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In today’s fast paced world, business owners don’t often have the time to thoroughly check out the companies they rely on to provide goods and services. In many cases, a determination of product/service quality can be made at the time goods are delivered or services are rendered. If goods or services do not meet expectations, there is often an immediate remedy available. For example, poor quality goods can be shipped back to the supplier and/or payment for services can be withheld until services are satisfactorily rendered.

Unfortunately, business owners do not always purchase items that are tangible items, in the sense that they can immediately determine the quality of the goods and/or services at the time of purchase. One example of such a purchase is health insurance. Since health insurance is not usually used immediately after purchase, the quality of care or the legitimacy of the policy may not even come into play until the business owner, or a family member, actually needs to have medical treatment. This is one of the primary reasons that many companies, often appearing legitimate, can get away with selling bogus health insurance coverage to unsuspecting business owners.

In most cases, fraudulent health insurance policies are sold to business owners by telemarketers or “agents” through bogus Associations and Unions. In that, the buyer must join a professional and/or trade association or become a union member to qualify for health insurance. In fact, in a study published by the U.S. General Accountability Office (GAO) in 2004, the GAO found that association schemes ranked at the top of the marketing methods followed by bogus health insurers. According to the report, “Employers and Individuals Are Vulnerable to Unauthorized or Bogus Entities Selling Coverage, between 2000 and 2002, the U.S. Department of Labor and state insurance regulators identified 144 unauthorized entities selling health insurance unlawfully. These entities defrauded 15,000 employers and more than 200,000 policyholders out of $252 million.”

However, it is important to mention that many individual and group health insurance products are endorsed by reputable Associations, such as the ARRP and the American Bar Association and, many reputable Unions, such as the AFLCIO and the Teamsters. These organizations have long been recognized for bringing a common class of professionals or citizens together for other purposes that have very little to do with health insurance. Membership commonly includes a wide range of other benefits in addition to discounted health insurance. Typically, the organizations have a governing organization, a constitution and bylaws, a set of officers, voting rights, regular membership meetings and a professional code of conduct.

Unfortunately, most individuals do not find out that they were making hefty monthly payments or premiums to fraudulent Associations or Unions until they have a severe condition that requires medical treatment. Usually, it isn’t until after they receive treatment that they receive notice from their medical provider that the claim that was submitted to the insurance company was denied and that all the medical charges that were incurred are now their responsibility.

Often, the scheme starts when business owners are contacted by telephone or approached by someone who claims to represent a certain, official sounding, Association or Union. The business owner is then informed that if s/he becomes a member of the Association or joins the Union, s/he could qualify for a low cost group or individual health insurance plan. Typically the Association or Union is promoted to represent self-employed individuals and small business owners. The low cost health insurance is usually presented as one of the many “perks” that the business owner can qualify for, in addition to many other “member” benefits, like discounts on other services, such as dental, eyeglasses, office supplies, hotels, rental cars, etc.

In many instances, these bogus companies involve licensed health insurance agents to sell their fraudulent health insurance products. Sometimes the “agents” know the products are fraudulent, other times, the “agent” also falls prey to the scheme. Often, the schemes prey upon consumers who have been previously declined insurance coverage or suffer from a pre-existing condition. Since these consumers have very limited options to purchase private health insurance coverage, the benefits of an Association or Union membership that offers health insurance coverage for a “membership fee” or “union due” is enticing. To the unsuspecting consumer that has a pre-existing medical condition or is paying high premiums for coverage, the “membership fee” or “union due” is a small price to pay for what they believe will be a quality health plan that provides “guaranteed” coverage with no “pre-existing condition exclusions” and no “waiting periods.”

In many circumstances, the print materials that are left with the consumer are very well designed, however, the majority of the time, the language in the “health plan brochure,” if there is one, is very unclear. The literature may name the entity that is authorized to act as the health plan administrator of the plan, but neglect to name the actual insurance company that is providing the health insurance coverage. Unfortunately, it is often difficult for the consumer to separate the illegitimate companies selling official sounding health plans from the legitimate ones. Typically fraudulent health plans have many commonalities.

Here are 10 “Red Flags” that may indicate health insurance fraud:

1. The “agent” is not a licensed insurance agent but an “enrollment” or “membership” coordinator.

2. The term “discount plan” is written in the product literature, but the term health plan, health insurance or policy is frequently used by the plan promoter. Discount plans often provide nothing more than a discount for medical services, such as prescription medications, eyeglasses, dental, etc. These plans are not designed to offer major medical health insurance coverage.

3. The official sounding “Association or Union” is one that you have never heard of before.

4. The plan is referred to as an ERISA plan. The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that allows employers to set up employee benefit plans for employees and their dependents. ERISA plans are not subject to state regulation and are not regulated by the state insurance commissioner. ERISA plans are normally not sold as health insurance, but are instead, established by employers, unions or groups acting on behalf of employers. Therefore, unsuspecting buyers believe these plans actually offer health insurance coverage, when if fact, they do not.

5. The buyer is told that the “membership fee or union dues” includes the health insurance premium, but there is no mention of the word “premium” in any of the plan literature.

6. The plan offers “guaranteed” insurance coverage with no exclusions for “pre-existing conditions” and no “waiting periods.”

7. The plan is significantly cheaper in price than other health insurance plans.

8. The term “reinsured” is used in regards to the plan. Reinsurance is something insurance companies buy to protect themselves against their own risks. It is insurance for insurance companies. Licensed insurers rarely have their agents mention any of their reinsurance arrangements during a sales presentation.

9. If the Association or Union is comprised of members from all walks of life and/or requires its members to state that they belong to a certain trade, class or group of professionals that they have no affiliation with, for example, the Association or Union is said to be comprised of “Food and Beverage” workers, but “Florists” and “Machinists” are allowed to enroll as members.

10. If the Association or Union is said to have a special arrangement with a health insurance company, a plan administrator or another third party that has designed the plan using a legal “loophole” that allows members to purchase health insurance at a discounted rate or to purchase a individual or group health insurance policy.

So how can you protect yourself from falling victim to a fraudulent insurance scam? Make sure you contact your state’s department of Insurance to determine if the health insurance company and the third-party administrator are licensed to do business in your state and make sure that the “agent” selling the plan is a “licensed health insurance agent.” Additionally, make sure that the health insurance company has been approved to sell the particular policy that is being offered. Since it may be difficult to tell if fraud is involved, always put off buying your insurance policy until you have had the opportunity to perform your own due diligence.

©2007 Small Business Insurance Services, Inc. http://www.smallbusinessinsuranceservices.com

C. Steven Tucker, is the President of Small Business Insurance Services, Inc. and has been a Licensed Mult-State Insurance Broker serving the small business and self-employed market for over a decade. Mr. Tucker believes an informed insurance consumer makes the best health insurance purchasing decisions. Mr. Tucker has written several articles that focus on small business health insurance, which can be read on a number of web sites. Mr. Tucker’s blog can be read at http://www.smallbusinessinsuranceservices.vox.com. If you have general questions regarding health insurance, or you are in the market to purchase a health insurance plan, you can contact Mr. Tucker through his web site at http://www.smallbusinessinsuranceservices.com, via Email at smallbusinssvcs@aol.com or by plone, toll-free at 1-866-SBIS123 (724-7123)

To many, learning the art of gourmet cooking might appear to be an impossible dream. But no matter what your present cooking skills are, this simply isn’t the reality. There are numerous gourmet cooking techniques that you can practice to enhance your everyday cookery skills.

One path to developing these skills is to sign on for a gourmet cooking class. The downside is that many of these courses can be quite costly, and you might not have the time in your schedule to make it to all the classes.

With gourmet cooking classes not an alternative for many, what are some other means of studying gourmet cooking techniques that you can integrate into day-to-day meal preparation?

Luckily, there are several things you’ll be able to do that can facilitate learning gourmet cooking skills that you can easily use every day.

First off, you must plan this in a practical way. Gourmet cooking does not necessarily imply costly, out of the ordinary, or uncommon ingredients. Gourmet cooking actually entails employing the freshest ingredients of the finest quality.

An easy way to go about gourmet cooking is to examine the basic spices you use. For instance, a gourmet chef would never cook with garlic powder, bottled garlic, or any other type of garlic that wasn’t freshly chopped. As well, a gourmet chef would never use dehydrated or bottled herbs. Only fresh herbs from the produce department of the supermarket would be considered.

Some ingredients in their freshest format will be more expensive than their processed counterparts. But you’ll soon recognize that the cost difference isn’t unreasonable, and it’s still a good deal less expensive than dining at a restaurant. When you get used to gourmet cooking, you’ll lose your desire to eat out. You will be capable of making scrumptious meals in your own kitchen. This way, you’ll have even more chances to hone your cooking skills.

The fastest and simplest way to add gourmet cooking into your everyday meal preparation is to enhance the quality of the ingredients that you’re using. Then you’ll want to learn how to cook the ingredients properly.

The easiest way to do this is to browse through cookbooks, where you’ll be able to study the basic principles and learn at your own rate. Your library will have numerous cookbooks that you can explore.

Your cookbook should deal with the basics, including what type of knife you should use for various tasks, how to prepare chicken stock, and the process for clarifying butter. These are all fundamental cooking techniques that can often seem unattainable because they are considered to be gourmet.

Before long, you’ll realize that gourmet cooking is a skill that anyone can learn. All it takes is some time and effort.

Ashley King loves to experiment with gourmet cooking [http://cookbookssite.com/] For more great cooking articles, check out Cookbooks and Cooking at [http://cookbookssite.com/]

The auto repair quotes that you get for your automobile vary with the service provider. There are many auto service providers who are happy to give you auto repair quotes. You can either get them from the service provider in your locality or from the leading auto repair company in your area.

Before getting a quote, make a preliminary list of repairs that need to be done that you know of. If you are not clear as to what you need, you may end up spending wasted time and money of what could have been just a simple repair. Go to your local mechanic for quotes before deciding on where to take your automobile. They will give you an idea as to exactly what expenses are involved, and what repairs are critical, as opposed to not necessary. You may decide to stick with your mechanic or go to a dealer for repairs. Whatever you decide, you’ll have valuable information in your hands regarding the repairs that need to be done, and what one mechanic would charge to do the repairs.

There are also free checkup camps that are held at major car dealer manufacturers. Here, your car will be evaluated for problems at no charge to you. If problems are found, these events may even offer discounts on parts and repairs that you can take advantage of. They will also give you repair quotes that you can pass on to a repair shop.

If you know what is the kind of repair that is needed for your car, then you can get auto repair quotes online on websites dedicated for autos. All you have to do is type in information about you and your car and what repairs need to be done. You will receive instant auto repair online quotes. You can get auto repair quotes from multiple vendors and compare them to get the best deal.

Auto Quotes provides detailed information on Auto Quotes, Instant Auto Insurance Quotes, Auto Glass Quotes, Auto Repair Quotes and more. Auto Quotes is affiliated with Auto Dealer Auctions [http://www.i-AutoDealers.com].

What’s The Best Type Of Dog Collar?

Getting the right dog collar for your dog is one of the most important things you can do for your dog. Your dog will probably spend most of it’s life with it’s collar on, so getting a good comfortable hard wearing dog collar is essential. Luckily for the more style conscious amongst you, modern designer dog collars can be fashionable too! Finding the best type of dog collar for you , will depend on your dog and what the main use for the collar will be.

What is a dog collar for, and is it essential?

The main use for a dog collar is probably the most obvious – controlling your dog. Used in combination with a dog leash, a dog collar can provide you with a certain amount of control to prevent your dog wandering off or straying into road traffic when out walking. There are other uses for a dog collar such as dog or puppy training. Also, you can incorporate your dog’s identity and your contact information within the dogs collar, in the event your dog gets lost.

Choosing the correct size of dog collar is important. Having a collar that is too small can cause your dog harm and at best will leave your dog feeling uncomfortable. Similarly, having a collar that is too big will enable your dog to easily slip out of it. Also, the width and material of the collar neeeds to match the size of your dog or puppy. A heavy duty leather collar will not be much good for a Chihuahua and neither will a lightweight nylon collar be any good on a Rotweiller.

A good rule of thumb, is to make sure that on a large dog, you can slip two fingers between the dogs throat and the collar. Also ensure the collar can rotate easily, but not slip over the dogs ears. On smaller dogs, ensure the collar can rotate easily and does not cause any breathing problems. Make sure it cannot pull over the dogs ears. Remember that in the right situation, many dogs can become little Houdini’s in their own right.

There are many different types of dog collar available. There are sporting collars, designer collars, personalized collars. We will be covering a few main types. These are as follows.

Standard Dog Collar

Dog Training Collars

Electric Dog Collar or Dog Shock Collar

Standard Dog Collar

The standard dog collar is what your dog would wear for everyday use and can come in a variety of materials. Most common these days is the Nylon collar. These come in all sorts of colors and sizes. The main advantage of a nylon collar is it’s price. These collars are very cheap yet provide a superb durability in that they don’t tend to rot and when wet will dry out quickly. Alternative types such as leather collars tend to have a more asthetic natural appeal. A good quality leather collar could easily last the lifetime of your dog. An extension to this are the designer dog collar or fashion collars. These can extend to anything from a simple fashionable pattern or designer name, to a rhinestone dog collar for more special occasions.

The dog collar that you will be using most should be comfortable for your dog and secure, although for lapdogs where the collar can be more of a fashion accessory being comfortable is the priority. For larger dogs, a strong hardwearing collar is a must.

Dog Training Collar

A dog training collar is – as the name suggests – used mainly during training. The type of training will dictate the type of collar.

For obedience training, a choke collar or ‘choke chain’ would be best suited. These collars comprise of a slip loop that tightens around the dogs neck if it pulls on a leash too much. When the dog stops pulling, the chain loosens off. Many people consider the use of a choke collar as unnecessary but used in the right circumstances, this type of collar can be an effective training aid. It is extremely important to only use a choke collar when training and when the dog is supervised. You must NEVER let your dog out alone with a choke collar on. If the dog becomes caught on something they may easily choke themselves.

Electric Dog Collar or Dog Shock Collar

Electric dog collars or as they are sometimes known ‘dog shock collars’ and ‘anti bark collars’ tend to be used to discourage a certain behaviour in a dog. More often than not these are used to control unnecessary barking. These collars consist of a sensor to detect the bark and a pair of electrodes or similar to administer a small harmless shock to the dog. More advanced devices can adjust the level of the shock depending upon how many shocks have been administered before. The main problem with these devices is that the dog is being consistently punished for it’s bad behaviour. This may seem ideal initialy but it is far from this.

Training a dog involves much more than punishing the dog every time it is bad. In fact, using positive reinforcement and praise when the dog stops behaving badly can have a much more positive effect. Getting to the root of the behavioural problem is the best approach. Only then can a preventative training method be implemented. Consider the case of a dog that chews and barks because it misses it’s owner during the day. The barking and chewing is a product of the dog feeling anxious. If the dog recieves an electrical shock every few minutes, that anxious behaviour will be compounded. Read this article for further training information.

For cases where the owner is not present, a far more humane method of discouragement can be implemented. This involves a similar type of collar that detects a bark but the collar releases a natural spray of Citronella that discourages the dogs behaviour. These can be used as a complementary method to other training.

Article By Andrew Strachan. Find lots more information about dog collars and different types of dogs at http://www.types-of-dogs.com Lots of help and advice too.

An automotive technology degree can be achieved with many designations and certificates. The complexity of a car has required an equally complex field of repair personnel within this industry. Ultimately, automotive degrees provide the foundations for entry-level positions in the automotive industry that could lead to those managerial in nature should that be a part of your career goals. These programs are typically offered on both part-time and full-time schedules.

If you are interested in an automotive degree program you should possess the ability to work well with people, as well as the ability to work without direct supervision. You should have an aptitude for math and reading and have a natural inclination for mechanical operations. Additionally, you must possess adequate manual dexterity along with competent hand-eye coordination.

Graduates of automotive degree programs will typically have the necessary training to pass the Automotive Service Excellence exam in up to the eight ASE specialty areas. The National Institute for Automotive Service Excellence is a nationwide, nonprofit organization that strives to test and certify auto technicians throughout the county. A graduate with an Associate’s of Applied Science in Automotive Technology and the ASE credentials will be appropriately recognized as a skilled automotive technician when applying for a job.

The automotive program will typically train you in a variety of fundamental automotive specialties. These will include appropriate foundations in the important areas of engine repair, brakes, and electrical systems. You will also learn what is known as HVAC training, which covers heating, ventilation, and air conditioning. The program continues with training that involves automotive transmissions, drivetrain and axles, and suspension and steering. You also will gain experience in maximizing engine performance.

An Associate’s of Applied Science in Automotive Technology typically requires 70 credits for completion, which can be achieved in two-years on a full-time basis. Depending on the school, however, credit requirements may differ, so make sure to inquire before enrolling. The program includes the obvious automotive coursework plus the successful completion of courses in the following fields: science, accounting, communications, humanities, and management. Additionally, classroom work is supplemented by relevant lab work and practical experience gained through an integrated internship required for graduation.

Automotive technology degrees are designed to provide proper preparation to students seeking immediate employment upon graduation. Should you wish to transfer to a four-year college to obtain a Bachelor of Science Degree in Automotive Engineering Technology or a related field, these programs and their credits are typically transferable to four-year schools.

A well-trained automotive mechanic will find many career prospects within the different facets of the automobile industry. Graduates can choose to be self-employed or work as technicians for various businesses, such as tire centers, automobile dealerships, or service centers. A college graduate with an ASE certification will be deemed competent and qualified with the ability to locate employment across the automotive industry.

Automotive technical training opportunities are as diverse as the automobiles that need repair. When considering online certificate programs and degrees, you’ll want to know what kinds of automotive classes you’ll be taking. It is important to select a school whose training program is an up-to-date reflection of current industry procedures that will train you to successfully and efficiently repair automobiles and solve customer issues. As an added bonus, to help jump start your career, many automotive certificate programs will issue, upon graduation, a specialized tool set to facilitate your transition from student to successful technician.

A Step-By-Step Tutorial: How to buy a car with bad credit without it turning into a nightmare.

Are you tired of hearing the word ‘No’ when it comes to a car loan? I set up ‘How to buy a car with bad credit’ specifically so that you could hear the words ‘yes’. Who am I, you ask?

I spent 14 years in the automobile business as a Finance Manager so I believe it’s fair to say that I know a thing or two about getting a loan financed, irregardless of your past credit history.

Remember, regardless of your past credit history, you still need a car, want a car and most of all, you deserve a car. You should also be treated with respect and given choices. I’m going to teach you how to have a choice with auto bad credit financing loan.

First of all, all lenders now purchase deals based on what is called a beacon score, which is the same as your credit score. There are three credit bureaus that make up the package. Each lender will choose whichever credit bureau(s) they prefer when looking at your credit or a combination of bureaus.

I highly advise everyone to have all three credit bureaus pulled when checking your credit and to pay for the credit score. If you only look at one bureau, you’re only seeing part of the whole picture.

With the exception of a few minor things, beacon score will play a large part in your approval. Staying within your financial means is another, so be realistic. If you make $2500 per month and have $1200 going out, don’t walk in all high-and-mighty and tell the Finance Manager that you will only have an Expedition or nothing. You’ll end up with nothing.

In order to effectively use auto bad credit financing, you are going to have to know what your credit looks like and what your credit score actually is. Otherwise, you are working in the dark.

Pay for the credit score or it’s just almost useless. With the credit score, you will know whether or not you qualify for a lender such as Ford. Also, the higher the score, the lower the interest rate. Got it? With an auto bad credit loan, the higher the beacon score, the better.

Let me explain websites like cars.com and the such: They collect applications for car loans online. They then have a network of dealerships that PAY them for the leads. These are generally dealerships that have departments that specialize in getting you financed, regardless of your credit. These departments pay for these leads, so most take them very seriously, as they are their bread-and-butter, so to speak.

If you have a lower than usual credit score, a current repo or just plain, all-around bad credit, this might be the way to go. If your credit is really that bad, remember that you are going to need some cash or a paid-for trade in that’s actually worth something.

O.K., now for the step-by-step system that I promised. First, take control of your car deal! You need to be in the driver’s seat, if at all possible. Go online and run a copy of a tri-merge, which is all three credit bureaus, plus pay for your credit score. You can get a FREE copy of your credit report once per year HERE:

http://www.annualcreditreport.com

This is the new Federal law that actually entitles you to receive a FREE copy of your credit bureau once per year and with some other exceptions. This is not a credit monitoring site. You have to run each bureau separately; Experian, Equifax and TransUnion. Then, you have to pay for the credit score.

So as to hold down on confusion, here’s the scoop: Each credit score for each separate bureau will be different. That’s why a Tri-Merge is called what it is called. You can run a specific bureau called a Tri-Merge from one company (there are many-just do a Google search) and you actually get one bureau (it’s actually all three combined but the credit score is also one credit score). It’s more expensive and generally runs around $34.00 but it just depends on your preference.

Now, with your credit score in hand and a copy(s) of your credit bureau, look at your credit. Do you have anything strange on there that is not yours? If so, it’s time to fix it. You should review your credit bureau at least every 6 months to a year. Plus, if your identity has been stolen, you will know quickly. P.S. you can also have a liner placed on the bottom of your bureau that simply states “Do not extend any credit on my behalf without contacting me first. Work # (111)222-3333 Home#(222)333-4444 Cell# (333)444-5555.” Call or write the credit bureaus and request that this is done. You can now do this online for free. Again, do a Google search for all three bureaus listed above.

How do you fix your credit, you ask? I give away a totally FREE book that I wrote on the subject simply for the asking. Email me with Free Credit Repair Book in the headline and I’ll email it to you.

Next in line: Know what you want to buy BEFORE you even go out shopping! Let me make this very clear. Car dealer’s jobs are to sell you a car on your very first visit. A salesman/woman and their sales manager believe that if you walk into their dealership and do not leave with a car, you will never come back again. They are going to hammer on you until they either A) Make you mad and you get up and leave or B) Sell you a car. It’s the nature of the beast. Accept it ahead of time.

What do you want to buy? Where can you get unbiased information on the auto? Again, Google for Kelley Blue Book or NADA and you can get cost, warranty repairs, recalls, and information on problems and tons of info beforehand. Limit your shopping to three models. Keep it simple. Those will be the ones that you will shop for.

Can you afford the car? You may think you can afford the car, but the bank may think otherwise! I have seen this so many times in my career. Automobile economics 101: Take your gross income (what you make per year BEFORE Uncle Sam taxes you) and remember, this income needs to be provable-tax returns, check stubs with taxes taken out or a W-2. If you are self-employed, you will need two years of tax returns with Schedule C’s. This is the income that you actually paid taxes on. Being self-employed can be tough. You may need to combine a spouse’s income if you are self-employed.

Now with your gross income figured out, find out what all of your debts are that are going out each month. Include everything…it’s listed on your credit bureau’s. Example: Car note=$450.00 + House note= $560.00 + Credit card debt= $425.00

Boat note= $310.00 Charge-offs=$1200.00 (yes, charge-offs; these are bills that you never paid and they were written off). Add all of your debts up. With just your obvious debts (including the charge-offs), you have $1805.00 per month going out. I arrived at that figure by adding up all the monthly notes and taking 5% of the charge-offs. 5% of $1200.00 = $60.00. We’re not through, though. Now we have to figure in cost of living-utilities. Each lender has their own algorithm for utilities but a good range to estimate would be to add $300.00. Now we have a total outgo of $2105.00. This is what you have to have to pay your current bills before you take on any other debt.

Almost all lenders will not allow your new car note to exceed 20% of your current income. For our example, let’s assume that your gross income is $5300.00 per month. Let’s take $5300.00 and subtract your debts, which are $2105.00. That leaves you with $3195.00. To make it easy, take $2105.00 and double it. That would be $4210.00. That would leave you with disposable income of $1090.00. What the lender is looking at here is referred to as debt-to-income. They want to know if you have more going out than you can handle. This is strictly a case of numbers and provable numbers. If your gross income was $4500.00 and you had $2105.00 in debts each month, you need to be prepared for one of two things; add your spouse’s income and your spouse to the deal or trade in the other auto. If your debt-to-income is running too close to 50%, you’re going to have a hard time getting a loan for anything. Make sense? The way the bank looks at it is this: you can’t afford both cars so they assume that you are going to let the other (older) car go back to the lender-repossession. That’s their take. Debt-to-income is a HUGE deal.

In this case, your disposable leftover income is $1090.00. 20% of that would be $1060.00. Whoa! Let me be the first to inform you that you are NOT getting a car payment of $1060.00! Why? Well, you only have $1090.00 left over for starters. Let’s be realistic here. Most lenders will slice that in half which will equal $530.00. Your payment call should be around that figure, give or take a few dollars.

How expensive of a car can I buy on a $530.00 payment? Good question and one that you absolutely need to know so that you can pick out the correct car. One answer depends on the term of the loan. You can finance for 36, 48, 60 or 72 months, as a for-instance. That equates to 3 years, 4 years, 5 years and 6 years. I will tell you this: the worst thing you can do is extend the note out the longest amount of time in order to get the payment where you can afford it. That creates a syndrome that now affects over 75% of car owners called being “Upside Down.” It means that you owe more on your car than it’s worth. It also means that you need more money down when you go to trade it in. The only way around that is a lot of money down or a short-term loan.

You can again do a Google search for a ‘car loan calculator’. You will punch in the loan amount you want to borrow, the term (48,60, etc.) and the interest rate. If you have not gotten approved already and know the rate, you will have to guesstimate. Here’s a rule of thumb for you-it’s not an exact science without knowing your credit, but it is a guide you can follow to get you close. Let’s base the rate on your beacon score: that’s what most of the lenders are going to look at.

If your beacon (credit score) is in the 400 or lower range, you will need to figure your interest rate on a new car at 21% (state maximums differ-it could be 18%). If you are looking at a used car, figure on 33%. If your beacon score is in the low 500 range, figure your new car loan as you would for the above-mentioned 400 beacon. If your beacon score is in the mid to high 500-range, figure a new car at 18% and a used car at 27%. If you have a beacon of 600 to 649, figure a new car at 16% and a used car at 20%. If you have a beacon score of 650 to 699, figure a new car rate at 12% and a used car rate at 16%. I may be hitting too high on a few of these, but I live in a state that has the highest rates in the nation. Better safe than sorry.

Get Pre-Approved BEFORE you start shopping. This is the easy part, in a way. Remember I told you at the beginning of this article to take charge of your car deal instead of letting the dealer lead you by the hand. It all boils down to financing. If you can walk in with a check in your hand, you are in control. I will recommend a few companies that are reputable, have a proven track record in sub prime loans and all mail the check to you at home. You then go into a dealership and pick out your vehicle, negotiate and buy like a cash buyer! These companies are Household Finance, Capital One Finance, Americredit and E-Loan. You can do a Google search for all four, apply online, and get either an instant approval or one really quickly. When you are approved, they mail the contract to you and then the check. It’s that easy.

On the final decision for the car-work smart here. There is nothing more valuable than time and nothing more rewarding than piece of mind. Please don’t go running from dealership to dealership. Wrong. Pick out the 3 models of auto that you can afford. If you are looking for a program car (rental), call dealerships and inquire as to whether or not they have any. If you want a new, ask other people that are driving that model where they bought theirs and would they purchase there again. If you start hearing a lot of “I’ll never buy from them again”, move on. Something is wrong. Your new car is only as good as the service you will get AFTER the sale.

Negotiating-Most people hate this. I have only met 2 people in 14 years that enjoyed it; they were both retired and had nothing better to do. One did it for the fun of it and never even bought if you agreed to his price. Don’t waste other people’s time. If you don’t like the car, don’t negotiate on it. When you do find a car that you would own, tell the salesman you’d buy it right then if the price was right and if they provided you with a Car Fax. The keyword here is: ‘If the price is right’. How do you know what a good price is? Well…glad you asked. If it’s a new car, Kelley Blue Book will have dealer cost. Go to: http://www.kbb.com

If it’s a used car, compare used car figures at http://www.kbb.com

And

[http://www.nadaguides.com]

What’s the difference? Most dealers (with the exception of the West coast) will use NADA as their guide.

Here’s what’s transpired so far:

Before you ever drove the car, you went by the dealership on Sunday, when there are no salespeople and you got the Vin# of the car and the equipment, year model and had a good look at it. You already know if you like the car when you drive it, that you would buy it. The list price is in your pre-approved check category, to boot. You’ve already gone online and gotten wholesale, trade-in and retail values for the car.

Retail is what the dealer should ask for the car. This will help you to know whether or not the salesman is trying to add money to the car, or if the dealership is. Trade-in is a figure to gauge approximately what the dealership traded for the car for. It will give you an idea of what the dealer paid for the car, before reconditioning fees and any ticket from service. Now, not every make of car will bring trade-in value. Two that will at this time are a Honda and a Toyota. Those cars will bring trade-in value. Domestic cars generally will not bring trade-in value, with the exception of new, hot models. Other models will only bring wholesale. As an example, Kia makes a great car, but most will not bring close to trade-in value. Mitsubishi is going through changes and also won’t bring close to trade-in value. There are exceptions to the rule: Katrina and Rita-two hurricanes that created a short supply of used cars. If you live in the south, that will be the case for a while. With the exception of a Honda and a Toyota, you can probably be safe offering less than trade-in. Not thousands, mind you, but less.

Take into consideration the other costs of trading for a car. Also, ask the salesperson how long they’ve had the car. If the salesperson slips up and tells you they’ve had it a while, your negotiating should be easier. The reason behind that is that the dealer is paying interest on the car every month it does not sell. The book value is also dropping every month so it needs to go.

Throughout the car deal, make sure they know you are paying cash. Don’t mention that you have a check from Americredit or whoever. That’s none of their business. When you make a deal, insist on the Used Car Manager running a Car Fax before you sign any paperwork. A Car Fax will show if the vehicle has been involved in a serious wreck, was bought back from the original customer or is salvaged. This will put your mind at ease. If you don’t like the Car Fax, don’t buy the car.

Throughout your shopping, I can’t stress this enough-Do NOT fill out credit applications at each dealership. Every time you sign a credit application, the dealer pulls your credit report and your beacon score goes DOWN. That’s why I advise on getting approved ahead of time. There are numerous advantages to getting approved ahead of time. The main advantage is that you are in control, not the dealership. That’s worth a fortune in itself. Their job is to take control of you from the start of every meeting. Believe me; I know what I’m telling you. I lived that life for a long time.

For some reason, should you not be able to get pre-approved because your credit is extremely bad (a discharged bankruptcy is an instant-approval, by the way), and you have to go through an online clearinghouse like cars.com, don’t despair. Continue to follow my previous steps and advice and negotiate and insist on a Car Fax report.

When you do decide on a car and go into the Finance Office to sign the papers, I would like for everyone to know that you do not have to purchase any products in order to get the loan. If anyone in Finance tells you that you have to purchase a warranty and credit life to get the loan, which is a bold-faced lie. Why would a Finance Manager do that? Because they work on commission, also. Surprised? Don’t be. That’s the way dealers set up Finance Offices from the start when they realized how much money could be made. The Finance Manager makes money off of the rate they quote you, the warranty they sell you, the gap insurance and the credit life and disability you buy. That’s how they make a living.

I’m not saying that any of these products are bad, though. I believe in extended warranties. I’m just telling you to shop around first. If you find a cheap warranty, check out the company and make sure they will give the dealer a credit card over the phone immediately when in need of repairs in any state. All in all, I will say this-A manufacturers warranty is always better than an after-market warranty. Always. Just negotiate on it if you want it.

The only reason why you would not want gap insurance would be if you literally paid cash for the car. Otherwise, gap is cheap (should retail around $495) and will pay the portion that insurance won’t pay if it’s totaled. Just remember what I said about the book dropping on a car every month. It will never be worth what you owe unless you put down a lot of money at the time of purchase.

Credit life and Disability insurance are a personal matter. If you have a life insurance policy, it can be used to pay off the car in the event of your death. If you are single, why do you need Credit Life? The only benefit would be if you are married with a family, it cuts down the payout time. In this situation, your spouse would not lose the car.

Disability Insurance pays out for a specified amount of time. It will not pay out for the entirety of the loan. It also has a specified start date from the time you are disabled. It doesn’t just kick in immediately.

This is a lengthy article, but the gist of it is this: do your homework at home first. Then get approved online. Then shop on Sunday. Then go get your car and negotiate on everything. It will be the easiest car-buying experience you have ever had.

Regardless of your credit situation, if you follow my steps, you’ll have a car in no time and you’ll be an educated and informed customer during the process. Good luck!

Alicia Guidry spent 14 years in the retail automobile industry as a finance manager, sales manager and general sales manager.

For additional sources, see:

Bad Credit Car Loan [http://bad-credit-card-applications.com/auto-bad-credit-financing-loan.html]