Tuesday 18 November 2008

Car Insurance issues

All owners are required by law to insure vehicles driven on public roads. Some provinces and territories offer public insurance while others have insurance sold privately. Here are some basic items to consider when buying vehicle insurance:


Liability insurance is mandatory, and is used as financial protection against loss or injury caused to others while operating your vehicle. The minimum amount of insurance required differs across jurisdictions but keep in mind that skimping on liability insurance may cost you in the long run. Minimum liability will not cover the cost of an accident resulting in the injury of several people, for example, particularly in circumstances where litigation is an option.

Vehicle damage insurance, unlike liability insurance, may be optional. Damage insurance, however, is still recommended for the simple reason that damages to a vehicle will quickly add up in the event of an accident where you are at fault. Not being able to recover any money will have serious ramifications on your bank account.

Some dealers or credit grantors may require that you take out other insurance such as life and/or disability insurance prior to agreeing to do business with you. Make sure that you fully read and understand any agreements that you are asked to sign and that you get a copy of the completed and signed agreement. Do not sign an agreement unless it is completed in full.
You should also do some comparison shopping on insurance prices and coverage prior to signing any agreement. Here are some items to consider in keeping your insurance rates to a minimum:


Accidents can increase your insurance costs, especially when you are at fault. Though it's easier said than done, staying out of accidents will save you money in more ways than one.

Statistics show that some vehicles are more likely than others to be involved in an accident. Insurance companies are aware of this and therefore charge more to insure high-risk vehicles. The make and model of the vehicle, its colour, and whether it's a two-door or four-door are all factors considered by your insurance company. Some cars are also more expensive to repair or are frequently pursued by thieves. Consider how important owning a high-profile vehicle is to you. Contact the Vehicle Information Centre of Canada (www.vicc.com) to find out which vehicles will cost you more to insure.

Where you live may affect what you pay for automobile insurance. Driving to work everyday, especially if it's a long commute, does not only mean extra gas and wear and tear on your vehicle but also the possibility of a higher insurance premium. Urban residents may have higher premiums than those living in rural areas.

Insurance companies reward those who are of low risk to them. Discounts might be offered for driver education, multiple vehicles, high academic achievement, anti-theft devices or abstinence from alcohol, among others. Have your insurance broker inquire about any of these types of discounts.
Sometimes it doesn't pay to be carrying collision or comprehensive insurance on an older vehicle if the total amount you are paying for the deductible plus the monthly premium is more then the entire worth of your vehicle.

Watch those Speeding Tickets

Have you noticed more autos on the side of the road with an officer issuing the driver a speeding ticket? Have you seen more trucks surrounded by DOT transport police? I sure have. There are several reasons for this increased activity.

One is that after 9/11 many departments have increased patrols. The additional police presence is to assure the public that efforts are being taken to prevent terrorist attacks like the recent sniper killings. The other reason is that cities and states are faced with budget deficits in these tough economic times. Since traffic tickets are a politically correct form of taxation, many jurisdictions are increasing fines as a means of balancing the books.

A traffic officer will cost his department the average of $75,000 per year while he can be expected to issue between $150,000 to $200,000 in speeding ticket citations. There are few businesses that can equal that rate of return. Some towns like New Rome, Ohio and Waldo, Florida take in over 70% of their entire town budget through speeding tickets.

What does this mean to you, the safe driver who has not received a traffic citation in years? It means that you are now more likely than ever to see those dreaded blue lights flashing in your rear view. If that does happen you need to know that the true cost of a speeding ticket has changed drastically in the last few years.

Consider Mary, a successful sales representative who enjoys the perk of a company car. She travels extensively and has received four speeding tickets in the last three years. She considers herself a safe driver and in each instance was traveling with the flow of traffic on the interstate. She has 9 out of the 12 points on her driver’s license. Imagine her surprise when her company’s insurance carrier refused to allow Mary to drive a company car. The company obtained supplemental insurance but Mary had to pay the extra $1600.

Then there is Jeffrey, a CDL truck driver from Ohio who is an independent operator and owns his own truck. He drives 150,000 miles per year and has five tickets on his record, none a serious violation. He is unable to obtain insurance that he can afford. He is in the process of losing his truck to the finance company and does not know how he will support his family.

Families with teenagers may face an economic disaster if the teen driver receives a citation. One traffic ticket for rolling through a stop sign could cost as much as $3000 in increased premiums over the three years it remains on their record. The insurance industry considers young adults as teenagers until the age of 23.

The purpose of relating Mary and Jeffrey’s stories is not for you to feel sorry for them. It is to impress upon you the severe consequences that may result from a traffic ticket. It is important to obey all traffic laws, not just for your physical protection but also for the health of your pocketbook. I have found that many people are more concerned about their pocketbook than their personal safety.

Tuesday 4 November 2008

Repairs and caring for your wallet

Unless you're a mechanic, taking your car into the repair shop can be a scary and mysterious experience. Your car goes behind the doors and minutes later, you're presented with a list of problems, and possibly a large bill. Even if you aren't a car expert, there are things you can look out for to make sure your car repair is honest and necessary.

Brakes are a common area where repair estimates can be inflated. Calipers are the devices that push the brake pads against the disc. They can last up to 100,000 miles; so if the mechanic says they need replacing, ask if you can see how they aren't working properly or where the brake pads are wearing.

An oil change is a fairly simple task, but it can sometimes end up costing you more than you intended. This is because there can be hidden fees, such as disposal fees, extra services included, or extra parts, such as new air filters or wiper blades, added on. Make sure you know what's included in the price of your oil change. Mechanics typically recommend an oil change every 3,000 miles, but many car manufacturers recommend only twice a year or every 7,000 miles. Somewhere in the middle may work for you.

Surprisingly, if your battery is weak or dead, it may not be the battery. Instead of automatically purchasing a new battery, it may be cheaper in the long run to have a reputable mechanic run an alternator and voltage regulator test. This will tell if your car's electrical charge system is working. If there's a problem, it may cost a few hundred dollars to fix, but it will save you hundreds in constantly buying new batteries while the problem goes unchecked.

When you go in for a new muffler, you may also be told you need new exhaust pipes, tail pipes, even a new catalytic converter. Make sure the mechanic shows you the damages on your pipes before paying out. Federal law requires cars built before 1995 to have catalytic converter warranties of five years or 50,000 miles. Cars built after 1995 have warranties of eight years or 80,000. If you're satisfied the work needs to be done, get the estimate and shop around for the best price.

The old standby, the tune-up, is an old-fashioned term these days. Yesterday's tune-ups included carburetor and ignition system adjustments. Today's computerized systems take car of that for you. All you may really need checked are the spark plugs, which should last about 30,000 and cost around £20 to replace. If your car is running rough and you've noticed your fuel efficiency is down, explain the specific problem to your mechanic rather than just asking for a "tune-up."

Getting bodywork done can be extremely expensive - especially if the repair shop puts on used parts and charges you for new. You could also be charged for replacement parts when your old parts were simply repaired. If you suspect this might be done, tell the mechanic you'd like to see your old parts and the packaging and documentation that comes with new parts.

The most important thing to remember is to find a reputable mechanic that you can trust and don't be afraid to ask questions. It's your car and your checkbook, and you have a right to protect them both.

An easy routine for car maintenance

Autumn is already here and in a short time, winter will be upon us. As you gear up for the colder temperatures, now is a good time to take preventive measures to care for your vehicle.

Maintain Your Car's Value and Appearance

Regular professional washing and waxing will help maintain your car's appearance as well as its value.

Most car owners understand the value of changing motor oil regularly to protect the engine. But if they forget and instead choose to replace the engine, the car could still be as good as new. However, a car with oxidized paint and a rusted-out body can never be economically restored. The best prevention is regular washing and waxing at a professional car wash.

With more than 22,000 professional car washes around the world offering a wide range of services to protect a car's finish from detoriating rusting, there's no excuse not to keep your vehicle in great shape. Car washes offer basic to extensive operations to suit all your car care needs.

For starters, try an exterior tunnel wash to automatically provide protective waxes and undercarriage treatment. Also, consider detailing or custom polishing for more extensive protection. By applying and buffing a premium polish, you can restore the shine of your car. On the detail side, you can vacuum everything from the rugs in the trunk to the air conditioner vents.

A Quick Fix

If you are running short on time but need your car professionally cleaned, try a self-service car wash that provides a variety of effective, self-cleaning services to choose from. For best results, follow the step-by-step instructions posted in the self-serve bay that call for starting with a pre-soak to loosen road grime. Next comes the high-pressure soap wash. For gentle scrubbing, use the foaming brush next, followed by the fresh water rinse. Also, remember to take advantage of special tire and wheel cleaners. For maximum protection and shine, the wax application is a must. Finally, many self-serve washes offer a spot-free rinse. All the solutions are specially formulated to clean tough road dirt and protect you car's shine.

Protect Your Car from Winter's Hazards

To get a jumpstart on protecting your car from winter's effects, remember that the most damaging thing you can do to your car during this time is nothing! Don't worry about your car freezing -- washing salt, slush and mud off your car in cold weather is vital.

The best thing you can do this winter is to wash your vehicle frequently at a professional car wash, even every few days if the temperature rises and falls from freezing and you've been driving on salted roads. Washing also should include an undercarriage rinse (available at most professional car washes) to remove salt from hard-to-reach areas that are likely to rust, such as the bumpers and in the wheel wells.

Now is the time to get your car in gear for the winter season with the preventive maintenance measure of having your car professionally washed -- you and your wallet will be glad you did.

Sunday 2 November 2008

Caring for that high mileage car

Americans are keeping their vehicles longer and driving farther than ever before. Today, the average age of vehicles on the road is greater than nine years and more than 68 percent of vehicles have more than 75,000 miles.

As a vehicle's engine ages, its performance decreases and oil starts to break down at a faster rate. Over time, seals begin to deteriorate, gaskets become brittle and oil consumption increases -- all leading to a reduction in engine performance.

Treating your high-mileage vehicle with a little TLC and consistently following the 10 rules for high-mileage vehicle maintenance will help ensure it will go the distance. Using premium motor oil specially formulated for higher-mileage cars -- such as Castrol GTX High Mileage Formulation --will also help a higher-mileage car feel young again.

Rule #1 -- Make sure you change your oil every three months or 3,000 miles -- whichever comes first. No exceptions. Think of your engine as the heart of your car and motor oil as the lifeblood of the engine. One can't function without the other, so stay on top of your oil-change schedule.

Rule #2 -- Find a good mechanic. If you don't do your own maintenance, find a shop staffed by ASE-certified mechanics (that's the National Institute for Automotive Service Excellence). A good mechanic will listen to your questions and explain procedures clearly.

Rule #3 -- Have your tire pressure checked at least once a month. It's the best way to prevent unexpected flats. A service station attendant can quickly and easily perform the check. Also make sure to rotate your tires and check their alignment as part of a regular tune-up (or with every other oil change).

Rule #4 -- Pay attention to warning signs. Of course, not every little thump or ping you hear spells disaster. Cars, like people, have their peculiarities, and you are sure to quickly learn what is normal for yours. With a high-mileage vehicle, however, it's best to check out any symptom --- be it a sound, smell or feeling -- that seems the slightest bit abnormal. Remember: an ounce of prevention is worth a pound of cure.

Rule #5 -- Pay attention to outward signs. If your car is leaking fluids, it can mean serious trouble. Keep an eye on the conditions of your driveway or regular parking space for stains or spots that can warn you of possible leaks. Castrol's GTX High Mileage Formulation motor oil contains special conditioners that help protect and maintain seals, thereby helping to reduce leakage -- a common problem in older, higher-mileage engines.

Rule #6 -- Schedule regular tune-ups. Even if your high-mileage car seems fine, that's no guarantee it is. Use tune-ups to ensure your car's major components are running smoothly and that they stay that way. Your oil should be changed, tires checked and rotated if necessary, belts checked and replaced, brake lines inspected, spark plugs and air filter checked and replaced, and fuel injector checked. A good way to top off a tune-up is an overall analysis of your car's engine, and undercar, safety and computer systems.

Rule #7 -- Prepare your car for the seasons. If you live in a sunny climate all year round, you can skip this step. For the rest of us, visit the "Ask the Expert" feature for a checklist of seasonal maintenance practices for your high-mileage vehicle. Preparing your high-mileage car to defend against the elements will lessen its chances of needing repairs and save you money in the long run.

Rule #8 -- Check your fluids regularly. It's dangerous for your high-mileage car to get dehydrated, so be sure to keep an eye on its vital fluids. Simply lift the hood and perform a quick visual check. Use the dipstick to check the oil level; a quick glance at the coolant reservoir will let you know if you need more cooling fluid.

Rule #9 -- Store it properly. Storing your vehicle in a dry, temperate location when it is not in use will prevent disastrous wear and tear on both its interior and exterior. Garage your car whenever possible to protect its looks.

Rule #10 -- Stay on top of safety features. Nothing is more important than your car's ability to protect both you and your passengers. Air bags, antilock breaks and any other additional safety features that you may have added to your car should be carefully checked on a regular basis (when your car has a tune-up) to ensure that in the event of an accident, they will perform their vital, lifesaving functions.

Car Accidents, Some Facts

Accidents, personal injuries and insurance claims are here to stay. No matter how far into the 21st Century American’s elect to drive (unless by the beginning of the 22nd Century we’re all zipping around in our own personal space ship) motor vehicle accidents will continue to pile up; with no end in sight!


There are more than 200,000,000 licensed drivers in the United States. (As of 2008 we’re close to a yearly 7 million motor vehicle accidents, involving well over 3.5 million injuries).

Car accident crashes cost society an estimated $4,900 per second. That’s about $25,000 in the time it took to read this fact.

Current records show that most American driver’s will have a near motor vehicle accident 1 to 3 times per month and will be in a collision of some type on the average of every 5 to 8 years plus these records also indicate that licensed teenagers are 22 more times likely to get a speeding ticket than those who are 65 years of age or older.

In 1896 there were only four cars registered in all the United States. Two of them collided with each other in St. Louis.

By the year 2025 there will be 33 million people 70 years or older in America. This segment of the population will be growing 2.5 as fast as the total population. They will make up the largest percentage of the “turning left” and “rear end” accidents. Slowly but surely Senior Citizens have developed a higher accident ratio than teenagers. (This will, in time, seriously impact the typical Senior Citizen’s pocketbook). And also, by 2025, the total costs for motor vehicle accidents in the United States will exceed 450 billion dollars.

The world’s most solitary tree is located at an oasis in the Tenere Desert in Central Africa. There’s not one other standing tree within 31 miles. In 1960, it was smashed into by a truck.

Up-to-date statistics clearly reflect that 1 out of every 5 Americans are involved in an alcohol-related car crash at some time in their lives and the day in which motor vehicle accident injuries occur most often is Saturday. Sunday is second.
FIVE CRUCIAL MEDICAL DEVELOPMENTS THAT HAVE SLOWLY BUT SURELY COME TO PASS. THESE WILL SERIOUSLY (AND FOREVER) IMPACT THE VALUE OF PERSONAL INJURY CLAIMS IN THE YEARS TO COME:


Records prove that a motor vehicle accident of as little speed as 5 MPH can produce a “whiplash-type” injury.

The symptoms arising from an injury sustained in a motor vehicle accident do not necessarily present themselves immediately following an accident.

Medical research and clinical experience have accumulated enough information to demonstrate that the delay of an injury symptom is the norm.

Studies have established that the delay of a symptom does not eliminate the possibility of severe injury.

It’s been proven that individuals can continue to be symptomatic for many months (even years!) after a motor vehicle accident. In addition approximately 75% of them remain symptomatic for a minimum of 6 months after the accident. (And current up-to-date statistics reveal that between the first and second year after an accident has occurred over 20% of those injured actually have their symptoms worsen).

Buying That Car Privately

Many people buy cars privately rather than through dealers. You can often save money going this route, however, keep in mind that if you have problems with the vehicle it may be difficult, if not impossible, to get any assistance or compensation from the vendor. Here are some more tips on how to get the best deal when buying a used car:

It's "buyer-beware" when purchasing a used car, so, be sure to take it to your mechanic for an inspection before handing over any money. If he (or she) finds the vehicle unsafe and/or in need of repairs, determine who will pay for them beforehand and include this in your written purchase agreement.

Check for liens against the vehicle. A lien means that money is owed on the vehicle and although the vendor is in possession of the vehicle, its legal claim belongs to someone else, such as a bank. If you buy a vehicle with a lien against it, you might be held responsible for future payment. Legislation differs across jurisdictions on the consequences of buying a vehicle with a lien. It is possible that the new owner may be required to pay the money owed or alternately you may risk having the vehicle seized. Contact your provincial or territorial office of consumer affairs for information specific to your jurisdiction or to find the organization in your jurisdiction responsible for conducting lien checks.

Ensure that the person you buy the car from is its registered owner. Remember to ask for repair bills and maintenance records.

If you decide to buy a vehicle from a private seller understand that he or she could be in the business of reselling poor-quality, stolen and/or rebuilt vehicles. Some of these people, frequently referred to as "curbers" or "curbsiders," may be involved with any number of other scams, such as tampering with the odometer or selling vehicles with liens against them.

The risk of curbsider scams makes it especially important that you get the used vehicle checked by a mechanic. You may want to question a mechanic you know and trust to see if the odometer has been rolled back. They can often tell by comparing wear and tear with the odometer reading.

Remember that you don't have the right to change your mind after a sale such as this. If you have problems with the vehicle it will most likely be impossible to get any assistance or compensation from the vendor. Litigation may be your only option.

As with any large ticket purchase, there's a lot to know in order to get the deal that's right for you. The sources of information about buying cars are limitless. It can be quite frustrating, and time consuming to get what you need.

Saturday 1 November 2008

Car Purchase, some basic tips

For many Americans, a car is the second largest purchase they make. Advertisers devote millions of dollars to convince us that we deserve to own the hottest set of wheels. The same people who used to yell, "I want my MTV!" are now shouting, "I want my SUV!"

But step inside a dealership, and confident car shoppers are like deer in headlights when confronted by aggressive sales people, confusing financing decisions and a fear of buying more than they can afford.

Infinity Car finance, the Web site for many people who hate financial planning, can help sort out the financial aspects of buying and leasing cars. While you crave an SUV, you may discover that the cost of insuring it and filling its huge gas tank will blow your budget off the road.

Infinity offers the following tips to make sure you don't get caught in the headlights:

Get Your Records Straight

One of the first steps in financing a car is to get a grip on your credit rating. Unless you intend to pay with cash, you will have no secrets from the car dealership, finance company or auto insurer. A poor credit history can result in a higher interest rate or even loan disqualification. Also, bad marks on your credit could flag you as an insurance risk, translating into higher premiums.

Cut Your Premiums Down To Size

Before you buy a car, find out what it will cost to insure it. Get car insurance quotes and calculate your insurance needs on the Internet. Each has different requirements when it comes to auto insurance, and we'll leave it up to you to learn what your area requires.

To Buy Or Lease, That Is The Question

When you lease, you're paying to use a car. Your payments cover the cost of the vehicle's depreciation while you drive it, rather than its purchase price. If driving a new car is more important to your lifestyle than owning one, leasing is definitely for you. However, if you put a lot of miles on a car every year, it may end up being smarter for you to buy. Consider your personal expectations and financial situation when reviewing the pros and cons of each:

Buying Offers:


A chance to trade in that old clunker.

Ownership and equity in the car.

Control of your wheels. If you want to add eight speakers or take out the backseat, go ahead.

No penalties if you don't hold up your end of the maintenance agreement, although you will want to service your car to enhance both its service to you and your ability to sell it in the future.

No mileage limits.

Payments based on the value of the car, not its depreciation. That may mean higher monthly payments than with a lease.
Leasing Offers:


A cost-effective alternative to buying a car every few years.

An affordable way to drive a car that you may not be able to afford to buy. Monthly lease payments are generally less than financing payments.

A maintenance contract that requires you to keep the car in good shape and not make any alterations to it.

A factory warranty that almost always covers the car for your entire lease, so major maintenance isn't your financial responsibility.

Annual mileage limits (about 12,000 to 15,000) with significant penalties if you put more miles on it than the lease stipulates.

Payments that may be income tax deductible if you're leasing the car for business. Ask a tax advisor for details.

Penalties if you terminate the lease earlier than agreed. Charges vary.

Financing Is The Next Step

Whether you buy or lease, be prepared to walk away from the deal if you aren't convinced you're being offered a fair price. Do some homework before you walk in. Car salespeople are amateur psychologists who'll get inside your head if you let them, all in the name of making a buck.

"If they see you drool over a leather interior or if you don't know the Kelley Blue Book value of your trade, they've got you right where they want you.

Don't get emotionally attached to your car, salesperson or you will end up paying over the odds for that new vehicle you want.

Additional Insurance Claim Opportunities

There are quite a few insurance claim possibilities which will increase the financial amount awarded you in the settlement of your personal injury insurance claim. Some of them rarely see the light of day but some do. The six I’ve listed below are crucial for you to be aware of as you prepare to go to war with Adjuster Henry Hard-Nose regarding the value of your loss. They are:

(1) When it comes to placing a financial value on the “Emotional Reaction” of an injury one enters into an area where most individuals, even experienced claims adjuster’s and Legal people, are at a loss.

Often ignored “Characteristic Symptoms” can be: Confusion, Anxiety, Depression and Denial. (“Denial”, that is, regarding the seriousness of your injury and the constant pain you feel. This usually comes to pass when one refuses to complain anything is seriously wrong, convincing themselves it will work itself out).

If any of the emotional reactions (which are a direct result of “Characteristic Symptoms“) becomes a reality it would be wise for you to see a Doctor. Maybe you won’t immediately identify this as something you need to have checked out but the person you climb into bed with probably will. When she tells you you‘re not functioning (between your ears) all that well, listen up! If that’s what you’re told you should swallow hard and obtain an expert’s opinion. You may consider yourself a muscular "Power To Be Reckoned With" but you’re not Superman so, talk to a specialist, explain what’s happening, and let it all hang out.

Once you’ve been discharged, get that specialist’s written Medical Report and hand it to Hard-Nose, along with the medical bills for your treatment. Is that legit? The answer is absolutely, yes! Can he refuse to accept them and suggest they add no value to your claim? The answer is absolutely, no!

(2) Emotional distress is legitimate "Pain and Suffering" and you should be compensated for it. For example, problems that may develop over the effects of an accident within the area of your work or business, or perhaps interfere with your sex life! Whatever it is that’s causing you problems you should see a specialist. Keep going back to see him for as long as it takes to return to normal. At the end of his treatment, when he's finally discharged you, ask for and obtain his written report. Present that to Adjuster Henry Hard-Nose along with the specialist’s bill for their services.

This is a legitimate expense and it positively gives your personal injury more value !

(3) If your injuries caused you to miss some special training you had arranged to take advantage of, you'll probably, at some point, want to make that time up. The difficulty you may experience in making up that missed time (or perhaps never again being able to obtain it) has the potential to increase the value of your settlement. To achieve this you must obtain written proof and present it to Adjuster Hard-Nose.

Also to be taken into consideration is a vacation you may have been unable to take, or some recreational event’s in which you could not participate in and/or a missed special event, like a wedding or a reunion, etc. All of these, properly documented, add value to your claim because they are specific examples of the inconvenience and discomfort you've endured as a direct result of your injury.

(4) In the evaluation of an individuals "Pain and Suffering", age is always a factor because the older you are the longer the periods of Total or Partial Disability will be. This will affect the course of treatment plus the length of time of the "pain killers" you’ve been ordered to take. For example: Over age 50 disability is about 10% to 15% longer, over age 60 disability is about 20% to 30% longer, over 70 disability can be 35% to 45% longer and over 75 disability can often be 50% and longer.

(5) Also pre-existing conditions are factor’s that must be considered: For example: Arthritis, Sugar Diabetes, Pervious Injuries and/or Previous Operations that have left you with on-going problems, etc.

Whatever that pre-existing situation may be you should look to your attending physician for advice. Don't avoid discussing this with him. If any doubt exists you should insist your doctor refer you to a specialist for consultation. If your physician is legit he'll agree. If he doesn't than kiss that goodie-two-shoes "goodbye" and go dig up a specialist on your own. It's your body and there's only one to a customer!

(6) ONE THING YOU SHOULD NEVER FORGET IS THAT THE VISIBLE DAMAGES TO YOUR MOTOR VEHICLE CAN VERY OFTEN PROFOUNDLY AFFECT THE AMOUNT OF MONEY YOU'RE EVENTUALLY PAID.

If your vehicle was badly smashed, that goes a long way proving that your injuries were severe and therefore painful. You must snap photographs of your motor vehicle. Shoot a couple rolls of colored and also black and white (black and white because in some instances colored photographs cannot be entered as evidence in a court of law).Take them from different angles and various distances. Like for example, 30 feet away, then 15, then right up close.

Make two sets. One for you and one for Hard-Nose. Blow them up into glossies and present them to him. Both the size of your repair bill and those photographs will go a long way towards proving two important points: First, that you know what you're doing and second, that the injuries you received from that god-awful impact (and the long period of pain, suffering and discomfort you‘ve had to deal with) - - if and when viewed by a judge or jury - - are proof positive of what your injury caused your body to endure.

Friday 31 October 2008

Choose your colour the feng shui way!

With Novembers arrival comes the annual car buying season. But while selecting the type of car comes easily to most people, making a decision on the color of a car can be a stumbling block. Some people simply go with their favorite color, while others mull over color choices by considering factors such as climate, type of vehicle use, or the most practical choice, going with what is least likely to show dirt. But what if even that fails? Then try feng shui. Yes, feng shui, the Chinese guide used for arranging homes and offices, can also be used for selecting colors based on an individual’s own personal feng shui.

According to personal feng shui, each person has an individual feng shui number that is based on gender and date of birth. This number, also called a “kua” number is associated with a color. By selecting the correct color for an individual’s particular feng shui number, the driver will experience better luck over all because the color is harmonized with that individual.

Use personal feng shui to select a “success” color, which can be helpful when buying that luxury sedan. More into soccer practice than boardrooms? Choose a “family” color. Both colors are determined by the driver’s kua number. To determine the driver’s kua number, and subsequently the color of car that is appropriate, use the instructions below and then check the chart that follow for selecting a success or family color. Now, who should drive the Mary Kay pink Cadillacs? Anyone with a number 3 kua number!

The calculation is as follows:

-Take the year of birth, i.e., 1971
-Add the last two years together (7+1=8)
For men, subtract the number from 10 (10-8+2); 2 is the kua number
For women, add 5 to the number (5+8=13; 1+3= 4); 4 is the kua number
For years such as 1982 which have a double digit, be sure to reduce to one number
8+2=10 (1+0=1)
10-1=9 (Kua for men)
5+1=6 (Kua for women)

Kua Number

1
Money/Success Colors: Green, Purple
Family Colors: Red, Purple, Burgundy

2
Money/Success Colors: Yellow, Brown, Beige
Family Colors: Silver, Gold, White, Pearl

3
Money/Success Colors: Red, Pink, Burgundy
Family Color: Green

4
Money/Success Colors: Blue, Black, Purple
Family Colors: Dark Green, Brown

5
Money/Success Colors: Yellow, Brown, Beige
Family Colors:Gray, Silver, Gold, White

6
Money/Success Colors: Gray, Silver, White
Family Colors: Yellow, Brown, Beige

7
Money/Success Colors: Gold, Silver, White/Pearl
Family Colors: Yellow, Brown, Beige

8
Money/Success Colors: Yellow, Brown, Beige
Family Colors: Gold, Silver, Gray, White

9
Money/Success Colors: Color Dark Green, Brown
Family Colors: Blue, Black, Purple

Making That Offer

Before you make an offer you need to find a dealer with the car you want. You have three options in doing this.

Drive around all day and night searching for a dealer who has the car you want.
Spend countless hours online finding local dealers who have websites. And THEN spend more time digging through their websites to find your new car.
Fill out a request form online and have a dealer contact you if he or she has the car you are looking for. This option alone can save you hours of your valuable time.
So you know what you want, you know what it costs, and you where to find it, so how do you go about getting it? First and foremost is getting into a negotiating frame of mind. Always remember you can walk out at anytime and leave your offer on the table. Dealers want you to buy right then and there. They play on your impulses and try to rush you into a deal. Don't play their game; it's not the end of the world if you don't buy right then and there.

Before leaving the house: When you go to the dealer have all your research documents with you incase you have to review anything. It's always nice to have supporting information when you are trying to get the lowest price.

While at the dealer: Be calm and pleasant, treat the salesperson with respect. He is a working stiff just like you. You will get nowhere being arrogant because you know the true invoice pricing or other details about the dealers pricing.

Making the offer: Explain to the salesman that you have researched the dealer's invoice price and any incentives they get from selling the car and you have calculated the price you are willing to pay. How much over invoice should you offer? 4% - 6% has been a good number. I would offer 4% over invoice if you trust the dealerships service department and plan on getting your car serviced there. Why offer them less if you like their service? Well they will end up making more money on your in the end by servicing your car. Make sure you mention this to the salesman; it's a good bargaining chip.

What next? Wait......... if they do not take the deal, politely leave your name and phone number and go home. Better yet go to another dealer and see if they are willing to take your offer. Remember you can always go back and they can always call you when they realize you will not be buying on impulse and really mean business. You have spent hours researching, why throw that away buy getting nervous and signing a deal you do not feel is fair.

Finishing the deal

Congratulations !!!! You got the deal you were looking for. Now is the perfect time to mention to the dealer that you are looking to trade in that car you are currently driving. This way they cannot jack up the new car costs and offer you more for your car to make it seem like a better deal. If your trade-in is in good shape you should be looking for a price somewhere between retail and wholesale. If your car is spotless make sure the dealer knows he will not have to recondition it. Most research sites list trade-in value in the pricing reports, this is a good starting point. If your trade-in is less than perfect don't expect more than wholesale price. The dealers will take clunkers but they end up on the auction block the next week.

Once all the numbers are crunched and the papers are filled out double check everything before you sign. Also look out for extras, which you do not need. Rust proofing is rarely needed as most manufacturers already offer a rust warranty. Also window etching, extended warranties and accent packages are highly overpriced and sometimes useless.

Now would also be a good time to inspect the vehicle one last time. Check for paint blemishes, how much gas is in the car (some dealers will actually empty the tank leaving you just enough gas to get to the closest station) and that it is the exact model you test drove.

Now sign the papers and drive home in your new car. Pat yourself on the back for a job well done.

After buying the car..

Enjoy your car... that's simple huh? Well it's not really that simple. Here is a list of things to think about after the sale.


Notify your insurance agent about the new car.

Read the entire owners manual. Familiarize yourself with the service requirements. Understand when you need to change oil, filters, and other major things like timing belt and driveline fluids.

Get used to operating the heating/AC controls and the radio so you do not have to fumble around and risk an accident while on the highway.

Pop the hood and find the oil filler cap, the oil dipstick. If you bought a car with an automotive transmission there will be a dipstick for the transmission fluid also.

Find the spare tire and jack. Make sure you know where to jack the car when changing a tire and how to remove the spare when you need it. There is nothing worse than getting a flat tire in a new car and having to struggle to change it the first time.

Accessorize! It's your car and it should make a statement about you. There are plenty of aftermarket items to make your new car unique like yourself. Wheels, bug guards, window visors and more are all available at part houses like CarParts.com

Thursday 30 October 2008

Remember This when Buying the car

Buying a new car is the second most expensive thing most consumers buy. Next to houses of course. That is why it is important to know all the tips on making car buying easy and less stressful. Think about the car model and features you will want. Also think about how much you are willing to spend and STICK TO IT. Car salesmen are almost always paid on commission which means all they want is your purchase. Also, don’t be hasty or feel rushed into making a decision. If you are not sure about something, come back later.

Check books and magazines at the library or surf the internet for useful information on prices and features for the car you want before showing up at the dealer. That way you feel you know just as much about the kind of car you want as the salesman does. Shop around – Never go with an impulse buy. Go to a few different dealers and talk to a car-buying service and a broker-buying service to make comparisons.

Plan on negotiating the price. Dealers may be willing to bargain on their profit margin. This is the difference between the MSRP (Manufacturers Suggested Retail Price) and the invoice price. This also affects your monthly payments. Negotiating the price can save you big money.

You may even want to consider ordering the car that you want. This may cause delays, but if the car with the features you want is not on the lot, this may be your best option. Remember this is a big purchase and one that will probably need to last you for a while. Inversely however you may get a better deal from the dealership if you buy a car from their inventory. Just because they want to get rid of them.

If you are trading in your old car for a new one. Negotiate the price of the new one before letting them know about the old one. Once they know you want to trade-in, they know you have that much more money to spend and they will use that against you. Check the internet or the library for information on the value of your old car. Just to give you a ballpark idea. Remember that if you can, you should try to sell your car yourself. You will get much more money for it that way.

Bike Finance and Depreciation

With the depreciation on motorcycles being so enormous after they are driven off the showroom floor, the potential for a buyer owing more on their motorcycle loan than the bike is worth it quite high. Owing more on your bike than it is worth is often referred to as the world of “up side down”.

Many people finding themselves in this situation discover that financial lessons are sometimes the hardest and most expensive to learn. Motorcycle loans of more than 48 months (especially without a down payment) put you in the position of owing more than the value of the bike.

Let’s take a look at this phenomenon.

First, the interest calculation your lender uses can make a big difference in your situation, especially in the first 18 months. There are two primary interest calculations, pre-computed (combined with rule of 78) and simple interest.

Pre-computed interest combined with Rule of 78, is typically the worst situation for a buyer because most of the interest is paid in the first 24 months. Therefore, in the first 24 months little of the monthly payment has gone towards paying down principal. If a buyer wishes to sell or trade in the motorcycle within this timeframe they will likely find themselves owing more than the bike is worth. Statistics show that the average owner trades in every 18-24 months.

Simple interest on the other hand, is much more favorable for buyers since interest accrues on the balance of the loan. However, buyers that extend their loans for greater than 48 months can still find themselves up side down with simple interest. This is especially true if a down payment is not made. The reason this occurs is that the motorcycle depreciates faster than the principal is paid; leaving the balance owed to the lender to be more than the bike can be sold for.

A common view that many people have is that they will just surrender their motorcycle to the lender if they are caught in an “up side down” position. If you are considering this option don’t! Your worries do not just end after your bike is surrendered or repossessed; in fact they are just beginning. The lender will sell your bike at an auction for much less than it is worth. You will still owe the difference between the amount you owed on your loan and the amount the motorcycle sold for at auction. So if you owe $5000 and the bike sells for $1500, you still are responsible for owing the lender $3500. To make it worse lenders may tack on hefty auction fees which you will owe as well. So the net result is that you are now responsible for making monthly payments on a bike you can no longer ride.

So what steps can you take to prevent from being caught “up side down”?

1. Find a lender that uses simple interest. Avoid lenders that use pre-computed / Rule of 78 interest calculations.

2. Always try to put money down on your purchase.

3. Try to avoid motorcycle loans that extend past 36 months.

Monday 6 October 2008

Making The Figures Add Up

I got asked a question today about the sub prime motor and thought I would share it here.
The question was along the lines of "How can the finance company know who is going to pay and who isnt going to pay"

Well this is quite interesting because, we don't. What we do know, using our existing data is that if we lend to 100 customers aproximately 20 will not pay. So this raises an interesting question about pricing and rate for risk etc.

In the old days there would be a model for offering a "rate for risk" plan. Oh yes, the concept sounds good - get the people who are higher risk to pay more, however, it is totally flawed. This is because, you only make money if people pay you back (end of). If the higher risk customers dont pay, it makes no difference what "rate for risk" price you made. The other thing is that the customers more likely to pay will be less likely to take the higher rate, therefore making the overall "rate for risk" top heavy with desperate customers who have no intention to pay.

So, then how does it work in practice? Well, in essence its very straight forward. Remember the 80 will pay and the 20 will not?, well the 80 who pay, have to provide enough profit to make up the shortfall from the 20 that dont pay, hence the rates being higher in sub prime lending. Sure you will get some return on repossessions of vehicles of those 20 non payers, however, the cost of collecting on those accounts, sale costs and legal action etc. will swallow much of this up.

Therefore I would ask that for those righteous people who believe that these customers are getting "ripped off" think about it a little more. Heres an analogy, if your wanting to grow 100 tomato plants, you dont plant 100 seeds - you know that some wont make it, so you compensate for that.

i hope this makes things a little more easier to understand

Thursday 2 October 2008

Sub Prime credit crises in a nutshell



High-Risk Customer: Gee, I’d like to buy a house, but I haven’t saved any money for a down payment and I don’t think I can afford the monthly payments. Can you help me? Mortgage Broker: Sure! Since the value of your house will always go up, we don’t need down payments anymore!
________________________________________


Mortgage Broker: And we can give you a really, really low interest rate for a few years. We’ll raise it later, okay?
High-Risk Customer: Sure. Ummm…there’s one other thing — my employer is a real prick and might not verify my employment. Would that be a problem?
Mortgage Broker: Nope — we can get you a special “Liar’s Loan” and you can verify your own employment and income!
________________________________________


High-Risk Customer: You guys are awesome! You’re really willing to work with guys like me.
Mortgage Broker: Well, we don’t actually lend you the money. A bank will do that. So we don’t really care if you repay the loan. We still get our commission.
High-Risk Customer: Wow! Let’s get started!
________________________________________
A Few Weeks Later, at the Bank…


Banker: I’d better get rid of these crappy mortgage loans. They’re starting to stink up my office. Thankfully, the really smart guys in New York will buy them and perform their financial magic! I’ll call them right away!
________________________________________
Let’s See What the Smart Guys are Doing…


Investment Banker Boss: Phew! We’d better get rid of these shitty mortgages before they start attracting flies.
Investment Banker Underling: But who would buy this crap, boss?
________________________________________


Investment Banker Boss: I’ve got it! First we’ll create a new security and use these crappy mortgages as collateral. We’ll call it a CDO (or maybe a CMO). We can sell that CDO to investors and promise to pay them back as soon as the mortgages are paid off.
________________________________________

Investment Banker Underling: But crap is crap, isn’t it, boss? I don’t get it.
________________________________________

Investment Banker Boss: Sure! Individually, these are pretty crappy loans, but if we pool them together, only some of them will go bad — certainly not all of them. And since housing prices always go up, we really have very little to worry about.
Investment Banker Underling: I still don’t get it.
________________________________________


Investment Banker Boss: The new CDO will work like this: it’ll be made up of three slices or tranches and we’ll call them:
• The Good
• The Not-So-Good
• The Ugly
________________________________________

Investment Banker Boss: If some of the mortgages fail, as surely some might, we’ll promise to pay investors holding the “Good” tranche first. We’ll pay the “Not-So-Good” investors second, and the “Ugly” investors last.
________________________________________

Investment Banker Underling: I’m starting to get it. And because the “Good” investors have the least risk, we’ll pay them a lower interest rate than the other guys, right? The “Not-So-Goods” will get a better interest rate and the “Ugly” guys will get a nice fat interest rate.
________________________________________

Investment Banker Boss: Exactly. But wait — it gets better. We’ll buy bond insurance for the “Good” tranche. If we do that, the rating agencies will give it a really good rating, in the AAA to A range. They’ll likely give the “Not-So-Good” tranche a BBB to B rating. We won’t even bother asking them to rate the “Ugly” tranche.
________________________________________

Investment Banker Underling: So you’ve managed to create AAA and BBB securities out of a pile of stinky, risky mortgage loans. Boss, you’re a genius!
Investment Banker Boss: Yes, I know.
Investment Banker Underling: Okay, now who are we going to sell the three tranches to?
________________________________________

Investment Banker Boss: The assholes at the SEC won’t let us sell this stuff to widows and orphans, so we’ll sell them to our sophisticated institutional clients.
Investment Banker Underling: Like who?
Investment Banker Boss: Like insurance companies, banks, small towns in Norway, school boards in Kansas — anyone looking for a high-quality, safe investment.
________________________________________

Investment Banker Underling: But surely nobody would buy the “Ugly” tranche, would they?
Investment Banker Boss: Of course not — nobody’s that stupid! We’ll keep that piece and pay ourselves a handsome interest rate.
________________________________________

Investment Banker Underling: This is all great, but since we’re only using the smelly mortgages as collateral on an entirely new security, we haven’t really gotten rid of them. Don’t we have to show them on our balance sheet?
Investment Banker Boss: No, of course not! The guys who write the accounting rules allow us to set up a shell company in the Cayman Islands to take ownership of the mortgages. The crap goes on their balance sheet, not ours. The fancy name for this is “Special Purpose Vehicle”, or SPV.
________________________________________

Investment Banker Underling: That’s great, but why would they let us do that? Aren’t we just moving our own crap around?
Investment Banker Boss: Sure, but we’ve convinced them that it’s vitally important to the health of the U.S. financial system that investors not know about these complex transactions and what’s behind them.

Wednesday 20 August 2008

Financing Your Van

Every small business or owner-operator has thought about the benefits that a commercial sized van might offer their business. The increased storage and passenger capacity, as well as the professional look and feel that it lends to your operation can be a great boost not only to your ego, but to your business as well. Having a business vehicle available can be a tax write-off in several different ways, and be an investment that your company sees use out of for many years. It can be difficult deciding how to buy or finance a van, but that doesn't mean it's impossible. There's a lot of resources and professional advice out there to help you find the way that's best for you, and hopefully you'll keep some of these tips in mind along your way.

The most important thing to remember is to shop around! Even if you have poor credit, there's no reason that you have to accept the first van finance deal you are offered. Ask questions and learn the terms of the financing carefully, and entertain several offers before you make your final decision. You should never make a financing decision based on only one company, keep taking offers until you find a finance company that's right for you.

You could also use a lease to finance your van. Depending on the mileage and use of the van, it could be possible to save a lot of money by leasing rather than purchasing. And the best part is that you will be able to get a new vehicle every 3-5 years. For leasing, the most important consideration is the insurance costs, and how much you will be driving your vehicle, to make sure that the lease offers you enough mileage to get the best deal for your money.

Whether you're leasing or buying a vehicle, there are plenty of van finance options out there. If you do your research, know what you want, and choose carefully, there's no reason your business can't enjoy all the benefits of a van for years to come.

Tuesday 19 August 2008

Bike Finance: Easier than ever

Buying a motorbike can very much seem like an attractive option these days. Gas prices are higher than ever and show no signs of returning to the previously rock-bottom prices we once enjoyed for fuel. For more and more consumers, fuel economy is becoming a driving factor when they're making their decisions about what kind of vehicle to buy, sell, or lease. Motorbikes are notoriously popular right now for their excellent gas mileage and their lower prices as compared to cars. But even with that lowered price, many people are worried about how they might finance their bike. As you'll see by the time you're done reading this article though, bike finance is easier than ever.

There are many different types of loans on motorbikes, depending on the financial situation of the borrower. Even if your credit is not the best, there are many companies who specialize in sub-prime lending that will take on your loan for you. In fact, many dealers now have their own loan departments to help out buyers who have less than perfect credit, recognizing that this is a large sector of the market they can deal with. The most important advice when taking on a new loan, is to pay close attention to your interest rate. By shopping around and getting the best possible rate, you can save yourself hundreds or thousands of dollars over the life of the loan. The excellent thing about a motorbike, is because of the relatively low price compared to an automobile, you might be able to make the loan for a much shorter term, saving on interest fees and still not having a monthly payment much higher than you would have gotten on a car!

Whether you're buying one for the gas mileage and a commute, or you're just wanting that fun street bike that you've always promised yourself that you would get one day, there's a bike finance program out there for you. Even though it can seem intimidating at first, there are plenty of great places to get resources and information on financing your bike, and before you know it you'll be out on the open road.

Friday 15 August 2008

Car financing on bad credit

There's an often cited conventional wisdom that buying a car can sometimes be more difficult than buying a house. Securing financing for a new automobile can be a confusing and frustrating process for the average consumer, especially at a younger age when you're buying your first car and may not fully understand all the financial concepts that go into an auto loan, and how the companies make their final decisions.

Essientially, a bank will use your credit score, combined with your disposable income, credit history, and residence and job history to make the decision of whether or not to loan you the money for your new vehicle. One of the biggest mistakes in buying a car is paying too much for this financing. The most important tip that can be given is to look at the overall big picture. A low monthly payment might not mean a low cost if your interest rate is very high or if there are lots of penalties and fees built into the loan. Make sure to look at the total agreement when making your financing choice, and if you're not sure what something means then don't be afraid to ask questions.

A lot of companies are offering car loans to people with bad credit, just a simple internet search turns up dozens upon dozens of companies that can help sub-prime buyers with car financing. Many dealerships understand the tough financial times as well, and will sometimes have "special buyer" financial departments that examine and offer credit loans to buyers with less than perfect credit ratings. Remember to shop around before selecting your loan. Consumers often will select the first loan that they are approved for, instead of waiting to see if they might get approved for several different loans from various subprime lenders, and be able to select the rate and terms that are right for them.We've only touched the surface of auto financing with bad credit, but there's a wealth of resources out there for the savvy buyer that could save hundreds or thousands of dollars in the long-run, so be sure to do your homework, and before you know it you'll be in that new car you've always wanted.

Thursday 7 August 2008

Finance for home owners

When you’re looking for a low cost loan despite your poor credit, then poor credit home owner loans are the best option for you. You are free to utilise poor credit home owner loans for whichever purpose you intend to use. You can renovate home, pay off debts; finance a vehicle or clear medical or education bills.
Poor credit home owner loans are provided on the equity of your home. The lenders take your home as collateral and therefore the loan is essentially a secured loan. Home equity is the difference of current market value of home and outstanding mortgage balance. You can take a loan equal to the difference of the two.
The main reason for taking poor credit home owner loans is that they are offered at a lower interest rate. The interest rate is lower than simple secured home loans. This is because poor credit home owner loans are more secured than any other secured loans. The lender is assured of the security of the loan as in case of payment default if the lender has to sell the home he is sure of getting the price equal to the equity and the loan is offered less than the equity in the home.
There is no need for worrying in taking self employed home loan in case you happened to have poor credit. Your home as collateral has already provided adequate security of the loan. The lender anyway can recover his loaned amount by selling your home in case of a payment default. So, lenders do not take your poor credit seriously as a hurdle in offering the loan. They may provide the loan on almost equal terms and at lower interest rate despite poor credit.
Where can you find the right lender? Well, numbers of self employed home loans providers have displayed their loan offers on the internet. Request for their loan quotes and compare them for lower interest rate and other terms-conditions for a better deal. Apply to the selected lender online for fast approval of the loan.
There are many lenders who have showcased poor credit home owner loans online. Compare their interest rate and settle for the one who has even lower rate. Preferable apply online to the lender for instant approval of the loan.
Poor credit home owner loans are best suited for cheaper finance. The loan is given on the basis of equity in home and hence the interest rate is lower. Make improvements in credit score by timely pay off of the loan instalments.
Finally, another great way for saving money by getting a better deal on a car loan is to put aside as much cash as possible and make a down payment. This will greatly reduce the interest rate you will have to pay for financing and thus, you will save thousands of dollars over the whole life of the loan. Down payments show the lender you have the capacity to save money and that you will be able to repay the loan. Thus, the risk for the lender is greatly reduced and the interest offered will be substantially lower.
Home owner loans are available easily to poor credit people who have faced CCJs, arrears, payment defaults or even those who have filed for bankruptcy. With home owner loans well secured by the home of the applicant, there are no risks in offering the loan. Hence poor credit is in fact no impediment in the way of the loan.
These loans are called cheap because interest rate on the borrowed amount is kept low and additional costs are also fewer. Variety of personal purposes including home improvement and purchasing a car can be met through the loan. But, you are supposed to keep certain things in mind.
No credit check is done on the borrower of cheap home owner loans in case of a poor credit. Lenders can easily look away if the borrower has poor credit because the loan is well secured and there is no risk even in case of payment default. So apply without hesitation for the loan despite your poor credit.
But before making a deal with a lender, better compare as many cheap home owner loans providers as possible on internet by asking for their quotes. Settle for the one who has lower interest rate and easier terms-conditions. For fast approval of the loan apply online which is very simple procedure.
Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Personal Loans and also in helping people to get approved for home loans, guaranteed loans, poor credit auto loans, guaranteed credit cards, poor credit loans among many other financial products.
Unsecured personal loans are made for all kind of borrowers and mostly those who are non homeowner can find it better. For all kind of financial obligations borrowers can approach these loans. There are no unfriendly terms and conditions that will make the borrowers to complain against these loans.
There is a lot being said about no credit check loans and their benefits. There are many sites promoting these loans and making fabulous statements about them. There are however, some things you should know about them prior to rushing in and apply for one of them. As with any financial products there are advantages and drawbacks to be taken into account.

Tuesday 29 July 2008

Credit and loans

Due to innate alterations in the UK finance marketplace, borrowers that possess an adverse credit record now have a greater access to more reasonable loan rates than ever before. Research shows that approximately one quarter of all UK consumers have experienced some type of unfavorable credit. This is a fairly substantial amount of people representing nearly fifteen million consumers. Whilst it's somewhat alarming to hear that so many people have struggled with debt problems, it's not surprising in today's credit-driven economic system.

Credit card balances and revolving debt amounts continue to increase in the UK, which naturally leads to more consumers fighting to deal with their financial debt situations. The positive news for the developing group of consumers that experience unfavorable credit is that at present more than ever, they have alternatives to use in obtaining finance facilities. The increase in the amount of bad credit finance opportunities could in reality be partially attributed to a flourishing population of consumers who meet the profile of this target market.

As more borrowers experience bad credit, and whilst the credit marketplace has become awash with lenders and card companies, rivalry causes the banks and finance lenders to be significantly more competitive with finance products. As a result of this some lenders have aggressively pursued the adverse credit sector with specific finance products. Whilst it can't follow that having adverse credit is advantageous, it can be said that it's not as desperate as it formerly was for those that have been irresponsible with debt in the past. There are now, more than ever before more opportunites for borrowers to be given a second chance especially regarding a cheap car loan
Of course, there is certainly more risk to financial institutions whilst offering financial products to consumers that have already exhibited a poor payment history with debt. Nonetheless, a few financial institutions market themselves as being sympathetic to the needs of adverse finance consumers. Financial institutions endeavor to pursue consumers with either easy to complete and fulfill application processes, fairer or lower rates, significantly better terms on loans, or financial products of lower amounts that assist the lender to rebuild their credit rating with a more manageable payment structure which is affordable with budgeting.

An additional modification that has profited adverse finance consumers has been the development on the World Wide Web with reference to lending. Independent finance companies and brokers have caused there to be significantly more rate competition amongst finance lenders, and more financial institutions are extending their porfolio by offering products online. This change in the way the market delivers its products has created a more effective market for financial institutions and allowed for quicker finance decisions for consumers. Consumers do need to be cautious whilst looking for financial products if they have adverse credit. Whilst many reputable lenders are available, some unscrupulous lenders may look to take advantage of desperate consumers with high rates and up front finance fees. A few conceal these fees in the small print of the documentation or disclosures to stave off communicating it immediately with the borrower.

All in all it needs only a little time and some comparison web site researching to ensure that you feel that you are geting a decent deal for the credit being offered. Always keep in mind that different finance instituitions look for different types of customers, therefore your personal circumstances and your credit rating are important.

Thursday 17 April 2008

A brief explanation why the vehicle value is important to subprime lending

Why is it that people who are classed as subprime struggle to get a personal loan, but can be approved for car finance by numerous companies, surely lending money is all the same?

The answer is quite straightforward, but maybe confusing to those who are not in the subprime finance business. In essence it boils down to a simple case of security and potential loss. If someone defaults on a personal loan, there is no real potential of recovery of any of the funds in a swift period of time.
For instance, customer A defaults on a personal loan, apart from taking them to court and trying to recover income from them, there is no alternative and if the customer has a genuine reason for default, it’s unlikely that you would obtain a judgement for anything meaningful in terms of monthly instalments. Therefore your loss is total – advance, minus payments made and the derisory judgement the court makes in a repayment schedule; assuming that the customer actually keeps to it. In this scenario, your return will drip feed in over many years and without doubt you will have to chase the customer for the payments as well. All in all, not a good position to be in if you’re a lender, this is why loans with no security are few and far between in the subprime world.

Let’s now take the subprime car loan. First of all, the lender knows that there is an asset they can repossess and sell in the event of default, so immediately were ahead of a personal loan in terms of loss. Secondly, we know that the vehicle is more than likely a critical requirement for the customer, few people want to get public transport and nowadays in general we all prefer to travel by car. This means that the customer has a reason to pay for the loan as well, so were looking good now.
Not only do we have some immediate return in the event of default, we also know there is a need for the customer to pay for the loan, rather than the basic obligation of a finance agreement.
So we now need to analyse what the loss situation is going to be. The loss is in direct proportion to the amount you lend on the vehicle relative to resale/auction value. Lending someone £10,000 on a car loan that’s worth £600 at an auction is dumb and is as good as writing a personal loan. Sure, cars still depreciate; however, you’re betting that the instalments made will help offset this problem.
A standard market value in the subprime sector is to lend retail value (mileage adjusted), using an agreed independent and updated valuation source (Glass Guide or CAP) in the hope you will obtain trade price at the auctions. For those not in the “know” circa 120-125% of trade represents the retail amount, however, prices do vary.
Operating in this manner, the dealership or seller makes enough profit out of the metal for it to be worth their while and the finance company “ideally” has an asset that can realise a good amount in the event of repossession and resale at auction. This will ensure that the loss isn’t total and those customers who pay will pay for those that don’t.
The only security superior to that of a vehicle, is obviously the security of a charge on the property.

Tuesday 15 April 2008

Credit rating - how it works

Most if not all finance companies will register your loan with a credit reference agency, once you have taken the loan out. It doesn’t matter if it’s for a personal loan, hire purchase, car finance or secured loan; they are all registered on the data files and sent off.
Each month the finance company needs to send the records back to the credit reference agency and update the current status of car finance accounts they have on file. This is done electronically and usually fazed in batches over the month, if it’s a large car finance entity; monthly if it’s a smaller company.

When you fall past due, it will not show immediately that you are one month in arrears. You will have approximately three weeks before you run the risk of your credit file showing a full one payment in arrears, or as the credit reference agency states “One down”. Certainly after four weeks you will at the critical point of the account showing a level of deterioration. Obviously once it shows “one down” you will need to bring the account up to date as soon as possible otherwise your credit file will be impaired. If you’re looking to obtain things like credit for vehicle or van finance you will immediately struggle, this is because the underwriters will think that you are currently experiencing credit problems as your account has just gone one down and probably reject your car finance application.

Tuesday 8 April 2008

Car finance and the need to change

In this day and age it’s near impossible to purchase a vehicle without obtaining car finance. Most if not everyone wants a new shining vehicle and if they cannot obtain a new one a used one will be a good alternative.

It seems that people have a change cycle of approximately every two to three years; this appears to be the ideal time for the need to change. This is quite odd as it appears that most people would actually prefer to change their car and obtain car finance again for the next vehicle, rather than paying off the total loan before buying another. This can be the result of some socio-economic issues. For instance, is it that the neighbour has recently changed their vehicle, or perhaps they have become bored of the existing one and see the new models released on television adverts and this triggers the compulsion to change it.

My opinion is that it has something to do with “keeping up with the Jones’s” syndrome. The need to appear successful and affluent compared to your peers is what drives many to change. Why have that old vehicle sitting in the drive for so many years, when you can obtain a new one by just changing your car finance deal.

The other thing to keep in mind are the people who just need to have the latest model, they are “into” their vehicles and read all the publications and reviews and then a deep seated urge to get it drives them to change. This is followed by a few visits to the local dealers to see what their missing, a sort of intel mission. If they then find the vehicle is just what they want then the compulsion to buy becomes almost unstoppable then they start to organise the car finance facilities to make it happen.

Car finance rates will not stop this person from buying as the need to buy will now outweigh the rates on the car finance and as long as they can get it organised there happy. Car finance is available to consumers here.

Wednesday 2 April 2008

Collecting and the objectives

Yesterdays post was about your reaction to taking that first call because your car finance loan was in arrears. This one is a bit of insight from the collector who will be calling you.
First off, your details are going to be in the auto dialer at the car finance company, I mentioned this yesterday. Now this person will usually be in a call center of the car finance company, have targets and hate his or her job and be speaking to people trying to weasel out of paying for their car loan all day. Not a good start for you eh?

So first off the call is placed by the car finance company auto dialer, then your details will appear on their screen when you answer the call. If you don’t answer the call then it will usually try the other numbers on file for you in quick succession, each waiting for the call to be answered or not as the case may be. As soon as the call is live your details will appear on the screen of the caller. Sometimes, odd things happen here, for instance if the car finance organisation use a predictive dialer and the call center is busy, you might actually not get anybody on the line immediately. There's a marked delay between you answering the call and somebody actually talking to you, then you know their busy!

The car finance employee calling you doesn’t have enough time to read all the comments on your file, if any. This is why they always seem to have the same introduction - security questions, statement of balance and can you pay the balance now. This is so you have to take time to respond which enables a sort of catch-up period for the collector to look at some key details while your answering them.

So, the collector’s objective - Well it used to be something like:
1. What’s the problem for the payment arrears.
2. What’s the solution to stop this happening again?
3. Can they pay now and clear the arrears on your car finance.

This is usually why you get asked why you haven't made the payment to your car finance. There’s some real obvious NO NO's here, the collector isn't looking for: Uhm, couldn’t be bothered about my car finance, I'm busy call me back later type of replies, there looking to get you off their queue. There’s nothing personal about the call, you will be one of perhaps hundreds of people this person is going to have to try and speak to about their car finance before they can go home, or more than likely, go to the pub to release the stress of all the car finance people in arrears.

So the car finance collector needs a result and you need a result. You do need to agree and stick with an arrangement to pay. Getting abusive or argumentative will get you nowhere. Your offhand comments will be noted and the next time you are called, you can bet your house on the fact that you will get a harder time if you’re not going to at least sound responsive to this person. You need to at least give the impression that you care about the loan and that you do want to resolve it, this way there’s a note on your account about how receptive you were and how you had a good attitude to sorting the problem out.

The obvious solution to solve the arrears, is to pay on time and if you do forget to pay, you try and get your account back up to date as soon as possible.

Tuesday 1 April 2008

When it all goes bad

Sometimes people get the car finance, look after the vehicle, make a few payments and then decide it’s not a priority anymore. They have loads of other bills to pay and seem to fall back into the trap of "maybe I'll pay it later" syndrome.

The problem here is that if you have obtained the vehicle from a specialist subprime company with car finance, they don't hang around waiting for you to pay when you want.

The car finance account usually falls pass due into a list after a day or at most three days overdue. At this point, the collection machine starts to move into action.
It’s not usual for you to receive a polite reminder in the post, nope that was a thing of the past when your credit rating was good. Now, you will receive a telephone call from the car finance company and put into an auto dialler list so they can get hold of you as soon as possible. Depending on the collection technique of the company, they will try all the known numbers, work, home, mobile etc. They also will not leave just a polite message; usually the car finance will call and if you don’t respond, will diarise the call for later in the day. Don’t forget, this isn’t something they do manually and might forget, this is on an automated system (dialler) so you can be assured that the car finance company will continue to call all the known numbers until they can get hold of you.
So, the best solution is to take the call as soon as possible. You need to respond in a none combative manner and arrange to make the payment as soon as possible.

Your real objective when taking the call is to ensure that the collector "feels" that you are not a problem and it was a mere oversight on your behalf and the car finance problem is now solved. This way you don’t get comments on your file about a bad attitude or offensive behaviour. This is important because if they need to speak to you again, the person calling you reads the notes of the previous call before they talk to you and therefore you don't start with the collector thinking that you are going to be difficult with them.

Monday 31 March 2008

Car finance and bad credit

Car finance has become one of the basic necessities of the contemporary world. All the daily chores, be it buying grocery to catching up with important business dealings, all become simpler with the aid of a car. The problem arises when you don’t have enough finance. The situation becomes worse if you have a bad credit history. You can be tagged to bad credit due to various reasons such as:

Bankruptcy
Slow credit or No credit
No proof of income
Self-employed status
Individual Voluntary Agreements or IVA’s
County Court Judgments or CCJ’s
Arrears
Defaults

Bad credit can make your financial life a drag. With the growing standard of living, one can barely fulfil basic necessities with his regular income. In the modern world, basic necessities not only include food, home but also a car. This is when bad credit car finance can come to your rescue. Remember, it would be attached with a higher rate of interest, due to a bad credit history.


It can be quite a challenging task to locate suitable car finance with bad credit. Yet with a growing number of bad credit loan providers, your difficult task has eased to a great extent. It is recommended that you should undertake some research before you choose upon bad credit car finance to satiate your needs. You can navigate through the various loan quotes that can help you to pick the right car finance to customize with your personal state of affairs. Loan calculator can aid to evaluate monthly instalments, which can mould to your situation. Loan expertise too, which is offered by many loan providers can enrich your knowledge and put you at the helm of dealings.


Bad credit can no longer deny you to finance your dream car. You can go ahead with car financing either a used or a new car without bothering about a bad credit. With bad credit car finance you can avail benefits such as:

Reinstate your credit standing
Improve chances of better loan opportunities in future
Don’t let bad credit purge your desire to purchase a car. Avail yourself of bad credit car finance and make your dreams a reality.

Thursday 27 March 2008

The implications of the recent budget

As you’re on this car finance site, you probably have an interest in vehicles, are a driver or are hoping to become one very soon. As such, there’s no doubt at all that the budget affects you, whether you’re a millionaire or on minimum wage. Let me just say this first - the budget hits you where it hurts.
Once again, us cash-cow drivers with car finance are going to suffer in a number of ways…Fuel Petrol and diesel prices had a planned rise of 2p per litre - however thanks to much industry (and some faceless entities) lobbying, we’ve now seen this put back to October. To me though, this just stinks of ‘stealth tax‘. What I mean by this is that if the government can make everyone calm down or forget about it for long enough, they won’t complain half so much and the coffers will still be filled. Fuel duty also has a guaranteed rise of 0.5p per litre in 2010 - no doubt with more raises in-between, all this on top of your car finance repayments.
Alternative fuel Car finance that aren’t powered by petrol or diesel are on ‘alternative fuel’. Those vehicles could well come in for a discount of up to £20 per year on their road tax. Not great, but better than nothing. Duty differential will disappear from alternative fuel and a Renewable Transport Fuel Obligation will force suppliers (such as Shell) to ensure that 5% of their fuel comes from renewable sources.

Vehicle excise duty/road tax - The number of bands for car finance vehicles will go all the way up to 13 from next year, with band M (255g of cO2 per km) being charged an annual fee of £425 per annum. Vehicles with a lower than 150g output per km will pay a lower rate from 2010 (why not from next year like the higher paying vehicles is anyone’s guess). Vehicles with a lower rate than 130g will not pay road tax in their first year. If this were every year I’d see the point… but just in the single year? Regardless, the most shocking fact is that band M vehicles will receive a massive bill of £950 in the first year.

Funding for more car finance tax - The government has freed up funding for local councils and private companies to investigate the idea of further congestion charges and national road pricing. It’s a great way to essentially fund further taxation I must say, and I’m not quite sure how making people pay more will stop them using the roads that they physically must use.

My overall thoughts on the budget and car finance - Frankly, as per usual, those who drive have been hit where it hurts - their wallets. I’m not surprised, given the fact that more than £45 million is generated for HMRC every year, over and above the car finance. However, as long as the government has the ideal of ‘being green’ to hide behind, people won’t rally behind the injustice of how much we pay for vehicles. The budget is once again unfair and a great way to eke more money out of an unwitting public let alone the car finance.
As a side note, due to the fact that we’re close to recession, this is one good year to buy a used vehicle on car finance. Depreciation is going to be 8% more than expected, so look for car finance in a couple of months to pay a price that’ll keep some change in your pocket.

Thursday 20 March 2008

How to get a better deal from your garage

A car owner’s guide
to servicing and repairs...
Servicing your car will make it last longer. It also makes it safer for you, your passengers and the environment. Here are some tips to help you avoid dodgy garages, get effective work done and achieve good value for a service or a repair of your car. If you have car finance bought from a dealer, the last thing you want is to be paying huge bills as well as your monthly payments for your motor.

START NOW
• Don’t wait until you need a service or repair
• Spend time comparing garages beforehand
• Get your car serviced regularly
• Ask around about good garages

A RELIABLE GARAGE WILL CERTAINLY DO
SOME, OR ALL, OF THE FOLLOWING
• Display a menu of fixed cost works
• Tell you how much they will charge to diagnose a fault if it includes dismantling and putting back together
• Be a member of a trade association (such as the Motor Vehicle Repairers Association)
• Have trained staff and display certificates
• Have an auto complaints procedure

if your looking for car finance check out http://www.infinitycarfinance.co.uk/

Buying a new car?

All new cars come with some sort of warranty covering parts failure. In almost all cases your car warranty stays valid no matter where you get your car serviced but terms and conditions attached to warranties can vary.
When you’re looking for a new car it’s worth comparing warranties as well. Make sure that the
warranty gives you what you want and doesn’t include conditions that will cost you money later.
Types of warranty
All new cars sold in the UK include a basic warranty, called the manufacturer’s warranty.
These usually last for one, two or three years. Most manufacturers with a one or two year basic
warranty also offer at no extra charge a dealer based extended warranty. This can extend the
total period of cover to three years, or longer. It is also possible to buy other types of extended
warranty once you have bought your car. But beware – the manufacturer’s warranty, the
dealer-based warranty and other warranties you can buy can be quite different. The dealer-based warranty and warranties you can buy can have more limitations, like mileage.
Servicing
Where you get your car serviced is an important consideration. Following action by the OFT in
2004, all major makes of new car in the UK are sold without servicing ties as part of their
warranties. This means that the manufacturer’s warranty and any extension offered free, such as the dealer based extended warranty are covered by the Society of Motor Manufacturers and
Traders Limited (SMMT) OFT Approved code of practice (see www.smmt.co.uk). The code from the SMMT, who represent all sectors of the automotive industry in the UK, says that you are free to get your car serviced anywhere in the UK and still benefit from the manufacturer’s new car warranty, as long as the service is carried out to the car manufacturer’s recommendations, even if this service is carried out by an independent service or repair outlet. However, any additional warranty which you have bought, may contain restrictions on where your car can be serviced and for bought warranties this restriction has to be obeyed (as well as any others) for the warranty to be valid. The code also has procedures for dealing with complaints concerning your new car. Aftersales costs, such as services, can represent
around 40 per cent of the whole life cost of the car and many independent garages can offer the
same quality of service as franchised dealers, who tend to be more expensive than
independent garages. It is important to shop around for the best deal and only use reputable
garages that will carry out servicing work in line with the car manufacturer’s service schedules.
Your legal rights
A warranty adds to your legal rights, it is not a substitute for them. In law if the car develops
a fault in the first six months, it will usually be assumed that the fault was there when you
bought it. In these circumstances you can ask the dealer to repair the car free of charge or
replace it.
Before you buy ask the salesperson
these questions
• Is the warranty covered by the SMMT code which permits servicing by independent
garages?
• How much will the servicing costs be? (Compare them to other garages in your area)
• How much leeway is there if I cannot get the car serviced in accordance with the approved
servicing schedule?
• How long does the manufacturer’s warranty last?
• What does it cover?
• When does the dealer’s warranty start and what does it cover?
• Is every fault covered by the manufacturer’s/dealer’s warranty?
• What isn’t covered by the manufacturer’s /dealer’s warranty?
• Is the warranty restricted by the amount of mileage I do?
• If I have an accident but I get the car repaired, is the warranty affected?



When you’re thinking of buying a new car, perhaps using car finance UK for your motor it’s worth comparing warranties as well as cars –
it can save you a lot of time and money later particularly on the car loan if you have one.
Examples of restrictive conditions in warranties
Most manufacturers allow you to service your car wherever you choose so long as certain
standards are met. But some warranties place restrictions on you. Watch out for the following
restrictive conditions:
‘Only an authorised (make of car) repairer services and maintains your vehicle in
accordance with the manufacturer’s recommendations.’
‘This warranty is dependent upon the manufacturer’s recommended servicing being
carried out by an authorised (make of car) dealership at the time or distance intervals
specified in the (make of car) Warranty and Maintenance Record booklet, subject to the
vehicle being driven less than 60,000 miles since first registration.’
‘The vehicle must be regularly serviced by an Authorised (make of car) Dealer in accordance
with the (make of car) service schedules using (make of car) approved parts during the 3 year
warranty period.’
A good place to look for a facility for this would be at http://carfinanceuk.me.uk/