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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