How to Save for a New Car

When it comes to getting a car, it can be prohibitively expensive. This makes some sense, as cars are somewhat expensive to make, though I would argue not nearly as expensive as they are to buy. Businesses have to make a profit, but this is a bit of a stretch, especially considering how necessary an automobile is in this day and age. But, I digress. The point is that it’s costly to buy a car. And, yet you must. Financing a car is often a matter of receiving a loan, so it’s not all bad, assuming your credit is okay. However, you’re going to need to play your cards right in order to succeed at paying for a card, so here is some advice.

First and foremost, keep track of your payments. As stated above, you’re going to be spending a lot of money, either to pay for the car or paying back the loan you used to get the car. Therefore, you’re going to have a paper trail that you may need to reference in case of a mistake with one of your payments. You’ll want to keep track of every document pertinent to your car or loan payments. One great way to do this is have them laminated to increase their durability, as a laminated document is lest malleable and less prone to tearing, and you can each wash off the protective laminate if it gets dirty. Alternatively, using a service like Vistaprint can offer you a sturdier copy of your documents. Keeping these documents in a folder in a safe place is also a must. It’s worth noting that you can apply this advice to most financial recordkeeping for the utmost security should you need to prove something.

Next, you’ll want to find ways to save money. Saving money is crucial, because you won’t want to miss even a single payment, as you will end up paying more in the long run. Therefore, finding ways to cut costs elsewhere is a must. There are a wide variety of ways you can do this. For starters, search online for products you need to see if you can find them on sale or find a coupon to save on these items. The cost cutting offers are frequently employed by retailers to drum up some extra business, so an eagle eyed shopper stands to save a ton. Another way to save is by buying generic or off brand products, instead of the name brand. These off brand products are almost always just as good as, if not better than, the “Real thing,” so you’ll save money without sacrificing quality, in most cases. Results may vary, of course, but even trying and failing is worth it. What do you really have to lose?

What is the Maximum Auto Loan Interest Rate in Tennessee?

The General Provisions as set forth by the Tennessee legislature have set the maximum auto loan rate in Tennessee as the lesser amount of 24 percent or 4 percent above the prime rate as set by the Federal Reserve. Let’s have a look at who may have to pay the highest interest rate in Tennessee, how that rate can impact your wallet, and what options you may have.

Who Faces the Maximum Rate

The only people who may have to pay the maximum auto loan interest rate in Tennessee are borrowers who have a poor history with auto loans. Bad credit auto loans with the highest interest rates are usually reserved for borrowers who have made multiple late payments on previous car loans or who have had a repossession within the last two years. On the other hand, if you have bad credit in general, but have made all of your auto loan payments on time in the past, you should be able to avoid the top rate.

How The Highest Rate Impacts Your Wallet

Paying the highest auto loan rate will impact your wallet in two ways: your monthly payment and the total interest paid that you will pay. In order to show you how hard the impact will be, let’s model a loan. The loan is for $20,000 over a term of 60 months. If you are required to pay the 24 percent rate, your monthly payment would be $575.36 and you would pay a total of $14,521.56 in interest over the life of the loan. That same loan at today’s prime rate of 2.68 percent would have a monthly payment of just $356.64 and the total interest paid would drop to $1,392.21.

Your Options

Fortunately, with bad credit auto loans, time is often on your side. So, your first option is to wait before purchasing a car. The reason is that late payments and repossessions begin to have less of a negative affect on your credit score as time passes. The impact from late payments begins to fade six months after you start making your payments on time. Repossessions take a bit longer; impacting your credit score quite hard for two years after all legal filings have been made.

While you wait, you can begin to build a positive payment history by obtaining a credit card. Even if it is a secured card, making all of your payments on time and keeping the balance under thirty percent of the credit limit will boost your credit score after just six payments.

If you can’t wait, then you will want to shop your auto loan around. The best place to look, if you want to avoid the maximum auto loan interest rate in Tennessee, is online. There are many specialty lenders who operate online only, keeping their costs down, so they can offer auto loans to riskier borrowers.

UAW Shows Renewed Interest in Unionizing VW Chattanooga Factory

The United Auto Workers union is showing a renewed interest in unionizing the Volkswagen factory in Chattanooga. Frank Patta, the general secretary of VW’s Global Group Works Council, has said that his representatives will support the union. Patta cites political turmoil as the reason the group lost its previous election for representation, by a vote of 712 to 626.

However, the UAW agreed not to call for another election for at least a year after withdrawing their appeal, so organizing a union for the plant will be complicated. Workers could organize a works council on their own. If the workers decide to wait out the one-year period called for in the agreement made when dropping their appeal, they could try to organize separate portions of the plant.

Patta believes that the factory, which is one of the few Volkswagen factories without representation on the Global Group Works Council, will eventually get a seat. But if the first attempt is a show of what’s to come, it may prove to be a long and difficult process.

Read the full article here:

When Will Electric Cars Be Affordable?

Electric cars may very well be the future of the automotive industry, but that could be many years off. The key is making electric cars affordable and practical for everyone.

First, let’s look at a little bit of history. Electric cars are not new. The first all electric vehicle was made in 1828 by Anyos Jedlik. The first all electric vehicle made in America was produced by Thomas Davenport in 1834. An all electric car held the world land speed record until 1900. So, electric vehicles are not a new invention. The obstacles to mass production then were a low top speed, short range, and inability to recharge the fuel cells.

EV Barriers to Success:  Range and Affordability

Today, the top speed and recharging issues have been solved, but short range and affordability are holding electric cars back. It is very possible that solving the range issue will solve the affordability problem as well. Battery technology is crucial to this, and innovations are being made at a rapid pace. To boot, the range component may be more of a perceived issue versus an actual one, as the Union of Concerned Scientists recently found that 42% of American households could switch to an EV with no change in driving habits.

Remember, every bit of new technology hits the market with a high price. As a larger market develops for the product, the price usually drops in order to sell in volume; the theory being that the profit from volume will outstrip the profit per item. This theory has been proven out for centuries.

Now back to electric cars. When the range of an electric car becomes sufficient to meet the daily driving needs of a wide range of Americans, more Americans will want to buy them. That should take us back to the volume sales over profit per item theory. When there is a larger market, electric cars should become more affordable for all. Given that an all electric car now costs about 40 percent less than one did just ten years ago, it seems as if this theory is proving itself, albeit slowly. Before the year 2020, it’s conceivable that a manufacturer will introduce a mass-market, low-price EV that’s affordable for the majority of new car-buyers.

Tennessee 32nd Most Expensive State to Own a Car

Did you know that where you live affects how much it will cost you to own your car? The cost of a car doesn’t end at the dealership. There are ongoing taxes, gas, and insurance. Depending on where you live in the United States, it affects how high your ownership cost can be.

The Most Expensive States

The top three most expensive states are Wyoming, California, and Georgia. Wyoming’s costs are high due to gas prices and bison. Frequent collisions with bison raise insurance rates. Californians pay high annual taxes for poorly-maintained roads. Georgia’s combination of taxes and high gas prices make it the most costly state to own a car. Oregonians have the lowest insurance costs. They pay no state sales tax, and don’t have to pump their own gas. This makes it the cheapest state in which to own a car. 

What about Tennessee?

Tennessee is the 32nd most expensive state, costing about $3000 per year.  That’s actually not too bad. You may not want to pack up and move based on this information, but it is good to keep in mind when you’re at the dealership eyeing your next car. Your outlay doesn’t end at the dealership.  It just gets started.

Read the full article here:

Buy Rate vs. Contract Rate: Why is Better?

If you are looking for an auto loan then you must understand the difference between a buy rate and a contract rate. The contract rate is the rate that the dealer offers you, the buyer, and the buy rate is the rate that the lender submits to the dealer when you seek a loan through them. This slight difference between the two rates can equal big bucks when purchasing a car. Always try to get closer to the buy rate than the contract rate and if you have to, offer a flat fee on top of the buy rate. If it’s still not satisfactory make sure to shop around for loans from other places.

Read the full article here:

Is Volkswagen Going to Expand Its Respected Tennessee Plant?

Though Volkswagen loves to point at its Chattanooga, Tennessee plant as a working example of efficient production and energy conservation, the German automaker refuses to answer questions as to whether or not the plant will produce VW’s new crossover SUV.

Tennesseans are hopeful that they will indeed be given the honor of making this new vehicle. In fact, they are so keen on getting the assignment that a whole gaggle of local officials made their ways to Wolfsburg, Germany to make their case at VW headquarters in early June. Industry observers believe that taking on the crossover will double the number of workers at the plant from 2,500 to 5,000. Currently, each year, the plant generates about $53 million in state and local taxes along with more than $643 million, according to a recent University of Tennessee study.  

Writing about the trip, Chattanooga Mayor Andy Berke said, “We are always looking for ways to work with them and encourage their growth in Chattanooga.” Jim Coppinger, the mayor of nearby Hamilton County, expressed similar thoughts when he said, “No doubt it takes incentives.”

Most believe that VW will make a decision in July.

Threat of Regulation Impacting Bad Credit Car Loan Approvals

The article begins by mentioning that the automotive retail industry’s rate of subprime approvals went down by 4% last month. Regardless of the reason behind the decline, some states around the country are starting to threaten the industry with additional regulations to ensure they are not taking advantage of consumers that have low income levels. Lenders, in fear of impending regulation, are approving fewer consumers for auto loans.

Read the full article here:

Average Car Prices Increase $129

A recent report from the has indicated that the average price which consumers are paying to purchase new cars has risen by over $100 in the last month, primarily due to increased interest in cars with fully-loaded features. Additionally dealer incentives for these cars have decreased, resulting in the need for consumers to put up more of their own money to purchase new and used vehicles.

Read the full article here:

Americans Getting Ahead On Their Car Loans

During the holiday season of 2012, which in the final quarter of the fiscal year is marked by consumer cutbacks, saw fewer Americans behind on their car payments. This signifies that the rate for late-payments of car loans has dropped; record lows for the annual level.
For some reason auto owners are taking their auto loans more seriously, putting them at the top of their priority in their budgets even when things get tight.
As consumers replace their older automobiles, a million more units are anticipated to be sold. Last year U.S. auto sales increased by 13.5%, to 14.5 million.

Read the full article here: