Why should you stay away from Extended Car Loan Terms?

“Extended-term loans are stupid not just for us, but for the industry.”
- John Mendel, Honda’s U.S. sales chief
at the 2015 North American International Auto Show

Mr. Mendel elaborated that competitors are doing stupid things to increase sales and it includes seven-year long loan terms. He said that automakers are selling more vehicles by offering 84-month loans that decrease monthly payments and make it difficult to repay the loan faster. He added, “You’re ringing the bell on a new-car sale, but that customer is saddled — they’re stretched so thin.”

John Mendel’s interview has highlighted a very important aspect of the current auto financing world. Several auto financing companies are offering extended loan terms to increase their sales. They are attracting customers by emphasizing on lower monthly payments but deliberately ignoring the high interest rate part of the deal.

What is the Reality of Extended Loan Terms?

Extended loan terms or longer loan terms are attractive because they allow you to buy an expensive car while making smaller payments. But, before you opt for such a loan program, it is important to understand its reality.

• The upside down loan situation

Upside down car loan means that you owe more to the lender than the car’s actual worth. It is a very dangerous situation because if your car is written off in an accident, you will still have to pay the loan amount. It means you will have to pay money for a car that you no longer drive.

If you opt for a longer loan term and smaller monthly payments, you will end up with an upside down car loan. It is because lenders will direct monthly payments towards the interest and will not reduce the principal amount.

• The negative equity situation

When you buy a car, its value depreciates quickly in the first few years. And, if you opt for extended loan terms, you make smaller payments. It means the outstanding loan balance doesn’t reduce quickly. It creates a situation of negative equity. Remember that it is harder to trade-in a car with negative equity because it doesn’t have the power to reduce the new asset’s cost.

• The higher interest payments situation

SCENARIO -1 – Suppose your loan amount is $20,000. If the interest rate is 5% and the loan term is seven years, then you will pay $3,744.97 in interest.

SCENARIO -2 – Now, let’s assume that your loan amount and the interest rate is same as Scenario-1. If the loan term is reduced to four years, you will end up paying $2,108.12 in interest. So, it is advisable to opt for a shorter loan term and save money in the long term.

Now that you have understood the reality of extended loan terms, it is advisable to you stay away from it. Remember that it is always the bigger picture that matters.

Top Reasons To Use Online Tax Filing By Companies

New companies are facing lots of difficulties in filing the taxes forms according to current taxation rule. This is because filing taxes requires expertise by the companies and need to be done quickly to avoid penalty. But, it is not easy to process the complicated forms showing all the transactions occurred during the year in a statement correctly. This is why the companies are hiring taxation experts to process the forms and file according to latest rules of internal revenue service. But, filling the forms through traditional method is more time consuming and unsafe for companies. There is risk of getting lost the forms while sending to the IRS. To avoid such risk, the companies can file their taxes forms through online media which enables the taxpayers to send their statement within seconds. Let us look at the reasons why tax forms should be filed through online media.

Companies need skilled professionals to carry out the work efficiently in office to grow at faster rate in market. The employees use their skills and time in carrying out the work nicely to develop the company. The employees contribute for the growth and development of the company during the year. This is why the companies pay remuneration to the employees for their contribution toward the company. But, employees need to show total amount and pay taxes. File w-2 online to show wage-tax statement immediately and file the forms accordingly. The form is usually filed if total amount is more than taxable amount set by the Government of US. Filing of bulk forms is not easy and requires help of taxation experts by the company. But, processing the forms through software and filing through online media make thing easier for company. It is also for companies to get more tax return from IRS than in traditional method.

Apart from the regular remuneration, the companies pay special privileges to the employees during their employment. These privileges are helpful in binding the employees and work wholeheartedly for the development of the company. In fact, the privileges are helpful in maintaining the welfare of the employees during their service period in company. But, companies need to show total extra income paid to the employees during the year. File 1099 misc form to show the miscellaneous incomes provided to the employees by the company. The form is issued if total amount is more than 600 dollars annually and file for tax return immediately. Filing the forms through online media enables the companies to complete transaction quickly.

New companies coming to manufacture and promote products face numerous challenges. Financial constraint is one of the main problems face by the company during the business in the market. This is why the companies mortgage their properties to get financial aid from lender to carry out the business activities. But, the companies need to return the amount with a fixed interest at the end of the tax year. This is why the companies file form 1098 online to show mortgage statement immediately to the IRS. The company can outsource the work to the professional in the market at cheap price. Provide the tax detail and rest of the work will be done by the taxation expert. Take help of our expert in filing the forms immediately according to current taxation experts.

Gorgeous Gargano

Driving towards Vieste and you’d be forgiven for thinking you were on a fairground ride such are the roads that twist their way up, down and round whilst at the same time providing spectacular views of the azure ocean below that awaits you. On arriving in Vieste and its surrounding area, you won’t be disappointed. Unspoilt and situated approximately 100 kilometres from Foggia, the Gargano sticks out like the shape of an ear on Italy’s Adriatic coast, Vieste of which is known as the “capital” of the Gargano. The town, which has a population of approximately 12,000 and is on the easternmost part of the Gargano plays host during the summer to thousands of tourists who bathe on one of the glorious beaches during the day and take a wander in the pleasant town centre at night. Shops during the summer are open until late and there are a variety of restaurants, bars, ice cream parlours and pizzeria’s to choose from that all tempt the taste buds.

The Gargano that is today a tourist’s paradise, was once part of an isolated area and was usually only visited by pilgrims heading towards the shrine at Monte Sant’Angelo. Vieste itself has a fascinating history. During the 15th and 15th centuries, the town was heavily under attack by pirates from all parts of the Mediteranean, in particular Turkey. In fact, in the heart of the centro storico a rock can be found called chianca amara or bitter stone where thousands of Vieste’s inhabitants were brutally killed by the Turkish leader. Some say that the town was built in the honour of the goddess Vesta, hence its name. Others claim that the name is said to either derive from a sacred temple at nearby Vesta or from the Latin Apeneste.

Exploring the town further and its appeal really comes to light. The centro storico that lies on the rocky point of San Francesco is typically captivating with its charming 11th century cathedral that was built on the site of a pre-existing church and has a series of steps that lead up to its entrance. The inside of the cathedral depicts marble portraits of the Madonna with child and Stories of Christ and the Virgin. Not far from the cathedral and proudly standing 43 metres above sea level is the castle, one of many built by Federick II in 1240 which was altered in the 16th century to fend off the pirate attacks. At night the castle becomes attractively illuminated by the alluring light. It is also in the centro storico where you have the opportunity to admire the town’s noticeably white apartment blocks and appreciate stunning views of the sea. One particular fine view is at the Punta di San Francesco, a short walk from the cathedral which offers a panorama towards Mattinata, another of the Gargano’s appealing towns whilst also providing a beautifully photographic opportunity. The centro storico and the main town square, Piazza Vittorio Emmanuele with its series of tourist shops and restaurants are divided by a succession of steps, one set of which has more than 100 steps.

It’s worth taking a walk to the west of the main town centre along Via Cristoforo Colombo to the attractive port where just before arriving you see a view over the cliff of Sant’Eufemia and the important lighthouse that represents a landmark for ships in the Adriatic seas. Once thriving, the port was important for trade with Greece. Today it hosts many yachts and is the point of booking tours to the nearby Isole Tremiti and Croatia.

Once the town centre has been visited, the outer district has many pleasing sights. One is the impressive limestone monolith of Pizzomunno along the seafront. Once a 26 metre high cliff, coastal erosion made way to form its monolith shape and an ancient story suggests that the monolith is actually a young fisherman who was turned to stone by mermaids in jealousy for his love for Cristalda, a sea god’s daughter. The myth states that every 100 years on the night of a full moon, the two young lovers meet up again.

As you head even further along the seafront back down the twisty roads, you find sandy beaches that are divided into lido’s, the parts of the beach which are privately owned and charge for use of sun loungers and parasols, and the spiagge libere, the parts of the beach that are open to all. At every part of the beach you usually come across grotto after grotto that are worth a visit either by swimming your way across when its possible, or perhaps taking one of the many organised grotto tours. To the north of Vieste is the Grotta del Salata, the Salting grotto and the Grotta di Caprarezza that have vaults dug out of the rock walls. An hour by boat from Vieste is the Large Bell grotto that rises 47 metres above sea level and for a few minutes at sunrise the grotto is filled with a rainbow of glorious colours.

Probably one of the most spectacular sights of the Gargano’s jagged coastline is the Arch of San Felice, an arch that stands a proud 129m high and is often referred to as the Testa del Gargano, the head of the Gargano with trees topping it. When the sun shines and reflects on the beautifully clear seas, it’s easy finding yourself taking yet more photographs of the remarkable scenery and admiring the surrounding bay Baia di Campi, a tranquil spot sheltered by 2 small islands and pine forests.

To examine the Gargano and its treats even further continue along the coast road that leads you to towns such as Pugnochuiso, an unspoilt area and a bay with more characteristic grotto’s. Then there’s Mattinata, one of the Gargano’s southern most towns that is surrounded by a mountainous range and stretches towards the sea. The town has a relatively small shingled beach and typically clear seas that lead to a series of caves such as the “bell cave” also known as the Pantheon of the Gargano. Out of the town centre is Monte Saraceno and its excavations of over 400 tombs that date back to the 7th century.

In the opposite direction, heading further north into the Gargano are towns Peschici and Rodi Garganico, two small yet charming towns with more golden beaches and historical town centres. Peschici overlooks the sea and has a 17th century castle and Rodi Garganico is perched on a small headland encircled with orange and lemon trees.

To experience nature first-hand, you might want to visit the Umbra Forest in the heart of the Gargano. Owned by the state, the forest stretches over an area of approximately 15,000 hectares where you can spot Beech trees and Adriatic oaks as well as over 60 species and subspecies of orchids. If you’re lucky you might get to spot the rare Gargano roe deer, foxes and badgers.

The Gargano and its beaches, grotto’s and seas is such a varied and interesting part of Puglia that once visited, it can really make you feel that you should go back for more just in case you missed something the first time around.