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The automotive industry is ever-changing and is constantly evolving to keep up with the world around us. Advancements in connectivity, autonomous driving, and fuel storage all are shaping the way we think about transportation. So what exactly are the top automotive trends?Let’s take a look at the latest trends in the automotive industry.Advanced Driver Assistance SystemsAs technology becomes more and more advanced, it can be used to help keep drivers safe on the road. Advanced Driver Assistance Systems (ADAS) are systems that can help drivers detect accidents and assist in driving and parking functions. There are a lot of different ADAS systems, including:Lane keep assistAutomatic lightingBlind spot detectionAdaptive cruise controlLane departure warningsReverse brake assistForward collision avoidanceCross traffic alertsThese systems rely on innovative technology including the use of software, ultrasound sensors, lidar, and radar. As these systems become more and more advanced, they will be used in autonomous, self driving vehicles. But for now they are being used in many new car models and are becoming increasingly standard in base models. About one third of the cars sold in the US, China, Japan, and Europe have ADAS features.Self Driving CarsClosely connected to the concept of ADAS features is the increased push for self driving cars. ADAS features are divided into six categories to describe the level of autonomy of the car. The categories are as follows:Level 0, No Driving Automation. The car can provide information to the driver but cannot control the car. This may include features like parking assist, lane departure warnings, and rear-cross traffic alerts.Level 1, Driving Assistance. The car can take control over one functionality. This may include adaptive cruise control or emergency brake assist.Level 2, Partial Driving Automation. The car can take over multiple functionalities. This may include highway assist and autonomous parking.Level 3, Conditional Driving Automation. The car can make informed decisions but the driver is still required to be alert and present to manually take over.Level 4, High Driving Automation. The car can make informed decisions and intervene should something go wrong. A driver can choose to manually override. Level 5, Full Driving Automation. The car will fully drive itself without the need of a driver. These cars will not have steering wheels or gas pedals, they will chauffeur people around independently.Level 5 automation is the goal of many car makers, but most cars are still around level 2 or 3. Certain car manufacturers including Volvo are working on level 4 automation, although local legislation will dictate how these cars can operate in their jurisdictions.The future of cars is self driving and autonomous, and these advances are being made today.Improved ConnectivityAs our wireless infrastructure improves there is a push in the automotive community to have more connected cars. There are seemingly endless possibilities to what improved connectivity means for the future of cars. Not only are cars being connected to other devices within the car, such as the driver’s phone and smartwatch, but they are connected to the internet at large. Currently, improved connectivity is being used in the following ways:Send vehicle health reportsGet real time directionsWarn of issues with the carIntervene to prevent a breakdownThis type of technology is quickly developing and improvements in connectivity are a major trend in 2022 automotive technology.Human Machine InterfaceHuman Machine Interfaces, or HMIs, provide an interactive experience for drivers and passengers. While we use HMIs everyday (your touchscreen and keyboard are just two examples), HMIs are constantly evolving in the automotive world. From dashboard touchscreen displays to voice recognition to augmented reality, carmakers are pushing boundaries on what HMIs can be used for and how they can make the driving experience better.Increased Usage of Electric Fuel CellsFuel cell electric vehicles (FCEVs) are quickly becoming the most popular trend for electric vehicles. Fuel cells generate energy through electrochemical combustion as opposed to combustion. Hydrogen and oxygen are combined to generate electricity. Fuel cells have been proven to be more efficient than internal combustion engines and produce only water as a byproduct. This makes them more environmentally friendly and less prone to breaking down. Additionally, they have more instantaneous torque and provide smoother, more consistent power.Many countries are pushing this new wave of electric vehicles, including the United States, Japan, China, Germany, and South Korea. This is because electric vehicles release 54% fewer CO2 emissions than traditional gas cars (even the newest vehicles). In the United States today there are over 1.2 million electric vehicles, and this number is expected to grow to nearly 20 million by the year 2030.Car Subscription ServicesThere are currently five automakers that are rolling out subscription features for their cars– Audi, BMW, Cadillac, Porsche, and Tesla. These subscription services require owners to pay to use or unlock certain features of the car. Owners will have a monthly or yearly fee to use features such as voice recognition and driving assistance.While subscription models are nothing new–after all, don’t we all have Netflix?–subscription models for cars open a whole can of questions and concerns.Automakers want you to be paying customers for life. By switching to a subscription model, they will ensure that you will be a paying customer even after your car is paid off. On the plus side, this model can incentivize automakers to stay up to date on software updates and help owners keep their current cars for longer.But this also raises concerns over safety and fair treatment of consumers. Consumer advocates worry that a charge for safety features will price owners out of safety features, making the cars less safe overall. Because of this, there is a push to ensure that all subscription features are convenience features, and that certain features become base level across the board. These base level features would ideally include automatic emergency braking, forward collision warning, and blind spot warning.But until legislature is put in place to restrict or standardize the subscription model, we can expect subscription models to become more and more commonplace.Those are the latest trends in the automotive industry.The automotive industry is quickly changing and evolving to keep up with technology. And while it’s amazing to see how much is changing, one thing is constant: people will always need to save money on their car loans.If you are overpaying on your monthly car payment (and you probably are) then get in touch with Auto Approve today! Refinancing your car loan with Auto Approve can save you hundreds of dollars a month–so don’t wait, get started today!GET A QUOTE IN 60 SECONDS

Memorial Day is just around the corner, and we all know what that means: summer is almost here! Which also means that summer vacation is on everyone’s minds. But with the cost of everything creeping higher and higher thanks to recent inflation, the cost of summer vacation is also on everyone’s minds. So today we are talking about how you can free up some of your hard earned money and use it to relax.Here are our top seven tips to free up some money for your summer vacation.Tip #1: Create A Vacation Savings Account and Firm Vacation BudgetPlanning for your summer activities is the key to success. Creating a separate account that is just for your vacation spending can help ensure you have enough funds for whatever your vacation plans are. First, decide on the basics of your vacation: the what, the where, and the when. Then do your research. Set aside a few hours a week to do research and make sure you have a good sense of the costs of your desired vacation. And always add a few hundred dollars as a buffer. Remember: emergencies happen on vacations as well.Now that you know how much your vacation will cost, you can create your savings goal.Modify your existing budget to include your vacation savings account. (You have an existing budget, right? If not, be sure to create one using our tips here). Make sure your vacation savings are separate from your rainy day fund – you never want to sacrifice your emergency fund for some fun in the sun. Based on the time you have until your vacation, you can determine how much money to set aside every week to ensure you have enough saved by the time your vacation rolls around.Be sure to budget for the following for any vacations:Round trip travel expensesLodgingLocal transportationMealsActivities Souvenirs/ extra spending moneyCreating a budget for your vacation is key to making sure you have the necessary funds to enjoy your vacation without sacrificing your financial wellbeing.Tip #2: Edit Your SpendingGo through your personal budget carefully and see what you can edit out. Are there subscription services you don’t use? Cancel them. Do you buy brand names at the grocery store? Try switching to generic. Do you use coupons? Go online to find deals on your favorite products.Here are a few other tips to cut your spending:Use store rewards cards for extra savingsCook at home more oftenCombine trips out when possible to avoid extra mileage (and extra gas)Find a cheaper cell phone planShop second handReduce your utility use (such as electricity and water)Ditch your cable plan or satellite dishThese are all small changes that can result in big savings. Get creative when looking at your budget and look for other ways to cut costs and in turn save for your summer vacation.Tip #3: Set Up An Automatic Transfer To Your SavingsOnce you have your vacation savings account set up, you know how much money you need to save. Adjust your direct deposit to allocate some of your paycheck to your vacation fund. Even if it’s just a small amount of your paycheck, it can add up over the weeks and months.Tip #4: Refinance Your Car LoanRefinancing your car loan is a great way to free up some money for your summer vacation. You can save money by:Refinancing to a lower car loan APR. If our credit score has improved since your initial car loan, there’s a good chance you may qualify for a lower car loan APR. You may also qualify for a better APR if the market rates are lower than they were when you initially got your car loan (and since we are still seeing historic lows for car loan rates, the market rates are most likely lower).Shortening your repayment period. By shortening your repayment period, you will pay less interest overall in the life of your loan. Your monthly payments will increase, but you will be saving money overall.Lengthening your repayment period. By lengthening your repayment period, you will decrease your monthly payments. You will end up paying more money over the life of your loan, but you will save money in the short term, money that you can put towards your summer vacation fund.If refinancing your car sounds like a good option for you, the experts at Auto Approve can help you get started! We have relationships with lenders across the country and can secure you the best car refinance deals possible. Tip #5: Count Your PenniesLiterally! Saving all of your change may seem old fashioned, but saving up your change can result in some real money. Whether it’s your childhood piggybank or a jar on your dresser, have a spot where you can keep all of your loose change and exchange it at your bank before your vacation.Tip #6: Book Ahead Of TimeIf your vacation involves airfare and hotels, be sure to look for reservations well ahead of time. The earlier you book your flights and hotel, the better deals you will secure (and the more options you will have!) To get the best deals on flights, you can set up an alert on Google Flights to tell you when the airfares are the cheapest. Flying on a Tuesday, Wednesday, or Saturday will usually get you the best rates, so try to be flexible with your travel dates to secure the best deals. To get the best deals on hotels, you can use lodging search engines like Hotels.com or Kayak.com to get the lowest rates.Tip #7: Reserve “Unexpected” Money For Your VacationWhile tax refunds and job bonuses aren’t exactly “unexpected”, they are pools of income that most people do not typically have allocated for certain things. Use these funds to pay for the vacation you’ve always wanted. Those are our top tips for saving money and having your best summer to date.Summer is just around the corner which means it's crunch time when it comes to financing our big plans. We hope these tips can help you loosen up some space in your budget so you can fully enjoy the sun and fun the summer brings!Refinancing your car loan is a great way to save hundreds (if not thousands!) of dollars per year, so be sure to contact Auto Approve today to start saving. Just think of the amazing vacation you could pay for simply by refinancing your car! So don’t wait – get your free quote today!GET A QUOTE IN 60 SECONDS

Inflation has been a hot topic of conversation lately, and for good reason. Inflation is the highest it’s been in nearly four decades, and it’s affecting every part of our day to day lives.Today’s inflation is exacerbating many people’s money issues, causing more and more strain on many household budgets and leaving many on the hunt for ways to save money. But what exactly is inflation, and why is it rearing its ugly head now?Today we are talking all about inflation – what it is, what causes it, and how you can protect your money.What is Inflation?Inflation is the increase in the price of goods over a period of time. It is natural and can be a good thing – to a certain extent. Economists believe that a little inflation signifies a healthy economy with healthy supply and demand. If consumers believe prices will rise slightly, they are more apt to spend their money at present. There is no cut and dry rule for what constitutes healthy inflation, but economists and policymakers generally accept that 2% inflation is acceptable.When inflation gets out of hand and starts exceeding the 2% mark, that’s when the economy takes more of a hit. Our current inflation rate is around 8%, quadruple what it should be. So what caused this drastic change?What Causes Inflation?Inflation has many causes, some of which are more complex than others. In general, these causes can be broken down into two categories: demand pull inflation and cost push inflation.Demand Pull InflationDemand pull inflation is when the demand for items is greater than the supply of those items. When demand gets ahead of supply, prices increase as upward pressure is applied. Here are a few causes of demand pull inflation:Marketing and New Technology. When a new product or new tech comes out, the demand usually outweighs the supply, resulting in demand pull inflation.Growing Economy. When the economy is growing and expanding, unemployment tends to drop and people have more money in their pockets. This results in increased demand for items, and therefore an increase in prices.Government Regulations. Certain government regulations, such as tax subsidies, can cause demand to rise. If that demand is higher than the supply levels, demand pull inflation can occur.Expanded Money Supply. If the Fed prints money at a higher rate than the economy is growing, then more money is in circulation. Since there is more money in circulation for the same amount of goods and services, demand pull inflation occurs.Cost Push InflationCost push inflation occurs when the cost of materials and wages increases. These costs are then passed on to the consumer, resulting in inflation. Here are a few causes of cost push inflation:Supply chain issues. When materials are scarce, the cost of the materials will increase due to supply and demand. This is one of the main contributors of our current hyper-inflation. Rising wages. When wages increase, either as a result of government regulation or as a result of competition for workers, it results in a higher cost of production. It is important to note that this is a debated area in the world of economics. Many economists believe that higher wages across the nation will cause an increase in demand that can offset inflation.Government regulations. Certain government regulations, such as building regulations and tariffs, can cause the cost of production to rise, costs that are then passed on to consumers causing cost push inflation.Change in exchange rate. If the value of the U.S. dollar loses value in relation to foreign currency, imported goods become more expensive to buy. Since most products in the United States are imported, this causes cost push inflation.Our current drastic inflation is a result of both demand pull inflation and cost push inflation. Is Inflation Good or Bad?While it a little inflation, as mentioned above, can be ok, there are definitely some downsides. Let's look at the possible consequences of inflation.When inflation occurs, it causes a decline in purchasing power. This leads to a cycle where: Consumers spend less money → Businesses cut back on investing and hiring → Higher unemployment rates and reduced spending The bottom line is that when inflation occurs, it can be hard to get out from under. But what does this mean for you? Inflation has three major effects on consumers in their everyday lives:Products are more expensive. Prices rise due to increased wages, supply chain issues, and lowered exchange rates. Money does not stretch like it used to, putting more of a strain on everyone’s budgets.Loan interest rates increase. Interest rates increase in part because of the Fed’s response to inflation. To cool down the economy and curb inflation, the Fed decided to increase the fed funds rate earlier this year. This rate serves as a benchmark for interest rates nationwide. This makes it harder and more expensive for people to buy houses, cars, and get personal loans. Returns on savings decrease. Savings account interest rates hovers just above 0%, so any interest that you might accrue is quickly outpaced by inflation. In short, every dollar matters more than ever in times of inflation. What Should You Do When Inflation is High?Budgets are tighter and uncertainty runs rampant in times of inflation. But there are some steps you can take to protect yourself from the effects of inflation and make it through these financially difficult times.Make a Budget (and Stick to It)While it’s not the most exciting task in the world, making a budget is more important now than ever. A little planning can go a long way in keeping your spending (and saving) on track. Simply follow our easy guide to budgeting to create a realistic blueprint for your finances.Determine your income.Determine your expenses.Budget for your needs.Budget for your savings and rainy day fund.Budget for your wants.Review your budget on a monthly basis to maintain.For a more in depth guide on budgeting, you can check out our blog post here. Be sure to include a rainy day fund in your budget; experts recommend having six months worth of expenses tucked away. Rainy day funds are important, even when budgets are tight (in fact, they are even more important when money is tight because you are less likely to be able to handle a financial emergency).Pay Off Your DebtsNow is a great time to focus on paying off any variable debt that you have, such as credit card debts and personal loans. Since these rates can change based on other benchmarks, it’s a good idea to pay them off so that you are not subjected to increased rates. Include this as an item in your budget to ensure you prioritize it.Look into RefinancingHigher inflation rates tend to lead to higher interest rates. Car loans are not directly affected by the fed funds rate, and the competitive nature of the car loan industry makes the interest rates more stable than rates in other industries. But chances are the rates will increase over the next few years, as we are still experiencing incredibly low rates for refinancing.  Refinancing your car to a lower APR can save you a lot of money in the long run and help you stretch the money in your budget. How do you know if it’s worth it to refinance your car loan? Easy! If any of the following apply to you, it’s worth considering vehicle refinance.If you have a higher credit score than you did when you originally got your car loan.If the trending market rates are lower than they were when you originally got your car loan.If you want to stretch out your loan payments over a longer period of time.If you want to add or remove a cosigner from your car loan.Vehicle refinance can free up hundreds of dollars in your monthly budget. And in the era of hyper inflation, that can make a huge difference in your day to day life. If vehicle refinance sounds like a good idea to you, contact Auto Approve to get a free quote today!Consider Investing in BondsBonds are a great investment to make in an inflated market because they are guaranteed to keep pace with inflation. Since they are fixed rate investments, they are adjusted for inflation, making them a safe investment in uncertain times. Consider an I-bond, which can be cashed out after a year, or a Treasury Inflation-Protected Securities bond (TIPS), which can be cashed out after two years.And that’s everything you need to know about inflation.We hope these tips will help you navigate the waters of our inflated economy. Understanding how inflation works is important because it can help you protect your money and your investments. Inflation changes how we think about our money, making it a time to hold off on riskier investments and instead prioritize budgeting, saving, and cautious investing.Refinancing your car loan is a great way to save some of your hard earned cash. If rates have dropped since you initially took out your car loan (and they probably have), now is a great time to consider refinancing. Get in touch with one of our refinance experts at Auto Approve today to start saving today!GET A QUOTE IN 60 SECONDS

Credit scores always seem like a bit of a mystery. How are they calculated? Why do they seem to randomly increase or decrease?That's why, today we're talking all about FICO scores; how they are calculated, what causes them to change, and why having a good credit score is so important.And, perhaps most importantly, what we can do to increase our credit score. After all, whether you want to buy a house or refinance a car loan, your credit score matters.Let’s look at how FICO credit scores are calculated and how you can increase your score.A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. The number is between 300–850 and indicates a consumer's creditworthiness. The higher the score, the more likely a person is deemed to pay back their loan. How Credit Scores are CalculatedCredit scores are calculated based on 5 different categories. Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)All of these categories contribute to your credit score, but some have a lot more weight than others.Payment HistoryDo you pay your accounts on time? Do you miss payments? How many days past due are your bills? These are factors in your payment history score. If your payments are over 30 days late, your lenders will typically report it to the credit bureaus. You want to have a high proportion of on-time, full payments to make your payment history score high. Amounts OwedThe amounts owed category is a mix of how much money you owe, how much money you have available to you, and the number and types of accounts you have. An incredibly important factor in this is your credit utilization ratio, which is a ratio of how much money you owe compared to how much money you have available to you. This ratio should be less than 30%.Length of Credit HistoryThis category looks at how long you have had open and active accounts. How long have your credit accounts been established? How long has it been since you used certain accounts? The longer you have a history of having open accounts and consistently paying them, the higher your score will be.Credit MixYour credit mix looks at how diverse your accounts are. Healthy credit mixes can include installment loans, mortgages, car loans, credit cards and retail cards. Having a good mix will give you a better score.New CreditThis category looks at how many new accounts you have. If you have a short credit history with many new accounts, this will count against you. What Causes a Credit Score to Change?There are three credit bureaus that calculate credit scores: Experian, TransUnion or Equifax. Creditors typically send updates to these credit bureaus monthly. There are many things that can cause a credit score to change. A missed or late payment, paying off a debt, or closing an account are just a few things that can change your score. But sometimes it feels like you really haven’t done anything different and your score has fluctuated. No missed payments, no closed accounts. Well, the reality is that your score is always fluctuating. This is because if you are consistently paying your bills and consistently using your credit, things are going to shift one way or the other.Here are some of the most common reasons your credit score will fluctuate.You reduced your overall debt. If you have paid down some of your accounts, such as your mortgage or car loan, it reduces your overall debt. This will increase your score even though you haven’t necessarily done anything (besides paying your bills regularly).You reduced your borrowing limit. If you go for a long period of time without using one of your lines of credit, it could trigger the account credit limit to be lowered. This will increase your credit utilization ratio, which will have a negative effect on your score.You paid off a loan. Wait, isn’t that a good thing? Well yes and no. It’s great to have one less bill every month and one less headache, but when the loan is paid off, it affects many parts of your credit score. It will cause your credit mix to change, your overall debt to reduce, and your borrowing limit to reduce. Also, if you paid your account on time it will no longer factor into your score as heavily. Time has passed. Time simply passing will cause your score to change. If you are not keeping your accounts active, it will count against you. A negative event expired. If your house was foreclosed on or you had to declare bankruptcy, this appears on your credit report. And it stays for anywhere between 7 and 10 years, depending on the event. As time goes on, their impact is reduced, and eventually they will be wiped from your report.Identity theft. If there is a big swing in your credit report, it's possible that someone is using your credit to open unauthorized accounts. If you suspect this, request a copy of your credit report immediately and talk to the credit bureau.Why is Good Credit Important?So we know how credit scores are calculated, but why are they so important? The truth is good credit means a whole lot these days. Again, having a good credit score indicates to lenders that you are creditworthy and will pay back your debts. Having a good credit score can help with the following:Lenders will approve you for lower interest rates on credit cards and loansLenders will be more likely to approve youLenders will give you higher credit limitsInsurance companies will give you better insurance ratesLandlords will approve you for rentals more easily You will have more negotiating power for loans and accountsHow Can I Increase My Credit Score?If you want to increase your credit score, there are a number of things you can do in the long term and the short term. Make On Time PaymentsMaking consistent on time payments is the most effective way to increase your credit score. Remember, payment history makes up for 35% of our credit score, so this category is extra important as it carries the most weight. Try to set up for autopay if possible to ensure that you don’t miss a payment.Request Higher LimitsOftentimes credit cards will raise your limits automatically throughout the years. But it doesn’t hurt to ask for your limit to be raised. Raising your credit limit will raise your available credit and reduce your credit utilization score. This can score you some extra points on your score, as this part of your credit score accounts for 30% of your total score.Pay Down Debt StrategicallyYour credit utilization ratio looks at your overall debt compared to available credit, as well as your debt to available credit for each account. So if you have one account in particular that has a higher ratio, prioritize paying down that debt first.For example, say you have two credit cards. One has a limit of $20,000 and a balance of $5,000. The credit utilization ratio for this account is 25%. The other credit card has a limit of $10,000 and a balance of $3,500. The credit utilization ratio for this account is 35%. You should prioritize paying down the debt on the second card to reduce that credit utilization ratio.Check Your Credit Report and Dispute ErrorsYou should get in the habit of requesting your credit report three times per year. It is free to do so once per year from each of the three credit bureaus. When you get your report, look over everything carefully. Cross check your payment records and credit limits and make sure nothing is misreported. This will also help you catch any fraudulent activity that may be brewing.If you notice any issues or irregularities, report them to the credit bureaus immediately. They have 30 days to investigate and respond, so the sooner you report any issues, the better.Refinance Your Car LoanYou are probably wondering “does refinancing affect credit scores” – and the answer is yes. In fact, a great way to improve your credit score is to refinance your car loan. It will not instantly raise your credit score (on the contrary, the hard inquiry on your account will temporarily ding your score). But refinancing your car loan can help you out in the long run. Refinancing your car loan when market rates are low will help you secure a lower car loan APR. And this can save you lots of money every month, not to mention overall. It will ultimately free up more money every month so that you can pay off other debts and ensure that other payments will not be late. And that’s everything you need to know about credit scores.Put in the time and effort to make sure you have a good credit score. It will pay off tenfold in the long run. If you have a good credit score but want to bump it up to the next level, consider refinancing your car with Auto Approve. We can help you save loads of money every month, and who couldn’t use some extra cash?GET A QUOTE IN 60 SECONDS

A few years ago, you decided to lease a car. You weren’t quite ready to commit to buying a car, and the more affordable leasing payments made much more sense. But now it’s three years later and your lease is up. And you can’t bear to part with your car for one reason or another. What do you do now?Today we’re talking all about car lease purchase – the whys, the whens, and the hows.Here's What Happens When You Lease A CarFirst up, how do car leases work?Think of your car lease as a long term rental. You do not own the car, but instead pay to use the car. The company that owns the car will draw up a lease agreement that outlines all of the conditions of your lease. Car leases will typically outline the following:The initial payment. Think of this as your first and last month’s rent. This will include your first month’s payment plus any drive-off fees that the leasing company charges. They will also deduct any rebates or trade-in credits that may be offered.The lease length. How long will you use the car for? This typically ranges between three and five years, but it is possible to get shorter or longer leases.The capitalized cost. The capitalized cost (also called the cap cost) is the selling price of the vehicle. Your monthly payments will be based on this amount.The lease residual value. The residual value is the amount that the car will be worth after depreciation. When you lease, you are essentially paying for the depreciation of the car during your use. The money factor. This is essentially the interest on the lease. Instead of being expressed as a percentage, it is expressed as a very small decimal. Multiply the number by 2400 to get an approximation of what the APR on the lease is.The monthly payments. The monthly payments will depend on the capitalized cost, the residual value, the money factor, and the length of the lease.Excessive use fees. All leases have limits to the amount of miles you can put on the car. Annual mileage limits are typically 10,000 miles, 12,000 miles, or 15,000. If you go over that mileage limit, you may face some hefty fees.Early termination fees. If you need to get out of your lease early, there will be fees to do so. Make sure you understand what you will be charged should this happen.The car lease buyout price. The cost to buy the car at the end of the lease should be outlined in your lease agreement.In addition to these nitty gritty details, there will be limitations and restrictions outlined in your lease agreement. These will vary greatly from lease to lease, but they will most likely include the following:Customization to the car. Since you don’t own the car, you cannot customize it however you would like. This means no custom paint job, no window tinting, no new stereo system. You must purchase the car to make it your own.Maintenance. You are responsible for the upkeep of the car. There will be a section of the lease that reviews exactly what you are responsible for maintaining. Oftentimes leases will cover routine maintenance, such as oil changes, and fix normal wear and tear issues. But this will vary from lease to lease. Excessive wear. Your car lease will outline what is considered normal wear and tear and what is considered excessive. If they deem there has been excessive wear and tear on your car, you may be responsible for extra fees.If you drove your car a lot during your lease and racked up excessive mileage fees and excessive wear and tear fees, it might make more sense to buy your car. Lease purchase can be a good move if you are facing thousands of dollars in fees.Can You End A Lease Early?If you’re wondering how to get out of a car lease early, there are a few different ways to do so.Early Lease TerminationIf you are unhappy in your lease and need to get out of it ASAP, you can simply terminate the lease. You will be responsible for whatever payments and fees are outlined in your lease agreement. The Consumer Leasing Act requires for all leasing companies to transparently list what fees and payments you are responsible for by terminating the lease early. The early termination fee will take into account how much time you have left on your lease. It may also include vehicle disposal fees, transfer fees, and taxes. And on top of this you will still be responsible for any past due payments, late fees, and parking tickets that may be outstanding. If you are contemplating early lease termination, you should call your leasing company to get an exact cost of termination. Because of how lease payments are structured, the earlier you terminate your lease, the more expensive it will be for you.Lease TransferAnother option to get out of a car lease early is to transfer the lease. This may not be permitted in your lease agreement, so be sure to check the fine print. If it is allowed, you will have to make sure that the new lessee meets the credit requirements of your lender. There are many companies that will match people looking to transfer their leases to people looking to take over the leases. Websites such as swapalease.com and leasetrader.com are great places to start.Lease BuyoutIn many cases, a car lease buyout is the best way to get out of a lease early. The cost to purchase your car early should be outlined in your lease agreement. There may be additional fees to end the lease, but it still might be worth it for you depending on why you are looking to end your lease. If you buy your car early and sell it privately, you might make out better financially. Should I Get Out of My Lease Early?There are pros and cons to ending a car lease early. If you have a change in life circumstances that make having a car difficult, you should do the math and see if ending your lease makes sense. But if it’s just a case of not liking your car as much as you thought you would, you might be best served to keep the lease until the end of your term.If you want to lease a car, do a lot of research ahead of time to make sure you will still want it in a few years. Choosing The Right Car For Lease If You Want To Buy LaterLeasing a car with the option to buy is a great way to get a new car with lower upfront monthly payments. The monthly payments will be significantly lower than if you purchased the car new from the beginning. But how do you pick the right car for lease?Know your budget. Be sure that you can handle the monthly payments on your lease so you do not get behind on payments.See what’s available. Look around to see what cars are available for lease. This may limit your options.Be sure to test drive. Leasing a car is a big commitment, so make sure you are 100% confident in your decision. Always test drive to make sure you like the feel of the car.Do even more research. Do other drivers like this car? What are common complaints? What about maintenance issues? What about maintenance issues down the road? Will the car still be worth something when the lease is over? Ask all of these questions and talk to anyone who might have the same car. When your lease ends, weigh your options carefully. Think about the condition of the car – is it still in good shape or does it have some battle scars? If the car isn’t in great shape you may not want it as much, but you may be liable for some hefty fees if you choose to give the car back.Determine what the market value of the car is and compare it to the buyout amount listed in your agreement. Is it still a good deal or did the car depreciate more than you anticipated, making it a bad investment?If you still love your car and decide it makes more sense to keep it than to give it back, you will need to secure financing as the next step. That’s where Auto Approve comes in. With competitive rates and a simplified buyout process, keeping your set of wheels has never been easier.And that's what you should know if you leased a car but want to buy now.If you’re interested in a car lease purchase, Auto Approve has you covered. Our agents are eager to keep you in the car you love, all while saving you money. Our passion is saving you money, so contact us today!GET A QUOTE IN 60 SECONDS

Emergencies are unpredictable, by nature, and none of us want to get caught off guard by a huge, unexpected expense.We have all heard how important it is to have a rainy day fund, but how much should you save, and how do you start saving?Here we will look at how much money you should save for emergencies and give you some tips on how you can build this into your budget.What is an emergency fund?An emergency fund is a separate bank account or savings account that will help offset any unexpected situations that pop up. Such emergencies might include buying a new car if your car suddenly stops working, fixing a leaking roof, or paying for unexpected medical expenses. An emergency fund might also be kept in case a person loses their job. What constitutes an emergency will vary greatly from person to person, so an emergency fund will be used differently by different people.But the goal of an emergency fund is always the same: it can help bail you out of a tight financial spot. How much should you budget for emergencies?Just as what constitutes an emergency will differ from person to person, so too will how much you should save. Emergency funds are often discussed as “how many months of expenses'' you should save. While the general rule of thumb is to save six months’ worth of expenses, this depends a good deal on your lifestyle and financial situation. Let’s look at some different scenarios:When you should save three to four months’ worth of expenses:If you are in a relatively stable position in your life and don’t have a lot of people financially dependent on you, saving three to four months’ worth of expenses will provide a good emergency fund. Consider saving this much if the following applies to you:You’re relatively young and healthy.You have a stable job, and if you lose your job you could easily find a new one.You do not have dependents (children or pets).You have a partner who is financially stable.You have little debt.If this sounds like you, aim to save for three to four months of expenses.When you should save six months’ worth of expenses:If you have a lot of expenses every month, or have dependents, you are better off saving closer to six months worth of expenses. Consider saving this much if the following applies to you:You have a lot of expenses (this could include a high mortgage, multiple loan payments, or high vehicle payment).You have dependents.Your job is not very stable, or if you lose your job you would have a difficult time finding another.You are the sole provider.You live in an area with a high cost of living.All of these factors mean that if you have an emergency expense, it might be a very costly one. Experts suggest saving closer to six months’ worth of expenses to give yourself a bigger cushion.When you should save one year’s worth of expenses:If you are older and still have a good amount of expenses, it is better to be safe than sorry and save a bit extra. Consider saving this much if the following applies to you:You are older or have underlying health conditions.You are nearing retirement.You have a highly specialized job.You are the sole provider to multiple dependents.Emergency expenses in this case might be pretty costly, so having a year’s worth of expenses will help offset any unforeseen costs and keep you from needing to worry about what could be coming around the bend.How do you determine your expenses?It is important to have a good grasp on what your living expenses are every month. You should always have a general idea of how much money comes into your household and leaves your household every month. Creating a budget is a great way to do this. If you need help starting your budget, check out our Beginner’s Guide to Budgeting. To calculate your expenses, start by figuring out the following:Your mortgage or rentYour utilities (electricity, gas, water, etc)Your car paymentsYour insurance paymentsYour loan paymentsYour groceriesYour medical bills and prescriptions Any other monthly expenses (subscriptions, vet bills, etc)When you add all of this up , you will have a pretty good idea of how much money goes out of your pocket every month. Depending on your goal, multiply this number by 3, 6, or 12 to determine your ideal emergency fund amount.How do I save for emergencies?You know how much you need to save, but how do you make that into a reality? Follow these steps to start saving for your emergency fund today.1.Set your savings goal. Calculate your expenses as described above and determine your savings goal. Having a specific goal in mind will help you stay on track.2.Create a budget. Determine all of your expenses for the month as well as all of your income, and look for some places where you can trim some fat. Are there subscriptions that you don’t use? Can you cut back on eating out or takeout? Comb through your budget for opportunities to save.Pro Tip: A great way to save money every month is to refinance your car. By refinancing to a lower rate, you can save hundreds of dollars that you can then invest in your emergency fund. And if you use Auto Approve, the process couldn’t be simpler. It's easy to get a quote today (no credit check required!) and see just how much money we can save you!3.Create an emergency fund within your budget. Start contributing to your emergency fund as if it is a bill you have to pay. Determine how much you can afford per month to set aside, whether it is $10 or $500. As long as you are routinely contributing to your fund it will eventually grow. If you come into extra money throughout the month (think tax returns, a bonus, extra tips, money from a side hustle, etc.) think about investing at least part of it in your emergency fund.4.Put it somewhere safe. It is important to keep your money in a secure place where it can ideally grow and earn interest of its own. Where should you keep your emergency fund?When we talk about emergency funds, we might think of cartoon characters keeping their money in a jar above the refrigerator marked “rainy day fund”. But in reality, we are talking about thousands upon thousands of dollars. So where is the safest and smartest place to keep this money? According to financial experts, here are the top four spots to keep your emergency funds:A high yield bank accountKeeping your emergency money in a high interest saving account is one of the easiest and safest ways to keep your money. It is easy to access when you need it in an emergency, and you may be eligible for a sign-on bonus when you open a new account.A money market accountMoney market accounts are similar to savings accounts, but banks are allowed to invest this money differently so they often offer higher interest rates. You can still easily access your money, but there are often some restrictions (for instance you cannot withdraw money more than six times per month). Additionally, these funds are not insured by the FDIC so you could lose money out of these accounts.A certificate of depositA certificate of deposit offers a guaranteed return at a fixed rate (for example they might offer 1.25% APY for 24 months). These guaranteed rates are usually higher than a savings account or money market account, but your money is tied up for the period of time to which you agree. This means that you may earn more money with this option, but you might not have access to the money when you need it most.A Roth IRAWhile a retirement fund might not immediately come to mind when you think of emergency savings, investing your emergency money in a Roth IRA might be a good move for you. If you invest your funds conservatively, you can make more money than with a traditional savings account. There is a higher risk here however of losing some of your money, so it is riskier than a traditional bank account.And that’s everything you should know about starting an emergency fund.While it is impossible to prepare yourself for everything life throws at you, you can certainly try to prepare. Preparing for the unexpected with an emergency fund is a great idea that everyone should consider.If you are trying to cut down on your monthly expenses to create an emergency fund, or just looking to save some money, consider refinancing your vehicle with Auto Approve. Our team will shop around to find you the best rates, making refinancing your car as easy as possible. And with a 96% would-recommend rating on Lending Tree, you know we have the testimonials to back it up. So what are you waiting for?GET A QUOTE IN 60 SECONDS

When you buy a new car, it usually comes with a factory warranty that protects your car for the first few years. But when the factory warranty expires, you are left to foot the bill on any repairs that your vehicle might need. This is why dealers will try to talk you into purchasing an extended warranty on your vehicle. But how exactly does an extended warranty work, and is it worth it?Let’s look at how extended warranties work and what you should consider if you are thinking about purchasing one.What is a factory warranty on a vehicle?A factory warranty is basic coverage that is offered by the manufacturer that will repair certain issues at no cost. What the warranty covers specifically will vary greatly depending on the manufacturer. Warranties have gotten much better in the past decade or so, and standard warranties usually cover powertrain issues and many bumper-to-bumper repairs. The powertrain warranty covers your engine and transmission if there are any defects that cause your engine to operate improperly. The bumper-to-bumper warranty covers most everything else on your vehicle, including air conditioning, on board computers, and navigation systems.The length of the standard warranty depends greatly on which manufacturer you buy from. The standard timeframe is 3 years or 36,000 miles, whichever comes first. Certain luxury brands however have longer warranties. General Motors offers five year/100,000 mile powertrain warranties, while Hyundai offers ten year/100,000 mile powertrain warranties.It is important to read your warranties very carefully to know exactly what is covered and what is not. Under federal law, manufacturers are required to cover emissions repairs up to eight years/80,000 miles. This covers catalytic converters as well as other emissions system parts. You should absolutely read the fine print of your factory warranty in your consideration of whether or not you need additional protection.What is an extended warranty on a vehicle?How exactly is an extended warranty different from a standard factory warranty? There are two types of extended warranties, those offered by manufacturers (also called OEMs, original equipment manufacturers), and those offered by third party vendors. OEM warranties will extend your coverage and work the same way that your standard factory warranty works. Depending on the manufacturer, they will either cover similar issues as your original warranty, or they might cover significantly less. Third party warranties are similar to OEM warranties, but with a few key differences. One of the major differences is how your repair bills get paid. For a factory repair, you will need to go to either a dealership or a dealer certified mechanic, and they will handle billing. For a third party warranty, you may need to pay for the repairs out of pocket, then get reimbursed later. A good extended auto warranty will pay the mechanic directly. The upside of third party warranties is that you do not need to use certified parts, which are usually much more expensive than the generic parts.How much do extended car warranties cost?The cost of an extended warranty varies widely based on coverage options you select as well as the make and model of your vehicle. A factory extended warranty can easily cost between $1000 and $3000 up front, and if that coverage is rolled into your auto loan, you will pay interest on that cost.What are the advantages of an extended auto warranty?So, is an extended warranty worth it? Here are the pros and cons of purchasing an extended warranty.Pro: You can drive your car for longer worry free.If you are planning on driving your car for longer than the factory warranty covers, it might be worth it to consider. Expensive repairs can hit unexpectedly, and an extended warranty will alleviate this. An extended warranty is like insurance. You don’t always need it, but when you do need it, it is extremely helpful.Pro: It can help you keep up-to-date with technology.In-car technology is amazing nowadays. But with all of the advanced features out there, it is very easy for technology to become obsolete or stop working properly. One Apple upgrade on your phone and suddenly your GoogleMaps doesn't connect properly. A new Android hits the market and suddenly the bluetooth doesn't sync quite right. Having an extended warranty will often cover software upgrades at no cost so that you can use the technology for longer.Pro: You can customize it to your needs.Extended warranties, especially third party vendor warranties, can be customized to fit what you would like covered. This can be helpful to reduce your monthly payments but still get coverage for common issues with your car. It is helpful to use sites like JD Power and Associates and Kelley Blue Book to see what some common repairs are on your particular vehicle, and try to get a warranty to cover those issues.Pro: You might get some added benefits.If you purchase an extended warranty through a third party vendor, you might get some additional perks such as roadside assistance, rental car benefits, and complimentary towing. This depends largely on who your provider is, but these extra perks might tip the scale for you if you are on the fence about getting an extended warranty.What are the disadvantages of an extended warranty?Con: Paying for a repair might cost less overall.It is impossible to say whether or not an extended warranty will cost less than simply getting the repairs. On average, extended warranties cost about $750 a year. If you get a three year extended warranty and nothing ever goes wrong with your car, you are out $2250 with nothing to show for it. When deciding on an extended warranty, you should consider how much you end up at the repair shop. If you are there often and there seems to always be something going wrong with your car, it might be worth it. Also consider your vehicle in general: do you have a car that’s known to be unreliable, and you’ve just been lucky up until now? These are all important things to consider. Again, look up common issues and possible repairs your car may need and consider how long you intend to drive your current vehicle. One pricey repair, again, could tip the balance – and the nice thing about an extended auto warranty is that you can plan for the cost of the warranty, so you don't have to worry about big surprises. Again, it's like insurance – if you just pay for it all year, it can feel like a waste, but if you end up needing it, you may be grateful you got it.Con: They don’t cover everything.Even if you customize your extended warranty to fit your needs, there are many things that are not covered by warranties. Many wear and tear items, including brakes, brake pads, and headlights aren’t covered by all warranties. It's important to find out what each warranty provider you're considering covers and compare and contrast plans.Con: They require proof of maintenanceMany warranties require proof of regular maintenance as well. If you regularly miss oil changes and tire rotations, there's a chance they will not cover certain repairs. If they believe it is something that regular maintenance could have prevented, they might give you a hard time about covering it. Additionally, if it is a factory extended warranty, you will need to go to a dealership or dealer certified mechanic to do any repairs.  This can be a strain if you live far from a dealer.Con: There may be either overlap in your protection or a gap in your protection.If the extended warranty’s coverage overlaps with your regular factory warranty, you will end up paying for a useless warranty for the overlap period, as the coverage is redundant. That's why not everyone opts for an extended auto warranty with a new car. However, if there's something in particular your regular warranty doesn't cover that you'd like covered, it may be worth shopping around for extended protection. Some extended warranty companies are more flexible than others.All that said, if you wait for your factory warranty to expire before purchasing an extended warranty, you will probably have to wait for coverage to kick in. Extended warranties do not cover pre-existing conditions, so they often have a waiting period. Typically you must wait 30 days or 1,000 miles before the warranty takes effect. So it's a double edged sword – you may want to try to start the extended warranty coverage as close to the time your manufacturer warranty ends.Con: You might have to pay a deductible.Certain extended warranty plans will charge you a deductible for each repair. Depending how your contract is worded, it is possible that you will have to pay a deductible for each time your vehicle is brought into the shop. This means that you could end up paying multiple deductibles for one repair. So read contracts closely and ask any agent you're working with about the details of the coverage you're being offered.Can you buy an extended warranty later?Yes, you can buy an extended warranty after you buy your new car. But if you purchase the extended warranty when you initially buy your new car, you can build the extended warranty into your loan payment. If you are not planning on financing it, you should definitely think about it and do some shopping around before agreeing to a dealership extended warranty.Should I get an extended warranty?There is no right answer for this question. If you are nervous about not having coverage and can afford the payments, it’s certainly worth looking into. Just make sure you do research on your particular vehicle to make an informed decision.That’s how extended warranties work on new cars.We hope this will help you make an informed decision about purchasing an extended warranty for your new car. And if you have a new car that you love but loan payments that you hate, Auto Apptove can help! We'll work with you to find your best option to refinance your auto loan to a lower APR and put more of your hard earned cash back in your pocket.GET A QUOTE IN 60 SECONDS

When you accept a new job, you tend to focus on the big picture. Your new salary, your number of vacation days, and the hours of your work week are some of the biggest things you will think about with your new position.But nowadays, there are so many additional perks that employees are offered, and oftentimes they aren’t even aware of what they are missing. Whether you just started a new job or you’ve had a steady job for years, there may be benefits available to you that you are not using to your advantage.Here we will look at some employee benefits that you may be missing out on.In order to determine exactly what benefits are available to you, it is important to look carefully through all employee paperwork you receive. If you have any questions, your human resources department should be able to answer any and all questions about your using your employee benefits. Below are some of the most common employee benefits.Employer Contribution Matching ProgramsMany companies will match your contributions for retirement plans, such as 401(k)s. This will vary greatly from company to company, but the two most common matching programs are partial matching and dollar for dollar matching. Partial Matching: Your employer will match part of the money that you put in. This depends greatly on your particular plan, but it is common for employers to match 50% of your contributions. This is usually capped at 6% of your salary (they will contribute up to 3% of your salary).Dollar for dollar matching: Your employer will match your contributions in full up to a certain amount. If you are dollar for dollar up to 3%, your employer will match only up to 3% of your salary.With either of these matching programs, if you are not contributing to your retirement plan, you are missing out on free money. It can be hard to budget for this type of savings, but if it is possible you should definitely take advantage. Health Savings AccountsThere are three main types of Health Savings Accounts that may be available to you: HSAs, FSAs, and HRAs.HSAs: In recent years employers have found it more cost effective to switch to higher deductible health insurance plans, which means that employees have to pay more out of pocket for their health care. This is where HSAs come in and can be very beneficial. These accounts are owned by the employee, and contributions can come from the employer and the employee. Money is placed tax-free in an account and can be used for qualified medical expenses. These are only available if you have a high deductible plan. Many companies will contribute money per year to offset the higher deductibles.FSAs: FSA’s are used in conjunction with health insurance plans. The accounts are owned by the employer and deductions are taken from paychecks as tax-free contributions. Employees can be reimbursed out of this account for qualified medical expenses. HRAs: These accounts are set up by the employer to offset medical expenses. Employers are the only contributors to these types of accounts, so you cannot add your own contributions. This money can be rolled over from year to year, so if you don’t use the total amount one year you can use it the following year. Employers may offer one or all of these account options, so do your research and decide what will work best for you and your family.Legal PlansCertain employers will offer legal group plans that can provide discounted rates for legal services. Participating firms will assist employees with many types of legal issues, from preparing a will to disputing insurance claims. Legal fees can add up quickly, so discounted legal help is a great benefit.Life InsuranceLife insurance is something that most young people do not think about acquiring, but if your employer offers it, you should definitely consider enrolling. The sooner you get life insurance, the more beneficial it will be to you in the long run. The earlier your contributions begin, the more you can accumulate in the account. If you get life insurance through your company, it may be free. Many companies guarantee one year’s salary in insurance if the employee enrolls. You can contribute additionally to this amount, and it is usually pre-tax. Life insurance is especially worth considering if you have a family or are the main provider in your household.Disability InsuranceLook into the disability insurance policy that your employer offers. Disability insurance can help you recover up to 70% of your missed salary in the case that something happens to you and you are out of work for a period of time. If you are able to pay your premiums with pre tax income, then it is definitely worth considering. If you are injured and unable to work without disability insurance, you will have to rely on your savings account, and it could be very harmful to your financial health.Dependent Care OptionsYour employer may offer dependent care FSAs. This means that you can set aside pre-tax money for reimbursement for child care or disable adult care. These accounts typically don't roll over funds from year to year, so it is important to determine how much money you will use for childcare per year and to not overshoot your estimate. This can save you money if you rely on daycare or have a nanny.Additional Employee BenefitsYour employer may offer many more types of benefits to employees. Some additional benefits may include:Free gym membershipTuition reimbursement or supportFree parkingProfessional development programsRead carefully through your employee handbook or guide to determine if there are any other benefits that you could be utilizing.Rollover BenefitsCheck to see which of your benefits can roll over from one job to another. If benefits do not rollover, such as FSAs, then time isn’t a factor as much. But if some benefits do rollover from job to job, like life insurance, the earlier you take advantage of the programs the more beneficial they are.  Don’t miss out on the employee benefits that may be available to you.Most employers offer some, if not all, of the benefits described above. Too many employees do not take advantage of these benefits and they miss out on saving loads of money. Maximize your employee benefits by researching what your company offers and discussing your options with your family.And if you are going through your finances to determine how your employee benefits can best be utilized, make sure to take a look at your car loan. Is your APR a bit high? Are your monthly payments too steep? Auto Approve can help you to find competitive offers to save you money on your car loan.Get a quote today to see how much money Auto Approve can save you.GET A QUOTE IN 60 SECONDS

Let’s talk about vehicle service contracts – what they are and why you could end up wanting one.See, as part of purchasing a new car, typically, repairs and mechanical issues are covered by the manufacturer’s warranty – for a few years. This coverage provides consumers with peace of mind when first purchasing the vehicle, but a few years down the line, it will fall on them to pay for these repairs that are no longer included in the contract. Since most cars last 5, 10, or even 15 years on the road (depending on the make and model), you can be stuck paying out of pocket to keep your car running smoothly for many years. After all, we all know that cars come with their fair share of mechanical problems over time. That’s why investing in a program or agreement that can provide you with mechanical coverage throughout the lifetime of your vehicle is worth considering. A vehicle service contract acts as a form of insurance policy as your car ages, providing you with the coverage you need while acting as an intermediary on your behalf.Here's all your questions answered about Vehicle Service Contracts.How Does a Vehicle Service Contract Work?Like an insurance policy, you pay upfront into your service contract. If your car ever needs any repairs covered, the provider will foot the bill on your behalf. This way, you don’t have to worry about any sudden repairs totaling thousands of dollars that can completely destroy your savings.In this article, we will give you an overview of vehicle service contracts, how to use them, and all other pertinent details related to providers, so you can make the best decision in the end. We have reviewed top extended car warranty providers and ranked them on things like customer service, coverage options, etc. below. What is a Vehicle Service Contract?As mentioned, a vehicle service contract is a paid plan that covers costly repairs after the warranty on your vehicle has transpired. Also called an extended car warranty, the service contact is available to both new or used cars. Note: as the car ages, the likelihood of frequent repairs increases, which means the contract will be quoted at a higher rate than one for a younger car.Is there a difference between a vehicle service contract and an extended warranty?The short answer is: yes. Vehicle service contracts do not extend a manufacturer’s warranty – only the manufacturer can agree to that. The contract mimics the factory warranty coverage as a third party, providing additional coverage that is not provided via the manufacturer. Also note: not all vehicle contracts are made equal, so be sure to check out the extended car warranty available to you as well and compare the two.What Are the Two Types of Vehicle Service Contracts?You have a regular and exclusionary contract option. The regular contract will list all of the things that are covered in the agreement. The exclusionary will list everything that is not. If possible, opt for the regular contract that does not use backward logic – it can be easier to identify what you are buying with the agreement.What Are Vehicles Service Contract Price Ranges?There is no one-size-fits-all when it comes to vehicle service contracts and pricing. The cost of the contract will depend on your vehicle’s make and model, as well as the condition of the car. It will also depend on what level of coverage you agree to, and if you want the provider to cover 99% of breakdowns and repairs. Just like an insurance policy, if your car is older and riskier to the lender, they are going to require that you pay more for the contract.In general, these contracts can range from $199 to $1,000. Most vehicle contracts will fall into the $350 to $750 per year range. You will want to compare how much typical repairs for your vehicle will cost, when compared to this coverage. If you figure that you will owe around $1,000 this year in repairs, then taking on a $500 contract may make sense.How Do I Use My Vehicle Service Contract?You can access the contract anytime your vehicle needs a repair. Like any insurance company, all vehicle service contract providers will include different tiers of coverage. Not every tier is going to cover every possible repair, which again, is why you will want to review all details before agreeing and signing. Each provider will also have their own process as to how claims are filed, and ultimately, covered. Some providers will require that you pay for the repair and then they reimburse you. Other providers will partner with repair facilities and not require this kind of capital be fronted in order to engage with the repair. It depends on your cash flow and what you know is possible for your finances.Vehicle Service Contract Exclusions to NoteWhen you purchase this contract, you will want to review it carefully. Most contracts will list all of the parts that are covered, however, should you find yourself with an exclusionary contract, you will want to review what is instead, not covered. Even if it appears that the repairs that you do want to be covered are not on the exclusionary list, you will want to clarify with the company exactly what their contract means.Should I Purchase a Vehicle Service Contract?These contracts can make a lot of sense for used vehicles, which can come with complications down the line that you were not originally aware of. If you purchase the vehicle from a reputable brand, it is recommended to first inquire into the extended warranty package and how it compares to a rate from a vehicle service contract. And that’s everything you need to know about Vehicle Service Contracts.For many people, knowing there is a ceiling on how much they are going to pay for their vehicle’s repairs is all they need. Here are Auto Approve, we are proud to provide you with the real, genuine information you need to make smart decisions for your vehicle. We hope you have found this article to be helpful and informational.

It can be easy to get caught up in the car leasing gimmicks that are floating around all media and advertising spaces today. Many of these ads will claim that a lease is only $58 per week or $139 bi-weekly. These companies will state that it is easier to get into a new vehicle through a lease than it is by outright buying the vehicle.It may sound wise in nature, yet this is not always the case, and we want to talk about it in this article. In reality, leases are often much more expensive than they advertise and end up costing more than just financing the car in the end. How does this happen? Through the fine print, hidden fees, and extra costs that come with breaking leases or engaging in something that is not included in the confusing contract you sign when you agree to a lease.In order to protect yourself from unknown fees before you sign that dotted line, we’re going to look at some of the hidden penalties you should review in a car lease.Fees at the End of a Car LeaseHidden Interest and Taxes: Interest and taxes are surely applied to your car lease, even if it’s something they leave out of that ‘$58 per week’ marketing ad. When these two elements are factored into the equation, it’s more like $80 per week, and that’s just with the terms provided when financing a car. This can vary based on state, county, and dealership, which is why you should always factor in a lofty sum of money to cover interest rates and taxes.Can I negotiate these lease charges? Although you may be able to negotiate other elements of the lease, you will most likely be unable to negotiate the interest rate, much less the taxes. Be sure to check if there are any tax breaks available in your state for a car lease (note: they are usually not enough to compensate for the high-interest rates that are charged by dealerships today).Administrative Fees (Twice): Dealerships will apply two different administrative fees to your lease as a part of doing business with them. The first fee will come when you initially lease the car. The second fee will come when you return the car after the lease is completed. These fees can be as much as $750 each time, justified as a way to compensate the administrative staff that will have to process the paperwork for the termination of the lease.In most cases, the average consumer is not surprised to see that fee the first time they take the car off of the lot. But, when they see the fee again after they return the car, they are shocked to learn that an extra $1,500 in total was omitted from that monthly payment number when they first inquired about the car lease.Termination Fees: Yes, you will be penalized if you decide to terminate a car lease before the agreed-upon date. You are probably thinking to yourself: but why? Isn’t the dealership receiving the car back in a better condition than if I had kept driving it? Whether you are moving, downsizing, or lost your job, any of these reasons will make it necessary for you to terminate the car lease. And, you have that right to do so, but you will be hit with a termination fee. The fee amount will vary based on the information in the lease you signed. Many people will find they end up paying the full amount of the lease via the termination fee, even if they turn the car in a year early. Be sure to ask the lessee to disclose what this fee is to you if you predict yourself needing to terminate the lease prematurely.Mileage Variations: A general car lease will enable people to drive 12,000 to 15,000 miles per year, give or take. If you go over this mileage count, you will have to pay for it – at 10 to 20 cents per mile. If you do the math, that means you would owe $1,800 on an extra 3,000 miles you drove over the preset amount. Extra mileage is one of the biggest ways a dealership makes a profit off of this lease – they can almost count on you breaking the agreement. If you predict yourself needing to drive a fair amount in the coming years, this is a major reason why a car lease may not make sense for you.Mileage Punishment – Auction Fees: Not only are you going to be slammed with fees per mile that you go over the agreement, but the dealer also reserves the right to tell you that you have to sell the car returned at auction. This means you are responsible to cover the difference between what the car sells for at the auction, and the initial value of the car that was configured based on the pre-defined mileage count. So, let’s say the dealer figured the car would be worth $13,000 after you returned it within the mileage count. If you go over that mileage count and the dealer determines the car is now worth $10,000 at auction, you are required to cover the $3,000 difference that they ‘lost’ as a result of your negligence. As you can see, this gives the dealer way too much wiggle room when it comes to the interpretation of the car’s worth. This is something you will want to hash out with the dealer before signing any paperwork. The Down Payment Omission: And finally, back to that $58 example above: this is a payment amount that is described after the down payment has already been put down on the lease. If you put a $5,000 down payment on the lease, your bi-weekly payment may only be $100 or $200 because you already paid handsomely to drive the vehicle. The moral of the story: that ad-based monetary amount is false.Need help refinancing your vehicle? We recommend you talk with our team first before signing any leasing paperwork. Auto Approve is here to help.GET A QUOTE IN 60 SECONDS