Benefits of Car Dealers

Buying from a car dealer will give you more security and peace of mind for your purchase. This is achieved by the following:

• Opportunity for warranties on used cars.
• You can buy a new car with manufacturer’s warranty.
• Trusted name and history of the car dealer.
• More rights as a buyer compared to buying through a private seller.

A car dealer is a great way to check prices for new and used vehicles before researching car loans. Because the industry is so competitive you will get a very good idea on prices. Before going to a car dealer you might want to try and check on car pricing websites for a price range on certain models. It is also a good idea to visit a few dealers.

Benefits of Private Sellers

Private sellers are a lot more negotiable than car dealers. You are more likely to grab a bargain from a private seller (where profit margins are not a concern) than a dealer that has to pay rent.

• Private sellers are usually upgrading and just want to sell.
• A Private seller may be more reasonably priced.
• You will have a clearer idea about the car’s history.

Just be cautious when buying privately as you will have less protection under the law. It is a definite case of buyer beware so make sure you get a mechanic to look at the vehicle. It is better to be safe than sorry.

If you can, make sure a private seller has log books or a good record of its regular maintenance. This can at least tell you what past problems have been fixed and any recurrign problems. Remember, a used car will never be perfect but if you know what problems to look out for you can plan for them with regular servicing.

Shopping Around

When purchasing a vehicle it is important to shop around for the best price. Looking at car yards, auctions and car selling websites will give you a range of prices. Depending on the amount of protection of your purchase there are good reasons for buying both private and commercially advertised vehicles.

If you are thinking about trading in your current vehicle you might also get some better deals. A trade in can save you a bit of moneyt as well as the hassle of selling your current car. This can save you thosands in the long run.

When you are shopping for a new car just make sure you look at all of your options. Do not limit yourself to a dealer (unless you only want a new car) and also do not just look at private sellers. Remember that private sellers may be cheaper but this comes with a little bit less security and peace of mind.

Buying a Car Privately or From a Dealer is a post from: Dreamloans Blog

Unless you are purchasing a collectable classic car then a newer vehicle can give you more peace of mind. Unfortunately, a brand new car may be out of your price range esopecially if you are looking at more exclusive models. If you are prepared to sacrifice a little you can save a lot with a used vehicle but do your shopping carefully!

That Wonderful Warranty

The biggest advantage of buying a new car (even with a car loan) is the longer terms of warranty that are avsailable with the purchase, This is often a manufsacturers warranty and will last for a set number of years or for a certain number of kilometres. So if anything goes wrong with your dream car you can either get it fixed or replaced depending on the problem.

Purchasing Limited Warranties With Used Cars

Used cars can also have limited warranties if you buy from a car dealer but these will cost extra. The price will depend on how long you want the car covered for (e.g one year) and sometimes how expensive it is. This is unfortunately the gamble you take when you save money buying a used vehicle.

Tried and Tested Models

The best reason to buy a used car is that the models you are looking at have been on them market for some time. It is no secret that every car has its problems. A vehicle that has been available for some time will have a lot of information about its faults and its selling points.

Issues With Mileage

When you are looking at a used vehicle you will find many cheaper, albeit, higher mileage cars. This can affect reliability of a vehicle. Be sure to have any high mileage vehicle thoroughly checked by a mechanic as many things can go wrong!

Loss of Value Over Time

Any vehicle you buy (new or old) will lose value as soon as you drive away with it. This is because it depreciates with use as well as age. Classic collectible cars are the exception to this rule. Anything that is collected by many people will have an increased demand over time particularly for mint condition vehicles.

Look at your vehicle purchase as something like a television — you will use it for a number of years then possible get a new one. It is not an investment that youy are likely to see a monetary return on. This is why you must purchase something that serves your transport needs.

When choosing your new or old vehicle stick within your budget and get the right information. Just because it is new does not mean there won’t be problems. Try and do as much research as you can about the car and manufacturer as possible.

New Car Smell Versus Old Car Price is a post from: Dreamloans Blog

We are all concerned about debt and finding a car loan but there is such a thing as good debt and bad debt. Good debt is something that either appreciates in value (perhaps a house) or something that you really need like a vehicle. There are some key steps to follow when considering upgrading your car or purchasing your first one:

• Commit to a Savings Plan – If you save regularly before and after you purchase your new car, you can have money put aside to reduce your debt burden.
• Borrow Wisely – Do not be afraid to take out car loans and have a little debt but make sure you get the right advice and loan products suited to your needs.
• Think Long Term – Buying a dream car can save you money in the long term as you will be less likely to get rid of it for another model or make.

Why Should You Save to Borrow?

Any amount of money you save towards a new car will reduce the amount you have to borrow. It also provides back up resources for when you have to make repayments on your loan but cash flow is tight. You may have heard parents or grandparents talking about saving for a rainy day and you and your children should get into the same habit.

Seek Wisdom When Wanting Loans

Yes, being a bit more patient and well informed will definitely save you money when borrowing. Do not limit this to professional consultants but also ask friends and family about their own experiences borrowing and repaying loans. Parents are a great source of information and you can learn a lot from other people’s borrowing mistakes.

Remember that you are definitely not the first to have borrowed money! Brothers or sisters may have gone before you on purchasing that first car. You may have your own experience you can draw on for this dream purchase.

A good mechanic can also give you some great advice before you borrow on a lemon.

The Long and Winding Road

If you purchase your ‘dream car’ then be absolutely positive it is a medium to long term purchase. Cars can depreciate a lot in value once used so it is important to get your money’s worth before selling or trading in. Unless it is a collectible car, it is unlikely that your car will start to be worth more money especially with those extra kilometres on the dial.

Be careful when choosing your perfect car as emotions can often get the best of you. Remember, some car dealers take advantage of that and will use the ‘I want it now’ effect to get your money. Always take a deep breath before you purchase and look at a few different dealers before making up your mind up.

Your Dream Car Without the Nightmare Debt is a post from: Dreamloans Blog

Paying out large sums in rent every month can feel like throwing money away, but only a privileged minority have the financial capacity to buy a house outright. For the rest of us, if we are to join the ranks of the homeowners we have no choice but to borrow money. A mortgage is a big commitment, but it can make sound financial sense as well as giving you the joy of owning your own home. You are going to have to pay for somewhere to live, one way or another. Surely it is better to do it in a way that secures an important asset for you and your family?

Consolidate debt

If you have a number of different credit cards and are finding it difficult to keep track of the various debts you have, it can sometimes be a good idea to take out a loan that consolidates all these individual debts with one loan. This strategy can clear out any confusion and make handling your debts simpler. Make sure you can make the repayments and cut up your credit cards to ensure that you are not tempted to use them again; otherwise you run the risk of simply making your situation worse.

Invest in the stock market

Not all debt is bad. “Good debt” is debt that earns you more money than it costs you. An example of this might be an investment loan, taken out to buy shares on the stock market or through a managed fund. Good debt forms part of a sensible wealth development strategy. As long as you know what you are doing and take professional advice, an investment loan can help you achieve your long and short term financial goals.

Travel the world

It is a big world out there and there is nothing like getting out and experiencing it to add value and meaning to your life. Taking out a cash loan to help fund an overseas trip can allow you to take advantage of opportunities to travel that may not wait until you have saved up enough cash. As long as your do your sums in advance and are confident that you can make your repayments without undue difficulty, a loan could be just what you need.

Buy a car

There’s no getting away from it; cars are expensive. Most of us could not manage our lives without a vehicle so we need to find a way to fund them. This is where car loans come in. A car loan can help you to get the vehicle that enables you to get on with your life, get to work and get your kids to school. It will also help you avoid compromising on quality and safety, which you may otherwise be forced to do.

How a Loan Could Help You is a post from: Dreamloans Blog

That doesn’t mean that the sailing is always going to be smooth however, you still need to have your wits about you. It’s a great tactic to plan your visit well in advance, so you know exactly what you are looking for and exactly what you are prepared to pay.
So, before you hit those used-car yards, read through the following tips and you might save yourself hundreds or perhaps thousands of dollars.

• First of all, do some research on the Internet and choose a car that is going to suit your needs. Make sure it has the right safety features, and make a note of any accessories you want to include, like towbars or roof racks. Fuel consumption is another important consideration and you can check out the technical specifications well in advance so you know what you’re in for.
• Do a budget and set a maximum limit for any car loan you want to take out. Then, visit several lenders and get comparative quotes making sure that you factor in all of the associated application fees and ongoing account keeping fees that may be charged. Once you have found a good deal, apply for a preapproval so that your finances are well and truly taken care of before you reach the used-car yard.
• When deciding on the appropriate car, make sure you visit user review sites to get an idea of what existing owners have to say. You might even find some comments about car dealers there too, so you are forewarned and forearmed. In other words, don’t take the manufacturer’s descriptions of features and benefits as gospel
• Check out the prices of vehicles by going to Internet sites where existing owners are offering their cars for sale. This will give you a very good idea of the prevailing market value and you can use this to negotiate with the car yard. If necessary, you need to be prepared to buy privately, provided you can get a vehicle inspection that satisfies you.
• When you are in front of the salesperson make sure you maintain your calm and do not allow yourself to fall for any trick that calls on you to make an immediate decision. In fact, it is a better option to go to the car dealer without any intention to purchase at all. Go there to get information that you can use when you come back later.
• Never take any notice of the listed price and be prepared to negotiate strongly. If you have done your research properly and know the approximate market value you are more likely to strike a better deal.

Used car dealers will always want to try to arrange car loans for you, but unless they can match the offer you have from your preapproved deal, stand your ground and don’t sign anything.

5 Tips on Dealing with a Used Car Dealer. is a post from: Dreamloans Blog

Every bank has its own range of lending products, but interest rates and conditions are reviewed constantly. What is advertised as a competitive rate one week may not necessarily apply in a few weeks time, so it’s probably a safe bet to ignore newspaper and television advertising!

The problem is, you will never know how competitive your bank is until you get a quote and then compare it with other prospective lenders in the market. Whilst it is true that banks want to offer more competitive products to their existing customers, it is not always possible for them to do so. It is also a false belief that bigger banks can offer better rates. Many banks capitalise on this consumer belief and may actually charge their customers a higher rate than they might obtain somewhere else.

The bottom line is this: don’t believe the advertising and don’t believe the hype. Bigger is not always better.

The only way to ensure that you get the best and cheapest car loan is to find out what other lenders have to offer before you make your decision. Here is what you can do.

• Work out exactly how much you are willing to pay in monthly loan repayments. This might require doing a budget before you work it out but it could be the best few hours you spend in your life. Living within your means gives you peace of mind, so don’t be tempted into borrowing more than you want to, even when the bank tells you they are willing to lend you more.
• Once you have worked out your monthly budget and you know exactly how much you are prepared to spend, it’s time to hit the lending trail and work out exactly what each lender’s loan is going to cost you per month. Remember to include not just the monthly repayments but also any ongoing fees plus application fees, legal fees, settlement fees or documentation fees that the lender is going to charge you. This is the only way you will know exactly how much you have to borrow because the lenders will package all these fees into the loan amount and work out the monthly repayment from that total.
• Don’t be tempted to pay extra per month to borrow that little bit extra. Stick to your budget and make sure your monthly repayments are no more than what you initially decided on.

Going to your existing bank is a great place to start looking for car loans as long as you don’t expect the best deal. Shop around and do the figures first and you might get a pleasant surprise.

Why Your Bank May Not Give You the Cheapest Personal Loan. is a post from: Dreamloans Blog

When you think about it, banks are like any other business and will use every sales technique at their disposal to convince you to buy their product. Although lenders are required to act responsibly when it comes to lending money, they are not obliged to tell you about their competitor’s products, nor are they obliged to offer you an easy way to compare car loans.

You need to know a few tricks of the trade before you can do the proper comparisons and that’s what we are going to discuss right now.

• We have just said that the cheapest interest rate does not necessarily mean the cheapest loan. How can this be? Well, look at the following example to find out why. Say you want to borrow $20,000 over five years from a lender charging 14%. Another lender has the same offer but wants to charge an interest rate of 14.5%. The loan repayment at 14% would be $460 per month. Loan repayments at 14.5% would cost $464.95 per month. But if the first lender charges a monthly account keeping fee of $10, the interest rate effectively changes to 15.01%. That’s why you should never make a decision based upon interest rates.
• The only safe way to work out the cost of a loan to compare with other lenders is to summarise the entire cost over its nominated term. For instance, using the same example above, the first loan at 14% interest would cost a total of $27,600 in repayments plus another $600 in account keeping fees making a total of $28,200. The other loan at 14.5%, without any ongoing fees comes to a total of $27,896.85, a saving of $303.15 over five years. When working out this total, make sure you add in application fees, settlement fees, documentation fees or any other fee that the lender charges. In this way the total amount of money you have to repay can be easily established and you can compare loans between lenders without being misled.
• It is a matter of common sense to pay out your loan as quickly as possible. This saves on interest repayments and the overall total you pay back will be less. But beware of lenders who charge early repayment fees. There is no point paying out a loan earlier if the fee charged is more than the saving you would make. Clarify all fees with the prospective lender before you sign up and choose the terms of your loan with this in mind.

When you follow the above points, your next car loan should be the cheapest one on the market. Avoid any upsells and clarify all costs before you make your decision.

How to Choose the Cheapest Personal Loan is a post from: Dreamloans Blog

It might be easy to say ‘make sure your next car loans that you perfectly ‘, but sometimes it is not that easy.

You need to know a little bit about how personal loans work before you can make your choice, so planning ahead can save you a lot of heartache as well as a lot of money.

Here are some things you may not know about personal loans that will help you to come to the right decision.

• The interest rate charged on a personal loan varies from lender to lender. But the interest rate is also affected by whether the loan is secured or unsecured. A secured personal loan is one where the lender takes an interest in your car so that in the event of you’re not being able to make repayments, they can sell the vehicle to get their money back. An unsecured loan is where the lender takes all the risk. That’s why unsecured loans are more expensive than secured loans; they are simply a reflection of the risk taken by your chosen lender. Where possible, you should always seek a secured loan as this gives you the benefit of a lower rate and a lower monthly repayment.
• Whilst most personal loans allow you to make extra repayments so you can pay the loan off sooner, there may be penalties for paying out the loan too soon. This is a question you should ask before you apply so that you are well aware of all the costs that may be involved. If you are planning to pay a loan off sooner, then you could be better off choosing a shorter loan term rather than facing an early repayment fee.
• Personal loans always come with some sort of application fee. But many lenders are in the habit of charging an ongoing monthly fee. This monthly fee has a real effect on the effective rate of interest you are being charged, so it pays to ask the question about these fees before you start. Some lenders even charge settlement fees or documentation fees, all of which add to the overall cost of your loan. Make sure you ask the question before you sign up so you don’t fall into that trap when it is too late.

It is natural for borrowers to approach their existing bank when it comes to car loans or personal loans for any purpose. Whilst it may be a good place to start, don’t expect to get the best deal every time. Banks change their lending practices, and their interest rates regularly, so what you may have seen advertised last week may not necessarily apply now.

Plan ahead when choosing your next car loan, and get all the information in advance before making a decision.

What to Look For in a Personal Loan. is a post from: Dreamloans Blog

Let’s face it, banks are in business to make money and you should expect them to try a few sales tricks on you to maximise your borrowing and to squeeze every cent out of you they can. Happily, you don’t have to become a victim when applying for your next car loan, in fact you can squeeze a better deal than you ever thought possible! If you do your homework and make sure you recognise the traps when they are presented to you, you will emerge with the best car loan for your circumstances and hopefully save yourself hundreds of dollars in the process.

• It really does pay to plan ahead when you are purchasing a new car and the same applies to your car loan. It doesn’t matter whether you are buying a used car or a brand-new car, the best plan is to get a preapproval from your chosen lender before you start to shop. Naturally, you will need to have some idea about what you will have to spend but before you set your limit, work out what you can comfortably afford to pay on your car loan. By setting this limit you won’t fall into the trap of buying a car that costs you too much. It is so easy to be talked into extras by the car dealer, especially when it only costs a couple of dollars extra per month. Believe me, these little extras soon add up and can leave you with a very sour taste in your mouth.
• Lenders will always try to upsell you when you are signing up for your car loan. Even if you have obtained a preapproval, the real sales process begins when you are in front of the bank officer signing the documents. You will more than likely be offered some form of insurance product that protects you in the event of illness or accident. Some policies also give you added death cover and some will even cover you in the event that you lose your job. Before you fall into the trap of signing up, check your insurance position before you start. You may have other insurance products that give you enough protection and signing up for these extras can only be a waste of time, they can cost you substantially more per month.
• When you are working out which loan is best for you, make sure you ask the prospective lender about any add-on fees such as application fees or ongoing monthly fees. It might come as a surprise to you to find that there are several hundred dollars involved in these fees and could be the difference between choosing one lender over another.

The facts are clear, when you are choosing a car loan you need to do your homework and prepare yourself for the sales pitches that are likely to come your way. Follow the above points and you will come out unscathed.

Look Out For These Car Loan Traps. is a post from: Dreamloans Blog

But don’t be too hasty in accepting the first offer that comes your way. Lenders are experts at putting bells and whistles on their loan products so you need to be knowledgeable before making a decision. Be prepared to do a little bit of home work and you could save hundreds or maybe thousands of dollars, depending upon how much you borrow.

Here are some traps you may not have thought of.

• The interest rate does not tell you the full story. A lender may be advertising a car loan at 14% for example, and a credit union might be offering a car loan at 14.5%. Which one is the cheapest? Well, you won’t know the answer to that question until you ask a few questions yourself. Find out whether there is any ongoing monthly account keeping fee attached to the loan. In some cases a lender will add a monthly fee of, say $10. This will increase the effective interest rate you pay and in the above example with a loan of $20,000, the first lender is effectively charging 15.01%!
• Many lenders will want to sell you add-on products as you go through the signing up process on your new car loan. A typical example is to sell you insurance products including income protection that guarantee to maintain your loan repayments during periods of incapacity or even where you lose your job. Don’t be easily seduced by these products because they can easily cost you an extra $50 a month or more, in some cases depending upon your age and the amount borrowed. In many cases, workers compensation payments or other insurance products you already have will give you adequate protection, so don’t sign up on the spot, do your homework first.
• As well as selling insurance products, it is becoming an increasingly common practice for lenders to offer you extra credit cards to help you with emergency purchases. Although it might be tempting to accept the offer of easy credit, you are far better off avoiding this temptation and limiting yourself to a loan that covers your exact expenses and nothing more.

Just by taking note of these simple facts can save you hundreds of dollars over the term of normal car loans. By not falling into these traps you may even be able to save enough money to buy some of the accessories you didn’t think you could afford in the first place!

Choose your car loan as carefully as you choose your car, be wary of the above facts, and you are well on your way to saving yourself a lot of money.

Don’t Fall For These Cheap Personal Loan Traps. is a post from: Dreamloans Blog