Don't Buy a Car From a Tote The Note Dealership

I have been all around the car business for years and I hate to see people make mistakes that hurt them in the end.  Simply buying a car from a tote the note dealership is a terrible waist of money, it is always overpriced and does nothing but damage your credit report.  The reality is that there are ways to get a car with the same qualifications that a tote the note lot wants you to have.  The difference is it will be reported to all the major credit bureaus and usually has a warrantee to give you a piece of mind.

This is how a tote the note lot works, they shop used car auctions and buy cars that major dealers don't want, usually for under $3000.  Most of the time they don't even dive them if the seller (another used dealer) says that it is good.  Then they put it on their lot for $5999, yes that much profit.  The reason is simple your down payment is usually about half or all of what they have spent on the car.  Then your payments for the next 4-5 years are mostly, or all profit for them, but does nothing for you.   In the next four or five years if you have a car problem you are just stuck in a bind.  If you call the lot they say it is not their problem, or they say they will have their shady-tree mechanic fix it.  Then extend your note so they can make some more money from you.  If you can't afford to fix it you still have to pay or they will repo it, and most times report it onto your credit report.  That's the problem they only report if you default on your credit report.  They don't report all the payments on time you made.  They don't want your credit to get any better so that you and others have to come back and buy cars from them.  Then they take that same car and sell it to somebody else, and guess what, this time it is all profit.  There is a better way.

There are some major dealerships (Dodge Chevy Ford) that have special finance programs that work especially with people with poor credit, or even no credit and even without a cosigner.  The way this works is a car is traded in, and the dealership has their service station inspect it.  They load the info like miles, condition, make and model into a program and the special finance lender determines the price.  That way you can't get overcharged.  The reason is that the lender does not want to repo the car and have to resale it.  That's why they will usually give you a 2-3 year payment around 250 mo so that you can pay it off quick.  Usually they like to cover it with a warrantee for special finance customers.  Just incase your car breaks down you will be able to have it fixed and continue your payments.

Here is the best part, a special finance company will report to the bureaus every month of your on time payments, that will start to raise your credit score.  All you need is six months to a year of on time payments on your report, and then a regular lender will give you a shot.  A major dealership wants your credit to get better so you can comeback and buy again.

"But I went to a major dealership and they embarrassed me about my credit." you say, not all major dealerships deal with special finance.  There is an even easier way; you can apply for your financing online, with special finance lenders.  Then you never have to worry about the public rejection of the dealership, and they never see your credit.  Most companies will approve you instantly or in 24 hours.  You can print your approval out and go and shop like everybody else.

Buying a Car and Saving Money

Aside from their home, most Americans will spend more money on their car than on anything else they will buy.  And yet, when it comes time to buy that car, most people spend far more time researching the engine, the stereo and the moon roof than they will the finances of the purchase.  By failing to do a little homework on the finances, many people end up spending more money for their car, truck or van than they otherwise might.  

A little bit of work ahead of time can help you save quite a bit of money on your car purchase.  Here are some tips that might help:

Check your credit report - A few months before you decide to buy you should check your credit report for errors.  Mistakes on your report could adversely affect your credit score, which will prevent you from obtaining financing at the lowest possible interest rate.  While you are checking your credit report, check your credit score, too.  That way you can avoid an occasional scam where the salesman tries to trick you into paying a higher rate by falsely claiming that your credit score is too low.  You can't fall for that one if you know your score.

Arrange your financing in advance - While you can sometimes get competitive financing from the dealer, you may do better at your bank, credit union, or online lender.  Check with those sources ahead of time to find the best possible deal.

Watch for factory incentives - Sometimes, the manufacturer will offer inexpensive financing.  In the past, such deals have gone as low as 0%.  If such a deal is available, no bank or credit union will be able to match it, so keep an eye out for such incentives.  Cash back bonuses are often available from the manufacturer, too, and those can be applied to your down payment. 

Check the pricing - A number of Websites, such as Edmunds.com,  offer information on pricing.  With that information, you can negotiate the best possible deal. 

Ponder the extras - Undercoat?  Extended warranty?  These are things you may wish to consider before the salesman asks you if you want to buy them.  Whether you do or not is your own choice, but you don't want to get caught with the extra expenses if these are things you do not need. 

Buying a car need not be a complicated procedure, but it works best if you know ahead of time how you intend to go about it.  The better your preparation, the less harrowing your experience of buying a new car will be.

5 Ways To Save Money On Your Car’s Gasoline

With gasoline prices steadily on the rise, many commuters are finding it more and more difficult to justify spending their hard earned money on the high cost of fuel rather than other necessities, including food and electricity.  With that in mind, there are five simple steps that you can take to help stretch your dollar a little bit farther when it comes to your car’s fuel consumption.

Carpool.  If you have children who are in school, consider sharing the driving responsibility with other mothers that live nearby.  This is especially helpful if you can alternate days.  Perhaps you would drive the children on Monday and Wednesday, while the other women fill in on the rest of the weekdays.  This will save you money on gasoline and will also make the children’s ride to school a lot of fun because they will be riding with friends.  The same is true of commuters on their way to work, who can share in the responsibility and costs of driving amongst one another. 

Buy a smaller car.  If you own an SUV or other large vehicle, your gas mileage per gallon will be less than if you were to own a smaller car.  As a general rule, larger vehicles just normally use more gasoline.  If you want to save money on the cost of fuel, buying a smaller car is a good start.

Purchase a hybrid car.  These cars are fairly new on the market and are still quite expensive, but many find the benefits outweigh the high cost when they figure in their savings on fuel.  Hybrid cars usually get better gas mileage per gallon and this results in big savings for the owner.

Turn off the ignition.  If you are stuck in traffic that is moving about an inch per minute, then just put the car in park and turn the ignition off.  While sitting in traffic, you are just using more and more gasoline and aren’t really getting anywhere.  Rather than waste, try to save money by not leaving your car running in parking lots or your driveway.  If you need to stop by the store and will just be gone for a minute, take the time to turn the ignition off.  In addition to saving on gasoline, you will be ensuring that your car isn’t stolen by turning off the ignition and taking your keys inside the store with you.  Many people would be surprised to know how many shoppers actually leave their car running while in the store.

Walk.  If you live near a store, walk instead of driving.  This will save not only in the price of your car’s gasoline, but also in the general everyday wear and tear that your car receives by being out on the road.  No to mention, walking is good exercise and is generally safe for most people.  So why not walk off some of those pesky winter pounds and save some money on gasoline in the process.

The aforementioned ways are five of the most popular to help you save some extra money where fuel is concerned.  Some of the more obvious ways are to stock up when gasoline is decreasing in price.  If you get $10 or $15 worth of gasoline every few days, you may get a good price one day and a terrible cost per gallon during the next trip.  However, if you fill up your car’s gasoline tank while prices are still low, you will be sure to get the best deal possible.  Not only that, but you may also end up saving some time at the gas pump when all of the other consumers are waiting in line to fill up before the prices go even higher.