 Fixed rate platinum visas
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Intro APR:
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Issuer: Finances
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I don’t mind automotive manufacturers earning a lot of profit,platinum rate fixed visas and I know of one that earns the majority of their money by financing and leasing carsplatinum rate fixed visas . It just doesn’t have to be your money, all the time.
There is a spectrum of two extremes that you can follow for car ownership. You can hold brand new cars for only a couple years (buying or leasing) or you can hold each vehicle for well over 5 years (and maybe buy them used in the first place). You can already guess which one is financially healthier, but it will help if you know why.
It is my observation that owning a brand new car for less than 4 years is the biggest destroyer of anyone’s net worth. I have a lesson plan for you if this is your preference of car ownership. Each year, you should be forced to withdraw the cash equivalent of the amount that your car depreciated over the last year. Then you take that wad of cash, and in front of your parents, spouse, kids, and financial planner – you feed it all into an industrial paper shredder that turns it to dust. It is just a little helpful tip from me to illustrate what you are doing to yourself.
When billionaire Warren Buffett was young, he refused to replace his old Volkswagen for many years even when he had the money to buy a new one. Why? Because over his lifetime, he knew that having $20,000 invested over decades would grow into millions of dollars in net worth to him.
Car owners also shouldn’t hold on to them forever, because there is an inflection point where the longer you hold onto a car, the better it would have been to replace it. How can this be? It occurs when the annula repair costs of the car outpace the drop in value of a newer car. Let me explain: let’s say that you are driving your 25-year-old-junker and are paying $4,000 a year in repairs to keep it loping along. Now, if instead you had replaced it with a newer car (maybe still under warranty), and it only dropped $3,000 in value – you’d be $1,000 ahead, happier with a newer car, and relieved at many fewer trips to the dealership over breakdowns. More reference material for this article is available at the website below.
It is too foolish for me to even begin addressing the financial damage of leasing a car, or getting an auto loan for more than three years and getting upside down (when you owe more on the car than what it is worth). Just avoid leasing and +4 year loan payment plans because these are the money-makers for the companies on the other side of the transaction.
Taking all this fixed rate platinum visas information into account, it is my opinion that the following is the financially optimum car ownership model: buy a car that is about two years old with less than 20,000 miles, and keep it for at least 5 years until the repair costs start exceeding $2,500 a year. As a general guide, this will help you avoid the sharp depreciation in the first two years and give you a car under warranty for a while, and then you bail out when the expenses start getting out of control.
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You’ve probably received several credit card offers in the mail, and the outside of the envelopes scream interest rates and promotional offers to try and entice you into opening it up and looking at what’s inside. Chances are, if you have an email address, you’ve even received a few credit card offers through that address- bright colors and animated graphics trying to convince you that there card has the lowest initial interset rate, or the longest transfer balance rate of all the available credit cards on the market. All of the offers will look good at frist glance; after all- that’s what marketing is about, right? According to Merriam-Webster’s online dictionary, marketing is a noun used to describe “the act or process of selling or purchasing in a market, and the process or technique of promoting, selling, and distributing a product or service.” Credit vard companies are in business to sell you their credti cards, and they’ll use a variety of promotional materials to get your business.
The outside of your credit card offer’s envelope might say something like, “LOW 0% Initial Imterest Rate on all purchases and balance transfers”, but there is much more to how a creit card’s interest rate is calculated than that statement reveals. Initial interest rates are sometimes referred to as the card’s promotional rate, or teaser rate. In all honesty, an initial intrest rate is basically the same thing for a crdeit card as a sale is to a retail store. Retail stores advertise their products that have a discounted price for a limited time to attempt to bring people into their establishment to buy the sale item, but also because once you are there, they hope you’ll purchase other products. Credit crads offering initial interest rates are basically putting their standard intreest rates “on sale”, because for a limited time, new cardholders will receive a lower than usual rate on purchases, and sometimes also on any balance you transfer from one of your other crdeit vards onto this new card. What you need to understand about initial interset rates is that they really are “for a limited time”, and just as you couldn’t go to your favorite store and buy items this month for the sale price that was offered the previous month, you can’t extend a credit card’s initial interest rate beyond the terms they specify (often found in the small print!) What you’ll want to look for in the text of the materials that were sent with the initial intreest rate cards promotional documents is reference to the cards ongoing annual percentage rate (APR). This is the interest rate that you will pay once the initial interest rate period has passed. (The regular price of an item after the sale has ended!)
Initial imterest rates will also come with terms of agreement, in the form of a contract, which give reasons as to how or why the rate might be terminated by the credit lender. The most common reason to terminate the initial intrest rate offer is for making a late payment on your card, and if you read the fine print of the credit card agreement- you’ll note that it states this very clearly. In order to keep the promotional, lower rate for the time specified by the credit card lender, you must make every payment on time. If you are late with a payment, you can expect the interest rate to jump to the ongoing ARP, or in some cases, higher because you have defaulted on your contract agreements, so do everything you can to make sure your payments are made on time.
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