If you're in the market for a new vehicle did you know you have the option to buy a bank owned vehicle? Well, you can and you can save a lot of money while doing it. These bank owned cars can save consumers thousands of dollars. For some reason it seems a lot of people only consider new and used cars when they are shopping for a new vehicle. Completely avoiding bank owned vehicles and potentially costing them lots of money. If you don't mind putting in a little extra work and research then a repossessed car can be the perfect choice for you. Typically, you can see savings of well over a thousand dollars when you shop for bank owned vehicles. The most common place to find these gems is at auctions.
After reading this article I'm confident you too will be convinced that a repo car is the way to go. Furthermore, there are thousands of great cars, SUVs, and trucks being repossessed as we speak. Do you know where they are headed? To auctions to sold a below market values and hopefully save you the consumer money during the process.
The most common place these vehicles come from is people who have defaulted on their car loan. Another place to buy vehicles like these is government auctions where they are usually seized from criminals. Due to the high costs of storing these vehicles and depreciation, they are willing to get rid of them for almost whatever is offered. This can mean huge savings for you.
In addition, buying one of these vehicles can also enable you to sell the vehicle at a profit right away. Usually, you buy repossessed cars so far below their actual value you won't ever have to worry about being upside down or having negative equity. Purchasing a new vehicle will almost guarantee depreciation as soon as you take it off the lot. Therefore, a repo car can even save you up to a few thousand dollars depending on the price range.
In some cases these cars can fetch as little as two thirds of the retail value at an auction. These cars auctions can be very tricky so you should try and go with someone experienced. Generally, you will only see car dealers at these auctions and the public aren't allowed in. For this reason you should try and find a car dealer to help purchase a repossessed vehicle for you at a minimal broker fee. A fair commission on a transaction like this should run around $500.
Now that you know a little more about how much money a bank owned car can save you, it's time to get out there and find a deal. Auto dealers have made large profits off these repo cars buying them well below value and selling them for retail.
Sunday, August 1, 2010
Writing Off Vehicles as Tax Deductions
You've heard it a hundred times: That shiny new car your buddy just bought? It doesn't really cost him anything. He writes off the car as a tax deduction.
Your first thought is usually, "That can't be right." Your second thought is, 'I got to figure out how to enjoy that loophole."
But what does the law say? And what are the rules for writing off vehicles? It turns out that you can write off the cost of buying and using a car if you're self-employed and use your vehicle in your business. Specifically, you can probably deduct the business portion of your vehicle expenses on your business tax return.
But this deduction is trickier than most people realize. Here's the first big thing that goofs many people up. You need substantiation to prove your business use. Ideally, in fact, the Internal Revenue Service wants you to keep a log of your business miles, your commuting miles, and your personal miles.
With this information, you can then either deduct an amount equal to the business miles times a standard per-mile rate of roughly $.35 or $.40 a mile (depending on the year)... or you can deduct the percentage of your vehicle expenses equal to the percentage that your business miles represent.
Note that only your business miles-and not your commuting miles or personal miles are deductible.
For example, if your business use equals 5,000 miles, personal use equals 3000, and commuting equals 2000 miles, your total miles for the year equal 10,000. Business miles as a percentage of total miles equal 50% because 5,000 divided by 10,000 equals .5 or 50%.
In this example, you could therefore deduct 50% of your fuel, 50% of your insurance, 50% of your maintenance and repairs, 50% of the car loan interest, 50% of the depreciation, and so on, as a business deduction. This means you can't ever deduct all the costs of owning and running vehicle-only the business use of a vehicle.
If you don't have exact records about your business use, you can sometimes use good sampling. For example, if you keep a good appointment calendar of your business activities, one popular tax reference suggests that you can look at the total business, personal and commuting miles driven during one week each month. Then, you can average this data to get good weekly estimates of your business, personal, and commuting miles. Finally, you can multiple these weekly estimates by 52 (the number of weeks in a year) to get reasonable estimates of your business, personal and commuting miles.
But before you go out and buy a new luxury auto, you need to know there's another complication. Congress limits in most cases the amount of depreciation or lease rental that you can include in your vehicle expense calculations. The rules are a bit tricky, but essentially, for purposes of vehicle depreciation and lease payments, you only get to look at the first $17,000 (roughly) of vehicle cost. In other words, if you buy a $60,000 vehicle and your friend buys a $15,000 vehicle, you may both have the same business depreciation expense-even though your vehicle costs four times what your friend's does.
One other related point: You may have heard about the sport utility vehicle loophole. This SUV loophole really does exist. Specially, the luxury auto limits mentioned above don't apply to sport utility vehicles that weigh more than 6,000 lbs. Note that Congress partially closed that loophole in 2004, however, by saying that a special, super-accelerated form of depreciation called Sec. 179 depreciation couldn't be used to write off all of the cost of an expensive SUV in the year the vehicle is purchased.
Your first thought is usually, "That can't be right." Your second thought is, 'I got to figure out how to enjoy that loophole."
But what does the law say? And what are the rules for writing off vehicles? It turns out that you can write off the cost of buying and using a car if you're self-employed and use your vehicle in your business. Specifically, you can probably deduct the business portion of your vehicle expenses on your business tax return.
But this deduction is trickier than most people realize. Here's the first big thing that goofs many people up. You need substantiation to prove your business use. Ideally, in fact, the Internal Revenue Service wants you to keep a log of your business miles, your commuting miles, and your personal miles.
With this information, you can then either deduct an amount equal to the business miles times a standard per-mile rate of roughly $.35 or $.40 a mile (depending on the year)... or you can deduct the percentage of your vehicle expenses equal to the percentage that your business miles represent.
Note that only your business miles-and not your commuting miles or personal miles are deductible.
For example, if your business use equals 5,000 miles, personal use equals 3000, and commuting equals 2000 miles, your total miles for the year equal 10,000. Business miles as a percentage of total miles equal 50% because 5,000 divided by 10,000 equals .5 or 50%.
In this example, you could therefore deduct 50% of your fuel, 50% of your insurance, 50% of your maintenance and repairs, 50% of the car loan interest, 50% of the depreciation, and so on, as a business deduction. This means you can't ever deduct all the costs of owning and running vehicle-only the business use of a vehicle.
If you don't have exact records about your business use, you can sometimes use good sampling. For example, if you keep a good appointment calendar of your business activities, one popular tax reference suggests that you can look at the total business, personal and commuting miles driven during one week each month. Then, you can average this data to get good weekly estimates of your business, personal, and commuting miles. Finally, you can multiple these weekly estimates by 52 (the number of weeks in a year) to get reasonable estimates of your business, personal and commuting miles.
But before you go out and buy a new luxury auto, you need to know there's another complication. Congress limits in most cases the amount of depreciation or lease rental that you can include in your vehicle expense calculations. The rules are a bit tricky, but essentially, for purposes of vehicle depreciation and lease payments, you only get to look at the first $17,000 (roughly) of vehicle cost. In other words, if you buy a $60,000 vehicle and your friend buys a $15,000 vehicle, you may both have the same business depreciation expense-even though your vehicle costs four times what your friend's does.
One other related point: You may have heard about the sport utility vehicle loophole. This SUV loophole really does exist. Specially, the luxury auto limits mentioned above don't apply to sport utility vehicles that weigh more than 6,000 lbs. Note that Congress partially closed that loophole in 2004, however, by saying that a special, super-accelerated form of depreciation called Sec. 179 depreciation couldn't be used to write off all of the cost of an expensive SUV in the year the vehicle is purchased.
Vehicles That Seat Seven People
There are quite a few vehicles to choose from that seat seven people, the problem is deciding on what car has the best value in buying. With so many choices, the best way to narrow down the choices is by reading personal reviews from customers who actually own individual vehicles and have tested them out for a long time, and that is where the 2009 Toyota RAV4 has come to be one of the best seven seated vehicles. This SUV is excellent for the family because it is comfortable and easy to drive, as well as being very spacious. Handling is very important when it comes to the quality of a vehicle, the RAV4 allows the driver to feel completely safe when they are behind the wheel.
Often times in a vehicle that has second and third row seats, they are crowded together and can often cause leg muscles to strain for any passengers that are sitting in the back seats. However, the RAV4 comes with roomy back seats to ensure that there will be no leg cramping involved. Another great feature of this vehicle is that the build quality is excellent along with high crash test scores which can ensure the driver and all passengers that when they are riding in the vehicle they can feel safe regardless of the situation. The key to an enjoyable experience while managing to seat seven people is not how fast or powerful the vehicle is, but how comfortable the ride is as well as safety ratings with having that many people at risk on the road. That is why the 2009 Toyota RAV4 holds the ground as an incredible vehicle to drive and ride in for the entire family.
Often times in a vehicle that has second and third row seats, they are crowded together and can often cause leg muscles to strain for any passengers that are sitting in the back seats. However, the RAV4 comes with roomy back seats to ensure that there will be no leg cramping involved. Another great feature of this vehicle is that the build quality is excellent along with high crash test scores which can ensure the driver and all passengers that when they are riding in the vehicle they can feel safe regardless of the situation. The key to an enjoyable experience while managing to seat seven people is not how fast or powerful the vehicle is, but how comfortable the ride is as well as safety ratings with having that many people at risk on the road. That is why the 2009 Toyota RAV4 holds the ground as an incredible vehicle to drive and ride in for the entire family.
iPhone Car Kit - Using an iPhone While Driving
The iPhones are considered emotionally attached iconic devices. If you are attached to this phone then you can never stay away from it even when you are driving. You can even listen to the music that is stored inside the iPhone when you are driving with the help of certain accessories that are encompassed inside the iPhone car kit.
The most important issue that everyone need to understand while using an iPhone while driving is that the operation needs to be free from any distractions. The car kits are helpful in doing so. They are often hands free and therefore you can operate them much easily. The various functions that are performed with the help of a kit inside a car are as follows:
Connecting the iPhone with the music system inside the car
Holding the phone firmly from falling or moving
Charging the phone
Playing music that is stored in the phone
Helping you attend or make calls while driving
Making use of any application that is present inside your iPhone car kit.
There are various manufacturers who have been producing kits for the cars but very few have been successful and economical. In this kit there is a remote to control the phone and it is wireless. This remote control is either on the dashboard of the car or on the steering wheel of the car making it easier for the driver. The advantage of this remote control is that:
They have very few buttons to help you in a distraction free operation of the iPhone
They include all the basic functions that are required like attending a call, hanging up and making a conference call etc
They make the operation of the iPhone hands free
This iPhone car kit with the help of multiple softwares makes the call making function very easy. They extract the contacts list from the phone and embed them with a speech synthesis technology. This will let you know who is calling you without having the need to look into the screen of your phone.
The most important of all these features is the availability of the provision to connect the phone with the music player inside the car with the help of a cable. This helps you listen to the music that is stored inside your mobile phone without having to disable the other function of the kit.
The advantage of having an iPhone car kit is that:
· They make your mobile completely compatible with your car
· They help the reduction of distraction element while driving
· They help you in the call making and receiving process adequately
· They give the best quality music with the help of a very simple connection procedure even though your car might not possess the provision for the car mount.
The most important issue that everyone need to understand while using an iPhone while driving is that the operation needs to be free from any distractions. The car kits are helpful in doing so. They are often hands free and therefore you can operate them much easily. The various functions that are performed with the help of a kit inside a car are as follows:
Connecting the iPhone with the music system inside the car
Holding the phone firmly from falling or moving
Charging the phone
Playing music that is stored in the phone
Helping you attend or make calls while driving
Making use of any application that is present inside your iPhone car kit.
There are various manufacturers who have been producing kits for the cars but very few have been successful and economical. In this kit there is a remote to control the phone and it is wireless. This remote control is either on the dashboard of the car or on the steering wheel of the car making it easier for the driver. The advantage of this remote control is that:
They have very few buttons to help you in a distraction free operation of the iPhone
They include all the basic functions that are required like attending a call, hanging up and making a conference call etc
They make the operation of the iPhone hands free
This iPhone car kit with the help of multiple softwares makes the call making function very easy. They extract the contacts list from the phone and embed them with a speech synthesis technology. This will let you know who is calling you without having the need to look into the screen of your phone.
The most important of all these features is the availability of the provision to connect the phone with the music player inside the car with the help of a cable. This helps you listen to the music that is stored inside your mobile phone without having to disable the other function of the kit.
The advantage of having an iPhone car kit is that:
· They make your mobile completely compatible with your car
· They help the reduction of distraction element while driving
· They help you in the call making and receiving process adequately
· They give the best quality music with the help of a very simple connection procedure even though your car might not possess the provision for the car mount.
What to Look For In a Used Car Loan
Many young people could not afford their first car if it weren't for the availability of used car financing. They just don't have the cash to buy the car outright. Fortunately, obtaining such financing at very reasonable interest rates is not difficult. You just need to do your research and follow these simple steps.
As you're paging through the used car ads you're bound to come across what looks like absolutely fantastic car loan availability from the car dealers themselves. You'll see zero percent offers, low payment offers that seem too good to be true. Of course, they are! These ads are meant to mislead you, make you come in and apply, and end up getting a loan at 10 to 18 percent over the standard rates! Yes, interest-free offers are available, but only if you have perfect credit. Most used car buyers do not fall into this category. In general, used car loan interest rates exceed those of new cars by several percentage points on average.
One way to mitigate this cost is to get your loan through a dedicated finance company rather than through the car dealership or your normal bank. These institutions generally have more liberal lending policies. Any lender, however, will require proof of the value of the car, and a 20 percent down payment. This is normal and should not be regarded as a suspicious request. Both these regulations are designed to give the lender a safety margin, should the loan go into default. If that happens, the lender's only recourse is in the collateral, which is the car. Therefore, they naturally have a vested interest in knowing that you did not pay too much for the car, and that at least 20 percent of its value holds even if the default happens immediately. This is actually an advantage to you, as well. There is someone looking over your shoulder at the transaction, making sure it is a respectable deal and price for the vehicle in its current state and condition.
Before you apply for your financing, run a credit check on yourself. This will help you determine what you should be able to afford and should be offered. Sometimes you may realize before you really get started that a used car loan isn't affordable for you. This could be because of a low credit score, inability to meet the down payment requirements, or insurance concerns. Knowing this going in is important, because online institutions will tempt you with one-day offers. Don't fall for it! Despite their dire warnings of offer expiration, these lenders will be there tomorrow with another fantastic offer for you! Wait until you are comfortable with the amount and the terms. It is not worth the devastation a loan default can play on your credit history to take it now when you're unsure you can repay it as required.
Another caution with car loans and any other financial transactions - keep all your paperwork in good order. If you've obtained the loan online, print out a copy of everything and store it in a safe place. Never sign anything you don't understand completely. Ask questions until you understand. Talk to a third-party professional to get a different point of view. It's your responsibility to protect your own interests. Don't expect the lender to do it for you. This is the kind of thinking that led to the current mortgage crisis in the United States.
One final piece of advice: As soon as you get your used car loan, look into refinancing it, especially if you weren't able to get a zero to three percent interest rate. Refinancing sites will usually have calculators on them so you can calculate your total savings. If you can get a percentage point under your current contract, it's worth it.
As you're paging through the used car ads you're bound to come across what looks like absolutely fantastic car loan availability from the car dealers themselves. You'll see zero percent offers, low payment offers that seem too good to be true. Of course, they are! These ads are meant to mislead you, make you come in and apply, and end up getting a loan at 10 to 18 percent over the standard rates! Yes, interest-free offers are available, but only if you have perfect credit. Most used car buyers do not fall into this category. In general, used car loan interest rates exceed those of new cars by several percentage points on average.
One way to mitigate this cost is to get your loan through a dedicated finance company rather than through the car dealership or your normal bank. These institutions generally have more liberal lending policies. Any lender, however, will require proof of the value of the car, and a 20 percent down payment. This is normal and should not be regarded as a suspicious request. Both these regulations are designed to give the lender a safety margin, should the loan go into default. If that happens, the lender's only recourse is in the collateral, which is the car. Therefore, they naturally have a vested interest in knowing that you did not pay too much for the car, and that at least 20 percent of its value holds even if the default happens immediately. This is actually an advantage to you, as well. There is someone looking over your shoulder at the transaction, making sure it is a respectable deal and price for the vehicle in its current state and condition.
Before you apply for your financing, run a credit check on yourself. This will help you determine what you should be able to afford and should be offered. Sometimes you may realize before you really get started that a used car loan isn't affordable for you. This could be because of a low credit score, inability to meet the down payment requirements, or insurance concerns. Knowing this going in is important, because online institutions will tempt you with one-day offers. Don't fall for it! Despite their dire warnings of offer expiration, these lenders will be there tomorrow with another fantastic offer for you! Wait until you are comfortable with the amount and the terms. It is not worth the devastation a loan default can play on your credit history to take it now when you're unsure you can repay it as required.
Another caution with car loans and any other financial transactions - keep all your paperwork in good order. If you've obtained the loan online, print out a copy of everything and store it in a safe place. Never sign anything you don't understand completely. Ask questions until you understand. Talk to a third-party professional to get a different point of view. It's your responsibility to protect your own interests. Don't expect the lender to do it for you. This is the kind of thinking that led to the current mortgage crisis in the United States.
One final piece of advice: As soon as you get your used car loan, look into refinancing it, especially if you weren't able to get a zero to three percent interest rate. Refinancing sites will usually have calculators on them so you can calculate your total savings. If you can get a percentage point under your current contract, it's worth it.
Make Some Easy Money by Buying a Car For $1000 Bucks and Parting it Out
Lots of people turn to cars under $1000 bucks looking save a buck or two. Here is a quick guide on how to make some cash (that you can use to buy more rusty boxes on wheels of course)
Plain and simple part cars out.
Step 1. Buy a car. This is pretty much the most crucial step. If you are actually doing this to make money and not just salvaging that blown up buick sitting in your driveway than you need to find a car that people want to buy parts for. Ebay is pretty much your friend here and my suggested avenue for selling most parts. In the past I have watched people make money from a variety of cars (my roommate used to finance his workshop with parted out cars) One in particular was a 1994 Honda Accord. Thats right you don't need to buy a 1939 Alfa Romeo (although that would be sweet) or anything super rare to get good money for parts.
Often times finding a car that is pretty common can be a good thing but be sure to check ebay for the prices certain parts are going for before hand and let that be your guide in making your purchase. Now when it comes to buying the car usually the ones that don't run will be your best deals and you may even get a freebie if your lucky. (few people want dead cars in their driveway) Obviously the less you pay the more you profit.
Step 2. Tear it apart. The key here is research and time management. Everybody wants to pull the engine and trans etc., but often times it may not even be worth it. Check out ebay or where ever you plan on selling and ask yourself is what these parts are selling for worth my time? Would I actually want to crate and ship this? Is anybody actually bidding on this crap? All good questions that need answers. Honestly it tends to be the nickel and dime parts that can really make you some money. Shifters, speedometers, sensors, mirrors, sun-visors, etc. these parts take seconds to remove and if they are in good shape people are often willing to pay a pretty penny for them, because the only other option for parts like these tends to be the dealers who charge an arm and a leg.
Step 3. Sell The Parts. Once you have determined what you want to sell and pulled the stuff off its time to start selling. I like ebay but swap meets, forums, and other sources may work better for you. If you have done your research you know where to find the people who see value in the parts you have pulled.
Step 4. Scrap the rest. Always factor in that you can prolly get $100-$300 bucks for the rest of the pile at the scrap yard. Usually you will want to haul it there yourself and will probably need to pull the tires and gas tank. I would even consider it a good rule of thumb to try and not pay more for the car than you can scrap it for. This helps you avoid any kind of loss.
And there you have it. Four easy steps to make some quick money and make your neighbors hate you.
Plain and simple part cars out.
Step 1. Buy a car. This is pretty much the most crucial step. If you are actually doing this to make money and not just salvaging that blown up buick sitting in your driveway than you need to find a car that people want to buy parts for. Ebay is pretty much your friend here and my suggested avenue for selling most parts. In the past I have watched people make money from a variety of cars (my roommate used to finance his workshop with parted out cars) One in particular was a 1994 Honda Accord. Thats right you don't need to buy a 1939 Alfa Romeo (although that would be sweet) or anything super rare to get good money for parts.
Often times finding a car that is pretty common can be a good thing but be sure to check ebay for the prices certain parts are going for before hand and let that be your guide in making your purchase. Now when it comes to buying the car usually the ones that don't run will be your best deals and you may even get a freebie if your lucky. (few people want dead cars in their driveway) Obviously the less you pay the more you profit.
Step 2. Tear it apart. The key here is research and time management. Everybody wants to pull the engine and trans etc., but often times it may not even be worth it. Check out ebay or where ever you plan on selling and ask yourself is what these parts are selling for worth my time? Would I actually want to crate and ship this? Is anybody actually bidding on this crap? All good questions that need answers. Honestly it tends to be the nickel and dime parts that can really make you some money. Shifters, speedometers, sensors, mirrors, sun-visors, etc. these parts take seconds to remove and if they are in good shape people are often willing to pay a pretty penny for them, because the only other option for parts like these tends to be the dealers who charge an arm and a leg.
Step 3. Sell The Parts. Once you have determined what you want to sell and pulled the stuff off its time to start selling. I like ebay but swap meets, forums, and other sources may work better for you. If you have done your research you know where to find the people who see value in the parts you have pulled.
Step 4. Scrap the rest. Always factor in that you can prolly get $100-$300 bucks for the rest of the pile at the scrap yard. Usually you will want to haul it there yourself and will probably need to pull the tires and gas tank. I would even consider it a good rule of thumb to try and not pay more for the car than you can scrap it for. This helps you avoid any kind of loss.
And there you have it. Four easy steps to make some quick money and make your neighbors hate you.
Driving Customers to You - Your Car as a Marketing Vehicle
You can turn your vehicle into a rolling advertisement. Costs start at just a few dollars, and you can put your business name, slogan, phone number and web site URL in front of thousands of potential customers while you are driving along the freeway, stuck in traffic or even while you are parked. Here are some of the best ways to use your vehicle as a marketing tool.
Bumper stickers are so inexpensive that you may want to print enough for employees, friends, family members, customers and others. Publisher Susan Sabo of made bumper stickers saying, "I do bad things for love," along with the Small Dogs web site URL. The line is from one of their books, and everyone who sees the bumper sticker wants one. Sabo sells them at her web site, and gives them away at book fairs. Of course, she has one on her car, and says she has given them to all of her friends, too.
License plate frames are a favorite of car dealers and auto repair shops, but they can work for any business. You can have them custom made with your business name or slogan, along with a phone number or URL.
Magnetic signs are an easy and low-cost way to put a lot of information on your car. Put them on both sides of the car, and make sure the lettering is large enough to read, even from a distance and when the vehicle is in motion. Personal chef Sue Gaughenbaugh added an effective twist to this idea. She bought a supply of magnetic business cards and placed them around the sign on her truck. When customers see her truck in a parking lot, they can pick up a card to take with them. Gaughenbaugh started getting calls from new customers within days of putting the take-away magnetic cards on her truck.
Vinyl decals and window stickers are a highly visible way to promote your web site. Put the URL in large letters across the width of your rear windshield. After all, you never know who might be behind you in traffic. This is most effective if you have a catchy and descriptive domain name. Custom stickers are available at prices starting under $20.
You can order many of these items from local printers and sign shops. Or, do an online search for companies that can create bumper stickers, magnetic signs, decals and other promotional items.
Bumper stickers are so inexpensive that you may want to print enough for employees, friends, family members, customers and others. Publisher Susan Sabo of made bumper stickers saying, "I do bad things for love," along with the Small Dogs web site URL. The line is from one of their books, and everyone who sees the bumper sticker wants one. Sabo sells them at her web site, and gives them away at book fairs. Of course, she has one on her car, and says she has given them to all of her friends, too.
License plate frames are a favorite of car dealers and auto repair shops, but they can work for any business. You can have them custom made with your business name or slogan, along with a phone number or URL.
Magnetic signs are an easy and low-cost way to put a lot of information on your car. Put them on both sides of the car, and make sure the lettering is large enough to read, even from a distance and when the vehicle is in motion. Personal chef Sue Gaughenbaugh added an effective twist to this idea. She bought a supply of magnetic business cards and placed them around the sign on her truck. When customers see her truck in a parking lot, they can pick up a card to take with them. Gaughenbaugh started getting calls from new customers within days of putting the take-away magnetic cards on her truck.
Vinyl decals and window stickers are a highly visible way to promote your web site. Put the URL in large letters across the width of your rear windshield. After all, you never know who might be behind you in traffic. This is most effective if you have a catchy and descriptive domain name. Custom stickers are available at prices starting under $20.
You can order many of these items from local printers and sign shops. Or, do an online search for companies that can create bumper stickers, magnetic signs, decals and other promotional items.
Subscribe to:
Posts (Atom)