Consider
your needs - Do you want a manual or automatic transmission? Do you want
4WD? What safety features are important to you? Two or four door? Knowing
exactly what you want will help save you time and money in the long run.
Think
about your budget – What do you plan on spending on a vehicle? If you are
financing, what can you afford to put towards car payments every month? Don’t
forget about insurance rates and gas prices when factoring in your monthly car
budget. A good rule of thumb is that your monthly car payment shouldn’t be more
than 20 percent of your monthly take-home pay.
Book your
test drive – Nowadays you can book your test drive online. This saves you
ample amount of time as the dealership will have the car fueled and ready for you
to drive when you get there. I would suggest test driving at least 3-4 vehicles
before making your final decision. Your list from considering your needs will
help you narrow your choices down to a few different makes and models.
How to
test drive a car – Of course we all know how to drive a vehicle, but do we
really know how to test drive a vehicle? Test driving a used car properly helps
you decide if it is the right car for you. It will also help you determine if
the vehicle you are interested in is in good condition. Once you’ve situated yourself behind the
wheel, ask yourself if it is a good fit. Does it offer sufficient headroom and
legroom? Are the steering wheel and other controls positioned at a convenient
location for you? Take your time and be sure to turn off any distractions while
driving, including the radio.
Making
your decision – Once you’ve decided on that perfect used car, it’s time to
fill out the paper work. Before you go to pick up your new vehicle make sure
you’ve made the trip to your insurance broker and to the Ministry of
Transportation to pick up your new license plate or register your old one. Once
all that is done and you pick up your car it’s finally time to relax and enjoy
your new ride!
Automotive Economics
Articles on various topics pertaining to automotive economics like financing, credit issues, etc.
Wednesday, June 26, 2013
Tuesday, June 25, 2013
Advantages of Buying a Used Vehicle
There are many good reasons to buy a used vehicle. Number one? Affordability. Buying a new car is much more expensive than buying a used one. The advantages of used car prices can also allow you to step up to a nicer model without breaking the bank.
Also, a major pro of buying used is depreciation value. As
soon as you drive your new car off the lot it loses value. In fact, some models
can lose up to 35 percent or more in the first year alone. With a used car,
there’s no depreciation hit as soon as you leave the dealership.
Used vehicles also
tend to give you less expensive insurance rates. Insurance rates are usually
affected by the age of your car, among other things like driving experience and
driving record. Going for a used car will likely make a big difference on your
insurance premium. However, checking insurance prices before buying any vehicle
is usually a good idea. You’d hate to be hit with a premium you weren’t
expecting that’s way out of your budget.
At My Next Car we bring you the tools that make it easier
than ever to buy a used car. You can search our inventory online, get a price
quote or apply for credit – it’s all just a click away.
Our large inventory, wide selection of models and
competitive pricing allows us to make you a great deal on your next used
vehicle. Come on down to the largest indoor used car lot in Ottawa and let us
assist you in making a confident decision on your next used vehicle
purchase. Tuesday, December 11, 2012
Bad credit? Re-establish your credit with a car loan!
Do you have bad credit? Do you feel you won’t be able to get a loan from
anywhere? Don’t worry, you are not alone!
So this is how you gain back the financial institutions’ trust and re-establish your credit while driving a vehicle that you love for a payment that you can afford!!!
For most of us the second biggest purchase in our lives, after a house,
is a vehicle. It’s not always luxury but a necessity. Trying to keep up with
both ends is not always easy and sometimes misfortune comes knocking on your
door and starts hammering down on your credit score for various reasons:
bankruptcy, late payments, collection, repossession, a divorce or even just
being self-employed or being new to the country can cause headaches. The bottom
line is that you end up with a low credit score.
“In Canada
in 2011 personal bankruptcies dropped by 16%, while consumer proposals
increased by 6.4%. Overall there were 77,993 personal bankruptcy filings, and
45,006 consumer proposals filed, for a total of 122,999 filings.” - Office of the Superintendent of Bankruptcy
This article will show you how a car loan can help you rebuild your
credit history and regain the financial institution’s trust.
Probably the best thing to help you rebuild your credit score is a car
loan. Why? Because it involves a substantial amount of money and there are many
programs available for credit issues not just from banks but from other
financial institutions as well like Carfinco and Rifco.
“Bad credit auto loans are designed for people who have a less than
stellar credit history…” - Lisa
Armstrong, Bubble Economy.
Before going further, you need to cover your base and make sure you have
a source of income and that you are determined to rebuild your credit score.
You will also need to deal with a good professional Business Manager that is
specialized in credit issues so he can build a solid case to submit to
financial institutions.
So without further due, here is the plan:
You sit down with the Business Manager of your preferred dealership (that
deals with credit issues) and you listen very carefully at what he has to say.
Be as honest as possible. Remember that his paycheck is directly related to
whether or not he gets you approved. In most cases, the Business Manager will
tell you how much you can afford and will also direct you towards a short list
of vehicles you can choose from. It may not be the ride of your life, but have
faith, it is only temporary and you need a set of wheels, don’t you?
Now this is where the ball hurts. There is a good chance that your
interest rate will be high, usually between 10% and 30%. Remember, the
financial institutions don’t trust you and you have to gain back that trust,
but unfortunately until then, the risk for them is high and this is reflected
by high interest rates. Be wary of in-house loan, these loans are often
extremely expensive and most of the time no data is sent back to credit bureaus
therefore has no effect on your credit score. Remember that you want to rebuild
your credit history so you do want the credit bureaus to know you are making
your monthly payment on time.
This is where it gets interesting. If you are steady and make all your
payments on time for the first 10 to 12 months, you may very well become a favorable
client to financial institution and they will most likely drop you interest
rate after that period and allow you to refinance your vehicle. Guess what, you may even be able to trade that vehicle
for something more to your likings.
So this is how you gain back the financial institutions’ trust and re-establish your credit while driving a vehicle that you love for a payment that you can afford!!!
Friday, November 2, 2012
Why not to use Line of Credit to pay for a vehicle
A lot of people
fall into the mistake of using their Line Of Credit to purchase or lease a
vehicle not knowing that a line of credit has a floating interest rate that
fluctuates with the bank rate (variable interest rates always) while a customer
using loans especially designed to purchase or lease vehicles has the
opportunity to choose from variable or fixed interest rates.
Another thing
that most people don’t know about their line of credit that banks consider line
of credit a second mortgage secured and registered against property or home.
Default of payment for any reason allows the bank to take their home
(Foreclosure).
It is always one
of bank’s rights to withdraw money from customer’s accounts to pay for their
line of credit without notice and if the bank sees any increase in risk to the
security of line of credit, they can demand full payment of the amount owed on
line of credit.
Also terms of
repayment using line of credit are not designed to automotive purchases due to
the vehicle’s price depreciation factor as well as the enlarged term of the
loan (registered against the property and the line of credit).
Customers using
line of credit to pay for a vehicle might bear legal fees to discharge the
second mortgage from property title while a vehicle loan would be paid in full
and lien released with no fees associated (responsibility for release borne by
financial institution).
Now
you know why it is a bad idea to pay for a vehicle using line of credit!
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