I always wondered how a company like Freecreditreport.com could afford all those fancy television ads and provide a free service to consumers. If it's "free," who pays for the ads? This falls under the category "If it sounds too good to be true, it is."
The folks at Experian, the company that owns Freecreditreport.com, didn't flat out lie or anything . You do get a copy of your credit report at no charge but only after you enroll in a $14.95 a month credit monitoring service.
Turns out the Federal Trade Commission has been working for years to try to force Freecreditreport.com to more clearly disclose that "free" refers to the one time credit report you receive AFTER you sign up for their credit monitoring service. It was reported that the FTC fined Experian twice for deceptive advertising - once for $950,000 and another one for $300,000. Meanwhile, London based Experian posted earnings for 2009 at $3.9 billion. Even when you consider the costs for the Freecreditreport.com ads are estimated at $58 million dollars a year, these fines amount to nothing more than a light slap on the wrist.
The good news is that there is a way to get a TRULY FREE credit report. It's called AnnualCreditReport.com. By Federal law, consumers are entitled to receive a FREE copy of their credit report once a year from all three credit reporting agencies: TransUnion, Experian and Equifax.
You can also protect yourself against identity theft by putting a freeze on your credit. Instead of paying $200 a year for a credit card monitoring service, just sign up online with all three bureaus and freeze your credit. The charge to freeze or "temporarily thaw" your credit by using a personal identification number (PIN) is typically less than $10 per bureau depending on where you live.
Here are a few websites to get you started:
https://www.freeze.equifax.com/
http://www.experian.com/consumer/security_freeze.html
https://annualcreditreport.transunion.com/fa/securityFreeze/landing
Consumers should always be cautious when signing up for anything that claims to be "free." Rarely are there no strings attached. It's important to always read the fine print especially with cleverly designed online ads. You can also check the Better Business Bureau for a list of complaints.
Thursday, November 5, 2009
Saturday, June 6, 2009
EDUCATION PAYS
Volvo Cars of North America is helping Educators with their new car purchase by offering a $1500 discount off the purchase or lease of eligible Volvo vehicles.
Eligible vehicles include all new XC90, XC70, S80, V70 or C70 models.
Customers must be a member of the National Education Association – the largest membership organization for education professionals in the United States, a NEA employee or state Affiliate employee to qualify. For instance, for California, the state Affiliate is the California Teacher’s Association.
All you need is your school ID (members) or business card (employees) and the NEA discount coupon in order to qualify for the program.
Call 1-800-GO-VOLVO (800/468-6586) for more information.
Like all good things, this promotion will end soon, so call today and take advantage of this great benefit before Sept. 30, 2009.
Eligible vehicles include all new XC90, XC70, S80, V70 or C70 models.
Customers must be a member of the National Education Association – the largest membership organization for education professionals in the United States, a NEA employee or state Affiliate employee to qualify. For instance, for California, the state Affiliate is the California Teacher’s Association.
All you need is your school ID (members) or business card (employees) and the NEA discount coupon in order to qualify for the program.
Call 1-800-GO-VOLVO (800/468-6586) for more information.
Like all good things, this promotion will end soon, so call today and take advantage of this great benefit before Sept. 30, 2009.
Sunday, April 19, 2009
DUST OFF YOUR PASSPORTS!
May Husk taking delivery of her new Volvo C30 in SwedenAre you in the market for a new Volvo?
Have you always wanted to travel to Sweden?
The timing couldn’t be better to take full advantage of the VOLVO OVERSEAS DELIVERY program.
Here are just a few benefits:
* A huge savings off the MSRP compared to taking delivery of a Volvo that has already arrived here in the USA.
* Roundtrip tickets for two to Europe!
* One free night at the Raddison SAS, a first class hotel in Gothenburg, Sweden, home of Volvo. For a limited time, if customers take delivery of a 2009 in-stock vehicle, Volvo offers an additional free night.
* Fifteen day European Car Insurance coverage including Swedish temporary registration of your new vehicle.
* Tour of the Factory Delivery Center in Gothenburg, Sweden and enjoy a complimentary Swedish Meatball lunch.
* And much, much more…
According to Steve Johnson, Volvo of Calabasas Overseas Delivery expert, this is the best way to buy a new Volvo. Johnson traveled to Sweden in March 2009 to take delivery of the 2010 Volvo XC60. “Go hungry,” said Johnson. The most amazing thing about the Raddison SAS is the breakfast. You have never seen so much food in your life… every day … free,” he said.
As “2008 Salesman of the Year” for Volvo of Calabasas, Francisco Rodriguez earned a factory trip to Sweden. “Volvo treats you like royalty. You feel like you are part of the Volvo Royal family the minute you get off the plane,” he said.
But don’t take our word for it. Just ask Norm and May Husk, Volvo of Calabasas customers who took delivery of their 2009 Volvo C30 in October 2008.
“Our experience with the Volvo Overseas program was truly remarkable. Absolutely every detail was taken care of. The flights were perfect. The accommodations at the Radisson were beyond what we expected. And, yes, the food was outrageously delicious! We spent a week after delivery of the Volvo just traveling by train to Stockholm then back to Denmark. This is an opportunity every prospective Volvo owner should take advantage of. Thank you, Volvo, and Steve Johnson, for this once in a lifetime experience!!!"
Warm regards, Norm and May Husk
For more information, give us a call at 1-800-VOLVO! Or visit us at www.volvoofcalabasas.com
Friday, April 17, 2009
Why Do I Need GAP Insurance?
Guaranteed Auto Protection (GAP) is insurance for car buyers who are financing their vehicle and is available only at the time of sale. It is especially beneficial if you don't plan to make a significant down payment or you are financing negative equity from a traded vehicle. GAP benefits come into play in the event of a total loss. Your primary insurance company may pay the actual cash or market value of your vehicle. However, you may owe your bank more than the market value of your vehicle when you consider tax, title and license fees. The difference between what you owe your lender and what your insurance company is willing to pay is the amount GAP insurance pays. And most GAP insurance policies will pay your primary insurance deductible up to $1,000.
Here's an example: Say total amount financed for your vehicle is $30,000 for 60 months, and your vehicle is involved in an accident and deemed a "total loss" by your insurance company. At the time of the total loss, your loan balance is $28,000, but your primary insurance company agrees to pay you $20,000 based on the current market value of your vehicle. You would be responsible to pay $8,000 to cover the "gap" between what you owe your lender and the amount your insurance company is willing to pay.
For a small monthly fee, you can have peace of mind that you won't be asked to pay for a car you can no longer can drive.
That's the GAP advantage.
Here's an example: Say total amount financed for your vehicle is $30,000 for 60 months, and your vehicle is involved in an accident and deemed a "total loss" by your insurance company. At the time of the total loss, your loan balance is $28,000, but your primary insurance company agrees to pay you $20,000 based on the current market value of your vehicle. You would be responsible to pay $8,000 to cover the "gap" between what you owe your lender and the amount your insurance company is willing to pay.
For a small monthly fee, you can have peace of mind that you won't be asked to pay for a car you can no longer can drive.
That's the GAP advantage.
Tuesday, January 20, 2009
FROM SWEDEN WITH LÖV
With the tour of the 2010 XC60 just underway, Volvo has redefined its customer ownership experience, and by the sounds of some of the reviews, it’s LÖV at first sight!
The 2010 Volvo XC60 Crossover takes safety to a whole new level. The car even stops itself! It’s called “City Safety,” and it is standard equipment on all XC60s along with Standard Bluetooth, HD Radio with SIRIUS Satellite Radio (comes with a complimentary six month subscription), Dual Zone Climate Control, Leather Seating Surfaces and both USB and AUX input jacks.
For all pre-orders taken prior to March 31, 2009, Volvo is offering a complimentary lifetime SIRIUS subscription. An additional standard feature offered only during the launch is complimentary two-panel Panoramic Sun Roof. Optional packages include navigation, heated seats, a factory installed rear park assist back up camera and much more.
The 2010 Volvo XC60 Crossover takes safety to a whole new level. The car even stops itself! It’s called “City Safety,” and it is standard equipment on all XC60s along with Standard Bluetooth, HD Radio with SIRIUS Satellite Radio (comes with a complimentary six month subscription), Dual Zone Climate Control, Leather Seating Surfaces and both USB and AUX input jacks.
For all pre-orders taken prior to March 31, 2009, Volvo is offering a complimentary lifetime SIRIUS subscription. An additional standard feature offered only during the launch is complimentary two-panel Panoramic Sun Roof. Optional packages include navigation, heated seats, a factory installed rear park assist back up camera and much more.
After 80 years, Volvo continues to live up to the slogan “Volvo for Life” with the addition of the XC60 to its already superb lineup. When you add Complimentary Factory Scheduled Maintenance and a Turbo Charged engine that uses regular gasoline, you might be thinking “It doesn’t get any better than this!”
Volvo is convinced that this vehicle will not only bring in new customers but will also be an attractive switch for its already loyal customer base. And Volvo customers are among the most loyal I have ever seen.
Time and time again customers tell me that they wouldn’t drive any other brand. One customer even confessed that she thought she might be missing out on something, so she tried another manufacturer and couldn’t wait to get back into a Volvo. “I won’t make that mistake again,” she said.
The XC60 is considered a Small Premium Utility vehicle and competes with the Acura RDX, BMW X3, Infiniti EX35 and the Lexus RX350. The XC60 utilizes a Volvo engineered 3.0 liter, 281 horsepower T6 engine. With All Wheel Drive, Instant Traction and a six-speed Geartronic™ automatic transmission, this car could already be ahead of the competition.
But Volvo doesn’t rest on its laurels when it comes to safety. By far the most compelling feature of the XC60 is City Safety. According to talking points from Volvo Cars of North America , City Safety is the “world’s first standard equipment driver support system aimed at preventing or mitigating collisions occurring at speeds of 19 MPH or less. These represent about 75% of all collisions with about half occurring in city traffic situations.” But what does that really mean?
Say you are driving along in normal stop-and-go traffic and the car in front of you slows down to a crawl. City Safety is active at speeds from 2 to 19 miles per hour and uses a "closing velocity sensor" that is mounted ahead of the inside rear view mirror to determine whether a collision is likely. So when the car in front of you slows down to 9 MPH or less your XC60 recognizes the slowdown and immediately reacts to prevent or lessen the impact of a rear end collision. At the same time, it prepares the restraint system to optimize protection in the event of an unavoidable collision.
The XC60 also offers stand alone safety options like integrated second-row child booster seats, trailer stability assist, Blind Spot Information System, Volvo's Personal Car Communicator with heartbeat sensor and keyless drive.
Technology packages will feature a 650-watt Dynaudio surround sound audio system, a six-disc CD changer, navigation with real-time traffic and a rear view camera.
According to Volvo of Calabasas General Manager Mike Abell, the XC60 will quickly become a best seller at his store. "I drove the car and was really impressed at how well it handled. I was amazed at how well the City Safety feature worked. It's also loaded with the amenities everyone asks for like built-in bluetooth and HD Radio, which are standard," he said.
The first batch of XC60s will be six cylinder Turbos with All Wheel Drive and a base price of $37,200. Base models will follow shortly thereafter, but when you throw in all the standard features, I think you will agree that this car is definitely an affordable alternative to others in its class.
Call 1-800-GO-VOLVO for an invitation to a sneak preview of the 2010 Volvo XC60 at Volvo of Calabasas in mid-February. This is an "invitation only" event, and space is limited, so call today. Customer deliveries will begin in March 2009.
You can also go to http://www.volvocars.us/new%20XC60 for more details.
Monday, January 19, 2009
I Always Pay Cash For My Cars
Some customers insist that paying cash for their new vehicle saves them money in the long-run. This is not necessarily true in every case, and I’ll explain why.
First of all, in times of economic uncertainty like we face now, why would you tie up a large amount of expendable cash on a depreciable asset like a vehicle? Unless you are purchasing a rare car that is projected to have a higher resale value in years to come, you will most likely lose money in depreciation alone.
Second, most manufacturers offer significant “incentives” or “rebates” to customers who lease. In some cases, this could be worth between $5,000 and $10,000 depending on the make and model you choose.
“But I don’t want a monthly payment.” Fair enough. For this customer, I suggest a “prepaid lease” that offers all the rebate offers of a traditional lease except you pay the entire 24 or 36 months upfront instead of monthly payment. Here is an example:
The total drive off to pre-pay a 24-month lease for a $39,450 vehicle is $11,126.06. They have no monthly payments for two years as if they had paid cash for the car. An added benefit to a prepaid lease is that at the end of the lease they have two choices: 1) turn in the keys and take delivery of a new vehicle or 2) purchase the vehicle at a reduced residual value that is locked in at the start of the lease.
For customers who want to build good credit, paying cash for a vehicle does absolutely nothing for their cause. In fact, when the time comes to make a large purchase on credit like a house, “no previous auto credit” becomes a disadvantage.
I’ve run across several cases where the parent wants to shield their son or daughter from a car payment. In one instance, the 23 year old son is actually going to make monthly payments to the parent, but it’s “interest free.” In the long run this is really doing the young adult a disservice because they are robbing him from the opportunity to build credit. He’s making steady payments, but he’s not getting credit for it. Where cash is available at the time of purchase, I suggest that instead of paying for the entire car upfront, go ahead and finance it with one of the parents as a co-signer. Then put the money in an interest bearing checking account and set up automatic payments. This way the customer is building auto credit, there’s no chance of late payments and the assets are still liquid in the event of an emergency.
Let’s get back to leasing. Here is a real-life lease situation from December 2008. This customer chose a 36-month lease and wanted her payments to be less than $350 a month. This is how it worked:
Vehicle MSRP: $31,150
Customer cash down: $ 2,000
Manufacturer Rebate and Incentives: $ 5,750
Monthly Payment including tax: $ 344
At the end of 36 months, Ms. Customer can purchase her vehicle at 43% of the MSRP or $13,394.50 plus tax! Or not. At the end of three years, she has the option to turn it in or purchase it. Either way, she paid a total of $14,384 (36 monthly payments plus her cash down) to drive a $31,150 car for three years. Not bad, huh?
If she had paid cash for the car, she would not have qualified for the $5,750 manufacturer rebate and dealer incentive, and she would have paid thousands of dollars in upfront sales tax based on the total sale price of the vehicle. Not to mention that a good portion of her available cash is no longer available.
I’m not claiming that leases are for everyone. Some manufacturer rebates are better than others. They change the rebate and incentive programs each month, and they are only offered on certain models. Each customer has individual needs when it comes to owning or leasing a vehicle including their personal preferences and driving habits, so the “deals” vary depending on the manufacturer, the model you are considering and, most importantly, your credit score.
That being said, leases are definitely worth thinking about.
First of all, in times of economic uncertainty like we face now, why would you tie up a large amount of expendable cash on a depreciable asset like a vehicle? Unless you are purchasing a rare car that is projected to have a higher resale value in years to come, you will most likely lose money in depreciation alone.
Second, most manufacturers offer significant “incentives” or “rebates” to customers who lease. In some cases, this could be worth between $5,000 and $10,000 depending on the make and model you choose.
“But I don’t want a monthly payment.” Fair enough. For this customer, I suggest a “prepaid lease” that offers all the rebate offers of a traditional lease except you pay the entire 24 or 36 months upfront instead of monthly payment. Here is an example:
The total drive off to pre-pay a 24-month lease for a $39,450 vehicle is $11,126.06. They have no monthly payments for two years as if they had paid cash for the car. An added benefit to a prepaid lease is that at the end of the lease they have two choices: 1) turn in the keys and take delivery of a new vehicle or 2) purchase the vehicle at a reduced residual value that is locked in at the start of the lease.
For customers who want to build good credit, paying cash for a vehicle does absolutely nothing for their cause. In fact, when the time comes to make a large purchase on credit like a house, “no previous auto credit” becomes a disadvantage.
I’ve run across several cases where the parent wants to shield their son or daughter from a car payment. In one instance, the 23 year old son is actually going to make monthly payments to the parent, but it’s “interest free.” In the long run this is really doing the young adult a disservice because they are robbing him from the opportunity to build credit. He’s making steady payments, but he’s not getting credit for it. Where cash is available at the time of purchase, I suggest that instead of paying for the entire car upfront, go ahead and finance it with one of the parents as a co-signer. Then put the money in an interest bearing checking account and set up automatic payments. This way the customer is building auto credit, there’s no chance of late payments and the assets are still liquid in the event of an emergency.
Let’s get back to leasing. Here is a real-life lease situation from December 2008. This customer chose a 36-month lease and wanted her payments to be less than $350 a month. This is how it worked:
Vehicle MSRP: $31,150
Customer cash down: $ 2,000
Manufacturer Rebate and Incentives: $ 5,750
Monthly Payment including tax: $ 344
At the end of 36 months, Ms. Customer can purchase her vehicle at 43% of the MSRP or $13,394.50 plus tax! Or not. At the end of three years, she has the option to turn it in or purchase it. Either way, she paid a total of $14,384 (36 monthly payments plus her cash down) to drive a $31,150 car for three years. Not bad, huh?
If she had paid cash for the car, she would not have qualified for the $5,750 manufacturer rebate and dealer incentive, and she would have paid thousands of dollars in upfront sales tax based on the total sale price of the vehicle. Not to mention that a good portion of her available cash is no longer available.
I’m not claiming that leases are for everyone. Some manufacturer rebates are better than others. They change the rebate and incentive programs each month, and they are only offered on certain models. Each customer has individual needs when it comes to owning or leasing a vehicle including their personal preferences and driving habits, so the “deals” vary depending on the manufacturer, the model you are considering and, most importantly, your credit score.
That being said, leases are definitely worth thinking about.
Saturday, January 17, 2009
I Don't Think I Need an Extended Warranty
I hear this a lot. Consumers seem skeptical of purchasing extended warranties in general because they believe it's just another way to increase profits for the store. This may be true for some electronic products but high tech cars are especially vulnerable to high cost repairs.
Chances are your vehicle came with a great warranty package that covers most mechanical breakdowns and repairs. But, like all good things, this coverage will come to an end eventually, and the responsibility for repairs to your vehicle will fall on you.
The time to extend the original manufacturer warranty is well before your factory warranty expires. This will save you money over time compared to having to pay for repairs as they happen. Warranty premiums are calculated by age of vehicle and miles, so the newer the car and the fewer the miles the less you pay in premiums. I compare this to life insurance which is cheaper to buy when you are young and have no health issues.
Most vehicles today have very sophisticated computer systems that could fail without notice, and while the part itself may not be that expensive, the labor alone to remove a dashboard to get to that particular part could result in a $4,000 repair bill. Major components like an engine or a transmission will cost between $4,000 and $5,000 to repair. The more high tech features you enjoy like navigation, park distance control, cruise control, rear seat entertainment, etc., the more components you have to worry about failing. These repairs can cost thousands of dollars per visit in parts alone - not including labor. Take a look at the Edmunds.com website where they publish a “True Cost to Own” for most vehicles, and you will see for yourself the average cost for maintenance and repairs.
This is especially important when you purchase a used vehicle that is close to the end or past the original manufacturer warranty. For example, if you purchase an extended warranty for approximately $3,000, on average you will receive up to THREE TIMES the value of the premium in car repairs alone.
And that’s not all. If you decide to sell or trade your vehicle, you can cancel the warranty and get a pro-rated refund based on time and miles. You have nothing to lose and will enjoy peace of mind that your vehicle is protected long past the original warranty.
TRUE STORY: Don’t make the same mistake as one customer. She didn’t see the point in extending the warranty on her vehicle despite the fact that she absolutely loves her car and has now owned it for over 10 years. To date, service records confirm that she has paid over $30,000 in maintenance and repairs. But if she had invested in an extended warranty and maintenance plan, she could have avoided most of these bills!
CAUTION: Be wary of unknown warranty companies that solicit you at home or even on your cell phone. In most cases, this is a scam and chances are, they will collect your premium over the phone with your credit card, and you will never hear from them again or they won't be around when you need to file a claim for a repair.
Be sure to check with your local dealer, and discuss the plan to best fits your driving needs. For instance, if you drive 20,000 miles a year, you should choose a warranty with less years and the most miles. If you don't put a lot of miles on your car, opt for the most years and the least total miles. Be sure to choose the plan that offers the most comprehensive coverage instead of basic engine, transmission, suspension plans. Sure, you will pay less for the basic warranty plan, but in the end you could pay more in repairs because - it never fails - the particular item that breaks on your vehicle isn't covered.
Was this helpful?
Chances are your vehicle came with a great warranty package that covers most mechanical breakdowns and repairs. But, like all good things, this coverage will come to an end eventually, and the responsibility for repairs to your vehicle will fall on you.
The time to extend the original manufacturer warranty is well before your factory warranty expires. This will save you money over time compared to having to pay for repairs as they happen. Warranty premiums are calculated by age of vehicle and miles, so the newer the car and the fewer the miles the less you pay in premiums. I compare this to life insurance which is cheaper to buy when you are young and have no health issues.
Most vehicles today have very sophisticated computer systems that could fail without notice, and while the part itself may not be that expensive, the labor alone to remove a dashboard to get to that particular part could result in a $4,000 repair bill. Major components like an engine or a transmission will cost between $4,000 and $5,000 to repair. The more high tech features you enjoy like navigation, park distance control, cruise control, rear seat entertainment, etc., the more components you have to worry about failing. These repairs can cost thousands of dollars per visit in parts alone - not including labor. Take a look at the Edmunds.com website where they publish a “True Cost to Own” for most vehicles, and you will see for yourself the average cost for maintenance and repairs.
This is especially important when you purchase a used vehicle that is close to the end or past the original manufacturer warranty. For example, if you purchase an extended warranty for approximately $3,000, on average you will receive up to THREE TIMES the value of the premium in car repairs alone.
And that’s not all. If you decide to sell or trade your vehicle, you can cancel the warranty and get a pro-rated refund based on time and miles. You have nothing to lose and will enjoy peace of mind that your vehicle is protected long past the original warranty.
TRUE STORY: Don’t make the same mistake as one customer. She didn’t see the point in extending the warranty on her vehicle despite the fact that she absolutely loves her car and has now owned it for over 10 years. To date, service records confirm that she has paid over $30,000 in maintenance and repairs. But if she had invested in an extended warranty and maintenance plan, she could have avoided most of these bills!
CAUTION: Be wary of unknown warranty companies that solicit you at home or even on your cell phone. In most cases, this is a scam and chances are, they will collect your premium over the phone with your credit card, and you will never hear from them again or they won't be around when you need to file a claim for a repair.
Be sure to check with your local dealer, and discuss the plan to best fits your driving needs. For instance, if you drive 20,000 miles a year, you should choose a warranty with less years and the most miles. If you don't put a lot of miles on your car, opt for the most years and the least total miles. Be sure to choose the plan that offers the most comprehensive coverage instead of basic engine, transmission, suspension plans. Sure, you will pay less for the basic warranty plan, but in the end you could pay more in repairs because - it never fails - the particular item that breaks on your vehicle isn't covered.
Was this helpful?
Subscribe to:
Posts (Atom)