How Much Car Should You Try To Afford?

You've been bitten by the new car bug. Or perhaps you're just so tired of
your current car; you can hardly stand to drive it anymore.

You're about to embark on the research phase of the car buying experience
(which is the right course of action). But, before you even begin pointing,
clicking, and eyeballing these shiny new toys; take a step back and
determine just how much car you can afford to own and operate.

The conventional wisdom is not more than 20% of your monthly income. your
net (take home) pay. not your gross pay. And by the way, while you're doing
your figuring on this 20% monthly cash outlay; make sure you include all the
cars you own.

Regardless of whether you don't even pay rent or own your home outright,
stand firm on the 20% rule.

On your way to calculating your 20% budget, in addition to the purchase
price, be sure to factor in any down payment and/or your trade-in value. The
bottom line you'll finance is the bottom line.

Of course, the more money you put down the more car you can buy and still be
under the 20% rule. Keep in mind, the more money you put down doesn't affect
how much you actually pay and cars are severely depreciating assets. not
investments.

Once you get close to determining your 20% number, you'll need to know the
going interest rates you'll be paying on your borrowed money. And since
we've now broached borrowing money and interest rates. you should also plan
on getting a copy of your credit report while you're at it.

Another important aspect to consider is the costs of ownership involved with
the car. Things such as fuel, maintenance, and insurance premiums can run up
some hefty numbers on you in addition to your monthly payment.

Maintenance and insurance costs are somewhat related, because insurance
companies take into account the cost to repair a vehicle as part of their
premium calculation. So, if you are looking at a car that is expensive or
difficult to repair, you're probably also looking at higher insurance
premiums as well.

So, even though you should keep the 20% rule firmly in mind as your are
crunching your numbers, don't overlook all the other monthly expenses
associated with the car you are considering.

Taking the time to get all of your financial and budget numbers in place
before you seriously begin looking at your intended makes and models will
serve as a good financial rudder for you during the car buying process and
make for much wiser purchase.

About The Author: Jeff Neilan's car dealer experience offers insightful
http://www.acarbuyersguide.com that save you time and money. Be sure to
visit www.acarbuyersguide.com for car financing tips, ownership costs, &
more.

What Is A Home Warranty?

If you are considering buying a home, condo or townhouse, then you should
know about home warranty plans.

The term Home Warranty is used to describe a variety of products. In some
situations, new homebuilders use the term to describe the standard coverage
they provide on items in a new home. In other contexts, it is used to
describe an insurance policy purchased by a homebuyer or home seller to
cover items on a resale home (not new construction).

In this article, we are referring to the later type of policy -a policy
purchased by a homebuyer or home seller for a resale home. In this context,
a home warranty is a service contract to maintain or repair, when needed,
certain items in a home, condominium or townhouse. This type of warranty is
an option for buyers wanting more coverage beyond items normally covered in
a homeowner's insurance policy. Home sellers sometimes purchase this type of
policy and offer this as an incentive to homebuyers to purchase their home.

If a repair is needed during a covered period for items that are covered,
then the homeowner simply contacts the Warranty Company to request service.
The Warranty Company will send out a qualified professional to repair the
item. The homeowner will usually have to pay a small deductible for a
service call, and the warranty company covers the rest.

The home warranty industry is a competitive business and items covered and
costs vary from company to company. In general, many home warranty policies
cover: plumbing, heating, electrical system, water heater and major
appliances, such as range/oven/cooktop, dishwasher, and garbage disposal.
Policies are typically issued in one-year intervals, with the option to
renew at the end of the year. The cost of a policy varies from $200 per year
for a small home, condo or townhouse, up to $1000 or more for large
properties with expanded coverage.

So should you get a home warranty? The answer is it depends on the condition
and age of the home, your financial situation, and your level of risk
tolerance. A warranty may be a good idea if you are buying an older home
that is in poor condition.
However, if you are buying a newer home in excellent condition, then you may
decide that there is less risk.

In making your decision, be sure you carefully evaluate your financial
situation and determine if you have the means to pay for a major repair
should some costly item in the home need repair or replacement. You should
also carefully evaluate your homeowner's insurance policy to determine what
items are already covered. A good home inspector can provide you a through
evaluation about the condition of a home and it's major systems before you
sign a home purchase contract. This information will help you decide on
whether or not to purchase a warranty policy.

About The Author: http://www.sdhomedatabase.com
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