Monday, April 02, 2007

How to Gain the Advantage in Used Car Auctions

By Joseph Ducat

A public car auctions can be a good opportunities for getting a great deal on a used auto. But it is important to be prepared before entering such an auction if you want to have a significant advantage. Let me share some nuggets of knowledge with you about public car auctions, and you just may walk out of that auction lot with a real bargain on a quality used car.

Start off by learning certain facts concerning public car auctions. These open auctions are typically held by the government or police, or by specialized auction lots. The vehicles they sell may be cars that have been seized or repossessed, or else government surplus. These cars are sold “as is” without warranties or guarantees. It won’t be possible for you return a car after you buy it, and it would be very difficult to get reimbursed. So take care not to end up buying something of poor quality.

You definitely should attend the public auto auction’s preliminary inspection period, which may be a day or two before the auction--be sure to find out the proper schedule. This inspection period will provide you with your best chance to view the cars closely and even get behind the wheel of one and start it. You will not, however, be able to test drive any of the cars.

One thing you should do is take down the Vehicle Identification Number of the auto you plan to bid on. You can run the Vehicle Identification Number on Carfax to track down its vehicle history report, for a fee. This will allow you to learn whether the used car has a clean title, how many people have owned it, and a few details of its service history.

Bring with you a copy of the Kelley Blue Book or some other auto guide when you go to the auction. The guide will tell you the trade-in values for most car models and will help you to determine if a bid is fair or if it is too high. Note that besides the amount of your bid, you will also have to add a buyer’s premium of 5% to 10% of your bid, should you win the vehicle. On top of that, you may have to shell out a registration fee to participate in the auction.

Thinking of buying a car from a public auto auction? You can find helpful information on getting good deals at

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Mortgage Refinancing: Understanding Mortgage Jargon Will Save You Money

By Louie Latour

If you are considering mortgage refinancing for any reason, doing your homework and learning the lingo will save you thousands of dollars. Much like used car salesman, mortgage companies and brokers inflate their interest rates based on how knowledgeable they perceive you to be. Understanding how retail mortgage markup works and using the lingo correctly will help you avoid overpaying for your new mortgage. Here are several tips to help outsmart your mortgage company or broker to avoid paying too much when mortgage refinancing.

Mortgage refinancing can be an overwhelming process for any homeowner. Not only are you bombarded with terminology, you have to worry about being taken advantage of by your mortgage company or broker. Mortgages are commodity products just like used cars. Just like purchasing a used car, when you take out a mortgage loan there is always someone trying to make a buck by overcharging you. The problem is instead of a buck, this person will make thousands of dollars at your expense, if you let them.

The most important term you need to learn before mortgage refinancing is Yield Spread Premium or YSP. When a mortgage retailer (all mortgage companies and broker are retail vendors for wholesale mortgage lenders except for banks) gives you a written guarantee for a mortgage interest rate, this written guarantee includes retail markup, or YSP. Here’s how Yield Spread Premium works.

When you apply for a mortgage loan with your retail mortgage company or broker, the wholesale lender will qualify you for a specific mortgage interest rate. The retail mortgage company will provide you a separate written guarantee with their company for a higher interest rate. The guarantee you receive is not a guarantee with the wholesale lender and the difference between your interest rate and the one you qualified is YSP or retail markup.

Why do mortgage companies inflate your interest rate? Just like used car salesman, the more they can overcharge you for the new mortgage, the higher their commission will be from the wholesale lender. Here’s an example how YSP works. Suppose the mortgage broker quoted you an interest rate of 6.5%. What you don’t know is that the wholesale mortgage lender qualified you for 6.0% and the broker marked up your interest rate .5%. For each .25% the broker overcharged you, that person receives 1 point as a bonus from the lender. One point is the equivalent of 1% of your loan amount. If you borrow $200,000 for mortgage refinancing, that broker receives your origination fees plus a $4,000 for ripping you off.

How can you avoid being ripped off when mortgage refinancing? Learn how to recognize Yield Spread Premium and you can avoid paying it. To learn advanced strategies for mortgage refinancing without paying YSP, register for a free mortgage guidebook that includes a comprehensive glossary of mortgage jargon.

To get your free mortgage guidebook visit using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit

Claim your free mortgage refinance information guide today at:

Mortgage Refinance Information

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Wednesday, March 21, 2007

Tips For Buying The Best Value Used Cars

By Rich Beasley

There are a lot of possibilities for people when buying cars, especially used cars। The problem for most is that we are not all trained mechanics. Where do you look? How can you be sure you are getting a good deal and not a heap of junk? Finding used cars is as simple as either going to used car dealerships, some of which run out of new car dealerships, browsing through car trading magazines or simply just getting on the Internet.

Word of mouth is good, but at the end of the day you must do your research। Firstly, knock your list of choice cars down to four. Try doing a blue book check with to check current car values for varied yearly makes. Plan a budget for the amount you are willing to spend. You may also look at Internet boards such as or even

Always take someone who knows about used cars and buying cars to see the prospective car you are looking at। Most importantly, budget for a car inspection which should be done by a reputable licensed mechanic, one who is familiar with the type of car you want to buy. You can cut costs by choosing a mechanic that you will use in the future for tune-ups and other servicing requirements as they can and will give you a specially reduced priced for the inspection.

If using a mechanic’s inspection capabilities is a bit too pricey then you have to have all the records for the used cars you are going to buy। These records must give an accurate description of all work done on the vehicle, all parts used, especially to ensure that the timing belt has been changed in the last 40k miles of driving. At the end of the day it is down to trusting the seller. Don’t be rushed into buying cars because the seller has to get rid of the used car quickly. Always know why the used car is being sold.

Rich Beasley works for a well known computer company in Los Angeles. You can visit his latest website concerning his passion cars and has articles about Used Cars and other car related topics।
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Getting the Most from Your Used Car Purchase

By Gregory Chapman

Being informed as a used car buyer is the best way to maximize the benefits you receive from your purchase। Like every car buyer, you want a reliable vehicle that meets the demands of your lifestyle, and probably one that looks good doing it. But being a savvy car buyer can give you advantages that far outweigh transportation and status; you just have to do your homework and use the right kind of financing to improve your credit.

Know what to expect। Trading in your current car is a convenient way to reduce the amount you will owe on your used car purchase and to lower your cash down payment amount. Before you step foot on the used car lot, research the approximate value of your trade-in with a reputable company, such as Edmunds or Kelley Blue Book. The trade-in value will be lower than what you would expect by selling the car outright, so make sure to look up the appropriate value. When determining the trade-in value, be realistic about the condition of your vehicle. Are there stains on the seats? Are latches or windows broken? Just because you love the car does not mean it fits the bill for an “excellent” rating.

It helps to be aware of steps you can take to maximize the trade-in value you are offered by the dealer। Ideally, you have already been keeping records of the car’s maintenance history, along with the dates and mileage of each service performed. Providing accurate records shows the appraiser that you have been diligent in maintaining the car, and will positively impact its trade-in value.

Know your lender। Many used car dealerships offer financing to make your purchase more affordable. Even with “bad” credit, you can still get financed by working directly with a dealer who offers true in house financing. It is important to know who is actually financing your car, and to ensure that you are not in fact damaging your credit further by making the purchase. Multiple inquiries on your credit drive your score down. Ask the dealer if the financing is actually in-house, or if it is outsourced to a bank or other lender.

The best decision you can make is to use this opportunity to rebuild your credit at the same time। Predetermine the monthly payment you can afford on your budget, and do not overspend no matter what. All you have to do to raise your credit score is make all of your payments on time, and be sure to only purchase from a dealer who reports to the credit bureau. By following this advice, you are on the road to better credit, in a better set of wheels.

About the Author: Greg Chapman, of Greg Chapman Motors, is a leading provider of used cars, trucks, and SUVs. Chapman motors has offered reliable used cars for sale in Austin and the surrounding area since 1959. For more information please visit
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