Steve Moskos' Blog

When a Dealership Contacts Several Banks for my Financing, Does it Hurt my Credit?

3/25/2020

Often, when a person goes to a dealership for a new car, they let the dealer search for financing options. Most of the time, you have several offers to choose from. It is a known fact that inquires on your credit can cause your credit rating to drop, but does this type of inquiry have any impact?

Timing is Important

The most often used credit scoring systems allow people to shop for the best loan for their vehicle purchase without lowering their credit score. This is done by considering all inquiries for a car loan done within a certain time frame as one inquiry,

Be aware that the time frames may be different. To be safe, you should keep your inquires within a 14 day period. Within this time frame, your inquires should be counted as one or perhaps excluded completely by some scoring systems.

When a dealership sends your application to several lenders, those banks will check your credit score and compete for your business. Every lender that checks your credit will appear as a separate inquiry, but because these will happen in such a short amount of time, it should only count as one. So, you shouldn’t need to worry about dealerships sending your application to many lenders. These inquiries should not hurt your credit score, unless you shop outside of a short time frame.

Before you Shop for a Car

When you think you may be ready for a new car, you need to get a copy of your credit report and make sure there are no errors on it that may prevent you from getting a good deal on a car loan.
Besides checking it for errors, your report will also explain what is in your report that is affecting your score. If you have poor credit, this information will help you improve your score before you try to get a loan and will increase your chances for approval and a better interest rate on your loan.

You may also want to consider getting pre-approved before shopping for a vehicle. This will give you a rough estimate on how much you can spend on a vehicle before you get your heart set on one.

Why Hiring a Local Attorney is so Important

2/28/2020

When you need to find an attorney, doing a search on the internet seems like the best way to find just the person you need. However, doing a search can give you names of attorneys who aren’t the right fit for you.

For example, if you purchased a vehicle that isn’t what the seller promised and that person refuses to let you return the car or help with repairs, you may need an attorney that understands the “Lemon Law.” When you search the internet, you may get a long list of names of national attorneys, but they may not know the local laws and customs in your legal community.

When you call, the attorney may say they can help you with your case but still may not share whether he/she has successfully handled cases like yours or whether he/she is licensed to file a lawsuit should he/she not be able to settle your case. By hiring a local attorney, you can check into their experience easier and ask friends and family what attorney they recommend.

Here are several reasons to choose a local attorney:

1. Convenience--This reason may be obvious, but many people seem to think that an attorney from a large firm in a big city is always the best option. Some big firms have satellite offices, but if the attorney’s main office is an hour’s drive from the satellite, they may not be willing to meet you as often as you want.

Without a local office, you may be reluctant to set up meetings with your attorney as often as you want because of the time factor. Having to travel to see your attorney just adds stress to an already stressful time in your life. It is also very handy to be able to get from your attorney’s office to court in a short amount of time.

2. Knowing the Attorney’s Reputation--If you just choose the first attorney that you find during your internet search, the only thing you may know about that person is what you read on their web site. By choosing someone local, you are able to ask around about the attorney and the type of cases they usually handle. When you hire an attorney, you want to be sure that they have experience in the type of case you have – family law, personal injury, fraud, etc.

A local attorney is also more likely to want to maintain a positive reputation in their area. You will be able to ask which attorneys are held in high regard with other members of the court system. They will also be more likely to come prepared because of wanting to uphold their positive reputation. An attorney that isn’t local and may never appear in that court again won’t be as concerned about being prepared and making a good impression with the court.

3. A Local Attorney will Know the Right People in your Area--If you choose a local attorney, as soon as you explain your needs, they will more than likely know the people involved in your case and will know who they need to talk with to resolve your case. Knowing the judges, other attorneys and others involved in your local court system gives your attorney a step up towards winning your case.

Someone local will also know mechanics, doctors and other service people who may be called as experts for your case.

4. Someone Local will Know how the Court Operates--It may seem that every court operates exactly the same way, but that isn’t necessarily true. While laws may be similar, every state, even every county, has laws that are specific to that area. Every judge has their own way of running their courtroom and may have their own opinions of what type of arguments are the most persuasive.

Someone who isn’t local won’t know all of this about your local court system. They may inadvertently make a mistake that could cost you your case. When your attorney understands how the local system works, they also know to present your case in the best light.

Some rules that change from system to system include whether to stand when talking to the judge and who has to be at a hearing. A local attorney will know what is expected in your court system and will be able to avoid making simple mistakes. A visiting attorney will never be able to know or remember all of the rules of every court, so a local attorney is always the better choice.

When you start your search for a local attorney, ask friends and family for their recommendations. Even if they have never needed an attorney, they may know someone who has used one. Call local attorneys and schedule a time to meet. The best way to choose an attorney is to discuss your needs and see which one seems to really listen to you and has the most expertise regarding your type of case.

What are the Risks to Having Only Liability Car Insurance?

2/13/2020

Because having only liability coverage on a car insurance plan can lower the cost of your premiums dramatically, many people consider purchasing only that. However, if you have a loan on your vehicle, liability only is usually not an option. Your lender may require proof of insurance to protect their asset. (The Bank wants to make sure it can get its money back if the vehicle is wrecked.)

Having only liability on your vehicle does have some risks. Liability only means your insurance will only cover the costs for the other cars in the event you cause an accident. You will have to pay to repair or replace your vehicle on your own. The policy may also limit what the insurance company will pay the other driver and that means you may have to pay out of pocket to fix the other driver’s vehicle and any damage caused in the accident.

Liability insurance does cover personal injury for injured parties up to the limits of your policy. Each policy is different so you will need to read your policy closely. Again, you are on your own for any medical bills you incur as the result of the accident you caused.

Another thing to consider if you only have liability on your car is that you won’t have comprehensive damage repair. Comprehensive damage includes weather damage, such as hail or flood, or a rock hitting your windshield. If you have only liability and hit a deer, you will be responsible for fixing your car. When deciding whether to go with liability only, you need to consider the cost of repairing your vehicle out of pocket.

When it’s time to purchase or update your car insurance, liability only may seem like a great deal since it is so much cheaper. If your car is only worth a small amount of money, or if you have a large savings, liability may be the way to go. However, if you can’t afford to replace your car or pay for repairs, it may be worth it to pay the extra each month and keep more insurance coverage on your vehicle.

How Technical Service Bulletins Differ From Recalls

2/6/2020

What is a Recall?

When a car manufacturer discovers a safety problem on their vehicle, they start an investigation into the issue. If the problem is serious, they may even stop production of any models that could be affected. Once a solution to the issue is developed, the manufacturer issues a recall for any models that have been affected by the faulty part or programming.

The manufacturer will send out notices to all owners of vehicles with a VIN (Vehicle Identification Number) that could be affected. Recalls are mandatory and must be completed by a registered dealer of that make and model of car. Recalls are free to owners.

What is a Technical Service Bulletin?

Manufacturers track warranty claims. When a common problem surfaces, the manufacturer will usually investigate the problem. Once the manufacturer discovers a solution, the repair procedure is posted as a technical service bulletin.

These service bulletins are a good place for mechanics to start the diagnostic process when someone brings a vehicle to them with a problem.

Technical service bulletins are issued for non-safety issues. They are voluntary and are not free to car owners. However, the problem may be covered under your car’s warranty, or the manufacturer may open a special warranty period for the problem. In these cases, your repairs will be free of charge.

How to Find Recalls or Technical Service Bulletins

You can take your vehicle to a local dealer’s service center where they will look up your car’s vehicle identification number and determine if your vehicle has any outstanding recalls, but this may require a service appointment and may cost you.

You can also find recalls and some technical service bulletins online. Many car forum sites offer this information from people who share what they have learned. You can also check the manufacturer’s website or the National Highway Transportation Safety Administration (NHTSA) website.

How Depreciation Affects your Car’s Value

1/27/2020

A popular belief is that as soon as you drive your new car off the sales lot, it loses value. This is a true statement, as cars usually lose about 20% of their value within the first year and up to 60% within five years. The rate that the vehicle loses value is called depreciation.

What Affects the Rate of Depreciation?

Depreciation is the monetary toll that several factors take on the value of your car. Some of the factors are how old the vehicle is and how many miles are on it. The rate varies between makes and models of cars, as some hold value regardless of mileage and age.

The effect mileage has on your car depends a lot on what car you are driving. A fancy sports car with 15,000 miles on it in a year would be considered a high amount of mileage because that isn’t a car that most people drive often.
However, a mini-van with the same mileage would be considered an average amount of miles. A car with more miles than is average for its type will have a higher rate of depreciation.

Another way the make and model of your car affects depreciation is that cars in higher demand when they are new often hold their value longer than other cars. Also, cars in states with warmer weather are often in better shape than cars from cold weather states due to salt damage.

If your car is one that people consider to be more reliable, it will usually keep its value longer, too.

How to Slow the Rate of Depreciation

While many of the factors that determine the rate of depreciation on your car are out of your control, there are a few things you can do to lower that rate.

Try to limit the mileage you put on your car.
Keep up with the routine maintenance recommended by the manufacturer.
Keep your vehicle clean – inside and out – and wax it regularly.
Accidents will lower the value of your car.

When you are purchasing a vehicle, it does little good to try to guess what type of car will hold its value. Purchase the car that suits your needs and desires and don’t try to purchase one that will depreciate slowly.

Being Sued by a debt collector? Here's What You need to do.

12/11/2019

Drowning in unpaid bills is one of the most stressful things you can go through in life. Worrying every day about what bills to pay and hoping that no debt collectors call is a terrible feeling. It is even worse when a debt collector sues you for an unpaid bill. You may be humiliated and worried about what to do. Below are the top five things you need to do if you are being sued for unpaid debts.

Respond to the lawsuit. Although you may want to throw away the letter informing you of the lawsuit and pretend you never got it, that is the worst thing you can do. You must respond to the lawsuit or face a default judgment against you. This may happen if you ignore the lawsuit. If the debt collector’s attorney is in court and you aren’t, the court may rule in their favor.
Gather evidence about your debt. First, you need to make sure the debt is really yours. Unless you are positive it is, start asking questions about the debt. Look back through your records for the debt. You may also be able to look at your credit record for the debt. If the debt is yours, check your records for what you have already paid and make sure it wasn’t paid off. While there are unscrupulous people, it may also be a mistake in bookkeeping that can be resolved.
Contact an attorney. Make sure the attorney you choose has experience with debt settlements. A family attorney may not have the skills you need to fight a lawsuit over debt. Take your documentation to an attorney and discuss your options with him/her. Always be completely honest as an attorney they cannot give you the best advice if you hide things from them. You may be embarrassed, but your attorney is there to help you out of a bad situation. Resist the temptation to handle the lawsuit without an attorney. You may think that incurring more debt by hiring an attorney is a terrible idea, but you need help when dealing with the lawsuit.
Challenge the lawsuit. If you and your attorney feel you have reason to dispute the lawsuit, file that paperwork immediately. Make sure you have copies of all of your documents that prove you have either paid the debt or that it isn’t yours. Your attorney can advise you on what types of documents the court will want to see.
Consider filing a countersuit against the creditor. If you and your attorney feel the creditor did not follow the Fair Debt Collection Practices Act, a countersuit may be another option for you. Again, consult with your attorney and always keep detailed notes when you have contact with the debt collector so you can prove what you and the collector said.

Dealing with debt is hard enough without trying to handle a lawsuit, too. No matter how well you think you understand your options, an attorney who specializes in debt defense is your best option. You may make your problem worse by making a wrong decision too quickly.

Are Car Maintenance Plans Worth the Cost?

11/29/2019

Buying a new car is an exciting time. When you are sitting at the dealership, the salesman may try to offer you many other products for your vehicle and it is hard to make a quick decision on what you really need. A car maintenance plan is an option that your salesman may try to convince you to purchase.

What is a Maintenance Plan?

If you are offered a vehicle service plan, ask for specifics about what that plan is. Many dealers use that term for both extended warranties and car maintenance plans.

A car maintenance plan covers services that the vehicle’s manufacturer recommends be completed to keep the car running in optimum condition. These things could be oil changes, filter replacements, and tire rotations. Dealerships have learned that offering maintenance plans can be a very profitable revenue stream for their business.

These plans are prepaid and can be very valuable to have, but you need to carefully consider what is covered and what you would pay out of pocket compared to the cost of the plan. Always read all of the fine print details, and if you don’t understand the contract, consider having an attorney explain it to you.

The Positives of Purchasing a Plan

Dealerships rely on their service departments for a large part of their income. By selling car maintenance plans, they are guaranteed that their department stays busy. These plans are prepaid and often offer discounts on the services you will need. Remember, though, that what sounds too good to be true often is, and you still need time to think about whether you actually need the maintenance plan. Do not let a sales person talk you into something that may not fit your needs.

For example, the average cost of an oil change in South Carolina is around $30. Assuming you change your oil as recommended, or about every three months, that is $120 a year. Tire rotations are about $40, and it needs done once a year. Filter costs vary, but you may plan on about $100 for filters a year. If this is your plan of maintenance, you will be paying about $260 a year in car maintenance. (You also need to check your car’s owner’s manual for recommended maintenance.) If you can get a car maintenance plan for less, it may be worth it.

The Negatives of Purchasing a Plan

Before you purchase a plan, carefully read your owner’s manual. These can often be found online if the dealership doesn’t have one. See what maintenance the manufacturer recommends. Some dealers still use outdated information to try to convince customers to purchase the plans.

An example of this would be that new vehicles require very little maintenance. Many cars will go for more than 5,000 miles (instead of 3,000) between oil changes. This reduces your out of pocket expenses. Many manufacturers now state that your vehicle will only need significant servicing every 30,000 miles. If you don’t drive much, a car maintenance plan is probably not a good option for you.

Also, once you purchase the plan, you will have no options about who services your car. Unless you decide to pay out of pocket, you will have to take your car to the dealership for services. If you aren’t happy with their service, you have no options. Another thing to consider is that the things that do wear out quickly, such as wipers and brake pads, are not usually covered by maintenance plans.

The dealership may also sell the plan according to their schedule of maintenance and not what is recommended by the manufacturer. If you drive often in extreme heat or cold, oil changes may be recommended more often, but your dealership may not take these conditions into account, and you will have to pay for the oil changes yourself.

The Final Cost

If you decide to purchase the car maintenance plan, be sure to pay for it in full and do not add it to the total of your car or you will be paying interest on the plan, just like the purchase price of the car. To make the best informed decision, make sure to find out exactly what is covered and compare prices of those services to the total cost of the plan.

How Unpaid Debts Can Affect Your Financial Future

11/8/2019

Unpaid debts can affect your life for several years. You may be stressed over how to pay your bills and think it would be easier to not pay them, but not repaying what you owe can cause long and short term problems you may not have considered.

Short Term Effects

You may have additional fees, such as late or collection fees, added to your debt which will make it even harder for you to pay the debt.
Your credit score will drop.
You will more than likely need a larger down payment for purchases or deposits.
You will have a harder time refinancing any loans you may have or to get loans to make new purchases.

Long Term Effects

Higher interest rates on new loans.
Interest may be continually added to the debt.
You may not be able to get loans in the future.
You may find it difficult to raise your credit score as negative items often outweigh the positive items.

Depending on what kind of bills you haven’t paid, you may also have other financial problems.

If you haven’t paid your utility bills, such as electric or gas, it may be harder to get new service if you move and you may be required to put a deposit down on your service.
Auto loans that are not paid can result in your car being repossessed. Without transportation, losing your job is a real possibility which will cause even more problems. Even if you voluntarily choose to give the car back, you will still have repercussions on your credit score.
If you don’t pay your phone bill, it can be difficult to find another phone service provider that will be willing to offer you a service plan.
Not paying your mortgage can result in the bank foreclosing on your home and it may also make it nearly impossible to get another mortgage loan in the future.
You may be evicted if you don’t pay your rent. Many agencies check your credit score before offering you a lease so being evicted once will make it difficult to find another place to live.

A low credit score can also raise insurance rates. You may also be denied new credit cards for many years. Besides the financial effects that unpaid bills have, the stress can cause health problems and depression. Many companies would rather get some of their money than none so contact your creditors as soon as you are having problems to see if you can work out a payment plan you can both agree on.

Top 5 Reasons You Need a Local Lawyer Handling Your Case

10/28/2019

In a world where you can Google, search the internet, and even get legal counsel, it may seem strange to have a local lawyer. But ask yourself this, would you want a to see a medical professional you have never met before treating you for something serious? Then this area of your life shouldn’t be fast tracked to the internet either. You need a local lawyer in your corner for many reasons.

Laws Differ: State laws, local laws, and even local ordinances can affect your case. Local lawyers can determine all the nuances of your case and be able to protect you better. Lawyers can write your will, work through a divorce, help you set up guardianships for your children, and sell your home. They can also help with businesses by setting up your LLC or Sole Proprietorship, creating contracts, protecting you from lawsuits, and even meeting state and federal compliance.
Whole Story: Meeting with a local lawyer allows him/her to ask follow-up questions to see the entire picture. They will be able to pick up on visual cues, verbal cues, and even your body language that will enable them to guide you in telling your story in a more caring manner.
In the Know: Local lawyers know local judges and other lawyers. This knowledge may be beneficial to your case as they already know what judges prefer when trying a case and how to interact with attorneys that may be representing your opponent.
Accessibility: You are able to meet at a mutually agreeable time. All of us have had appointments that are hard to keep, hard to get off work for, and even set for one time and three hours later you are still in the waiting room. Local lawyers realize your time is precious and try to ensure that their schedules reflect that for each of their clients.
Cost: Local lawyers typically cost less, but even if they don’t, you’ll spend less money utilizing a local lawyer because they are already familiar with the state laws. Attorneys operating outside of the state, like through a lawyer mill, will need more time to review the cases and laws that support your case. Local attorneys already know what causes of action will apply to your case.

Protect yourself by seeing a local professional for any legal issues that arise in your life. Knowing that someone is in your corner and protecting you legally gives you substantial peace of mind. Having that person be there through some of your more difficult life moments is irreplaceable.

<<Previous

When a Dealership Contacts Several Banks for my Financing, Does it Hurt my Credit?

Why Hiring a Local Attorney is so Important

What are the Risks to Having Only Liability Car Insurance?

How Technical Service Bulletins Differ From Recalls

How Depreciation Affects your Car’s Value

What Affects the Rate of Depreciation?

How to Slow the Rate of Depreciation

More Ford Door Latch Problems – National Highway Traffic Safety Administration Investigates Complaints

Being Sued by a debt collector? Here's What You need to do.

Are Car Maintenance Plans Worth the Cost?

What is a Maintenance Plan?

The Positives of Purchasing a Plan

The Negatives of Purchasing a Plan

The Final Cost

How Unpaid Debts Can Affect Your Financial Future

Top 5 Reasons You Need a Local Lawyer Handling Your Case

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What Affects the Rate of Depreciation?​

How to Slow the Rate of Depreciation

What is a Maintenance Plan?

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