Credit Problems

Purchasing a vehicle No Responses »
Apr 212010

Do you know what your credit score is? It’s very important. Have you heard the ads to repair your credit, to make credit card debt disappear?

I’ve been in the auto business for over 35 years and have to chuckle at those ads. I’d suggest the idea that, since the first thing they ask for when you call is money, you should avoid them. Only in circumstances where the credit card company thinks that they’ll lose everything will they negotiate with you. The key point there being, they’ll negotiate with YOU. What I’ve seen of the credit repair companies is that they either suggest things that are illegal, or they put you on a path that you can get the same advice for, for free.

First of all, the one thing that lenders dislike the most are debtors that won’t communicate with them. If you are unable to make your payment, or the whole payment, contact the lender. The second  thing to do is first learn what your score is and also get a copy of your credit report. If your score is less than 650 you need to work on it. Things you can do is pay your bills on time. Especially your loans, credit cards, and rent or house payment. If you have any judgements against you, you should contact the holder of the judgement and try to work out a settlement, or payments if they’ll indicate that on your credit report. You not only need to make your credit card payments, you need to try to whittle the principal down.  Another thing that I’ve seen that’s helped folks with poor credit is to get a car loan somehow. (bear in mind, I’m an auto dealer, that’s where my experience comes from) You can get that loan by saving a large downpayment, or getting a co-signer to the loan, or in some cases the dealer might help you. If you can secure that loan, make the payments exactly as agreed. And, of course, you have to have a plan to fix the other problems you have on your credit report.

In summary, your credit score and history are really important.  It can cause you a lot of extra expense on future car loans, home loans, and in many cases cause you to not qualify for any loan at all.

Posted by admin at 2:25 pm Tagged with: , , , , ,

Let’s talk about: Taxes and buying a vehicle

Purchasing a vehicle No Responses »
Oct 282009

This article is mainly meant for my Iowa friends. And of course you need to consult with your tax preparer before you ever make a purchase that involves your consideration of a tax write off or deduction.

In Iowa, this is the last chance to deduct the use tax (the 5% added on for road construction) that is added on any vehicle purchase. We often refer to it as sales tax, but it’s really called use tax.

There are also some very good tax deductions for purchases made for business. Again, you need to discuss this with your tax advisor. Using my companies as an example, we are going to purchase two new trucks with snow plows. They are 100% deductible this year. We are also going to purchase a five year old truck with a plow also. That one, because it’s used, is 20% deductible this year and the remaining 80% at the rate of 20% per year for the next four years.

This year inventory is lower that I ever remember. This is in part because of the success of the cash for clunkers program, and also plant shut downs because of retooling, etc.

Every year we have customers that wait for the last minute and then are in a big hurry to get something bought. They sometimes ask us if they can order and pay for a vehicle in December, but take delivery after the first of the year. It’s my understanding that if the IRS is aware that is what happened, they’ll disallow it.

Take advantage of the selection now, or pick from what we have coming, or we’ll even locate a vehicle for you at another dealership, if we don’t have what you want.

Posted by admin at 3:14 pm Tagged with: , , , , ,
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