Car Buying Tips – Finance and Insurance

Anyone thinking of buying a new or used car has a huge range of options to choose from in terms of manufacturer, type of car, gas, diesel or electric etc. Whatever the individual chooses to buy in the end, it is important from the outset to understand the various additional costs that can be incurred by either choosing the wrong type of finance or not appreciating what insurance costs could be involved.

Most people buying a new car will need to arrange some type of finance to fund it. There are some people who will literally be cash buyers but they are few and far between. The majority of people will look to some type of finance or credit arrangement either with the manufacturer or with another lending institutions such as a bank or credit union.

If looking to buy a new car, then it is also well worth considering the option of leasing a vehicle rather than buying it outright. Leasing a vehicle is similar in many ways to a long-term rental, but with a few and advantages and disadvantages. The advantages tend to be that someone can effectively get hold of a brand-new car that they would not be able boys to afford to buy. The disadvantages often tend to centre around the lease end arrangements, where significant additional costs can be involved to cover extra mileage, additional wear and tear and any damage or deterioration of the condition of the vehicle.

When an individual looks to finance a new or used vehicle the manufacturer or their dealership will require a credit application to be filled in. The manufacturer will then use a credit rating agency to obtain a credit score for the individual. This credit score will then be used as a guide by the manufacturer or dealership to assess the creditworthiness of the individual. Based on this assessment, the dealership or manufacturer will then decide whether to offer the individual a loan, and if so how much, how much of a down payment, what rate of interest to charge and over what period of time. This process is pretty much the same whether the individual is looking to buy or lease a vehicle.

When someone is looking to finance a new car it is always a good idea to get as many different quotes as possible from different lending institutions, and compare them on a like-for-like basis. Some people look to refinance their loans at a later stage of the loan period, but this can be a tricky process often only up costing a lot more money.

The costs regarding insurance should also be taken into account. People should be aware of what the legal requirements are for they live in terms of liability insurance, but they may be unaware that the manufacturer will want them to take out comprehensive and collision insurance as well.

Another insurance cost that will need to be factored in is that of GAP insurance. GAP insurance effectively covers the difference in depreciation between the value of the vehicle when purchased, i.e. the full amount of the loan, and its subsequent value at any point during the period of the loan. If the car is written off or badly damaged in an accident, then the insurance company will pay less than the purchase price of the vehicle, due to depreciation. GAP insurance is designed to cover this difference.

Why Should You Have Gap Insurance for Your Motorbike?

Purchasing Gap Insurance for your motorcycle could be one of the cleverest things that you ever buy. Not many people realise that motor insurance is not the be all and end all and if you love embracing the open roads on your motorcycle, you are exposed to accidents. Motorcycles are also unfortunately a lot easier than cars to steal and so they are constantly at risk from thieves. If you were ever in the unfortunate event of having your motorcycle written off or stolen, then your motor insurance would only ever grant you with the amount your motorcycle is worth on this day. Due to depreciation, which starts as soon as you drive your bike away from the showroom, this motor insurance valuation is likely to be a significant amount less than the amount you originally paid.

This is exactly where shortfall Insurance comes in for you and your motorcycle.

Depending on which type of Gap Insurance you opt for, you can either, along with your motor insurance valuation, clear any outstanding finance you may have on an agreement, protect the invoice price that you paid for your motorcycle, or gain the amount necessary to be able to purchase another motorcycle, the same standard, specification, mileage etc as yours originally was.

Finance Shortfall Insurance for your motorcycle?

This type of protection will quite simply pay the difference between your motor insurance valuation on the day your bike is written off or stolen and clear any outstanding finance you may have on an agreement. This leaves you in the same position as you were before you acquired your motorcycle. It would certainly not be ideal, after going through the ordeal of an accident or being the subject of vehicle theft, to then have to find money to repay a finance company, who legally are able to demand any outstanding payments within 28 days. This will leave you to walk away with no financial liability.

Return to Invoice Gap Insurance for your motorcycle?

Return to Invoice Gap cover, along with your motor insurance valuation, will return you back to the original invoice price that you paid for your bike. For example, if you paid £8,000, three years later your bike was stolen and was now worth £4,000, then Return to Invoice Gap Insurance would top up this valuation with the £4,000 necessary to take you back to the original invoice price. This leaves you able to clear any outstanding finance if necessary and able to look around for a new bike and focus on the more important things like gaining your confidence back.

Vehicle Replacement Gap Insurance for your motorcycle?

As you are more than likely aware, motorcycles are constantly changing and with your favourite manufacturer’s constantly improving specifications to rival their competitors, it is almost a certainty that costs are going to increase. Therefore if your bike is stolen or is written off, just gaining your original invoice price back may not be enough for you to be able to purchase the same standard of motorcycle again. Vehicle Replacement Gap Insurance will top up your motor insurance valuation with the amount necessary to be able to purchase the same standard of vehicle again, same age, mileage etc, as yours originally was. You are now able to clear any outstanding finance if necessary and do with your funds what you see fit, whether that is to purchase the same motorcycle again, or something completely different altogether.

With some online providers offering prices up to 90 % less than main dealerships is worth taking the risk of not having Gap Insurance. Shortfall cover could literally save you thousands of pounds if the worst was to happen and can take the financial strain off your shoulders, so instead you are left with choices and not worrying about how you are going to repay your finance company, or purchase a new bike. Call today and speak to a professional and efficient adviser who can offer advise on the smallest query or help you with which Gap Insurance is right for you and your situation.

Must Know Garage Liability Insurance Information

Are you familiar with garage liability insurance? Depending on the type of business that you’re involved with, than you already may have come across it before. If not, then you may be surprised to learn that there’s more to it than meets the eye. In this guide, we’ll take a look at this form of commercial insurance, who needs it, and how and why it’s a necessity.

One of the first points to consider is that this is a more widespread or common form of insurance than you may imagine. There are many different types of businesses and industries where this is either required or recommended.

This begins with automobile dealerships. Auto dealers are required to carry numerous forms of commercial insurance, such as dealer bonds, as well as garage liability. With the latter, business owners are essentially covered in the combined areas of general liability and automotive insurance. In other words, they’re protected against bodily injury and property damage as a result of a vehicle accident.

Beyond the world of automobile dealerships, as we mentioned, there are also many other businesses which are served by garage liability coverage. This list includes essentially any type of business where a customer’s or client’s car may be left on-site, and either moved or serviced by the business. In practice, this list includes everything from valet services and parking garages to quick lube and tire change facilities, auto repair and body shops, car washes, and so forth.

What this does not cover is what’s separately known as “garagekeepers” insurance. This portion of the puzzle is what protects your business against any actual damage to the vehicle itself. You don’t want to fall into the trap of believing that you are already protected against this only to find out at the worst time that you’re actually not covered. It’s any business owner’s nightmare.

Another important note to remember is that the specific requirements for garage liability will vary from state to state. In a state such as Florida, different automobile dealer licenses have different minimum coverage levels, for instance. In depends on the type of license you’re carrying, and this type of stipulation is common in other states across the country as well.

Of course, it’s always essential to work with an experienced, licensed insurance professional in your state or local area. He or she will be familiar with the local regulations and requirements, and should be able to help you smoothly navigate the matter while finding the right deal and the right policy.