model would normally sell for.
Secondly, Know Your Budget..!
Right, you've found the cars that you are interested in and the normal asking prices. Now ask yourself how much you would be prepared to pay, in cash, for those cars. Write down for each make and model that amount - this is your maximum bid..!! This is to make sure you don't get carried away by competing with other bidders and go beyond your budget.. it can happen so fast.. So write it down and keep it hidden from anyone else.
Thirdly, Check The Merchandise..!
Would you just blindly go to a car dealers yard, point to the first car you see and say "I'll take that one please" .?? Yet some people do exactly that at car auctions.. So, get yourself there early and check them out - start them up and crawl around them - poke and prod. Most times they will be near new models in pristine condition. If you don't fancy the crawling, poking, and prodding bit, then take someone with you to the cheap car auction who knows what to look for.
Fourthly, Check The Paperwork..!
Many auctions will offer a complimentary CarFax™ VIN report before you start bidding for your own peace of mind, so get it.! Also, a car auction center or website source will usually offer a 3 month warranty or guarantee free of charge. For extended warranties, a small fee normally applies, depending on the source. But, in general, it's never a problem, since many cars are almost brand new and in really good condition.
Lastly, Be Prepared To WALK Away..!
This one is SO Important..!!!
If you find that there are crowds of people all bidding on the models you want then it may be best to just pack up and go home. Cheap car auctions are being held almost every day of the week somewhere, so you won't have to wait long for another one to come around.
The main thing is to have fun. I'm sure the feel of driving your bargain dream car will far outweigh having to attend a few car auctions.!
Follow these 5 things and you can be successful at saving money using Cheap Car Auctions...
Did you find this article of interest.? You can begin searching for makes and models available in your own area by following this link: Cheap Car Auctions...
Source : http://www.goarticles.com
Tips For Buying A New Car
Before you rush out and buy that new car, it's a wise idea to think about what you really need in a car.
People's needs change, so what was suitable when you bought your present car may not be the right criteria for now - or the future. For instance, if you are a young married and plan on having a family over the next few years, you'll need to consider whether there will be enough space in your chosen car.
A car should last at least ten years and things can certainly change in that time.
You might intend to only have one child, but what about school friends or car-pooling? There will need to be enough space for these possibilities. A sporty two-seater will be impossible to fit two or three kids in along with Mum and Dad.
On the other hand, that six-seater you bought several years ago could be far too big if your children have all recently left home. Yet again, you might decide that now is the time to take that long trip you've planned for years and you'll need a larger vehicle to tow the caravan. Another thing to consider is what you will be using the vehicle for most. Do you take off-road holidays, or do you prefer to keep to the main roads? Will the car need to double as a work vehicle? Maybe it will be needed for work, family and shopping.
If you will be using it for work as well as family, will it hold the things you need for your work? Not many bags of horse feed will fit in a sedan. On the other hand if the car is to be used as a run-about for the shopping and children, a sedan would be fine. Counting costs may also need to come into the equation. These days when the cost of fuel has risen considerably, it makes sense to buy the car that takes the least amount of fuel to run - so long as it still meets your other needs.
These are some important things to think about before making that final decision.
Before you go out to buy that car, it might pay to do some research on it. There are many websites that allow you to type in make and model of a car and get details of what it is worth.
Ideally, you should make a folder especially for all the information you will get from various sources. It's easy to forget or confuse one set of information with another. Trading magazines will give you a good idea of what a particular make and model of car is selling for, and you can watch the ads in the newspaper and at used car lots.
Be sure to save all the data and put it into your folder. But price is not the only thing you want to find out. New car pricing info can be had from FightingChance.com, Autoweb, Autos.com, Invoice Dealers and others. They will give you prices on new and used cars and also the dealer invoice price for new cars.
It's much easier to do this research online rather than drive all over town hunting down prices. Always get at least three quotes for a new car. They will all vary. The way to get the best price on your chosen vehicles is with competing quotes. You should never go to a car yard without your quotes to compare with their prices.
Source : http://www.goarticles.com