Why You Should Get an Auto Loan Before Buying a Car

Buying a car can be an intimidating process, especially if you’ve never done it before. It requires research, negotiation skills, and a good intuition to get the car and price you want.

There are a lot of things that can go wrong if you aren’t careful. However, there are also ways you can move through the process more successfully. 

One excellent choice is obtaining an auto loan before you buy your car. Below are a few reasons why this may be the right choice.

You’ll Know What You Can Afford

Getting pre-approved for an auto loan has certain advantages you may benefit from. First, you’ll know exactly what kind of loan you’ll be approved for and what the interest rates will be. 

That will certainly help you gain some knowledge regarding budgeting for exactly what you can afford and what your price range should be. 

Without this information, you may only learn after you’ve entered deep into the car buying process when backing out may be somewhat awkward or impossible for you.

You’ll Improve Your Negotiating Position

One thing that can certainly make most people nervous is the negotiation component of the car buying process. However, with firmer knowledge, you won’t have to be so nervous. 

This would certainly be the case if you already know what kind of auto loan you will be approved for before walking onto a lot of an auto dealership, someone like On-Trac Auto Sales. 

When you know what kind of interest rates and monthly payments you’ll have, you’ll have a better position to negotiate to haggle until you receive a better deal on a particular car from that dealership.

You’ll Avoid Dealer Financing Markups

One thing you should be aware of as a car shopper is that the financing provided by the dealership is rarely a good deal. Quit often. There will be a significant markup for that loan versus what you would have to pay with outside financing. 

As such, obtaining an auto loan from another party before you buy your car is a real strategy for saving money that works. Over the loan's lifetime, this can add up to saving a large amount of money. Always try to find a better deal when you can.

Overall, obtaining an auto loan before buying a car has many significant benefits. This includes saving money, having better knowledge to negotiate for a better deal on a car, and knowing just how much of a budget you will have for an automobile. These benefits can make buying a car a lot easier and less stressful.

Why You Should Get an Auto Loan Before Buying a Car

Buying a car can be an intimidating process, especially if you’ve never done it before. It requires research, negotiation skills, and a good intuition to get the car and price you want.

There are a lot of things that can go wrong if you aren’t careful. However, there are also ways you can move through the process more successfully. 

One excellent choice is obtaining an auto loan before you buy your car. Below are a few reasons why this may be the right choice.

You’ll Know What You Can Afford

Getting pre-approved for an auto loan has certain advantages you may benefit from. First, you’ll know exactly what kind of loan you’ll be approved for and what the interest rates will be. 

That will certainly help you gain some knowledge regarding budgeting for exactly what you can afford and what your price range should be. 

Without this information, you may only learn after you’ve entered deep into the car buying process when backing out may be somewhat awkward or impossible for you.

You’ll Improve Your Negotiating Position

One thing that can certainly make most people nervous is the negotiation component of the car buying process. However, with firmer knowledge, you won’t have to be so nervous. 

This would certainly be the case if you already know what kind of auto loan you will be approved for before walking onto a lot of an auto dealership, someone like On-Trac Auto Sales. 

When you know what kind of interest rates and monthly payments you’ll have, you’ll have a better position to negotiate to haggle until you receive a better deal on a particular car from that dealership.

You’ll Avoid Dealer Financing Markups

One thing you should be aware of as a car shopper is that the financing provided by the dealership is rarely a good deal. Quit often. There will be a significant markup for that loan versus what you would have to pay with outside financing. 

As such, obtaining an auto loan from another party before you buy your car is a real strategy for saving money that works. Over the loan's lifetime, this can add up to saving a large amount of money. Always try to find a better deal when you can.

Overall, obtaining an auto loan before buying a car has many significant benefits. This includes saving money, having better knowledge to negotiate for a better deal on a car, and knowing just how much of a budget you will have for an automobile. These benefits can make buying a car a lot easier and less stressful.

4 Ways to Reduce Your Monthly Insurance Costs

Reducing your monthly insurance costs can seem daunting, but it doesn't have to be! There are many things you can do to lower your payments without sacrificing coverage. Keep reading to learn four easy ways to reduce your monthly insurance costs.

Review Your Policy Regularly

Your insurance needs can change over time, so it's important to review your policy regularly and ensure you're still getting the best possible rate. 

If you've made any major life changes (like getting married or having a baby), let your insurer know so they can adjust your coverage and give you an accurate quote.

Compare Quotes From Different Insurers

Don't just go with the first insurer you talk to. Get an insurance quote from a few different companies so you can compare rates and coverage options. 

Make sure you're comparing apples to apples, though; some insurers may offer seemingly low rates but skimp on coverage, so be sure to read the fine print before making a decision.

Raise Your Deductible

One way to lower your monthly payments is to raise your deductible or the amount you would have to pay out of pocket if you made a claim. 

Just be sure not to set your deductible too high, or you could have trouble affording it if you ever need to use your insurance. 

Make sure you feel confident that you will be able to pay your deductible out-of-pocket so you don't find yourself in financial trouble down the road.

Take Advantage of Discounts

Many insurers offer discounts for things like being claims-free, having multiple policies with the same company, or installing safety devices in your home or car.

Ask about any available discounts or options for bundling your insurance coverage when shopping around for new coverage, and make sure you're taking advantage of all the money-saving opportunities available.

Reducing your monthly insurance costs doesn't have to be difficult. By following these four simple tips, you can save money on your coverage without sacrificing protection. 

Reviewing your policy regularly, comparing quotes from different companies, raising your deductible, and taking advantage of available discounts are all great ways to keep more money in your pocket each month.

What Is Accounts Receivable Financing?

In today's business world, you know that owning a company can be more challenging than ever before, especially when it comes to paying the bills and buying new equipment and technology for your business.

Like many businesses that need financing, you may think a traditional bank or other lender is your only option. However, you may have overlooked an unlikely source of financing that's been under your nose the whole time, which is accounts receivable financing. 

What is this, and how can it help your business? Here's what you need to know.

Ability to Receive Early Payments

In essence, accounts receivable financing lets your company receive early payment on some of its outstanding invoices. Should you choose this form of financing, you will then commit some or all of your outstanding invoices to a funder who specializes in this area of business. When you do, you will receive early payment in return for paying a fee to the funder.

Selective Receivables Financing

Though there are other types of accounts receivable financing, such as asset-based lending and traditional factoring, you will probably do best if you opt for selective receivables financing. 

This is a good choice for staff agency business financing, since it gives you the freedom to decide which receivables you will select for early payment while also ensuring you will get paid for the full amount of the receivable. Best of all, financing rates for this option are usually lower, and it will not count as an additional debt against your business.

Improves Your Cash Flow

One of the biggest benefits of using accounts receivable financing is that it can immediately improve your company's cash flow. Rather than hoping your invoices will be paid on time by customers, you can get the money you need much quicker and more reliable. 

Doing so gives you the cash to buy new equipment, invest in new technology, or hire new employees. Consider talking to financial experts about this decision if you lack peace of mind.

Now that you know more about this source of financing for your business, it may be time to rethink your plans about putting off buying that new equipment, investing in new software, or hiring that new employee. With the cash you need in your hand, you can move forward and keep your business growing.

Proper Safe Storage and Other Methods of Protecting Your Valuables

We all have things that are especially valuable to us. While these things may have great monetary value, their real value is tied up in the emotions and memories they elicit from us.

Things like heirlooms, keepsakes, antiques, and rare collectibles may feel irreplaceable to you. When things are that important to you, you should take steps to protect them. Below are some strategies to use.

Safe Deposit Box

One thing you should be aware of is that banks and credit unions provide services apart from banking. One service they provide to clients is the safe storage of valuables on their premises. This is usually done within safe deposit boxes. 

Your valuables will be placed inside a metal box, and this metal box will then be placed inside the vault. You’ll typically be given a key used with a guard key to open the box when you want.

Home Safe

Still, you may want to keep your valuables in your home instead of a bank. That way, you’ll be able to access them more easily when you want. 

However, the risk of losing such valuables is more serious inside your own house than in a bank or credit union. It just takes being burglarized once. 

In this case, invest in a home safe that can be used to store your most valuable possessions. Without the correct combination, breaking into the safe will be nearly impossible. 

It will also be so heavy that moving it out of your home will be impossible as well. Purchase one from a safe company, someone like Safe & Knife Co., that can give you a firm guarantee that your possessions will be protected while in their safe.

A Hidden Compartment

In other cases, you may not even want anyone to be made aware of the fact that valuables are stored in your house at all. In this case, a hidden compartment in your home is what you want. 

You’ll be to store your valuables without anyone other than you knowing about it. Even robbers will be unlikely to detect their existence. 

This is most easily accomplished by building the compartment into a wall. Installing a safe into that compartment will increase the security even more. Place something like a bookshelf in front of it or a framed photo. No one will know it’s there.

Overall, consider how you store your most valuable possessions and whether or not you believe it’s safe enough. If you make the wrong choices, you could lose those important items forever. 

Options such as safe deposit boxes, home safes, and hidden compartments in your home can present excellent solutions for storing your valuables in ways that keep them safe and as available as you may need them to be.

Building More Financial Institutions at Scale: Sanjiv Bajaj's Solution to Building Financial Inclusivity

The scale of the Indian finance sector has transformed over the past few years, especially instead of rampant digitization; the rise of online payments and increased internet penetration has been unprecedented. Yet, more must be done if millions of people are brought under the ambit of 'financial inclusivity.'

As long as the bottom 40% of India's population remains excluded from financial services, India can not become a developed country. Many famous finance personalities in India have echoed this sentiment – but Sanjiv Bajaj, the Chairman and Managing Director of Bajaj Finserv, has been the flagbearer in many ways.

The recent spate of inflation, leading to uncertainty, can be detrimental to the common man's financial security – more so for those who remain underserved by the financial system. 

But Sanjiv Bajaj remains confident that the coming decade can still be favorable for India, as long as it creates the capacity to build more financial institutions like Bajaj Finance and prominent private banks – tens of them.

Often featured prominently in the top industry leaders list, Sanjiv Bajaj urged the Reserve Bank of India (RBI) to keep inflation in check. Raising high-interest rates would hurt the market. In 2022, the RBI raised the repo rate by over 90 basis points.

Who is Sanjiv Bajaj?

Sanjiv Bajaj is the Chairman and Managing Director of Bajaj Finserv – the financial services arm of the Bajaj Group that has contributed immensely to India's growth over the past century.

As a 4th generation entrepreneur and one of the leading finance business leaders in his own right, Sanjiv Bajaj has been instrumental in nurturing Bajaj Finserv for over a decade to become India's top financial services company. 

With a digital-first, differentiated, community-centric approach that puts the customer first and a culture that values excellence through innovative disruption, Mr. Bajaj is known for being the first to offer digital consumer financing, which helped change the financial services industry in India.

He is also the President of the CII (Confederation of Indian Industry) for 2022-23. He has been with CII at state, national and regional levels for many years. 

His efforts in guiding the financial ecosystem of Bajaj Finserv and working relentlessly in making his products and services reach every Indian household has firmly established him as one of the top industry leaders in finance. 

He is known for his insightful views on the industry, policy changes, reforms, and everything linked to the financial health of the country and the population – and truly believes that India needs more than 10 Bajaj Finances and HDFC Banks if India is to realize its true potential.

Why does India need 10 more Bajaj Finances?

The answer to this question is rather simple: India needs to expand its financial services footprint so that no one remains unbanked or underbanked, especially in the digital age.

In a recent interview with ET Now, Sanjiv Bajaj shared his views on the country's economy and inflation. According to him, the employee rate incentive plans, PLI scheme, private sector capital investment return, and debt reduction in the banking sector can help India in the medium term.

Since the outlook for the world has not changed and the government is not likely to cut spending, the RBI has to lead the race against inflation. Sanjiv Bajaj also thinks India will continuously see high inflation with increased interest rates. 

In addition, India could expect a monsoon, bringing inflation down by 50–75 bps and helping reduce food prices. He attributes this as another reason India needs more than 10 Bajaj Finances.

Like other top industry leaders, Sanjiv Bajaj also thinks that problems in the supply chain will keep pushing up inflation, which is already high because of how the economy is set up. 

The Indian government is also working to lower import taxes and control exports when necessary. But the general population needs to regulate oil and food prices in India, and home ownership needs to go down for middle-class Indians.

Conclusion

India needs more large-scale financial service companies like Bajaj Finance - the most obvious solution to the country's challenge in enabling financial security for 1.4 billion people. This is all the more important as inflation is here to stay and often heavily depends on factors outside India's control.

In light of this, Sanjiv Bajaj has also listed four factors that will be important to developing robust financial services. The first is getting financial services to people who do not have access to them yet. 

Second, we need to build up our skills. India needs more non-banking financial companies (NBFCs) and banks. Third, innovation will make a big difference as India is working hard toward becoming an economic champion. 

The fourth factor is the desire to create bigger things on a global scale. Once these parameters are accomplished, India can steam ahead, ace its financial inclusivity goals, and crank up the economic engine from its slumber.

Despite the advent of fintech and the rise of digital finance in India, many population segments remain underserved. As their needs for financial inclusivity and security grow – especially in light of growing inflation – so will India's need to build more financial services institutions. 

Sanjiv Bajaj – one of the most revered financial leaders of our age – has chipped in by saying that India needs 10 more companies like Bajaj Finance to realize its true potential. 

In this blog, we delve deeper into understanding the reason behind the need for more finance companies and the way forward.