The author is the managing director of Austral Mortgage, the company offer competitive rates for
auto">http://www.australmortgage.com.au">auto loan,
boat loan and
http://www.australmortgage.com.au ">investment loan
When you are in the market to purchase a new car or boat, you are generally pretty excited about the prospect, and often to speed up the process will take up the auto loan or boat loan offered by the dealer with whom you are negotiating. As a general rule this will not be the best available auto loan or boat loan and you will invariably save yourself a lot of money if you take a little extra time to search out the best auto loan or boat loan in the market. There are a number of factors that determine whether your auto loan or boat loan is competitively priced and suits your needs. Quite often the dealer looking to sell you the new car will try to make the auto loan look as attractive as possible from a cash flow perspective. This can be achieved by simply increasing the residual value of the new car or boat - the residual value is the amount that you will still need to repay to the dealer when the auto loan or boat loan expires i.e. at the end of the auto loan or boat loan term (usually 3 or 5 years but can be tailored to your requirements.) if your new car or new boat is costing you say $40,000 then the monthly repayments you will need to make under your auto loan or boat loan where the residual value is say $20000 will be considerably less than if you have a residual value of $15,000. With the lower residual value you are obviously repaying more each month under your auto or boat loan. While this means that your surplus cash flow will be less it does ensure that when you come to sell the new car or boat that you are likely to be in a position to either pay out the residual value or even possibly make a profit on the sale. This is a much better position to find yourself in that one where your residual has been higher, your monthly repayments under your auto loan or boat loan have been lower but at the end of the day when you come to sell the car or boat, you find that the sale price is not sufficient to pay out the auto loan or boat loan in full. Rather than having some extra cash in your pocket you are in fact, having to find extra money to meet the residual figure. No doubt there has been a short term benefit with the lower monthly repayments under the auto or boat loan but many buyers find themselves in difficulty at the end of the auto loan or boat loan term because they have not anticipated or made provision for a sale price lower than the residual value. While there is no doubt that money is tight for many households and individuals because of the current high interest rate environment, if you can manage a higher monthly repayment under an auto loan or boat loan then do your best to structure the auto loan or boat loan on the basis of a low residual figure. You will benefit in the long run!
- Related Videos
- Related Articles
- Ask / Related Q&A
- Mortgage Refinancing Calculator:
- Mortgage Refinance Calculator - More Tips On Using
- Mortgage Payment Calculator - Find The Best One
- Five Ways To Benefit From Free Mortgage Loan Calculators
- Mortgage Loans Calculator: Are You Paying To Much?
- UK Mortgage Payment Calculator For An Informed Decision
- Mortgage Refinance Calculator: Estimating The Savings
- Mortgage Rate Calculators - Save Thousands by Tracking Mortgage Rates
Florida FHA mortgage lender ((down to 580 FICO))
By: FHA home loan Lender | 01/12/2009For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:
Mortgage Modification Tips - How to Write a Convincing Hardship Letter
By: Jason Witts | 01/12/2009Mortgage companies do sometimes make allowances for people and can offer to revise the terms of the loan. They have the power to do whatever they want, so they will have to be convinced by what you say to them in your letter of hardship. These tips will help you write an effective letter of hardship and get you that much needed mortgage loan modification.
Mortgage Modification Tips - How to Obtain a a Loan Modification
By: Jason Witts | 01/12/2009Many people facing financial problems with mortgage payments are not sure how to obtain a mortgage modification. They do realize that if the lender could bring down the interests a bit, and prolong the term of repayment, then the equated monthly installment payable on their mortgage would come down, making it easier for them to pay the amounts every month and also help in keeping their credit score intact. But such borrowers feel diffident to approach the lender with such requests, because they
How to Modify Your Mortgage When Unable to Meet the Requirements
By: Jason Witts | 01/12/2009Seeking a loan modification seems like a daunting task to many, but it is a requirement for some who have fallen on hard times and would not like seeing a foreclosure. A modification is definitely a possible solution for such people in this position and might be the only solution they have left.
I Missed A Mortgage Payment, What Can I Really Expect From My Loan Modification?
By: Randy | 01/12/2009Despite government-led and lender-supported attempts to prevent foreclosures homeowners continue to find themselves asking, "How did this happen, and what can I do to stop the bleeding."
The Advantages of a Mortgage Website
By: Loan Site Plus | 01/12/2009There are many loan officers out there who are sick and tired of low-commissions, office politics, too restrictive a time-schedule, etc. There are hundreds of reasons they want to get out of, so the real question may be, how can they go out on their own and start their own mortgage company?
New Stimulus Mortgage Refinance Options from Bank of America
By: MPetrone | 01/12/2009Bank of America is now offering homeowners new refinancing and mortgage modification options thanks to President Obamas stimulus plan. This $75 billion stimulus will allow banks and lenders to help homeowners in all types of bad situations. Bank of America is now offering these new plans to homeowners. Here are some things you should know.
Wisconsin Mortgage Refinancing Benefits
By: Peter Thompson | 01/12/2009If you own your own home, you know that your home is a prized possession and your greatest long term investment, but it is also your biggest debt. You can improve your financial situation and lower your mortgage payments by managing this debt and using your home equity in a way that works for you. So when does it make sense to refinance your mortgage?
Graphic Organizers and Learning
By: Lina Smith | 04/04/2009 | ComputersLearning is a very personal thing – for some people it comes very easily and they can learn using traditional methods. Others can struggle or find that they need to use different techniques to be able to learn effectively. With this in mind, teachers and other learning professionals have developed various learning methods and techniques to enhance the learning experience of both young and old alike. One of these methods is the use of graphic organizers.
Bipolar Disease Facts and Myths
By: Lina Smith | 24/03/2009 | HealthRecently there has been a lot of media attention in the press and on television about bipolar disease as more people are starting to be diagnosed with the illness. Many people also believe that bipolar disease is a new psychological illness that has only just been discovered in the past 5 – 10 years but this is incorrect. Previously bipolar disease was known as manic depression and many people may still call it this and that is where some of the confusion can stem from. There are also a lot of m
What is bipolar disease?
By: Lina Smith | 24/03/2009 | HealthBipolar disease is a type of psychiatric condition which can severely affect the life of anyone suffering from it, and the lives of those close to them. Mood plays a key role in bipolar disease as the condition presents itself in extreme mood swings. Those people who have a diagnosis of bipolar disease often find that they experience tremendous highs and crushing lows, which occur without any warning. These exaggerated moods are interspersed with times when the bipolar disease sufferer feels qui
How to Live with Bipolar Depression
By: Lina Smith | 24/03/2009 | HealthDepression can be incredibly hard to live with; it permeates every part of a person’s life and leaves them feeling very low and unable to cope with day to day life. Most people will have an encounter with depression during their life and most people cope with it and move on without any problems. For people with bipolar depression life can be quite different.
Finding out More About Depression Treatment
By: Lina Smith | 24/03/2009 | HealthDepression can be very difficult to live with, it can leave you feeling as though you have nothing to look forward to, every tasks seem impossible to complete and you can find it hard to get up in the mornings. Everyone feels depressed from time to time but when it gets so bad that you are struggling to cope it is time to find out more about depression treatment.
Bipolar Treatment – What to Expect
By: Lina Smith | 24/03/2009 | HealthThere has been a lot of controversy surrounding bipolar disorder and bipolar treatment that sufferers can expect to receive. One of the reasons for this is too many people feel equipped to talk about people who are bipolar without actually fully understanding the types of bipolar treatment that are available. In fact talk to most people and ask them to name a bipolar treatment and it is likely that they will reply with a one word answer such as “Prozac”. Whilst Prozac can and is used to treat th
Bipolar Symptoms to be Aware of
By: Lina Smith | 24/03/2009 | HealthBipolar disorder is a mood effecting illness that can be very problematic for those who suffer from it, and millions of people do. Many people do not even realise that the way they are feeling is actually a medical condition until the find out about bipolar symptoms and recognises that they are in fact bipolar. Here are the depression and mania bipolar symptoms to look out for if you suspect you are bipolar or someone you know is.
Have you Been Diagnosed as Being Bipolar?
By: Lina Smith | 24/03/2009 | HealthBeing diagnosed with an illness can often bring a sense of relief. It can help a person to make sense of the way they have been feeling for some time and draw a line under the frustration of not knowing what their condition was. At the same time though it can also bring up a whole host of new questions and worries, and this certainly happens when a person is diagnosed as being bipolar.