Car Financing and Dealing with Money Problems Caused by the Ownership
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Car Financing and Dealing with Money Problems Caused by the Ownership - Money Problems Radio Show |
| Originally aired on September 9, 2006. | |
Show Topic:
On today's show we discuss how your car can contribute to your money problems. Our guests will share their insight on the best way to finance a car purchase and provide some helpful tips on dealing with money problems car ownership can cause.
Guests:
Ted Michalos and Scott Schaefer joined us from the firm of Hoyes Michalos Trustees in Bankruptcy. Ted and his partner Doug Hoyes started the firm in 1999 and have helped thousands of clients deal with their money problems and get a "fresh start". Scott is an insolvency and tax professional based in the Kitchener office of Hoyes Michalos.
Show Summary:
It is important to plan your car purchase before you arrive at the dealer showroom. Determine what features you are looking for in a car or truck and have that in your mind before you start exploring options. It is important to establish a budget of what you can afford before we begin vehicle shopping.
Ted discussed the differences between leasing and financing car and which option may be better for you based on your individual circumstances. If you decide to go with car financing, shop around for different car loan lenders to get your best deal. Our guests cautioned against using Vehicle Only Finance companies that charge extremely high interest rates. They discussed the different circumstances surrounding keeping your car in the event of a personal bankruptcy proceeding and the government regulations that apply in the province of Ontario. With rising gas price, maintenance and insurance costs, it is imperative that those who drive plan and budget accordingly so they can meet the expenses associated with owning and operating a vehicle and deal with money problems car ownership can cause.
Question of the Week:
Q. Several months ago my wife and I separated and the change in family situation has left me with some serious money problems. We got a new car which I lease and is in my name. I am considering credit counselling or a consumer proposal to help. If I do a proposal, can I keep the car? I am a commissioned sales rep and need the car as part of my job.
A. You cannot have your car repossessed in a consumer proposal as long as you are not in arrears. However, keeping the car may, in fact, not be in your best interests. Plan your long term solution based on your personal situation.
Don't let your money problems overwhelm you, contact a licensed bankruptcy trustee today for more information about your bankruptcy alternatives and other options for dealing with your debt.