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How to Obtain Finance For Used Cars

Do you desperately need to buy a car but do not have the finances to do so? Well, you can always opt for a loan to buy used cars. A lot of companies have started finance schemes for selling their used cars better. Many people who need to buy a cheap car but cannot afford to do so take up these loans. If you do need financial assistance when you are buying cars, you may take up a loan. However, you must know that the loan for a used car charges higher interest than loan for a brand new car. For example, if you have to pay an interest of 12 percent on a brand new car, then you would have to pay around 15 percent for a used car of the same make and manufacturer. Even though it seems strange, there are quite a few pieces of logic that are applicable here.

1. Financiers are unaware of the true price a used car

When you buy a new car, its value depreciates by almost 50 percent when it rolls out on the road. Judging your drivability, the cost of the car, make and manufacturer, the financier would be able to calculate the true price that your car would command five to seven years later. Therefore, they would know exactly how much they would be able to recover in case you default on your loan and they have to tow your car away to auction and repay the loan.

However, when it comes to used cars, the depreciation value cannot be calculated clearly because the wear and tear on the car cannot be clearly calculated in case of old cars. Therefore, financing companies cannot clearly gauge how much they would earn from selling your old car. In the event of you defaulting on your loan, they would not be able to recover enough money to pay off their loans. Hence, to offset their losses partially, they lend money for old cars at a higher rate of interest.

2. Credit History of Buyers

Bankers usually believe that those people buying used cars with loans would not have good credit history and hence they charge higher loan interests in order to discourage them from taking loans. Moreover, higher interest safeguards them against defaulting habits of customers with low credit scores.

3. Bankers want you to buy new cars

Since most of the financing for used cars are offered by banks rather than the car manufacturers themselves, banks elevate the interest payable on loans for used cars so that buyers opt to buy new cars. New cars are a safer investment for banks and hence banks encourage buyers to take loans for buying new cars

There are however exceptions to this rule especially when buyers opt to buy used luxury cars. Most buyers opting for used luxury cars are C segment car users who want to upgrade to luxury cars. They are judged to be safe customers who have good credit history. The loan rates for luxury used cars are around 11 percent which is almost 4 percent lower than that of used affordable cars. Therefore, those buyers with a budget of Rs 15 to Rs 20 lakhs should opt for a used luxury car instead of a premium sedan of the same price because the drive experience would not be the same for both.

If you are thinking of opting for finance for used cars, then you should prepare at least 6 months before taking out your loan.

Monitoring your credit score

Keep a check on your CIBIL score because it determines the rate of interest payable on your loan for used cars. A score above 75 is considered to be a good one and hence you should aim to have your score above this benchmark. By checking your credit score regularly, you will be able to determine whether everything is in order and in any case of discrepancy, you can contact your bank and get it rectified.

To elevate your credit score, you should have very few uncovered or unsecured loans and more of secured loans. For example, personal loans and credit card loans are considered to be unsecure ones and hence you should pay them off as soon as possible. On the other hand, a house loan or a scooter loan is a secured one and hence it is a sign of good credit. Maintaining the balance of your credit history is the key here. If you believe that by not using your credit card at all, you would be able to have a higher credit score, then you will be mistaken. Non usage of credit card shows that you are too scared of taking on loans and hence cannot handle the pressure of a car loan.

However, do not buy too much of stuffs on your credit card as it would indicate that you are too spendthrift and have little control over your finances. Optimally you should spend less than 60 percent of the credit limit you set to your card. Also, do not let the outstanding loan on your credit card to be rolled over. A lot of credit card companies allow you to pay a part of your loan and then transfer the rest to the next month. This only increases the amount outstanding in your name and it will increase the rate of interest on your outstanding loan and also spoil your credit score.

Once you have secured a loan for used cars, don’t hesitate to log into an online car trading website where you can find good quality second hand cars in the city. You can enter your budget specification along with the model that you want to buy, the fuel variant and the year of manufacture. The website would show you the best options available for your budget. You can directly contact the seller and talk to him or her regarding the sale of the car.

How to Prepare for a Long Flight

The first thing I like to do is to get as little sleep as possible the night before I fly, this way by the time I get to the plane I can hopefully just go to sleep and wake up at my destination. I only recommend this if you are able to perform any tasks you need to do before your flight. If you have to drive for 5 hrs first you may want to get a good night sleep, and maybe take some Tylenol pm or something else to make you drowsy. Many people like to get a little drunk on a flight, I am not one of them, but if it helps you relax and get some sleep then I say go for it, just dont allow yourself to drink to the point where you become an obnoxious drunk on a plane.

My next tip is to get to the airport 3 hours in advance, this is for 2 reasons. By getting there so early I am always one of if not the first to actually check in for my flight, which usually gets me a good seat, and I dont have to wait in long lines. The other reason for always getting t the Air port at least 3 hrs before your flight is, if you check in early you cant get bumped from the plane, the people who get there last minute sometime here the words overbooked.

Things to pack in your carry on:

When ever possible I try to avoid putting things under the plane, but sometimes it is unavoidable, depending on how long I am going away for. What you take with you on the plane can make a big difference between having a pleasant flight and being so unbelievable bored that you go mad.

I always make sure to bring a fully charged MP3 player, my MP3 player hold 20 gigs of music so I never have to go into my bag to chance a CD or a memory card, and I have way more music to listen to then time to listen to it. This way I have the music for any mood I may be in, so I just load it up and listen as I fall asleep on the plane.

Just incase I cant sleep I will also make sure to bring a book with me, if for whatever reason I can not fall asleep which does happen to me, I like to take my mind off things by getting lost in a good story, but something light and entertaining, I have always found a good Action book or even Science Fiction to be good for that.

I also recommend bringing a thick soft sweater with you on the plane, this can be used if it is cold on the plane, or you can use it as an extra pillow.

I like to play video games, so I travel with one of the new hand held video games everywhere I go, so if I am not in the mood for reading I can play some games and keep myself occupied, and that really is the key. Keep yourself busy on the plane and you will be amazed at how fast the flight goes, if you stare at the clock and focus on the planes progress it will feel like forever.

Success with Online Loans Companies

The massive growth of the internet has meant a win-win situation for both loan companies and the public. Loan companies get access to a huge nationwide market of millions and millions of potential customers; while consumers have a lot more choices. Those choices also mean a lot more competition among the online loans companies, which means the average person may well be able to get a loan at lower interest rates then if they just had local options.

The proliferation of online direct loans companies also means that people with less than stellar credit ratings (or even bad credit ratings) have a much greater chance of getting a loan. In fact since many loans for people with perfect credit are handled by their local banks, the internet has attracted many firms who specialize in offering loans to those with less than perfect credit.

Debt consolidation loans are a common type of loan offered by online loan companies. They will pay off your existing loan or credit card debts and then you pay them back – but at a lower interest rate than your old debt. It’s especially beneficial for people with credit card debt, since those interest rates are so ridiculously high.

Payday Loan Companies are also common on the internet. It’s good news if you need one, since there’s so much competition among the companies competing for your business. Just remember to always pay back a payday loan in full when you get your paycheck; since payday loan fees start to get pretty steep when you renew the loans.

Many other direct loans can be had online, such as home equity loans where you borrow money secured by your home; mortgage refinancing loans where you switch mortgages in order to take advantage of lower interest rates; car loans, and various other types of loans.

Your best bet is to visit many loans companies sites and request rates for the loan you want. Then simply do a comparison and pick one with a competitive interest ratepreferably a company you have heard of. Otherwise you can just google the company name and learn more about each company.

Hint if you search for the the word forums as well as the company name when you perform your search, you will see messages posted about the company by everyday people on internet message boards. Its a good way to get an idea of a companys reputation. This technique works for anything, actually, not just loans ! I do it every time I make a sizeable purchase, travel, etc.

In conclusion, if you take advantage of the huge marketplace provided by the internet, and compare interest rates carefully, you can get great deals with online direct loans.

How to Save on Car Insurance

Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.

1. Shop Around

Go to your favorite search engine and type in “free car insurance quotes online”. You’ll see a long list of insurance companies that you may even be familiar with. Visit at least five car insurance websites and look for a link to free quotes. You will then be asked basic information about yourself, your driving history, and your car’s make, model, and year. It just takes a couple of minutes, and shortly thereafter, they will email you a no obligation quote. Write down their website address, their toll free number, and customer service email address.

Each insurance company will ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc…

For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you’re not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.

Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.

[ ] $500 deductible

[ ] $1,000 deductible

[ ] Paying monthly, semi-annually, or annually

[ ] More than 1 car

[ ] No Accidents in 3 Years

[ ] No Moving Violations in 3 Years

[ ] Driver Training Courses

[ ] Defensive Driving Courses

[ ] Anti-Theft Devices

[ ] Low Annual Mileage

[ ] Air Bags

[ ] Anti-Lock Brakes

[ ] Daytime Running Lights

[ ] Student Drivers with Good Grades

[ ] Auto and Homeowners Coverage with the Same Company

[ ] College Students away from Home

[ ] Long-Time Customer

[ ] Other Discounts

2. Saving Insurance Premium on cars you own outright.

If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collision/comprehensive coverage. As a rule of thumb, if the cars value is less than $3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It’s pretty simple math.

Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.

3. Ask About Insurance Rates in Different Areas

Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.

4. Ask About Getting Other Insurance Policies Together With Your Auto Insurance

Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.

5. A Clean Credit History Can Reduce Car Premiums:

Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a “preferred” customer with lower risk and will be rewarded with lower premiums.

6. Low Mileage Discounts

Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.

7. Group Insurance

Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.

Using all of these tips can save you hundreds of dollars per year, especially when you have multiple cars and multiple drivers in the same household.

Online Automobile Loan Tips

The internet is a booming marketplace. Online automotive lending is an industry that has begun to boom. There are several benefits of getting an automobile loan online, but there are some tips you should follow to fully utilize those benefits.

Online Credit Score The internet is a quick and hassle free place where you can purchase goods/services and acquire useful information. Your credit score is one piece of information that is extremely easy to get online. Before searching for auto loan quotes online, be sure to acquire your credit report and credit score. If online lenders constantly request credit reports, it could lower your credit score slightly. One click of your mouse can save you headache in the future.

Loan Payment Calculator Many online automobile lenders offer car loan payment calculators. These are simple tools that allow you to plug in values such as desired loan term, payment amount, or interest rate. Then the tool tells you how much you will pay, how long you will pay, or at what interest rate you will pay your auto loan. It is in your best interest to use this car loan payment calculator when you are quoted a loan. There are dishonest lenders that will quote you one interest rate, but your payment reflects another. This calculator can prevent you from falling victim to this type of scam.

Compare quotes The internet provides a perfect venue for you to quickly and efficiently compare auto lender quotes. A useful tip for comparing is to use online sites that encourage lenders to compete for your business. This competition leads to lower interest rates and possibly shorter auto loan terms.

The internet is a great resource for individuals looking for an auto loan. If online features, such as credit scores, payment calculators, and competition sites, are used to their fullest, the borrower will always win.