Are you full of fear knowing that the time has come for you to purchase a vehicle? Concerned over how you will pay for it and the new insurance premium?
These are common issues that arise in the lives of every person once they take the leap to vehicle ownership. How then shall we curb these fears so they don’t “drive” us to foolish decisions?
That is the goal of this article, to help reduce any of the fears you may presently have. Consider this to be a helpful piece, not aiming to try and sell you any particular products or services. The only aim here is to be helpful.
The key to avoiding the undue hassle of dealing with a dealership is to be prepared before you step foot on their lot. This is not to say that every dealership will pounce on every customer. That is a blanket statement that is not fair to the folks who earn their living in this industry.
According to the Wall Street Journal, your better off securing financing from an institution other than the dealership. Another tip offered from the WSJ is that your vehicle payment should be no more than 20 percent of your income. This includes the car insurance premium as well.
Lets review one more common mistake as it pertains to purchasing a vehicle. Many of us are lured in with the promise of a small monthly payment, conveniently disregarding the length of the loan. What these well-intentioned loan officers often fail to mention is how much the consumer is paying in interest. Aim for a 3-5 year loan term to reduce your interest expense.
Some aspects of life are out of our control. Take, for example, car insurance rates. The Federal Consumer Price Index indicates that vehicle insurance rates typically rise 3 to 4 percent a year. However, in December of 2016, rates rose 7 percent from the previous year. 2017 saw rates rise 7.9 percent.
It is out of our control how industry-wide insurance rates rise and fall. What is in each of our control is becoming educated on how to best shop for vehicle insurance. A few simple tips follow to consider helping lower your premium:
– Bundling policies (i.e. renters insurance from the same company that provides your vehicle coverage)
– Consider raising your deductible to lower your monthly payment
– Do you need coverage for all that is provided? It may be that you can drop a few items from your policy
Continue working on improving your credit score, as the better it is, the lower your insurance premiums should become with time
One of the unfortunate realities of owning a vehicle, and driving it, is the unexpected. You wake early to go to work, feeling wonderful. Jump in your car and hit the highway for the short drive in to town. Suddenly, a semi careens into your lane, and the next thing you know your in the back of an ambulance.
According to a Los Angeles truck accident attorney, the damages that can occur to a law-abiding motorist caught in this type of accident include:
– Pain and suffering
– Mounting medical expenses
– Lost income
– Temporary or permanent disability
– Damage to property
Yes, you need auto insurance. But, when these types of unfortunate events occur, it becomes imperative to have legal counsel to offset any mitigating damages that have occurred. Financial freedom can be taken away in an instant through no fault of your own. Know this, so that if it happens, you know what to do.