Car Loans

A customer says to the car salesperson "I'm paying cash, so I expect a bigger discount!"   The car salesperson nonchalantly shrugs and says "It doesn't matter if you pay cash or get an auto loan, we get our money either way!"
The REAL TRUTH is, the car dealership WILL try to talk you into letting them arrange car financing for you!
You see, the finance office in a car dealership is a Very Lucrative Profit Center!  Very often a car dealer will make more profit from the car financing than they do from the car sale itself! Each car dealership has a Finance Office.  The larger dealerships may have several. The person in charge of this office is called the Business Manager, or the F & I Manager (F & I for Finance and Insurance) or simply the Finance Manager.   This person will usually look and act more like a conservative banker than a hard core salesperson... but don't be fooled!
To sum it up succinctly, the Finance Manager's sole purpose is to see to it that you walk out of that dealership with the HIGHEST Monthly Payment Possible!
This person will be presented to you as someone who will arrange an auto loan for you at the lowest rate possible...as if they are looking out for your well-being. . . but don't believe them for a second! Even if you are paying cash, or arranging your own car financing, you still have to sit down with the Finance Manager, because he or she also does the paper work and title papers associated with the deal!  So there is no avoiding this person!
So Be Prepared!
And if you are paying cash, or have arranged your own car financing, either through a bank, a credit union or through the Low Cost Financing Alternatives right here on this website, any Finance Manager worth his or her salt will try to talk you out of it by telling you all the so-called advantages of letting them arrange the auto loan for you!  They will have at their disposal computer programs and charts designed to convince you!  Don't fall for any of it!  It's All Crap!
The dealership, and consequently the Finance Manager who by-the-way, works on a commission, make their money in the Finance Office primarily in four ways: 

1.  The Car Financing Itself.  The banks will Kick-Back a certain percentage of the Amount Financed to the dealership!  The higher the interest rate the F & I person can talk you into, the higher the Kick-Back!  The Kick-Back could be as high as 10% or MORE!
This means that on a $20,000 loan, the auto dealership could be making as much as $2000 or More off of you just for arranging the auto loan!  And guess who's paying that extra $2000?
Any ideas?
YOU ARE!!!
On a 66 month loan, $2000 could raise your payment as much as $40 a month! That's a lot of YOUR MONEY lining the car dealer's pockets when it doesn't have to!
Now, just to be fair, the car dealership doesn't always make that much.  Then again, at times they could make more!  But even if they are Making $500 or $1000 Off Of You it's still YOUR MONEY lining their pockets!  Money that's raising your monthly payment;  money you can easily save!
The only time the dealer doesn't make much money from car financing is when you take advantage of the low rates advertised by the manufacturer.  Like the 0.0%, 1.9%, or the 2.9% or whatever.  And in order to get these rates you usually have to give up the Rebate!  In this case the dealership will be paid $50 or $100 by the car manufacturer.  So this is a safe situation for you!
BE PREPARED!
Compare rates and grab the best auto loan deal right from the privacy of your own computer!  Get Free auto loan quotes from the following lenders:

• The following is an excellent source for auto loans for people with an "Excellent" all the way to a "Bad"Credit Rating:
  AutoLoanSolutions
• Here are three excellent sources for people who have a "Poor" or "Bad" Credit Rating:
  AutoLoanSoup, and MyAutoLoanFinder.com

Specialize in helping individuals obtain bad credit car loans for the purchase of new or used vehicles.  Apply to them and compare.  You're under no obligation to accept any of their offers. If you're not sure what your credit rating is get your Get all 3 Credit Reports plus 3 Free Scores Now!

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2.  The Second Main Area for Profit in the Car Finance Office is Selling Extended Warranties. They are available for both new and used cars.  There are many different warranty companies and many different levels of coverage available.
A few companies are good, most are not!
For a more in-depth discussion about what to look for in an extended warranty, and how to be sure you pick a good company, visit Extended Warranty Tips right here on this web site!
If you decide to purchase a warranty from a car dealer understand this:  The dealer is marking-up the price anywhere from $400 on up to $2,000 and MORE every time they sell you a warranty!
An extended warranty is an excellent idea.  You never know when a car is going to break down.  One major repair could very easily cost more than the price of the warranty itself!
Buying a quality extended warranty from a company you can trust will give you great Peace-Of-Mind.
You can avoid the Big Dealer Markup  on extended warranties by getting FREE PRICE QUOTES on New and Used vehicle warranties from the following extended warranty companies:  Extended-Vehicle-Warranty.com and SmartAutowarranty.com

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3.  The Third Area That Will Cost You a Fortune in the Car Finance Office is Credit Insurance.
There are two kinds of Credit Insurance that the Finance Person will try to sell you. Credit Life Insurance is the first.  This covers you in case you should die before your auto loan is paid off!  If you have an auto loan in your name with Credit Life on the loan and you die before the auto loan is paid off, The insurance will pay off the balance of the loan.
If there are two names on the car loan like a husband and wife for example you can get Joint Credit Life to cover both people.
The second kind of Credit Insurance is called Disability or Accident and Health.   This coverage is very expensive, and it covers you in the event that you become disabled through sickness or injury and are unable to work.
This coverage will make your payments for you until you get back to work.  You usually have to be disabled for at least 15 to 30 days before you become eligible.  Also, there is much fine print for pre-existing conditions.
So Be Warned!
The dealer will usually earn about 50% of the insurance premium on these two coverages.  And believe me, this can add up to $1000s. . . AND IT'S YOUR MONEY!

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Another product the F & I person may try to sell you is Gap Insurance.  Gap insurance covers the difference between the value of the car and what you owe on it in case the car is stolen or declared a "total loss" from a wreck.
Most people who finance or lease a vehicle owe more on it than the vehicle's actual book value.  So if the car is totalled from an accident or from being stolen your insurance company will only pay the book value to pay off the claim.  If you owe more on the vehicle than they give you there's a "gap" that you must pay off.
Gap insurance covers this "gap" or difference so you don't get stuck owing money on a car that you don't have anymore.  It's a good thing to have, but you do not want to buy it from the car dealer!  They will mark the price up $300 to $500 and more over the actual cost of the coverage!  I've said it before "That's Your Money!"
A much less expensive alternative is to purchase Gap Insurance online where you don't have to worry about being ripped off by your car dealer.  To find out if it's right for you and to get a Free price quote visit Gap Insurance.

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4.  The Finance Manager Will Try to Sell You a Variety of Other "Afretmarket" Products.
Everything from Rustproofing and Paint Sealant to Window Etching and Alarm Systems.  Needless to say, all of these items will carry a huge markup, thereby lining the car dealer's pockets even further with Your Money!
All of these things we've been talking about make your payment go higher and higher!  And don't forget, in addition to the individual commissions the dealer earns on each product, he is also earning a percentage of the Amount Financed!   So the more stuff you put on the loan, the higher the Amount Financed and the more of Your Hard Earned Money goes from Your Pockets Into the Dealer's Pockets!
It's like the car dealer gets a double commission when you add this stuff to your auto loan!  DON'T DO IT!

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If you're going to finance a car, here are a few pointers to keep you from paying too high of a payment:
1.  Get all 3 Credit Reports plus 3 Free Scores
2.  Get Free Online Auto Loan Quotes From the Following Lenders:

• The following is an excellent source for auto loans for people with an "Excellent" all the way to a "Bad"Credit Rating:
  AutoLoanSolutions
• Here are three excellent sources for people who have a "Poor" or "Bad" Credit Rating:
  AutoLoanSoup, and MyAutoLoanFinder.com

By getting Loan Quotes from the above lenders you'll know what kind of car financing is available to you, then you can decide if you want to go with one of them or if you want to use the quotes as a negotiating tool with your local bank or credit union!   By the way, the car dealers hate it when you arrange pre-approved financing, but it's the smart way to go. 3.  NEVER negotiate a car deal based on payment!   If the salesperson asks you what payment you'd like to have tell him or her not to worry about the payment.  You want to negotiate a price on the car.  Not a payment!
Beware of the "Packed Payment!"  If you let the car dealer arrange the car financing on your purchase, and you negotiate the deal based on a payment then very likely the payment that you agree to will be much higher then is needed to cover the cost of the vehicle.
You see, the higher payment creates a "pack," or room in the payment to add in things like credit insurance, an extended warranty and other items like window etching, security systems, rustproofing, paint sealant and other high profit items that they can squeeze in....of course without you knowing you're actually paying more for the extra stuff!  They'll just tell you it's all included in the price!
Bottom line?  Don't negotiate on payment.  Only on the price of the car!  Do it any other way and you will be spending too much!
****Sidenote****
When negotiating a car deal don't let on to the salesperson that you have your own car financing in place. If you tell your salesperson up front that you have already arranged an auto loan, and he or she relays this information to the Sales Manager, the manager might make the decision to hold out for more profit on the car deal (the Front End) thinking that they're not going to make as much on the Back End (Finance Dept. profit)!
****Sidenote****
Some years ago I was a salesman in a Ford dealership when I had a young couple who wanted to buy a Ranger 4X4 pickup.  I asked them if they would buy the truck for $450 a month!  They said "Yes!"  They didn't care about the interest rate or the length of the loan!
For $450 a month for 66 months, (a "packed" payment) we made a Very Big Profit on the truck, plus the Finance Manager included a high interest rate, an over priced extended warranty and credit life and disability insurance!   He made a killing too!
If this couple had come in prepared and educated, they could have gotten the same truck for about $250 a month!!!
Can I say this enough?  BE PREPARED!
So PLEASE, use the information on this website to educate yourself before you step one foot on a car lot!  Afterall, It's Only Your Money!

5 Tips for an Easier Financial Life for Women

My Multiple Egg Baskets blog is starting to attract more attention with some lululemon wearing women at work. I don't know...I find it hard to listen to someone that promotes the lululemon brand when it's time to wear some casual sweats. Mabye I'm just a simple guy. However, my conversations with these women had led me to write this blog about 5 Tips for an Easier Financial Life for Women from their perspective.

No matter what we do, taxes and financial tribulations will never go away.
Unfortunately this can be a nightmare for some, especially since they not only take out large amounts of money but they also ruin lives. It is essential for any woman to know tips on how to avoid financial problems. Millions of women do not handle their own taxes; therefore they are left vulnerable and open to many troubles that may arise.

It is important to note that women need a larger amount of retirement money. This goes hand in hand with the notion that women generally live longer than men. If this is indeed the case, women will need to be more financially stable. Here are fundamental tips when deciding how to handle your financial situations:

1. Taxes

It is important to know all you can about your taxes. While it is great to have someone help you, it is also necessary for you to know what is going on. For instance, if something was to happen and you didn’t handle them, you may never know until it was too late. Many women face crimes and never realize it until they get summoned to go to court. This is due to not filing for taxes or other criminal related acts.

2. Retirement Planning

Always think of retirement! Although younger adults rarely have this on the mind, it is beneficial for you to always plan for it. If your company does not have a pension plan, it is smart to set up your own special fund. By putting in a certain amount of money each month, it will quickly add up over time. This will allow you to have a stable fund for when you do retire.

3. Know all Benefit Programs of Your Employer

If you do have a company with great benefits, it is important to know everything you can about them. Many do not know how to fully take advantage of all of their resources. Therefore, using these benefits as much as you can will help you in the long run.

4. Pay off your loans!

Being in debt will only harm you in the long run. You need to either create a plan on your own to reduce spending, or see a financial expert. Although many are ashamed and hesitant to do this, it will actually help you get out of debt faster. These professionals can come up with a wonderful plan and will break it down by month. This way you can start paying your way out of debt, but without having to live on the street. This will also give you a better outlook, rather than feeling depressed about the current situation.

5. Make a Budget

Developing a budget can help anyone, no matter how well they are doing. By giving yourself a budget, it will allow you to save for other important things. For instance, if you need to start a college plan for your child, you can put the additional shopping money in a fund. Other examples include saving money for rent, or using extra money for a much needed vacation.

How to Reduce your Electricity Bills?

The power of electricity can be best realized when you utilize it effectively. With the demand of the electricity skyrocketing and the supply drooping, saving a single unit of power becomes very significant. Here are a 15 effective tips to save electricity and thus save the money.

1. Switch off the lights, TV, computer, etc., when not in use.

2. Use fluorescent lamps instead of incandescent lamps. Fluorescent lamps not only help to save the electricity, but they also provide a better lighting and are cost effective too.

3. Use dimmer controls in your incandescent lamps so that you can adjust the intensity of the light.

4. Minimize the use of air coolers and air conditioners. Instead, use the fans, whenever possible.

5. Electric iron is a real power hog. If you use it carefully, you can save a considerable amount of energy. Instead of doing daily ironing, do it on a weekly basis.

6. Operate the air conditioner in the minimum temperature range possible in order to save power. Keep it under medium or low operation condition and set the temperature a little higher. Take the help of nature to save the electricity. Try to utilize the warmth of the sun whenever available in the winter, and the coolness of the garden in the summer instead of crouching near the air conditioners always.

7. The ideal temperature to operate a refrigerator is between 36 to 42o F. If the temperature is kept lower than this, it would be simply a wastage of power.

8. While operating your heaters in the winter, reduce the temperature level to a couple of degrees lower than that in the normal conditions.

9. If you are using laser printers in your office or home, keep a watch on it. It can draw your electricity bills up by hundreds of watts! Try to save maximum power by using it minimum, and keep the power switch off while not in use.

10. Use of smaller gadgets will help reducing the power to great extent. A microwave oven can be preferred to a regular electric oven, and so is an electric kettle to a stovetop one.

11. Minimize the use of hair dryer.

12. Control the use of smaller gadgets such as electric clocks, telephone answering machines, DVD players, cable TV converters, etc. Though they seem insignificant, the compounded effect of these instruments in multiplying your electricity bill cannot be ignored.

13. Keep a watch on the electricity meter. Have a regular estimation of the meter reading yourself to detect any unexpected power leakage from the circuit.

14. Use the modern gadgets that apply the energy-saving technology.

15. Do not open the door of the electric oven or the refrigerator unnecessarily.