Buying a car is one of the biggest investments most people will make in life. Financial responsibility with regard to cars includes a number of considerations. Much of your financial responsibility with car purchases centers on the actual purchase process and often associated financing, along with buying and maintaining insurance. Well-planned purchases can save you a lot of money and hassle with cars.
Financing Basics
For many people, home loans and car loans are a common way of life. When buying a car, you can usually finance a loan through the dealership, or by obtaining financing ahead of your car purchase. While dealership financing is convenient, and often produces a reasonable loan rate and terms, shopping around or arranging financing ahead of time may offer better opportunities. Car loans are usually paid off in periods of time ranging from 36 to 72 months through monthly payments of principal and interest.
Additional Insights
Home equity loans are lines of credit allow you to tap into your home's financing to borrow funds. Since your loan is secured by your real estate property, you usually get a much better rate than you would from an unsecured loan. Independent lenders may also make sense if you already have financial relationships with them. Paying off extra principal each month can expedite the repayment of your loan and save you on interest.
Insurance Basics
Liability car insurance is required in some form in 48 states, as of April 2010, according to the "Truth About Insurance Website." Wisconsin and New Hampshire are noted as not having liability insurance requirements, but drivers are required to show the ability to pay for damages to a third party in an at-fault accident. Liability pays benefits for bodily injury and property damage to another party. Along with the financial responsibility of carrying liability insurance, you may also consider comprehensive and collision benefits. Collision coverage pays benefits when you are in an accident; comprehensive covers other common causes of damage.
Insurance Breaks
One of the best ways to save money on insurance is to drive responsibility and to prove your worth. Many insurance providers offer discounts for good grades and advanced safety features, along with a proven history of safe driving. Defensive driving and avoiding accidents can save you extensive increases to your premiums and insurance costs. Making on-time payments to your carrier avoids late payment penalties. Additionally, by paying in full (every six or twelve month), you can usually get a price discount.
0 comments:
Post a Comment