How does a car refinance loan work?

Whether your goal is to lower your monthly car payments or reduce the total interest you pay on your car loan, it’s important you understand how refinancing your car loan works.

Refinancing your car loan is replacing your current auto lender with another lender. This involves changing the name of the company that is listed on your car’s title, which is a document that details proof of official ownership. That means you will make payments to the new lender until your loan is paid off.

Before checking your rate for a car refinance loan check to make sure that when you obtain a quote it won’t be a hard inquiry on your credit report. This can impact your credit score. When you apply, a lender will look at your credit profile, as well as the make, model, trim and mileage of your car to determine your rate. You won’t need to have your car appraised the way you do when you refinance a home. Lenders will look at the value of your vehicle relative to how much you owe on the vehicle, called your Loan-to-Value ratio.

What else lenders will look for

Lenders will also look at how many payments you have left on your current auto loan to understand if refinancing is worthwhile for both parties. Typically, you need a minimum of a few months to show on-time payment history but after that, the more recent your current loan is the more potential refinancing will have to save you money. The way that many auto loans work is that the majority of the interest is paid during the beginning of the loan. Check the amortization schedule of your current loan to see what percentage of your payments are interest payments.
Once you get your rate, you should evaluate if the rate or terms offered to meet your financial goals. You should also make sure that you understand any additional fees or prepayment penalties so you can understand the total cost of the loans you’re comparing.

The process

Once you select your lender there are certain documents you need to refinance your car loan. For example your insurance and registration cards.

Once everything is verified and approved, you may be asked to complete a Power of Attorney (POA) form so your car title can be transferred from your previous lender to your new lender. A POA shows that you have authorized the title transfer to the new lender.

Your current lender will then pay off your previous lender. When you receive confirmation that your refinance is complete, your new lender will be responsible for your loan. You’ll make payments directly to them and contact them for any questions or concerns.

Depending on how fast you can submit your documents, many lenders will take between a few days to a few weeks to complete the refinance.

Want to check your rate to see how much you could save with a car refinance loan through Lending Club? Check your rate with no impact to your credit score.

 

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

Everything You Need to Know About Excluding People From Auto Insurance

As one’s household grows, so too, does their auto insurance policy. While this is a pretty standard and expected occurrence, it’s important for people with an increasing number of licensed drivers under one roof to realize they have options. Should any of their family members threaten their driving reputation and quotes, policyholders have the option to remove and exclude them from their insurance plans, making auto coverage someone else’s problem and responsibility.

REQUESTING AN EXCLUSION

If you’re a policyholder interested in excluding one or more individuals from your policy, then you need to contact your insurance company and/or agent. Your request will have to be in writing and might also come with additional forms and paperwork, depending on who your insurance company is. It’s also important to note that requesting an exclusion may cause your rates to increase a bit, but some view this cost as a much more affordable expense than the potential damages they might be held accountable for when the dangerous driver(s) in question get in a serious accident or have repeated traffic offenses.

Whom Should I Exclude?

Now that you know how to request an exclusion, it’s important to understand WHO to exclude. You should exclude anyone you see as high-risk, unreliable and irresponsible. Individuals who show no regard for rules and regulations and could care less what happens to your name and record in the process are other obvious options. To help make the choice easier for you, below is a list of three individuals you definitely don’t want on your policy.

Mittens, the Family Cat

While a fluffy, cute member of the family, Mittens also has a wild side with which you are all too familiar. She is open about her late-night romps with her neighborhood friends, often coming home as the sun rises. She’s practically nocturnal! Those crazy hours coupled with her sassy attitude are a recipe for disaster for you and your record, so nip this problem in the bud while you still can — before Mittens brings you down with her.

Your Six-year-old Who’s Going on Sixteen

Six-year-old Ben is your pride and joy. He’s cute and sweet, but let’s be honest — the boy is growing up too fast. Rather than run the risk of him growing up, stealing your car and running away, it’s probably best to exclude him from your policy to keep that from happening. You might not be able to stop him from physically growing, but you will darn sure try to stop him from leaving you!

The Neighbor Next Door Who Thinks He’s ALWAYS Welcome

Sure you let him borrow a cup a sugar once, but does that really warrant unannounced pop-ins or the dreaded ‘surprise I was waiting for you to get home from work’ visit? The answer is obviously no, but that doesn’t stop your too-close-for-comfort neighbor from doing just that and more. A sweet, eager individual with no concept of social norms, this neighbor is here so often you’re worried he thinks he’s actually a part of the family. While you technically shouldn’t have to cover him on your insurance, the lines that surround your whole relationship — and evidently your property— have been blurred. So, just to be on the safe side, you better exclude him. Who knows, maybe one day he’ll get really comfortable and decide to take your car for a spin and get locked up for grand theft auto — maybe then at least you’ll get to cook in peace again!

Reality Check

Obviously, these examples of potential exclusions are extreme and ridiculous, but that’s just the point. Auto insurance exclusions are a serious issue that should be treated as such. They shouldn’t be added to policies willy-nilly and on a whim, but rather after serious thought and consideration has been given to the situation. It can be a pricey and potentially lengthy process that should only be implemented after you have determined there is no other feasible option.

You should only opt to exclude drivers with repeated violations such as driving under the influence of alcohol or drugs, speeding or any other behavior that shows a disregard for the law. It’s also important to note that exclusions can also apply to non-related roommates. Depending on your policy and location, it might be a smart idea to exclude any irresponsible roommates you might have, should they try to drive your vehicle without permission and thus endanger your reputation and record.

We do hope you’re never presented with having to exclude a family member from your auto policy. Keep in mind, it’s only advisable when the said-driver is extremely toxic. Most of the time, excluding a single driver will only lead to higher rates for everyone involved.

You’ll know they are a real risk if they cause you to be subjected to higher rates, or worse, put you in danger of losing your coverage altogether — those are costly expenses worth the fees that come along with an exclusion.

If you are seriously considering opting for an exclusion, talk with your insurer to explore all of your options and alternatives. They should help point you in the right direction for your future.

 

 

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

Is Auto Loan Refinancing Right for You?

Refinancing your auto loan means replacing your existing loan with a new one from a different lender. Your current loan gets paid off by the new lender and you start making monthly payments, hopefully, smaller ones, on the new loan.

If you think your credit has improved since you bought your car, you should look into auto loan refinancing. There’s a good chance you can lower your interest rate and end up with a smaller monthly payment. You might also be able to shave some time off the loan, or go the other way and extend the term of the loan if you’re having trouble making your monthly payment.

What’s the catch? There isn’t much of one: It takes some time, and your credit profile might take a slight hit when you apply for the new loan. However, know two important things:

  1. Most auto loans don’t have a prepayment penalty so refinancing won’t cost you anything.
  2. Submitting an application for refinancing has no application fees, and the funds become available quickly, often within a day.

Why you might want to refinance

The prospect of paying less interest or lowering your monthly payments are the main reasons to consider refinancing. Let’s say your current auto loan has a 10% interest rate, and you’ve been making payments for a year or so. Chances are, your credit has improved and you could now qualify for a lower interest rate, which could lower your monthly payments. If you simply went to your current lender and asked it to lower your rate, it would probably say no. After all, you signed a contract at a certain interest rate and the lender wants its money.

Lucky for you, in today’s competitive market, plenty of other lenders are eager to get your business. When you refinance, you simply go to another bank, credit union or online lender and show it how much you still owe, called the balance of the loan. It pays off your existing balance and creates a new loan; and you start sending your monthly payments to the new lender.

If you meet the requirements, refinancing your car loan for a smaller payment could allow you to put more into savings, investing or a home improvement project. Or you may be able to pay off your car sooner. All of these options are better than pouring your money down the drain by paying more interest than you need to on a car loan.

When refinancing your car loan makes sense

Refinancing your auto loan could be the right move for reasons other than your improved credit. Even if you’re satisfied with your current loan, it doesn’t hurt to see if you can save money on interest. It makes sense if:

Interest rates have dropped. Interest rates fall for a variety of reasons: a changing economic climate, increased competition in the banking industry, even regulatory changes. If interest rates are lower now than when you first got your car loan, refinancing is likely to lower your rate and could help you pay the loan off sooner. Or, it could save you money on interest. It only takes a few minutes to apply for refinancing and see if a new lender — a bank, credit union or online lender — will offer you a lower interest rate.

A car dealer marked up your interest rate. When you got your existing loan, the car dealer might have charged you a higher interest rate than you could have qualified for somewhere else. This often happens to shoppers who don’t check their credit score before buying a car. They are persuaded to take the dealership’s loan because they didn’t shop around for the best interest rates. But you can undo the damage by refinancing and getting a new loan at a lower interest rate.

You can’t keep up with payments. Maybe you got overexcited at the dealership and bought a car that’s really too expensive for you. You might be struggling to keep up with payments. Or maybe you’re facing unexpected financial challenges because of a job change or other circumstances. By refinancing your car loan, you can take more time to pay it off, and this will lower your payments. You should think carefully before taking this course of action: If you extend the loan term, you’ll pay more in interest over the life of the loan. That’s not optimal — but it’s better than damaging your credit by missing payments.

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

HOW CHECKING THE CAR TITLE CAN HELP YOU MAKE GOOD BUYING DECISIONS

Car titles are one of the basic parts of vehicle ownership, and knowing a little about them, and what details to look out for, will help you when it comes time to buy, sell or transfer ownership of a car.

Starting off with an explanation of what a car title is, this article tells you what information it contains, how it may affect your buying decision, how to transfer a title, and also covers different types of car titles you may come across. Whether you’re looking at the paper title while checking out a vehicle in person or viewing its details within an online vehicle history report, titles provide valuable information for your car-buying process.

What is a car title?

A car title is a document establishing the legal owner of a vehicle, whether a person or business, that’s typically issued by a state department of motor vehicles (DMV). It’s also referred to as a vehicle title, certificate of title or pink slip (as car titles in California were once that color).

Important information found on titles

Lender as lienholder, and the registered owner
In many cases, a buyer will use an auto loan to purchase a vehicle. If so, the lender will be listed on the car title as the lienholder; essentially the legal owner of the vehicle. The buyer will be listed as the registered owner along with their address. Once the buyer has repaid the loan, the lender will release the lien. The title and legal ownership are then transferred to the buyer.

If you’re buying a used car, consider checking to see if there’s an outstanding lien on the vehicle, as that would likely spell trouble. Purchasing a car with a lien may mean you’re obliged to pay off the balance on the loan or face the possibility of repossession.

Vehicle identification
Car titles also contain information to identify the vehicle and, while the exact details may vary by state, you’ll generally find at least the make, model, year of production and vehicle identification number (VIN). The gross vehicle weight, motive power (whether the vehicle is gas, diesel, electric or hybrid-powered), license plate number and the mileage of the car at the time of sale are typically listed, too.

It’s worth paying particular attention to the VIN and mileage when you’re buying a used vehicle. The VIN on the title should match the number found in the car, otherwise, another warning sign has been raised because the vehicle isn’t what it seems on paper. Likewise, the mileage on the title should be less than the mileage you see on the car odometer. If not, the odometer reading may have been manipulated.

Transferring a title

On the back of a car title document is a declaration that, once signed, enables ownership of the vehicle to be transferred from one party to another. When the current owner has signed it, the buyer can apply for a new title with the DMV in their own name.

Different types of car title and what they mean

Salvage titles
If a vehicle has been severely damaged in an accident or has other significant problems, the insurance company may deem it a total loss. If that’s the case, the DMV will typically issue a “salvage certificate.” The car can’t be driven, sold as roadworthy or registered as it is, so the insurance company will often sell it for repair or parts. The process varies in different states but, if the vehicle is repaired and passes a state safety inspection, the state can issue a new title with a notation that the car has been salvaged or rebuilt.

According to Edmunds, there’s no definitive answer as to whether you should or shouldn’t buy a car with this “salvage title.” Pros may include a lower asking price than a clean-titled car, but cons include the risk of mechanical problems and potential challenges when reselling the vehicle. “It depends on how comfortable you are with buying a car that has a checkered past,” says the car research website.

Flood titles
A “flood title” means the car was damaged by sitting in water deep enough to fill the engine compartment. In the wake of storms, flood-damaged vehicles have been cleaned up and sold out of state without repairs, and potential buyers may not initially know such vehicles are damaged. The Federal Trade Commission (FTC) recommends what to do to find out if a vehicle is flood damaged, including getting a vehicle history report that includes the vehicle’s title status.

Lemon law titles
Under state “lemon” laws, consumers have the right to a replacement vehicle or a refund from the manufacturer if their new car turns out to be faulty (often due to a warranty defect) and cannot be repaired after a certain number of attempts in a certain timeframe. Some of these “lemon buybacks” may subsequently be offered for resale. About 36 states and the District of Columbia require manufacturers and dealers to disclose that the vehicle now for sale was a buyback due to a defect, according to the FTC. In some states, that disclosure means branding the car title, known as a “lemon law title.”

Where to find quality cars with clean titles

If you’re in the market for a new or used car, consider working with a trusted lender like RoadLoans. RoadLoans is the direct-lending platform of Santander Consumer USA and maintains close relationships with a national network of reputable dealers. These dealers are able to show our customers select, high-quality vehicles with clean and clear titles meeting our standards for age, mileage, and financing.

You can apply for a car loan with RoadLoans online in minutes and get an instant decision. If approved, we’ll recommend a local dealer within your loan documents so you can shop for a car with confidence.

Want to buy a vehicle from an individual? We accept applications for private party auto loans, too. If you take this route, RoadLoans requires a vehicle inspection to ensure the car is approved for sale and meets our

requirements.

Whether you buy from a dealership or from a private seller, all vehicles must come with clean titles and cannot have salvaged, lemon law, flood or frame-damage titles.

More information about buying a car with RoadLoans is available on our website, including details of our process and assistance with applying for a loan in different credit situations, including bad credit.* Visit the blog for topics like how auto loans work, how to lower APR, car loans for first-time buyers and the advantages of preapproved car loans.

 

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

Auto Security: Do Feds Have Our Back?

Consumers should be aware of the possibility of a hacker attack on their cars. We now know that what used to be considered a movie scenario — remote hacking — could be done.

The current reality is that, while a variety of connectivity technologies have been transfused into cars, the equal and opposite security measures are yet to be deployed.

Surely, car hacking is the last thing automakers want to mention as they push the connected cars into the vast consumer disconnect. But government watchdogs in both the U.S. and the U.K. are working to get ahead of the curve and let the public know that they are concerned.

"Whether we're turning vehicles into WiFi-connected hotspots or equipping them with millions of lines of code to become fully automated, it is important that they are protected against cyber-attacks," said Martin Callanan, a minister in the Department for Transport at the British government.

He said this last week when the U.K. agency issued new guidelines, requiring manufacturers of Internet-connected vehicles to put in place tougher cyber protections to ensure a stronger shield against hackers.

It isn’t just the U.K. The National Highway Traffic Safety Administration (NHTSA) in the United States also issued last fall the federal guidance to the automotive industry for improving motor vehicle cybersecurity.

Questions to ask
So should we all sleep well, confident that the feds have our back?

Not so fast, Gracie.

Questions that come to my mind include:
1. Do the guidelines issued by NHTSA and British Department of Transportation have any teeth for security enforcement? 
2. More important, have they gone far enough to suggest effective cybersecurity measures for cars?
3. What are the differences in the proposals of the two separate governments?

As Roger Lanctot, director automotive connected mobility in the global automotive practice at Strategy Analytics, told us, “All of the work and guidance today is advisory vs. compulsory in nature.” Things will become real, in his opinion, “when financial and liability consequences are in fact defined.”

Sources of vulnerability in connected cars are many. Lanctot listed: “diagnostic ports, hobbyist/enthusiasts, dealers, suppliers/supply chain, criminals and terrorists to say nothing of incompetence, bugs, and the management of multiple onboard systems crossing domains with different development standards.”

Facing so many areas inside cars that must be protected as cars morph into always-on computing devices, it isn’t easy to come up with comprehensive guidelines. And yet, “Regulators need to demonstrate they are doing something,” said Lanctot.

How do security experts see the development of government guidelines?

Gene Carter, vice president of products at OnBoard Security, for example, believes that “both the U.K. and NHTSA guidance documents included basic security tenets.”

He explained such measures should be followed by any company connecting hardware or software to the web — including security by design, defense in depth, principles of least privilege, etc.  In Carter’s opinion, however, these are basics. “I would hope that the automakers have learned enough from the IT world’s experiences, and they [should be] already doing those essential things.”

A few experts, including Carter, pointed out that the U.K.’s guidance does not go far enough in the area of software updates after a vulnerability is discovered.

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

Prepare For A Spring Road Trip By Keeping Your Car In Good Shape With An Auto Warranty

A really fun family activity during the spring is a road trip. Although road trips are fun, stress and frustration often occur for families while out on the road. Be sure to keep in mind the following tips in order to make certain that your family’s trip is a great one.

The best thing to do to prepare for a road trip is to get your family car in tip-top shape. Be sure to give the car a good tune-up because there is no worse hassle than experiencing a vehicle breakdown while out on your road trip. Be sure to have an auto warranty for your car so that the necessary maintenance and repairs won’t drain your wallet.

Also, be sure to plan ahead so that during the trip, your family knows what is going on. This can relieve stress and make things go a lot smoother. In addition, make certain that you invest in a GPS so that you get to your intended destination as planned.

However, it is impossible to predict when you will run into bumps in the road such as traffic and road construction. These occurrences are inevitable, so keep calm and don’t stress so that you and your family can enjoy the road trip.

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

How To Save Money On Car Insurance

Are you a driver under age 25? Are you the parent of a new driver? Then buckle up, because you’re about to head uphill with your car insurance rates. While it’s true that auto insurance rates are higher with a young driver on the policy, there are a few secrets to keeping those rates as low as possible. Follow our survival guide to car insurance so that buying a policy for the first time or adding a teen to your existing policy won’t be so scary after all.

UNDERSTAND THAT YOUR RATES WILL INCREASE

Teens and young adults are considered to be “inexperienced drivers” by insurance agencies until they turn 25 years old. And because agencies are assuming more risk with an inexperienced driver, they charge more to have that driver on the policy.

If you’re a parent, it’s hard to say just how much your insurance will increase with a teen driver because so much of it depends on individual circumstances. According to an Allstate agent who spoke with Aceable, for some people, adding a teen to their insurance only increases it by a few hundred dollars, while for others, the cost of the policy can triple. Meanwhile, if you’re under age 25 and buying car insurance for yourself, the price is almost guaranteed to be higher than it would be for someone older. That’s why it’s crucial to compare policies and find out which agency will give you the best discount.

 

KNOW WHEN TO ADD YOUR TEEN TO YOUR POLICY

It’s tricky to know when to add your teen to your insurance policy because it differs by state as well as agency. For the most part, however, you won’t need to list your teen as a driver on your policy until they get their license. It’s a good idea, though, to notify your insurance agency as soon as your teen gets a learner permit. This way, in the event of an accident, you’ll know if they’re covered by your policy.

 

CONSIDER SWITCHING INSURANCE AGENCIES

Adding a new driver to the family brings about many exciting changes. (Less carpool duty for you, hopefully.) During this time of change, you might also consider changing insurance agencies to better suit your needs. Your current agency might not be the most affordable option, and in fact, it might actively be using pricing to get rid of you! Even if you’ve been with the same insurance company for years, now might be the perfect time to shop around.

USE AN AGGREGATOR TO SHOP AND COMPARE PLANS

An online aggregator for insurance companies is the fastest, easiest way to compare policies. There are several available to you.

LOOK FOR EXTRA DISCOUNTS

With a young driver on an insurance policy, you’ll want to scrounge up any discounts that you can. Check with your insurance agent for discounts related to: taking a defensive driving course, making good grades, driving a fuel-efficient car and more. 

Feeling a little more sure of yourself when it comes to car insurance? Good. Trust us: This process is way less scary than you think. And if you do need help, remember that Aceable is here for you every step of the way!

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

10 best car buying tips for 2017

Thinking about buying a car in 2017? Make sure you set aside some time to plan for this major purchase. After a home, a car is typically the second most expensive purchase anyone makes — and settling on a new vehicle is not a decision to make merely over a weekend.

Follow these 10 car-buying tips to make sure you get a car you can afford and will be happy driving for years to come.

1. Determine your budget

While you may have your heart set on a specific car, you won’t be able to take it home unless you can afford it. A good rule of thumb is to spend no more than 25 percent of your monthly household income for all the cars in your household. And this figure should include not only monthly car loan payments but all other vehicle costs, including fuel and car insurance. If you’re not sure how a new car would fit into your monthly expenses, use Bankrate’s home budget calculator to help you determine your monthly bills and necessary savings.

2. Decide: New, certified pre-owned or used? Buy or lease?

Thanks to a large number of lease returns, a wide array of used cars that are about three years old is currently on the market, making buying a used or certified pre-owned (CPO) car more attractive than in recent years. In addition, there are more inexpensive new cars available than ever before, making your choices positively dizzying, regardless of your budget.

You’ll be able to get the most car for your money if you buy used, though you’ll pay a higher interest rate, have a shorter warranty period and won’t know the car’s full history. If you lease, you might get a more upscale car for your dollars, but then you won’t own the car outright and will need to be careful about the lease terms to avoid hefty penalties. A new car for the same amount of money would have fewer features, but you’ll also have a full warranty and pay a lower interest rate, and often you’ll get free maintenance and roadside assistance.

For many, a certified pre-owned car is an ideal compromise, since these vehicles are cheaper than new cars, but they usually have some warranty left and must meet certain criteria to help ensure their reliability and condition.

3. Narrow your choices to a few cars

Start by researching the cars that have caught your eye to see if they fit your budget. Visit automaker websites and independent automotive information sites to assess the features that are important to you, and note MSRPs (manufacturer’s suggested retail prices) and invoice prices. Check local inventory listings to see what is available in your area. Choose cars that would cost at least 5 percent less than your monthly budget to give yourself some room to cover operating costs, including gasoline, insurance, repairs, and maintenance. Print out or electronically save web pages that have pertinent details. Don’t, however, rush off to the dealership for a test drive just yet.

4. Assess your ownership costs

Using your short list of cars, determine if each would fit into your budget by estimating ownership costs. An auto research website such as Edmunds.com or Kelley Blue Book’s kbb.com would provide a general overview of ownership costs for your area, but these numbers will vary depending on your personal situation. For better accuracy, do your own calculation for fuel based on the number of miles you drive annually, and obtain an auto insurance quote on the cars you are considering that would apply to the drivers in your household. Make sure you give the insurance agent the exact model, including trim level, engine and sometimes certain options, to get an accurate quote.

5. Secure financing — before you visit the dealer

Dealers don’t just want to sell you a car, but they want to coordinate the car loan, too. That’s because they typically receive a flat fee or a commission on the auto loans they facilitate, regardless of whether the loan is from the manufacturer or a local lender. So, secure financing from a bank or credit union in advance and compare it with what the dealer offers. Find current interest rates on Bankrate, and check with local lenders, including credit unions, which tend to offer rates that are 1 to 2 percentage points lower, on average, than conventional banks. Many community credit unions are open to anyone living in their area, eliminating the need to work at a certain company or in a specific industry to join. Use CUlookup.com to find a credit union you can join.

6. Don’t assume financing at the dealership is the best deal

While you may be drawn to a certain car or brand because you saw an ad for a low-interest rate, it’s of no use unless you qualify. Only about 10 percent of car buyers qualify for the zero percent or low-interest-rate deals automakers offer. Even if you do qualify, you may be better off taking an automaker’s cash rebate and obtaining financing on your own at a bank or credit union. To find your best deal, first, find the best interest rate you can get and then use Bankrate’s Car rebate vs. low-interest calculator.

7. Learn the invoice price

The research you did on independent automotive information websites should have included the invoice price (for new cars) or wholesale price (for used cars), as well as the manufacturer’s suggested retail price (for new cars) or the dealer’s asking price (for used). While invoice pricing on third-party information sites isn’t 100 percent accurate, it is a good indicator of what the dealer paid for the car, and it’s the best place to start your negotiation. Aim to reach an agreement on the sale price that is close to that number before any discounts are applied, and keep in mind that the dealer needs to make at least a few hundred dollars’ profit to cover the operating costs of running the dealership.

8. Research all possible discounts in advance

You’ve probably seen the ads promoting cash-back deals, and these incentives should be deducted after you negotiate the price. In addition, many automakers offer discounts to students, military members and even members of certain credit unions. These discounts can be stacked and can be combined with the cash-back rebates on the model. Check automaker websites for these incentives in their “Current Offers” sections.

9. Take your time with the test drive

When you’ve completed all your research, call the dealerships you want to visit and make appointments for test drives with the internet or fleet manager. You can find the name of the right person at the dealership website. By reaching out, you’re establishing a relationship with someone who might be less likely to try to strong-arm you into a deal if you decide you are ready to buy after the test drive.

Since most car shoppers these days keep their cars for five years or more, take your time with the test drive to make sure you really love the car. Don’t hesitate to ask for more time behind the wheel to ensure you like the driving experience, and spend time in the car while it’s parked to adjust the seats, experiment with the controls and determine whether passengers would be comfortable and your regular cargo would fit well.

10. Use smart negotiating strategies

When you are ready to make a purchase and start discussing a price, keep in mind all the discounts you’ve researched, and — for the moment — forget about trading in your car as part of the deal. You’ll do better if you negotiate the sale price of your new car and the trade-in value of your old car separately. Make sure you have already researched your current car’s value online so you’ll know whether you are being offered a fair price when a trade-in is discussed.

Once you’ve reached an agreement to buy, be prepared to say “no” to all the extras you may be offered. Instead, say “no” and do the research at home for whatever add-ons interest you, and contact the dealership at a later date to negotiate fair prices for those items. When you are presented with a sales or lease contract, go over all of the details carefully, making sure that you aren’t paying any unnecessary dealer fees and that everything you negotiated verbally is spelled out in writing.

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis

What is Full Coverage? Understanding your Car and Auto Insurance Policy

 

Do you know what the term "full Coverage" actually means when it comes to your Car or Auto Insurance policy? 


The truth is that "full Coverage" is a very loose term that does not have an exact definition. Insurance companies do not offer a full Coverage option for you to pick. The term full coverage is generally associated with comprehensive coverage and collision coverage but can be interpreted many ways.
State Minimum Requirements
Every state in the U.S. has the ability to set its own state minimum requirements for auto insurance. In the State of Florida, The state minimum requirements include 10,000 per person and 20,000 per accident for bodily injury liability and 10,000 in Personal Injury Protection.

Comprehensive
Physical damage for all the things that can happen to your vehicle other than a collision is covered by comprehensive coverage. Full coverage cannot be possible without comprehensive coverage.

Collision
The collision is the coverage that gives you the broadest coverage and is always included in full coverage auto insurance. Collision coverage ensures your vehicle will be covered regardless of what causes the damage. Collision covers damage for all accidents and since collision cannot be purchased without comprehensive coverage anything other than an accident will still be covered.

Additional Coverage that is not necessarily included with Full Coverage 

Towing

Car Rental Coverage

Uninsured Motorist

To be sure you are fully protected from every scenario it is a good idea to talk with your agent and ask him to explain what your policy covers and what optional coverages are available.

Share or Bookmark this post…
  • Facebook
  • Google
  • LinkedIn
  • TwitThis