Scam Artists Want To Finance Your Next Car!

If you have shopped online for car loans recently you may have found hundreds of tempting offers. Many offers promise you guaranteed financing regardless of credit history, bankruptcy, divorce, and the end of the world … (well maybe we exaggerated that one a bit), but you get the idea.

Presently, over 100,000 people per day apply online to receive car loans from companies that promise financing with bad credit or no credit. What you need to be aware of is that not all of the websites out there are legitimate. If you are unfamiliar with the term, “Phishing Website” you should Google it today and learn what it is. You could be giving your information to someone that wants to steal your identity!

You might think, “Well if I have bad credit, then who cares if they steal it, won’t do any good for them anyhow.” That is not entirely accurate. Once they determine that your credit will not work, maybe your medical information will. Medical identity theft is rapidly growing due to increased health care costs and outrageous insurance premiums.

We recently heard of a victim who after applying for several car loans with no luck, and no return calls, she began receiving collection notices from a cancer treatment clinic in California. Since she lives in Maine, and is physically unable to travel, she got concerned.

Several months later, and several thousand dollars in attorney’s fees she found out that her social security number, income information, birth date, and other pertinent information was harvested from the internet and sold to scam artists that know how to generate medical insurance cards good enough to pass the “adequate” hospital screening process. All of this information harvesting was tracked to a website offering “guaranteed auto financing regardless of credit or income history”.

The worst part is her blood type was changed, because the person receiving cancer treatments on her information was type B and she was type A. Had she not caught this before going in for emergency treatment, she might have been pumped full of the wrong blood!

The moral of the story is, if you do not have the best credit and you want to get financing for a car or any other item, do some digging first to check on the credibility of the source you are working with. Your best bet will most likely be finding a dealership or local financing company that works with people to reestablish credit; or has other programs available that will fit your situation.

Second Hand Cars Market In India

A used car can be much cheaper than its new counterpart. The depreciation is lesser and car financing too can be obtained easily. A survey was conducted and it was revealed that the demand for the used car market in India per year is 1.4 million cars. Isn’t that surprising?

Unfortunately, only 10 per cent of the Indian used car market is organized. The remaining 90 per cent remains unorganized. Out of this unorganized segment, 30 per cent belongs to the automobile vendors and the remaining 60 per cent transactions are usually carried out directly by the used car buyer and customer. Most of the time, the two parties know each other. Such transactions happen in large numbers but within the law limits of India.

Car buyers, however, need to be aware that such transactions can be risky. In a country like India used automobile buyers get cheated very often. The pricing, maintenance claims and clear ownership records can all be made up. Mechanics who test the used car and middlemen who carry out the deal can manipulate a decision. First timers who have no clear idea of the condition of used cars usually available in the used car market are fooled very easily. The good-for-nothing old automobile fetches a good price.

Second hand car dealers, very often, use fake parts to offer an attractive price. The used car dealers get 5-10 per cent commission by settling the deal through low-quality parts. The new old automobile is therefore prone to repairs every now and then. However, this is not always true. The second-hand Indian market also consists of sellers who sell off their well-maintained cars in order to upgrade to bigger cars.

A pre-owned automobile may not come with warranties, OEM parts, insurance and taxes and this is exactly where auto makers have endeavored to bring in a system of checks and balances. The second hand market in India today has certified used car outlets screened by car makers. For the automobile seller, the certified used car outlet gives the best market price, thorough evaluation by experts, and an option to choose any other automobile from the manufacturer range. For buyers, such outlets offer a lot more. They get a warranty on the used automobile, insurance, repairs that use OEM parts and thorough checkups by trained technicians.

Some of the well known certified used car dealers in the Indian market are Maruti TrueValue, Honda Auto Terrace, Ford Assured, Toyota U Trust, Hyundai Advantage, Mahindra and Mahindra’s First Choice. Many more are yet to come to India. The branded used car chains are slowly realizing the potential of the used car market.

Industry experts expect 50 per cent of the used cars sales to be brought under organized car market over a period of 3 years. Used car outlets will probably spread into II tier cities by 2012. Car makers have realized that the used car market can generate very high revenues. Top car players say that their used car ventures are paying handsome dividends. Hence the companies are now making it mandatory for their dealers to run used car outlets too.

The branded used car outlets have now started buying and selling off second hand cars from multiple brands. By offering a one-stop shop for all customer queries, the outlets can win over customer loyalty. They provide assistance in not just buying and selling, but in financing, insurance and many other services too.

How To Determine If You Should Lease Or Buy A New Car

It is only normal for people to want to save money, and in terms of acquiring a new car, one of the most common questions is whether or not one should buy a new car or lease one. There are all kinds of experts out there who say one way or the other is “always” the right answer, but the problem is that their “right answers” fall on both sides of that fence.

The real answer is that it depends on you and what you want to accomplish, as well as your car habits. For car habits, we are referring to how often you get a new car. Do you get a new car once every couple of years, or only when the wheels fall off the previous one? If you always need to have a late model car and don’t care that it really never gets paid off, then leasing is probably a better option for you.

How many miles do you typically drive over the course of a year? If you are a traveling salesman or a tech support person covering a large geographic area, meaning you put a lot of miles on your car, then leasing is almost certainly not your best option. Leasing programs are getting more flexible these days, allowing you to specify how many miles you will drive over the course of your lease, but if it works out to be much more than the standard 12,000 miles per year, you will probably find that the cost of leasing actually exceeds the cost of buying a new car.

Look at it like this. On a lease, the dealer needs to figure out what he can sell the car for at the end of your lease period, say two years. At 12k miles per year, a two year old car with only 24k miles on it will still demand a decent price if it’s in good shape, and allow the dealer to make a reasonable profit on the sale. But that same two year old car with 50k miles on it is going to sell for considerably less because of the much higher mileage, and your lease payments will reflect the fact that the value of that vehicle is going to be less, and YOU will be paying the difference in your lease payments.

With a lease, you never build up any equity in the car. It is like having a permanent car payment. Yes, at the end of the lease you can buy the car, but at that point you could probably get a better deal on a better used car, so that is an option that very few people take advantage of. On a lease, you still pay for insurance, tires, oil changes, and all the other stuff that you would pay for if you owned the car. In fact, you will always need to carry full insurance coverage on the car, whereas you can drop the expensive collision insurance on a car that you own after you have paid it off.

On the other hand, if you are using the car for business purposes, a lease will provide you with a bigger tax write-off than a purchase, generally speaking. Also with leasing, your monthly payment will typically be less, depending of course on the model of car you choose.

If your credit rating is less than stellar, you may wish to consider purchasing instead. While you can find car loan programs for people with average credit and even bad credit, it is much more difficult to find a good lease program for people with less than good credit because the risk to the dealer and manufacturer is greater.

You need to do your homework and determine which is the best way to go based on your driving habits and car ownership habits. There is no right answer that fits all people, so make the informed decision that is right for you.