So, you’ve fixed your credit score and now you’re at the best possible form to get a car loan. So let’s put up a list. Bank will offer car loans as part of its package of services. Obviously, the bank knows you since most transactions will go through your account(s). So you can go down, join the queue to see one of the loan officers and get a quote. More convenient is to sit down and use a site like this to get online quotes. No waiting in queues. Then there are the finance companies. You can always pick up a telephone and ask for a quote. Car dealers can offer their own loans or act as agents for the finance companies or the manufacturers.When you’re shopping for a car, you always can ask a dealer how much can this car cost for a lend. All that? Sure thing! Never accept the first deal offered to you. Car loans can vary from the affordable to the eye-popping insult. You need to get as many quotes as possible, look carefully at how the instalments fit into your current commitments, and decide whether you can afford this new car. It looks bad on your credit records as well. Be realistic in what you borrow and the rates at which you borrow. If all else fails, make do with the current car.

Don’t assume a lender has your best interests at heart. They are all in business to make a profit and that means you are just a piece of meat to them. So you have to take responsibility for protecting yourself as best you can. You’ve repaired your credit score and shopped around to get as many quotes as possible. Now read the small print for these car loans. Some of these cunning lenders will offer you a low starting rate, or even allow you an introductory period of one or two months free of instalments. Look past the good news and see how much the deal is going to cost you when the higher rates kick in later. None of these companies ever offers you something for nothing. The profit will be earned no matter what first impressions suggest. For that reason, you should seriously consider putting down a chunk of your own money as a deposit. Yes, I know that might be your emergency fund but, when you look at the cost of borrowing and the few cents interest you’ll earn on the cash on deposit, you’re probably better off borrowing less. The final act in this drama is with the car dealer. You’re negotiating a rebate on your current car, looking for a good package price. You know how much the other loans are going to cost. Now is the time to ask the dealer to beat the other offers.

Insurance is a contract between you and the insurance company. Like all contracts, it’s give and take. That’s what makes a good bargain. In this case, we’re talking about an auto insurance policy. So, in return for the premium, you’re asking the insurer to pay whatever costs arise from the traffic accidents you get into. It’s like a bet. The insurer works out what the odds are given the car you drive and your track record - it’s called risk assessment - and sets the premium accordingly. But you can also gamble. Suppose you think that, as a good driver, you’re never going to get in an accident or, if you do, it’s never going to be more than a fender bender with nominal damage on both sides. In a perfect world of free choice, you could decide not to carry insurance at all. You’ll always have enough cash in hand to pay out for the minor dinks and dents you cause. Unfortunately, this is not a perfect world. All but three states in the union require you to carry car insurance. If you drive any vehicle on the road without a valid policy in place, you commit a crime. Why is that? Well, it usually takes two to have a traffic accident. You may be the most careful driver in the world, but the idiot who rear-ends you while you’re parked may lack the same skills. It’s also possible that you may overestimate your skills and underestimate the amount of money you may have to pay if there is an accident. Suppose, for example, you hit an imported luxury car and injure the rich lawyer driving, the costs of repairing the car and compensating the lawyer for pain and suffering may be just short of astronomical. So deductibles are a happy compromise. Most insurance companies allow you to pay the first part of any claim you make. The amounts are usually stepped as $100, $250, $500 or $1,000. So if you cause damage valued at $3,400, the insurance company will pay the balance after you have paid your contribution. Yes, payment of the deductible is a precondition of the insurer paying out. So, when you’re getting your online quotes, always remember to opt for the amount of deductible you can afford. That way, your car insurance policy will come with a discount. The higher the deductible, the bigger the discount!

Soon latest final articles will become available in this blog.