Car Woes – What consumers should watch out for!

Traffic in the morning can be a nightmare in most areas in the corporate area. However one thing that’s worse than dealing with traffic is dealing with public transportation. The interminable waiting then the lack of comfort can make travelling on public transportation very unattractive. As a result most persons have as a goal owning their own vehicle.

What though are the challenges of car ownership?

Cost

The main hurdle of course is the cost of car ownership. Often prospective car owners have no option but take out a loan.  Before you go this route though ensure that you research your options.

The interest rate for loans vary from one institution to another so this means with so many variations it is important to ensure that you choose one that fits your particular needs.

Whereas some loans will provide a lot of financing, you will still need additional funds for a deposit and insurance fees. If this is your first car, insurance rates might be high as you don’t have any bonuses accumulated as yet. Your age, length of time that you have been driving, make and model of the vehicle you are insuring all play a part in determining how much insurance that you will have to pay.

Be prepared

If you have already identified a car and are ready to qualify for a loan ensure that you are prepared. I recommend getting your pay stubs together and if necessary other banking transactions that show your ability to pay back the loan.

Examine your budget beforehand and determine what you can afford to pay back every month without significant cuts in your income. The loan officer will also be interested in any prior debts. If possible clear off those extra debts before entering a new loan arrangement.

Most lending agencies run credit checks so be prepared to explain any gaps in your credit history so as to qualify for the loan.

Check and double check

Unfortunately not everyone is honest. Therefore when purchasing vehicles it is best to do the following:

• Check the engine and chassis number on the title actually matches the car
• Ask questions about previous owner and see if a meeting can be arranged especially if they are using a go between to sell the vehicle.
• Check that the car has not been recently resprayed only to hide significant damage
• Take along a trusted mechanic to examine the car thoroughly before you buy.
• Never do large cash transaction without a third party and ensure that you give/receive receipts
• Ask for a recent valuation as this will outline the true value of the car and will be needed anyway for insurance purposes

So what are your thoughts on the issue? Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer

Tags: budget, car, credit, Insurance, Loan