A to Z of the Vehicle Industry

Vehicle Industry Do’s and Don’ts

What you need to know about financing your new vehicle without affecting your month budget

If you are looking for a new car, then congratulations! That means you have the budget for it, or at least you already have an idea about where to get it.

There are things, however, to remember and consider before getting a new car. As excited as you might be, preparing for your big purchase is a very important step to buying the right car for you, and in the right circumstances.

First, is the cold hard fact that you need to determine what car you can actually afford, depending on your monthly budget.

Second, you need to decide whether you would be financing or leasing the vehicle.

Here is the breakdown of the things that you need to know when financing or leasing an auto:

Total Cost – The total price of your car of choice is not just the price tag on the flyer where you saw it, but it also includes the registration and title fees, sales tax, and miscellaneous things like the extended warranties, etc. Not to mention repairs, registration, auto insurance, regular maintenance, gas and others. This is not to scare you, but to inform you that whenever you’re buying a new car, your budget shouldn’t be tight and dedicated to the price of the car alone.

Down Payment – Most of the time, vehicle purchases are done with a down payment, the more money you can pay as a “down” the less your monthly bill will cost.

Monthly Payments – So you’ve paid your down payment. The next thing to worry about are the down payments. In most cases, the car dealer will present you options on how or how much you will have to pay monthly when you’re leasing or financing. The interest rate, loan term and down payment will all have an effect on your monthly payments.

Be aware of the 10-20% rule – This is probably the best tip out there when it comes to saving money for the car you are financing or leasing. Basically, you devote 10-20% of your monthly salary to the monthly bill of your car. Most people use 10-20% of their monthly income on commuting fees anyway, so 10-20% is a good benchmark.

Take advantage of the Age of Information – We now live in what is called the Age of Information where almost any kind of info is very easily accessible, be it from your phone or computer and in some cases, even your glasses. Take advantage of this, by looking up Affordability Calculators, there are many affordability calculators available online and these programs can help you in calculating and determining the actual cost and financing of your car. These programs or apps can help you determine your ideal total price based on your monthly income. They can also help you determine things like the loan term, down payment and finance rate.

If you want to learn more, these articles are a good read:



The Importance of the Insurance

Auto Insurance is one of most important things you will need when getting a car. Nobody likes to talk about it, but accidents happen and it is always better to be insured than sorry when it happens.

A to Z of the Vehicle Industry

A car insurance will make sure that even if you get into an unfortunate situation, you will have the backup and support that you will need and you don’t everything.

If you are in Australia or New Zealand, Youi Insurance has been getting a lot of attention lately. Lately, it has been noted NZ jobs boosted with Youi Insurance. Originally a South African Insurer, Youi is growing at a steady pace in New Zealand. Its parent company, OUTsurance Group, reported that Youi NZ Ltd had a growth in gross written premium of 19%, to $31.15 million.

There can be many factors to the success of Youi in New Zealand such as it being the only insurer in the country that doesn’t charge a $5,000 natural disaster excess. Also, the company did not force a freeze on insurance during the 2016 Kaikoura earthquake. The data collected in 2017 also indicates that the ratio of Youi’s paid out in claims versus the amount it received went down from 74% to 67%. Which means its loss is considerably reduced by 41%.

Buying and then financing a car is a big choice in any individual’s life and big choices like these shouldn’t be based on impulse. Adequate research and knowledge of the matter will help you avoid losses much like an adequate auto insurance company would.

And Finally…

If you have considered all the things that’s been said in this article so far and ready to choose your vehicle, consider this list of the 10 Quietest Cars You can Buy

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