Smart guide borrowing some money for your car loans

AutoCarLoansTips - If your job is not secure, it may be better to build up a bigger deposit before getting a loan. Save up as much as you can, so you can borrow less and save on interest. Before you borrow, always remember to allow for interest rate rises and anything that might affect your future income (such as changing jobs). use budget planner calculator to see exactly where you are spending your money and how much you can afford in repayments. 

If you decide to borrow, take time to compare interest rates, product features, and fees and charges. Even a small difference in the interest rate can make a big difference to what you have to pay. Shop around online to compare products or use multi-loan calculator, research published by the independent consumer group CHOICE can also help you find the right product for your needs and budget.

If you feel like you’re being pressured into signing something you’re not sure about, take more time to think things through. Check the terms and conditions of your loan before you go ahead, so you know exactly what you’re getting into – including penalties for missed repayments or for paying off a loan early.

Know who and what you’re dealing with, because anyone who wants to engage in credit activities (including brokers) must be licensed with ASIC, or be an authorised representative of someone who is licensed. If they aren’t, they are operating illegally. 

There is currently an exemption from licensing for credit assistance provided through some businesses (for example, retail stores and car yards). While the store may be exempt, the actual credit provider must still be licensed. If you are unsure who the credit provider is, ask the person you are dealing with to point out the name in your credit contract. 

Anyone engaging in credit activities (for example, by providing credit or assistance to you) must give you either a credit guide (with information such as their licence number, fees and details of your right to complain) or a written notice with details of your right to complain about their activities. 

Keep your repayments up-to-date to avoid being charged any penalty fees. Act quickly if you are having trouble making repayments. It may be difficult to face the problem, but ignoring it will only make things worse. In case you can’t make the full repayment, pay what you can. Contact your credit provider without delay.

The last but not least make sure you keep the car comprehensively insured. If you have a secured loan for your car, you will usually need to get comprehensive car insurance. But whether your car is security for your loan or not, accidents and thefts do occur and you do not want to be left with no car and a large loan still to repay.

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How do I choose the best auto car loan?

Autoloanscalculationtips - Get the best credit deal before you buy an auto car is very important thing. Be sure to get the best credit deal. This is as important as getting the best price on the car. By shopping around for credit first, you can find the best deal for you without your mind being distracted by that new set of wheels.

Beware of getting a car lease when you really wanted to get a loan. With a lease you rent the car for an agreed period of time, but do not have a right or option to purchase the car. At the end of the period, the lease is terminated and the car sold. You could make an offer for the car, but you will usually need to come up with a large sum of money to buy it – and the credit provider does not have to accept your offer. So, if you want to own the car, do not get a lease.

Check out your loan options before you go shopping for your car. Many credit providers will give you in principle approval for a loan before you find your car, so that you know exactly how much you’ve got to spend and you’ll only have one high-pressure decision to make at the car dealership.

Before you get your loan, budget for the full costs of owning a car. There are annual fees for registration and insurance. You may also choose to join a motoring organisation for roadside assistance. On top of that there are ongoing costs like petrol, repairs and maintenance – even road tolls.

You might decide to get third-party property insurance or full comprehensive insurance for your car. Third-party property insurance covers you for damage to other people’s vehicles or property that is not covered by your compulsory comprehensive third party (CTP) insurance. Full comprehensive insurance also covers you for damage to your own car.

While insurance can be expensive, think how much not having it could cost you later if you have an accident. But make sure you shop around for the best deal – it is often cheaper to arrange your own insurance, rather than going through the car dealership. Be aware that if your car loan is secured by a

mortgage over your car, you will usually need to get comprehensive insurance for your car.

Be careful of loan protection insurance sold as an add-on when you get the loan. With this type of coverage, the insurance provider pays or contributes to your loan repayments if you are unable to work due to injury, sickness or involuntary unemployment. In the event of your death, life cover will repay your outstanding loan balance. This type of insurance is usually poor value for the cost, so shop around.

Some car dealers also offer gap cover (or shortfall insurance). If your car is stolen, written off or damaged beyond repair before you have paid off your car loan, this insurance is designed to cover the ‘gap’ between the market or agreed value that your comprehensive insurer pays and the amount needed

to pay out the remainder of your loan (up to a specified limit), plus some additional costs. Think carefully about whether you need this additional coverage and make sure you shop around.

You may also be offered an extended warranty (also called mechanical breakdown cover). This is really extra insurance, to cover the costs of unexpected mechanical repairs, parts and labour (with the exclusion of normal wear and tear). But before buying an extended warranty, make sure it is really worth the money. Does the extended warranty offer more protection than the warranty that comes with the car? When does the extended warranty start? Are there any important restrictions or conditions? Check that the benefits are worth the extra money and that the extended warranty does not simply repeat items covered under the warranty that comes with the car.

You do not have to take up any of these extra options if you don’t want to, and car dealers must not mislead or deceive you about the real benefits of additional insurance coverage or your need for it. Always check the terms and conditions of any additional coverage, as they may vary from those included in your comprehensive insurance coverage. Take your time to work out what you really need and don’t let a pushy salesperson pressure you into making an on-the-spot decision.

Do not sign a business purpose declaration unless you are really using the car for business and are eligible to claim your payments as a valid business expense for taxation purposes.

By signing a business purpose declaration, you may lose valuable rights under the credit law

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Honda Civic Type R new spec 2015

CarLoansCalculation - The 2.0-litre turbocharged engine makes 306bhp and 295lb ft, enough to hit 167mph at the end of the Döttinger Höhe straight. The helical limited-slip differential slashes five seconds from the time. Adaptive dampers provide control whether you’re fl ying at Flugpatz or braking hard into Bergwerk. An aerodynamically optimised body with a nearly fl at underfl oor sucks the Civic to the ground at high speed. There are 19-inch alloy wheels and bespoke Continental Sport Contact 6 tyres, four-piston Brembo front brakes with 350mm drilled discs, Dual Axis Strut front suspension… All of it feeds into the Honda calculator to produce an answer of 7min 50.63sec, the current front-wheeldrive lap record (as we go to press, at least!).

Project leader Hisayuki Yagi makes no bones about this being the number-one target throughout development. Not ride quality, not steering feel, not throttle response. He just wanted to be fastest. And, he says, there’s more to come: if someone beats the record with a sensible, useable car, he’ll respond, and Honda UK might have a special edition to punt.

There’s a risk, of course, that this willy-waving could result in a car that’s as suited to real roads as a jet-powered shopping trolley. So we’re giving the Type R our own challenge. I’ll get a day to download Yagi, drive the car on the road, and test its trackday-credentials on the Slovakia Ring (I know, wrong country, wrong circuit, sorry). Meanwhile, a few pages down the road you’ll find Steve Moody and the CAR road-test team in Wales with the Type R and two key rivals. The hardcore Renault Megane Trophy-R will put the Civic’s turbonutterbastard credentials under the microscope like a schoolkid with a worm, a hot day and a twisted sense of humour. The Golf GTI is also on hand, because if the Type R is severely compromised by its track-focus, nothing will expose it like the polished Volkswagen. There’ll be no stopwatches in Wales; we’re interested in which car is most enjoyable drive.

Arriving at the press launch, Honda has the last-generation Civic Type R on hand for us to pore over. It looks small, still modern, strikingly unadorned–quite a contrast to the new car. Every bit of aero addenda is said to be functional and positioned with millimetric accuracy, but it does look like someone’s let the Pin-The-Tail-On-The-Donkey kids into the garage with superglue and an Airfi x kit. Bits are stuck all over the shop.

Those red highlights on the leading edge of the splitter are also key, not for laptime, but for bragging rights. It tells the world we’ve got the top-spec GT. It adds £2300 to the £29,995 sticker, but also auto lights and wipers, parking sensors,

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Difference of Secured loan and Unsecured car loan

Autoloanscalculationtips - Joni went into a car dealership to look at a silver sports car. It was sleek and very very fast. Joni went for a test drive and just had to have the car. He got all the optional extras and then the car salesman arranged a loan for him. Joni drove away from the dealership with a loan for over $55,000 and an interest rate of 25% per year. When he got home he spoke to his dad and realised he had paid way too much for the car and the car loan was very uncompetitive.

Based in the situation above, If you don’t have the cash to pay for car upfront, you’ll need to borrow money. And, depending on the type of car you choose, you could be paying off your loan for some time. 

Apart from your home, a car is one of the biggest single purchases you’re ever likely to make. So don’t let the thrill of owning a car get in the way of making good financial decisions. There is any two type of auto car loan, Secured loan and Unsecured car loan. Difference of both type is :

1. Secured loan

With this type of loan you must offer an asset, such as the car you are buying, as security or collateral for the loan. If you don’t make repayments, the credit provider can repossess and sell your asset to get their money back (without going to court). 

The age of your car will affect its resale value. If your car is sold for less than you owe, you can end up having to pay the credit provider the difference.

2. Unsecured loan

With this type of loan you do not need to have an asset to offer as security. Unsecured loans are usually harder to get, as you need to convince credit providers that your credit worthiness and financial position are good enough for them to give you a loan without you having an asset to sell if you can’t pay your debt.

If you fail to repay the loan, the credit provider can still take you to court in order to sell your property and recover the money. Interest rates are usually higher than for secured loans, since the credit provider is taking a bigger risk.

Interest rates and fees and charges can stack up, so do your homework before you sign up for a loan. Shopping around for the best deal!

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How do car loans work?

CarLoansCalculation - A car loan is a personal loan for the specific purpose of buying a new or used car. You borrow an amount of money that you agree to repay within a certain period of time (called the term). This can vary, but is usually 12 months to 5 years. You will have to sign a credit contract which will specify the amount borrowed and how you will repay it.

You pay interest on the amount you borrow, which may be at a fixed rate (where the interest rate is

locked in for the term) or a variable rate (where the rate may go up or down over the term), plus any fees and charges. While a fixed rate loan offers the benefit of set repayments, if you want to make extra payments from time to time, and pay out the loan early, you may be charged an early termination fee.

A car loan may be secured or unsecured, depending on whether you put up your car (or other asset) as security for the loan. With a secured loan, you usually pay a lower interest rate than for other kinds of lending – but it also means that if you fall seriously behind on your repayments, your credit provider has the right to sell your car (or other asset) to get their money back. Secured loans are usually only available for newer cars, because they are more valuable as an asset. With an unsecured loan, you do not need to mortgage your car as security, but you will likely pay a higher rate of interest because the credit provider is taking a bigger risk.

If you buy from a car yard, the car dealer might offer to arrange finance for you. While dealer finance might seem more convenient, it’s usually cheaper to get a loan elsewhere. Banks, building societies, credit unions and specialist lending and leasing companies also offer car loans, so check out what’s on offer.

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Glossary on automobile carburetor

AutomobileCare - Definition of CARBURETOR is a device that atomizes fuel in air, and meters the resulting air-fuel mixture into the intake manifold. It also includes a throttle body. The carburetor is not used today on other than some racing cars. 

CARBURETOR-AIR HORN is the top part of the carburetor, in which the choke is located. 

CARBURETOR BASE is the lower part of the carburet or, in which the throttle plate is located. 

CARBURETOR CHOKE is see CHOKE. 

CARBURETOR CLEANER is a petroleum solvent for cleaning the carburetor. 

CARBURETOR FLOAT is a device much like the float in a house hold toilet tank that regulates the amount of fuel in the carburetor fuel bowl. 

CARBURETOR FUEL BOWL is a small fuel storage area in the carburetor, at the carburetor fuel inlet. Also called the float bowl because it contains the carburetor float.

CARBURETOR FUEL BOWL VENT is a vent on the bowl. It typicall y is connected to a carbon canister, which absorbs vapors when the engine is off, and it also maybe vented to the atmosphere when the engine is runing. 

CARBURETOR FUEL INLET is the threaded fitting on the side of the carburetor, to which tubing from the fuel pump is connected. Fuel enters the carburetor at this point. 

CARBURETOR NEEDLE AND SEAT VALVE is a valve at the carburetor fuel inlet that is controlled by the up­ and-down movement of the carburetor float. When open, it allows fuel to enter the carburetor fuel bowl. When closed, it stops the flow of fuel. 

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Important thing on used or new car financing for bad credit

CarLoans - Buying a car is no simple decision. From buying outright, to buying a car on finance, there are many options. You also have to consider running costs. In fact, it’s probably the second most expensive thing you’ll buy after a home. The average loan rates for new or used cars and trucks have risen by almost a quarter of a percentage point. If you have reasonably good credit, you can probably pay less than average for a car loan, but why if you have bad credit record.

Altough that bad credit doesn't mean you can't buy a car, and doesn't automatically mean you can't get a car loan with terms that don't break your monthly budget. Like everything else, "bad" is a matter of opinion and degree. If the score is borderline, some lenders might still smell a good prospect while others, with slightly different criteria, would see more risk. So it’s important to make sure you get the best deal on you used or new car financing.

When interest rates are so low, it’s likely that your savings will not be earning much in a bank or building society account. So rather than keeping your savings and borrowing at a higher rate of interest, you could use them to fund all or some of the cost of the car.

Remember:

• You should make sure you have enough savings left over for an emergency after you have paid for your car.
• If you don’t have enough savings to buy the car outright, you could use them to give you the biggest deposit possible.
• Even if you use money from your savings you may be better off buying the car on your credit card so you benefit from credit card purchase protection. You should pay the bill off in full the next month.

The type of car finance deal is a variation on hire purchase and tends to result in lower monthly payments. Instead of paying for the car outright, you agree to pay the difference between its sale price and its price for resale back to the dealer. This is based on a forecast of annual mileage over the term of the agreement. Payments are spread over a shorter term of 12 to 36 months.

The important thing about you car financing is to make sure the loan is not secured against your home. Otherwise you will be putting your home at risk if you failed to keep up with repayments.

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