With interest rates at what they are, you may be tempted to take up an offer of a 0% car loan without hesitation. However, it’s important to take all the information into consideration before you make a decision. Not all 0% car loans are actually 0%, and you may find you could have made a better decision in the end. Remember: the interest rate is only a piece of the puzzle. You must also consider how much you’ll be paying each month, and what a lower payment could do for
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Analyzing Interest Rates: When Is 2.99% More Than 5%?
When analyzing deals, you must pay attention to more than the interest rates alone. In the past few weeks, GM published an offer for a 2020 Escalade. The offer was either for 2.99% APR, or a $9,500 rebate. Is the offer all it’s cracked up to be? Let’s find out. The MSRP, or sticker price, of the Escalade is $76,490. The Dealer was offering it at a $1,500 discount. So $74,934. In order to get a full understanding of the difference between these two deals, we’ll use the Loan Analysis
Read MoreAutomobile Purchases and Opportunity Cost
Have you ever tried explaining a concept like opportunity cost to a client that just doesn’t click? Chances are, the answer is yes. As financial professionals, it’s easy to fall into a routine because we understand the principles. For a client, however, this could be their FIRST introduction to a concept. So how do you demonstrate a concept in a way your client can understand? Our last post discussed opportunity costs, and why the concept is crucial to your client’s finances. The difficulty lies in the education of opportunity costs—it
Read MoreTruth Concepts Tutorial Automobile Purchase
To open the automobile purchase calculator double click on the TC icon. This gives you a menu bar which you can move to another screen if using multiple screens or place it where is most convenient. You can also resize calculators as you open them to view them comfortably. To do so, click on the calculator and move cursor to bottom pull down and drag to make the box a larger size. Select Automobile Calculator. There are a couple ways to use this calculator: put in value of a person’s current assets or
Read MoreSteps for the First Truth Concepts Meeting with a Client
Bold italics are the client’s answers I’m glad we get some time together today. We are going to be using software to numerically prove the truth about how money works as it grows and to discover the most efficient way to get your money to work as hard as it can. Before we begin I have a few questions. If we were meeting here 3 years from today, what has to have happened for you to feel pleased with your progress? I’d like to have my money working harder for
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