The most common concern in purchasing any used vehicle, of course, is the price, interest and payment plan (if applicable). Obtaining a good deal is a matter of deciding what you can afford budget wise. However, one of the most often overlooked facets to used car purchases is not the base price or monthly payments, but the condition of the vehicle, resale value, fuel economy (engine and vehicle size) and repair expenses for parts and labor. Your job stability and frequency of income also plays a major part in determining what is truly affordable for your family budget. Put all of these considerations together before signing that contract, a contract that could have you locked into steep long-term payments, with a vehicle that will soon need extra service and major repair.
Job and Budget Concerns
A permanent, full-time job is the best assurance when entering into a used car contract, or any major purchase. Good to great credit scores are also beneficial, if not a solid requirement. A decent part-time job can be okay, provided you have the added income of another household member who can shoulder some of the financial burden. If you have a job that pays on commission, you will need to know your accurate average draw per month (after taxes), and factor in seasonality income, if it applies. The ideal time to sign a used car contract is when you have just paid off another major expense, like a doctor bill, landscaping modification, room addition, or another car payment. Check your emotions¯obey your logic¯Time your used car purchase when you know, emphatically, that it will not put a strain on your overall budget and expenditures.
Dollars and (Sense)
According to financial expert's rule of thumb: your total debt payments shouldn't be any higher than roughly 36 percent of your gross yearly income. If you make $50,000 per year, your totaled debt payments should not exceed a yearly income of $18,000. This is a base average, but allows for a safe margin for just about any budget. Divide the figure by 12 and it will indicate $1,500 per month. So if your total debts for the month are $1,300, then it leaves room for only a $200 monthly car payment. Avoid contracts that stipulate 60 or 70-month long-term durations. A basic rule of thumb states that you should be able to pay the vehicle off in three years or less. Also try to keep your interest rates down, and this will depend on your credit rating. Anywhere from 5 to 9 percent will be much more digestible than 13 to 19 percent. Get an insurance quote on the vehicle before you make the purchase.
Make Model and Year
Owning a BMW or Audi might give you an ego boost and impress the neighbors, but you will end up paying extra for service, parts and labor down the road. Exotic foreign make vehicles generally have much higher repair costs than domestics, like Ford or Chevrolet. Dealership repairs are even higher, where per-hour labor costs can approach triple digits. Luxury cars equipped with extras like seat warmers, electric antennas, light-sensing headlights, GPS, and other electrical add-ons will most certainly be factored into the price. Ask yourself if you need these options and are willing to pay extra for them. Vehicles that are 3 to 5 years old (generally) are good used car bets, provided the mileage does not exceed around 150,000 miles. The lower the mileage, the better, unless the vehicle has a very poor service record or major visual damage. Consider smaller four-cylinder and V-6 options for engine size. These smaller engines have met with vast improvements in horsepower and fuel economy, even in the last few decades. Refer to the Kelly Blue Book for used value, which can help you determine the best vehicle for resale.
Visual Condition
Tires should be a first consideration when visually inspecting the outside of the vehicle, since replacements can run into the hundreds of dollars. Bald tires show neglect and raise safety issues. The horizontal bridges (or wear bars) should be visually prominent across the breadth of the tire tread. You would like to have at least half of the original tire tread showing, or between 4/32 to 6/32 of an inch remaining. All navigational lights, brake lights, directional, head and taillights should be operational, with lenses intact. The window panes, especially the front, should be free of blemishes, cracks and chips. Test the structural integrity of the car exterior by knocking on the body panels: doors, fenders, hood, trunk and roof. This simple test can determine if body putty has been used as a repair procedure after an accident.
Major Components and Engine
Have a certified mechanic check the vehicle out before purchase. It's well worth the investment and precaution. Or a potential buyer can perform their own cursory inspection. Look for evidence of major fluid leaks, like transmission fluid, antifreeze, brake fluid, gear and engine oil. Tapping or clacking sounds can point to worn or collapsed hydraulic lifters, or solid lifters in need of adjustment. White-blue smoke can indicate excessive oil consumption, while black smoke and rough idle or starting, can signify excessive fuel consumption. Any noise originating from the front end can point to worn ball joints or A-arm bushings, tie rod ends or other worn suspension parts. A vehicle should not drift or pull as it is driven down a straight, slightly crowned road. Any vehicle pull can denote a worn suspension part or a need for alignment.
Service Records
Obtain the service records of the vehicle beforehand, and find out if the vehicle has been properly serviced at regular intervals. Door jamb stickers can indicate light service intervals, like oil changes and tuneups. Go online to use a vehicle history report, such as Carfax. By listing the vehicle's license plate or VIN (vehicle identification number) in the Carfax database, you can obtain information on the vehicle's sales history, accident record, and major engine and component repair information. Such a vehicle history report will also warn against liens and vehicle theft, verifying that it has a "clean" title.
Access to Finance for Women, G20 - Unlocking Economic Potential - huffingtonpost.co.uk
The G20 represents the world's most important industrialised and developing economies and is the premier forum for international economic growth and development across the globe. Next month's meeting in Mexico brings an opportunity for the G20 to recognise the critical role that women play in global economic growth and stability in roles as producers, consumers, employees, and entrepreneurs. It is the G20's duty to call for women's inclusion to ensure they receive access to finance, markets, ownership of land, and the education and training that will allow them to operate in today's economy.
In these challenging financial times the world cannot afford to ignore the collective potential of women to contribute to economic development whilst improving the wellbeing of their families. Their business acumen is very often underpinned by a drive not only to improve their own future but also to provide for their families.
The meeting of the G20 leaders is an important event when changes can be made and challenges discussed. This year advancing financial inclusion for economic growth has been established as top priorities for the summit.
Women all over the world are constantly faced with the inability to provide for themselves and their family, blocked by discrimination and cultural norms forcing them to face an unnecessarily bleak future. Although women are often the main provider for the family, they are disadvantaged by access to finance or no access at all. If this was rectified they would be able to pay for their children to go to school and enable the next generation to have a better future, as well as be more stable providers for the family.
Agriculture plays a critical role in millions of women's survival. By giving a women access to finance in a rural village, she can purchase a solar panel and start a small business through her neighbours paying to charge their electrical goods, or she can purchase livestock to feed her family and produce goods to sell. Equal access to finance will open many doors for these women who currently have nowhere to turn and are discriminated against because of their gender.
The United Nations Food and Agriculture Organisation and Farming First have produced an interactive graphic showing how women play a leading role in agriculture around the world and the challenges they are up against due to inequality. Investing in rural women has been proven to dramatically increase productivity and positively impact their lives. This doesn't just help women but also the family they are providing for and the communities they are members of.
On average in developing countries, 43% of the agricultural labour force are women and account for an estimated two-thirds of the world's 600 million poor livestock keepers. These women are discriminated against by societies, laws, tradition and access, that prevent them from owning and inheriting land.
By removing these gender discriminations it would dramatically improve food and nutrition security globally, and enable millions of women to provide for their families.
There are signs of progress with the G20 Finance Ministers recognising the need to increase women's access to financial services. This has been helped by the organisation La Pietra Coalition who has been asking the G20 to take action to advance women's financial inclusion, by endorsing the recommendations of the IFC and GPFI, and to insist that progress towards those commitments for women be measured and reported publicly.
I urge banks to work to ensure women have access and support to be able to obtain finance. I call on the G20 leaders to create the environment where women receive the support they deserve and require in order to continue to build on their contribution to the global economy. If the G20 collaborates with banks we can really start to tackle the disparities that exist in the global market and work towards creating a better environment for women.
Follow Baroness Mary Goudie on Twitter: www.twitter.com/BaronessGoudie
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