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Posts Tagged ‘credit union’

Automotive Financing, Done Right

November 20th, 2008 by Krayton M Davis | 1 Comment | Filed in Autos Express

Much has been made in the news of automotive financing lately, as several American car manufacturers drop leasing as a purchase option and raise the credit requirement for people seeking to buy a new car through their financing companies. What was once a routine purchase has gotten quite a bit more complicated, leaving buyers confused and some fleeing to other brands.

A tough credit market and slow sales have also worked to shake up the auto industry, but for the person who wants to buy a new car right now, some of the best deals new carseen in years can be found.

Fortunately, where one door closes another one opens up or in this case other doors already in place are worth going through. If you plan on purchasing a new car before the calendar turns to 2009, then you’ll want to consider the following tips which can help make your transaction as trouble free as possible:

Select Your Model – Consumers who have their eye on a particular model but wonder if financing will be an issue should go ahead and choose that vehicle based on their desire to own that particular car. Chrysler Financial may not offer the best financing deal on your Dodge Challenger, but if you really want the car then get it – financing is a separate issue.

Shop Around – Year end sales are in full swing, but don’t be lulled into thinking that every car dealer has your best interests at heart. Shop several dealers, get their lowest price, and make sure that all incentives are included (military discount, recent college grad, etc.) along with the automaker’s deal and your dealer’s discount. Some dealers will plead poverty when you negotiate with them, but they’re getting their own rebates from the manufacturer when they sell a car to you.

Talk With Your Banker – Your own bank may be the best source for financing your new car, so before your wheeling and dealing gets serious, make a visit to your bank to see what offers are available for you. Banks are in the business of lending money and if your credit is good, then you could be just the right candidate for a loan. The same applies if you belong to a credit union. One note: if your banker isn’t offering you a good deal, then visit the competition to find out what they have to offer to you.

Alternate Leasing – For some drivers, leasing a car is their only option. With GM, Chrysler and Ford making it more difficult – if not impossible – to lease, what options do motorists have besides switching brands? Well, some savvy dealers are working with private leasing companies to come up with packages that might be attractive to you. Contact the financing departments of several dealerships to find out who they are working with, their rates, and other options available to you. If you finance or lease elsewhere, then manufacturer cash discounts are still available to you.

Pay Cash – If you’re in a position to pay cash for your vehicle but prefer to keep your money and finance your purchase, now may be a great time to simply pay cash. Cash is king and dealers know it. You’ll be able to get the maximum discounts from the manufacturer, have an excellent negotiating point with your dealer and be able to drive away in a new car that costs less than the person who had to have someone finance it.

Even if you choose to finance your car now, you aren’t stuck with the same loan for the next 48, 60, or 72 months. You can pay down your loan quicker or refinance your car loan later on when the financial markets stabilize and your personal financial outlook stabilizes. Year end deals makes buying a car now an attractive option, giving you the car you want at a price that cannot be beat.

Adv. — Are you in the market for a new car? If so, nBuy Plaza has everything you need to purchase – repair – maintain – upgrade – reduce – finance – and insure your auto transportation needs. We’re your one stop source for everything automotive!


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Save Money, But Not At Your Bank

October 21st, 2008 by Matthew C. Keegan | 2 Comments | Filed in Consumer Tips

Consumers who want to save their future, are in a bind these days. Hammered by the stock market, seeing the financial crisis eat into their savings, and still wanting to save without losing money, lots of people are sitting out of the market until things improve. Yet, saving for the future shouldn’t be curtailed, but what if you are risk adverse?Piggybank

One way that consumers are saving money is by depending on their banks again. Yes, local branches of big commercial banks, community banks, and other savings institutions are in fashion again. But, most savings rates are downright dismal, meaning you’ll lose a bunch of money over the long haul due to inflation.

Looking Beyond The Big Commercial Bank

There are some ways you can make more money from your regular old savings account, but you may need to look beyond your big box bank in order to do that. The following are some tips to help you build wealth slowly, a temporary diversion for some of your funds while the financial markets mend:

Credit Unions — In most cases it pays to look beyond your bank and head over to your local credit union to see what they have to offer. Once you confirm eligibility, you can join up for a small fee and reap the benefits of shared ownership in an entity that really looks after your good. Check out their various savings plans and you’ll see that rates are higher, usually much higher, than what First National Bank offers.

Online Institutions – Banks will a strong online presence, such as ING Direct, pay interest rates that are several times the rate your brick ‘n mortar bank offers. How can they do this? By keeping their overhead low, that’s how. Rates vary, but 3.5% on savings is common with certificates of deposit paying out as high as 5%.

Community Banks — The smaller the bank, the better the interest rate offered. Well, that isn’t always true, but many of the smaller banks operating in your community are not beholden to shareholders or have a minimal overhead and can afford to pay higher rates on your savings account. Check out Top 50 Money Market Rates and High Interest Savings Accounts to find a great rate available to you.

Finally, check with your current bank to see what “specials” they may be offering. You may be surprised to find that your big banker is craving deposit money and is offering a special rate on a CD or a savings account.

Define Your Savings Goals

Identify what you are looking to accomplish with your savings plan. First define your short-term savings goals such as:

— holiday gifts
— new entertainment center
— upcoming education expenses
— next summer’s vacation
— other

And then define your long-term goals:

— buying your first or second home
— saving for your child’s education
— planning retirement
— paying down debt
— other

For each goal, estimate the cost and the amount of time you need to achieve your goal. The list will be used to prepare your savings plan which you can create online.


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What You Need To Know About The FDIC And Your Money

October 9th, 2008 by Matthew C. Keegan | 2 Comments | Filed in Consumer Tips

The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to provide deposit insurance for America’s banking system. Reporting directly to the federal government, the FDIC was put into place as response to the Great Depression-era bank runs. During that time, a simple panic would spark a run on a bank, quickly draining the institution of all of its Liberty Head Dollardeposits and making it insolvent. Millions of people lost all or part of their money, necessitating the creation of the FDIC to guarantee deposits.

Over the past month, the FDIC has been in the news quite a bit as the number of bank failures has increased, including some high profile failures involving Washington Mutual and Wachovia. In most cases the FDIC and other federal agencies have been able to resolve the crisis quickly, but not every customer has escaped unscathed.

Are You Covered Or Not?

There are limitations to the amount of money that the FDIC will ensure, meaning some customers risk losing a portion of their monies if they aren’t aware of the FDIC’s limitations. To clarify matters, we’re sharing with you current guidelines to help you determine whether your deposits are safe or not:

Up To $250,000 – Deposits are ensured up to $250,000, for all funds at one bank. This means that if you (as a single depositor) have $90,000 in a CD, $85,000 in a checking account, and $75,000 in a savings account, your funds are insured. Up until recently that level was $100,000, but has been raised temporarily through December 31, 2009.

Multiple Accounts At Multiple Banks – If you keep you money at several banks, your money is ensured provided your deposits at each institution stays below $250,000. This means that if you have $2,000,000 evenly divided in accounts at eight banks, your money is covered.

Joint Accounts – If you have a joint account at a bank, those funds are ensured up to $500,000. Even at that amount, you can still have accounts in your own name which will be insured for up to $250,000.

Retirement Accounts – Your Individual Retirement Account is covered by FDIC insurance under certain conditions. These include: regular IRAs, SEP IRAs, and ROTH IRAs. FDIC insurance will cover up to $250,000 of your retirement money at any one bank.

If you have over $250,000 at any one financial institution, you are putting those funds at risk. However, the FDIC says that you’ll likely recover a portion of those funds, perhaps 80-90% of the excess amount, but that process could take weeks to resolve.

Credit Unions Are Covered In A Separate Fund

If you have funds at a credit union, including regular deposits and retirement funds, those monies are insured too, but not by the FDIC. Instead, credit unions are covered by a separate agency – the NCUSIF or National Credit Union Share Insurance Fund – which recently received Congressional approval to cover individual deposits up to $250,000, just like the FDIC.

Of course, having your funds in any financial institution means keeping track of the performance of that bank or credit union by reviewing monthly statements and following the news. Even if your bank gets into trouble, the federal government is quickly jumping in and handling everything, bringing about super mergers virtually overnight.

(Source: FDIC)

Adv. — If you’re looking for additional consumer advice, please visit our sister site at SayLowerBills.com to find information about managing your income, handling debt, and other money saving tips.


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4 Steps To Applying For A Consumer Loan

September 16th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Consumer Financing

The news lately has been chock full of reports about Fannie Mae and Freddie Mac being taken over by the federal government while Merrill Lynch, Lehman Brothers, AIG, WaMu, and other investment banks and financial institutions battle for survival too. For the consumer who needs to borrow money, borrow money
wondering who will approve their loan and at what rate has some concerned.

Fortunately, the financial market is much bigger than these entities with some financial institutions in much better shape than others. Clearly, shopping around for a consumer loans these days involves checking on the health of the lender as much as finding someone who can approve your loan at a fair rate.

Before you submit your application there are four areas where you’ll want to educate yourself:

  1. Understand Your Options — Should you borrow now or should you wait? How much money do you need? How long of a loan term do you want? What interest rate are you willing to pay?
  2. Select Best Product – Should you take out a home equity loan or seek an equity line of credit? If an auto loan, will you get your loan through a bank, the financing arm belonging to the automaker, your credit union, or some other source?
  3. Learn to Negotiate the Best Deal — What fees are involved with applying for a loan? Or, will fees be waived or included in your loan? Will you do better with a fixed rate loan or an adjustable loan? Will you be penalized for paying off the loan early? Does the interest rate on the loan reflect your good credit?
  4. Save Money and Hassles — Do you want to deal with someone locally or would you consider finding a lender online? Do you want to mail payments off monthly or have the convenience of sending payments off via the internet? Are automated payments right for you?

Consumers should take their time looking for the right financing product, comparing offers to find the best deal available today. Banks, credit unions, savings & loans, and other financial institutions want your business, but not every lender is worthy of your business.

If you’re in the position to borrow money, then you’re in the drivers seat. Negotiate from a position of strength by doing your research before applying for any type of consumer lending option. Reject any offer that isn’t favorable for you or ask the lender for terms which are more favorable to you.


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