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.

Northeast Los Angeles (NELA) Art Gallery Night

While Eagle Rock is a community long known for being “artsy”, the flood of new and younger homebuyers are populating neighboring communities like Highland Park and Mt. Washington. And judging from the range of successful businesses also sprouting in and around town, they enjoy coffee, micro-brewed beer, vegetarian food and … art. Small, independent art galleries are surging in popularity.

Though some art galleries have been around a while, most have appeared since the epic housing market that made homes in highland park a safe and sure investment guaranteed to bring about a healthy return. As homebuyers have remodeled their homes, several have found themselves in the local art galleries looking for interesting art with which to decorate their homes.

North East Los Angeles (NELA) hosts a “Second Saturday Gallery Night” once a month, put together by NELAart. NELAart is a collective of art galleries and organizations whose aim is to promote the thriving arts community in NELA. This night is a self-guided tour of the artist-run project spaces, galleries, and non-profits found in Eagle Rock, Highland Park, Glassell Park and Cypress Park communities. Here are seven popular galleries that are filled with fascinating displays of art.

The MorYork studio is full of art built with recycled material. Clare Graham is the mastermind behind these works of art. His displays range from chairs and tables built with dominos to lounge chairs made of soda cans. His bottle cap urns and tin can mirrors bring creativity and green thinking to a new level.

The Avenue 50 Studio found in Highland Park is a studio inspired by Latin Chicano culture. The citizens of Highland Park are primarily of Latin descent, and Avenue 50 Studio is committed to showcasing this ever growing, established culture. People of color who are not yet represented in mainstream galleries display their art here.

The artists at Matters of Space specialize in building custom furniture in order to feed their consumer’s inner creativity and personal taste. Matters of Space designs an assortment of furniture for residential places, restaurants, and businesses. They also put on showcases displaying art from designers and artists around the world.

Public Fiction is a gallery that renews its topical series every 3 months. Public Fiction is one part physical space and one part print work. The physical site is stocked with art installations, performances, and happenings on their current topical series. The print work combines pieces of the installations with new contributions to produce a document to complete the topical series.

Museum & Crane is a private art gallery located in Mt. Washington. This is a backyard gallery, which is invite only to create an intimate environment to display contemporary art in all forms. This space assimilates live music and multi-disciplinary performances with art exhibition to generate a magical atmosphere in which artists and friends can inspire and collaborate together.

Leanna Lin’s Wonderland is a playful jewelry studio, shop and art gallery in Eagle Rock. Leanna combines modern and retro designs of jewelry, which can be found, on display and for sale in the back of the store. Leanna also hosts pop-up events and workshops on how to create unique, beautiful jewelry. This is a great idea for a private party or get together.

An artist and his three sons established the Judson Studios of Highland Park in 1897. The Judson family proudly continues to run this studio today. Judson Studios produces original, hand crafted stained, architectural and leaded glass artworks. They can create glass artworks in windows, signs, domes, fine art pieces, and skylights.

NELA is full of unique, individual art galleries and shops. Attending the Second Saturday Gallery Night is an opportunity to support our local artists and enrich ourselves in the art culture of our community.

Driving Record is Essential

Are you interested in engaging a car or truck driver for your new business or are you thinking of getting a driving job? Regarding both of the cases it’s essential to ensure that the driving history of the candidate is absolutely clear. With the current economy, wherein we have far more jobseekers than overall placements, headhunters often check your driving records to be absolutely certain that they’re selecting the right candidate for the position on offer. That would also help them to avert probable hassles with the staff members.

Why’s it essential to have your driving reports? For a company, they may want to look at a potential worker’s driving report. And for an employee, you’d like to analyze your driving history to view what a recruiter can read about you or your earlier infractions. If the recruiter is in need of a driver for services like school bus, then the driver which is ideal for the job can be one who has not gotten any traffic ticket. When the company is searching for driver to shift the things which are extremely pricey, then the driver they’d be hunting for is a person who’s got no accident history.

Headhunters love to look for those with clear driving record. When we say clear driving record, it is simply depending on how many traffic fines were given to the job seeker? Whether any type of careful driving classes which the applicant had taken in recent years? Collision report, driver permit confiscations and restrictions or whether the job seeker has any special permit types are some of the details available which may be of interest for the recruiter. This data allows them to hire the ideal worker for the work that they’ve got placement for. Additionally this decreases the price of their vehicle insurance bill in addition to the security of their job.

People must make sure that they regularly check their reports every now and then to make certain that their report is current. Also this allows them for taking protective steps promptly to improve whenever their history is going terrible. For a person, an extensive driver report comes with non severe breaches for a 15-yr interval; after fifteen yrs, the offense is taken off. Life-threatening breaches, for instance DWI or No-Risk Cover, will never be erased from a driver record. You must also get your driving reports for insurance applications. That incorporates fixing disputes and damages and being familiar with the costs and price reductions you might secure. Insurance firms use your driving history to learn what amount you will have to spend, so you must as well be certain that the details are perfect by checking what is in your driving history.

You may get all types of reports which hiring managers typically are trying to find. This information is available on the net. All that you need to do is to fill up the form and give a small amount of charges and collect driving report. Needless to say the rates change with the type of information asked for. Although there is small price with brief info such as date of birth, license history, house address, all in motion and non-moving offenses for a three-yr interval then there is additional costs for more reports for instance report of crashes (whether a violation was done) and all of the license confiscations in the report.