Archive for September, 2015

car-loan-1-2

Plenty of Options to Secure a Loan

Just because you’ve had a run of bad luck and had to file bankruptcy doesn’t mean you have to drive that old jalopy for the next 7 years. If you’ve recently had your bankruptcy discharged, chances are you’ve received offers in the mail from car dealerships like the ones in the Chapman Arizona group. They know that bad things sometimes happen to good people and the chances of you defaulting on another loan are slim. Financing through the dealership is one of the options at your disposal.

Lay Your Cards on the Table

When you visit a car dealership, there’s no need to be embarrassed about your financial problems. To save everyone’s time, it’s important to be upfront about your credit history so the finance department can work with appropriate lenders. Although your financial problems may not have been your fault, you will have to pay a penalty for defaulting on loans in the form of higher interest rates. Subprime lenders consider issuing a loan to someone with a low credit score a higher risk, and they charge extra fees to help make up for that risk. The good news is that even though your loan interest rate may be high, once you’ve made the payments on time for a couple of years you should be able to refinance the loan at a much lower rate. This is a great way to start rebuilding your credit after a bankruptcy.

Avoid Buy Here, Pay Here if Possible

Unless you absolutely can’t get financed anywhere else, it’s a good idea to avoid the “buy here, pay here” car lots. At these independent dealerships, your down payment is typically all the car is worth. You’re then stuck making high interest payments for several years on a car that may be well past its prime. Cars in this category typically have well over 100,000 miles on them, with little or no warranty. Make the self-financed auto lot your last resort.

Save a Down Payment, Have Proof of Income

When you go to finance a car following a bankruptcy, lenders are typically going to ask for at least 10 percent of the purchase price down. You can frequently “buy down” the interest rate by putting more money down. You’ll also need to have proof of income in the form of pay stubs or W-2 statements. Lenders also may ask for personal references, so it’s handy to have at least six of those jotted down on a piece of paper. Reputable dealerships like those in the Chapman Arizona group do not judge you based on your financial history. Their goal is to get you into some reliable transportation that you can pay off as you work your way out of your credit problems.

Your trailer is doing a scary dance at the back of your SUV as you travel along the highway. The dancing trailer even begins to sway into other lanes while tugging on your SUV back end. Not only does this feel creepy, it is downright unsafe. It was as sure footed as a mountain goat earlier this morning, the only things added were some luggage, camping gear and extra water in the camper’s water tank.

Towing a trailer is not as simple as it looks. Who knew that something minor like adding a few hundred extra pounds are the back could change the stability of the rig so dramatically? The simple tips below will keep you safe while towing.

The Proper Gear

Every hitch is different and the amount of weight that your vehicle is able to tow safely is outlined by the vehicle maker and clearly outlined in the owner’s manual.

Experts suggest installing a hitch receiver which is heavy-duty enough to correspond to the vehicle’s GWT as well as tongue-weight specifications, even though you might be towing something smaller. The majority of hitches use a drawbar that is removable, that holds the hitch ball. The drawbars are available in two sizes – 1.25″ (for pop-ups that are lightweight as well as bike racks); 2″ (for heavy loads). Usually the larger the hitch ball, the more weight it can tow.

1. Cross the Chains for Safety
Chains should be the hitch of last resort: In the event the tongue loses its grasp on the ball, the chains will prevent the trailer from jumping the guardrail into approaching vehicle traffic or something just as problematic.

2. Examine the Trailer-Wiring Harness
This standardized plug and socket electrical wires and the color coding design makes it convenient to mount the connection correctly to the tow harness on the vehicle. In order to prevent corrosion, use dielectric grease to spray the contacts.

3. Make Sure to Double Check the Brake Battery Power
Trailers with electric powered brakes depend on a compact gel-cell battery source to begin stopping once the breakaway lanyard is yanked. The battery usually charges anytime the vehicle engine is running. Long storage times or bad wiring can drain the power, so it is best to check it before going on your trip. A voltmeter to a test list will let you know if the battery has juice. If there is no power, connect the external charger to make sure the brakes are working properly.

4. Set Your Tongue Weight
The main reason why trailers sway is because of inadequate tongue weight, since stability is increased when more tongue weight is added.

When you have added enough tongue weight to gain stability (usually around 10% of the weight of the trailer), it is possible that the hitch might have too much stress. In such cases, you will need to adjust the stiffness bars for your specific trailer. Take a look at your manual or consult a trailering expert to resolve this issue.

Find out more about used cars in Phoenix at Chapman Arizona.

lotsample

Resales Up to Record High

The average cost of a used car in America topped out at a record $18,800 in the second quarter of 2015, up about $1,300 from the same time in the previous year. Auto consumer site Edmunds.com released the information, proving that demand for used cars is just as strong as that for new vehicles. Part of the reason is the difference in cost between a used car and a new car, and part of it ties back to the Great Recession of 2008. No matter the reason, the Chapman Arizona dealers all have a healthy collection of used cars in Phoenix at all price points, including one that is sure to fit your needs.

Great Recession Creates Limited Supply

Remember the Great Recession that started in 2008? That’s the one where the big three automakers all nearly went belly up, consumers stopped buying new cars and the auto industry was in great danger. As a result, automakers stopped producing vehicles in record numbers and have only recently started to ramp production up to pre-recession levels. That means that all those cars that weren’t produced for a few years are now not available to put in the market as used cars. That creates a limited supply, which naturally drives the price of used cars up. Although the auto industry has rebounded nicely, there is no way to re-create the production of cars in that period, which means used car inventories will be lower than normal for the next few years.

Used Cars are Nearly New

The loss of production in 2008-2010 means that cars produced after that time are now “nearly new” instead of just used. Lower miles and newer model years naturally translate into higher prices. Many of these vehicles are 3-years old and have just come off leases. These are traditionally the prime years for a used vehicle where dealerships can charge the most. Off-lease cars have been maintained, usually have very low miles and are attractive for people who want a modern vehicle without paying the depreciation that comes with a brand new car.

Certified Pre-Owned an Attractive Option

Many of the vehicles just coming off a lease also qualify for Certified Pre-Owned status. This usually means additional benefits from the dealership, including better financing rates, a limited warranty and sometimes included maintenance. Visit your Chapman Arizona dealer for additional information about the CPO program and whether or not it makes sense for you to buy a used or new vehicle.