Dealers Know: Car Loans Take Priority

According to TransUnion reports, auto loans top budget priority payment lists. Even the crash of the housing market, homes loans still fall second to car payments. The mortgage delinquency rates push beyond 30 days yet this expense still takes priority over credit card debt. It makes sense. Why fall short on secured loans when there is personal property at stake? Credit bureaus are not the only eyes watching this trend. Car dealers have taken notice and they are taking advantage of consumer’s eagerness to pay.

Dealers will push a brand new car. Who can resist the smell and sleek interior? It’s a nice thought to be able to get all the latest bells and whistles. It’s okay if your credit score is less than perfect. Dealers have the proof they need that customers are willing to make their loan payment. The salesman will make it is easy to afford the installment loan payment even for those with sub-prime credit. By extending the term of the loan to 5 – 7 years, the finance department will manipulate the payment plan to fit your budget. You probably will never even notice what interest rate you are paying. The excitement of a loan approval will often fog those details. Long loan terms equate to lots of interest charges. It’s a small detail the finance department will probably choose to omit from their convincing speech. Don’t want to pay the extended interest payment? The dealer will understand and lead you to the used lot.

There is a sale’s pitch waiting for the buyer in a used lot as well. Many car lots only focus on used vehicles. Dealers know that many consumers don’t want to drive off the lot and immediately lose a chunk of the car’s value. A used car is not only more affordable than a brand new one, but you can get a reliable vehicle for a lot less money. Consumers ditch the brand new car smell for more affordable payments. As with new cars, finance plans can create very low monthly payments using extended terms. A smaller payment will help the budget. Car shopping, whether used or new, is an exciting time.

Customers are willing to make their car payments. Dealers take advantage of this situation by inviting sub-prime customers to their lots with pre-approved loan notices. Similar to credit card companies, pre-approved notices are mailed to attract new customers. Higher than average interest charges are welcomed for many who thought they would never be able to buy a decent vehicle. The dealer understands. Not only are the offers high interest, but the loan itself is secure with the vehicle as collateral. Dealers are in a win-win situation when offering a hand to those with credit challenges. It doesn’t matter to the salesman that the customer may not be able to afford other living expenses. They have their own paycheck to worry about.

What consumers should consider before purchasing a car –

– Loans with terms longer than 60 months. The final ending price inflates from interest costs. Pay extra whenever possible to decrease loan term.

– Pay attention to interest rate costs. You pay attention to credit care and payday loan interest, do the same for your car payment. Shop around for a better price or hold off on your purchase until you can raise your credit scores.

– Refinance if your credit improves over the 5-7 year term loan.

– Make sure you can afford maintenance and upkeep. Parts and labor are more expensive for higher end cars.

As good as it feels to be able to buy a car, the rest of your budget must keep up. Focus on making good on car payments so you don’t forfeit the vehicle as collateral. Make sure that extra cost will not interfere with all other budget demands as well. A smart budget shopper will fit it all in.

How To Focus On Your ‘Right’ Priorities

The word ‘right’ for me means right-brain, which translates to intuitively honoring the optimal choice or investment of time and energy. The right priorities are not always the obvious priorities.

In fact, you may think you need to focus on something but find yourself drawn to something else – afterward, you realize that you weren’t in the mood to do the first one which would have meant you were pushing for it and that makes everything hard.

Humans have a basic need for variety, but they also have a need for stability. The way that I recommend we balance these two needs for our best focus is to have a ‘shopping list’ of things to get done, and then when you have time, look at your list. The first priorities are any that have deadlines (or life lines, as I prefer to call them). If there is a time commitment, that is what needs to be handled first.

From there, if you have time that you can put into something you choose, make sure you have your list handy and then do what’s called ‘eye dowsing’ – see what jumps out at you first. Whatever you see or notice first is generally where the natural energy is most intense or flowing, so that will be the priority that will be your next ‘right’ choice to take action on.

By honoring the energy of what is ‘right’ for you in right sequence and right timing, you can create a systematic flow that may defy the mind’s literal organization and that opens up to enhanced opportunities.

Now for the best way to focus on your ‘right’ priorities: the word ‘right’ for me means right-brain – so intuitively honoring the optimal choice or investment of time and energy. The right priorities are not always the obvious priorities.

In fact, you may think you need to focus on something but find yourself drawn to something else – afterward, you realize that you weren’t in the mood to do the first one which would have meant you were pushing for it and that makes everything hard.

Humans have a basic need for variety, but they also have a need for stability. The way that I recommend we balance these two needs for our best focus is to have a ‘shopping list’ of things to get done, and then when you have time, look at your list. The first priorities are any that have deadlines (or life lines, as I prefer to call them). If there is a time commitment, that is what needs to be handled first.

From there, if you have time that you can put into something you choose, make sure you have your list handy and then do what’s called ‘eye dowsing’ – see what jumps out at you first. Whatever you see or notice first is generally where the natural energy is most intense or flowing, so that will be the priority that will be your next ‘right’ choice to take action on.

By honoring the energy of what is ‘right’ for you in right sequence and right timing, you can create a systematic flow that may defy the mind’s literal organization and that opens up the most important asset you have in your business – your energy.

Lynn Scheurell

www.mycreativecatalyst.com

Are Your Parents Your Top Priority?

I have come across a magazine and I was attracted to the headline. It stated that: “Are Your Children Your Top Priority?” Dear young parents, think about this question carefully. I am sure most of your answer would be a big YES.

When we go shopping at the shopping mall or dining at the restaurants, we used to see the younger generation nowadays have switched their focus to their kids and they care more about their children’s feelings, health, education, interests, preferences and their future. They want to give the best to their kids so that their beloved children can enjoy better life in the future. It is not wrong for them to do so. They love their kids and they are willing to contribute everything.

Now, here is something we need to think carefully. Do we also always remember our parents who bring us up? Are our parents our top priority too? Our parents are getting older as time goes by. They also get weaker. Do we concern about their health problems? To be frank, many young people find it challenging to take care of their elder parents, especially those who are suffering from diseases and disability. They usually treat their parents as their burden when their parents have medical needs. They sometimes lose their patience taking care of their forgetful parents.

In fact, taking care of elder parents is as important as taking care of young children. It is not right for us to ignore our parents. We should treat our parents in a courteous manner. We must not lose our temper if our parents try to order us around or complain about the way we live. Look at this matter from another point of view. They want us to be good and safe. They want to protect us. They are worried if we face any difficulty in life. In our parents’ mind, we are still their top priority. In return, we should find ways to dissolve conflicts so that both parties can have better understanding. We are not supposed to argue with them or stay away from them.

If our parents are suffering from diseases and they need medical treatment, it is our responsibility to spend more quality time with them. Let them know that you pay attention to them. They were the ones who brought us up. They were once the caregivers. Now we are in that position. We must take good care of them and we should ensure that they also enjoy their life.