Used cars make good sense!

Many years ago, buying a used car was compared to buying “someone else’s troubles”. With cars being built to last longer, that’s no longer the case! It’s a matter of knowing how to take advantage of the resources available to car consumers today. You may need to work a little harder, but you’ll save money. And used cars don’t depreciate as much as new cars; you lose 20 to 30 percent of the purchase price when you drive a new car off the dealer’s lot. There are some great bargains to be found!

TAKE ADVANTAGE OF YOUR RESOURCES

Your first stop should be to consult one of the publications such as www.creditlinxcanada.ca that list retail and wholesale values for cars in Canada. This will give you an idea of what cars are available in your price range.

Take a look at newspaper advertisements and magazines that sell used cars to determine what cars are readily available, and which are not. You’ll find imports generally command a higher price than domestics, since imports tend to hold their value longer. However, if you can find a domestic car “loaded” with options and low mileage, it can be a good investment as well.

You may even want to join an organization like the Automobile Protection Association (APA) or the Automobile Consumer Coalition (ACC) or the Canadian Automobile Association (CAA). These offer a number of services, from the repair records for certain vehicles to dealer referral networks and recall information.

• Check the history. Some provinces, like Ontario, require that you get a Used Car Vehicle Information Package (UVIP) or similar document when buying a used car. This gives you the vehicle history and other information.
• Publication and Financing companies such as Credit LinX Canada will provide you with a free carfas report upon request.
• Check for liens. You want to ensure that there are no outstanding liens on a vehicle!
• Does the mileage match the car’s condition? Low mileage and lots of wear and tear on the car may mean the odometer has been tampered with.

DEALER VS. PRIVATE

Companies like CreditLinXCanada.ca will only finance a car that come from a dealer. Therefore if you choose to go private you may have to have the entire value of the car handy, and also be prepared to pay registration fees and taxes at your local MTO.

Although it’s tempting to buy privately at a lower price, you may be better off purchasing a used car from a dealer. These days, car manufacturers have used-car programs that offer special warranties and other extras associated with new car programs, like roadside assistance.

Since the used car industry is booming, most car manufacturers like to keep their finger in the pot, often selling vehicles that have come off lease. Since they want to maintain their reputation, you’ll be more likely to get a sound vehicle.

In some provinces, such as Ontario, you may have recourse through government organizations should your transaction with a dealer go wrong. This recourse does not extend to private sales.

When you buy privately, you could be buying from a “curbsider”. These individuals pose as private sellers, but in fact, are dealers who are operating outside the law. They may try to sell you cars that are stolen, or scrap vehicles that have been welded together.

• Take a road test. It should last for about 30 minutes and approximate your own driving circumstances.
• Have a private mechanic do an inspection. Although inspections are mandatory in most jurisdictions, nothing can beat your own trustworthy mechanic conducting a thorough private inspection.
• Be prepared to walk away. If you don’t like the answers to your questions, or feel you are being pressured, just leave.

by: Robert Rogers

Are You Still Paying Too Much for Car Insurance?

Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.

1. Shop Around

Go to http://www.creditlinxcanada.ca/insurance-quote.html. Fill out one simple quote form, You will be asked basic information about yourself, your driving history, and your car\’s make, model, and year. You will then get instant quotes from at least five car insurance companies. It just takes a couple of minutes, and shortly thereafter, they may email you a no obligation quote. Write down the your reference number, their toll free number, and customer service email address.

Each insurance company ll ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc…

For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you\’re not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.

Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.

• $500 deductible
• $1,000 deductible
• Paying monthly, semi-annually, or annually
• More than 1 car
• No Accidents in 3 Years
• No Moving Violations in 3 Years
• Driver Training Courses
• Defensive Driving Courses
• Anti-Theft Devices
• Low Annual Mileage
• Air Bags
• Anti-Lock Brakes
• Daytime Running Lights
• Student Drivers with Good Grades
• Auto and Homeowners Coverage with the Same Company
• College Students away from Home
• Long-Time Customer
• Other Discounts

2. Saving Insurance Premium on cars you own outright.

If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collision/comprehensive coverage. As a rule of thumb, if the cars value is less than $3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It\’s pretty simple math.

Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.

3. Ask About Insurance Rates in Different Areas

Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.

4. Ask About Getting Other Insurance Policies Together With Your Auto Insurance

Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.

5. A Clean Credit History Can Reduce Car Premiums:

Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a “preferred” customer with lower risk and will be rewarded with lower premiums.

6. Low Mileage Discounts

Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.

7. Group Insurance

Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.

Using all of these tips can save you hundreds of dollars per year, especially when you have multiple cars and multiple drivers in the same household.

With newer, better and more technologically advanced vehicles in the market today, auto repair costs continually rise. For example, if a previously-owned car that you bought three years ago suddenly breaks down and it requires an engine replacement, you would need to shell out as much as $3000 if the manufacturer’s warranty has already expired and you do not have an extended warranty. Repairs for a fuel pump or water pump would cost, on the average, $500. If you are short on cash and you decide to delay the much-needed repairs, your car’s condition might even get worse.  These are the reasons why it is a must for you to ensure that you are protected from the rising auto repair costs. You never know when your car will break down so it will give you absolute peace of mind knowing that you have ample coverage for future repair costs.One of the ways to ensure that you are protected against rising auto repair costs is to get an extended warranty. Take a look at some of the important reasons why you need to invest in an extended warranty for your vehicle.

You’ve just learned that your request for an auto loan with XYZ Bank has been denied. The loan officer explains that the decision has to do with your credit score. XYZ lends only to prime borrowers; your credit score, she continues, places you squarely in subprime territory.Subprime. You’re not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.However, being deemed subprime doesn’t necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan (albeit from a different lender).But first you need to understand the term that defines you. A subprime borrower is one with bad credit. Each lender has its own definition of what constitutes a subprime borrower, but typically, a credit score of less than 620 lands you in this less-than-desirable category. For more information on credit scores, and what sort of factors cause them to suffer, please see Credit Scores Demystified and Understanding Your Credit Report.There are plenty of credit grantors specializing in subprime lending who are eager and willing to loan money to those with bad credit. Naturally, though, there’s a catch. The interest rates for subprime borrowers are frequently quite steep — significantly steeper than those paid by their more credit-worthy brethren.So, now that you understand what your playing field looks like, how can you finesse the game in a way that gets you a reasonably priced car loan? Here are a few tips: