AIA Chiangmai

If you are considering the purchase of your first car or even your next vehicle if you’re not a first time car buyer, you may be concerned about the prospect of financing your vehicle. This concern is not totally unfounded. There are numerous pitfalls that can occur when financing a new vehicle, especially if you plan to use dealership financing. In order to avoid running into these problems, and possibly stalling your purchase read the tips below.

First, understand exactly how important your credit score is to your auto loan application. Even when working with a dealership loan department, be aware that your credit history will be run and your credit score will have a major impact on your ability to obtain an auto loan as well as the terms you are offered. Ideally, it is best to stay on top of things and get an idea of the condition of your credit history yourself before you even step foot into the dealership. Look to make sure there are no errors on there that could be dragging down your score. If your credit score is not in great condition and it is not due to errors, consider delaying the purchase of a vehicle until you can clean it up by paying down some other debts and improving your bill payment schedule; both of which will help to raise your credit score. Remember, a low credit score can prevent you from getting a better interest rate as well as the loan itself.

Many people make a list before they go shopping to ensure they won’t spend more than they intended. A similar technique can help to ensure you won’t spend more than you can afford while car shopping. Make a list of what you’re looking for in a vehicle, the features that are important to you and set a price range you can afford to spend. Keep in mind that you should not plan to spend more than 20% of your monthly income.

Take the time to do your research and understand current interest rates as well as the price range for the features you have determined are important to you. This will help you to be better educated and less likely to be taken advantage of when it comes time to discuss terms of the loan.

Be aware of your options. Find out whether any rebates or special offers are available for the cars that interest you.

Never, ever sign anything unless you have gone over the purchase contract with a fine tooth comb. Far too often, extraneous charges will be tacked on that may not be really necessary. If you’re not sure of the reason for a charge, ask before you agree to pay it.

Don’t allow yourself to be pressured into anything. If you need more time to think, take it. Walk out of the dealership, think about it and make your decision on your own time. Salesmen are excellent at driving up the pressure and creating an inflated sense of ‘time is of the essence’ but that doesn’t mean you have to fall for it.

By doing your research ahead of time, knowing what you want and what you can afford to pay for it while maintaining a cool head you will be in a better position to purchase the car you want without running into any pitfalls that could cost you big in the long run.

Joe Kenny writes for SelectLoans.co.uk, a UK personal loans comparison site, visit us today for information on all loan topics including secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/

Tags: auto, borrow, car, cost, Finance, insurance, interest, lending, loan, personal, purchaseauto, borrow, car, cost, Finance, insurance, interest, lending, loan, personal, purchase

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »

Nowadays, every time you apply for a loan you will most likely be offered payment protection insurance. If you are taking out a particularly large loan, the idea may seem very attractive. These insurance policies will take over repayments on your loans in the event of losing your job or being involved in a medical emergency. But what are the true costs and benefits of this type of insurance? Given that over a billion pounds is spent in Britain on this kind of insurance annually, it is worth asking yourself.

The Cost Of Insurance

The fact of the matter is that the lending industry has become more and more competitive in recent years. With interest rates getting lower and lower, lenders have sought to find out ways of increasing their returns. One of the ways they have come up with is to offer various additional products that accompany the loan, such as payment protection insurance. What may come as a surprise is that payment protection can often cost as much as the loan interest repayments. The payment protection repayments can, incredibly, effectively double the cost of the loan. With such startling consequences, it is imperative that consumers think carefully before opting for such options.

Peace of Mind?

Many people will hold the view that as lives and jobs become more and more unstable, the peace of mind offered by such policies are worth the price. In some cases this is true, but not always. Every insurance policy varies, but one thing remains the same, it is very difficult to get an insurance policy to pay out. You should look very carefully at the fine print of your policy and you will be amazed to find out what actually is covered, and what exclusions and exceptions apply.

For example, unemployment protection may only kick in after a certain period of unemployment, will not count if the unemployment was voluntary, and can require proof that the applicant has actively sought employment, and not turned any down, for the period since losing their job. This will give the insurance company literally dozens of reasons for refusing pay out in most instances.

Don’t Accept The First Quote!

As well as these conditions, you should also shop around. The person you are borrowing from will always offer you a policy, but this unlikely to be the best policy available and a little shopping around will go a long way. You will probably also find your self better terms or terms that suit your needs more closely. Government standards are in place to make sure such policies are clear and in plain language, but complaints are still pouring into consumer protection groups regarding these policies.

The basic advice here is be very careful if opting for expensive insurance policies. Make sure you understand the terms, and that you think they might be of benefit to you, and if you don’t want the policy, just say no.

Joseph Kenny writes for the loan comparison sites, http://www.ukpersonalloanstore.co.uk and also http://www.selectloans.co.uk The latest loans are reviewed in detail at the Loan Store.

Tags: best, cheap, cost, insurance, interest, Loans, payments, policy, protectionbest, cheap, cost, insurance, interest, Loans, payments, policy, protection

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »

So that bucket of bolts you drove throughout high school and college has gasped its last exhaust-filled breath. It’s done. That means you’re in the market for a new car. Soon you’ll brave the treacherous world of the car lot. Be careful, it’s a jungle out there. Eager salesmen hover like vultures, ready and willing to separate you from your hard-earned cash.

Once you decide on a car, you’ll then have to survive the depths of the dealership, where finance managers lurk at every cornerpen and paper in hand, waiting for you to sign on the dotted line. But don’t worry, with a little prior planning, you can get that new car without breaking the bank.

First off, you need to make a decision: buy or lease? If you like to drive a car until it diesand with today’s autos running well past the 100,000 mile markthen you’ll probably want to buy. However, if you see yourself in a different ride every couple of years, then leasing might be the right option for you. In a lease, you’re essentially renting the car for a pre-determined amount of time (usually three years). During that time, you’ll have to keep the car in tip-top shape and only drive it for an agreed-upon amount of miles per year (usually around 15,000). After your lease is up, you can purchase the car at a residual price or start a lease on another car.

Once you decide on buying or leasing, it’s time to figure out how you’re going to pay for it. First, decide how much you can afford to spend on a new car. As a good rule of thumb, many experts suggest that you spend no more than 20 percent of your net income per month on a car payment and other related auto-expenses.

Next, decide how you want to pay for it. Once you’re on the lot and fall in love with your dream car, the salesperson will do everything in their power to get you to finance the car through the dealership. Auto financing is a big money industry, and car manufacturers would be remiss to not take advantage of it. Financing with the dealership is tempting, as it’s the quickest way for you to drive off the lot in your new set of wheels.

But buyer beware, dealers know that buying a car can be a mentally exhausting experience, and finance departments will often add hidden fees in the paperwork for services or features you don’t want (e.g., extended warranties, service agreements, etc.). Dealerships also offer attractive financing deals like rebates or low interest rates, but many of them depend on your credit scorewhich you should always know before you even step foot on the lot. You can check your credit score and correct any errors by visiting www.equifax.com, www.experian.com, or www.transunion.com.

If you want to be a truly empowered car buyer, then secure a loan through a bank, credit union or other lending institution before you buy. You’ll generally get a lower interest rate than what the dealership can offer you, and you’ll essentially become a “cash buyer”. This means you’ll have more negotiating power on the total price of the vehicle, lower monthly rates, and no chance of the dealerships finance department sneaking in any hidden fees into a finance contract. Most lending institutions, upon approving your loan, will give you a check that can be made out to a dealership. Negotiate the price of the car along with tax and licensing fees, and off you go.

Whether you lease or buy, finance through the dealer or through a separate lending entity, always read every contract that requires your signature thoroughly. Make sure the figures in the contract are correct and that you understand all of the charges included. Also, if at any time you should feel pressured by a car salesman or lending agency, walk away. Remember, you are the buyer, therefore you have the power.

Happy hunting!

Joe Kenny writes for the Personal Loans Store offering cheap loans and offer more information on car loans and other loan topics available on site.
Visit Today: http://www.ukpersonalloanstore.co.uk

Tags: auto, budget, car, charges, cost, fees, Finance, insurance, interest, Loans, mobile, motor, payauto, budget, car, charges, cost, fees, Finance, insurance, interest, Loans, mobile, motor, pay

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »