Should I Put Money Down on My Car?

The best way to buy a car is to pay cash. Financing a car is usually a means to buy more car than you can actually afford.

With that disclaimer, I know the vast majority of people won’t pay cash for their cars. It takes time and discipline to save up the money, you have to buy less car than you could if you got a loan, and you have to wait.

If you are dead set on financing a vehicle anyway, let me encourage you to make as much of a down payment as you can afford.

There are at least three good reasons to make a down payment:

The first is called being upside-down or buried in your car. This just means you owe more than your car is worth. If you put money down, you put yourself in an equity position that makes it possible to sell or trade-in your vehicle at any time. If you lose your job and realize you don’t really need that Lexus, you can sell it to Carmax right now for more than you owe because you put money down.

Another reason to put money down is that banks like to see cash. If your credit has a ding or two, the bank is a lot more likely to give you a loan with more competitive terms if you show you are committed. The risk of you not making a $350 car payment when you put $5,000 cash down is very low.

Finally, dealers like cash. If you want to wheel and deal to get the best price possible but you have no money in the bank, you have one less negotiating tool going for you. You are at the mercy of the dealer and the bank.

Dealers have to do extra work and pay extra fees for customers who are higher risk. Depending on the bank, simply not having money down could be enough to put you in high risk territory. The dealer is thinking of the costs of getting your loan done and paying the fees on top of the minimum profit he has to sell the car for to make money. If you come to the table with a large down payment, you can quickly change the dealer’s perspective.

Cash is still king. For the reasons above and others, let me encourage you to save up a down payment for your next car purchase. You’ll be more secure in your car, you’ll get better terms from the bank, and you’ll get a better deal at the dealership. Why wouldn’t you put money down?

Keep a Long Distance Driving Kit in Your Car This Winter

Whenever driving a long distance especially on a motorway you need to be fully alert and prepared to deal with anything out of the ordinary such as long queues or adverse weather conditions. These are just two of the factors which will affect your driving and if you aren’t paying attention then you could have an accident.

Driving long distance can put considerable strain on your car. It’s important to not only have breakdown cover but also to carry a small kit of ’emergency supplies’ on board. This should contain a few things to keep you warm and nourished if stranded whilst waiting for assistance.

A blanket and warm clothing such as a coat are vital. If the weather is particularly cold, you shouldn’t rely on your car’s heaters as your battery may run flat. Small items of high energy food are also recommended as well as drinks to keep you hydrated.

Even though there are emergency phones dotted along the motorways you may be a few miles away from the nearest one so having a fully charged mobile phone is another good idea. Make sure you have any important numbers such as your breakdown cover provider stored in your phone so you can easily dial them (just in case you don’t have the relevant documents stored in your car).

Finally you should make sure that you have a small set of car tools, your car should have a car jack and tyre wrench for replacing a flat or punctured tyre but there are some other tools you should consider investing in such as roadside flares, warning triangles and if the weather is snowy then a collapsible snow shovel can help clear snow that has gathered around your tyres.

There are other items you could include but remember that you don’t want to add any unnecessary weight to your car as this can increase your fuel consumption and cost you more money.

Debt Management Tip To Help You Lower Your Car Payment With A Bad Credit Refinance Loan

When you first buy a car there is a lot of pressure on you to make big decisions under pressure. These choices can be dangerous for you if you are not careful. If you have fallen victim of taking a bad deal on a car loan do not worry. The option to refinance is not as bad as you think.

Remember this when ever you buy a car again. If you are unsure if you are happy with the terms of your car loan at the dealership. Do not opt to take any kind of insurance plans they offer you with your loan. If you decide to refinance your loan at a later date. That insurance was nothing but a waste of money to you. The only protection that you need with a new car loan is gap insurance. You can ask your car insurance company for this protection instead. It is much better to take this kind of protection from your car insurance company anyway. This is because in the event that you are in a car accident and they total your car. It is a much faster process when the car loan company doesn’t have to wait for a second insurance claim to be processed. This can mean you will have to make 2 car payments for the first month that you own your new car you get to replace the one you wrecked. Or it could mean you won’t have a car at all until both insurance claims are processed. This can leave you waiting a month or longer to buy another car.

So remember that your car loan should just be used for a loan and that is it. You don’t need all the fancy add ons they offer you most of the time. Be stern about this when buying a car because there is a lot of pressure on you to take this coverage from the dealer. This is because they make more money off you when you take it obviously. Knowing this will save you a lot of money on your next car loan.

If you are having trouble making your car payments and you are over financed. Meaning that you owe more on the car then what it is worth. You can always apply for a bad credit refinance loan if you are in a jam you don’t think you can get out of. There is several selections for you to pick from to refinance your car loan with bad credit here. If you can’t get approved by one then move on to another one. That is why there is more then 1 link for you to pick from. All auto loan requests within a 14 day period count as 1 inquiry on your credit report too. So don’t think that just because you are applying for all these loans that you are adding more then 1 inquiry per day to your credit report.

If your not in a terrible jam and you can afford to make a few more payments on your car before refinancing. Be smart and get your credit repaired with a professional credit restoration company, before trying to refinance. This can save you thousands of dollars in fees and interest. Easy credit repair gets all the bad items on your credit report removed legally. This only takes a few months for them to get your credit to the point where you can qualify for a good credit auto refinance loan. This is the best way to deal with an over financed car loan you got at a bad interest rate. Even if the new car loan company won’t give you all the money that you need to refinance your car. Take the remaining balance and put it on a 0% balance transfer credit card. You can find information on where to apply for one of these credit cards in the link below for free debt management advice. Select borrow money from the main menu and everything you need is right in that section.