Autos and motos: all news and articles

When it comes to affording your next new car (used cars too if they are new to you), how closely do you look at your budget? And from what perspective do you evaluate your budgetary parameters?

Based on my years of experience, I would say that many people only have a mild idea of how much car they can afford.

When you’re in the car shopping mode do you think in terms of bottom line cash price or think only of what your monthly payments will be?

Either way, as you take a look at what you can afford, you have to take into consideration all of the extra costs involved in buying/owning a car. Certainly today fuel costs are a major consideration. And there is always going to be your insurance premium, maintenance costs (used cars will be higher), etc.

Once you begin your car shopping, if you only have a ballpark idea of what you can afford… and only a ballpark idea of how much you drive and what your gas expense will be, and if you haven’t nailed down what your insurance premiums will be, you are on a fast path to end paying too much for your vehicle.

You must crunch your budget numbers… and not just your new car price numbers. Start with your take home pay (not gross pay) then start deducting all of your monthly living expenses. If you’ve never worked up a budget before; now is the perfect time to get one started. A simple spreadsheet is a great way to keep track of and illuminate your numbers.

Everyone’s means to afford their car varies, but by most standards you shouldn’t ear mark more than 15 to 20 percent of your take home income pay for your transportation costs.

It’s important to understand, no matter what your financial means, you’ve got to know your numbers up front and first before you even begin looking for potential vehicles. Don’t even make a preliminary pass at looking at cars before you do this.

If you do, you run the risk of ‘falling in love’ with a particular vehicle. As is the case with so many people; when they do this, they begin to justify affording a vehicle they either can’t afford, or have too stretch beyond their comfortable means in order to do so. Doing your budgeting first and knowing what you can afford (and what you can’t) will help take the emotion out of your buying process… in fact, it will probably save you time as well since you won’t be trying to purchase a car that is not within your budget limits. Do your car shopping intelligently and factually. It will save time, money, and quite a bit of stress.

Now once you get your budget all mapped out and ready to go are you now ready to go shopping for your next car?

Nope… Not yet.

Do you know your credit score? Your credit score is a big part of your financing expense; unless of course, you are one of the few people that actually pay cash for their vehicles. So, run your credit score. And you should do this well in advance of getting to the dealership. In fact, you should pull your credit as much as six months in advance. This way if there is outdated or incorrect data on your report, you will have time to get it expunged or corrected. Getting your credit score and your credit in order is whole new continuing topic beyond this article and you can learn more by visiting my website.

In summary, do your kitchen table homework first with your personal financials and the budgeting of them before you even begin considering any type of car. Be sure to consider all the expenses associated with owning a car; especially how many miles you’ll drive each week… fuel expense. Then you can begin narrowing your car search by looking for cars that fit your budget… and not trying to get your budget to fit the car you just picked out.

***It’s easy to say what the law is – legislatures must write it down and publish it for all to read – but harder to live with its consequences. Looking across the US, all but three states have laws setting mandatory insurance levels for all vehicles on the road. Almost without exception, all these states also have laws making it a crime to drive a vehicle on a public road without a valid policy in force. This gives all drivers a simple choice. Either carry the minimum insurance or risk fines and, in some states, the confiscation of the vehicle. All these laws are a compromise between the interests of drivers and the interests of people who may be injured in traffic accidents. The more Libertarian view is personal responsibility. If you do something, you should be prepared for the consequences. That would mean every driver having enough cash in the bank to pay out every time their driving injures someone else or damages their property. But not everyone can afford to pay the medical costs for treating those they injure. This would be seriously unfair. Suppose you were walking along the sidewalk and a car knocks you down. Surely you should not have to pay your own medical costs? The answer is mandatory insurance so there is always some money to pay out to the innocent victims.

Most people agree this is a good idea but there’s a problem. Almost all these states set the mandatory amount forty or fifty years ago. What was an adequate amount then is a drop in the ocean today. So this February, Wisconsin bit the bullet and increased the mandatory rates both for liability insurance and for insurance against uninsured or underinsured drivers. The governor signed the bill into law and everyone sat back and awaited the results. The mail boxes have recently experienced a flood of renewal notices showing significantly higher premiums for the mandatory minimum cover. Needless to say, the Republicans are now promoting a bill to repeal the law making liability insurance mandatory. As it stands, about 14% of all drivers are uninsured. These premium increases during a recession are likely to increase this percentage significantly.

This review of the minimum amounts after forty years was perfectly reasonable. Most other states will have to follow Wisconsin’s example sooner or later. It’s just not acceptable to have such low minimums when medical and repair costs have risen so sharply. But the timing is unfortunate. Insurers had invested their funds in the stock and bond markets. When the recession hit, they lost a hefty slice of their capital reserves. There’s another law requiring insurers to have enough capital in hand to pay out all the expected claims. To build their capital back up to the required levels, all insurers are therefore raising their premium rates. Each state’s insurance department is insisting on putting more money into the reserves. This means you must shop around. Get auto insurance quotes from as many companies as possible to find the best prices. Not all companies lost heavily. Equally, the smaller companies will have to raise the cash from smaller groups of policy holders, i.e. more from each individual. So get the maximum possible number of auto insurance quotes to survey the market before buying.-

If you are new to the exciting sport of snowmobiling, then it is a smart and economical option for you to purchase a used snowmobile. You may want to introduce your kid to the sport and may not want to invest in a brand new snowmobile till he or she learns to use one as a professional. The average investment that a snowmobile needs is more than ten thousand dollars. Looking at the figures, it makes sense to shop for used snowmobiles in Ontario if you happen to be an amateur at the sport.

Even in used snowmobiles for sale, there are many models to choose from and their prices differ accordingly. You have to consider where and how the snowmobile is going to be used, before making a purchase.

Used snowmobiles in Alberta can be purchased from sled dealers as they usually have old ones for sale. A benefit here is that an authorized dealer will have a snowmobile that has been inspected and repaired before it is being put up for sale, so that the risk of buying a faulty used snowmobile with faulty brakes or bad set of skis is reduced. Some dealers of snowmobiles for sale also offer some days warranty for a used snowmobile so that in case faults crop up on usage you can get them rectified for free. Another way that you can buy a used snowmobile is by searching in classified advertisements either in the paper or online.

If you know what to look for in a used sled then you will be able to buy yourself a decent used snowmobile. It is practical to do your homework and ask around so that you are familiar with the market prices for used snowmobiles for sale.

Buy from a local source so that you can personally check and test ride the used snowmobile. Many times it may happen that you may be shown a picture of a snowmobile the way it looked when it was built but what you may get is a sorry state of the snowmobile. A test ride is important as it allows you to check the braking system, the engine, the performance, the stability and alignment of the used snowmobile.

Before you decide on what make and model of the snowmobile you will buy, you need to give a thought as to where and how you will use the snowmobile. If you are looking for using the snowmobile on well-travelled trails on fun weekends spent with family and friends, then there is no point in investing in a used snowmobile which is meant for racing on deep snow or mountainous terrain. For that, a basic snowmobile which has a small yet fuel efficient engine will do. For mountainous regions, a snowmobile meant for higher altitudes will be necessary.
Then there are used snowmobiles which are meant for racing and extreme sports. But these are custom made or modified for high speeds and durability. Such snowmobiles are not meant for standard trails as they can reach speeds of 180 miles per hour.

Once you have made your purchase, make sure you head out on the snow and have a ride of a lifetime!