Car Financing
Securing financing before you go to the lots allows you to have the bargaining power of pre-approved finance when searching for your vehicle. Remember that the longer you borrow the money, the more it will cost you. Try not to borrow too much and make sure you don’t borrow an unreasonable amount that you can’t pay back. Try to pay as much as you can up front – in cash or as a trade-in – and pay less interest. Several ways to get financing is via the internet (see resources), your local bank or credit union.
* How low is the interest rate?
* What are the annual fees?
* Can you make extra repayments without being penalized.
* Are you covered with the payments if you get sick or injured?
* Do you have a good credit rating?
Thoroughly investigate your loan and always make sure you look at the total cost of the loan as a higher interest rate can sometimes be better than a loan with a low rate but with a lot of hidden fees!
Leasing
Leasing enables you to lease a more expensive car than you could afford to purchase. The lessor (usually a bank or leasing company) buys the vehicle from the dealer or manufacturer and then leases it to you. You, in turn, pay the lessor for the right to drive the vehicle during the term of your lease. When you buy a car you pay for the entire price of the car. When you lease, you pay for the depreciation, acquisition fees, negative equity on a trade-in and after-market products (such as extended warranties) over the lease term.
A vehicle with a 20,000 price tag can be leased for three years with nothing down and a monthly payment of $385.00 or bought over the same period for $2,500 down and a monthly payment of $595. Sounds like a good deal but we got to remember the buyer owns the car and can claim the equity in it.
Car Insurance
There are several ways to get insurance: by phone, the internet or you can go to a insurance agent. Every policy is different and each insurer uses a different set of criteria in determining insurance premiums. Criteria for how much your premium will be is determined by where you live, age or sex and sometimes even your credit rating. Remember, the higher the risk, the higher the premium.
* Some other things they look at:
* Make, model and age of your car.
* Whether your car is driven for business or privately.
* The age of the drivers.
* Your driving record.
* Whether or not the car is financed.
* If there are any theft deterrents on the car.
* The number of miles that you drive per year.
Bodily Injury Liability:
Covers other people’s bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. Bodily injury liability covers injury to people, not your vehicle, not you or other people on your policy. Remember to review the terms and conditions contained in the policy. It is mandatory in most states.
Property Damage Liability:
Covers you if your car damages someone else’s property. Usually it is their car, but it could be a other property damaged in an accident such as a house or a fence. It also provides you with legal defense if another party files a lawsuit against you.
Comprehensive Coverage:
Covers your vehicle from incidents other than collision such as if it was stolen, fire, flood, or animals. A higher deductible can substantially lower the cost of insurance premiums but it means you pay more out of pocket if an incident happens. This is not required by most states, but if you have a loan or a lease they will require it.
Collision Coverage:
Covers damage to your car when your car hits, or is hit by, another vehicle or object other than a car. This coverage pays to fix your vehicle after you pay the deductible. This is not typically required by a state, but if you have a loan or a lease they will require it. .
Uninsured and Underinsured Motorist Coverage:
Covers when property damage is sustained by an driver with no insurance or is insured, but the limits of liability carried by the driver are not sufficient to cover the damages.
GAP Insurance:
This is insurance that pays the difference after you car has been totaled. For example your car is worth $3000.00 but you still owe $3500.00 to a lender. The Gap insurance pays for the difference.
Robert Gering
http://www.articlesbase.com/automotive-articles/auto-financing-leasing-and-insurance-90846.html
