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Eyeing a New Set of Wheels? Avoid These 3 Common Car Loan Mistakes People Often Make

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Over 6.3-million cars sold in the United States in 2017. CNN Money says, “A record 107 million Americans have auto loan debt, according to data released this week by the Federal Reserve Bank of New York. That’s about 43% of the entire adult population in the US.”

Borrowing money to buy cars—new or pre-owned—is part of the American lifestyle. That doesn’t mean buyers and borrowers are making good lending deals. Too many make too many mistakes when seeking a loan to finance their car.

Avoid these 3 common car loan mistakes:

Forgetting your budget

You must approach the car dealer with a firm budget in mind. Buyers can be swayed by car color, trim, and finish. But, you must have a budget in mind. That budget has little to do with the sticker price on the car. It has everything to do with what you can afford.

You must budget the monthly payment along with your mortgage payment or apartment rent. You must include monthly payments for utilities, food, entertainment, and other debts. So, you don’t want to see extras and add-ons run up your monthly car payment. Our loan calculator will help you budget better.

Buying blind

There is no excuse for not shopping around. You don’t want to be drawn to the dealer’s advertised deals in the Sunday paper when the Internet lets you explore the products on sale at every dealer within miles of your residence.

Other websites, including Kelly Blue Book and Edmunds, offer extensive reviews on the performance of make and model of every car on the market. They also give you the estimated cost of a purchase and/or trade-in. In any case, you do not want to approach a car salesperson without a detailed choice in mind.

Ignoring pre-approval

It’s one mistake to tell the dealer what you are willing to pay each month. It’s another if you can secure loan approval ahead of time. The auto loan interest rate at your favorite bank or credit union are likely to be well below what the dealer offers.

Securing pre-approval for the amount and monthly payment you can budget lets you shop more widely. And, it gives you more control over the purchase. Because car shopping can be emotional and impulsive behavior, separating the lending arrangement from the purchase option gives you more leverage to make an intelligent deal.

Eyeing a new set of wheels?

The Los Angeles Times reports the downside, “New cars depreciate by about 20% as soon as you drive them off the lot and lose roughly half their value in the first three years. The vast majority continue losing value until they’re sold for scrap. Only a handful of classic cars ever appreciate.”

Having said that, most people will still finance their cars with loans. It’s helpful to realize you are really financing a loss when you do your budgeting. That should not discourage your borrowing, but it can shape your deal for the better.

Last Minute Money: Are You Prepared For The Unexpected?

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Have you ever had a rough financial month, where several unexpected expenses came up, leaving you desperately waiting for your next paycheck? Unfortunately, no matter how well you budget, there will always be uncontrollable expenses that arise. The good news is you can better prepare yourself financially with affordable and low-risk lending options that can be accessed when certain expenses occur. So, have in mind some of the unexpected expenses to plan ahead of time.

School

The high cost of education can be surprising to many. While tuition fees can be expensive, they mostly never factor for additional costs such as books, remedial classes, and dorm necessities. Loans from entities such as KingOfKash.com are an effective and simple way to cushion your savings without having to dig into your savings account.

Car Repair

Cars break down when you least expect it, and admittedly, it can be one of the most inconvenient expenses. Not only can you perform regularly scheduled maintenance on your car and ensure that your vehicle is running at maximum capacity, but you can also plan to have unexpected equipment failures sometime in the year which will need a short-term loan to have it fixed.

Medical bills

Just like car breakdowns, medical emergencies tend to arise unexpectedly and need urgent attention. The thought can be frightening if you lack substantial savings or health insurance to cater for unexpected injuries or illnesses. You can keep your family’s health a top priority by making sure you have adequate insurance and a trusted lender in mind to help you meet your financial obligations. Be it a personal loan or credit, you can get money at the time of need without having to wait for days.

Repair Costs

Home appliances such as washing machines, air conditioners, dishwashers and water heaters die at the worst unexpected moment. These repairs or replacements are not only urgent but costly. A short-term loan can be a lifesaver in some repair circumstances, so ensure to factor in the cost of most home replacements which can incur hundreds to replace.

House Payments

You may have everything worked out when the time comes to buying a home, but there’s always something you’re likely to forget. Most first time homeowners are often awed by all the unexpected expenses they have to clear. By having a reliable source of funds, you will be able to settle any recurring expenses such as high utility bills and mortgage payment.

Various demanding situations strike when you’re least prepared. And while you can’t always plan for the unexpected, you can plan to be well prepared. Preparing today for tomorrow’s unknown will put you in a position to respond faster and make better decisions when the time comes. If building up on your savings is not enough, you can explore other credit options to get you the cash you need to get you through even if you have bad credit. Keeping in mind the unexpected expenses highlighted above will help you prepare in advance so you can ensure your budget remains on the right track.

Whole Life Insurance vs. Term Life Insurance

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Determining whether to purchase a life insurance policy can be complicated, and the issue becomes even more confusing as you consider personal factors (such as family make-up and budget) and the different types of life insurance (whole life and term life.) As you assess your needs, you may wonder whether you need the coverage, which type is best for your situation, and how much insurance to get. Before starting, it’s important to understand the differences between and the pros and cons of both whole and term life insurance.

Whole Life Insurance

A whole life insurance policy provides protection for the rest of your life, as long as you’re still paying the premiums. If the policy is still effective when you die, your beneficiaries will receive a sum. This type of insurance is often chosen as an investment of the cash value. These plans usually consist of a death benefit, premium, cash value, and dividends. Most people consider buying whole life insurance when they want to provide money for funeral expenses, leave an inheritance, or save their family from estate taxes.

The Pros

  •          Coverage lasts until the age of 100 instead of 80 which is when term insurance expires.
  •          Your heirs won’t have to pay estate taxes or will have a reduced amount of taxes.
  •          Your loved ones can receive a tax-free payout at your death.
  •          As long as you pay premiums, their amount is fixed, and the death benefit is guaranteed.
  •          The policies build cash value and may be counted as an investment after other options have been maxed out.

The Cons

  •          The primary purpose of whole life insurance is not as an investment, so your returns are sure to be conservative.
  •          This type of life insurance tends to be most expensive.
  •          You may end up paying for coverage you never really need.
  •          The money in your policy doesn’t really belong to you; if you borrow from the policy, the withdrawal is treated like any other loan.

Term Life Insurance

The purpose of term life insurance is to give your family or beneficiaries a temporary financial resource if you pass away. This type of coverage offers a death benefit but doesn’t carry any cash value. The policies usually span a set amount of time, such as three or thirty years. The premium is affected by the age and health of the policyholder.

The Pros

  •          Term life insurance is very affordable, sometimes no more than a dollar or two a day.
  •          The coverage is easy to understand and rarely include an exam plan.
  •          This type of insurance can be converted to a whole life or universal life plan.
  •          Many add-ons are available for customized plans.

The Cons

  •          These Columbus life insurance policies will expire when their terms are up. The annual renewable term is much more expensive, and the cost continues to increase at that point.
  •          There’s no savings or investment option with this type of policy.

How to Choose

The best way to determine which type of Columbus life insurance is best for you and your loved ones is to talk over the options with an agent. Some customers begin with coverage they can afford and adapt their policies to meet changing needs. Which type of insurance coverage sounds best for your situation?

How to Finance a Car without the Stress and Expense

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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.

Handling Negative Feedback With Professionalism

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Negative feedback is something all professionals deal with, from large companies to sole traders. Not everyone is going to love you, your products and services, regardless of how talented and well-respected your brand may be.

While it can often be tempting to react badly to criticism, negative feedback often presents an opportunity for valuable insights and to improve your business as a whole – but you have to know how to deal with it. To help you out, here are a few tips for handling negative feedback with poise and professionalism:

  1. Don’t take it personally

This is, of course, easier said than done. The main thing to remember with negative feedback is that it’s just an opinion, and it may not necessarily be the truth. In the business world most feedback is based on your work, products or services so it’s best not to think of negative comments as a reflection of you as a person. Instead, treat it as an opportunity to learn, and not as an attack on who you are as a person.

  1. Never respond in anger

Whenever you get a negative review, or angry email, letter or phone call, it’s important that you never respond in anger. If you’re dealing with negativity over the phone simply listen to the comments, let the caller know you understand their concerns and tell them when you will get back to them. The last thing you want to do is to respond to a caller or reply a message or email when you’re angry. Anger can affect your thinking and judgment causing you to respond in an unprofessional manner.

  1. Don’t retaliate

If a customer, client or competitor makes comments that you don’t like or agree with, do not fight them. Retaliating and arguing with them will only make the situation worse. Listen to what they have to say and think about whether it is valid or not. If valid address it on a professional level. Do not trade insults or sling mud, if they wish to take that route let them it’s up to you to be the professional one.

  1. Distil and understand the issues

When faced with negative feedback it’s important to properly understand where it’s coming from and what it’s regarding. Take some time to process what your clients or customers are displeased with. Once you identify and understand the problem you’ll be better equipped to find a solution.

Learn From The Expert: Last Minute Tips On How To Cut Your Tax Bill

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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.

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