Get Car Finance in Few Simple Steps
Guest Post:
The current economic climate does not allow many of us to buy a car outright. Stats show that over three quarters of people will have to apply for car finance at least once during the lifetime. There are many different methods of financing with even more confusing names often meaning the same thing or overlapping across several lending products. The conventional car finance, also known simply as hire purchase, is the most convenient way to own a used car.
But getting your hands on a good deal is not that easy either; a whole troublesome and sometimes painstakingly slow process is often involved. All this can become somewhat easier if the whole process is broken down into few important steps like planning whether you will be buying a brand new or a second hand car to begin with.
Many people will be surprised what new car or nearly new car they could afford by looking at some leasing deals. But this is another story. Car leasing is not for everyone because in many cases you don’t own the car after the end of the term. When it comes to used car finance, you want to look at the rates ensuring that you get a low APR deal.
There are several factors involved. Firstly it is your credit rating. So you want to make sure you keep your credit rating at a good level. Things like not paying the bills on time and disappearing off the voter’s roll will have a detrimental effect on your credit file meaning that the average APR will be higher. Another thing to consider is the age of the vehicle. Generally, the newer the car, the better the finance deal. By financing good-quality cars, the lenders are reducing the risk, thus, on a 3-year old car you can get a better rate and stretch the payment term further. The chance is that your monthly payment will work out the same regardless of whether you take a newer car on a 4-year term or an old banger on a 3-year term. Which one would you enjoy more?
As for the next step, the borrower needs to pick a reliable loan provider. It is always a good idea to do an small research looking for different lenders and different options. There are a number of different leading institutions available to you including banks, credit unions, dealerships and car manufacturers who provide car finance on pretty reasonable conditions. To gain a good overview of the terms and APRs they’re offering, you’d have to do a lot of running around comparing prices. It’s good if you’ve got loads of time on your hands but my guess is that it’s not quite the case. To save some time, you can check online car providers. Very few of them actually lend money – the majority is just brokers but you don’t have to be afraid of this word as nowadays all the financial brokers have to adhere to stringent laws imposed by the countries where they operate.
The point is that the comparison will have to be done. You choose who is going to carry it out. Will you check the offers of banks and lenders on your own or will you get the broker to do the job for you?
Car finance is being provided by a large number of different institutions but in order to take the maximum benefit of this service, you need to pick the broker or the institution, which is offering the best bargain. The whole procedure might look troublesome at first but if you manage to get a good broker, you might be driving away in your new car in less than a week.
This guest post was provided by Creditplus online car finance broker.
(Editor’s Note: If you’ve decided that financing a car is the way to go, be sure your car payment is one you can afford! A good history of car payments made on time can be a great way to build your credit as well.)
Will You Miss the Canadian Penny When It’s Gone?
Canadian pennies are being phased out. Apparently the USA is considering this, too.
The penny apparently costs more to mint than its value. Therefore the Canadian government says it’s getting pulled from circulation at the end of 2012 and they’re going to phase it out. With all the bad pennies lying around it’ll likely take ages for the penny to go the way of the Dodo and for retailers to be able to round things up or down by the nickel. It’s being said that if you pay by debit or on credit you’ll be able to continue to pay the exact charge. (But paying everything on a debit card is what gets many people in financial trouble because most say they spend less when they ‘see’ how much they’re spending and have less of a chance of living in overdraft!)
Canada isn’t the only country considering making pennies obsolete and several countries have already done so. Apparently, the country is also looking at ways to reduce the costs of minting higher value coins. What happened to money being truly ‘worth’ something? At a point in time there was gold in reserve for all the money in circulation.
What’s going to happen to all the sayings,
“A penny saved is a penny earned”
“A penny for your thoughts”
“My two cents worth”
(In the MP3 generation we’re in my kid didn’t know what I meant when I told him I felt like a broken record! I can imagine someone some day saying “What’s a penny”)
Is this penny situation ‘no big deal’ or do you disagree with the action?
What do you think about this? And is it going to make much of a difference to you?
(Or are you thinking you should melt down all the copper in your house because you’ll make a tidy profit?)
Find the Right Mortgage and Ease Your Financial Pressures
Shopping for a mortgage can be a formidable task, especially if you have never done it before or if you have previously owned a home that was financially underwater. However, thorough research and knowledge can lead you to find a home financing option that can save you money and ease your financial worries. Read ahead for tips on how to find the best mortgage rates.
Research several types of mortgage providers before choosing one.
This is not in reference to an institution’s brand but rather how it operates to provide you with a mortgage contract. One of the most common ways to find a mortgage is to consult your primary bank. However, you should also look into companies that deal specifically with mortgages as well as credit unions. Choosing one of these institutions may offer your more advantages than another. Credit unions, for example, are seen as more reliable because their primary goal is not to make a profit, unlike commercial banks. Also, some mortgage companies use brokers instead of lenders to offer their services, and the difference is bigger than just semantics. Brokers often earn money through fees added to your mortgage contract while most lenders do not.
Ask for a break down of the total cost.
In order to decide which mortgage is best for you, you should obtain both the total cost of the mortgage as well as an individual account of all fees and interest. This will help you decide which mortgage contract is in your best interest (remember, some brokers charge fees that you could avoid paying elsewhere) as well as arming you with negotiating power. You may be able to convince the seller to pay some of those fees instead of asking for a lower price on the home. You may also be able to negotiate with your lender to lower or do away with some of these fees altogether. When you’re ready to meet with a lender, come prepared with information. You can find valuable input for mortgage rates with ratesupermarket.ca.
Pay points on your interest upfront.
If you have a little extra cash on hand, you may want to consider investing it in your home, and there are several ways to do so. You could make more than the minimum down payment, which will take years off of your mortgage terms, thereby saving you interest. You can also pay for points on your mortgage, which will give you a lower interest rate.
Consider the benefits of an adjustable rate mortgage.
If you are purchasing a starter home or plan to upgrade or downsize within the next decade, you may want to research adjustable rate mortgages. These contracts usually offer the benefit of a lower interest rate with the stipulation that the rate can change after a certain period of time. While this is not a wise strategy for homeowners looking to settle in a house for life, having a lower interest rate is an appealing factor for other kinds of homeowners as long as they can sell the home by the time the adjustable rate would take effect.