Are Baby Boomers Fueling The Auto Industry?

This past decade has been an especially tough one for the automotive industry. Now, as the American economy is recovering, auto makers are finding that baby boomers are responsible for a very large chunk of their business. According to research from the University of Michigan’s Transportation Research Institute, consumers aged 55 – 64 were responsible for 23 percent of all new car purchases, which those aged 45 – 54 made up 26 percent of the sales.

These figures aren’t just coincidence – there are a number of factors in play which are causing this generation to be such good customers. Here are three reasons that potentially help explain why so much of the automotive market is filled by baby boomers:

1. The Sheer Number Of Baby Boomers

The first reason that it makes sense for such a high proportion of purchases to be made by baby boomers is that there are so many of them. According to studies on the subject, there are well over 70 million baby boomers in the United States. They make up the second largest age demographic in the United States, following millennials born after the year 2000. This provides a foundation for the other potential explanations to even further push baby boomers into the position of top consumers in the automotive market.

2. Financing Is Available For This Generation

For older adults such as baby boomers, financing is often much more available than it is for the younger generations. This is due to the fact that a much larger percentage of baby boomers are financially secure than their less-aged counterparts. Not only have they generally advanced into higher-paying jobs in their careers, but they likely have many more assets stashed away for retirement. The type of loan security that comes along with many baby boomers makes lenders much more likely to approve them for loans with favorable terms. On the other hand, many members of younger generations are feeling the effects of the recent recession more strongly and face greater challenges in obtaining funding for their automotive purchases.

3. They May Be More Optimistic About The Future

To put it simple, this isn’t the first trip around the sun for baby boomers. Despite the economic recovery we’ve seen over the past few years, the younger generations still seems more hesitant about making major purchases than baby boomers are. While many members of generation Y were unsure whether the economy would ever be the same, baby boomers had already been through their fair share of economic downturns. From recessions in the 1970’s and 80’s to the dot-com bust early last decade, they have seen ups and downs and understand that the economy will always be cyclical.

One thing is for sure – baby boomers are one of the biggest factors aiding the recovery of the nation’s automotive industry. Despite the proven statistics, many automobile companies are still targeting their advertisements towards a younger generation X and generation Y crowd. As a growing number of these companies begin to understand the importance of baby boomers in their industry, we are starting to see a shift in focus in order to increase their market share among the nation’s largest demographic. Thanks to the sheer size of the baby boomers, the financial security that they possess and their outlooks on the future of the economy, this generation represents a crucial market segment to automakers.

David Lye is the founder of fincar.com.au. He has always been passionate about cars, finances, businesses and enjoys sharing tips with others.

9 Good Reasons Why 50+ Entrepreneurship is in the Cards For You

If you're in your 50s or even older, you may think that you don't have what it takes to start a business. This isn't the case at all. In fact, in some instances you may be in a better position to be an entrepreneur. Whether you succeed or not is never guaranteed, of course, but there's a good chance that you're going to be able to reach all your goals. Keep reading for some specific ways you will have an easier time of starting a new company.

50+ Entrepreneurship Makes Sense

Here's a look at nine different ways that entrepreneurship makes sense for those who are 50 years of age or older.

1. More Experience - Because you've lived longer, you're going to have more life experience, which is really worth something in the modern world. Your 50s are one of the best times to start a business if you want to avoid mistakes. 
2. More Resources - Being in your 50s or older, there's also a good chance you're going to have more financial resources available to you. Whether this is through savings or some other means, this can make or break a new company. 
3. Bigger Network - Let's not forget a large network of people - which is really useful as well. This can really be useful in a lot of different ways if you're thinking of starting a company. 
4. Personal Support - You're also likely to have more family support if you're in your 50s. If you have children there's a good chance they're going to be grown and in college, which means you have less responsibilities and can concentrate on a business. 
5. Help Available - Additionally, the current job market should be taken into consideration. For example, a lot of recent graduates are trying hard to get a job and looking for good work. Now is a great time to hire fresh faces out of college. 
6. Government Assistance - You may also be eligible to get assistance from the government because of your age. You'll have to check local and state places for this information, but it's not hard to do. 
7. Internet Expansion - The Internet is growing all the time. Now's a great time for people of any age group to start their own business, but people in their 50s have an even better chance to tap into this evolving market. 
8. More Courage - This isn't going to be true for everyone, but there's a good chance that if you've made it to your 50s, you have quite a bit of courage that you can use to overcome obstacles. 
9. More Time - Last but not least, in your 50s there's a good chance you're going to have a lot more time to start a business.

Do you have any other tips for starting a business in your 50s? If so, leave a comment below and let us know. We love to hear from our "slightly older" readers!

Written by: Sara Xiang likes to purchase frozen rabbits online because it's easiest to feed her reptiles that way. When not working on other things, she likes to write articles to market with content online.

How Car Financing Works

When financing a car you will most definitely need the cash to do so! However, there are a lot of people who don’t have the cash needed in hand to finance a car. With that being said, you will need to apply for a loan so that you will have the money to put down on the car. Now, there are various different car loans that are available to apply for. The car loan that you choose or that you are able to get approved for will depend upon your personal situation. 

How the finance process works

The applications for car loan financing are typically the same with few differences depending on the institute that you apply with.

You will first need to fill out the application. In most cases nowadays, people do this online. You will need to add some details about your finances, such as your monthly income, rent/mortgage payments, etc. All of this is needed to determine whether you qualify for the finance loan. Some documents will also be required of you in order for you to be considered for the loan. You will need to provide a driver’s license that is valid and up to date, bank statements, and proof of where you reside at will also be required to present to the institute.

After you have provided all that is needed you will need to wait a couple of days in order for the application to process so that you will know whether or not you have been approved.

Options for financing

The bank is who most people go through when they want to finance a vehicle. You don’t have to go directly to the bank, there is also the option of having the dealership do all of the financing for you.

The repo rate that is posted for the vehicle that you buy will determine what your interest rate will be. Your credit score and how long you will be paying on the loan will also have a lot to do in determining the interest rate that you will be paying. The interest is basically the percentage that the bank adds to your monthly repo rate so that they will earn revenue off of your payments for the car. Good credit will allow you to have the benefit of getting a prime or minus prime. All banks have their own personal interest rates and loan periods, so it is would be wise to choose the bank that you know will be cheapest and most convenient for you with financing.

Leasing instead of financing

Another option that you can go with if you decide that you want an easier route of obtaining a vehicle is leasing one. Even though you would own your vehicle through financing it, it would be much easier and cheaper with monthly payments to lease a vehicle. If you want to learn more about vehicle leasing you can check out some options here at this link by clicking here. Compare the low leasing rates to how much you’d pay to financing a vehicle.

5 Ways to Destroy your Credit Rating

Loans (Photo credit: zingbot)

A credit rating is a tool used by banks to determine whether to loan money to you or not. Your credit rating is calculated based on your credit history, which is contained on your credit file. Your will have a credit file if you have applied for anything involving credit in the past such as: credit cards, mobile phone or internet plans, personal loans, mortgages or interest-free store loans. In order to keep your credit rating high, to increase the likelihood of loans you should avoid these five things.

Credit Defaults

Credit defaults occur when payments for loaned money are not payed back on time or at all. The most commonly credit defaults are: missed mobile phone bills, missed credit card payments, and missed personal loan payments. All missed payments are listed as defaults on your credit file and result in a lower credit rating.

Self-Employment

Unfortunately, people who are self-employed can have a hard time winning favour with banks and other money lending organisations. This is due to the fact self-employment is viewed by these organisations as unstable and risky. If you are self-employed it is important that you keep track of your tax returns and profit-and-loss statements, so when the time comes you can prove that you have sufficient income to make payments.

Discharged Bankruptcy

Discharged bankruptcy is the term used to describe an individual after they have paid off, otherwise settled, all previous debt. After settlement has been agreed upon, the bankrupt individual should then apply for a discharge certificate ordained by the court to prove their freedom from bankruptcy. Technically, a person who is classified as having a discharged bankruptcy, is allowed to take out loans again, very few institutions will take the risk for several years after the bankruptcy.

Being on a Debt Agreement

A debt agreement is legally binding agreement between a debtor (the loaner) and their creditors. In this agreement, creditors will accept a sum of money, which the debtor can afford in order to make up for an unmanageable debt. Proposing a debt agreement is considered an act of bankruptcy and will severely lower your credit rating.

Getting Declined by Banks and Other Creditors

Often an institutions willingness to give loans is influenced by past creditors opinions if the individual in question. If past creditors have deemed the individual to be reliable, then they are more likely to agree to a loan. Alternatively, if past creditors view you as a credit risk, then you are less likely to get a loan in the future, so it’s best to leave a good impression from the start.

Although it is important to avoid doing damage to your credit rating, sometimes it is inevitable. Getting a car loan while you are struggling with a bad credit rating can be difficult, but it’s not impossible. Nowadays there are many options for those searching for bad credit car loans.

Dealing with Debt as a Couple

If you’re currently in a relationship with someone it’s likely that you will have encountered some kind of conversation about money. Depending on how serious your relationship is you may have a joint account, or have agreed with each other about who pays what. If you live together, then conversations about money are a must, as rent/mortgage payments, bills and food costs will all have to be shared fairly. As obvious and as simple as it sounds, it’s not actually that easy to have conversations about money, even with the people you are closest to. It’s for this reason that many couples find themselves in debt, and in some cases one partner has no idea of the extent of it until something goes wrong.

Recent research has shown that women are the most ‘in control’ of the household finances, with 11% more females than males being able to answer correctly when asked the balance of their bank accounts and how much is owed on a credit card. Just 33% of men were able to answer correctly to both of the questions, which is worrying when you consider that 68% of men said that they are in control of the family finances. It seems that communication is not always clear either, as 63% of women said they were the ones controlling the cash.

Gender has no influence when it comes to racking up debt, however, as neither malesnor femalesare discriminated against when it comes to taking on credit. Some couples are struggling under the actions of one of them, whereas others may not yet understand the extent of their partner’s debts. If you’ve found yourself in money troubles, no matter how hard it may be on the other person, you must talk about it. This is especially important where there are joint finances involved, or if you would be at risk of affecting their stability due to owning a home or business together.

Talking through your money issues is not only a good way to hold yourself accountable, but it can also mean you could get some sound advice about how to tackle the problem. Two heads are better than one, and although your partner may feel upset at first, the fact that they know would hopefully prevent you from making it worse by burying your head in the sand. Struggling with problem debt in private can be extremely stressful and may put a strain on your relationship.

According to debt help charity Step Change, 45% of people wait a whole year before seeking help about their money problems. This is a long time to be having issues for, and the stress could take its toll as mental health problems if not kept in check. If you’re struggling with debts, the sooner you can reach out for help the better. This can simply be speaking to your partner or a friend or other family member about it – a problem shared is a problem halved.

6 Ways To Save For Your Retirement

Anyone already in the 60s will know exactly how important it can be to save for your retirement whilst you're still young. Those who’ve made adequate arrangements will be looking forward to finishing work and living the life of luxury, whilst people who’ve made bad choices will start to feel rather stressed about what their future may hold. 

Thanks to the new workplace pension schemes being rolled out across the UK at the moment, most young people should have a more substantial cushion when they reach their twilight years, but that doesn’t mean that keeping some cash aside for a rainy day isn’t a good idea. 

Here are the top 7 ways you could save for your retirement before it’s too late:

1. Get An ISA - The first thing you should all do right away is take a trip to see your banking provider and open an ISA account. These provide high rates of interest and depending on whom you use, could allow you to save anywhere between £3000 and £5000. With no tax to be paid on any of the money accumulated, this makes for a perfect rainy day fund.

2. Clear Your Debts - There’s hardly any point in saving if you’re just going to be forced to hand the money over to cover your debts, so you should work hard to clear these as soon as possible. Just paying a little more than the minimum amount off your credit card can make a significant difference.

3. Join A Private Pension Scheme - Although you should be automatically enrolled in a workplace pension scheme soon, there are no laws surrounding how many of these policies you can take out, so doing some research online and locating a reputable private solution could also be very beneficial.

4. Cut Down On Luxuries - We all want to have a good time whilst we’re of working age and earning the cash, but it’s even more important that you raise the quality of life you’ll experience during the twilight years, and this is why cutting back on luxuries you don’t really need like designer clothes and flash cars would make sense.

5. Make Sound Investments - If you have a lot of money lying around not doing very much, it could be wise to seek out fruitful investment opportunities to increase your pot. I realise that most people have no experience with this kind of this, which is why I’d like to point you in the direction of a blog called MoneyStreetSmart because they have some fantastic advice articles that deal with all elements of personal finance.

6. Stop Moving House - You know; thanks to my family and their lack of foresight, I’d moved house over 11 times by the age of 16, meaning neither my mother or my father have a great deal of money within their properties. Picking one home and sticking to it will provide you with the best opportunity to accumulate equity that can be released when you retire by simple selling your home.

Well, I hope now you understand the importance of making early preparations for your retirement and ensuring you don’t have to rely on the ever dwindling state pension of only £110 per week.

Good luck with everything!