How much will insurance pay for your totaled car? Ask and you shall receive!

Ok, let’s say you’ve had a car accident, thankfully no one was hurt! Oh, actually, your car is hurtin’ pretty bad and you think it might be totaled; sadly, this is often the case. Is it really totaled? Well let’s see, did the airbag deploy? Is there damage to more than one side of your car? Is it driveable? If one or more of these answers is ‘yes’, it is safe to say it’s totaled. Depending on your situation, this could be good or bad but either way you need to get educated. So how do insurance companies determine whether your car is a total loss?

 

  • 1. Damage is so severe that the car can’t be repaired safely.
  • 2. The cost of the repairs is more than the vehicle is worth.
  • 3. Vehicle damage is so severe that state regulations dictate that it must be considered a total loss car.

 

How Much?

If in fact, your car is totaled by insurance standards, how much cash can you expect to receive for it? First off, you need insurance to file a claim so if your insurance coverage has lapsed or your policy limits your claim amount, you may be stuck, but if that’s all good, file away! There is no gold standard for determining your car’s cash value once totaled (This may work in your favor). Though all insurance companies have a basic formula for reaching this number, there are simply too many variables involved for a simple online form approach. Here’s where the insurance company will focus their search but it’s almost always up for discussion in the end.

  • 1. Actual Cash Value is determined. That’s the resale price for your vehicle if it hadn’t been totaled. The insurance company will look at recent listings and sales for similar vehicles in your area.
  • 2. Pre-accident condition is considered. Your car’s mileage, options, trim level, and any pre-accident damage.
  • 3. Your deductible. The insurance deductible you choose for your insurance policy is held back from the payout amount for your claim.

 

Now that your detectable is satisfied, insurance is supposed to pay the estimated difference between your vehicle’s pre-accident appraised value and the deductible amount. The key word here is “Estimated” and whose estimation we’re talking about. Getting the highest insurance payout for your totaled car may take some haggling. Ask for the best price! Truth is most people just accept the first offer the insurance company throws at them without question. Remember this is a negotiable figure so here’s how to get your own rough estimate.

  1. 1. Find the NADA (National Automobile Dealers Association) Value for your car in fair condition.
  2. 2. Work out 20 to 40 percent of the fair condition value, depending on how bad your total loss car’s condition is. It’s probably closer to the 20 percent mark.
  3. 3. Keep depreciation in mind, your car is losing value daily.

 

Diminished Values

What if your car just needs repairs? Be prepared; your car’s value may drop due to repairs after the accident, this is called diminished value. It’s perceived trade or sale value is less than same model vehicles that have never been involved in an accident. Repairing the car won’t recover this lost value. However, like your totaled value, this is a negotiable number. Prepare to pass on the first offer and knuckle up to get the best settlement possible. In some cases it may be necessary file a claim against the other driver. This can sometimes force the insurance company to up their offer to avoid expensive attorney’s fees. You may also offer the court an expert witness. A car dealer may be able to present “actual” diminished values that are higher and more acceptable than the insurance company’s.

You might be surprised at how much you can increase your car’s totaled or diminished value with a little insurance savvy. Need help? Ask Mike, text or call (757) 560-4252 and ask for Mike Love. I’ve helped my customers successfully negotiate as much as $2500.00 over their insurance company’s offer. I strongly advise you to stay in the fight when it comes to the final settlement. It’s totally worth it!

 

Source

carbrain.com. “How much insurance pays for totaled car” BLOG, etrailer.com, Web. 10, 25, 2018 Sourced from: https://carbrain.com/Blog/how-much-insurance-pays-for-totaled-car Accessed 4 Sept 2018

 

Head For The Hills With Confidence

 

“I think I can, I think I can!” Is this what your truck says when you’re towing a boat or camper through the hills?

The little engine that could had the distinct advantage of being an American fairytale; you don’t… know before you go!

 

Can your vehicle pull its own weight and then some?

Anyone who’s ever towed a fully loaded trailer knows that it can get a little sketchy sometimes. If your underpowered or have too little stability, you could get into a number of bad scenarios. Your vehicle’s engine, transmission, brakes, tires and suspension, are all under pressure when towing an RV, boat trailer or toy hauler. Factor in adverse weather conditions and you may find yourself in a real pickle.  

What you need to know about your car, truck or SUV’s towing capacity

All towing vehicles have a maximum weight that they can safely tow. Exceeding that limit and trying to carry more than the recommended value could lead to accidents that cause damage as well as extreme wear and tear on the vehicle. (You can find the recommended weight in the owner’s manual.) Your vehicle’s tow rating takes several factors into consideration, including:

 

  1. Vehicle structure

  2. Chassis and suspension design

  3. Engine type, axle ratios, and other drivetrain variables

  4. Hitch design and class

  5. Tire ratings and load capacities

 

It’s important not to exceed these vehicle tow ratings, however there are other important weight limits that should never be exceeded while towing, including:

  • Gross vehicle weight rating (GVWR), which represents the maximum weight your vehicle can carry, including passengers, cargo, fuel and the vehicle itself.

  • Gross axle weight ratings (GAWR) on both the vehicle and trailer, which represent the maximum amount of weight a particular axle can carry, including the wheel and tire.

  • Gross combined weight rating (GCWR), which represents the maximum weight of your loaded tow vehicle and your loaded trailer combined.

  • Tongue weight or hitch weight, which should be between 10-15 percent of the total loaded trailer weight for conventional trailers and 15-30 percent of the total loaded trailer weight for gooseneck or fifth wheel trailers.

The above “Gross” ratings are on your vehicle’s door tag. See image below.

 

Exceeding even one of these ratings while towing could not only cause severe damage to your vehicle or trailer, but also put yourself, your passengers and others in danger

 

How heavy is your trailer?

Gross trailer weight is the weight of a fully loaded trailer. It’s not a weight rating determined by the manufacturer or a weight combined with any other weight — it’s the actual weight of the trailer after you’ve loaded all of your bikes, firewood, camping gear, people or any other cargo onto (or into) it. Any weight that you add to the trailer adds to the gross trailer weight. It’s as simple as that. How do you find your (GTW)? Most communities have public scales. For just a few dollars and a few minutes of your time, you can get the answers you’re looking for.

 

Inventory TM Auto Trucks

Inventory TM Auto SUV’s

 

If you’re a first time hauler, practice towing your trailer on some deserted roads before doing any actual towing out on the highway. Backing up, turning and braking should all be part of your training regimen. All that practice will come in handy for the real thing, because if you’ve done everything properly up to this point, including meeting the weight requirements, loading properly and checking equipment, then you can handle almost any challenge up or down the road.

 

Have questions about your vehicle’s towing capacity, trailer weight or other related specs? Ask Mike, text or call (757) 560-4252 and ask for Mike Love. I’m always happy to help you find the best vehicle and ensure you’re in it for the long haul!

 

Sources:

Etrailer.com. “Are Tongue Weight, Hitch Weight and Pin Weight The Same Thing For a Fifth Wheel Trailer

” Q&A, etrailer.com, Web. 9, 4, 2018

Sourced from: https://www.etrailer.com/question-124243.html Accessed 4 Sept 2018

Uhaul “How to determine your hitch system rating”

Sourced from: https://www.uhaul.com/Articles/Tips/33/How-To-Determine-Your-Hitch-System-Rating/ Accessed 4 Sept 2018

COUNTING CARS

Can one have too many cars? Well, as a used car dealer my knee jerk reaction is…, never! I mean I have around 20-30 at all times and seldom drive the same one two days in a row, it’s great! Ok, I get that I might possibly be a little tiny bit bias but still, is that something that people are concerned with? Should we be considering the risks of owning too many cars or is there even such a thing?

It’s easy to imagine that most people own 2, maybe 3 cars each, considering the variety of styles available, and the level of importance most Americans place on their automobiles. However, the peak amount of cars per household in 2006 was only about 2.05. That number correlates roughly with the economy’s highs and lows as you might expect and the recession of the late 2000’s created a bottomless pit decaying into 2010 bringing that number down to a little over 1.8. The lasting effects of this were pedestrians choosing public transportation and carpooling over driving, some ultimately relocating to cities where no personal transportation was even necessary. Some of you here in Hampton Roads may remember the “big move” to northern Virginia beginning around 2012. Also, generation Y (millennials) who as consumers showed much less interest in car ownership due to conservation concerns and affordability also helped drive the percentage of car owners down.

This all makes perfect sense and predictably, these numbers have rebounded with the economy’s upward climb. However, there are some noticeable behavioral changes in the average car buyer. Americans today have fewer light-duty vehicles, drive less, and are consuming less fuel. Hmmm, more car but less motoring over all tells me we’re onto something. We want our cars to last, we want comfort and convenience and saving money is higher than ever on our priority list. Once bitten twice shy? You could say that car enthusiasts today are justifiably more discriminating. The economy, fuel prices, and the negatives of consumption are great teachers. In addition to a greater economy, many of those Gen Y millennials are in their 30’s now. They’re getting older and at a stage in life where salaries are higher and guess what… kids are on the way! The percentage of car owning millennials has gone from 14 to over 29. The fact is we need transportation and though specific demographics are bound to hoof it and others will take trains and busses, the majority of Americans love their cars.  

So what do the studies say? The total number of cars per household falls naturally around 2, going up slightly as kids reach adulthood and prepare to leave the nest. What we also know is that heavier duty vehicles are more popular and that car owners are spending more responsibly using less fuel, and driving shorter distances. So how many cars are cool you ask? Well, look in your driveway… that’s about right 🙂

 

Sources:

Schmitz, Matt. “How many cars does the average American own?” CARS.COM CARS.com. 15 March 2017. Web. 8, 20,2018 https://www.cars.com/articles/how-many-cars-does-the-average-american-own-1420694459157/

 

Buying a Car that’s an Easy Resale!

What will YOU consider when making your used car purchase? Most of us will consider the following for starters and with good reason… 

 

  • First, what do I have in my budget?
    • Larger down payment, smaller payments
    • Don’t bite off more than you can chew
    • Consider that “Full” cost of owning this car
  • So many choices, what body style do I want?
    • Coupe/Convertible
    • Sedan
    • Hatchback
    • Station Wagon
    • SUV/Crossover
    • Minivan
  • How much power do I want?
    • There is an adventurous pleasure for many of us in hearing the thunder of a large engine and feeling its torque when accelerating. However, the truth is, trucks that tow and haul heavy loads are the real example of power requirement. The average car buyer doesn’t need it. Give it some real thought before going either way.
  • What size car do I want?
    • If big interior space is what you want and towing is a priority, buy big! The more practical approach… start small and work up. Small cars tend to have smaller price tags and consume less fuel. Larger vehicles make you feel safer but lighter cars are typically more agile and give you a better chance of steering away from a crash. They often have a shorter stopping distance, which may even keep you completely out of the mix. Some smaller cars even have about the same headroom as full size luxury automobiles.
  • What do I think about hybrids and diesels?
    • Either approach will extend your fuel dollar, but at a premium purchase price. You may have to drive 60,000 or 100,000 miles to recoup your costs. The type of driving you do determines whether a hybrid or a diesel makes sense for you. Hybrids tend to use less fuel around town, when low speeds and frequent braking keep them running on battery power longer. Diesel drivers will see their greatest benefits on the highway and diesel vehicles are more efficient than gasoline cars at low speeds. The fuel benefits of diesel may be attractive but can change as quickly as fuel prices

 

great resale on your carThese are all great points to research and consider before pulling the trigger on your next ride. Now, what about resale? That’s right, sooner or later you’re going to sell, and getting the most for your car is just smart business! Why not consider its resale now while you’re looking and make it easier on yourself down the road? With a little used car savvy you can do just that. According to Philip Reed, senior consumer advice editor at Edmunds.com and Mark Scott, a senior manager at AutoTrader.com in Atlanta, these are a few strong reasons why someone else may want your car as much as you did thus make it easier to sell when it’s time.

 

  • Geography. Body styles tend to be geographic. Demand for a particular car varies in different parts of the country. You should think about the popularity of certain vehicles in your area when buying new if you are going to later sell it locally. For example, there will be less demand for a used pickup in Miami than in Dallas. “A pickup won’t hold value in Miami like a convertible will,” says Scott Mark Scott, a senior manager at AutoTrader.com, in Atlanta. “But that two-seater convertible isn’t very practical and won’t retain its value in Michigan.”
  • Climate. If you are going to sell a vehicle with four-wheel or all-wheel drive, it will have more value in colder areas such as the Northeast. Moreover, all-wheel drive will be more in demand in the winter than in the summer. The opposite is true of convertibles, Philip Reed, senior consumer advice editor at Edmunds.com, says.
  • Color. Stick to standard colors and steer clear of fad colors. “You may see a fun, trendy color that’s hot at the moment, but five years from now it will be like, ‘What were you thinking?’” Scott says.
  • Upgrades and options. Not all upgrades are created equal. Certain equipment options will add to the car’s resale value while some pricey options won’t. “Spending $500 on an upgraded stereo will mean a lot to you, but four or five years from now it won’t bring you any extra money when you sell or trade in,” Scott says. There is more demand for automatic transmissions than manual ones. Reed says that sunroofs, CD changers and leather seats have historically added value to a car. An example of an expensive option that doesn’t contribute to a car’s resale value is a navigation system, Reed says.
  • Timing. Exercising some patience can pay off when trading in or selling a used car. If the used-car market is soft, wait six months until demand is higher. If fuel prices are high, wait until they cycle back down before trading in that SUV. Simply visiting a dealership on a less busy day can increase the trade-in allowance. According to Reed, dealers are more willing to negotiate on all aspects of a new car purchase, including the trade-in, at times when the dealership is less busy. Dickering over the trade-in value will usually be more successful for a consumer on a Wednesday morning rather than a Saturday afternoon.

 

It’s going to be much easier to enjoy AND sell your car if you’ve factored the items above into your used car search. You can also bet on regular maintenance, professional repair work, and good record keeping will impress your car’s next owner. Don’t be afraid to be involved with the maintenance and repairs when they’re needed, you may not perform the tasks yourself but knowing all the details will not only give you peace of mind but also give you confidence when it comes to pitching your car to it’s next owner!

 

All TM Auto automobiles have a Carfax and are professionally detailed before they reach the lot. Please check my inventory and take a few minutes to browse my website for other helpful blog articles!  I’m always available to answer your questions, feel free text or call (757) 560-4252 and ask for Mike Love.

 

Sources:
DMV.ORG. “Creating a car budget.” DMV.ORG. Web. 6, 29,2018 Retrieved From:https://www.dmv.org/how-to-guides/budgeting-purchase.php.
Heaps, Russ. “What factors affect car resale value?” Bankrate. Bankrate.com, July 2, 2010. Web. 6,29,2018. Retrieved From: https://www.bankrate.com/auto/what-factors-affect-car-resale-value/ .

The Great Wide Open!

Vehicles for camping and beachWhen I say camping, we all get a different visual. Some folks see rocky trails that their 4×4 must carefully navigate to reach a lone peak at the top of a mountain where no human in their right mind would attempt to set up a tent… and they love it! My version is backing up to our camper, plugging in the life support, filling up the truck with diesel, and hitting the open road in search of an exciting man made forest with all the amenities that my family and I could possibly imagine! Any way you see it, camping or just leaving to go anywhere on an adventure is fun! Something about leaving the convenience of our homes and day-to-day routines that makes us all feel alive.

 

Whether you’re experiencing your first trip to “The Great Wide Open” or you’re an old pro with a sticker from every park, beach, and campground in the country, we all can agree on one thing; our vehicle plays a significant role in the quality of our journey. I still remember packing three days of supplies into our two door Toyota and feeling like a legit explorer! The fact is, no matter where you are on the “Stuff” scale, you’re going places come Hell or high water and you’re going to fit it all in. It’s also pretty likely that the longer you take trips the more your choice of vehicles will adapt to how you prefer to travel.

 

 

For example:

Pre-kids = 2 door compact car or pickup / AC optional / Comfort optional.

With-kids = 4 door 4×4 SUV / DVD Players / AC / Power Everything / Comfort Package.

Post-Kids = 40 ft mega RV fully loaded with 3 bedrooms and no room for kids!  

You get the picture 🙂

Bottom line is that wherever and whenever you travel you need a people mover that has enough room for your current collection of toys, supplies, and “stuff” that is reliable, comfortable, equipped for your level of adventure, economical, affordable, and available! 

So what makes the difference when it comes to your ride? It can be as simple as letting in the sun…. A convertible like this 2007 Ford Mustang can turn a day trip to the beach into a favorite summer memory. Even camping, on a small scale of course, is cool when you can see the trees and moon at night! Not to mention it’s really fun to drive.

For transporting an army, consider the cargo space and power of this 2003 Ford Excursion. It’s the final solution for getting the family comfortably to any camping or beach destination.

If something in the middle works better for you then checkout one of my Grand Cherokees like this 2012 Overland 4×4 with sunroof, cooled seats, backup camera, cruise, the works!

Finding the right car for you and your adventures is important! Yes, it matters what you drive…

 

Have a car in mind that you don’t see in the TM Auto Inventory? Call or text (757) 560-4252 and ask for Mike Love, I can find it for you! Pick a destination, load up, and make summer fun!

Oh the places you will go!

Finally! The sun is out, and the road to Summer vacation is calling your name. It’s time for a brand new adventure. A weekend in the woods, a day at the beach, a cross-country road trip or just a trip to the store can be exciting with the right set of wheels. 

 

The Road is Calling Your Name

 

A weekend drive along the coast with the top down could be an epic experience in a sporty BMW Z-4 convertible or 427 Ford Mustang Convertible or the more adventurous 4dr Jeep Grand Cherokee with climbing power, just depends on your cargo! Your kids and your family dog may squeeze into your current mode of transportation, but if you’re serious about beaching it, you need more.

 

It’s no news that these cars are ideal for summer travel, highlights to seal the deal for die-hard DRIVERS.

 

*Four-wheel-drive jeeps provide total beach access to FUN!

*Going topless, there’s nothing quite like it in a Jeep OR Sports Car

*Only enough room for two in your sports car, this is a good thing!

*Jeep Cherokee offers the advantages of an ultimate adventure mobile with added luxury for long trips 

*Most jeeps have a reasonably low base price so a used Jeep Wrangler or even a Rubicon are feasible options!

*If you’ve never driven a convertible classic like the 1968 Chevrolet Camaro then call me, it’s an experience everyone should have 

*5-6 speed manual transmission puts you in control of every peak and valley

*Sunroof and T-tops are standard options, awesome for sunny days and starry nights

*Bose, Infinity, & Blauplunkt sound systems are the norm, a necessity for cruising

*Most handle athletically for speedy turns, yet have comfortable interiors for long trips

*All the luxury options that you want, AC and power everything are usually standard

 

A weekend jaunt to the woods with all your gear begs for a roomy Ford Explorer or if you need more cargo room AND four doors then this loaded 2012 Ford F-150 will do the job perfectly! A few hours in most cars are doable, but for a family excursion along the coast or to the mountains, your time at the wheel is much more of a consideration. Make it count from driveway to journey’s end.

Road hugging, sporty, and fast or off-road adventurous driving, these vehicles welcome the challenge. Two door coupes and convertibles or four door, four wheel drive SUVs and trucks, fun awaits!

 

Think About Which Car is Right for YOU

You may not always have the need for speed and adventure but when you do… nothing satisfies better than putting some distance between you and home. See TM Auto’s inventory

Wherever the journey takes you, make every mile a memory. Your journey begins and ends with transportation and your ride can make or break the experience. Buy your vehicle with your journey in mind and you’ll never regret it. Sure, we all have a need for our daily driver, a trusty shuttle is essential. However, traveling in these can be great or not so great, depending on where you’re going and who’s tagging along. When selecting your car, it’s smart to look at the bigger picture. Whether you’re planning a perfect family beach day or a weekend camping trip, how you get to the promised land is important. Having the right vehicle for the occasion is vital so the journey is as memorable as the destination itself.

Every family, big and small, has different needs. There are plenty of makes and models to go around and one to fit every lifestyle and budget. Whatever your adventure and whichever vehicle you prefer, let me help you get there!  Please browse my website and See TM Auto’s Inventory. Choose from a wide variety of used vehicles.

If you don’t see what you’re looking for, I can find it for you! I’m always available to answer your questions, feel free to text or call (757) 560-4252 and ask for Mike Love.

2018 Best Cars for Summer

With the exception of an occasional cold day, the end of winter is in sight and the sun is finally peeking through the clouds! We’ve had a long, cold winter and now we can all look forward to hanging up our coats and unpacking our tees! This change in the weather brings big changes in our lifestyles too. More time outside, exercise, fresh air, and lots more fun are on tap for the coming months!

Spring is when it all begins again; beach trips, Saturdays in the park, boating, golfing, surfing… too many to list right? It’s easy to get excited about travel and vacationing this time of year. So, you and your family are ready, but what about the family ride? The right car is essential to enjoying the Spring and Summer. After all that time indoors, you’re planning on getting some distance between you and home! Yup, enjoying a good beach breeze and a drive along the coast in a cool convertible would be awesome. Check out this 2007 Ford Mustang in our inventory right now. What a great way to kick off Spring Break!

More like the Griswold family… Wally World? Spring Break is coming fast so check out this 2010 Chevy Traverse with plenty of legroom. It may be your best choice! There’s plenty of space for the kids, cargo, coolers and friends, including the four legged variety.

Spring is every weekend warrior’s favorite season. Whether it’s for work of play, something more functional with lots of space for equipment and tools is always great choice. Trucks like this Ford F450 or Ford F150  are ideal for tough jobs. This is the perfect time of year for catching up your home improvement list; could be fun with a new truck! Own a construction company and need more space? Check out this pristine extended cargo van and the cab forward box truck that has plenty of room for a growing business.

 

Top down tooling around or truck bed full of tools; embrace a new season with a new ride. Whatever your lifestyle, TM Auto has the right car for you! Experience stress free car buying with TM Auto’s Guaranteed Credit Approval, and cruise into summer 2018 in style! Email me at mike@tmautova.com or phone/ text me at 757-560-4252. Ask for Mike Love. I’m always happy to answer your questions get you in the car you want!  

Easy Financing

How to Get It

Buying a used car can be daunting. First, you have to find a car that suits all your needs and is safe, and reliable. Now comes the fun part, paying for your new car. If you’re like most people, you’ll be applying for a car loan. When you get a loan, you borrow money from a lender and pay them back over time, with interest. The amount you actually borrow is the loan principal or financed balance, plus interest. The interest rate, presented as an annual rate, is the percentage you pay back in addition to the loan principal.

How do car loans work?

Most people think that when you get a loan to buy a car the finance company lends you the money and the car is yours. In reality, however, the lender actually owns the car, and they’re just letting you drive it while you’re paying off the loan. You don’t get the title to the car until you make your final loan payment. This is why if you don’t make your payments, the lender can repossess the car and if the car is destroyed or stolen during the term of the loan, you’ll still have to pay back the loan. This is also why lenders require you to carry insurance on the car where they’re named as the lien holder. If you fail to provide proof of insurance to the lender, they will purchase insurance on your vehicle to protect their investment. Letting that happen isn’t ideal, however, as the insurance is pricey and only protects the lender, not you.

Different loans have different loan terms, or how long you have to pay the lender back. For example, if you sign up for a five-year term, you’ll pay the money back, and then own the car free and clear, after 60 months. Loans are paid back in monthly installments, and most financial institutions can set up automatic payments to ensure that an installment is not late or forgotten. Lately longer and longer loan terms have been offered to customers; some lenders even offer eight-year car loans. While such long terms can mean lower monthly payments, they can also create situations in which you owe a lot more than the car is worth. The typical auto loan for a used car is much less, than for a new car — an average of $19,329 for used cars and $30,621 for new ones.

How does your credit score affect interest rates?

No loan is the same; some people pay more interest, and some pay less. The interest rate is based on a number of factors, one of which is your credit score. Sometimes called a FICO score, though FICO is only one credit scoring method used by lenders, your credit score can be anywhere from 300 to 850. Credit scores are determined by credit bureaus based on how much debt you have, how many open accounts you have, how much credit you have been offered, whether or not your bills have been paid on time, and the length of time you’ve been using credit.

Your lender will use information from your application and credit report to determine your debt-to-income ratio, and your credit score predicts how able and likely you are to pay back the loan. If you have a lower score, lenders will assume that you’re at high risk for not paying the loan back will charge you a higher interest rate and may only extend a loan offer with a shorter term. A more substantial down payment might also be required from customers with lower scores. It’s important to know your credit score before you apply for a car loan and do your best to make sure it’s as high as it can be.

You’re entitled to free credit reports from the major credit bureaus, but you may have to pay a little extra to get your actual score. There are a few ways to improve your score if it isn’t as high as you’d prefer, like paying off old bills and paying all bills on time for 6-9 months. If you don’t have any credit card debt, closing unused cards can help raise the score. If you do have card balances, closing cards can actually hurt your credit by raising your percentage of credit utilized. You’ll also want to double check your full credit report to ensure its accuracy. For example, say someone stole your identity and opened a credit card in your name. This could affect your ability to get a car loan, or the terms of any loan offered. You need to report the fraudulent activity right away so any errors can be corrected before you apply for auto financing. Dealing with the credit bureaus takes time, so checking your score before applying for a loan is vital.

If you have a high credit score, 760 or above, you’re considered a prime loan applicant. This means you can be approved for interest rates as low as 2 or 3%. Those with lower scores are considered a riskier investment for lenders, meaning higher interest rates. Individuals in this ‘subprime’ category (a score of 580 or below) can end up paying auto loan rates that are 5 or 10 times higher than what prime consumers receive. Most people who get auto loans have a credit score around 706 and should expect to pay rates close to the 4.21% mean.

What other factors affect your loans and interest rates?

Auto loan interest rates also depend on the type of institution lending money, so choosing the right lender means lower rates. Large banks are the leading lenders for auto loans, but credit unions tend to provide customers with the lowest APRs.

The national average for auto loan interest rates in America last year was 4.21% on 60 month loans. For individual consumers, however, rates vary based on credit score, term length of the loan, age of the car being financed, which institution provided the loan, and other factors relevant to a lender’s risk in offering a loan. On the whole, the annual percentage rate (APR) for auto loans ranges from 3% to 10%.

However, the highest allowed APR varies widely among banks, with top rates ranging from as low as 6% to as high as 25%. Banks who provide higher rate loans will generally accept applicants with worse credit, while others won’t offer loans to applicants with scores below the mid-600s. Most large banks have eligibility requirements for loans, including a mileage and age maximum for cars and a dollar minimum for loans. TM Auto can provide buyers with good credit a financing interest rate as low as 2.3% (conditions/restrictions apply) on cars up to 5 years old, even if they’re out of warranty.

As mentioned previously, credit unions tend to extend loans at lower interest rates than banks. They also have more flexible payment schedules, and require lower loan minimums — or none at all, in some cases. However, credit unions tend to offer loans exclusively to their membership, which is often restricted to certain locations, professions, or social associations.

How credit unions help!

Credit unions are member-owned and operated, controlled via a volunteer board of directors, elected by the membership. The board establishes and assesses policy, sets dividend and loan rates, and may hire a management team to run the credit union. This kind of structure means that members have a safe, convenient place to save and borrow at reasonable rates from an institution whose goal is to help them, not to make a profit of of them.

Anyone who uses credit union services is also a partial owner has the right to vote on important issues, like  the election of member representatives to the board of directors. Most other financial institutions, on the other hand, are owned by stockholders after a profit. Credit unions can charge lower rates for loans — including your car loan — and pay higher dividends on savings because they’re not-for-profit. Profits aren’t paid to stockholders, but rather are returned to members as dividends or improved services.

For example, the NAE Federal Credit Union in Hampton Roads is a cooperative, not-for-profit institution built to promote frugality and provide credit to members. It also provides special low rates for those financing with TM Auto and those also willing to move their account to an NAE bank. NAE Federal Credit Union is community chartered and accepts people living and conducting business within an area covering Hampton Roads, Gloucester, Isle of Wight, James City, Mathews, and York Counties in Virginia and Currituck and Gates Counties in North Carolina.

Members can also look forward to low rate credit cards with no annual fees, membership discounts, low rate loans, federal insurance by the NCUE, and convenient hours in addition to low rates for those financing with TM Auto Wholesalers. Even more benefits of being an NAE Federal Credit Union Member include:

  •         Free Voice Response
  •         Free Online Banking
  •         Free Draft Accounts
  •         Free Debit Transactions and Card
  •         Free Bill Pay
  •         Free Payroll Deduction
  •         Free ATM transactions at our locations

 

Getting financed can be easy if you know where to go! Have questions about getting financed through TM Auto Wholesalers? Call (757) 560-4552 and ask for Mike Love. Feel free to browse TM Auto’s inventory; your car, truck or SUV may be just a phone call away!   

 

Sources:

Heaps, Russ. “5 car loan mistakes that cost you money”. Bankrate. Bankrate, LLC. 8 July 2015. Web. 24 Jan 2018. https://www.bankrate.com/loans/auto-loans/5-car-loan-mistakes-that-cost-you-money/

N.a. “Average Auto Loan Interest Rates: 2017 Facts & Figures”. ValuePenguin. ValuePenguin. N.d. Web. 23 Jan 2018.  https://www.valuepenguin.com/auto-loans/average-auto-loan-interest-rates

N.a. “FAQ”. NAE. NAE. n.d. http://www.naefcu.org/hampton-roads-credit-union/faq/

U.S. News Staff. “How to Finance a Car and Get a Car Loan”. US News & World Report. US News & World Report. 6 Oct 2016. Web. 23 Jan 2018. https://cars.usnews.com/cars-trucks/how-to-finance-a-car

Spend Time, Not Money

Give the Gift of Memories

Who doesn’t love coming home to a tree full of presents? There’s a special kind of mystery inside carefully wrapped boxes with bows on top. The labels may say ‘from Santa’ but we’re pretty sure all those mythical elves living in the North Pole are actually mom, dad, your brother and your sister, your neighbors and your friends. Presents are great but what we love most at Christmas is the loving warmth and security of our family and friends.

This Christmas, instead of spending money, think about spending time. Without the pressure of searching for the extra special, perfect gift and stressing over how much money is too much or too little, the holidays can again become something to treasure and look forward to rather than just a strain on your brain and bank account.

There’s just as many options for how to spend your time as there are to spend cash on. If you’re a fan of the outdoors, consider a winter hike or ice skating or visiting a light display or a Christmas Town. Hampton Roads has plenty of trails throughout First Landing State Park for the hikers in the family. Glittering light displays that dazzle all ages can be found at the Virginia Beach Boardwalk and the Norfolk Botanical Gardens. Christmas Towns are perfect for families with children! Nauticus in Norfolk puts on Charles Dickens’ Christmas Towne for the month of December, and Busch Gardens Christmas Town even has rides for the bigger kids (and adventurous adults).

If you’re a little bit more of a homebody or just prefer staying warm and cozy instead of braving the cold, there’s more than a few activities for you and your loved ones, too. Consider hosting some friendly competitions — best cookie, most elaborate gingerbread house, tackiest homemade sweater. Treat it like the Olympics with cookie medals! Adults will enjoy the competition, and kids will love the abundance of baked goods (and will have a blast decorating those homemade sweaters). Enjoy a memorable Christmas.

Years and years down the road, you’ll cherish that ridiculously tacky homemade sweater, the family hike and winning the golden gingerbread award at your own personal Winter Olympics? Memories are forever, enjoy this holiday season with the ones you love 🙂 Merry Christmas!

TM Auto Wholesalers

Happy Holidays ~ Mike Love and the entire Love Family!

 

Stay with the Old, In with the New

Make Your Old Car Like New Again

Look out your window, and you’ll see Ole’ Reliable sitting in the driveway. The car that’s been with you for years now and still (mostly) runs great. Maybe you bought it new, used, or maybe it’s a relative’s old car. As nice as a brand new car might sound, those car payments…. Fortunately, here are a few things you can do to make your old car seem new! These tips and inexpensive fixes will get your old vehicle looking and feeling like it just rolled off the lot.

  1. Cosmetic Fixes

The most obvious cosmetic upgrade to your car may be painting it, but the easiest upgrade to make an old car feel new is a nice, thorough cleaning. Not just a vacuum and a car wash. To really spruce up your car, try checking off this list:

  • Shampoo carpet and upholstery
  • Clear out the trunk trash
  • Clean outside and inside of windows.
  • Remove the spare and clean out the tire well
  • Remove and clean under seat cushions. Consider getting cushions covers to make your life easier in the future.
  • Clean off floor mats or replace them with rubber floor mats, which are far more durable than most original versions.

A high quality professional detail is the way to get the outside of your car looking new again. Waxing and buffing can easily make old paint look new! If you really want to clean your car up, consider getting the engine compartment pressure washed as well. Your engine will look new again; it’s pretty amazing. Before going on the lot, all of the cars in my inventory are professionally detailed. I’ve used Gary, owner of Liquid Investments for years. He and his team do an excellent job for a reasonable price. Give him a shout (757) 477-5752.

After you work your way through a solid cleaning session, you car should already be looking good. If your steering wheel is looking a little beat up as well, you might consider purchasing a steering wheel cover for around $10. Another easy to overlook flaw that makes for a noticeable upgrade is your dashboard. You can add a dashboard cover or even paint it with vinyl paint to make it feel newer, and don’t forget to check the dashboard illumination. If your knobs or switches are broken, replacement parts are cheap whether they are new or recycled.  

  1.            Performance Upgrades

There are bunches of simple internal, mechanical fixes that can get your car running noticeably smoother and feel more comfortable. Check these major areas and see if they need upgrading: 

  • Headlights. Cars and trucks built over the past few decades typically have plastic headlamps that fog up over time. Headlight restoration is usually less than $30 and instantly makes a difference. A full headlight replacement can add a sporty look to your ride and will cost between $50.00 and $100.00 to do it right. (top vs bottom image)
  • AC. All cars’ AC systems can get mold, mildew, and bacteria build ups if not cleaned often enough. Make sure the air passageways into the vehicle aren’t covered by leaves, dust or grime before changing or cleaning any filters. Adding an air-conditioning deodorizer to the vents or your rearview mirror can bring back that new car smell, too.
  • Rubberizing. As your car ages, the rubber trim on doors begins to wear and tear, letting your hot and cold air out and wind noise and rain in. The adhesive strips take a little patience to apply, but are incredibly cheap and can instantly make the interior of your car quieter while driving.
  • Windshield Wipers. Old wipers break down and lose their effectiveness over time, making driving in the rain and snow dangerous. Upgraded windshield wipers make the cold, rainy seasons a little safer.
  • Brakes & Suspension. Old cars start getting stiffer as the years pass, and brakes get squeakier and squeakier with every red light. Getting your shocks, springs, dampers, struts, brake rotors, and brake pads checked and possibly replaced can completely change how your car drives.

**New springs can lower your car and improve handling if you’re a car enthusiast!**

  • Wheels. Tires periodically need to be replaced as treads wear down. Use the Penny Test (http://www.firestonecompleteautocare.com/penny-tire-test/) to check your car. Even if you don’t need to replace your tires, installing new tires can completely change how your car drives (and looks) and are much cheaper than a new car payment.

After working your way through these cosmetic upgrades and internal fixes, Ole’ Reliable shouldn’t look quite so old anymore and will be much more reliable! Have questions about these upgrades? Call 757-560-4252 and ask for Mike Love with any questions!

 

Sources:

Brown, Evan. “10 Ways to Make Your Used Car Feel New”. esurance. Esurance Insurance Services, Inc. n.d. Web. 1 Nov 2017. http://blog.esurance.com/10-ways-to-make-your-used-car-feel-new/

Huffman, John Pearley. “10 Ways to Make Your Old Car Feel New”. Popular Mechanics. Hearst Communications, Inc. 26 Sept 2011. Web. 2 Nov 2017. http://www.popularmechanics.com/cars/how-to/g175/10-ways-to-make-your-old-car-feel-new/

Karim, Andrea. “12 Cheap Ways to Make Your Car Look Awesome”. WiseBread. Wise Bread. 14 Dec 2014. Web. 2 Nov 2017. http://www.wisebread.com/12-cheap-ways-to-make-your-car-look-awesome