Are you thinking for filing a bankruptcy? What happens to your car?

No one likes to think they might have to declare personal bankruptcy, but if it happens to you, there are things you should know about keeping or acquiring a car.

Thinking for Filing a Bankruptcy?

Keeping a car

If you own your car outright, you can keep it if its fair market value is $5,650 or less. If it’s worth more than that, the bankruptcy trustee is required to sell off the vehicle. The Ontario Executions Act permits a bankrupt to keep one personal-use vehicle as long as its value is under $5,650.

If you bought your vehicle with a loan or on a lease, you have two options when you file for bankruptcy (or for a proposal). 1. You can keep the car, and continue making your loan payments on it; 2. You can give up the car, and anything that is owed to the lender after the car is sold will be included in the proposal or bankruptcy.

Acquiring a car

What about getting a car loan after you’ve filed for bankruptcy? This is by no means a slam-dunk, but it can be done. To find a car loan while in bankruptcy, you can try your bank. It might offer you a loan on condition that you agree to the direct deposit of your pay cheques. There are also Ontario auto loan companies that do financing for bad-credit consumers.

Here are some tips on how to get the financing you need:

● Have a look at your credit profile, and see how you can make it more positive. You have the right to correct any misinformation or to add a note explaining your circumstances.

● A car loan company may give you approval, but you can expect the interest rate on a bad-credit loan to be higher than the best-customer rate, since consumers in bankruptcy are regarded as high-risk borrowers. In these circumstances, be sure to calculate how much of a monthly payment you can afford. When approaching the car loan company, have a monthly payment range clearly in mind. And be realistic about what you can afford!

● Shop around. Make sure your lender is reporting to the credit bureaus regularly. You will be repairing your credit and elevating your credit score. Also, make sure your monthly payments are fixed, not variable. Payday loan outlets are not reliable in this regard.

● You may have to make a down payment, and no matter how much your take-home pay is, you will likely only be approved for a loan under $15,000. If you’re eyeing a car that’s pricier than that, you’ll need to make a bigger down payment.

● Once you’ve been approved for a bankruptcy car loan, consider eventual refinancing. By making all your payments on time, you could qualify for lower interest rates even after a year.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com 

Should You Buy Your Car New or Used?

Buying a car is one of the biggest purchases you’ll likely ever make. The first question to start with is whether to buy a new vehicle or a used one. Each option has its advantages.

Buying a Smaller Car in Ontario?

WHY TO BUY NEW

Made to Measure — You get to pick the kind of car that you want — with all the latest features and accessories that you want.

Unblemished History — A new car has no wear and tear on it. It’s not been damaged in accidents or suffered ill effects from a history of road usage.

Warranty — You get the manufacturer’s warranty with (at least) a full three years on it. (Yes, you can buy warranties for used cars, but the best warranty you can have as part of the purchase price is the one that accompanies a new vehicle from the automaker.)

Maintenance — A new car won't require maintenance until you’ve driven it several thousand km, and even then only an oil change and tune-up should be necessary. You won’t have to replace the battery, brakes or tires for at least the first few years.

Safety — The newest cars are more likely to have the latest safety systems available, whether mandated by legislation or demanded by consumers.

Higher Fuel Efficiency and Lower Emissions — Newer also means better in terms of Km per liter and eco-friendliness.

Financing — Banks offer lower interest rates on new cars because they are usually worth more and haven’t begun to depreciate.

Convenience — When you’re looking for a new car, the salesperson can do most of the legwork in seeking the model you want. But if you’re looking for a used car, you have to do all the searching, whether on the Internet or in used car lots.

WHY TO BUY USED

• Price — If you don’t have a budget for a five-figure purchase, then buying a used model will mean you’re getting the most car for the least cash. For less than one-half the price of the average new car, you can buy a three- or four-year-old used car that has more room and features than a comparably priced new one.

• Depreciation — A new car will lose a significant chunk of its value the moment you drive it away from the dealership. With a used car, there’s no such concern.

• Insurance Rates — As with financing, insurance rates are impacted by how old the car is, but this time the used model tends to be less expensive.

• Choice — While you can’t order a used car built to your specifications, to order, buying used may enable you to acquire a model, option package, or even wheel design that’s no longer being made.

Ultimately, the decision on whether to buy new or used comes down to issues such as affordability, reliability and safety.

For information about PRUDENT VALUE CARS visit www.prudentvaluecars.com

How to get lower rates on your car insurance?

Car insurance is one of the major costs of owning and operating a vehicle. So, how do you get the best rates available?

First thing to know: Rates will vary not only on who you are, (for example, a male teenager), but also on your driver record. Certain groups, such as first-time drivers, will have to pay higher rates as will drivers who have had accidents or traffic tickets. Both of these groups are assessed as higher-risk motorists.

However, even if you have a poor driving record, you should still seek out the lowest cost car insurance for your particular circumstances.

Canvas the major car insurers

One web site which is really helpful in accessing a wide range of insurers in your locale is: www.insurancehotline.com.

The insurers on this web site will tend to be either national or even multinational firms. But at least by finding out the rates of the major car insurers first, you will have a sense of how much the market is charging for someone with your traffic history. Always be up front about your traffic history, otherwise you may be charged a higher rate than you were originally offered. Use these rates as a basis of comparison when you find other deals.

Check out benefits as well as rates

Be sure to compare not only the premiums charged but also the services and benefits offered by the insurer. Also, ask about rate discounts which are not always advertised, but could be offered if you ask.

For example, rate discounts may apply if:

· you are a senior or a member of the military

· you are a graduate of a driving academy

· you keep your car in a garage or a locked yard.

Search the internet

The internet has taken the drudgery out of comparison shopping for many products including auto insurance. The Web has also been a boom for niche marketing. This means that instead of an inflexible national or multinational insurer, you might instead find a smaller insurer better able to help you at a lower rate. Just be careful that the firm is reputable and conscientious about settling claims.

Remember, if a deal sounds too good to be true, it probably is.

For information visit www.prudentvaluecars.com

Snow Tires Mean Safer Driving and Saving Money

It’s that time of year again - time to pay attention to the first snowfall of the winter and buy a set of winter tires for your car.If you think they’re a costly investment, think again:: they’re much less expensive than getting into a car accident would be.

Best for snow, slush and ice

Don’t make the mistake of thinking you can get through winter unscathed by continuing to use your all-season tires. Winter tires are much better at getting your car through snow, slush and ice. They give you that extra traction, braking and handling that you need when driving in winter weather.

Winter tires have specialized rubber compounds and tread designs to cope with the cold weather. The tread stays flexible, preventing snow buildup and maintaining traction on ice.

Tests done on ice demonstrate that even at the slow speed of 24 km/h, vehicles with winter tires stopped from 1/2 to a full car-length sooner than the same vehicles with all-season tires. If your car isn’t equipped with winter tires, you’re more likely to fishtail in corners and spin out of control on icy patches.

If you’re concerned about the price of winter tires, then do some comparison shopping. You can go to a warehouse store, check prices on the Internet and travel across the border to the U.S. You might be able to benefit from shopping rebates offered by manufactures.

But don’t wait for the first big snowstorm of the season. You don’t want to face the premium prices that will await other motorists who left their tire-buying too late.

Four winter tires, not two

It may be tempting to save money by buying just two winter tires, but that’s a bad idea. It can cause your vehicle to spin unexpectedly because of the greater grip of the two winter tires.

When you do put on winter tires, be sure to maintain them. Keep them properly inflated so that you get the best wear. When you take them off, store them in plastic bags that are stacked horizontally.

Don’t assume that other features can offset the lack of winter tires. ABS (Anti-Lock Brake System), traction control, and vehicle dynamics control systems are limited by the grip your tires can provide.

There’s a faulty assumption among owners of SUVs and other 4WD vehicles that they provide all the safety necessary when driving on ice. Not so. A 4WD vehicle will help you get started from a full stop and will partially help you around corners, but it won’t enable you to stop or slow down more quickly.

Remember: winter tires are a motorist’s best friend in ice and snow.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

What to Consider When Buying a Car or Truck

Buying a car is a major investment, second in many people's lives only to buying a home. Whether you're buying the first quality used car of your life or are doing so yet again, the price and finances of the process are important to consider. Not all of us can just rush out and pay cash for a car, after all, so some considerations should be made as far as getting a good deal and on securing the money you'll need. Here's a quick look at the basics behind the process and some tips to get the best price when you're about to purchase a previously owned vehicle.

Securing your own financing is often a better option when buying a previously owned vehicle.

To get the car you want and the loan you need without paying too much, getting your own lender will often help you get better terms, lower interest, and can actually help you pay less for the car in the end.

Dealers often like to focus on monthly payments when they sell you a car rather than the overall price because they can adjust some figures you may miss to make it seem like your lower monthly payment is better.

Find out roughly what you'll qualify for in terms of a loan from a separate lender and then visit the car dealership.

This way you can focus on the actual price of the car, not the terms of your loan.

When you've found the right car, don't pay too much attention to that sticker price in the window

Instead, find out what the wholesale price of the car is – what the dealer paid for it – and use that to negotiate upwards instead of down.

Finding info on car prices is easy today thanks to mobile web browsers, and can help you get the best price for your previously owned vehicle.

Finally, consider trading in to lower the price. Your current previously owned vehicle could knock a few thousand dollars off the cost of a newer quality used car and improve the terms of your financing, so don't hesitate to find out its value and consider trading it in as well. When you keep all of these factors in mind, it's easier than you may think to get a great deal on your purchase and to get the car you want and the loan you need.

Fore more valuable information contact www.prudentvaluecars.com

The Issues to Look out For when choosing a Car or Truck

If you're considering buying a new car, there's never been a better time to do so. Automotive dealers are motivated to sell like never before and loan companies are ready to help you get the car you want and the loan you need. Buying a quality used car has never been easier, but before you rush to the dealership and buy the one you've been eyeing as you pass by on your way to work you should take the time to review a few basic steps for choosing a car. Doing so can make a huge difference in your contentment with your choice.

Buying a car is a major investment that shouldn't be taken lightly.

• You need to ensure that you're getting a quality used car for your money because as forgiving as an auto loan may be, you can't back out of it just because you decide that the car isn't right for you or uncover hidden issues with it a few months after purchasing it.

• There are a number of things to check for to ensure you make the purchase that's right for you. Start by affirming to yourself that you aren't going to be pressured into any deal. You need to buy based on quality, not sales pitches.

• First of all, try to look beyond a single model and narrow your selection down to more than just one quality used car.

• Take the time to check out both the outside and the inside of each vehicle but remember that appearances aren't everything.

• Take the car for a test drive and carefully pay attention to various issues. Is it easy to handle on the road?

• Do you notice any noises like popping, rattling, or clanking when you drive, turn the wheel, or brake? If so, consider a different car or you may regret it.

Even if you don't notice any issues with the first quality used car that you drive, try out a couple more. This lets you get a feel for which one drives the best and allows you to compare any issues that you may not even be thinking of at the moment like seat comfort or turn radius. In short, you need to take the time to give each car a very complete review so that you don't run the risk of buying a car you're not satisfied with or – even worse – a lemon. You're making a major investment, and should treat it as such.

Fore more valuable information contact www.prudentvaluecars.com

Trading in Your Car - A Good Idea?

If you're thinking that a new car is in your future, you've got options. Finding a quality used car is one of the best ways to save money since someone else takes the value depreciation instead of you. Of course, you're already in a car that you may not need when you get a new one, so it may be worth thinking about trading in your car.

Trading in has several advantages, from helping you get the car you want and the loan you need to simplifying the process considerably. But it's worth looking at the whole picture to ensure you're making the right call.

First of all, it's worth looking at the pros to trading in your car. A major one is that it can help you get the car you want and the loan you need by lowering the total amount you'll have to pay on the quality used car you're hoping to get.

• You can apply the trade in value of your old car to the price of the newer one.

• They won't be giving you a huge sum, of course, since they'll need to make a profit as well. But you can expect to have at least a bit taken off the overall price, making it easier to afford the previously owned vehicle you may be considering.

• Also, take the time to agree on a purchase price for the quality used car you want to buy before you discuss the trade in value of your current one.

• This keeps the deals separate, and makes it easier for you to figure out just how much of a loan you're going to need for the newer car.

To get the most from your current previously owned vehicle when you trade it in, be sure it needs no repairs and that you have it cleaned completely before you bring it in.

There are plenty of reasons to trade in your car, but bear in mind that if you still owe payments on it that those will have to be paid off by the trade in amount before anything can be applied to the new car, otherwise you may not be able to get the car you want and the loan you need at all. If you keep these factors in mind you should be able to decide on the right course of action for you, whether you opt to buy a second car or trade in your current one. 

For more valuable information contact www.prudentvaluecars.com

Save Money by Preparing your Vehicle for Winter Sooner than Later

Take time to make sure you are prepared for winter and it will save you money in repairs and prevent accidents from happening. Before you know it, temperatures will cool off and there will be snow on the ground. The colder months ahead can really take their toll on your vehicle. A few simple preventative measures taken now will keep your car safe and in good condition during the long, harsh winter ahead.

Get an oil change. Take a look at your owner’s manual to make sure what kind of oil to use. Oil gets thicker as it gets cooler so it won’t do a good job in lubricating or turning your engine over if it’s to thick.

When is the last time you changed your windshield wiper blades? If they are not clearing the rain well, then they probably will not move the slush and snow when you need them the most. Get a new set put on.

Change the windshield fluid. Make sure it is rated for below freezing temperatures or else you may need to replace all of the fluid lines if they crack and freeze below zero.

Check your antifreeze. Make sure you have a 50/50 ratio of antifreeze and water. If you are not sure, drain it and start with new pre mixed antifreeze.

Snow Tires. Snow tires are made using a different type of rubber that sticks to snow and ice better. Changing your tires sooner than later is a good idea. You never know when freezing rain or frost may come.

Check your tire pressure and make sure it’s where it should be. Once again, air condenses in cold weather and your tires may look flat.

Be equipped for winter. Do you have: snow brushes, ice scrappers, first aid kit, flairs, jumper cables, blankets, flashlights and candles?

Check your Battery. If your battery is weak, has corroded cables or connectors, consider replacing it. Batteries only have a four to six year life expectancy.

Check your breaks. Take your car in for a break inspection. Here are a few signs that you should get your breaks looked at: when you break, your car pulls to one side or another, you hear a grinding or squeaking noise and especially if the pedal feels to soft when you press down to stop.

Check your car’s hoses and belts. Usually a car is due for a tune up every 50,000 kilometers so have them inspected. With winter coming your hoses and belts could snap or break in the cold.

Make sure you can defrost your windows and your heater is working. There is nothing worse than not being able to see through the fog or freezing inside while trying to steer.

Start to keep your fuel tank full so that you don’t have condensation building up and water forming. If the built up water freezes it could block the flow of gas to your engine or dilute the remaining gas.

Hope this simple reminder helps keep you safe throughout the winter months. For more valuable tips and information, visit www.prudentvaluecars.com

What Happens to Your Car During Bankruptcy?

Bankruptcy is a difficult, emotional process that will burden you with stress and worry. But, sadly, it's often one of the best choices for those facing serious financial hardships. You'll probably have a ton of questions if you're thinking about filing for bankruptcy, one of which is what happens to your car. Transportation is a must for most Canadians, and understanding how a bankruptcy affects your vehicle is important. There are a few variables that will change just what happens to your car during bankruptcy.

Two things will be looked at in relation to your vehicle when you file for bankruptcy.

• • The first is just how much the value of your car is. You'll have to get an independent appraisal to turn in to the attorney or trustee handling your bankruptcy.
• • The second issue you'll need to address is whether or not you have any liens against your car or if you own clear title for the car. If you have a lien against the car, your creditor will turn in their claim to your trustee. The priority claim is the one that will be dealt with first.

If your vehicle is valued at or above what you owe you may have the option to continue making payments. If it is valued lower than the amount that you owe, you may be able to negotiate with the creditor to pay them the fair market value of the vehicle. If not, they do have the right to repossess the car. They can also do so if you decide not to make payments, regardless of the total amount owed. If you owe more than the fair market value for your car, it's unlikely that your creditor will accept less.

In the event that your car is repossessed but is worth less than you owe, the remainder of your balance will be structured into your overall bankruptcy proceeding. However, if you have clear title to the car you will still be required to pay the trustee the market value or surrender the car to them to help pay off your loans. Cars worth less than 5,650 dollars which have no liens are exempt from this and you will be allowed to keep them. You may be able to pay the difference in value, such as paying 1,000 dollars if your car is worth 6,650. In short, the odds are that your car may be lost in a bankruptcy proceeding. But in some cases, it's simply the only way. 

For more valuable information, visit www.prudentvaluecars.com

Hybrid Versus Gas – What are the Pros and Cons?

There's a lot of talk today about the ever rising gas costs facing us, along with the damage we're doing to the environment through the greenhouse effect. These are two of the main issues that are driving the increasing popularity of hybrid vehicles. Using a combination of electricity and fuel to power themselves, hybrids have long been touted as the best way to drive. But if you're one of the many who remain unconvinced – and even if you aren't – it's a good idea to look at the pros and cons of both hybrid and gas powered vehicles to help decide which is right for you.
So what advantages does a hybrid hold over a purely gasoline driven vehicle?

Cost is a major one, and you'll save on fuel since the hybrid doesn't rely solely on gasoline and will get far better gas mileage.
Five Canadian provinces are offering a one-time tax rebate if you buy a hybrid. Manitoba, Prince Edward Island, Ontario, Quebec, and British Columbia all offer tax credits or rebates of between one and three thousand dollars.

The Vehicle Efficiency Initiative offered nationwide provides as much as a two thousand dollar tax rebate when you buy a brand new hybrid.

Here are a few main drawbacks to owning a hybrid.

There's a good deal of discussion going on at the moment about the cost of upkeep and maintenance for a hybrid vehicle.
Not all mechanics are even qualified to work on them, and there's a good chance that you may pay a little bit more for services.
The initial purchase price for hybrid vehicles is normally somewhat higher than that of gasoline only cars.

Additionally, the parts of Canada that get large snowfalls may not be the best place to own a hybrid.

Auto insurance doesn't really differ much from hybrid to gasoline vehicles, and rates aren't affected by the type of engine your car has. Most drivers agree that they drive and handle the same as well, although hybrids typically have a bit less room inside. If you're interested in saving money on fuel and helping the environment, hybrids are the right choice for you. The tax incentives offered by the government help offset their slightly higher costs, and you'll pay no more for insurance when driving one. The choice is ultimately up to you, but these facts should help you decide. 
For more, please visit www.prudentvaluecars.com

Getting a Mechanic You can Trust to Save on Car Repairs

Your car is a vital part of your life, and unless you live in an area with effective mass transit then you probably utilize it on a daily basis. And when your car breaks down or needs regular maintenance, you really have no choice other than to have it done. Unless you know how to repair it yourself, your only chance for saving on car repairs is to find a mechanic you can trust. There are plenty of jokes about mechanics and how they can take advantage of their customers thanks to the fact that those customers have no option other than to trust them, but in some cases those are much more than just jokes. Do some research to protect yourself.

Take a look at consumer sites like APA.

They post lists of reputable mechanics and repair shops for you to review. If the mechanic you're thinking of using isn't on the list, you may want to consider visiting another one. Their own tests found that thirty percent of repair shops they visited failed their simple tests. Those that passed will be on the list. Even if you live in an area that hasn't been reviewed by sites like these you still have a couple of options available to help you with the task of saving on car repairs.

A study in Calgary involving thirty different garages found that only eight received a passing grade. The rest failed to notice issues or charged extra prices for work that simply wasn't necessary. Because of this, customers could end up paying hundreds of dollars that they don't even need to spend.

Find repair shops that offer free inspections, or at least very cheap ones.

If you can get an inspection and estimate of repair costs from a few different shops then you'll be able to compare each one to see which seem to be trying to make unneeded repairs as well as which ones are trying to overcharge you. It may be a hassle you don't want to deal with, but driving to a couple of different mechanics could end up saving you hundreds.

There are a few points that can help you with saving on car repairs, and remembering them is important whether you need a brake job or a transmission repair. For those in a financial bind those hundreds can be the difference between making the rent or falling behind on it. 

For more information visit www.prudentvaluecars.com