Showing posts with label free car insurance quotes. Show all posts
Showing posts with label free car insurance quotes. Show all posts

Free Car Payment Insurance: What's The Catch?

If you are not sure about buying a new car because the job market looks shaky and your current job does not feel stable, is there any reason why you should take the risk of new-car-payment? One reason may be a car payment protection plan that is offered free of charge by the car makers such as GM (NYSE: GM), Hyundai (OTC: HYMLF) and Ford (NYSE: F).

How does it work?
When you lose your job in a way in which you will qualify for your state unemployment compensation program, your payment will be made for you up to a set amount and for a set number of months. However, if your salary is reduced and you can not afford the payment anymore, you're in luck with this program.

Just like warranty, payment protection must occur within a certain time period. For example, dealers can make the payments for six months or more if you lose your job within a year or two. The proper term is very varied and you'll want a copy of the terms in writing before you buy your new vehicle.

When Is It There?
Date of payment plans vary, but the protection plans are gaining popularity in the spring of 2009. However, as an incentive to buy a car, it can disappear and reappear at any time. Thus, you should always ask the car dealer if the feature is currently being offered.

How much does it cost?
These free incentives in addition to rebates and other incentives. You will not have to pay more for your car to get these services.

Is Payment Protection Plan Enough Reasons to Buy a New Car?
The plan may be reason enough to buy a new car with the following assumptions:

You are going to buy one anyway
You do not lose your job already
You feel comfortable that if you lose your job, you can find a new job within a set amount of months that was given to you before your payment should continue.
Caps on the amount of payments

Every car company that offers this deal may offer different payment cap. Something beyond the amount that you still have to pay while the insurance covers your payment. For example, say you buy a $ 30,000 car that you would pay in five years with interest of 6.5%: Your monthly payment will be $ 587. If the insurance payments covered up to $ 500 for each payment, you still have to pay the remaining $ 87 per the month when you are unemployed.

Alternative and Additional Commitments
Car insurance payments - if available - is a nice safety net, but that's no reason to get a car that almost did not in your budget right now. Not getting the highest price of the car you can afford. Getting a car that you can still afford even if other situations are not insured that occurred, such as payroll deductions or medical expenses that are not planned. There is also a lower cost alternative to buying a new vehicle.

Here are some alternatives to buying a new car for you to consider:
Low mileage used cars. If you can, consider saving money by buying a used car with less than 10,000 miles. Make sure you compare this cost with the final selling price after rebates and other incentives offered on new cars.

Keeping the car you have. If the car you have is a few years old and in good shape, figure out how much your car will cost you in repairs over several years by asking your mechanic.
Create your own payment protection plan. Even if your shiny new car is equipped with payment protection, it's a good idea to have a few months payment in case of saving your finances get tighter for any reason. Even if you decide to get a new car for a payment protection plan or other incentives, start putting extra money in your savings if you are having trouble making your car payment at a later date. If you are unable to do so because the new car payment will leave you short of money, ask about less expensive models.

Concentrating on Best Deal
You will have these vehicles far beyond the period of layoffs, so the interest rate and the minimum sale price is just as important as a payment protection plan. Shop around for the best deal but the best insurance plan payments. After all, would you really care if your payments are protected if you buy an expensive car and had a payment you can not afford right now?
Different names for the same thing

Each car makers that offer these programs will call it something different. Therefore, if you really want to know if a particular dealer to have the program explained to them that you are looking for help with a payment plan if you lose your job.

car payment protection plan can feel like a drug to stabilize woes buy your car. But it is never a good idea to buy a car you can not afford now and in the future. If you do not find a stable job and you want or need a new car, buy cars that cost less than the maximum you can afford. The worst and the best that can happen is that when your revenues start to rise again, you can trade your car purchase for you ever dreamed about.