Apply Now For Your FREE Loan Quote!
Thu 7th Jun, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Spending, Borrowing, Car ownership, Car finance, Car loans, Secured loans, Missed payments at 12:14 pm by admin
Since the beginning of this year thousands of Britons have purchased new cars and it is predicted that about 400,000 more will buy a car this year, with many of them ending up paying too much by using an expensive car loan.
When it comes to purchasing a car, there are many financing options that are available to a consumer. One of the most popular types of finance is the hire purchase, which is a loan that is secured against the car that is being purchased. Often this type of financing is offered by the car dealership, however consumers need to realise that they do not own the car until the total amount of the loan has been paid off; until then the car is owned by the car dealership and can be repossessed should you miss payments and default on the loan. The other downfall to a hire purchase is the fact that it is expensive. Many car dealerships offer 0% interest on a hire purchase, however these deals often require a deposit of as much as 40 percent of the asking price. The average interest rates on a hire purchase schemes are typically in the double digits, whereas a personal loan can be obtained for less than six percent.
Buyers can take out a personal loan to fund the purchase of a new car from another institute, such as their bank or a lender other than the car dealership. With a lower interest rate buyers can save a significant amount of money in terms of how much interest is paid out. Another benefit of applying for a personal loan when purchasing a new car is the fact that you will have the money in place beforehand, giving you the advantage of being able to bargain with the dealer. There are many other forms of financing; it’s just a matter of finding what is right for you.
Permalink
Tue 6th Mar, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Financial products, Spending, Unsecured loans, Borrowing, Car ownership, Car finance, Car loans, Secured loans at 10:26 am by admin
A new car can become an expensive purchase if you choose the wrong car loan. Often many people end up choosing finance plans that are offered by car dealerships because they are not aware that they can obtain a loan elsewhere. Financing through a car dealership is not the best choice as they often charge high rates of interest and really only bear in mind the commission that they will be making off of you. Don’t be fooled into believing that a loan through a car dealer is your only option. Look into financing through an independent car loan specialist, as you are more likely to be offered a low interest rate and a repayment plan spread over a period of time that you choose. It is worth searching around for the best loan on the market.
With car loans, there are two types; a specialist car loan and a regular personal loan. A specialist car loan is where the amount of the loan is secured against the car instead of your house. Where as a regular personal loan is unsecured and requires security against the amount borrowed. Typically a specialist car loan offers borrowers a lower interest rate, because the lenders have security for their investment, whereas they have none on an unsecured personal loan.
The repayments on a car loan really depend on the repayment plan that you and the lender decide upon, the length of time you wish to pay back the loan, and also the interest rate on the loan. When you are shopping around for a car loan, ask lenders what type of loan you can qualify for and what loan would be best for you. You want to compare the interest rate, and the benefits that the lenders offer you. By shopping around and comparing various types of car loans, you will be able to find a loan that is right for you and your personal circumstances. By searching for financing through various companies, either online or with a bank, you won’t end up being suckered into financing through a car dealership. Comparing and finding other financing routes will pay off.
Permalink
Wed 21st Feb, 2007
Posted in Consumer Credit, UK Finance, interest rates, Savings, Student debt, Homeowners, Spending, Property, Financial news, Borrowing, Car ownership, Car finance, Personal debt at 1:27 pm by admin
The basic cost of living expands far beyond interest rates, council taxes, and increasing utility bills. The cost of living is impacted by life choices and decisions consumers make.
One group of consumers who are hit hardest is divorced and single parents. This consumer group needs to survive without a dual income, but they also need to absorb the cost of the divorce. Norwich Union’s “Cost of Divorce” survey reveals that couples spend £28,000 to divorce, twice that of 2003.
Another cost that has increased dramatically is the cost of driving. The average car now costs £5,539 a year to run, equivalent to £15 a day. This is spurred by an increase in fuel costs. However, it is also increased by consumer’s desire for better automobiles.
Several reports published last year stated that new graduates are discouraged at the cost of living. Many claim that they will not be able to afford to buy a home, or start a family, for at least a decade because of their student loans.
The cost of raising a child from birth to 21 years old is £180,137, or £23.50 per day. The cost of raising a child rose 9 per cent last year alone, according to research from Liverpool Victoria.
Not all increases in the cost of living are necessity based. Britons are now spending more on eating in restaurants, pubs and on takeaway meals than on buying fresh and processed food and drink products to have at home. This has increased their food bills substantially.
The average wedding will now cost £19,595.This is a major blow for the 45 per cent of couples, approximately 117,000, who claim they have no financial planning to pay for their wedding, according to stockbrokers Brewin Dolphin Securities’ research.
Permalink
Thu 15th Feb, 2007
Posted in Consumer Credit, Banking, UK Finance, Savings, Homeowners, Spending, Car ownership, Insurance at 10:44 am by admin
You are never too young to start saving for your retirement. Although majority of us never look that far, it is always those who plan ahead who get ahead. If we start to think about retirement early on and start to make some effort to save for our retirement years, then we are already off on a good start.
It is never too early to start saving for your retirement, and no matter how little you save you will be amazed at how much it can accumulate to throughout the years. To start off on your savings plan you can start by making a few changes and learning some tips on how to save as the year’s progress.
One way of saving is by renewing your insurance. As you get older, your insurance coverage may need to change your coverage, as you will not need the same coverage for life. Your house and car insurance could possibly be reduced as your age increases. Your life insurance policy could be reduced as well. If your children are grown and living on their own and financially secure then your main focus should be your spouse. By figuring out just how much you want to leave for your spouse and your children who are now financially independent, you can lower the amount on your life insurance and put the extra savings aside into a retirement fund.
Resisting the urge to replace your car every two years can also make a big difference and help you save. If you stick it out until your loan is paid off and keep your car, you can then use the money you were spending on your monthly payments and set it aside into your retirement fund. If you purchase a good quality car and take care of your car, it can last you years and save you hundreds, even thousands.
Paying off your credit cards is the biggest saving you can make. When you pay off your cards, you save yourself the high interest charges that you are paying. Paying off your cards will also ensure financial security when you are older as you will have no debt hanging over your head.
By looking at your expenses and finding ways to cut them down, and putting aside the money you save by cutting these expenses, you can easily accumulate a large sum of money into your retirement fund. Although retirement may seem a far off goal, you should still make it a goal to save.
Permalink
Wed 31st Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Consumer debt, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Car ownership, Car finance, Car loans, Personal debt, Secured loans at 10:09 am by admin
If you have very poor credit, then it may be advisable for you to consider very carefully before you take any extra credit on board. However, if you do need credit, there are a number of lenders that are currently catering to this market. The loans reviewed here are not dependent on home ownership and are available to be used on cars. Accept car credit for example, offer car loans that allow you to buy from any car dealer in the country. They have a loan on offer at 28.7 percent that is a fixed rate. Accept do not advise what the early redemption fee will be but do state that there is likely to be one. There are no other fees associated with the loan. This is the Gold loan.
If you have trouble qualifying for the Gold loan, then Accept also offer a Silver loan that comes in at a more expensive 36.2 percent. This loan offers similar terms to the Gold loan, apart from the higher interest rate that is charged.
An even more expensive option is Auto Credit Finance which offers an online car loan priced at a whopping 38.9 percent. It would not be very advisable to take out a loan at this price but it available with no arrangement fees and an early redemption charge that varies from applicant to applicant.
Finally, there is the Personal Loan Centre which offers an unsecured loan at 48.2 percent. This loan is available to all qualifying applicants with no requirement for security. The Loan is offered by the London Scottish Bank Group and research shows that actual APRs may be as high as 60.8 percent. At this rate you may be better off waiting till you can buy your car outright.
Permalink
Tue 16th Jan, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Spending, Financial news, Borrowing, Car ownership, Car finance, Car loans at 12:56 pm by admin
If there is one thing that people love spending money on, it is a new car. It seems that even with all the new products and services that are available to people today, it is still cars that top the wish list of most peoples’ shopping basket. Women are also quickly becoming hooked on the excitement of buying a new car and sellers report that women are now significantly involved in the purchase of 80% of all new car sales in the UK.
However, if you are buying a new car, then there are a lot of factors that you should bear in mind before you sign on the dotted line. First of all, you should know that there are many extra costs involved. Just because a car is advertised at a certain price does not mean that that is the price that you are going to pay. Straight away you may have to add a delivery charge to the price as many car retailers charge for this. Then you will also have to add the cost of all of the extra features that you require. While these are not compulsory, most of us end up being tempted by a few of the extras that car manufacturers offer.
Then there are the related costs of road tax and insurance. While road tax is usually quite inexpensive, you should certainly find out what band a vehicle falls into before you make your purchase. You should also look into the cost of insuring the vehicle. Once you compare how much various cars cost to insure, you may well decide to change your decision on which vehicle offers you the best value for your budget. And don’t forget the financing costs, as very few people pay for their car outright.
Finally, you should always remember that the vast majority of car dealers are still willing to haggle over the price. Even if they say they are not. Car sellers are notorious for posting prices that they hope to achieve, even if they are willing to sell for a significantly lower sum. So shop around, and always try to bargain. You may be surprised how flexible many car prices actually are.
Permalink
Tue 12th Dec, 2006
Posted in Consumer Credit, UK Finance, Consumer debt, Property, Financial news, Borrowing, Car ownership, Car finance, Car loans at 12:19 pm by admin
A survey of more than 1,500 consumers has found that a major concern for consumers who are researching their next car purchase is that they don’t end up with a stolen car. Consumers who have bought a used car in the past three years are particularly concerned about this. However, Experian says that used car buyers face another problem, as there are many fraudsters who will sell them a car with finance still outstanding on it. Last year, there were 3.6 million new car finance agreements, with a further 2.8 million agreements up to the end of September 2006.
Rob Whalley, Managing Director of Experian’s Automotive division, said: ‘Not enough car buyers are aware of what may happen if they do end up with a car that still has finance outstanding on it. If a loan or hire purchase agreement is still outstanding on a car that has just been bought, the finance company will retain a legal interest in the vehicle until the loan is repaid in full. If the loan is not repaid, the car could be repossessed.’
He added: ‘The mistake that a lot of car buyers make is to believe that as an innocent purchaser, they would easily retain ownership of a vehicle in this situation. However, they would have to prove that they really are an innocent purchaser to the finance company which, in practice, can be an extremely difficult and lengthy process.’
Experian offers a vehicle history check service called Autocheck which reveals the full financial history of a used car. Mr Whalley added: ‘We have found that around 30 per cent of all the cars we have checked still have finance on them. This does not necessarily mean that every single one of those cars was sold fraudulently, but it does highlight the extent of the issue and the fact that it is better to be safe than sorry and ensure that the previous owner pays off any finance agreement in full before ownership passes hands.’
Permalink
