A study by TechnoMetricafound that over 60% of the vehicle purchases were financed. According to Raghavan Mayur, president of TechnoMetrica, “over the past two years, nearly two out of three vehicle purchases were facilitated through a loan.”

When considering a loan, keeping the terms to a shorter time span will reduce the overall cost of purchasing a car. Often consumers will finance the car for 48 to 60 months increasing the purchase price by over ten percent depending on the current interest rates.

Pre-qualification of an auto loan will help you negotiate a better price than what is offered by dealers when it comes to sign the loan contract.

If you’re a Motor Trader you’ll know more than anyone just how price sensitive the automotive industry can be. And as Motor Trade Insurance is likely to be one of your companies biggest outgoings paying the right price for your Motor Trader Insurance is going to be vital.

Whilst the UK has benefited from a pretty stable financial environment in recent years with rising house prices, low interest rates and many companies making money there now maybe signs of a change. During 2006 interest rates rose steadily and with 1 rate rise in 2007 already (and with more forecast as the year progresses) there is every chance that there will be less disposable income in the UK economy.

So what will this mean for consumers and Motor Traders?

Well for consumers it could mean they have less money to spend on new cars, second cars or indeed on the servicing and repair of existing vehicles. There is also every chance that as value for money becomes more of an issue they will shop around to secure the best price and service.

And when Motor Traders Insurance policies come due for renewal there is every chance they too will start looking around to secure the best deal on their Motor Trade Insurance. And if indeed money is an issue it is very easy for companies in the motor industry to opt for the cheapest is best option. After all, isn’t one type of Business Insurance pretty much the same as all the others?

Well for Motor Traders in the UK I would urge you to proceed with caution as whilst low cost motor trade insurance is available from many different insurance providers you don’t want to leave yourself in a position without the right level of cover or the right insurance excess (or deductable).

For many motor traders the best option to take when buying motor trade insurance for the first time or when their current motor trader insurance comes due for renewal would be to consult the services of an insurance broker. An insurance broker who specializes in motor trade insurance can search the market to find you the right cover at the right price so you not only save time – but you also save money.

In the event of you needing to make a claim they can also help you get the claim settled quicker and more favourably. A good insurance broker should give you advice and make sure you only pay for the insurance cover you need and want.

Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.

Let’s take a look at some tips, pros, and cons when it comes to making this decision.

First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, you’ll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars won’t have all of those superfluous dealer ‘add-ons’ stuck on the window either that will just never do.

In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades you’d like to have on the used car that you couldn’t otherwise afford going with the new.

Yet, with all of this, buying a used car isn’t for everyone. Finding a used vehicle that fits one’s entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.

Not so many years ago, reliability was a major concern when purchasing a used car… and rightfully so. Today however, reliability problems are a fraction of what they used to be. Today’s vehicles, when properly maintained will easily go for 100,000 miles and it’s not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.

Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.

As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty you’ll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that aren’t covered by any manufacturer’s warranty anyway; items such as brakes, tires, alignment, batteries, etc.

Of course nobody can guarantee that you won’t encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.

When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle you’ll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car you’re looking at. Be sure to crunch the numbers for both sides.

With used cars, insurance can save you some money as well because you’ll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.

And finally, (the latest) safety features could be a concern if you’re looking at used car (particularly if you’re going back a few model years).

All in all, if the touch, feel, and smell of a new car, isn’t a top priority for you, I think you’ll find that a well thought out used car purchase you can get more car and features and still be within your budget.

Before you even set one foot onto a car dealership check and know what shape your credit is in. Even if you know it is in good shape… here’s a flash for you – credit reporting companies make mistakes… and many of them. So, be smart… begin your car buying process the correct way… know your credit score.

You should begin the process of self evaluating your credit well in advance of doing your car shopping.

Why? Because if you find incorrect information or reporting on your credit report it will take some time in order to get it corrected or removed… and if you don’t you may pay for the mis-information quite handily in the form of paying a higher interest rate than you would otherwise have to.

For instance if you were to finance $20,000 for 5 years at 0% interest rate (obviously you’d pay no interest) your monthly payment would be $333.33. If however, because of credit issues (either correctly reported or not) you signed up at 7.9% your payments would be $71.00 dollars per month more for a painful $4,274.28 more in interest payments alone.

And just to pile on a bit more… this means that your loan payoff will always be higher so if you get the urge to trade cars two, three, or four years into your loan… you’re going to be much further upside down!

There are three credit reporting agencies – Equifax – Experian – Trans Union – and it’s best to get a report from all three. Also, if you are married you’ll want to get your spouse’s as well.

First check to determine what your FICO score is. FICO scores can range from about 300-900 with the higher the number being the stronger credit score. Lenders have differing criteria in how they evaluate and grade FICO scores so the break lines between poor – average – good – excellent can vary somewhat but generally the best auto financing rates are granted to those with a score of 700 or better.

Basically your credit score is based on five determinants: payment history – unpaid debt – how long you’ve had established credit – how much credit you’ve acquired or applied for lately – the types of credit you’re carrying.

The Federal Trade Commission (FTC) has a good website for understanding what your rights are under The Fair Credit Reporting Act.

Work to update outdated information that may be a part of your credit report and by all means begin the process of correcting any mis-information or incorrect payment history. Once you have corrected the mistake, be sure to check your credit report again in about 60 days to see how much of your credit report has changed and if your score has improved.

Working to get your credit report in order may take some time and diligence, but it’s like paying yourself. Remember, the difference of a not so many point swing in your credit score can get you that 7.9 interest rate instead of that 0% interest rate.

It’s your money… don’t waste what you can control.

Your old car just went to pieces today and you have very little money in your pockets. Perhaps you could look at the very limited selection at one of those local car dealerships that offer financing on a high sticker price made even higher by the interest rates they plan on charging you. You could go to the bank for a loan and beg the loan officer to give you some cash at a very high interest rate. You could do either of these things but you wish there was another option. Well, there are other options and they are called car auction sites.

How Do Car Auction Sites Work?

If you want to avail yourself of this great money saving opportunity, it may prove helpful to learn a bit about car auction sites first. Car auction sites offer a wide range of vehicle choices due to their very nature. The automobiles being auctioned are usually placed up for bid by individuals or small auto dealerships so prices can range from the no reserve car auction to items that have a preset price or at least some reserve on the car where the seller has the right to refuse to sell unless the price goes higher than his stated reserve price. Thus if a seller put a vehicle on an car auction site with a reserve of two hundred dollars and the highest bidder only bid one hundred ninety dollars, the seller would have the choice of selling the car for the one hundred ninety dollar bid or refusing the sale and relisting the car thru another car auction site.

There are a few things to consider before bidding on car auction sites as well. One major consideration is the location of the vehicle and the cost and method of shipping. The automobiles sold on car auction sites are located around the globe so pay close attention to where the car is located before bidding because all bids are considered final and legally binding as contracts and if you win the bid you will be expected to fulfill your contractual obligations towards the purchase.

Another consideration before bidding on car auction sites is the reputation of the seller offering the vehicle you are looking at. Car auction sites such as Ebay Motors have a great way of making sure you know the sellers reputation. Every buyer and seller on Ebay has a rating. It is generally considered a very good practice to buy from sellers who have high ratings and good feedback. This helps to insure that your experience with car auction sites will be a pleasant one.

If you don’t have enough cash on hand to purchase the car straight out, you will need to consider your financing options. If you are a smart shopper you should figure out how you are going to finance the used car before you begin shopping. There are three main components that will come into play when you purchase a car. The first is the monthly payment, the second is the down payment and the third is the price of the car.

The monthly payment is going to be how much you can afford to pay each month. This will help the lender determine the life of the loan and when the payments will be due. Many lenders will require that you use the car to secure the loan. The car can be used as collateral and in the event that you default on the loan the lender will repossess the car to satisfy your debt. Monthly payments can also be lowered if you are able to make a down payment.

The down payment is how much cash you can afford to put down before financing the car. This will help to reduce your monthly payments as well. The better a down payment you are able to supply to the bank, the less amount of money you will have to finance through the lender.

The purchase price will be determined to the answer to the two previous questions. These numbers are important to have handy when you are negotiating over the price of a car. If you have these two figures in hand while discussing the price of the car, you will be able to remind yourself of what you can really afford to spend.

You have two options in financing a car. One is to finance the vehicle though your personal bank or credit union. This route is highly recommended, as you will be able to work with lenders that you are already familiar with. You will also be able to be eased in your mind, as your money is going to be sent to a reliable institution. Lower interest rates can also be found at reliable lenders. Using a bank or credit union also makes it easier to stick to your budgeted amount and allows you to find competitive interest rates.

Your other option is to finance through the dealer. This is an option for those individuals who find their credit rating less than good. Many dealers work with people with poor credit and will prearrange financing through an independent source.

When you are car shopping you will want to be sure that you leave yourself enough time to arrange the loan before purchasing the car. You want to be prepared to hand over the money in the event that you do find the used car of your dreams that you have been shopping for. You also do not want to be dependent on borrowing money from a dealer, as they often do not have the best financing and interest rates available, especially on their used cars.

For more Car buying tips visit Atlanta Used Cars at http://www.UsedCarsAtlanta.us and Dallas Used Cars at http://www.UsedCarsDallas.us.

For decades we have seen the national auto shows, where the major manufacturers roll out their new models and a few flashy "prototypes" that will never see an assembly line. Then there are the rod and custom shows, populated thirty years ago by twenty- and thirty-somethings and filled these days with middle aged and older auto enthusiasts who still love classic American cars, both stock and in all the different permutations of customization they have gone through over the years.

And of course there’s the Concourse D’Elegance crowd, oohing and aahing at priceless Ferraris from the fifties and sixties as well as the older exotics such as Packards and, going even further back, Hispano-Suizas and Auburns.

For those who lived American Graffiti and those who live for the foreign classics, if you’re involved at all in building, maintaining or participating in the fellowship that has built around classics and exotics, you should consider utilizing a website.

First of all, it’s a great way to show off your car or cars, whatever you’ve got in the garage that is carefully driven once a week and towed, gleaming, to car shows. Secondly, it’s a communications device for like-minded collectors or builders that may be interested in your specialty - whether old Corvettes or sixties Alfa Romeos. There are current web sites for national and regional organizations as well as a number of sites that specialize as classified advertising for scarce auto parts.

A personal site, however, is going to give you a far different type of interaction with your fellow wrench addicts. Instead of searching impersonal national websites for parts or people with similar interests, you can use your site to bring them to you. Proper use of keywords and perhaps a classified ad or two online will bring potential contacts to you personally, and there they will find a site with photos of your car(s), your shop and a little history about your involvement.

You don’t have to find contacts like that at shows or in pulp publications for parts and project cars. A properly designed site for a car enthusiast that elaborates on his area of interest and the history of his cars will give that person a potentially national social role in the company of his peers, just as the kids are using MySpace to communicate.

You can advertise for parts, show vehicles for sale - with unlimited photos and videos, if you wish - and put the word out for a car you might be seeking for your next project. This approach will also limit your needs for entering ads in national locations. All you need to do is mention "55 Chevy for sale at www.old55.com" or whatever your site address is, and the interested parties will come to you. No more details listed in long paragraphs done in tiny print - and no more photos of your car on a page or in a lineup of dozens of other vehicles.

The term "refinancing" should be familiar to anyone who has purchased a loan. Simply put, refinancing is the process of obtaining a loan to pay off an existing loan. Obviously it’s not quite as simple as it sounds, but understanding that basic description is enough to begin the process of learning about refinancing.

One of the best-kept secrets in the finance industry is refinancing. A great deal of time, trouble, and most importantly cash can be saved through this method alone. Home refinancing has been around for a long time now and is used by many people to save money on their loans and/or reduce their monthly payments. However, many people still balk at the idea of car loan refinancing despite being familiar with the benefits of refinancing a home loan. Those who have a less than perfect credit rating to back them up, in particular, are likely to react this way.

What exactly is different about car loan refinancing? In essence, nothing. At the basic level, car loan refinancing works the same as refinancing your home. In car loan refinancing, a new car loan is obtained in order to pay off the existing car loan. The new loan may have different (typically better) interest rates, a new lender, or both. Again, as in home refinancing, this is beneficial since car loan refinancing can make your monthly car loan payments lesser. Alternately lower interest rates garnered through car loan refinancing can be capitalized on to pay off the balance of the current car loan in a shorter period of time.

Very few people understand the time value of money–that the longer a loan is paid on, the more money is spent on interest charges. Take for example a 60-month loan for $16,500 on a new Honda Accord and assume that the buyer’s credit is poor. The car dealer manages to get the buyer approved at 21% APR for that loan, making the monthly payments $446.38. By the end of the loan term, the buyer will have paid $10,282.83 on interest charges alone–almost as much as the initial price of the vehicle (which, of course, is now worth far less than when it was purchased). Now, if the car loan were refinanced with another lender at 6% APR after the first few months, the monthly payment would have been $318.99, allowing the buyer to save as much as $7,643 on interest charges. If the buyer refinanced at the lower APR but retained the same monthly payment, the term of the loan would be shorter and the interest savings even higher.

Record numbers of homeowners refinanced their homes and saved thousands of dollars during the years 2001 and 2002. More car owners are beginning to realize the benefits of car loan refinancing every day. With the steady drop in interest rates, car loan refinancing is fast becoming a trend as more and more people realize how much money can be saved simply by refinancing a car loan.

When it comes to purchasing a car you will want to do your research. If you think that you might have found something that you would like, you should go online and use a car loan calculator. This is very handy when it comes to estimating what you will end up paying per month. It will ask you for some information and then you hit enter and it will give you plenty of options. They will tell you what you payment would be for different payment amounts. Basically, they will tell you what to expect to pay monthly, but without all the fees.

Basically to use it you enter some numbers and then you can hit enter and it will do all the math for you. It does not include any emissions, inspections, licenses, and any other fee. You can estimate it and place that in the original price; however, you may be off a little. Usually there is about 800-1000 dollars added on by fees, depending on what your needs are. If you already have plates, then it’s going to be about 100 dollars lower. It just depends on what your needs are.

So what information do you need for a calculator to help figure out what you may pay. Well first you need to have the selling price, then you need to know if there are any rebates, your down payment, your tax rate, your interest rate, your trade in rate, and then if you have anything left to pay on your trade in. All this information can be found by looking up some interest rates and your book value for your current vehicle, but it all depends on the dealer too.

You may get more for the car than it’s valued, but that’s up to the discretion of the dealer. Everything that you expect may be different that what you get, so you may want to add a few thousand on and off the original estimate so that you know exactly the range that you should expect.

The reason why you should do a calculator is to make sure that you understand what you are looking at and the price you will pay. It helps people from making huge mistakes. Remember, just because a car looks good, doesn’t mean you can afford it. You should never try to go for anything that is out of your purchase price. Every time you file for a loan it is marked on your report. The more rejected you are, the worst it makes you look, so why take the chance on something you can’t afford anyway?

Sooner or later, everyone wants or needs to buy a vehicle; and unless you have a money tree in your backyard, you’re going to need to take out a loan.

Virtually every new car purchase requires financing from a bank or other financial institution. The only other choice is to pay cash, an option few of us have at our disposal. If you’re in the market for a new car you’ll need financing, and in order to make the right decisions you need to know about car loan calculations. If you fully understand how to make car loan calculations, you’ll be able to estimate the values involved in your purchase, as well as balance the expenses that come with buying a new car. Knowing this information is crucial to buying a car that’s within your budget.

Car loan calculations involve a number of factors. Consider the loan term, interest rate and loan principal and work them into your calculations. Only then will you know if the car you want is the car you’re able to afford.

Loan Term Basically, this is amount of time it will take to pay the loan in full. A shorter term will mean higher monthly payments, but the loan will be paid off faster. Longer terms involve more affordable monthly payments, but it will take more time to meet your obligation. The length of your loan term can also affect the interest rate, and can increase the amount you pay in interest overall.

Interest Rate No banks or finance companies will lend you money out of the goodness of their hearts. They make money from interest. The interest rate determines how much extra you will pay for the convenience of borrowing money. Interest rates will fluctuate based on the market, and lenders will try to get your business by offering a lower rate. Shopping around for a good rate can save you hundreds of dollars over the term of the loan.

Loan Principal This is the base amount of money you borrow, before any interest or financing fees are added on. The amount of your monthly payments, and the total amount of interest you pay, are based solely on the principal amount. Naturally, the monthly payments and overall interest will get higher as the principal increases. If you find that the monthly payment is beyond your means, then you should consider starting with a smaller loan principal. In some cases, the term "loan principal" can also be used when referring to your outstanding loan balance. At any given time during the term of your loan, you can check to see what your existing loan principal is.

If your loan is an amortization, you’ll find that your first few months of payments will only pay off the interest amount. You can pay $500 a month for 8 or 9 months, only to find that a fraction of that amount has been taken off of the principal. Over time, however, the payments will balance out and you’ll begin to see more money coming off of the principal. Eventually, the entire loan will be paid.

Buying a car always seems like a great idea, but the payments really can be quite overwhelming. Don’t put yourself in a situation where there’s more month than money. Car loan calculations are absolutely necessary to putting yourself in the driver’s seat, without putting yourself in the hole.