The Many Benefits of Buying a Used Car

By Dave Nolton

If you belong to a middle-income household and are in need of a car, be it your first or second, a great used car is the appropriate choice for you. The market for high quality used cars has increased tremendously over the last few years and with the prevailing economic conditions the world over, this couldn’t be a better time to invest in an operationally sound second hand car be it a Honda or a Suzuki.

Finding a great car within a budget that suits you and does not add unnecessary pressure is one of the greatest advantages of buying a used car. There’s hundreds of cars available within your price range and with a little research you can find one that’s in tip-top condition. If you’re a car enthusiast you can examine the car for flaws and problems. If not, take some along with you who can properly evaluate the car’s condition. Take it for a test run and see it its really as good as the owner or dealer says it is.

Used cars also depreciate less over time as a percentage of the purchase price. New car prices drop rapidly after the first year or two and the money lost in selling a newly purchase car is far more in percentage terms. In addition, an increase in demand of used cars also means that prices are less likely to drop unexpectedly in time of economic hardship.

Auto insurance is one of the regular costs incurred in maintaining a car and can be a substantial amount depending on the car you use. Used cars, due to their market price, have lower insurance premiums. In fact, if you’re buying a second car, you can ask your existing insurance company for an additional volume discount, allowing you to save even more money. Remember, the older the car, the lower the price and hence, insurance payments.

If you’re not to rigid on buying new parts and your car is of an older model, used spare parts can work out to be pretty cheap as well. Keep in mind that this may prove to be the opposite in case of used cars that are more than a decade old. Carefully consider the availability of used spares for your car before committing to buy.

Used cars have become more abundant and easier to find than ever before. Popular newspapers and online classifieds are great sources to locate good deals on used cars. Advanced search features allow you to use price as a primary filter to view cars that fall within your budget. Other options exist to further refine your search by make, model, year of manufacture and other features and key specifications.

In all, used cars are perfect not only as second family cars, but also for an opportunity to save cash. With economic outcomes becoming unpredictable and volatile, its far better to save your money for a rainy day than blowing it on a new car. And if social acceptability is an issue, you’re far better off leading a comparatively stress free life with low monthly payments than worrying about what friends and family might say.

About the Author:

Dave Nolton runs a successful HR Consultancy firm and helps hundreds of applicants to successfully locate and secure jobs in Pakistan using popular printed media and free classifieds.

Step Wise Procedure On How To Donate A Car To Charity

By Herman White

Buying and maintaining a car is becoming more and more expensive and taxing day by day. New cars are becoming costly and the costs of repair are soaring high. It is because of these high repair and maintenance costs, people want to get rid of their older cars soon. Also, the older is the car, the lesser is its saleable value. Hence it is better off to sell your old car as soon as possible.

But selling your car is no less tedious a process. Taking time off for advertising, looking for prospective buyers, attending them, negotiating and getting the whole paperwork done require a lot of effort, money and time. However, you can save your money, time and effort as well as get rid of your old car at a fair market price by donating your vehicle to charity. If you want to know how charitable car donations take place, then following steps can help -

How to Donate a Car – Easy Steps

• Step 1: Prepare the Title of Your Car: It is important for you to note that car donation services only accept cars with a title. Before selling a car to a charitable organization, make sure that the title of your car is prepared and in your hand.

• Step 2: Searching for a Car Donation Service: Now that you have prepared a title of your car, the next step is to search for an organization that facilitates car donation process. Remember, looking for car donation charities is much easy and convenient than looking for prospective buyers. There are many car donation services operating in the United States and looking for the one available in your area can be done in just a click. Look for a car donations service that is classified under 501 (c) (3). It ensures that the car donations service is legal. Verify its status from the IRS Tax Exempt and Government Entities Department.

• Step 3: Filling the Application Form: The next step to donate a vehicle to charity is filling of application form. You can call car donations services at their toll free numbers whenever in doubt. You can fill the application form (available online) by furnishing details.

• Step 4: Get the Car Picked Up: You can rely on the car donations services for an immediate pick-up. This is usually done in 24 to 48 hours time. Make sure that you ask for the acknowledgment receipt.

• Step 5: Claim Your Tax Deductions: The last step is to get your paperwork streamlined. One of the most important documents for claiming deduction is the acknowledgment receipt that contains all information related to your car donation. Almost all car donations services need a time period of 30 days to prepare the relevant paperwork.

About the Author: Car donation is a simple and less time consuming process. For more information on how to donate a car to charity, one can visit carshelpingamerica.org/articles/. This website provides all that one needs to know about car donation.

Car Loan Calculator and Credit Reports

Most consumers today conduct research online before visiting car dealerships to purchase their vehicles. They spend a significant amount of time browsing third party websites such as All About Cars Online, car dealers, and auto manufacturers educating themselves about reviews, prices, and special promotions. Surveys show that once decided, car buyers are also willing to drive over an hour or more to a dealer.

What is unclear is how well consumers are informed about their individual finances and credit report scores. It is always a good idea to get a personal credit report and score before contacting car dealers. Just as important is accessing an online loan calculator to get an estimate of a vehicle loan whether the auto loan is with a bank or dealer financing. Finally, going online to look for financing specials and rebates at the auto manufacturers website is also prudent.

So while being informed about the pricing and performance of various makes and models, don’t ignore your own finances – both the good and bad.

Auto Loan Calculator

TransUnion Credit Report

Experian Credit Report

Equifax Credit Report

<p><a href=”http://www.onlineloancalculator.org/” target=”_blank”><img src=”http://www.onlineloancalculator.org/images/loan-calculator-mini.gif” border=”0″ height=”68″ width=”160″ alt=”Car Loan Calculator.” /></a></p>

Who Can Qualify for a Vehicle Loan Modification

If you are falling behind on your car payment, chances are good that you have at least heard tell of the concept of the vehicle loan modification or other modifications of an automobile loan. The concept of modifying an existing loan is certainly not new, but has come into a new light as the economy continues to crumble. With more and more individuals having a hard time keeping up with their bills, it is not the least bit surprising that so many finance companies, banks and automobile dealerships are concerned with the ability of their consumers to make their payments. By going out of their way and allowing modification of existing auto loan, consumers can be made to feel more secure in their situation and a compromise can be reached in order to keep from repossessing a vehicle.

How to Communicate in Writing With Your Car Insurance Company

Have you ever had a problem with your car insurance policy? Of course you have. Whether it’s questions about your policy coverage or a problem you’ve had filing a claim, at some point or another all of us have to reach out and contact a qualified company representative. Nine times out of ten a phone call will do the trick; however, every once in a while you just have to get things in writing.

Believe it or not, writing a “complaining” letter isn’t as easy as it sounds. Why? Because when you call a company and ask to speak to their representative there’s some give and take, and the two of you can go back over any information you missed when you first contacted them and fill in the gaps. You don’t have that with written communication like letters and emails, so it’s important to make sure there ARE no gaps. Here are some tips from the country’s masters of business communication on how to write an effective letter designed to get the results you want with as little fuss as possible:

Make Sure You’ve Mastered the 5 W’s

When you write a letter to your car insurance company you want to make sure you’ve clearly outlined who was involved, what happened, when it happened, where it happened, why it happened and how it happened. Without these details your insurance agent doesn’t have all the information they need, something that’s either going to delay your resolution or stall it altogether.

Auto Loan Modification Helping Middle America

With the economy crumbling rapidly, there are all manner of individuals looking to avoid car repossession and attempting to reduce their monthly auto payment. For many people in middle America, it is almost impossible to stay on top of all the bills. With a house mortgage, groceries, gas and all manner of other bills piling up, it becomes more and more difficult to make the monthly auto payment. Fortunately, there are alternatives to repossession, including refinancing and auto loan modification. For those individuals who are having a hard time, it can be brutal trying to find a way to keep the car without ruining their credit. Naturally, anyone with any sense at all wants to improve their credit, not destroy it.

Cash for Clunkers Comes to a Crashing Halt?

Subscribe in a reader

Update:

With the one billion running out before the program has even really got off ground, it is clear that this is the most successful recession bailout probably ever! The program was estimated to end in November. As of August 1st, Congress has agreed to keep program going for the next few days. The House of Representatives has voted to pump another $2 billion into the cash-for -clunkers piggy bank but this has yet to be supported by the Senate.

Stay tuned… and now would be a good time to run..not walk.. to your nearest car dealer…

All About Cars Online can help you find a car dealer in your local area quickly.

http://www.foxbusiness.com/story/markets/cash-clunkers-program-suspended-cash-runs/

http://www.cars.gov/

There’s A New Boss In Town

Subscribe in a reader

Steven Rattner, President Obama’s Czar for the Task Force on Autos has resigned from his post of six months after overseeing the Chrysler and GM bankruptcies. Rattner is being replaced by Ron Bloom the number two man on the Auto Task Force. Bloom is also a United Steelworkers union adviser and former investment banker. Bloom has a history of representing various unions. (Source: Reuters)

According to the Wall Street Journal, it was Bloom’s strategy of pressing creditors, reaching concessions with unions and finding new funding sources that has pushed Chrysler and GM through bankruptcy proceedings. Mr. Bloom plans on “monitoring this vital industry and protecting the substantial investment the American taxpayers have made” in the companies.” (Source: Wall Street Journal)

Thus far the federal government has committed over 180 billion dollars to the auto industry (Source: CNN Money). In addition, the feds “invested” an additional 50 billion to GM during its bankruptcy re-organization, resulting in 60% ownership of the new GM.

Mr. Bloom is scheduled to appear before a House of Representatives committee as part of an examination of the Chrysler and GM bankruptcies.

According to a Gallup poll in June, 55% of Americans disapprove of the government investing in GM and becoming the main shareholder. The same poll also showed that only 20% were planning on purchasing a new vehicle from an auto dealer and 49% reported to be less likely to purchase a vehicle from a manufacturer that has declared bankruptcy. (Source: Gallup)

The above public attitudes are not good news for the already struggling auto dealerships and auto industry in general. It is hoped that the new “cash for clunkers” law will buffer some of these negative viewpoints. There are predictions that the law may increase sales by 10%. So far, sales are down approximately 35% when compared to 2008. However, it is expected that auto dealerships will have an increase in foot traffic. (Source: Bloomberg News)

Auto Dealership Closures Continue

Subscribe in a reader

In May, bankruptcy court allowed Chrysler to close approximately 789 or 25% of its authorized dealers. Prior to bankruptcy, there were about 3,181 authorized Chrysler dealerships.  List of Chrysler auto dealer closures

Visteon and Metaldyne, both auto parts manufacturing corporations also  filed for bankruptcy in May.

In June, bankruptcy court approved General Motors plans for the eventual closure of about 42% or 2,600 of its total 6,200 authorized dealers. It is unclear what will happen to approximately 470 Saturn, Hummer, Pontiac and Saab dealers after GM sells off these brands. The company further expects to lose another 10% due to attrition.  List of GM auto dealer closures

Bankruptcy court has made the closure of dealers a much easier process however Ford has also been closing dealerships over the last two years. It is estimated that a total of 600 authorized Ford dealers will close by the end of the decade. Currently, Ford has approximately 3,430 authorized dealers.

American auto manufacturers continue to claim that the closure of auto dealerships will help them become more competitive against foreign brands in the U.S. With an overabundance of dealerships; competition forces dealers to lower prices. Furthermore, dwindling profits have resulted in the inability for many dealerships to make upgrades to facilities and attract quality personnel. For example, Toyota (1,235 dealers), Nissan (1,067 dealers) and Honda (1,030 dealers) have substantially less authorized dealers in the United States.  Auto Manufacturer Information (Source: Associated Press)

It is clear that online marketing will become even more crucial as consumers unable to visit multiple dealer locations within a comfortable driving distance will become even more dependent on third party auto websites for research and dealer specials.

National Automobile Dealers Association and All About Cars Online among others support the bill opposing closure of dealerships (H.R. 2743/ S. 1304). The House of Representatives has inserted language into its annual spending appropriations bill that would “restore the economic rights of the dealers before the bankruptcies, ensure they have the right to recourse under state law and require the two automakers to reinstate franchise agreements before the bankruptcies” (Reuters). The Obama administration has made it clear that it does not support provision and support in the Senate is weak.

The public is encouraged to call their representatives and urge them to support House of Representatives bill 2743 and Senate bill 1304 at (202) 225-3121. The President’s office contact information is (202) 456-1111.   

News Bulletin

1. Cash for Clunkers – the bill was passed by Congress and awaiting President Obama’s signature as of this date. Congress has appropriated one billion dollars for the auto industry stimulus short of its anticipated four billion dollar pricetag. Analysists think that the “cash for clunkers vouchers” will be used long before the November 1st deadline for this program. This means that both consumers and auto dealers must be ready to take advantage of the limited funds immediatedly. The program is expected to begin mid July.

The federal government has created a website with eligibility requirements. Bookmark and check this website often for information: www.cars.gov.

Generally, vehicle purchasers can qualify for a $3,500 to $4.500 credit for car purchases on trade-ins with certain miles per gallon (mpg) criteria. Vehicle mpg can be determined at http://www.fueleconomy.gov/feg/findacar.htm.

Congress estimates that the cash for clunker program could result in the sale of approximately 250,000 units.

Source: Detroit Free Press

2. Automobile Dealer Economic Rights Restoration Act of 2009 – Congressmen Dan Maffei (NY-25) and Frank Kratovil (MD-1) have introduced a bill in the House of Representatives that would:

“restore the economic rights of General Motors and Chrysler car dealers as they existed prior to each company’s bankruptcies, preserve General Motors and Chrysler car dealers’ rights to recourse under state law and at the request of an automobile dealer, require General Motors and Chrysler to reinstate franchise agreements in effect prior to each company’s bankruptcies.”

The bill is supported by the National Automobile Dealers Association and thus far is supported by 101 Democrats and 46 Republicans with increased ongoing support. Other legislative bills are moving through various states and there may be a bill introduced in the senate as well protecting auto dealerships. The constitutionality of such legislation is questionable as federal bankruptcy laws may legally prevail.

The public is encouraged to call their representatives and urge them to support H.R. 2743 at (202) 225-3121.

Sources: Wall Street Journal, National Automobile Dealers Association, and Congressmen Dan Maffei (NY-25)