Understanding the Basics of Vehicle Financing

Purchasing a new vehicle can be a very daunting task. The average vehicle today costs anywhere from $15,000 for a used model and almost $30,000 and up for a new vehicle. Because of this increased cost, most consumers have to have some type of financing. The financing will help with the vehicle purchase by setting up payments per month. It is important for consumers to understand the financing process before shopping for a vehicle. Understanding the lingo and how financing works allows for consumers to get the best deal. Below is a simple guide to understanding vehicle financing. 

Financing

When it comes to purchasing a vehicle, consumers have two options: Direct Lending and Dealership Financing. With direct lending, the consumer is using a bank, credit union or finance company to obtain a loan. The financial establishment will need personal information to see if you qualify. If you do, you will then agree to a set amount for purchase, then an agreed finance charge which is paid over time. once a contract is in place for a new vehicle, the contract is signed and the amount is paid to the dealer. You are then responsible for a monthly payment on your new vehicle.

With dealership financing, you have the option of financing the vehicle directly from the dealer. You agree to the price of the vehicle and a finance amount, plus a charge which is set over time. In most cases, the dealership will retain a contract but sell the contract to a bank, credit union or finance company as an assignee. This group will then accept the payments on your loan. Most consumers find that dealership financing is best because it is convenient, there are more financing options and special programs can be found for saving additional funds during the purchase.

Your Credit

Before purchasing a new vehicle, it is also a good idea to check your credit report. you want to be sure that you have an up-to-date account of your credit. to obtain the best loan, you will need a score of 725 or higher. Always check your credit and work on any issues so that you do not have any problems when purchasing a new vehicle.

Consider a Co-Signer

When financing a new vehicle, you may be in need of a co-signer. A co-signer is someone who signs a loan agreement with you to assume an equal responsibility for the amount owed. You want to choose someone who has a good credit history and one that is willing to help you if you are in need. This is a major obligation and one that the purchaser of the vehicle must take very seriously.

Affordability

Consumers should always be aware of their finances. Take the time to go through your financial records and bills for each month to be able to determine the payment amount you can afford. You never want to spend more than you have or you may end up losing money and your new vehicle. Do a little budgeting and determine a set amount you have for a vehicle payment and stick to this amount. This will allow you to remain comfortable in your lifestyle despite a new vehicle purchase.

Overall it is important to learn the basics. Take the time to learn financial terms and even go so far as to speak with a loan officer to find out what you can afford as well as learn about the process. You will feel more comfortable with a new vehicle purchase by learning more about the process.

About the Author

Ashley Parker has vast experience with purchasing vehicles and likes to spread her knowledge about the financial aspects of a purchase. A great bonus tip is to search for a website of a car dealership so that you can take advantage of special deals and promotions.

Want To Grow In Your Career? 5 Ideas That Will Get You Noticed

Even if you believe you're completely secure at your current job level, know that job promotions and salary increases don't grown on trees. If you want to grow in your career, here are five ideas that will get you noticed and on the road to a higher job title and the higher income that goes with it.

Go Beyond your Current Job Performance

Make sure you know exactly what your particular career description entails in all of its duties and functions. Compare it to what you have been accomplishing on a daily, weekly and quarterly basis. If sales figures or quotas are involved in your job, take that into account as well. Now make an effort to perform those tasks at 110% of your abilities at all times. Management and higher ups will be sure to notice your dedication.

Knowledge is King

Impressing upper management with your increased knowledge and education in your field, can make you a highly sought after team member. Advanced college degrees and certificates in most fields can now be granted by taking courses over the internet. An excellent form of web learning is the system at atrixware.com. Here you will find software tools for excellent e-learning design, delivery and development strategies. Online courses can be customized to meet your needs for best results and understanding.

Take on Additional Duties and Responsibilities

Be proactive in your approach to job requirements and leadership roles. Ask for an additional assignment or chair a committee or meeting without being asked. Volunteer to organize a holiday party, social event or community project.

Learn to Delegate Judiciously

While maintaining a heavier workload for yourself, be sure to learn the fine art of delegating items to fellow employees when necessary. Make sure you are fully bound to the project material so that other workers asked to help carry the burden do not feel exploited or taken advantage of.

Cordiality is the Key

A congenial and cordial tone is crucial to being liked and respected by fellow employees within your office or corporate environment. Show deference to those in management above your ranking, while showing respect to employees below your title or company stature.

An increasingly competitive job market could mean that a fork in the road or a wrong turn on the corporate highway can lead the most experienced employee astray. Especially at a time of corporate downsizing, each individual must make an effort to stand out amongst his or her company comrades.

Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn't writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.

What Will the Health Exchanges Mean for Seniors?

English: President Barack Obama's signature on the health insurance reform bill at the White House, March 23, 2010. The President signed the bill with 22 different pens. (Photo credit: Wikipedia)

The Affordable Care Act will go into effect on January 1, 2014. Most people are trying to prepare for the new law to go into effect. Unfortunately, there are many misconceptions about the law that may prevent people from making informed decisions. The effect that the health exchanges will have on seniors is especially confusing. You will need to know what the health exchanges are and how they will impact you. Here are some things you should know.

Health Exchanges Won’t Replace Medicare

The federal government recently hired Kelton, an independent consulting firm, to find out what seniors believe about Medicare. Their new survey found that 86% of seniors believe that the new health exchanges will replace Medicare. A number of other seniors believe that the eligibility age for Medicare will increase when the law goes into effect.

Many seniors are foregoing healthcare, choosing not to fill prescriptions or looking for a part-time job because they think that they won’t receive the assistance they need. They may even forego getting assisted living such as by visiting a senior neighborhood living in Reading, PA.

Health officials want to make sure that they understand the new law so that they can make better decisions. Here are some of the misconceptions they want to clarify:

• Eligible seniors will still receive Medicare after the ACA goes into effect.
• The ACA will not raise the eligibility age for Medicare.
• They shouldn’t expect to pay more for prescription drugs.
• They can begin enrolling in Medicare in October.

Eligible seniors should still apply for Medicare. However, they may find that Medicare won’t cover all the services they need. You will want to know how to buy private insurance on the exchanges as well.

Tips for Buying Insurance on the Exchanges

Many seniors will want to consider buying insurance on the health exchanges. They may not be old enough to qualify for Medicare yet or would rather have a more comprehensive policy. Here are some guidelines to help you choose.

Understanding Your Rights

The Affordable Care Act carries a number of changes for seniors looking to buy health care. Insurers will no longer be allowed to disqualify them from receiving coverage based on their age or preexisting conditions. However, they will be allowed to charge seniors up to three times as much for coverage.

Tips for Reducing Premiums

The health care law prohibits insurers from setting higher premiums based on preexisting conditions. However, it does allow them to charge higher premiums to people who smoke. You may want to consider kicking the habit if you want to reduce your premiums.

You may also be able to receive lower premiums if you participate in an employer sponsored health plan. You should consider doing so if you are still working.

Look Into Subsidies

You will want to see if you are eligible for any of the subsidies. Anyone who is making less than 400% of the poverty line will be eligible for subsidies. You will want to apply for these subsidies if you are below this income threshold.

Understand the Health Plan Classifications

You will need to decide whether you want to pay lower premiums every month or lower deductibles. This will depend on what services you believe you will need in the future.

You can already offset your insurance premiums by paying higher deductibles and copays. The health exchanges will make it easier for you to choose a plan that meets your needs. You can choose between bronze, silver, gold and platinum policies. The bronze policies offer the lowest premiums but the highest deductibles. Premiums will be higher while deductibles will be lower with the other plans.

About the Author: Kalen is a financial advice writer with an MBA. He shares tips to help people of all ages plan for the future.

5 Great Clubs You Can Join To Liven Up Your Retirement

Work is a funny thing. We spend all of our lives wishing we could get out of it, but when we do, we're not quite sure what to do with ourselves. After 50 or 60 years of dreading Mondays, we're left stressing out over what to do now that we're no longer seeking employment. But, life is not over – not by a long shot. In fact, people call these the golden years for good reason; you can finally spend time enjoying yourself. The key to enjoying your retirement is to fill your day with fun activities and good friends. You can find both in spades at the right club.

So, without further ado, here are five great clubs you can join to liven up your retirement.

5. Lions Club

If the idea of helping others in your free time sounds good to you, you might benefit from a Lions Club membership. The Lions Club offers the framework for volunteers around the globe to help support their local community.

4. Beer of the Month Clubs

beers (Photo credit: uberculture)

Are you more than just a casual beer fan? If so, a beer of the month club might be a club for you to join. Especially during the fall football season, few things are as satisfying as a cold beer and the big game in your favorite chair. This club will take the guesswork out of trying new beers that might not fit your palette. True professionals hand select each beer with loving care. Some great clubs require minimal effort and yield maximum reward.

3. Book Clubs

Book clubs are perfect clubs for retirees for many reasons. First, they offer the opportunity for socialization. Second, they give you something to do when you're not socializing. Relaxing with a great book is an excellent way to pass the time and keep your mind nimble.

2. Potluck Clubs

Retirees who love to cook, and those who love to eat, can benefit from joining a potluck club. You don't have to be the best cook around; you just have to know how to follow a recipe and enjoy the company of like-minded retirees. If there isn't a potluck club already going strong in your area, feel free to start one.

1. Country Clubs

This is one club that usually comes with a membership fee, but the fee may be well worthwhile if you enjoy golf, tennis or socializing with an elite group of your neighbors. Great clubs aren't necessarily expensive. The best club is one that suits your lifestyle and contains friends with whom you can share a good laugh. When choosing a country club, ask for a day pass, so you can mingle with the folks who spend time there.

What to Look for in a Savings Account

More than a quarter of Americans do not have any money in savings, according to research released in June 2013 by Bankrate.com. And nearing retirement is a big incentive to consider your long-term financial stability. 

If you haven't started saving already, now is the time to open a savings account.

To assist you in the decision-making process of choosing where to open your savings account, here is a guide that emphasizes the importance of low fees, limited restrictions, bank insurance, high-yield interest and other factors. 

· Watch for Fees

Beware of hidden fees. Saving accounts may have fine print that lists costs that will take from the money you are trying to save with maintenance fees, activity fees, monthly fees, withdrawal fees and others. Make sure to ask questions -- like whether there is a minimum balance requirement or if it costs to transfer to the account when your checking is through a different bank -- before handing over your money.

A good bank will allow you to put money aside without hassling you with excessive charges.

· Check for Accessibility

Although this account should not have withdrawals taken at the frequency of a checking account, strict restrictions (which may include fees) on the number of withdrawals is not a good sign. Look for an account that will allow you access to your funds in case of an emergency. You will be saved from turning to credit or taking on extra debt. 

· Earn that Interest

Forbes.com recommends finding online savings accounts with interest rates around 0.87 percent or traditional banks with around 0.74 percent. But beware of introductory interest rates that shrink after the first few months.

If you are able to add money to your account on a monthly basis, your bank may offer special rewards like higher interest rates.

· Look into Online Banking

An ad for a promotional savings account in your mail or a solicitation from your bank teller may not give you access to the best savings account available. Shop around, and compare offers from online banks.

Online banks offer special incentives as they try to convert customers used to working with traditional banks. These banks cost less to operate, allowing the banks to offer higher rates of return on savings accounts.

· Research Credibility

The banking industry is not immune to economic fluctuations, and if a bank suffers major losses, your money may be at stake. Before you commit to either an online or traditional bank, do some research into a bank's credibility.

Check to find your bank's Tier 1 capital ratio, which is a measure of strength based on equity and risk. Experts recommend avoiding banks with a Tier 1 ratio of less than 10 percent.

Makes sure your money is insured. FDIC insurance protects up to $250,000 per depositor. If a bank you are looking at does not have this protection, take your business elsewhere.

· Move to the Next Level of Savings

As you learn to put aside a portion of your income for savings, you can move to the next step: opening a savings account that is an investment product. Divide up excess funds into accounts with greater interest rewards and tax benefits.

Financial products to help protect your retirement years include IRAs, 401(k)s and annuities. Once you've saved up a lump sum, an annuity can give you access to regular payments to supplement Social Security payments that might otherwise be your only income during retirement.

Saving money in an envelope at home or letting a balance grow in your checking account may seem like enough to tide you over for the next few years, but truly preparing for the future will require putting in more effort, starting with getting a balance in the right savings account.

Alanna Ritchie is a content writer for Debt.org, where she writes about personal finance and little smart ways to spend (and save) money. Alanna has an English degree from Rollins College.

Financial Future: How does filing bankruptcy affect future finances?

Depending on your situation, filing bankruptcy can either have a negative or a positive effect on future finances. Filing bankruptcy will no doubt show up on your credit report. This will cause many lenders to not lend money for a home, car, or to get a personal loan. Many creditors will ask if you have ever filed bankruptcy in the past. The answer to this question could mean the difference between getting a loan in the future or not. Of course, not all lenders will turn you down if you’ve had a bankruptcy in the past. It will depend on other things like how much money you put down and what the need is.

Negative

Business owners may be negatively affected by a bankruptcy because it can cause lenders not to give you a loan for business needs. This means if you are trying to start a business or restart one or get money for a business need, it may be difficult to get a loan from a lender with a bankruptcy on your credit report. However if you fail to file for bankruptcy, your future financial situation could be much worse.

Positive

Bankruptcy allows you to get your financial house in order if you are surrounded by debt and have no way to pay your debts. Instead of staying in the same situation and having your debts continue to mount. Bankruptcy will help you straighten your finances out and provide a new start. Bankruptcies don’t last forever. They don’t show up on your credit report forever. They drop off just like any other negative mark on your credit report. A chapter 7 bankruptcy will last for seven years on your credit report and a chapter 13 will last for 13 years on your credit report. Which one you choose depends on your individual situation.

Things to Consider

Many people think it’s the worse option available and try to do everything to avoid it. However, bankruptcy can actually be the best thing to do. It can be a lifesaver. And it can help turn your dire financial situation around. Bankruptcy acts as a shield between you and your debts.

For many people, it allows them a chance to start over again with their finances and gets things organized. You credit score will definitely be affected by a bankruptcy. It will lower it but it may not lower it as much as having a pile of unpaid or bad debt on your credit.

The Truth about Bankruptcy

Bankruptcy can be a bad thing to many people. Most people feel as if they have failed if they file bankruptcy. But bankruptcy does not mean you are a failure. Things happen unexpectedly that we are not able to control, such as job loss, income decreasing, health issues, and other personal issues that interrupt our normal lives and can cause serious consequences.

Good Bankruptcy Attorneys can help greatly in the process of filing for bankruptcy. Experienced attorneys can recommend a credit counseling or debt consolidation that’s better than filing bankruptcy or help you file a claim.

About the AuthorAshley Parker has written hundreds of articles on a variety of topics for more than seven years. Topics that she writes on include alternative energy, healthy living, home design, career advancement, travel, SEO marketing and website content.