Guide in Auto Loan Application

At some point in your life, you will decide that you finally have to have your own private vehicle. If you’re planning an auto loan application anytime soon, these are some tips to help you succeed.

Review Your Credit Report

First and foremost, before applying for an auto loan, or any loan for that matter, it is important to take your credit score in consideration. Not only will it determine if you are eligible for a loan, but it will also dictate your rates and terms.

It is of utmost importance that you request for a copy of your credit report every once in a while, especially if you’re planning to apply for a major loan soon. This gives you an idea of how your application stands. Furthermore, it is always best to spot present credit score issues now than be surprised later on when your application was already submitted.

Calculate the Overall Cost of the Loan

While most applicants are busy comparing the interest rates across other lenders (which is actually a good thing), you need to take it up a notch by knowing what your deal has inside and out. Don’t just focus on the rates that you’re getting, but rather, review every cost involved with your loan, such as setup fees or broker fees, if any, late payment charges, early settlement charges, etc. Also consider the length that the loan will be in force. The lowest APR’s don’t always give you the most savings, because the repayment period greatly affects how much your loan is going to cost overall.

Don’t Be Afraid to Haggle

Your auto loan could be one of the most expensive debts you are going to acquire in your life next to your mortgage, so it just makes sense to get the best deal from it as possible, as you are looking at about a good three to five years of loan repayments. It never hurts to haggle for better rates, especially if you have a pretty competitive credit rating.

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Don’t Be Afraid to Walk Away

Meanwhile, if the lender is giving you a hard time and things are not definitely going your way no matter how much you haggle, don’t be afraid to turn your back and find a better deal elsewhere. Of course, common sense should be exercised and there are times when you are presented with a really awesome deal, but chances are, you won’t immediately get that sort of deal on your first try. Even so, it always pays to check with the competition, as they may always have something up their sleeves to attract potential customers, especially if they know that you’re shopping around.

Avoid Add-ons

Most of the time, lenders tend to offer you a deal with add-ons included, such as insurance or safety equipments. In most cases, getting them through the deal itself benefits the lender, not you.

Be Wary of the Fine Print

There are lenders with high reputations and ones that you can definitely trust, but it would still be wise not to give your 100% trust. It always makes sense to read the fine print very carefully before you sign any contract, because these agreements are legally binding and this could be used against you after you’ve signed them.

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Continue Shopping

Lastly, it is important to be very patient, no matter how excited you are to drive a new car home. Keep in mind that there’s a good chance you’ll land a better deal elsewhere, and unless your credit is awful, you have a world of choices that awaits you.

How to Budget Properly in the Middle of Debt Repayment?

Many of us greatly fear the idea of a monthly budget, and while this in itself is already overwhelming, having several debts to pay can make everything even more complicated. But fear not, because these simple tips we have here can mean a huge difference on your broke budgeting.

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Settle Immediate Needs

Your bills coming left and right doesn\’t help you in managing everything, but if you focus on the numbers, you’re just going to overwhelm yourself. Rather, use common sense in planning your budget. Decide on which bills you are going to prioritize between rent, utilities, student loans, credit cards, etc. and it can help you start off with the right foot.

If you believe your rent or mortgage is way overdue and you run the risk of losing your apartment or your home, focus on it first before you face the others. One debt out of the way may be able to help you clear your head and then plan your strategy.

Map Out Your Strategy

It’s very rare, if possible, for someone to succeed on budgeting without making a strategy. An appropriate strategy includes deciding on how to pay off your debts while meeting everyday expenses, how much you are paying to whom, and how often you’ll be making the repayments.

It might help a lot to list down all the types of debt that you owe, from the smallest to largest, not to scare yourself of, but to have a clear view of what the situation is. For many people, they find success starting out with the smallest debts, while others prefer to see big ones out of the way immediately. Decide which method suits you well and plan to stick with the plan.

Use Cash

Most often, continuing to use credit can ruin the strategy altogether. This is because with a credit card on hand, you may have an altered view of what you can actually afford or not. When shopping with a card, for instance, it’s easier to forget how much cash you actually have and go overboard, something you wouldn\’t want to happen when you’re actively working out on your debts.

Modify Your Lifestyle

Even if you’ve had a budget created, and you think it’s good enough already, you should always aim to find rooms for improvement. Chances are, you can always find areas where you can cut back on your expenses, as long as you are willing to make some small lifestyle changes and sacrifices.

While some of them may be big, many of them are pretty small, such as cooking your meals, skipping a few movies, and celebrating Friday nights at home instead of drinking outside. While these things may seem too much in the beginning, just think about the benefits over the long term and you’ll be more willing to adhere to a new and more affordable lifestyle. The best thing about it is that chances are good you are going to carry on the changes even after your debts are paid off.

Seek Advice

No one becomes a budgeting expert overnight. If you’re having trouble, and you already failed at several attempts doing it alone, then it may not be a bad idea to seek advice from friends, family, and even professionals.

The Main Types of Debt

There are many types of debts or loans that you have probably heard of, or even encountered. There are the personal loans, auto loans, business loans, student loans, credit cards, logbook loans, payday loans, and the list goes on. We aim to group these debts into four main categories, and here in this post we are going to differentiate one from the other.

Secured Debts

When a debt is secured, it means that there’s a collateral tied against it. The purpose of the collateral is for it to act as “security” against the loan, wherein the lender can seize the collateral and sell it to recover all the losses should the borrower defaults on the loan. The collateral must be in the form of a property or asset that has some value in it, such as your car, your home, and sometimes even jewelleries or antiques that are highly valuable. Secured loans are often applied for by people who need a significant amount of money, for whatever reason. This is because the collateral allows the borrower to release substantial amount of cash, depending on the equity. Keep in mind though that you cannot put down a collateral with negative equity in it. Borrowers with inferior credit rating may also be asked to put down some sort of security in order for them to qualify for the loan. Because lenders are naturally cautious, it is expected of them to request for some further proof that the borrower intends to pay.

Unsecured Debts

The counterpart of secured debts, unsecured types of credit do not have any collateral involved. This means the lender only requires proof of the individual’s affordability of the loan and repayment capacity. But do not think that because there’s no collateral involved, it makes unsecured loans any less complicated. In fact, the lenders employ stricter measures, such as credit and affordability checks. The credit score and income requirements are usually higher, so it can be harder to qualify. Additionally, because the lender takes in greater risk, the interest rates can be more expensive as well.

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Revolving Debts

Revolving debts are types of credit wherein the borrower is assigned a specific credit limit that can be used repeatedly, as long as the limit isn’t maxed out. The perfect example of this type of debt is a credit card. For instance, if you have a credit card that has a £1,000 limit, and you charged £500, you still have £500 to use. If you used up all of £1,000 you cannot acquire any more debt unless your limit is increased or you have made payments. You don’t need to apply for a new loan all the time and the account will never expire, unless you decide to close it. In some credit cards, the borrowers may be offered 0% interest on instalments, but most of the time, the borrower should make full payment on the next billing statement. If that can’t be achieved, the borrower is expected to pay at least the minimum amount required, which depends from provider to provider. Of course, the numbers may not be exact, because there may be certain charges associated, but we just put that example to make things clearer.

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Instalment Debts

If there are unsecured loans to oppose secured loans, there are also instalment debts to oppose revolving debts. Instalment types of credit don’t necessarily have a certain credit limit involved, but the borrower is given a loan amount that should be paid off regularly in equal instalments. The amount of these instalments will be predetermined, before you even sign the loan agreement. There are many types of examples of instalment debts, such as personal loans, auto loans, home loans, and more. The main difference between instalment and revolving types of debt is that with instalment credit, the deal expires after the loan amount is paid in full, including any charges and interests accrued while the deal is in force. After that, the borrower needs to reapply should the need for a loan arise again. Although you may be given a higher borrowing limit the next time you apply if you have demonstrated responsible payments in your past loan.

Tips to Cut Back on Travel Costs

Travelling is one of the healthy ways to cut yourself out of the current stresses in your finances and life in general. If you feel burnt out for whatever reason, travelling will let you clear your head, reenergise your body and brain, and allow you to gain a more positive outlook. While most people automatically assume that travelling is costly, here are some ways to take a vacation without breaking the bank.

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Travel Off Season

Travelling during peak seasons is one easy way to throw your money away. Don’t rush when people are all having their vacations. Not only will the flights be more expensive, but it’s hard to enjoy your break when everyone else is having theirs.

Book Your Trips in Advance

Another thing you can do to cut your travel costs significantly is to book your trips in advance. This may be quite difficult, as typically people want to be spontaneous on their travel plans. And often, people try to save money first before actually booking their flights. However, you’ll be surprised that booking your trips well ahead of time actually allows you to prepare better and save money along the way. First, you can save on tickets by watching online deals. Often, they are given away during off-peak seasons, so think about where you want to go and take advantage of these special offers. Buy the tickets when they’re cheap, so you only have to worry about your pocket money.

Travel Light

One rule about travelling- don’t bring too much. Not only can it make packing things easier, but you can save money by not having a luggage checked in. Expert backpackers suggest bringing just one backpack, one pair of your most comfortable shoes, which is the same as the one you are wearing, two sets of underwear in a day, and just a few clothes depending on how long your trip should last. No need to bring a jacket or other thick clothing if it’s not cold. One mobile phone would be enough to serve as your alarm, music player, etc. There’s no need to bring your laptop. You’re not going there to work or monitor your social media accounts every five minutes.

Dine Where Locals Dine

One of the nicest things about travelling is that you get to sample every country’s cuisine, so make sure you can taste all that culture’s dishes. However, tourists often fall prey for unscrupulous businesses that overprice their products. In order to avoid this, find the places that locals frequent. Not only can you have that first-hand experience of their culture, but you get to pay just the fair amount for meals that are as equally good, maybe even better, than those served to tourists.

Find Cheap Hostels or Dorms

Travelling is all about travelling. You don’t plan on spending the whole day sleeping right? Since you’re most probably going to spend most of your hours outside, why spend fortunes on a five-star hotel that you’re only going to use for sleep? If you conduct your research thoroughly, you will find countless of affordable hostels to stay in, some of which even have breakfast included. There are also cheaper places to rent such as student dorms. Read other travellers’ reviews from sites such as Trip Advisor to get unbiased opinions on places to stay.

Plan Your Own Itinerary

Sometimes, travel packages consist of plane tickets, accommodation, and itinerary. While in some cases, these packages may cost less, it won’t hurt to check if you can save money buying them separately. For example, there’s a certain site in your package that you’re not interested in visiting. Perhaps planning your own itinerary can save you the unnecessary costs, allow you to visit places that you truly love to see, and wander according to your own schedule.

You Can Make Your Important Purchase through Logbook Loans

Cars have a high price value. Not many people have the ability to purchase an ideal car by cash or savings. This means that they need an alternative source of cash to get the car they desire. A logbook loan is just one among the loan options available that can let you get a car. It is simple to get and you do not need guarantors since the car will act as security on the loan you are taking. Understanding the different aspects of this loan will help you see if it is a viable option for you.

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  1. There are numerous logbook loan lenders in the UK. You can acquire one from their offices or online
  2. Logbook loan lenders advance funds even to those who have a poor credit history. if you have been denied loans by several lenders due to your poor credit record, you have the chance to get the loan you need through logbook loan lenders
  3. The loan can be repaid over a flexible amount of time. It could be that you need a loan that could last a few months or a few years. All you need to do is talk to the lender before hand and the repayment period can be fixed
  4. The lender gets legal right to make decisions on how the car can be used and if the car can be sold. This usually happens in case of delinquency in payment for the loan as agreed.
  5. You as the borrower still get to use the car through out the loan process as you pay for it. You can also make minor changes on the car if you wish to.
  6. Once payment for the car is completed, ownership is handed over to you and you can do whatever you please with the car.
  7. You can file an application for another car if you wish to after completing payment. You can also apply to have funds to make modifications and repair on the car through logbook loans.

Vital Negotiation Tips When Selling Your Car

People love negotiations especially when buying things from the market. Even for those who have the means to pay for the item in cash, haggling about it first has become somewhat like a necessity. This does not mean that one is unable to pay for the item; they just want to take it in at the best price offer. Without proper negotiation tips, you may have a hard time when seeking to sell your car. Here is vital information you should know when you are selling your car.

When selling to dealers

  • You have a bargaining power if you are exchanging the car for one of the dealer’s vehicle. The dealer will allow you to negotiate on the price offers thus giving you a bit of an advantage
  • For cars that are in good condition, you need to emphasize this to the dealer. Also have a proof of the good servicing made on the vehicle along with a renewed MOT. This will be advantageous to you helping you score a good deal.
  • Be ready for the car’s trade value. You can Google online to check for its trade value. This is because the dealer will always want to stick to the trade value price. It is good if you know how much it is.

 

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When selling privately

  • Always keep in mind the real value of the vehicle. Knowing this and failing to cave in to the buyer’s first request will see you get value for your vehicle.
  • Help the buyer see the urgency in acquiring the vehicle. You can let them know that other buyer’s are scheduled to view the car
  • Exhibit flexibility to your buyer. Let them see that you are willingly able to bend the original intent for their benefit.
  • Be honest about the condition of the car but do your best to avoid stating faults in the car. This means also planning how you will communicate with the buyers when they come to view the car so that you can sell it fast and at a good price
  • Plan for the lowest price you can sell the car before you advertise the car. However, do not let the buyers know about this price. This will help you have an upper hand during the negotiation process.
  • Don’t be in a hurry to sell the car to the first bidder. If the car is worthwhile, let it go at a good price. For this, you should learn to be strong and resist getting offended at ridiculous claims made by some intimidating buyers.

Means You Can Use to Pay for Your Car

When you have found your ideal car and want to take it home, you have to make payment for it. There are different ways that you can use to pay for your car. You can choose to pay cash, use your savings, or borrow money. The first two are the best ways to pay for your car. Using cash or your savings lets you have an easy time while using the car. Despite the fact that paying cash or using savings is the cheapest way to own a car, not many are in a position to afford getting a car by these means. There are notable facts about buying a car using cash, savings, or loan that you should consider before acquiring your desired car.

Cash or savings

If you have sufficient cash at hand or savings to pay for the car, you will have an upper advantage. You should however factor the needs you have before you land your hands on the next cash so you do not lack your basic needs after acquiring the car. Some of the advantages that come with buying your car by cash or savings include:

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  • The car becomes rightfully yours immediately after making the purchase. This means that you can sell the car at any point when you feel that there is a need to.
  • Using your savings to buy the car will mean that you will not gain the interest rates given for savings annually. However, this is much better than paying for a higher interest rate by taking up a loan which in a year maybe up to four times the interest you would have gained on the savings
  • You can use your savings to pay for the deposit of the car to reduce the balance on the car that would need financing. This is a good option if you do not have sufficient cash to buy the car. The financing you will get will be of a lesser amount thus seeing you pay a smaller amount in terms of interest

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Loan

Taking up a car on loan is an option. However, it is good to consider what the loan will come with before taking it up. When you borrow cash for your ideal car, it means that:

 

  • You can only get good interest rates on the financing if you have a good credit rating. If you by any chance have a poor rating, the money will be advanced to you at a higher interest rate thus making the loan expensive
  • Your financier will assume ownership of the car until the advanced funds have been paid to the full. During the loan period, you are not at free will to make any modifications in the car as you deem fit. You are bound by the terms of the financier until the car is paid for to the full. If in any case you are unable to pay for the loan, you risk losing the car.
  • During the loan period, you have a need to build up emergency funds and set them aside. This is in order to take care of the cars finance needs in case you have difficulty earning money. This will help prevent delinquency in making payments thus helping you keep your car from repossession.

 

Before you make a decision to buy your car either by cash, savings, or loan; you need to think of the future. If you had the plans to make a big purchase like a house or to start up a business, you might need to carefully weigh your decision.

Make a Proper Budget to Satisfy Your Financial Needs

There are numerous lenders of different sort in the UK. All these get a large flow of customers due to the need of many to access funds which would satisfy their needs. If your earnings were not in a position to satisfy your needs, it means that you either had an emergency or you are living beyond your means. Whatever the case is, you should be able to learn to live within your means. This always involves making a proper budget. How can this be? Even before you get your earnings, you should have made a budget for it for the whole month until you will get another. This involves writing down on a paper the most important bills that should be met and allocate funds for these. Some of the basic necessities budgeted for on a monthly basis revolve around food and shelter. Transportation is another necessity as it allows you to move from home to work and others in the family to move to wherever it is that they are required to go. With this set, you can allocate other funds to household needs as well as other bills associated with having a comfortable living environment.

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PostFunding-Planning

It is not wise to set all the funds for use within the month. Setting aside savings on a monthly basis contribute to the accumulation of funds that may come to good use in case of emergencies. You should set aside a particular amount that you will be saving on a monthly basis. Having a savings account will prevent you from using such money in case you feel that you are running short of cash. Keeping it safely away will help discipline you into using your cash at hand wisely. If you carefully plan a budget monthly and set aside savings, you will be able to avoid taking up loans on several occasions. You will only find yourself in need of a loan in case of emergencies that require a huge amount of cash. Whenever you take up a loan, you should consider what comes with the loan. It is a sure thing that when you take up a certain amount, you are required to pay much more in return. You will pay the principal amount along with interest which varies depending on the loan type as well as the loan tenure. If you want to consider taking a loan, let it be the last resort after all else has failed.

Make Arrangements to Fulfill All Your Car Payment Obligations

When you take up a car on loan, you are obligated to pay for the car installments as agreed upon on the sale form. However, in life; there are unforeseen occurrences that may destabilize you financially. If this happened to you, would you still be able to meet the car payments as required? It is possible to protect yourself from these emergencies that are never budgeted for but can cause great troubles. The best way to be ready for your car payments without delay due to troubles is in planning ahead for the unexpected. This can best be done by having a financial backup plan in place early. You do not have to wait for the last minute to start preparing for the unknown. You can have savings put aside or a close family or friend who will be able to help you in case of an emergency. Despite the importance of one’s having a financial backup strategy, the truth is that most individuals lack this. Emergencies could render you unable to pay for the car’s installments and thus loss of the car if you did not have a good plan in place to keep the car despite financial hardships. Taking up an insurance policy that covers your health, cases of unemployment or accidents will be of great assistance in case of emergencies.

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Having savings usually comes to be of great help in case of emergencies. It is good to keep at least savings worth 3 months of your expenses or more. In case of an emergency, you will have some cash in the reserve to use in making a purchase. You will not find yourself in need to run to and fro looking for cash while your lender is coming heavy on you. In as much as there is a way you can try to meet car payment obligations, the best alternative remains to buy your car in cash. This requires you to first make savings that are sufficient to buy the car. Despite the fact that you will have little or no savings left on purchase, you will have the peace in knowing that you owe nobody a debt. This also means you have no worry on meeting required installment payments or losing your car for failure to make payments on time.

Selecting the Right Car Insurance Cover

No car runs on the road without insurance cover. This means that if you are a car owner, you need appropriate insurance cover. You need to at least have a basic car insurance cover to run a car on the roads legally. The only exceptions when it comes to insurance cover on vehicles is when you registered yours as an off the road vehicle with the Statutory Off Road Notification. With so many insurance companies in the market and different types of cover, how can you select the best one for your needs? Good news is that it is possible to find an insurance cover that is suited for you at the best price rates. This has been made possible by car insurance comparison sites available online. They allow you to give specifications of the kind of car insurance that you need then allow you to look through numerous insurance providers issuing just what you need. This is usually done at no cost thus you do not have to worry about paying a fee to find your ideal insurer.

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What does your insurer need?

When you have found your ideal insurer, you are expected to give accurate details to the insurer about you and your car. Honesty at the time of registering your vehicle for insurance comes to be of great help at any time that you need a claim. Failure to offer accurate and honest information may lead to decline on your claim form at a time when you need help from the insurance company. If you fail to give the needed information that is valid and up to date, the cover you receive may just turn out to be invalid and of no use at the time of need. Some of the important details that you should disclose to your insurer include: the use of the vehicle, any modifications that have been made on the car, your occupation or trade, any past histories of accidents with the car or any claims made in the past, change in your address, and location where the car is usually parked. These details help the insurer to note down any necessary information that may help towards you getting the best insurance cover. It also helps ensure that you will have a right to claim in case of any mishaps that occur under perimeters specified under the list made.

Types of car insurance covers available

There are three types of car insurance cover available. These include third party insurance, third party fire and theft insurance, and comprehensive insurance. Whatever the insurance you want to pick for your car, it will fall under the three categories.

  1. Comprehensive insurance

This is a high level cover. It covers both you and your car in case of an accident or damage. The best part of this cover is that even if the fault was on your side, you can still file for a claim. Comprehensive covers usually have different other terms depending on the insurer. It is important to read through the cover documents to understand it. For some insurers, you still get cover in case you were driving someone else’s car with their permission. In such a case, the third party cover comes to play a role. When you have the comprehensive cover, you can claim: repairs after an accident or vandalism on your car.

  1. Third party insurance

This is just about the minimum legal car insurance cover that an individual can get. This kind of insurance usually covers third parties but not the owner of the car and the car itself. When using the road and you injure someone else, they are covered by the insurance company. However, in case you are harmed, you will have to cater for the cost you will incur. The same is the case with the car. Any damage on the car is not covered by the insurer. You will have to incur the loss in your case and in that of the car. This is usually an ideal cover when you are not in a position to afford the cost of the comprehensive cover. It is also the best cover when you live in regions that are considered high in crime and also if your cars value is low and you can afford to get another one in case of an accident or damage.

  1. Third party, fire, and theft

This insurance cover takes into account other people. It covers for other people but not you and your car in case of an accident. Its just like the third party cover. The only addition to this insurance cover when compared to third party is that in case of fire or theft, you can file for a claim. The insurer will take care of any costs associated with damages and repairs on the car.