September 20th, 2011
This article deals with the two main categories of automotive warranties offered in Canada today, it will explore some of the differences and offer few examples for you to make an educated decision.
Automotive Warranties offered in Canada are confusing at best to an average consumer; they are designed to be that way, something that is very similar to an insurance policy. It can be easily mistaken and misunderstood if the purchaser is not knowledgeable about automotive technology. In essence these types of products are underwritten by an insurance company. In layman’s terms if you pay me few hundred dollars right now, when your vehicle requires repairs (depending on the component and reason for the breakdown) we may or may not cover the cost of your repair. The two main categories of warranty you will encounter today in the market place are called “comprehensive coverage” and “power train”. Let us look into the comprehensive coverage first.
Comprehensive unlike the word used to describe the product is not the same as “bumper to bumper” coverage. The typical sales pitch on these products would be “if anything breaks down on your vehicle, we will cover the repair cost.” however there are many fine prints on these types of contracts that will often lead to misunderstanding and frustration when you try to make a claim.
First of all no warranty will cover items they called the “wear and tear” items. This includes the most often changed items on your vehicle. The list includes your brake rotors, pads, tires, AC Freons, or insurable items such as windshield, body panels, so on and so on. So what does comprehensive warranty really cover then you ask. Well the correct technical answer is “the warranty will cover the part and labor cost on any manufacture defect” in another word “if the item in question are not designed to be frequently replaced due to wear and tear” it will be covered under this warranty. For example if your CD player stopped functioning, it will be a warranty related item. However if your CD player stopped working due to your buddy trying to install a new system for you it will not be covered.
The service department of a dealership usually investigate the claim by booking your for one hour labor upfront, after if they can determine it is a manufacture’s defect, your cost for the hour labor will be waived. However if the verdict is “guilty” you will be on the hook for about $100 for the mechanic’s labor. Any new vehicle will come with some sort of warranty when they are sold, depending on the manufacture, it will vary from 3 years or 60,000 km up to 5 years or 100, 0000 km. If you are insisting on purchasing an extended warranty, it is always the best option to buy it from the manufacture itself, rather than any aftermarket product.
Power train warranty on the other hand only covers the power train components of your vehicle. This will usually include all internal mechanical parts along with gaskets and seals on your engine, transmission and differentials. Power train warranty usually runs a much longer period, starting from 5 years or 100,000 km to 7 years or 160,000 km depending on the manufactures. Same diagnostic procedures will also apply to the power train warranty if any claims are made.
Author Rick Tao Li, for more useful articles like this one please visit us online at http://www.usedcarsscarborough.com
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August 20th, 2011
This article looks into the world of sub prime or bad credit financing for cars, if you are in need of a bad credit car loan, this may help you to make the right decision.
There are three credit bureau companies working in United States which are collecting data from all the financial institution for every consumer and after compiling that data, they make a report which is known as credit report of the consumer. This credit report is very important for every individual and is used at every phase of his life. This is a report of his financial behavior. This is the report which will tell people how trustworthy this person is because everything will be written in the report regarding his payment history by all the financial institutions. Whenever a consumer delays a payment against his loan or delays any installment, it clearly affects his loan history and this will also be marked on the credit report of that consumer.
All credit reporting bureaus are updating data on a regular basis and the reports generated by them are much authentic. All the financial institutions can have an access to the credit history of any consumer and can view it whenever they need. Once a consumer will go for any kind of loan, the authorities of financial institutions will first view his credit history and then will decide to approve the loan. Without checking the credit history, there is no approval or rejection.
The car loans have the same formula and the financial institution will not approve any car loan without viewing and analyzing the credit report. Credit bureaus are also evaluating and updating the credit rating of those consumers who have loans with banks. This credit rating is very important for every individual and this single number will show his credit stability and behavior. No credit check car loan is basically a secured loan and the chances of loss for creditor are less but due to previous loss suffered by many financial institution as a result of bankruptcy and nonpayment of loans, now they have very conscious and they only deal with those people who have good credit score and history.
If we go through credit checking of every individual, then 95% of the consumers will fail to take any new loan for any need. Car is the basic necessity for every individual and once a person needs it, his desire of having a car increases with the passage of time. Now what those consumer will do if they do not have good credit history and need a car for their family? Can’t they buy a car ever? No, this is not true because many private money lenders are now available who are approving no credit check car loan. There is a network of private money lenders who are issuing car loans for new and used cars on no credit check car loan basis. They do not evaluate your credit score, they do not have any concern with the credit history and all they do is to make the process of purchasing a car more easy and instant.
The fact behind this is very simple. A person who is earning handsome money can pay installments and the car is itself a secured item for financial institution. They can repossess the car anytime in case the consumer is not paying installment regularly.
Thank you for reading this article, it is brought to you by SOS Car Loans. Visit us online at http://www.soscarloans.com or http://www.usedcarsscarborough.com for more useful articles like this.
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August 19th, 2011
This article looks into the world of sub prime or bad credit financing for cars, if you are in need of a bad credit car loan, this may help you to make the right decision.
Many people are in search of some ways to purchase their own cars. Car is a basic necessity for people and every family is now requiring this piece of machine. This is not only needed by many people but it is also a very basic need for many families. Many people have problem with transportation these days and that is the reason why they need a car at their service for any time.
Money is a factor in purchasing a new or old car. Maximum people cannot afford to purchase a new car on cash because availability of cash is a huge problem these days. Many people are in serious trouble due to limited cash in their hands because in the past few years they were facing a huge burden of many consumer loans. However, the problem of cash can be resolved by the financial institutions or money lenders who can approve a bad credit car loan for you on easy installments.
Now when you will apply for a new loan, the first thing which will be kept under consideration by the authorities is your credit report. These days, a massive problem of bad credit history is going on and this is because of those consumer loans which were issued a few years back by the creditors. Most popular loans are credit card and personal loans which were issued very easily and people used those loans on very unnecessary purchasing. This is well said “easy come easy go”. Only a few people used the money given by the financial institutions for their businesses or needs but most of the people spent it on unnecessary things. Finally what happened with those people is known by all of us and that is bad credit scoring and bad credit history. Now all those people who are experiencing bad credit history are struggling on their own because financial institutions are not approving any new loan for them.
Same situation is with the car loans. If you will try to apply for a bad credit car loan, it will be rejected by the authorities because of bad credit history. Improving bad credit history takes too many years because there is a process defined and no one can do it instantly either he has cleared his loan or not.
Now there is good news for all those people who have bad credit history. They need a bad credit car loan. This is now possible for people to buy their own new or used car with the help of money lenders. Buying a car was ever difficult for many people in the past few years due to bad credit history but now it is possible and anyone can avail this facility. Many money lenders are allowing people to provide income proof to get a loan only for a car. This is a fact that bad credit car loan is a secured and insured asset so the chances of loss for a creditor are less and that is the reason why these creditors are issuing new loans.
Thank you for reading this article, it is brought to you by SOS Car Loans. Visit us online at http://www.soscarloans.com or http://www.usedcarsscarborough.com for more useful articles like this.
Tags: used cars Brampton, used cars Mississauga, used cars Oshawa, used cars Pickering, used cars Scarborough, used cars Toronto, used cars Whitby
August 18th, 2011
This article looks into the world of sub prime or bad credit financing for cars, if you are in need of a bad credit car loan, this may help you to make the right decision.
Money is needed by every individual in this world and everyone is struggling for it day and night. The bad phase of economic recession has ruined the life of many people in the last few years and that is the reason why many people have lost their jobs and businesses got flopped. Now with the passage of time, people are recovering from this bad situation and are gathering resources to make them financially strong. Many people in this entire world have taken many kinds of loans from different financial institutions from time to time. Time does not remain same every time and when a person experiences some problem of financial disturbance, it becomes difficult for him to pay back his loan installments. This is a fact that a person will consider his basic needs first rather than paying installments and whenever he will be caught in a situation of bad financial phase, he will not pay his installments.
Now people are trying to stabilize their businesses by investing some money in them. Everyone is aware of bad credit history and its consequences. This is fact that once the person has bad credit history, many financial institutions avoid to sanction new loans to him and that is the reason why many loan applications are been rejected these days. Now with the passage of time, people are recovering from that bad economic phase and are finding some ways to give a boost to their businesses.
Whenever a person will need money to invest in his business for any other work, he will either apply for a new loan or will sell his valuable things. If the credit history will not satisfactory, the loan application will be rejected and the second option that will be used by the consumer will be to sell his valuable thing. Mostly people sell cars because these can be sold instantly and easily. They get money by selling their car and use that money where they need.
Now there is one more option for all those people who are going to sell their car. Rather than selling their valuable car, they can go for used car financing and can get the money. By this, they will not only enjoy the ride but will also get the required money for their need. Now the question arises that how will they get their used car financing with bad credit history? In Simple words we can say that how a financial institution will allow a person with bad credit history to take a loan against anything. Although this is a secured loan but these days many financial institutions are not taking any risk for new loans.
Now there is good news for all those people who want used car financing and that is the money lenders who are approving new loans against your used car financing without checking your credit history. Now all those people who are in need of some money can now apply for a new loan. These money lenders do not have any concern with the credit history and they do allow you to take any other loan against your car documents.
Thank you for reading this article, it is brought to you by SOS Car Loans. Visit us online at http://www.soscarloans.com or http://www.usedcarsscarborough.com for more useful articles like this.
Tags: used cars Brampton, used cars Mississauga, used cars Oshawa, used cars Pickering, used cars Scarborough, used cars Toronto, used cars Whitby
August 11th, 2011
This article deals with the most thought after brands you can purchase for under $5000.
With today’s economic turmoil and uncertainty, it’s no surprised many Canadians are looking to purchase a vehicle that is both affordable and reliable for under $5000. The logic is simple; buy something that is affordable, great in the winter weather. But it will be cheaper to insure as well as to maintain, the market for vehicles under $5000 is big, so big that if you don’t react quickly enough some one else may just snatch the deal before your eyes. This doesn’t mean you should jump into making a purchase without any research or sound advice. For one, vehicles under $5000 will not come with any warranty, this is normal because there is just no profit in the transaction for the dealership to offer any legitimate warranty. Don’t be fooled by some dealers’ advertising of free 6 month or 1 year warranty. These types of third party coverage is completely useless, the amount of hassle and headache you will go through just to make a claim will make you think twice the next time you encounter them again. Vehicles under $5000 are not hard to find but buy with caution because some vehicles may seem like a great deal on paper, but the repair bill can be very high. Typically speaking the Japanese vehicles are the better choice, not only they are fuel efficient but also reliable even at higher km. Good choice by default would be Honda and Toyotas, certain Nissan products as well. Honda Civic is famous for its reliability and resale value, Toyota Corolla is a close competitor as well with only minor differences.
Used Hondas are usually more expensive compare to a used Toyotas, for $5000 you maybe able to purchase a 8-10 year old Civic on the market with 150,000 – 200,000 km. Don’t let the km scare you, the Civic can easily last up to 400 – 500,000 km as long as you maintain the vehicle with proper maintenance plan. For Hondas in particular anything older than 1998 will require a timing belt and water pump replacement at 100,000 km. Ask your seller if this has been done, if not you should save some money set aside for this important maintenance. If you are purchasing a used Honda Accord or Odyssey you should be aware of potential transmission failures if the vehicle has more than 160,000 km, bring along a friend who has good mechanical knowledge or to your local garage for an inspection.
When it comes to purchasing a used Corolla you should check for engine oil sludge by opening the engine oil cover as well as the dip stick. Make sure the vehicle does not burn engine oil when you start or a puff of blue smoke when you first turn the vehicle on. Suspension noises and exhaust heat shield rattles are common among Corollas when the vehicle is more than 8 years old. But when it comes to timing belt and water pump replacement it is not as crucial for a Toyota due to difference in the so called “none interference” engine design. Remember don’t be over concerned with small mechanic issues, as long as the vehicle’s powertrain has no obvious problems you are on the right track.
Thank you for reading this article it is brought to you by SOS Car Loans, Toronto’s leading bad credit, no credit car loan provider. Visit us online at http://www.soscarloans.com or http://www.usedcarsscarborough.com for details.
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August 10th, 2011
This article explores some of the similarities as well as differences between the ever more confusing subject of bad credit and no credit car loans.
With today’s economic downturn and ever rising unemployment rate across North America, the so called “sub-prime” or bad credit car loan business is growing exponentially year after year. With this out of control growth in the sub-prime market followed by “in your face” advertising, it is difficult to understand and to distinguish the differences between these high interest rate car loans. In this article I will attempt to demystify some of the concepts between them and hopefully this will offer you some guidance next time you are looking for such service. First of all let’s put things in perspective once for all. Popular phrases you see in today’s advertising such as “bad credit”, “no credit”, “new credit”, “new to the country”, “recently divorced”, “bankruptcy” all fall under the category of sub-prime. Sub-prime just like the word suggest is below prime, prime good credit, sub-prime logically is considered bad credit. This invisible dividing line lies in your credit score, any credit score that is below 640 is automatically considered sub-prime.
Sub-prime itself divides into two major categories, bad credit been one, no credit been the other one. The only difference between the two is bad credit means you have credit history, due to late or missing payment, or defaulting on a previous loan, you are now considered to be a risky applicant in the eyes of the banks. While no credit means exactly that, you have no credit history behind you. This will apply to students, new immigrants, anyone who has no credit card in their name or no credit history. This type of credit is equally as bad in the eyes of the lender. The only other type of car loan is considered to be no credit required, or no credit check car loan services.
The no credit required or no credit check car loans are the types of car loans where the lender will not require any credit at all to offer you an approval. The risk factor in these types of loans is extremely high, but the funds are mostly coming from the private sectors instead of your typical lending institutions. In another word these loans are coming from some one much like a loan shark rather than the banks. These types of loans will not require any credit at all, but it should be reserved as your last resort, because even these no credit check car loans will keep track of your payment history. If you default on your payment at these types of car loans, you will not be able to obtain a car loan again! So consider your options carefully before applying.
Thank you for reading this article it is brought to you by No Credit Check Car Loans Toronto, to visit us online for more useful articles please go to http://www.nocreditcheckcarloans.ca or http://www.usedcarsscarborough.com
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August 8th, 2011
This article will help you to determine when to apply for a No Credit Check Car Loan as well as some of the conditions you should be aware of.
The used car financing option is a smart choice for those people who do not have sufficient budget to buy a new car. Nowadays, there are various companies that are providing the chances to avail such type of financing opportunities. There are many people who cannot afford to purchase new cars. So, they can get the benefits by obtaining these kinds of cars within the lower budget limit. The finances for these cars can also be obtained quite easily. The amount is paid in the form of loan to the required individual by calculating the overall expenses. The entire cost for the car is calculated by estimating the usage price and in this way they do not consider the original price of that particular car. That is why; you will have to pay less for the used car which is obviously not the case for the new cars. So, the financial assistance in terms of loan is provided by agencies according to this percentage.
According to this used car financing method of getting money for used cars purchase, the specific amount is paid in the beginning in terms of 1st payment. While buying a new car you also require paying the particular amount as first installment. However, in case of used cars this first installment is quite reasonable as compared to the amount you have to give in case of new car. Therefore, you will not require any heavy investment in the beginning for used cars, but in case of new car this is a basic need. Different companies offer various packages of returning the loan amount. The time span during which you have to give money back lies somewhat between the limit of 2 years to around 5 years. In fact, this time duration depends on the company you select for this purpose and also the loan amount you acquired from them.
There are two slightly different ways through which you can get help of used car financing. These ways basically include getting loan in terms of unsecured and secured forms. In case of secured loans for purchasing the used cars an individual is required to pledge any of their available assets with the company. This is in fact a way to ensure the company with which you are making a deal that money will be returned. If the borrower remains unable to make timely payments to the company then they have right to get hold over the asset that has been offered initially as guarantee. In case of unsecured loans, the scenario is quite different because one does not have to provide nay security in the start for taking the desired amount. So, anyone can make use of this type of option whether he own something or not. But, in this case the interest rates which are demanded by company over the loan amount are really very high. That is why; this deal will become quite an expensive one in the end because large amount has to be paid as interest rate.
Thank you for reading, this article is brought to you by SOS Car Loans, please refer to our websites for more useful articles like this one at
http://www.soscarloans.com or http://www.nocreditnoproblem.ca
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July 21st, 2011
This article looks at the negotiation process of buying a used vehicle when you have bad or no credit.
If you have bad credit or no credit, you may have a negative experience after your recent visit to your local dealership. Having bad credit or no credit is not a crime, but in the business world of automotive sales, having poor credit history means you will be mistreated or completely ignored. Been able to get a car loan is the key behind every sale from the dealership, after all if you can’t get approved for the loan a lot of folks will be pissed off because they worked for free for few days. Bad credit is much like a criminal record in the eyes of the car dealers because it will stay on your record and it will definitely affect your chance of an approval when it comes to financing. In my opinion if you need a vehicle for work or family you should be more concerned with the approval rather than the price of the vehicle. When you are looking for a vehicle, make sure you are picking out something that is affordable to you.
Price of the vehicle is less important if the dealership can approve your loan, after all what is the point of getting a great deal but you can’t get financing? If you are seeking credit from a new car dealership, your chances of approval is minimal due to the strict requirements from the manufactures for loan approval. You can try to apply to a bad credit car loan service where they specialize in bad credit or no credit car loans. The approval maybe a lot quicker and easier but the interest rate will be higher. If your credit score is so low, you shouldn’t be concerned with the vehicle price or the interest rate, simply take the loan they are offering and begin your credit rebuilding or “recovery” process right away.
With good repayment history your credit score will rise over time making it easier for you to take out a car loan in the future. Remember these types of loans are usually the “transitional” loans where you can use it towards your benefit. Once your credit score recovered enough you will be able to negotiate on the price of the vehicle as well as the interest rate on your next car loan. So be patient and wait out this period in your recovery and once you are back on top you will have a lot more negotiating power.
Thank you for reading this article it is brought to you by No Credit Check Car Loans Toronto, you can find us online for more information at http://www.nocreditcheckcarloans.ca or http://www.soscarloans.com
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July 16th, 2011
This article looks into the scenario where you are either unemployed or living on disability and need a car loan and where you can get approved.
If you are thinking of taking on a car loan recently but you are unemployed or currently living on disability, you will understand how hard it is to get approved for a car loan from the banks. The very basic requirement for a car loan is to have an income, many people today don’t realize if you don’t have any income on paper there is no way a bank will lend you money. But there always ways around this problem, if you need a car badly enough there may not be too much choices when it comes to the vehicle you want to buy. Living on disability or unemployed usually will not qualify you for any kind of loan even from the “B” class lenders, so in another word if you are currently in these situations it is impossible for you to get approved even from the bad credit lenders.
First thing you should be careful with is not to apply for credit from the big dealerships, once you apply credit there the lender will be required to dig up your credit bureau. Since the lender is a retail business pulling a credit on a customer means it is a “hard hit” or a credit report that will reduce your credit score. The best thing to do is to save up for a small mount of down payment on the vehicle, and apply to the “no credit check” car loan providers. The rock bottom of the credit world is the no credit check car loans. These types of loans are usually funded privately from the dealership itself; these types of loans are the same as if you borrowed money from your family.
No credit check car loans will usually approve everyone, there will be stiffer stipulations such as a small amount of down payment or installation of the GPS tracking device. These devices are in place to ensure in case you default on your car loan some one will be able to track down the vehicle and to repossess it without too much hassle. So in conclusion if you are looking for a vehicle and you are been turned down else where, just apply directly to the no credit check car loans and you will be driving your next vehicle within days.
Thank you for reading this article it is brought to you by No Credit Check Car Loans Toronto, you can find us online for more information at http://www.nocreditcheckcarloans.ca or http://www.usedcarsscarborough.com
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July 15th, 2011
This article looks into a common scenario called “credit seeking” and how it can affect your credit score negatively.
If you have been recently turned down for a car loan, the most important thing you can do is to be patient and not to engage a behavior called “credit seeking”. Credit seeking or some times referred to as “credit hunting” means an individual is submitting his or her credit application to number of loan providers within a short period of time. Lets imagine you walked into a Honda dealership full of hopes and expectations for a brand new car, after a test drive you have signed the deal with the sales person. It maybe few days before you heard back from the sales person only to tell you “they are working on your file at the moment, it maybe few more days”! This may come to you as a shock since you didn’t think you had bad credit to begin with, but if your credit score is border line on been a bad credit applicant. This can be a rude awakening to your financial situation. The best thing you can do for yourself is to stay calm, and cancel your current contract with the dealer and eliminate as much small debts as possible.
But more often than you can imagine, people actually start to look around for a better deal. And in doing so they try to submit multiple credit applications to multiple dealers only to find out none will approve them for a car loan. The explanation is quite simple; every time you do a credit report on yourself you are in danger of lowering your credit score. There are two types of inquires you can run into, the first type is called a “soft inquiry” that’s where the customer will request his or her own credit report for personal use. This type of credit inquiry usually will not affect a person’s credit rating at all. The other type is called a “hard inquiry” where it is been requested by a dealership or a car loan provider. This will indeed lower your credit score every time a credit report is produced, the average drop in score will range from 3-5 points. This may not seem like a lot but when you applied to 6 dealers in your recent shopping spree you will be looking at a 30 point drop which put you into another credit category entirely.
Keep in mind there is nothing positive about credit seeking, imagine you are the car dealer number five and after you pulled the credit report from the customer. The report will show he or she has been busy shopping around for a vehicle that will not install any confidence in you regarding that customer. And not to mention it is illegal to sign multiple bills of sales from dealerships. So the next time you are been declined for credit, just wait out the grace period and apply only after your credit score improves.
No Credit Check Car Loans is Toronto’s leading no credit check car loan provider; we can approve everyone, even without a credit check. If you are tired of been turned down all the time, visit us online at http://www.nocreditcheckcarloans.ca or http://www.usedcarsscarborough.com
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