Budgeting

Car-buying can be an intimidating endeavour for anyone, much less someone who has never dealt with financing. With the never-ending tales of being ripped off, or worse yet, being sold a lemon, no wonder consumers fear shopping for a car in a market where we can be sold on anything. From unscrupulous lenders who trick consumers into dubious financing contracts to lenders who charge excessively high interest rates, vehicle buyers have a lot to be concerned about.

However, shopping for a car does not have to include the stress and expense characterised by these purchases. In fact, by going into financing informed with the information needed to secure an appropriate loan you remove many of the hassles associated with car shopping. In addition, by having the requisite information handy, you can secure a loan that will land you a steal.

Keep reading to learn how you can alleviate the stress and expense of car-buying to make your next vehicle purchase as straightforward as possible.

Financing

Before shopping, peruse the various financing options available. Today, you can finance a car through a credit union, a bank or any financing company. However, by shopping around, you guarantee that you will secure the best possible rate. While traditional methods of financing are great, also check out alternative financing options. You can finance a car from Latitude Finance and be given rates that are just as competitive as conventional financing companies. By going into a financing office having already exhausted all avenues of financing, you can rest assured that you are securing the best loan for your budget.

Pre-Approval

Consider getting pre-approved for a loan before actually shopping for a car. This benefits you in a couple of ways. The first benefit of getting pre-approved for a loan is that you know exactly how much you have to spend, which is great in terms of limiting your choices. This also cuts down on the amount of time you would spend shopping for a car.

The second reason getting pre-approved is great is because it streamlines the car-buying process in that you have already applied for the loan and they have given you an amount you can reasonably spend. This translates into getting you out of the dealership a lot sooner than with other financing methods. For the most part, the pre-approval alleviates many of the stresses associated with car-buying.

Down Payment

In the distant past, before modern technology made financing so accessible to consumers, a phenomenon called the down payment made car-buying a less stressful task. Today, many zero down loans have made it affordable to purchase a vehicle. However, there is something to be said about having money set aside for a down payment.

A down payment can alleviate the stress of securing financing for a couple of reasons. For one, it allows you more purchasing power as it relates to the various types of vehicles you can purchase. Then, it also gives you some leverage as it relates to your overall interest rate and monthly payment. A down payment can drastically reduce the amount you pay to the financing company every month.

Budget  

Go into the car-shopping experience with a budget. Your budget sets the ceiling for how much you can actually afford on a monthly basis. Additionally, this budget will limit the vehicles you can actually afford to purchase, which saves you time in the long run. Things to consider when making a budget include monthly payment, insurance, maintenance and fuel costs. By going to the dealership with a budget, you alleviate the stress of knowing what you can actually afford.

Shop Without Fear And Intimidation

The biggest hurdle to stress-free car-buying is related to the financing and expense of purchasing a new vehicle. However, by taking a multi-pronged approach to this experience, even shopping for a car can be enjoyable as opposed to stressful, and worse yet, expensive. For the most part, a little preparation before shopping will alleviate any stress, and you can actually be enthused by your new purchase.

Even though the deadline for filing 2017 self assessment returns online is long past (31 January 2018), it is never too late to get information that can help for subsequent ones. Of course, if you missed the deadline, you may have to pay a penalty, unless you have a really good excuse, such as a long stay in the hospital (with hospital records to back it up), but for subsequent tax filings, the following minute tips from personal finance experts will help you cut your tax bills in the future.

Cut your tax bill when you donate to charity –

If you are an additional or higher rate tax payer, you can legally cut down your tax bills by being charitable. You are essentially killing two birds with one stone. Donating for a good cause and slashing your tax bills. When you add up your charitable donations on your tax returns, you can claim tax relief. Mathematically, you can save 25p on every £1 charity donation. Not only can you earn tax relief from major charities, you can also lower your tax bills by sponsoring minor events like scouts or brownies at your children’s school. All in all, you get to save by giving.

ISAs –

If you are a basic taxpayer, you can earn as much as £1,000 interest on your personal savings without paying one penny in tax. The same thing applies to higher rate tax payers, you can earn up to £500 in interest without paying tax. However, you may need to check the tax certificate for your bank account. The same thing applies to investments. You are entitled to £5,000 a year in tax free dividends if you own any investments outside your pension or personal savings account, although this figure will reduce to £2,000 from April 2018. You can actually save up to £20,000 every year with an ISA without having to pay capital gains tax or income tax.

Better mortgage alternative –

The new property and mortgage rules that will take full effect within a few years will see landlords progressively lose valuable tax relief on their buy to let properties mortgage costs. Before the introduction of this new rule, landlords only have to declare rental income after they have paid mortgages, and this system help cut tax bills by thousands of pounds. But, since April 2017, the method of declaring rental income has changed; meaning a lot of landlord will be expecting significant increase in their tax bills. However, because mortgage rates have dropped in recent years, landlords may be able to make savings by exploring other mortgage opportunities. Additionally, landlords can talk to tax experts to ensure they are claiming all they can against their rental income.

Self employed allowable expenses –

If you are self employed, you can slash your tax bills by taking note of what is called allowable expenses. For every £1 you spend on ‘expenses incurred exclusively in the performance of your business’ you can get 20p back in your wallet. For example, if you work from home and have to travel to London for a business meeting, you can claim travel costs which can cover food and drinks. Unfortunately, the taxman will not appreciate 5 star restaurants in your fillings, but the odd meals and drinks can add up. The secret is to keep track of all these seemingly insignificant expenses. One way to do this is by ensuring you get a receipt every time you carry out these little trips.