Archive for Car finance

Rites of Adulthood: Buying a Car

In life, there are passages of adulthood that everyone observes – certain rites, if you will. Among them that can be commonly counted include one’s first kiss, graduation from education, or even moving out from your parents’ house to your own. And though we may not have to hunt a lion as the Maasai choose to, a definitive adult moment that most of us agree upon is the complicated process of buying your own car.

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The Philosophy of Saving Money: Funding Big Ticket Purchases in 2013

When it comes to achieving any specific goal or aspiration, much of the battle lies in your mental approach and attitude. While the term positive thinking has been overused to the point where it is considered as more of a sound bite than a vital ingredient for success, it is key to long term attainment and overcoming challenges in pursuit of your aspirations.

Saving money offers a relevant example of this principle, as it is generally viewed as an arduous and stressful task. This negative perception actually restricts you in your attempts to live frugally, however, and it is important to adopt a more positive approach to saving and completely change your way of thinking. While this is not necessary an easy task, it is one that can help you to lay the foundations for long term financial solvency.

Changing Your Approach to Savings: 3 Tips for Success

With this in mind, the challenge that remains is how to practically change your mind set and embrace a new philosophy of saving? Consider the following: -

Lose the Negative Connotations of Saving Money: It is important to start at the beginning, and consider why the process of making financial savings is viewed as such a difficult past time. To begin with, the process of saving money is inextricably linked to reducing expenditure, and this usually means missing out on luxury items or purchases. This instantly generates feeling of negativity, and makes it difficult to commit to long term saving goals. It is therefore important to keep your ultimate aim in mind, as by associating frugal living with the achievement of something close to your heart it can become a far more positive and manageable experience. If you focus on using your savings to fund life insurance with a reputable provider such as Active Brokers Ltd, for example, you can begin to understand the true value of money and its importance in the attainment of goals.

Re-Evaluate the Importance of Money in Your Life: When committing to long term financial frugality, many find themselves faced with a very tangible stigma. As you begin to prioritize money and set about building a significant savings fund, you may well find your motives challenged by the notion that you are being overly materialistic. Deciding to live frugally and develop wealth is little more than an exercise in respecting the value of money, and learning to understand its purpose as a pivotal part of everyday life. There should be no stigma attached to this, as it unnecessarily hinders any positivity concerning saving. This outlook is even more important in the quest to fund big ticket purchases such as a car, which are notoriously costly and demand a committed approach to saving money.

Chart Your Progress Over Time: While these steps strip away the negativity and myths that surround saving money, you must also be prepared to remain positive and motivated over a sustained period of time. Once you begin to save and reduce your levels of weekly expenditure, it is all too easy to struggle and become exasperated as you adjust to your new and forward thinking lifestyle. A good way to negate these feelings is to keep track of your savings progress, and retain a record of the amount that you save and the interest that it accrues. This serves to keep you inspired and focused on your long term goals, whether you are simply hoping to accumulate wealth or invest in a brand new vehicle.

The Bottom Line: Changing Attitudes to Change Your Lifestyle

With a new positive attitude to making savings and an ability to maintain this over time, you can begin to look forward to a more generative financial future. Remember that the key to financial solvency and saving money lies in developing a forward thinking and positive philosophy, and one that comprehends to importance of money in the realities of everyday life.

How to Stay on Top of your Car Financing Repayments

Car financing is one of the most misunderstood and underestimated financial arrangements in the fiscal world. In basic terms, it is exactly the same as a mortgage, as it represents a secured loan that must be repaid over a set period of time. Just as mortgage arrangements demand monthly repayments, so too car financing agreements also force the consumer to commit to a similar schedule of remuneration. The consequences of failed payments are also the same, as over time this can lead to long term debt and even the repossession of your home or car.

How to Effectively Manage your Car Financing Repayments

With these points in mind, it is clear that a car financing agreement is one of the most serious that you will ever undertake. Managing your repayments effectively not only enables you to retain your vehicle and avoid accrual of interest, but it will also help to maintain a positive credit score. If you are looking to efficiently manage your repayments in 2013, consider the following options: -

Create a Detailed Budget that Deals in Cents Rather than Dollars

In the quest to save money and manage finances, it is often your ability to pay attention to detail that determines your level of success. Take budgeting, for example, which is an effective process that can enable you to establish a monthly level of disposable income and effectively manage your money. That said, it is only genuinely effective when you deal in cents rather than dollars, accurately recording incomings and outgoings to create a realistic financial overview. This will help you to make timely repayments without compromising your everyday lifestyle.

Look to Pay Additional Sums When Possible

While car financing arrangements may demand regular monthly repayments, most lenders are open to receiving unscheduled payments. If you come into a lump some of money and would like to use it to reduce your financial liability, for example, you should contact your financing providers and discuss the option of making an additional payment or increasing your monthly burden for a fixed period. This will assist you in clearing your debt quicker, which is a huge positive in an uncertain and volatile economy.

Prioritize Car Finance Repayments in Line with Other Debts

The misunderstood nature of car financing means that consumers can often underestimate the importance of making repayments, especially as they fight austerity and under employment. You cannot afford to make this mistake, however, and your car finance repayments should be prioritized alongside your mortgage and in line with other debts. The process of prioritizing debts enables you to develop a contingency plan in instances where money becomes particularly tight, which means that you can commit your available funds into keeping on top of all secured loans.

The Last Word for Consumers

Managing your personal finances is a fine art, especially during difficult financial times. By being proactive in you dealings, maintaining clarity of thought and prioritizing your debts, however, it is possible to keep on top of your car financing repayments and ensure that you keep hold of your valued property. On an additional note, you may wish to partner with a reputable rescue service such as Breakdown Direct, as this will help you to minimise any repair costs that may undermine your financial standing.

Optimizing your Automotive Investment: How to Get the Most from your Car Financing Agreement

Car financing often represents an understated and sizable commitment, as consumers are forced to repay their burden through fixed monthly repayments. The minimal nature of these payment can distort the perception of your overall liability, which in turn could lead you to underestimate its importance or level of priority. When you consider that the total amount repayable is inclusive of an agreed interest rate and the secured nature of the loan, however, car financing is in fact a serious investment that must be safeguarded if it is to deliver tangible returns.

Optimizing your Automotive Investment: 3 Steps Towards a Brighter Financial Future

With this in mind, it is important that you take every conceivable opportunity to optimize your automotive investment. Consider the following: -

                  • Adopt a Proactive Approach to Car Maintenance: Your car financing agreement will be repaid over a fixed period of time, and it is imperative that your vehicle remains operational during this period. Failure to do this will mean that you are repaying your car long after it is forced off the road, so there is a pressing need to adopt a proactive approach to maintenance. While you can start by learning how to perform rudimentary tasks such as oil changing independently, you should also commit to funding regular inspections of your vehicles key components. While this may cost an initial sum of money, it will protect your investment and any future returns.

  • Stick Rigidly to the Terms of your Agreement: The total sum of your car financing agreement includes the value of the vehicle and fixed interest, but this can be significantly inflated by late or missed repayments. As additional charges are applied when you fail to adhere to the terms of your agreement, you will find that the value of your investment slowly diminishes while your overall liability soars. By striking an affordable deal that allows you to make comfortable monthly payments consistently, you will keeps costs to a minimum and help get the most from your original commitment.
                  • Prepare your Car for Resale: The key to optimizing any investment is to adopt a long term outlook, which in this instance means that you should give careful consideration to your cars resale value. While most models are destined to lose value over time, you can take steps to minimize these losses and achieve the best possible price when the time comes to sell. With this in mind, you should refrain from making bold alterations to your vehicles interior and ensure that any purchased accessories add genuine operational or artistic value. Without this consideration, you may ultimately trigger a decrease in value while also alienating potential buyers.

In Conclusion

While it easy to underestimate the magnitude of your car financing agreement, you should never lose sight of the fact that it represents a serious investment. There are therefore practical steps that can be taken to optimize your financial commitment, enabling you to maintain the performance of your car, reduce operational costs and boost its eventual resale value. On a final note, you should also consider using reputable insurance firms such Autoline to access innovative policies that help to reduce your financial burden.