Monthly Archives: June 2018

Down Car Financing & Loans

Would you like to get approved for a “0 down” car loan?

There are ways to get this done even if you have bad credit. Getting a car loan with no money down or “0 down” is very simple if you understand the reasons why dealerships ask for down payments and how to avoid having to have one. Too often people believe what they are told by finance managers and car dealers, when in fact, if you know just a few key points, you can avoid all of those hassles altogether.

Why would a car lot want a down payment?

Dealerships use down payments generally as a way of adding extra profit to the sale of a car. That’s why they’re usually something that are flexible. A car salesman may hit you up for a $3,000.00 down payment just to see how you react. They start you off high and to see how much you can come up with.

It’s a game!

When I was at my first dealership, I was trained to “prime” the customer for a down payment at the end of the test drive. The way that I was trained to ask the customer about a down payment was by saying, “Mr. Customer, what were you thinking about doing for an initial investment? $3,000.00 or $4,000.00?” The reaction from the customer was always abrupt and they were taken off guard by this question. What it did though, was “raise the bar” and after being asked about $3,000.00 or $4,000.00 down, it made the idea of $1,000.00 or $2,000.00 seem a lot lower. That was the only purpose for asking the question… It’s called “working a customer for cash”.

The more down payment that a car dealer can get you to agree to, the less money needs to be loaned on the car, which means that the dealer can make more money.

The reason they can make more money when you have a down payment is because the lenders only allow a maximum amount to be loaned on the car. If a dealer can max out the amount that the lender will loan PLUS get a down payment for you…

BAMM!

You’ve just been had. It’s sad but true, but that’s the way that some car dealers still work today. It’s an old school way of doing business, but sadly, it works.

So, how can you get a “0 down” car loan when you have bad credit?

You have to remember that there’s only two reasons that you would ever be asked for a down payment, even if you have absolutely horrible credit. The first reason is simply as illustrated above… the dealer wants to maximize profit on the sale and tries to convince you that you have to have money down. The second reason is that the dealer has too much money in the car and the lender won’t advance the amount needed to match the sale price. Getting a good deal on a car certainly helps.

Different lenders have different guidelines and there are good lenders that will advance the full amount needed for you to buy a good vehicle with bad credit. 0 down is commonplace with these types of lenders. There are good lending networks online that will allow you to find lenders that will approve you based on your individual credit history. This makes getting approved, and getting approved for 0 down car financing very easy. The best part is that all you have to do is provide your basic information and don’t have to go through a long credit interview process and it’s all in the comfort of the chair that you’re sitting in now.

There are benefits of putting money down.

Down payments are not evil. They should not however, be a part of the negotiation process of buying a car. Even when you do have a down payment that you want to use to lower the amount financed, which lowers your payments, you should always negotiate the sale price and interest rates based upon having 0 down.

Catering Business Financing

It is possible to start a catering business with very little capital investment. However, if you want to start out with a reasonably professional operation and you don’t have any savings then you will need some kind of external financing. Here are some of the catering business financing options that you might consider.

Independent Funding

The catering industry can be entered for a reasonably low investment if you avoid setting up your own commercial premises and kitchen. You can cut costs by starting out from your home or renting equipment instead of purchasing it. For these reasons it is wise to save up and fund your catering startup yourself instead of going into debt right from the start.

Things may not go as planned in your first year in business or you may need financing to expand. For these reasons you should try to leave your financing options open for later when you may desperately need them.

Family and Friends

Hitting family members and friends up for a loan is one option that many entrepreneurs try. Be careful here though as you could cause damage to relationships that are important to you if you suddenly find that you are unable to make repayments on schedule.

Bank Loans

Banks offer a variety of loans or lines of credit to entrepreneurs wanting to start or expand small businesses. To increase your chances of qualifying, approach a bank that you have a good account history with. Let them know that you are willing to fund at least some of the startup costs and only need a loan for the remainder.

You will increase your chances if you have a well written business plan to present to them. Having assets that you can use as collateral or someone who can guarantee your loan could also be a necessity.

Investors or Partners

If catering business startup costs seem too daunting then why not split them with one or more business partners. It is even possible to get an investor who will provide you with funding in return for an ownership interest in your business.

Try to make some connections in the catering community either near your home or online and you may find someone who is keen to work with you. Be prepared to sell your idea to partners or investors though as they will be skeptical. You should have a strong catering business plan to show them and you could even go as far as preparing some sample dishes for them.

The downside with this kind of funding is that you lose control. Partners or investors may want to be involved with management decisions and you might find that they want to take the business in a direction that you are not happy with. If you do take this route then make sure that everyone involved knows where they stand right from the start. Get everything in writing if possible.

Government Loans and Grants

Other options for financing a catering business include government loans or grants. The Small Business Administration in the US is a good place to start your search. You must be eligible though and prepared to go through a lengthy application process. Even if you do qualify for this kind of financing then you might face strict controls as to exactly how you can use the funds.

Credit Card Financing

Many entrepreneurs these days are starting businesses by taking out a number of cash advances on their credit cards. While this method is not advised due to the high interest rates involved it may be worth considering if it is your last option. Before going for this method you should be pretty sure that you can start making repayments within a reasonably short period of time.

In reality there may not be one single silver bullet for your funding problems. You might need to combine two or more of the options mentioned above to get to the amount that you need.

Make Sure You Know The Different Kinds Of Car Financing

Riding public transportation is something everyone has to go through. As an entry-level employee, you have to start somewhere. Unless you were lucky to be born with a silver spoon in your mouth and your parents gave you a car, consider yourself fortunate. Most people, however, have to work their way to get their dream car. Once you have built up your credibility at work and have reached a certain income level, you can now go in for car financing.

Car financing gives you the opportunity to own a car and there are several ways to achieve this. One is through a personal loan, and this happens to be one of the more popular methods. With a personal loan, you are able to borrow money from your preferred financial institution. In the end, you get to own the car since you ultimately pay for it. Once you have paid off the loan, you now have the freedom to sell it off or trade it in for another.

As you make the rounds and speak to various car finance experts, another loan you will come across is a hire purchase. This particular loan involves forming an agreement between the used or new car dealer and the buyer. With this arrangement, you will be asked to pay a deposit of anywhere from 10 to 20 percent of the total car purchase price. Monthly installments are then set based on the amount of money still owed. Getting a loan like this means you do not own the car until all monies are paid off.

Yet another loan type is a re-mortgage. This car financing method is specifically designed for homeowners. This allows you to re-mortgage your home and use the extra cash to purchase a car. For people who already own a property and have an existing loan, the same idea can implemented when it comes to refinancing the loan. Refinancing will let you get more money from your chosen financial provider which can be then applied toward your automobile payments.

While you speak to various car finance outfits, remember to sit down and determine how much you can afford to pay each month. In addition to your monthly payments, you will also have to shell out cash for insurance, gasoline, and the occasional repair and maintenance job. All these costs will add up, so make sure your monthly budget can cover these to avoid future headaches.

There are some other forms of car financing out there like interest-free and personal contract purchase. An interest-free loan is usually offered only with new cars. When you go for this, you can get a new car without paying interest on the total purchase cost.

Personal Finance

When it comes to improving your finances, easy answers and shortcuts just don’t exist. You’ve
just got to bear down and do it. Advance fee loan: Just as its name implies, personal check to the lender for the amount of money you want to borrow plus the amount of the lender’s fee usually a percentage of the loan amount or a set amount for every £50 or £100 you borrow and you agree to repay the loan on your next payday.

To get this kind of loan, you must pay money up front to the lender sometimes as much as several hundred pounds. Some advance fee lenders will take your money and run, but others will give you a very high-interest loan. Traditional lenders do not make advance fee loans.

Payday loan: This is a very short-term high-interest loan made by check-cashing companies, some finance companies, and businesses that do nothing but make payday loans. To get this loan, you write a

On your next payday when you repay the loan, you get the check back. If you can’t repay the loan on the next payday, the lender rolls over the loan until the following payday in exchange for your paying the lender another fee, which will probably be higher than the first fee. Over time, if you keep rolling over the loan and paying higher fees, the cost of the loan skyrockets and you have a harder time paying it off.

Finance company loan: Finance companies make relatively small high-interest loans.

Whilst some finance company loans are downright dangerous: The lender may be less than honest about all the fees associated with its loan, or it may mislead you into thinking that you’re getting an unsecured loan when the loan actually is secured by one or more of your household goods, such as your furniture, entertainment center, and so on. (This detail is usually buried in the fine print of the loan agreement.) If you default on the loan, you risk losing the asset(s).

Some finance companies encourage consumers to get a bigger loan than the consumers can afford
so they’ll end up in default.

Pawnshop loan: This is a short-term loan (no more than three months, in most states) with a very high interest rate. With this kind of loan, you give the pawnshop an item that you own, such as a TV, DVD player, piece of jewelry, or computer. The pawnshop lends you a percentage of the item’s value. At the end of the loan period, if you cannot afford to pay the loan plus interest, the pawnshop keeps your item and sells it.

Car loan: If you own your car free and clear, some lenders will make you a loan for a small fraction of what your car is worth. Usually the loan will be for no more than 30 days and will have a very high rate of interest. To get the loan, you must give the lender the title to your vehicle and a set of car keys. The major danger with this kind of loan is that if you miss a loan payment, you risk losing your car. Depending on the loan agreement, one missed payment may be all it takes.