Nov
29
A New Car Loan From the Dealer is not Always the Best Choice for Your New Car Finance
Filed Under Cars | Comments Off
anonymous asked:
When purchasing a new car it is always very easy to be swept away in the excitement of it all and want to take delivery as quickly as possible. To do this it is simply a matter of agreeing on the price of your new car and signing the necessary documents for a new car loan. All done and dusted. But just how much more have you paid for your new car and your new car loan because of your “want it now” approach?
Probably more than you think. Car dealers can be very persuasive and once they feel you are sold on a car then there is little hope of a reduced price or a very competitively priced new car loan. Here are a few tips when you are looking for a new car:
• Don’t go to the dealership with the expectation or desire to buy “today”. Check out the internet first to see just what the price range is for the vehicle you are looking for.
• Speak to a mortgage broker or a lease broker to see what connections they may have with new car dealerships. Surprisingly, a mortgage broker can not only access good new car finance but also has negotiating “clout” with a number of new car dealerships. Most new car dealerships have monthly volume targets which when reached result in large bonuses being paid by the new car manufacturer. As a direct purchaser you will not be privy to this information but where the mortgage broker has built a good relationship with a new car dealership he or she will undoubtedly be able to negotiate a better new car price for you – unless of course there is a waiting list for the particular car you are after. Even in this situation you may find that you will be able to achieve a better price – a Sydney based client recently ended up purchasing a new car through a mortgage broker where the car was sourced out of Wollongong (dealer wanted the sale to reach his monthly target). The new car was delivered straight to her Sydney home.
• If you are not absolutely set on a particular new car then find out what the re-sale value is of similar model cars when sold say 3 years later or at the expiration of your new car lease and new car loan. It is generally accepted that most new cars diminish in value by up to 15 % the moment you drive it out of the car yard. To ensure you retain value in your new car and that the residual value after 3 or 5 years under your new car loan will be met from the sale proceeds as a “used” car, it is imperative to check the sales history of the car / model/ manufacturer. It can be disheartening to find that when you eventually sell the car you do not realise a price that allows you to pay out the residual under the new car finance.
• If your cash flow allows it, try and keep the residual to as low a figure as possible. This negates the likelihood of there being a shortfall between the used car sale price and the residual value under your new car loan. If you maintain your car well and have it serviced on a regular basis then there remains the possibility that when you come to sell you actually realise more than the residual value under the new car loan – this should be a non-taxable profit in your hands.
Tino
When purchasing a new car it is always very easy to be swept away in the excitement of it all and want to take delivery as quickly as possible. To do this it is simply a matter of agreeing on the price of your new car and signing the necessary documents for a new car loan. All done and dusted. But just how much more have you paid for your new car and your new car loan because of your “want it now” approach?
Probably more than you think. Car dealers can be very persuasive and once they feel you are sold on a car then there is little hope of a reduced price or a very competitively priced new car loan. Here are a few tips when you are looking for a new car:
• Don’t go to the dealership with the expectation or desire to buy “today”. Check out the internet first to see just what the price range is for the vehicle you are looking for.
• Speak to a mortgage broker or a lease broker to see what connections they may have with new car dealerships. Surprisingly, a mortgage broker can not only access good new car finance but also has negotiating “clout” with a number of new car dealerships. Most new car dealerships have monthly volume targets which when reached result in large bonuses being paid by the new car manufacturer. As a direct purchaser you will not be privy to this information but where the mortgage broker has built a good relationship with a new car dealership he or she will undoubtedly be able to negotiate a better new car price for you – unless of course there is a waiting list for the particular car you are after. Even in this situation you may find that you will be able to achieve a better price – a Sydney based client recently ended up purchasing a new car through a mortgage broker where the car was sourced out of Wollongong (dealer wanted the sale to reach his monthly target). The new car was delivered straight to her Sydney home.
• If you are not absolutely set on a particular new car then find out what the re-sale value is of similar model cars when sold say 3 years later or at the expiration of your new car lease and new car loan. It is generally accepted that most new cars diminish in value by up to 15 % the moment you drive it out of the car yard. To ensure you retain value in your new car and that the residual value after 3 or 5 years under your new car loan will be met from the sale proceeds as a “used” car, it is imperative to check the sales history of the car / model/ manufacturer. It can be disheartening to find that when you eventually sell the car you do not realise a price that allows you to pay out the residual under the new car finance.
• If your cash flow allows it, try and keep the residual to as low a figure as possible. This negates the likelihood of there being a shortfall between the used car sale price and the residual value under your new car loan. If you maintain your car well and have it serviced on a regular basis then there remains the possibility that when you come to sell you actually realise more than the residual value under the new car loan – this should be a non-taxable profit in your hands.
Tino
Nov
21
mrs_squier81906 asked:
My husband and I need to drive from Delaware to Alabama this spring. He’s 24 and has a class C CDL. We were just checking out car rental rates and all companies will charge us a $25 per day surcharge just to rent a compact car! This is absolutely ridiculous! Its going to double the cost of renting the car. Is there any way to get around these things?
Dierdre
My husband and I need to drive from Delaware to Alabama this spring. He’s 24 and has a class C CDL. We were just checking out car rental rates and all companies will charge us a $25 per day surcharge just to rent a compact car! This is absolutely ridiculous! Its going to double the cost of renting the car. Is there any way to get around these things?
Dierdre
Nov
16
Would like to know why my car want start after replacing fuel pump,filter and fuel relay?
Filed Under Cars | 6 Comments
Xavier H asked:
I have a 1987 Buick Lesabre Custom.I replaced the fuel pump,fuel filter,and fuel relay.After I finish installing all the parts I turned the ignition switch and my car started right up.I did this job Sunday October 22,2006.Since then my car has not been able to start up and the battery keeps running down.Can some one tell me why I am not able to start my car or why the battery keeps running down,The car has a full tank of gas?Never did lose any gas from changing out the fuel filter or fuel pump.I have done what the answers that the guys gave me on this site and My father installed all the parts for me on my car he retired as a ASE Master Mechanic 48yrs as a mechanice and in the business.I went back and check the wiring for the fuel pump and it installed correctly and I changed out the fuel relays cause they are 20 yrs old.I have done everything that the guys here suggested that I do and the car still want start.Anymore suggestion?
Sherrill
I have a 1987 Buick Lesabre Custom.I replaced the fuel pump,fuel filter,and fuel relay.After I finish installing all the parts I turned the ignition switch and my car started right up.I did this job Sunday October 22,2006.Since then my car has not been able to start up and the battery keeps running down.Can some one tell me why I am not able to start my car or why the battery keeps running down,The car has a full tank of gas?Never did lose any gas from changing out the fuel filter or fuel pump.I have done what the answers that the guys gave me on this site and My father installed all the parts for me on my car he retired as a ASE Master Mechanic 48yrs as a mechanice and in the business.I went back and check the wiring for the fuel pump and it installed correctly and I changed out the fuel relays cause they are 20 yrs old.I have done everything that the guys here suggested that I do and the car still want start.Anymore suggestion?
Sherrill
Nov
4
What kind of new car interest rates can I get with a substantial down payment?
Filed Under Cars | 3 Comments
newcarshopper asked:
I have no chargeoffs, and have never been late with any bills, rent, tuition, etc. I’m interested in purchasing a car to replace my gas-guzzling truck now that I’ve landed a great entry-level financial position, and I’m curious as to what to expect from my situation. The car I intend to purchase has an MSRP of $21,000, and I intend to put right around $9,000 down and pay the tax up front (TX 8.25%). I’ve calculated some payment estimates, but since my credit isn’t established, I’m wondering what type of rate I can expect to pay on my loan. I intend to finance the car for 60 months. With a substantial down payment of more than 40% of the car’s value, and net income of $25,000 a year, will I still have a difficult time getting reasonable financing with my young credit history?
Vmcord
I have no chargeoffs, and have never been late with any bills, rent, tuition, etc. I’m interested in purchasing a car to replace my gas-guzzling truck now that I’ve landed a great entry-level financial position, and I’m curious as to what to expect from my situation. The car I intend to purchase has an MSRP of $21,000, and I intend to put right around $9,000 down and pay the tax up front (TX 8.25%). I’ve calculated some payment estimates, but since my credit isn’t established, I’m wondering what type of rate I can expect to pay on my loan. I intend to finance the car for 60 months. With a substantial down payment of more than 40% of the car’s value, and net income of $25,000 a year, will I still have a difficult time getting reasonable financing with my young credit history?
Vmcord