The rocky economy has something going for consumers, especially those in the market for new cars. End of model year incentives will be terrific, providing the opportunity for savvy consumers to save a lot of cash on their next set of wheels.

And, the model year doesn’t just change in October anymore. Throughout the year automakers are releasing new product, and slashing prices on the old. The best deals can be had with last year’s model which could still be a 2008 if the 2009 has already been released.

If you are planning to buy a new car, there are some thing you will want to keep in mind before making your purchase:

Do your research. Quite frankly, not all cars are the same. A Kia retailing for $14,900 and a Toyota priced the same share one thing only: price. The Kia likely is better equipped, while the Toyota has a better reputation. Check Consumers Report and pay the $6 they want for their advanced ratings and reviews, an investment certainly worth the price. Search online for additional information about that make/model.

Check for incentives. Almost across the board, all manufacturers are offering incentives. Popular models are typically not included, but then again the Ford Focus is on sale and carrying a cash back rebate that will vary upon your location. Last month, the incentive was $1500 on a car that gets 35 mpg! Use an automotive financing tool to help you compare offers.

Pay cash if you can. If you’re able to pay cash for your purchase, you should be able to negotiate the best deal possible while also taking the rebate. On the other hand, if both zero percent financing and cash back are offered, then finance your car for the highest amount possible. Then, take your cash and let it earn interest in a high rate savings account at ING Direct or elsewhere paying 3.5% or better on your money. Another alternative is to secure auto financing on your own and keeping the rebate.

One final thought as to why you should buy your car now: incentives are the strongest they’ll be for quite some time and some manufacturers are planning to increase the price of cars beginning this fall to recoup the cost of additional safety and technological improvements featured across the board.

Tags: auto financing, autos, Consumer Financing, Money Management, new cars

Four dollars per gallon gasoline is making a mess of many home budgets as is higher food costs, mortgage payments, and other consumer goods. The average American is feeling the sting of diminished earnings, putting a real crimp on savings.

One of the last things you want to do when life is tough is to cut back on savings. That extra money can pay for future emergencies, help fund your retirement, and cover vacation, home improvement, and other anticipated expenses.

But, saving money when your disposable income has shrunk seems virtually impossible to do. Or is it? Can there be a way to set aside money even when the cost of living continues to rise? Let’s take a look at some common sense ways you can lower your bills and still have more money left over to save.

Food — Milk, bread, bananas, you name it has been going up in price, much fast than the inflation rate. Transporting food from warehouse to store has gotten costlier and those costs are being passed on to you. Wherever possible, clip coupons to save on your favorite foods while switching to generic or less known brands when you can. Shop the warehouse clubs and you could save 10-30% off of your food order.

Insurance — If you combine your homeowners insurance with your auto insurance, then you should receive a ten percent discount on your bill. Shop around too and take a good look at your 2001 model year car with high miles — it could be time to drop collision coverage.

Debt — Pull out your credit card statements and examine which ones have jacked up their interest rate recently. If you are carrying balances on high interest rate credit cards, then transfer those balances over to a lower rate card. Many card providers are still offering 0% interest on balance transfers with some waiving transfer fees too.

Cable and Phone — If you haven’t combined your phone and cable service yet, consider doing so at once. Get an internet connection, cable service, and local and long distance coverage for a flat monthly rate. You should be able to save 10-50% by combining your bills to one service provider.

Electric and Gas — If you have central heating and air, keep the indoor temperature at 78 degrees in the summer and 68 degrees in the winter. Supplement cooling and heating with ceiling fans, reversing oscillation for the proper season.

Dental and Health Care — If you are covered through your employer, then medical costs are a known quantity. Still, you can reduce your expenses by using “in network” doctors and labs, get your prescriptions filled at WalMart or a similar store offering cut rate medication services. If you need insurance on your own, shop through a cooperative to get the lowest rates.

Miscellaneous Expenses — Perhaps the greatest savings can come through the elimination or curtailing of various vices. Quit smoking, stop drinking, avoid gambling (including the lottery!), and take a hard look at your entertainment expenses. Take in a matinee instead of a night movie; eat out less each month.

Finally, with all of the money you save you can start setting aside some cash for savings. Maximize your employer’s 401(k) plan and set up automated savings through an online bank such as ING Direct to withdraw money on a regular basis from your checking account to a savings account.

The national economy will eventually improve, but you don’t have to let your personal economy take a hit while you wait for that to happen.

Tags: budget, cable, checking account, credit card, electric, food, gas, Money Management, personal finance, save money, savings, telephone, utilities

If you recently lost your home to foreclosure, how long do you think it’ll take before you can become a homeowner again? 5 years? 7 years? Maybe even 10 years?

Many consumers believe that once they have lost a home to foreclosure, they won’t have the opportunity to purchase another home for many years. Thinking that their credit is trashed and that a foreclosure will be on their credit report for 7 or 10 years, perhaps longer, some people are under the impression that homeownership is off limits.

True, a foreclosure will be on your credit record for beyond the seven year period that most bankruptcies are listed. Yet, having a history of a foreclosure doesn’t have to stop you from buying another home. Moreover, you could find yourself in another home a few months post foreclosure.

Most conventional lenders will not consider lending you money for a home quickly, for the simple reason that if you lost a home recently, then you could lose your home again. But there are factors which might be taken into consideration by the lender:

• You lost the home due to divorce, an illness, loss of job, or some other valid reason.

• You have the cash on hand to put at least 20% down on the home you want to purchase.

• You are willing to pay a higher interest rate, perhaps as much as 2% over the current rate offered to their best borrowers. Along with the bigger down payment and possibly including some points, a lender may decide that you are a risk worth taking.

Loans and loan rates are always determined based on risk factors. If a lender believes that you are worth the risk and you can put down a large amount of cash, then you could be considered for a loan.

Granted, you’ll pay tens of thousands of dollars more interest payments with a higher risk loan, but you can always refinance later especially as your credit improves and a lower rate is offered to you.

Home ownership post foreclosure isn’t a given, but it isn’t impossible either. You must demonstrate to a lender that you are worth the risk and hope that they can see past the problems which caused you to lose your home in the first place.

Resources

Bank Home Equity Program

Credit Management Center

Home Equity Calculators

Tags: foreclosure, home buy, home loan, Money Management