A Brief Primer On Balloon Payments

If you’re in the market for finance balloon payments are a term you might need to familiarise yourself with. Balloon payments can reduce your monthly repayments and make your next purchase more affordable. As with all good things, let’s begin with a definition of a balloon payment. Balloon Payments A long, long time from now, you’ll reach the end of your car loan’s term, and it’s here that you will make what is called a balloon payment. It’s a large, single payment at the end of your term. Why is it called a balloon payment? Well, like a balloon, it inflates at the END and is larger than those smaller payments you’ve been making all along. However, since it’s so inflated, that means that all along you’re going to be making smaller repayments each month. Advantages of balloon payments – A balloon payment reduces your monthly car loan payment, freeing up money for other fun things in life. – Since your balloon payment swells over time, you can prepare for it and see it coming, unlike other unpredictable payments that may arise month to month. – For businesses, they’re ideal, since businesses tend to be able to make larger inflated…

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Ask These 5 Questions Before Buying A Caravan

A caravan is a virtual home away from home, and any caravan you drive away in should feel just like that. The problem is that far too many people drive away before truly giving any thought to whether the vehicle they’re about to purchase is a good long-term fit for them. Quick purchases often turn into quick regret, so we’re here to save you the trouble of getting stuck with a caravan you simply aren’t happy with. 5 simple questions to ask before buying 1. How much money do you have to spend? This is one of the trickiest questions to anticipate. You might know how much money you have for a down payment, but you don’t know how much money you will have to make repayment throughout the life of the loan. Projecting future caravan finance situations can be an ordeal. Speaking to a financial professional can assist you with your future financial predictions. 2. Do you have the features you need? Towing capacity and maximum payload are going to be a couple of important terms to consider before buying. So many people drive away in a caravan they love the look of, but then they find out it…

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Boat Buying Guide

The decision of whether to buy a boat or not is a weighty one. Not only is a boat a major purchase, but there is a great deal of care and maintenance that goes into boat ownership. The decision of whether to buy a boat or not should not be made lightly, frivolously or on a whim. Here are some points to consider before making the decision as to whether to buy a boat or not. Educate yourself about boats If you haven’t grown up around boats or spent a great deal of time around them, you need to make sure you are thoroughly educated about boats in general. You need to know about different types of boats, what they are made of and what differentiates one from another. It’s important to know about various manufacturers, boating safety equipment, certifications, how boats are repaired and how to go about finding the right boat for you. You can use the internet as well as books and magazines, but your best bet is to talk to a boat lover or boating experts. The more you know, the more of an informed choice you can make when it’s time to plunk down a…

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Can I Get a Car Loan with Bad Credit?

Yes, it’s possible to get a car loan with bad credit. But you’ll have to work a little harder to get the money you need. You’ll also pay a bit more than if you had good credit. Still, it’s possible to get that new car in your driveway. Here’s some info on obtaining a car finance when you have bad credit. Subprime Borrowers People with bad credit are often categorized as subprime borrowers. There is a subprime lending market for people who fit this category. Try to get a loan from a traditional lender first. If that fails, then the subprime market is an option. Subprime lenders specialize in working with people who have low credit scores. These lenders are willing to accept more risk than traditional lenders. As a result, they are more willing to provide loans to borrowers rejected by traditional lenders. The Influence of Your Credit Score Your credit score determines your category status. Lenders have their own criteria for determining if you’re a subprime borrower or not. If your credit score is too low for a traditional lender, then they won’t consider giving you an auto loan. Most banks and credit unions want borrowers to have…

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Can You Benefit from Having Two Personal Loans?

Many people have experienced financial problems that require taking out a personal loan. Yet, sometimes one personal loan just isn’t enough. In some cases it can make financial sense to take out two loans at one time. Doing so gives you immediate access to more money, but it can also increases borrowing costs. Furthermore, it can affect your credit, and signal financial distress to other lenders. Thus, it is important to carefully plan out the borrowing process. If you are considering taking out two loans, you may benefit from the following advice. Be Aware of the Consequences While it’s possible to have two loans at once not all lenders will look upon it favorably. If you are fortunate enough to qualify for contemporaneous loans you need to understand that it could have a negative impact on your credit. It could also cause you to get denied for such loans in the future. Additionally, it can affect your ability to take out other types of loans, or to enroll in a debt consolidation program. In Australia, approximately 3% of personal debt on a nationwide scale is due to these types of loans. As such, it is not uncommon for the average…

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Considering Equipment Finance? Don’t Forget These Points!

  • by ufinance
  • Aug 27, 2018
  • Category:

A wide range of business owners will find that purchasing the latest equipment is a fundamental aspect of the development of their business. A lender can help provide the funds you’ll need to purchase the best equipment for your business. Equipment finance was created for the sole purpose of providing funds for buying the latest specialist business equipment. A large number of banks and lenders will provide borrowers with funds for this purpose. It’s important to do your research so you can figure out the best equipment finance options for your needs. This also means keeping track of your budget, your financial situation and your tax requirements. Talking to an equipment finance professional can help to pinpoint your needs. When purchasing equipment finance, you must consider the following aspects. Interest rate The interest rate on an equipment finance loan will have a direct impact on the cost of repayment. Therefore, we advise businesses to seek out a loan or lease that provides the lowest interest rate. Tax advantages There are several things to consider when financing a piece of equipment. Every approach involves its own set of possible tax advantages. Talk with your accountant to see which option suits your…

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Discovering Your Vehicle’s Worth Before Selling It

Unless you own a car that is a rare or is a model that collectors are interested in, every year that passes by causes your car’s value to depreciate. Knowing what your car is currently worth is very important because it allows you to purchase the right amount of insurance coverage without mistakenly devoting more money to its premiums than what is ultimately worthwhile. Likewise, you can avoid buying too little insurance coverage for it by knowing how valuable it still remains. Furthermore, keeping track of your car’s value lets you strategically decide when it would be the best time to sell it. Various online utilities are available that can calculate the probable value of cars after their owners input various pieces of information about their vehicles. If the car is a popular model produced by a mainstream and reputed manufacturer it will cause value estimation programs to consider it a more valuable vehicle than others. People shopping for second-hand cars tend to focus on cars that fit these criteria; this is why you would want your next vehicle to fit these criteria as well when it is time to shop for a new car, as it will leave you…

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Documents to Prepare Before Applying for an Automotive Loan

Lenders are only willing to issue car loans and car finance to applicants who they are confident will be able to pay the loans back in due time. A lender determines how likely a borrower is to repay all borrowed money by requesting and reviewing several forms of official documentation. The types of documents that will be required fall into three broad categories and some lenders may place greater importance on certain categories than others. A lender will naturally need clear and unmistakable proof that its customer is who he or she claims to be, so an applicant must be able to provide identification formally issued by one of several sources. A driver’s identification and Medicare cards, as well as a passport, are viable means of proving one’s identity. The applicant will also be required to accurately convey where he or she lives, so some kind of documentation that exists only because the applicant lives at the stated apartment or house must be prepared as well. This can be a lease document the applicant had to sign, a document relating to the applicant’s mortgage, or a selection of utility bills the applicant paid recently. Following this, a lender will want…

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Don’t Ignore Your Homework When Buying a Used Car

Finding a used car at what you think is a great price and making a hasty decision, so you don’t lose what you perceive is a great deal can be an expensive mistake. There are many instances where stopping and thinking the situation and purchase through thoroughly could result in a decision that is much better for you in terms of time and money. Careful car finance can often result in a better deal (better car, less money) that you had originally hoped. In Australia, $4,750 is spent on an average overseas holiday. Compare that to the experience of over one million Australians, where the average purchase price paid for a used auto is $11,0000, more than double the cost of a holiday. This average price tag does not include estimated repair bills for a used car that often exceeds $2,000. The Australian Bureau of Statistics has estimated that three-quarters of Australians own a car, and of these, close to 60% have ended up purchasing a vehicle that has turned out to be a lemon. While these statistics are scary, most of these poor decisions could have been avoided. Almost one-third of those buyers spent less than 2 hours making…

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How to Get Finance for Your New Car

Are you ready to finance a new car? If so, there are several options to consider. You probably already realize the importance of searching for a good deal. Jumping on the first offer you see is rarely a good idea. But many people forget that smart financing is also a big part of the process. Here’s some info on how to successfully finance a new car. Get Pre-Approved Being pre-approved by a lender makes shopping for a new car easier. But you shouldn’t approach the car dealership. Instead, speak with several lenders who aren’t associated with the dealership. An independent lender is likely to provide a better deal than you’d get from the seller. Pre-approval is a simple process that usually doesn’t take much time. You simply complete the loan application and return it to the lender. The lender will then discuss your income and credit history for car finance in Australia.  If you’re eligible for the loan, you’ll get approved for a specific amount. Keep this amount in mind when shopping for your new car. Stay within the pre-approved limit so you’ll have no problem when it’s time to buy. Access the Money You should have access to the…

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