Car Title Loans or borrow with your car in Toronto

Next time you’re in need of some fast emergency funding, consider applying for a Vehicle Title Loan.

A Vehicle Title Loan is a loan for which your vehicle is used as collateral or security. Cars, vans, trucks and SUVs are also acceptable. It also must be fully paid off -- no liens or leases. And it must be fully insured.
Ownership and insurance have to be in your name only. If the vehicle is in another name, then the owner must come in to co-sign the loan. If the vehicle is in the name of your company, you need to provide proof of ownership.

Advantages:

• Your loan is approved faster than an unsecured personal loan would be.
• You enjoy full use of your car during the loan period provided that you make regular payments.
• You are usually eligible for larger loans and lower interest rates than with unsecured personal loans.
• The loan can usually be paid off over longer periods of time depending on the lender.
• You can qualify for the loan even if you are in a bankruptcy, in a proposal or have a bad credit history.
• You may qualify if you are self-employed, a pensioner or earn your income based on commissions or tips.

Defaulting on payments: What happens and what to do?

If you default on your payments without communicating with your lenders you may jeopardize possession of your car. If there is a problem making payments on time promptly contact your lenders. The lenders can suggest alternative re-payment options.

What to Look For?
Make sure your loan is open, so that you have the option of paying it off early.
Be sure the lender reports to Equifax regularly so that your payments can help you rebuild your creditworthy status.
Make sure that the lender will work with you in the event of an illness, a job loss or other unforeseen misfortune that impacts your ability to repay.

For same-day approval with the lowest rates in the GTA for bad credit Vehicle Title Loans.
Visit Prudent Financial Services at https://www.borrowwithyourcar.com/qualify.php

Traffic Violations and Insurance Rates

Traffic violations in Ontario can be major, minor or criminal offences.  The severity of the infraction can make a significant difference in how your insurance rates are affected, as well as in the legal consequences.  Minor offences are the less serious ones and usually result in a fine. Major offences can be much more serious, resulting in heavy fines, license suspensions and possible jail sentences.

Minor violations

Minor violations are the most frequent kind of traffic offences, and have less impact both legally and on the driver’s insurance rates.  They are chargeable on your insurance for three years from the date you are convicted (not from the date you are ticketed), and some carry a sizeable fine, too.

The most frequent minor infractions are speeding—though when exceeding the speed limit by over 50 kph, it becomes major--running red lights or stop signs, failure to obey traffic signs, and tailgating.  Others include improper turning, improper passing, obstruction of traffic, unnecessarily slow driving and driving with your view obstructed.

Minor offences differ in their impact on your insurance premiums. Not all will result in a rate hike, but that varies from insurer to insurer. It’s useful to contact your insurance agent after you’ve been ticketed to find out what to expect on your premiums. But if you are hit with an increase, it won’t take effect until you renew your coverage.

Parking violations and driving with a broken taillight are minor offences that are unlikely to affect insurance rates, as they are not usually regarded as moving violations and therefore do not concern the insurer.

Major violations

Major violations are considered to be more serious, as they are more likely to result in an injury to another driver or a pedestrian.  They include speeding (when driving above 50 km/h), speeding in a school zone, passing a school bus, failing to report an accident and driving without auto insurance coverage.

Insurers take a dim view of major violations.  They show that a driver is a higher claims risk and should, accordingly, pay higher premiums.  A major offence remains on a driver’s record just as long--three years--as a minor one when it comes to insurance premiums.   However, the premium rise is generally higher in the case of a major violation.

Major offences also have more severe legal repercussions. The offender could be hit with heavier fines and in some cases may even face a possible jail sentence.  Offences that carry a criminal record include driving with a blood alcohol level over .08, careless driving, criminal negligence, dangerous driving, driving with a suspended license, racing and motor manslaughter.  

For these types of convictions, the Facility Association of Ontario, which provides coverage to drivers who can’t qualify in the voluntary insurance market, will increase premiums by 100%.

Avoiding rate hikes

Keep in mind that being cited for more than one violation is a sure way to have your auto insurance rates rise.  Two minor violations can be more damaging than one major violation.  Statistically, if you have received a speeding ticket, there is a 20% chance that you will receive another ticket within the three year period. If you’re hit with three speeding tickets, you will be charged "high risk insurance rates" of thousands of dollars per year, for at least three years.  So it’s best to learn from the error and not repeat it.

To check which offences are considered major, minor and criminal, consult http://www.insurancehotline.com/driving-convictions-list/.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Driving Safely in Summer

Summer is the season for taking your car on the road.  But you’ll find increased traffic on those roads, including both locals and tourists. Taking extra care to drive safely will help you get through the summer accident-free.  Here are some tips on how to do that.

Have your vehicle checked

Summer driving conditions are often hot and stressful on equipment. So, preventive maintenance for the mechanical systems of your car or light truck is definitely a good idea.  The to-do list should include:

● Check your tire pressure before a long trip -- including the spare -- and keep it at the level recommended by the vehicle manufacturer. Check tire tread depth for excessive and uneven wear.

● In extreme summer heat, it may be necessary to change the grade of the engine oil.

● Check the cooling system, both hoses and radiator, for leaks. Check the coolant recovery reservoir under the car’s hood when the engine is cold. Add the coolant recommended in the owner's manual,

● Check the air conditioning system.

Don’t overload

When packing up the car for a road trip, keep safety in mind. Don’t sacrifice your field of vision to squeeze in extra items. If you really do need extra space for supplies, consider using additional space on your car’s exterior or even towing a small utility trailer.  Both are safe options, provided all items are properly secured.

Buckle Up

The best way to increase your chances of survival in a road accident is to wear your seat belt. This applies not only to the driver, but to every passenger in your car, too.  Not wearing a seat belt leaves you more exposed for severe injuries or even death in the event of an accident.  Remember that any passenger below 16 years of age who isn’t properly buckled up is your responsibility, too.

Construction ahead

Summer is construction season, so heavier traffic flows are being squeezed onto roads that are being narrowed due to maintenance and construction. Watch out for road workers and stay alert in construction zones.  Speed limits often are reduced, and traffic can come to a halt without much notice.

Bikers are back

Watch for cyclists and motorcyclists, too.  As a motorist you may not be expecting these smaller vehicles, and their drivers may be rusty on the roads if they’ve had their bikes parked all winter.

Weekend warning

Unlike other seasons (when rush hour is the busiest time on the roads), summer brings traffic congestion on the weekends, as families drive to the cottage and back. These leisure drivers may actually be more of a danger: they’re revved up to reach their destination, and often are carrying more passengers and more stuff than a regular commuter. It’s best to stay calm and be polite to other drivers in order not to trigger road rage and put everyone at risk.

Carry emergency gear

Winter isn't the only season when car trouble can happen, so  carry emergency gear all year round.  In summer, along with the usual emergency items of a blanket, flashlight, rags, a red cloth or flag and reflective warning signs, you also should bring bottled water, extra coolant and oil and, of course, a cell phone.

Follow the above safety tips and you should have a safe summer on the road.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

The trade-offs of a trade-in

When a car owner decides to buy a new auto, they usually wish to sell their current model.  They can do a private transaction, which requires some effort, patience and risk, or they can trade it in at a dealership. A trade-in occurs when a car owner sells their existing model to the dealership as part of a deal to buy another car (new or used).

The advantages of a trade-in (versus a private sale) are the efficiency and ease of buying and selling at the same location, as well as significant tax savings.  The disadvantage is getting a lower price for the trade-in vehicle than you’d get in a private sale.  Let’s look at the trade-offs in more detail.

Advantages

Since even dealers of used cars usually want your trade-in, they tend to make the deal as painless as possible. Trading in a car is usually a same-day affair, with a minimum of procedures.  The dealer assesses your car’s condition, its age and other factors, and then sets its trade-in value.

The emphasis is on convenience.  Unlike a private transaction, you don’t have to place ads, arrange test drives or face legal repercussions if the car breaks down soon after the new owner drives away in it.  (Once a car is traded in at the dealer, it's their responsibility to handle the resale.)

Then there are the potential tax savings. Since the trade-in’s value is deducted from the selling price of the car you’re acquiring, this lowers the tax that you’ll have to pay on the new car.  For example, if you buy a new car worth $40,000, and your trade-in is valued at $20,000, this effectively lowers the new vehicle’s selling price to $20,000.  Instead of paying HST of $5,200, you would pay $2,600—a saving of $2,600.

Disadvantage

The downside is that most dealerships will offer less than your car is worth. The dealer incurs costs in cleaning the car and fixing any problems and still must be able to sell it at a profit. So you should expect a low offer.  If the offer for your used model sounds too good to be true, it probably is: the dealer is likely making up for it in the negotiated price of your new car.

However, knowing the true market value of your trade-in vehicle will give you a stronger hand when negotiating.  It pays to study the market in order to get a realistic idea of your existing car’s value. Canadian Black Book (canadianblackbook.com) is considered the industry Bible for providing market values for cars, trucks and SUVs at the wholesale level.

Also, find out the current market demand for your make and model, and whether the dealership is oversupplied with that model. How much the dealership is willing to offer for your trade-in depends on supply and demand.

Assemble all your car’s service records. If you can demonstrate that you’ve looked after your car with recommended maintenance, it will fetch a higher trade-in price (whether at a dealership or privately).  Whichever route you go, it’s important to weigh the trade-offs when considering how to sell your current vehicle and buy another. 

For information about PRUDENT VALUE CARS, visit our web site:

www.prudentvaluecars.com

How to Make Your Car Last Longer

Most cars are built to last much longer than most car owners believe.  According to auto experts, the average vehicle’s useful life is ten years (or 300,000 kilometers). By providing proper preventative maintenance, however, a car owner can often double a car's useful life and spend less time taking it to the mechanic for repairs. Here are some tips on how to keep your car in good condition as it ages.

Regular maintenance

Research by the major auto manufacturers shows that the failure to provide routine service and maintenance is the number one reason for major car repair bills. While the owner’s manual will have a maintenance schedule, you can make sure you stick to that schedule by using the same mechanics each time.

Keeping your vehicle covered contributes to its life span. A garaged car last longest, a carport is second best, and a car cover is third. If you’re unable to garage, carport, or cover your car, at least park under trees or other covering to shield it from the sun’s rays.

Take time to regularly inspect your car by spending five minutes walking around and looking at it.  In that time, you can check to see if the tires are wearing unevenly, open the hood and check the hoses, and make sure all the lights are working.

Fluids and filters

Regular oil changes are the most important measure that you can take in order to protect the car’s engine and make it last longer. But other fluids and filters also require regular maintenance. For instance, changing the air filter will enable the car to breathe easier and the engine to last longer. When the air filter is clogged, the engine doesn’t run properly.  It also hurts the car’s fuel efficiency. 

Driving smart

The way that you operate your car impacts how long your car will last. Taking off in burst of speed and coming to a stop suddenly are hard on a car’s engine and brakes. So stop and accelerate gradually. This will save gas in addition to avoiding wear and tear on the brake linings, transmission, and suspension.

Avoid running the car with a tank that is low on gas and with tires that are low on pressure. A gas tank that is only one-quarter full   increases the possibility of dirt, water and moisture getting into the fuel system.  Tires tend to be the most neglected part of a car. When they’re not properly inflated, it’s not only bad for the car, the tires and fuel efficiency, but it’s also a safety problem.

Take care of the exterior of your car by regularly washing and waxing it. Look after the interior as well, keeping it clean by vacuuming the carpet regularly and getting rid of spills before they become difficult to remove.

Follow the above tips and your car will run gracefully into old age.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Whether to Buy an Extended Car Warranty

Deciding on whether or not to buy an extended auto warranty can be a tough call. The auto manufacturer’s base warranty on a new vehicle is usually good for only the first three years of ownership, which means it will expire right when you’ve put some serious kilometers on the car and it’s more likely to need repairs.

For a new vehicle, the extended warranty must usually be bought within the first year. For a used vehicle, the extended warranty has to be bought when you purchase the vehicle.

It’s better to buy an automaker’s extended warranty, when available, than one sold by a third-party vendor. That’s because the coverage is likely to be more comprehensive, and manufacturers tend to honour claims more readily and with fewer restrictions.

Here are some factors to consider.

Cost

Extended warranties are pricey. Few manufacturer-backed plans covering five- or six-year terms cost less than $2,000. For high-end cars or SUVs, you’ll probably have to spend at least $3,000 for a warranty that covers more than just the basic power-train components. Nevertheless, the price of an out-of-pocket repair job on your car could easily exceed that of an extended warranty.

Coverage

No extended warranty is likely to equal your new vehicle's base warranty for comprehensive coverage. The devil is in the fine print. Interior and exterior trim items are the most predictable exclusions. Also, there are likely to be deductibles that range from $50 to $250 per repair visit (though zero-deductible options are available at higher cost).

You also have to take into account that most extended warranty plans have limits. Most plans are based on an outmoded 20,000 kilometers per year. So a five-year plan would carry a 100,000 kilometer limit, which many drivers would reach in less than four years.

Then, too, the clock starts ticking on a five-year plan the moment you drive your new car off the dealer’s lot. So, in reality, a five-year plan expires two years after the base warranty ends.

Advantages

If you can't get by without a vehicle while yours is under repair, the extended warranty plans are helpful because they usually provide rental car allowances for warranty repairs.

If your car has features such as air conditioning and power windows that are likely to need repair after five or six years, an extended warranty that covers them makes sense. And if you intend to keep your new car well beyond the basic warranty’s expiry date, then buying an extended plan may be a wise move. It all comes down to your risk tolerance and how good a deal you can find.

If a reputable vendor offers adequate coverage at a reasonable price, then an extended warranty can be good insurance against unanticipated big repair bills. The cost is fixed, which means you can factor it into the car purchase price upfront. And if you decide later to sell the vehicle, an extended warranty that’s transferable to the new owner will add to the car’s resale value.◄

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Taking Care of the Brakes

The braking system is your car’s most important safety feature. Just as brakes aren't optional equipment, neither should their proper maintenance be optional. The brakes on your car should be checked at least every 20,000 km, or once a year, or whenever there's a change in how they feel or the noise that they make.

How brakes work

Brakes are basically a mechanism to change energy types. When your car is in motion, it has kinetic energy. When you apply the brakes, the pads or shoes that press against the brake drum or rotor convert that energy into thermal energy through friction. The cooling of the brakes dissipates the heat and the car slows down.

Signs of trouble

Here are some of the symptoms that something is wrong with your vehicle’s brakes:

● The brake pedal feels too soft or you need to pump your brakes for them to work;

● A hard brake pedal;

● A brake warning light that stays on;

● Squealing or grinding noises;

● Vibrations or clunking sounds when you apply the brakes;

● The car pulls to one side when you apply the brakes, or a tire is very hot after even a short drive, or you see leakage near a tire.

Brake pads

There are essentially two types of brakes: disc and drum. Disc brakes have a rotor that's attached to the axle. Calipers straddle the rotor. Drum brakes are more common on back wheels. Several parts of the braking system require servicing. The brake pads or shoes wear out with use, and become too thin to function effectively.

If the brake pads wear out completely, that can damage the rotors. The calipers can grind grooves in the rotor. Then the rotor must either be resurfaced or replaced. This is an expensive proposition, but delaying is risky, because the car won't stop as quickly. Sometimes rotors warp or crack and have to be replaced.

Brake pads have different grades - regular, metallic and ceramic. Higher grades are pricier, but provide better braking performance and smoother operation. Also, the premium grade of pads and shoes lasts more kilometers than the cheaper grades. It’s acceptable to upgrade the brake pads. But don’t ever use a grade that's lower than the one that the manufacturer recommends.

Brake fluid

Brake fluid should be topped up monthly. When you apply the brakes, the pressure in the fluid activates the brake pads or shoes. If there’s insufficient fluid, there won’t be enough pressure to brake properly.

Also, water builds up in the brake fluid over time. This will result in corrosion, leaks and brake damage. With hard use, the brakes could severely fade or even fail. The brake fluid should be changed on the schedule recommended by the manufacturer.

It’s critical to look after your car’s brakes, and much less costly than a trip to the auto repair shop after an accident. ◄

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com