Lawsuit Funding – Supporting Free Market Specialty Finance Solutions for Litigants

If you follow writing dealing with lawsuit funding, the business which provides immediate cash to applicants in return for a portion of the proceeds of their lawsuit, you will encounter many opinions regarding the “fairness” of such transactions and potential problems for the legal system.

However, you will find few proponents of the industry writing on the internet – mostly because they are too busy filling this need for their customers.

We endeavor to speak in defense of the lawsuit funding enterprise because it needs defending. Even though the majority of critics’ arguments fail with a little analysis, others are more subtle. It is these arguments that are most dangerous – not only the settlement funding industry but to ALL enterprises seeking to provide a good or service for profit.

Costs Analysis is Subjective

Almost every settlement funding critic attacks the business because of its cost. Opponents point to “outlandish” interest charged on transactions and opine that consumers are being taken advantage of because of their dire financial condition. They speak out in defense of the “little guy” and attack the supposedly large lawsuit funding industry as greedy money changers hell bent on destroying the legal system. These portrayals are designed to play on people’s sensibilities. The reality is very different.

But whether lawsuit funding enterprises are greedy is NOT the point. The point is that ‘cost’ is a relative concept. We see evidence of this with every financial transaction we make.

Let us take automobile purchases as an example. A KIA ‘costs’ much less than a BMW, even though they provide the very same utility – a working automobile. Yet not many ‘consumer groups’ would try to protect the unfortunate individuals who are ‘forced’ to buy a BMW because they have to keep up with the Joneses.

Would these same ‘consumer groups’ come out and attack BMW for providing a luxury automobile?

Of course not. And the reasons are as follows:

The motivations of the parties are not always known.
BMW is a specialty automobile, it is more expensive than a KIA because it is better made, has more features, etc.

So what does this talk of automobiles have to do with lawsuit funding?

In every financial transaction, including a lawsuit funding deals, each applicant is living through his/her unique life situation. Clearly, it is impossible to know what the motivations are for ALL market participants. What makes sense for one person does not always make sense for another.

Further, lawsuit funding is specialty finance. The business seeks to provide a marketplace for sellers of a unique type of asset – pending litigation. Since no two lawsuits are exactly alike (especially personal injury lawsuits which represent approximately 90% of the settlement funding deals), no two settlement loan transactions are exactly alike. Each underlying lawsuit has its own unique set of facts and circumstances. A lawsuit is simply a special type of ‘asset’ which can be used to provide liquidity (cash) for those in need.

Sellers Can Decide What is Fair

Let us take the car purchasing example a little further. Suppose the individual who bought the BMW and financed some of the cost loses his job immediately after the purchase. Unable to make the payments, he puts the car up for sale only two weeks after its purchase.

Needing a quick sale, and calculating the cost of insurance and other factors unique to his situation, he decides he could sell the car for 50% of the purchase price and it would be worth it to him.

While the exact amount will vary, conventional wisdom says that an automobile loses 30% of its value when you drive it off the lot. But placing the price below that figure virtually guarantees the car will sell fast – and it probably will. These terms suit his immediate needs. He is the person most able to evaluate the costs.

These types of transaction routinely occur in almost every marketplace. Do you hear anyone suggest something should be done to protect the car owner from this unfortunate situation? Probably not. Who would be opposed to this practice? New car dealers? Used car dealers?

Perhaps new or used car dealers would oppose these transactions. Maybe if they thought they could make more money, their lawyers, lobbyists, and media minions would be hard at work attacking the free marketplace and calling for minimum prices to be paid for used automobiles. More likely however, they would be potential purchasers in the above described scenario – true supporters of and active participants in the free-market system.

But the point is really this: the parties to any transaction are in the best possible position to assess what is fair in the transaction. Lawsuit funding is simply one type of financial deal wherein the participants can exercise this discretion.

Critics would rather someone other than the parties decide. They would rather outside parties dictate what terms are “fair”. This flies in the face of common sense.

Does Social Media Help In Getting An Auto Loan?

We live in a world dominated by technology and social media. Whether they are your shared posts, status or your connections, social media platforms play a key role in carving your virtual personality. A well-known fact is that technology is an inevitable yet an integral part of our lives. When it comes to financing your car, social media is building its way and becoming a relevant medium of profiling. For instance, John walked into a dealership to purchase and obtain financing for a car. The quickest and easiest way to search for a tentative background of John would be to get a grasp of his personality on the basis of his behavior on Facebook and Twitter account, respectively. Currently, a small percentage of lenders use social media for judging an individual’s creditworthiness. However, the developing presence of social media is gaining mind share of the lenders.

Can Social Media help in ascertaining the Creditworthiness of an individual?

1) Facebook can build your Credit Circle

The very essence of Facebook lies in networking. A creditworthy profile does not require millions of posts or many friends. However, if you have a genuine profile and do not pose any abnormal social behavior, your profile is likely to get approved for an auto loan. Additionally, the presence of certain contacts in your friend list with a clean history and a strong credit score further add to your creditworthiness. Lenders can look for mutual contacts that have been previous customers. The payment history of the mutual contact can then be used as a basis to judge your creditworthiness. In order to get the most out of your circle, seek a person with a good credit score and make him a cosigner and your auto loan process will become smooth.

2) With LinkedIn, lenders can check your Employment Stability

A stable employment speaks volumes about your personality and trustworthiness. LinkedIn can serve as the best source of obtaining information regarding your job history, duration, professional position and interests. The documentation of an auto loan requires you to display evidence of a source of income through pay stubs. However, there is less proof one can gather regarding the stability of employment. Social media can become a tool to ascertain not only if there is job-hopping, but also the financial strength of the individual. A person with a 500+ connections, long duration of employment history and a considerable profile activity can become a favorable applicant in the eyes of the lender.

Buying a Car: Making the Most of your Social Media Profile

Social media has made its way into the minds of auto buyers as well as lenders. As primary sources of guides, nothing comes above your credit score, current income status and payment history. However, virtual platforms such as Facebook and LinkedIn are starting to occupy mind share in terms of creditworthiness. Once the primary sources of information seem insufficient, lenders may turn to social media to get an idea of your personality. A few helpful ways to make sure your social media positively adds to your credit score is to be careful with your online posts, invite only genuine friends into your virtual circle and to always keep your professional profiles updated.

How To Save Money On Your Two Wheeler Insurance

Tips to save money on two wheeler insurance

Many people in India own two wheelers. It is compulsory for you to buy a two-wheeler insurance policy if you own a bike or a scooter. But can you reduce the insurance expenses? Sure you can! Just follow these tips and you will see a difference.

Avoid making smaller claims: Before you make a claim, see how much the bill amount is. If it is a small amount, pay it yourself. Making numerous small claims will unnecessarily bring down your NCB to zero which will overall lead to a loss.

Attach anti-theft devices: A car insurance plan offers protection against theft and other dangers to the car. So if the car is found to be safe and less susceptible to thefts and break-ins, the insurer will offer a discount on the premium. Therefore look to install some anti-theft devices to the car to not only keep it safe but also to reduce your insurance costs.

Be a good driver and earn No-claim bonus: Driving carefully will reduce the chances of your car getting into mishaps. This will reduce the need to make claims and you will earn NCB. The NCB will in-turn pull down your insurance premium costs.

Renew two-wheeler insurance before expiry: Do not wait for the two wheeler insurance policy to expire before you renew it. If you have a lapsed policy, you may need to pay some fees and fines to get a new plan. So always try to renew the policy on time to save money.

Buy online: It is known fact that insurance bought online is cheaper. So buy a two wheeler insurance plan online and save a considerable amount of money.

Choose the right kind of cover: If you have a two wheeler that you use occasionally or is almost on its way out, opt for a third party cover. If however your bike is used daily and is a valuable vehicle, go for a comprehensive plan. Knowing which cover you need will help you save money.

Deductibles: Every two wheeler insurance plan has a deductible component. This means that as the policyholder, you will have to pay certain amount at the time of a claim and the insurance provider will pay the rest. A high deductible will lower your premium costs and vice versa. If you are confident of your driving skills and feel you won’t need too many claims, opt for a higher deductible. This will help you save money on your two wheeler insurance plan.

Compare: Last but not the least, you most definitely need to compare the available car insurance plans to get the best deal at the best rate. This is one of the easiest and quickest ways to save money on your bike insurance plan. Compare when you buy a new plan or renew an existing one.

Top Five Intra Day Trading Tips To Become A Better Trader

In words of Warren Buffet The stock market is a device for transferring money from the impatient to the patient. Let’s read between lines. The investor or trader who is impatient (frequent buy/sell strategy) transfers money to the patient (holding strategy).

Find below herewith five tips which should be followed by a day trader:

Take advice of professional trader

Before one starts day trading it is better to take advice from experienced and expert day trader trainer. Every trainer will have different teaching method and style. See for one who has good teaching method. He should also suit your trading style. They may be ready to teach in their free time. He may charge the fee. As he is spending his free time with you. But it is worth. You can assume that paid fee as an investment, which you need to get knowledge. They are the best share tip providers when you trade.

In future when you grow big, many newbies’s will come to get knowledge from you. At that time you can charge them likewise.

Gather information from financial news

One has to gather news from across the globe. Segregate relevant news, which affects your business. Analyze and set priority which news will most affect your business. Stay updated on news like meetings, change in government policies and rules. Local, national and international news should be followed.

M&A, financial results, entry/exit of members of BOD, etc. These types of related news of the company one have shares in, make sense.

Though the news does not impact a common man but may have an impact on your investment in the concerned company. This news helps to take a smarter decision, especially while trading shares. Through nifty future tips also one can gather information.

Treat trading as any other business

Take day-trading as any other business. It is not a hobby, but a serious business. It is not for fun that one is in day trading. Like any business, it needs devotion and dedication. Trading is a part. One has to devote a lot of time preparing a plan. Study different charts before coming to any conclusion. Follow news on TV, read business magazines, study reports etc. It is a full day activity.

Keep eye on professionals

One should study professionals. What they are buying, when they are selling. For how much time do they hold the script? Since they have experienced one can learn a lot by keeping eyes and ears open and mouth shut. If one makes mistakes, then analysis the mistake. What went wrong and where? You can find them in many share market advisory companies.

Patience

It needs time, energy and devotion to master the skills. As the old saying goes Rome was not built in a day It was destroyed and then rebuild. This process was repeated many times over. Even if one makes loss he has to get up again for a fight.

Traders do not profit all the time. Many a time they incur losses. So one has to be prepared for losses and have patience during the time of loss. Commodity tips are also helpful to know the market trends.

Today’s successful traders were also novice once in a while. They got success by their hard and smart work. They had put in their efforts, made mistakes, but kept up their learning process.

Sip Calculator Magnetizing The Investors Towards Online Investing

Online investing option has reached to a higher level with the introduction of SIP calculator. Making the calculation of SIP amount easy, the tool is handy to use as well. Let us understand the concept of SIP calculator with a story. There were two friends Yash and Rohan. Both had passed out college and were placed in MNCs. With the commencement of their career, they took a resolution of initiating their investment also. Yash was very trendy, and new technologies magnetized him. On the contrary, Rohan was simple and was not much of a techie. As both of them decided to invest, Yash did all the research online and also prompted Rohan to take up the online investment method. But, as for Rohan, it was not his area of expertise. So, Rohan relied on the mutual fund agent, and Yash went for online investing. When it came to deciding the amount to invest as SIP monthly both were confused. Yash took the help of an SIP calculator, and Rohan trusted the agent. But, the outcome was that Yash got the exact amount required for investment and the agent failed to calculate the precise amount and thus took an approx figure. Thus, for the same scheme Yash paid the correct amount that was required and Rohan had to pay a little more due to the inaccuracy of calculations.

The story signifies the importance of SIP calculator in the investing process, because the amount of SIP decides the corpus (the main aim of investing). Especially in the online investing the role of an SIP calculator is of vital importance. The investor advances towards being free in order to make the optimal use of their money. SIP calculator acts as a catalyst in aggravating the process investment through proper channel.

Features of an SIP calculator:-

There are a lot of features which motivates an online investor to use SIP calculator. A few amongst them are stated below:

Easy to use:

SIP calculator is an easy tool to operate on. The user-friendly approach is the striking feature of the tool. Providing an environment of smooth functioning and quick calculations, an SIP calculator in India is making online investments attain new heights with each passing day. The main reason of the increasing inclination towards online investment is the handy tool (SIP calculator), which ease out the complex calculations manifolds.

Using CAGR:

SIP calculator uses the formula of CAGR (Compound Annual Growth Rate) to calculate the returns. CAGR is the most widely accepted concept for the growth calculation of investment over a period extending one year. The calculation of CAGR is very complex and not beyond the grasping power of non-financial people. It is a mind wrecking concept and takes time to understand. But you need not worry. The CAGR calculation is simplified with the help of SIP return calculator. Paving the way for quick and easy calculations, SIP return calculator has become a defining point of online investment.

Targeting accuracy:

The goal of an SIP calculator is to provide results that are 100% accurate. But, it works on the inputs that are fed to it. Any mistake in the input data leads to an erroneous result. Otherwise, the result shows the exact and accurate outcome without the mistake of a decimal place. A perfection of that level is surely a strong feature of SIP return calculator.

The Benefits Of Trading The Commodity Market

Like trading in the Stock market, trading in the commodity market is also very interesting. While one trades on the basis of Stock Cash Tips in the stock market, the trader can trade on the basis of commodity tips in the commodity market. ProfitAim Research is one such advisory firm, which provide both the best Stock Cash tips as well as commodity tips to the traders.
Commodity market seems to be a lucrative avenue to a lot of traders and Investors. In the Commodity market various commodities are traded and one can take benefit of the price fluctuations to trade effectively in the commodity market. Various commodities are listed on the Commodity exchange and the relative prices of various commodities are traded on the exchange. There are various benefits of the Commodity trading like a trader can make huge profits by trying to forecast the Commodity signals. The most important part of the Commodity trading is to anticipate the Commodity trading signals.
Scalping: Intraday Trading Strategy For Commodity Market
One of the important benefits of the Commodity market is that the trader can form a strategy and trade on the basis of it. The Intraday strategies like First hour strategy or scalping techniques can be followed to earn good profits from the trades. Scalping is a technique to look at the price range during the first hour of trade and then look for a breakout from this range. Thus, if the prices break from the high it’s a buy call and a rise in the prices is anticipated. On the other hand, if a breakout from the lower limit of range is observed a down trend is anticipated. Thus, scalping is an important strategy in achieving good profits from the Commodity markets.
Also, there are other strategies available like trading for small profits. In this case small changes in the Commodity signals are generally traded for the profits. Also, a large number of trades are executed to add up to large profits, this will be applicable in Stock cash tips as well. The Commodity trading signals are unassuming but still with a proper plan and a proper strategy good profits can be made through Commodity markets. The trader can also base their trade based on the advice from the advisory firms who provide free Commodity signals initially and then charge a nominal amount for their services. Thus, the Commodity trading is beneficial if done with proper planning and strategy.
Trading based on the Charts
Trading in the stock or commodity market is an art difficult to master. People use various methods and strategies to trade in the stock markets. Trading based on the charts is one of the ways out of them. Various types of charts exist like Candle Stick charts and line charts. These charts can be plotted with varying time scale. The price movement depicted by chart can be an important way of forecasting future prices.
Thus, one can trade on the basis of charts and by applying suitable indicators of the technical analysis, one can anticipate the price movement. Trading on the basis of intraday Stock Cash Tips is the other way of trading.

Judge Some Facts Before Exchanging The Money

When you will go traveling, then you have to take the things, which you will need in that place. It is necessary because you will not get the facilities of your home there and you have to be prepared for every situation. But when the matter comes to the visiting of a foreign country, then apart from our excitement we have to think about the thing first is the money. As all of us know that there is variety in the currency of different place. So, we must take the proper currency of that place as we cannot do anything without it. There are some methods, by which you can exchange the money, like the banks, the ATMs or from some brokers.
The banks are the most reliable medium for exchanging the money. You can be assured by the fact that you will get the service authentically. They will systematically exchange the currency and you don’t have to think about it. You can also convert it from the banks of that place also. You will get the same reliable service. But as you are going to a public sector, then it will take some time and you have to wait for it. So, if you don’t have the time to wait there, then you will face difficulty by exchanging through the banks. The banks also charge high rates for converting the money, then it can be expensive for you.
You can take the money from the ATMs also. It is the most convenient medium for getting your cash, as you yourself will draw the money and you don’t have to depend on someone for this. So, you can take the money whenever you needed and it is the fastest service. But there I also the problem, as the ATMs charge a very high price for drawing the money. It will become more expensive for you as you have to pay more than the normal transaction. If you think that you will get the money at a time, then also it will not be safe for you to carry so much money to an unknown place. But with every transaction, you have to pay the charge.
When you will try to go some brokers for Cash Exchange, then it becomes easy for you as you can get the money by sitting at your home. You can do it by online and the agent will come to your home and will take the money from you and will also return it within the given time. It can be a suitable option for you as you don’t have to do anything for the exchanging the cash. But there also can be a problem as the matter is about your money, then you have to be a little careful and have to know about the broker and the agent, who will be the medium of transaction. If they are not reliable enough, then your money will not be safe enough. There is also the matter of the false currency as it has happened in the services like Australian Currency Exchange. So, be careful about every facet of exchanging your money so that you don’t have to waste your money in the wrong place.

The Latest Trend In Doorstep Loans

These days, individuals frequently have no opportunity to visit loan specialist’s office to apply for quick cash bolster. Henceforth they begin asking financial assistance from relatives and companions that is exceptionally humiliating. Be that as it may, no more you need to shoulder the disgrace of looking for assistance from companions for banks and facilitates everywhere throughout the United Kingdom have presented Doorstep loans. As the very name suggests, finances under this cash backing is conveyed comfortable doorstep. Additionally, the sum affirmed is all that anyone could need for all your unimportant needs that look for your moment consideration.

Until the point that a couple of years back, applying for extra subsidizes was a testing assignment as you were requested to experience repetitive customs. You were solicited to submit piles from archives. Actually, it took a very long time to finish the whole procedure. The greater part of the circumstances, when you got an endorsement, the requirement for stores was finished.

Be that as it may, things changed with online machine mode that scarcely took a couple of minutes of yours. Simply peruse pages and you will run over different banks offering moment cash backing. Because of regularly expanding rivalry among moneylenders, it has turned into a great deal less demanding for you to pick the loan specialist that offers bargains according to your need.

Render your own subtle elements on an online application frame yet ensure it is finished and exact. Numerous loan specialists may get in touch with you inside no season of applying. You can choose from bargains that suits your current needs. In the event that they are happy with your data, assets may be authorized into your bank tally and you can sue it the way you need with no confinements. From paying pending power charges, Visa charges, stockpiling charges; obligation solidification, child’s instructive expenses to traveling, meeting wedding costs and therapeutic urgencies, you can do everything.

Regardless of where you live in the United Kingdom, you will get cash comfortable home as 12 Month Loans. Assets will contact you either as cash or as a check. Loan specialists will charge financing cost contingent upon your current settled pay and reimbursement capacity. Sometimes, reimbursement residency is additionally broadened. Here, loan specialists charge extra expense for late installment. Be that as it may, paying extra sum isn’t an issue as you can dispose of every one of your inconveniences without running all over.

There is all around the energy among the general population about getting the sum specifically at the entryway with no dreary undertaking by any stretch of the imagination. What’s more, the news is valid and spread like a fire over the United Kingdom. In this way, it is awesome time for those individuals, who used to go to the entryway of the bank keeping in mind the end goal to have exchange about the loans. However, now, the time has come to desert the conventional framework for the acquisition of the earnest bucks in light of the fact that the presentation of doorstep loans UK has been influenced the impact in the finance to advertise.

In this way, the borrowers don’t need to squander their valuable time in going all over on the grounds that the sum something like 100 to 500 is specifically dispatched at the home of the candidates inside round the clock. There is no prerequisite of playing out the hassle full customs. In this way, influence a call to the appropriate loan specialist with the sensible enthusiasm to rate and get the sum as ahead of schedule as could be expected under the circumstances.

Top 5 Benefits Annuities Can Bring Except The Lifetime Income

Earning a consistent income in their retirement life is a major concern for the seniors approaching their retirement and many of them invest in different annuity insurance plans. These annuities help the insured to receive a guaranteed income for life protects from the fear of outliving their savings. Also, if a senior couple hasn’t saved enough or doesn’t have someone to support after their retirement, these policies help greatly to take care of their daily expenses and maintain a better lifestyle. However, the majority of seniors isn’t aware of all the benefits an annuity can bring. Most of them buy an annuity solely to receive a guaranteed income in their retirement life but the annuities have a lot to offer. Here, we are going to explain five more benefits of a retirement annuity plan that you might not be knowing.

Benefit to your loved ones

At times, seniors pay a long series of premiums to earn them back during their retirement but die at an early age without receiving the complete benefits. Many seniors die soon after their retirement and insurance providers keep their share of investment with themselves. But, the new additional feature allows transferring the benefits to the beneficiaries, if the insured dies early. Along with the immediate annuity plan, you can choose a guaranteed period of 10-20 years that are calculated since the time you start receiving the payments. If you opt for a 20-year guaranteed period with the annuities, your insurer will provide a series of payments for exact 20 years. You can name your spouse or kids as the beneficiary and they will receive the benefits for rest of the period, in case you die early.

Tax deferral on earnings

Most of the investments are applicable for state and federal taxes, but the investments such as interests, annuities, dividends and capital gains earn a tax-deferred status. These investments are tax-free until you withdraw the accumulated amount. The tax-deferral is similar to 401(k)s and IRAs, but there isn’t any limit on the amount and you can put any amount into the annuities that you assume enough to spend your retirement comfortably. Moreover, the minimum withdrawal criteria have more flexibility than that of to 401(k)s and IRAs.

Tax-free investment transfers

Market performs differently at a different time and an investment performing strong today may perform poorly after a certain period. Hence, investors keep transferring their investment amount form one to another fund and there are financial advisors to help with the same. Usually, these investment transfers or rebalancing are applicable for taxes but the annuity retirement plan has no such tax consequences. That means, you can rebalance your investments as per your financial advisor’s suggestion and you won’t have to pay any taxes on that.

Protection from lenders

People take different types of loans to match a better lifestyle and pay the due amount in installments. At times, people reach a stage where they only have the money enough to take care of their fundamental requirements and aren’t able to pay the loan installments. In such cases, if the lender files a lawsuit, they may lose the return on the investments made. Annuities insurance policies also help protect your investment return even if you can’t make the installments. Usually, the premiums you have made to your insurance provider, belongs to them and there are laws that restrict that money to be accessed by the lenders.

Variety of investment options

Insurers help the investors with a range of annuity options at retirement including the fixed and variable one. The first one credits a certain rate of interest on the amount you deposit while with the later, your money is invested in the stock or bonds like mutual funds and provide a return based on the market performance. Also, various insurance providers have introduced different types of floors that set a limit by which your investment value may not fall further. That means, if you have invested in a variable annuity, you return won’t fall below a certain value, despite the fluctuations in the market.

Car Financing Basics

Unless you are well off enough to pay cash for your next car purchase, you may need financing. Whether you have perfect credit or have had some credit issues, knowing the appropriate steps to follow will help you secure the best financing.

Driving the car of your dreams usually requires the ability to qualify for a loan. No matter what condition your credit is in, the following steps will help you secure the best financing available.

1. Research, research, research. There are plenty of online services to assist you in finding the car of your dreams, whether new or used. If you are looking at a new car, you might want to start with the manufacturer’s website. Be sure to compare the trim levels and option packages. There are also several auto portals that allow you to research and compare vehicles. Sites like Cars.com, Autotrader.com, and Edmunds.com. Visit several dealership websites. Most advertise their pricing and provide discounts to online buyers. If you are researching a used vehicle, always make sure you are comparing apples to apples. Prices can vary significantly on used vehicles based on trim level, options, mileage and region of the country that the vehicle is being sold in.

2. Know the condition your credit is in before you walk into a car dealership. If you have a perfect credit file, banks will be fighting for your business, but if your credit presents challenges, you should know what those challenges are and whether or not the dealership you plan to purchase from has lending sources to meet your needs. Do not fill out a credit application until you are ready to make the purchase.

3. Know the vehicle you want, but have alternatives handy! You may have your heart set on a brand new Mercedes or BMW, but your budget or credit aligns better with a used Hyundai or Kia. Regardless of your income or credit situation, you may still be able to purchase the car of your dreams, but lenders may require a substantial down payment to allow you to drive off in the car of your choice.

4. Research the going interest rates. Whether you are an 800 or 400 credit score, know the going bank rates for your credit profile. Securing the interest rate your credit deserves could save you hundreds if not thousands of dollars in interest payments.

5. Never tell a dealer the monthly payment you are comfortable paying. Negotiate your purchase based on selling price of the vehicle, not your monthly car payment. If you tell a dealer you are looking for a $350 per month payment, they will in many cases adjust the financing to meet your payment needs. This could mean providing you with extended term financing (i.e.: 72 or 84 month financing), which could cost you plenty of money over the life of the loan. Keep in mind, the longer you extend the term, longer it takes for you to build equity in your vehicle.

6. Know your budget. Most lenders have debt to income and payment to income standards that they adhere to. Those parameters vary, but many will not extend a loan to anyone whose total monthly debt obligations exceed 50% of their gross monthly income. They usually only take into consideration those debts that show up in your credit file or are disclosed on your credit application, including, rent or mortgage payment, installment loans or credit card payments. Utilities, car insurance or any other obligations that do not report to your credit file are not usually taken into consideration. In addition to debt to income (DTI), many lenders have maximum payment to incomes (PTI’s). PTI’s can range from 10% of your gross monthly income to 20% or higher, depending on the lender. If a lenders maximum PTI is 15% and an applicant’s gross monthly income is $3000, that applicant could be considered for a payment as high as $450.

7. Down payment. While lenders do not always require a down payment, your credit profile may require money down. Generally speaking, the more credit issues an applicant has, the more down payment a lender is going to require. Lenders have Loan to Value (LTV) restrictions that they adhere to. LTV is the percentage of the vehicle value that a lender is willing to finance. While some lenders will finance as much as 130% or more of a vehicles value (based on invoice, MSRP or third party information like Black Book or NADA), the LTV is dictated by ones credit profile. The more challenged ones credit profile, the lower the LTV.

8. Document, document, document. Be prepared to prove your income. If you receive a pay stub, be ready to present a recent copy. In some cases, lenders may require W2′s. If you are self-employed, keep good records. Lenders may want two years worth of tax returns. Some lenders may require bank statements, usually 3 consecutive months worth. Deposits should be consistent with stated income. If an applicant claims they make $3,000 per month, then monthly deposit activity should correlate with the stated income. Lenders may also require additional documentation like mortgage statements, credit card statements, utility bills or additional legal documents.

9. Make sure you understand all of the products or services your final contract includes. If you are buying a used vehicle, you may want to consider an extended warranty. You also may want to consider additional products or services. If you choose to purchase any of these add-on products, be aware that they will impact the monthly payment and total loan. The value that these products or services present to an individual will vary, and buyer’s personal needs should be the deciding factor as to whether or not to include these ancillary products with your financing terms.

10. There are a lot of factors to keep in mind when purchasing your next vehicle. While your next purchase may not end up being your ‘dream car’, if you follow many of the steps above, you will be one step closer to driving home the car of your choice. Do your research. Know your credit profile. You may not qualify for your first car choice, so have options. Check with local banks or credit unions to see what the going interest rates are. Don’t make your purchase based on monthly payment; base your purchase on a fair selling price. Budget yourself. Monthly payment may be important, but by financing your loan for a shorter term and paying a higher monthly installment, you will build equity much faster and possibly save thousands in interest charges. Be prepared to make a down payment. Keep good records, you may be required to prove what you state. Examine your personal needs. Do you need additional products or services that the dealership is offering? Now, go out and get the car of your dreams.