What Type of Car Finance Is for You?

Personal Loans

Personal loan is perceived to be the most popular way to finance a car according to many surveys. Borrowing money from a bank, building society or other lender gives you instant ownership of the car.

Comparison websites such as money supermarket will show you which lenders offer the best deals.

The annual percentage rate (APR)

Abstract Image of a town car in motion with blurred city lights in the background.

is the easiest way to compare loans, and essential in working out how much a loan will cost you over the repayment period chosen. If the APR isn’t mentioned then ask the question, the headline rate is not always what you get it depends on your individual credit rating.

It’s a temptation to take a longer repayment period which makes the monthly repayment smaller but you will pay more interest.

Keep the loan period as short as possible. The downside to a personal loan unsecured is that in the event of default any of your assets could be seized.

With dealer finance only the car is at risk in the event of payment default. Go for a personal loan if you say YES to any of the following.

  • You don’t have any deposit
  • You want to own the car outright
  • You plan to keep it for a while
  • You don’t want annual mileage restrictions

Hire Purchase

After a bank loan hire purchase (HP) is the easiest way to buy a car. Under HP agreements there’s usually a deposit to pay, typically 10 % followed by fixed monthly payments. The car is owned by the HP funder until it’s paid for including any option to purchase fee.

At that point the customer has the right to sell the vehicle. However some customers do sell their cars before the final payment and the good news is for buyers of non-paid up cars is that the law protects private purchasers who buy without knowing the car is not fully owned and no matter what the police or anyone else tells you will get good title if you buy a car on HP in these circumstances.

Some customers do sell their cars before the final payment and the good news is for buyers of non-paid up cars is that the law protects private purchasers who buy without knowing the car is not fully owned and no matter what the police or anyone else tells you will get good title if you buy a car on HP in these circumstances.

The finance company can ultimately take action against the seller but that’s not your problem. The credit on an HP agreement is secured against the car, so it’s like dealer finance in that the car can only be seized in the event of default. If you need to sell the car before the end of your agreement you will have to settle the outstanding monies first and early settlement fees may apply.

When is Hire Purchase Right

Go for HP if you say YES to 1 of the following

  • Ultimate ownership is important to you
  • Your budget and circumstances suit fixed monthly repayments
  • Your disposable income may decrease over the agreement term (eg if you’re planning a family).
  • You like credit secured against the car only.
  • You don’t mind not owning the car until the debt is fully paid.

Personal Contract Purchase

This product is probably the most popular product of all. It’s a bit like HP in that you pay a deposit, a fixed rate if interest and monthly repayments usually over 12 to 48 months.

Where PCP differs from HP is at the end of the agreement you have 3 choices.

  1. Return the car to the supplier.
  2. Keep the car.
  3. Trade the car in against a replacement.

The first option returning the car costs nothing, unless you’ve gone over an agreed mileage or returned the car in poor condition. In either case there will be an excess to pay. Keeping the car means making a final balloon payment.

Guaranteed Future Value

This amount is the cars guaranteed future value, or GFV, which is set at the start of the agreement. The GFV is based on various factors, including the length of the loan and the anticipated mileage as well as the cars projected retail value.

If you exercise this final buying option, you can continue to run the car, or you can sell it and pocket any equity above the GFV that you have paid back to the finance company. If you’re trading in your car, any GFV equity can be used as deposit towards its replacement.

If your car has gone into negative equity which can happen you will have to make up the difference. Shorter agreements are more likely to accurately project the GFV. Go for PCP if you can say YES to 1 of the following.

You want lower monthly payments.

You like the flexibility of options at the end of the agreement.

Trade the car in against a replacement.

Personal contract hire (PCH).

This product is basically renting your car for typically 2 or 3 years with an agreed mileage limit. There is no option to buy the car at the end of the contract you just hand the car and the keys back to the finance company.

Your payments are covering the depreciation of the car. While you’re running it, you’re responsible for its upkeep. On the plus side, the deposit is low as are the fixed repayments and you can negate the impact of repair bills by including a maintenance element into the agreement.

Cars that hold their value well are a good PCH option because the difference in their new and three-year-old values will be smaller so you will repay a lower amount whilst cars that plummet in value will see you pay more.

Go for PCH if you can say YES to 1 of the following.

You don’t want to own the car or suffer its depreciation.

You like being able to change cars often.

You like the idea of driving better cars than you could normally afford.

You don’t mind looking after cars.

Dealer Finance

Research is a must here as motor dealers love lazy buyers who haven’t done their research. There is no point in haggling on vehicle price if you waste it all on a poor finance deal. Check out the detail on current and forthcoming manufacturer finance deals.

These might include interest-free or low APR rates or deposit contributions. Don’t fix on the rate or monthly payment though look at the total repayable to understand the total cost and compare with what you can find in the open market.

Also, don’t assume that a dealers finance rate is set in stone, everything is negotiable. Take time to go through things you are not sure about and get the final offer in writing. The only thing at risk if you don’t keep up dealer finance repayments is the car.

Bear in mind that even with sweeteners thrown in the dealer will still make money somewhere in the deal and you are paying for it.

Go for dealer finance if you can say YES to 1 of the following.

  • You like the convenience of package deals.
  • You’re happy to do some comparison research.
  • You don’t want to do the research but you don’t mind paying extra.

Self Finance

If you want to own your car using your own money by buying outright it does make some sense when savings rates are so low. Buying a car outright is also a sensible alternative to leasing if your mileage is high or unpredictable because of excess mileage charges.

Using a credit card be an advantage as many funders offer 0 % on balance transfers and purchases. You can avoid paying interest charges altogether by changing your card at the end of interest-free periods.

The choice is yours!

Improving Business Potentials Through Tax Preparations

Most people perceive tax preparation services and filing it to be a hectic and arduous task. Most of the companies go in for some last-minute preparation and do it very hastily. They always try to get over with it as soon as possible. But they tend to forget the fact that tax preparation and filing does not only benefit the state that the company is affiliated with but also it brings in the various potential to the business through which they can improve in the future.

Below discussed are some of the points.

Review of financial transactions and dealings:

Tax preparation and filing do not only benefit the state that the company is affiliated with but also it brings in the various potential to the business.

The review of many business transactions throughout the year can be tracked and a clear figure can be made out of it. For example, the company might have invested in purchasing something and it wouldn’t have turned out as productive as it was expected to be. In such cases, there are possibilities like either the company should have taken some risks or it should have given a thought before investing. The skills obtained from this kind of transactions can be used in the forthcoming projects.

Understanding the status of the business:

Tax planning services in a company makes us understand the status of the business. Clear reports about whether the company stands in peak or all-time low can be determined. If any problem persists, steps can be taken to deal with it with utmost care. Before any big problem arises in the company the real status can be found and help can be sought from financial experts in the company.

Avoid Irregularities:

As tax preparation services are being handled by sophisticated soft wares and online services, so many irregularities and blunders can be avoided and the reputation of the company can be maintained.

The outcome of the business can be predicted:

Tax preparations provide clear figures on the outcome of the past business dealings. From this analysis, some bold moves can be taken. The company might have a certain set of standards, from these outcomes we can check out if we can change the landscape of any part of the business or some steps can be taken to determine if any part of the business needs constant supervision.

Tax preparation makes you legitimate Companies need to chip in required contributions to the country as a citizen.

Time can be saved:

Conventional tax preparation methods involve a huge amount of paperwork. But nowadays as there are many online resources are available, it is easy for one to enter all the details on-site and send it to the IRS. So the time saved for tax preparations can be used for any other productive purpose of the company. Tax preparation makes you legitimate Companies need to chip in required contributions to the country as a citizen. Depending on how a business is being handled, one can reap in large profits. So this tax preparation service makes us legitimate.

Three Ways Conference Calling Can Help New Businesses Succeed

Conference calling programs these days are being used by all sorts of individuals and groups, rather than just businesses as they used to be. The conference programs you can find today are very diverse in what they can do, and so are the many uses for them, for this reason. Still, though, the group that can utilize conference calling programs the most are no doubt business owners, and not just because they can communicate with colleagues and clients through conference calling either.

To be sure, conferencing programs do make communication with anybody involved with your business much easier, but if you have already begun to utilize conferencing in this manner then it only makes sense to find other, more creative ways to use such programs. One of those ways is for in house communications between both employees or associates and owners or managers. But the benefits of finding a good conferencing program do not stop there. These types of programs can be particularly useful for new businesses, as communication with someone is often necessary. Whether during the planning stages of the business, the process of opening the business or getting the business off the ground, or after the business is up and running, a free conference call program can surely, in some way, be useful.

A good legal team is one of the most important assets for any new business of any kind, and communication with that team is the key to establishing a legitimate, trustworthy business.

But there are three specific ways in particular that a new business can utilize conference calls.

1. Communicating with a Legal Team –

A good legal team is one of the most important assets for any new business of any kind, and communication with that team is the key to establishing a legitimate, trustworthy business. Being that there is usually so much going on for a new business, though, it can be difficult to find the time for important legal meetings. Conference calling programs make this much easier because a business owner can still be at their business and attend important meetings.

2. Training Employees Prior to Opening –

It is best to have employees that will be working at a new business well trained prior to the opening of the business. While physically working and dealing with customers or clients during this time is not possible, it is possible to learn everything you need to know to perform whatever functions are necessary and perform them well. This type of training can be conducted through regular conference call meetings between managers and employees, without everyone having to meet for training sessions.

3. Communicating Regularly With Employees –

Conference calling makes communication easier and can include any of the individuals involved with a new business that needs to be communicated with.

Finally, after a new business opens it is still important for owners and managers to have regular communication with their employees. What is not possible is for managers and owners to be at the business all the time. Conference calling makes communication easier and can include any of the individuals involved with a new business that needs to be communicated with. This will help a new business run much more smoothly in its early days. Conference calls can be a beneficial tool for any business, but even more so for new businesses. These are only a few of the ways in which such programs can help.

Ensuring the Safety of Your Investment Capital

Are you aware of your business’s financial future? Most people think they know their business’s financial future but the truth is if you are not a professional, your investment capital may be in jeopardy. Take the strain off by letting someone with experience handle your business capital because if you are not experienced at financing a business, you are taking your business’s financial future down a road you have never gone down before. You need someone you can trust, so you can focus on more important things like product development and your business strategies.

Product Development

Business funding can be a tricky thing to handle while financing a business.

If your business is in the development stage, you definitely do have more important things to worry about. Besides, if your business does not have anything to sell, or if your business is barely up and running, you are taking a big risk of falling flat on your face. People learn from their mistakes, but your business capital is nothing to gamble with. If you don’t have any idea about financing a business you are in bigger trouble than you first thought. You need help from professionals and from people who have been down that road before. Business funding can be a tricky thing to handle while financing a business.

Developing your Business Strategies

Do you have any idea on what you are supposed to do? Maybe so, but do you know everything you need to know before making that first BIG step? There’s more to running a successful business than just knowing how to fund a business, financing a business and gaining business capital. Product development is something you need to discuss with a professional also. Just because you might have the next great idea, doesn’t mean you know how to handle it properly. Discuss your business strategies with people who know your commitment and determination to make something good even better. Explain how you plan to expand, double your profits and defend your business capital. There’s a lot on the line, so take the best of care of your ideas and strengthen your tactics and business strategies.

Give yourself a Future

You are taking your business’s financial future down a road you have never gone down before.

Business funding is an important and very vital form of service in every business. Not knowing the “ins & outs” of financing a business can cost you dearly. Improving your business strategies is another common move made by all successful business entrepreneurs and you need somebody who knows what they are doing. Sit down and discuss all your hopes and dreams with a professional before making any important decisions. Ask a question that is the only way you are going to learn and prepare for next time. Nobody knows everything about the business, but you can improve every day. Never stop wanting to learn, and always accept improvements and listen to ideas. Some of your best ideas get inspired by other ideas. Everybody wants to succeed, and there are people out there that want to make that happen for you, all you have to do is let them.

Guide To High Return Investments

Everyone now wants high return investments and the reason is simple. If you want to get a good figure from your savings, there is no doubt that this is the right way to take. If you prefer a safer alternative, then you should take a look at short-term investments. They are an ideal solution for those who decide to invest their money in the bank, deciding to give greater importance to guaranteed security rather than a greater profit.

What are the best investments then? Long-term investments bring good gains over time unlike short term choices, such as forex and CFD. Definitely, the best way to make money, but facing greater risks of loss. It is important to know immediately, in fact, that the increased yield corresponds to greater risk.

Long-term investments bring good gains over time, unlike short term choices.

High-yield investments: why invest in the stock market?

When it comes to high return investments the secret is to determine where a given asset will go to maturity: at a higher or lower price than the initial price? What does this mean? We can define the stock exchange as one of the most classic and appreciated risky investments. In general, it is possible to say that both the shares and the stock exchange are the most appreciated options by those who want a return that is not equal to zero, or almost.

It is also fair to say that they represent a strategic point for those who do not wish to purchase government-run high-yield bonds linked to solvent states. In other words, this type of investment is ideal for those who choose to move towards regulated markets, full of initiative, to the detriment of the risk involved.

Over the course of time, investment techniques have certainly changed. For example, consider trading in shares, which allows you to minimize the risk of loss by exploiting the contract for difference (CFD) and investing, therefore, up or down. Remember, moreover, that if you invest in shares through CFD trading, you need to know which are the best and worst quotes on the stock exchange. In this way, you can determine the best options.


The bond funds are also counted among the possible options; they are offered to those who want attractive profit margins. Above all, they are ideal for those who want to invest but without the obligation to constantly monitor actions every day. In fact, the funds allow you to select your package. It is about investing in state and corporate bonds. We advise you to check, before purchase, the type of bonds, performance and origin.


When it comes to high-yield investments, you have to remember equity funds. As already mentioned, even in this case it is necessary to know how to take some risks to obtain a good profit. Remember, however, that they can have greater repercussions if compared to bond funds.

High return investments: is it possible to earn with Forex?

In this case, it is necessary to know how to take some risks to obtain a good profit.

Many people today choose the forex market to invest their capital. Again the reason for this decision is very simple and lies in its ability to move millions of dollars in a single day. Even when compared to the stock or bond market, rather than with mutual funds, it is important to stress that investing in the forex market has undoubted advantages.

Its exponential growth allows you to trade even at home. This implies that small investors are able to invest like international banks.

It is never too late to take the step towards a more secure financial future. Contact us today for a free consultation and see if we can help you with your wealth planning.

Plan Your Investments to Help Save Tax

Most people only think about investing when they need to files their returns at the end of the financial year. But smart people know that it’s best to start early. It isn’t enough to start early, though – you need to have a solid plan of investment. While it helps that your final goal of investing in a mutual fund is to save tax, you need to make sure that the mutual fund also helps you in other ways. The first thing to do, no matter what your goal while investing, is to do your research thoroughly. Narrow down your search to those that help you save tax. Once you’ve got your options down to a manageable number, you start organising on some criteria.

Your final goal of investing in a mutual fund is to save tax, you need to make sure that the mutual fund also helps you in other ways.

There are some things that you just can’t compromise on. One of those things is the fund’s performance. Look at the performance for a period of 3 to 5 years. Most funds have a lock-in period of three years, so that’s your minimum. Look at both calendar as well as annual returns, just in case. The next criterion you want to look at is the fund’s volatility. Make sure that funds with high risks come with high rewards. If the rewards aren’t what you think they should be, or if the risk itself isn’t to your liking – it’ll help you narrow down your list even more. Most funds do have a few ups and downs, though. And that can be a good thing, so long as you also have a good Sharpe ratio to go along with it. After volatility, check what the expenses of the funds are. You’ll be spending money from your returns on maintenance, so make sure that it’s low. There would be hardly any point in investing if a large chunk of your returns were being eaten up by maintenance costs. Also look at the company’s history.

It’s worse if the problems arise out of managing client assets – check to ensure that all things are clear at that level too.

If there is turbulence in their history, or if there are likely to be disturbances in the future, you want to reconsider investing there. More the problems your company faces, the less likely it is to be reliable. It’s worse if the problems arise out of managing client assets – check to ensure that all things are clear at that level too. Once you’ve gone down the list on keeping in mind these factors, you’ll find it easier to pick a fund that’s more to your liking. Remember that planning your investment is important – and these are crucial steps to making wise investments. Remember that being thorough with these steps can help you with not just saving money, but also growing it.

An Overview Of The Best Business Structure For Consultants

After becoming a consultant, it is tempting to concentrate on the advantages of being self-employed. In all likelihood, you will not have thought much about the best business structure for consultants. However, it is vital to give some consideration to this, to increase your bottom line and reduce your tax liability. There are four main kinds of structures that the majority of consultants opt for. All have their own distinctive set of benefits and drawbacks:

The Sole Proprietor Model

Corporation shareholders have restricted liability protection.

As a sole proprietor, you are classed as an unincorporated company, or an independent contractor, consultant or freelancer. You don’t have to complete any forms to begin this kind of venture. All you have to do is declare your business expenses and income on Form 1040, under Schedule C. Taking this route is the simplest way to get started in business — and the simplest way to dissolve your business if things go wrong — however, it offers limited safeguards.

The C Corporation Approach

C Corporations are incorporated businesses that enter their tax records on Form 1120. Each type of business, aside from the sole proprietor model, is regarded as an individual entity, which typically offers shareholders a degree of financial and legal protection. Corporation shareholders have restricted liability protection. Also, corporations control how much money they retain or distribute. Most corporations are classed as for-profit organizations, so they could potentially make a loss for many years.

Although this might help you when it comes to filling out your tax return, it is best to speak to your tax adviser like Walker Wayland AMD Chartered Accountants for further details.

The S Corporation Structure

An S Corporation shares similarities with a partnership (which is taxed on Form 1120S). If any shareholders provide services to the company, the S Corporation has to pay those shareholders fair wages. These wages are separate payments from profit or loss distributions. An S Corporation has the same fundamental benefits and drawbacks of a closed or general corporation. An S Corporation avoids being ‘taxed twice’, unlike a C corporation, because all loss or income is only declared once on the shareholder’s tax returns.

Nonetheless, as with regular corporations, and in contrast to certain partnerships, shareholders of S Corporations do have personal liability for any business debts.

The LLC (Limited Liability Partnership) Option

An LLC is an unincorporated business (taxed on Form 1065). In contrast to corporations, these organizations require a General Partner. This individual, or individuals, assume unrestricted liability for the company. Also, partnerships require at least a couple of shareholders and distribute all the profit and loss to these shareholders, with no concern for any money retained by the company to facilitate cash flow. Lots of business people think that LLCs are a better option than partnerships and corporations because they include many of the benefits of each.

Partnerships require at least a couple of shareholders and distribute all the profit and loss to these shareholders.

Final Thoughts

Although the above business structures are the main ones that will be relevant to you, other options exist — such as nonprofit organizations and trusts, however, they are not usually utilized by consultants. Just be aware that there are many possibilities for your company, as far as choosing your structure goes. Always pose the right type of questions to yourself, such as: “Is it indispensable to incorporate?” and “How will this benefit me?”.


How a Bookkeeper Can Boost Your Business

Whether you are hiring independent contractors, an accounting firm, or several accountants for your bookkeeping needs and a variety of finance management tasks, there should always be standards that need to be met especially in bookkeeping part as these ledgers and other documents are necessary to provide precise and accurate financial report.

Business Evaluation

A well-documented financial report can provide you pertinent information in order to evaluate the performance and assess the standing of your company against its competitors. As a business head, these are very vital in ensuring the growth of your business. These reports also involve trends which are great tools to determine the future of your business. So in order to accurately document the inflow and outflow of money, you will have to assert certain standards and detect particular indications which would result to quality bookkeeping.

online bookkeeping software

Organise Your Bookkeeping Systems

A system must be in order to make sure that every transaction is listed and sorted out. You can employ the aid of bookkeeping software so your employees can input data real-time. Having a centralized system would be a very efficient and effective means of collecting all the information necessary for your financial transactions to be laid out.

Sorted, Arranged and Categorized

If you are doing it manually, it helps that everything is sorted and arranged depending on the date and kind of transaction carried out. Having an itemized list of transactions would make things a lot easier for the people who will be working on accounting and auditing your finances. They won’t get stressed trying to match and figure out which transactions are similar and which transactions were really carried out. This also prevents double entries which can affect tremendously in the entire financial documentation process.

On Time

Bookkeeping of your accounts need to be prepared at a certain date before the tax filing deadline comes. Thus, entries from a specific time range must be collected prior to the date with allowable difference from the deadline. Also, the entries need to be accurate in every aspect. You wouldn’t want to get jailed and serve sentence for tax evasion.

Working on books


These are just some of the indications and qualities that appropriate bookkeeping entails. While everything may seem so hard to carry out, it would be a lot easier if you would hire a professional bookkeeper to do all the work for you. In Mandurah, Western Australia WW AMD Chartered Accountants provide a range of professional bookkeeping services outlined in this article. You could find a similar bookkeeping provider in your local area. This will save you a huge amount of time and effort which you can spend in other vital parts of your company or with your friends and loved ones.

Tips on Minimizing Your Business Tax

As a business owner, you don’t want to spend more tax than is necessary. It is also best to avail the services of the accountants, like Accountants Cherry Black, for consultations and proper tax filing. Yet, consider these top 10 tips from business tax accountants to help you get the best of tax deductions and refunds.

1. If possible, your taxable income should be deferred until the following financial year. The income receipt can be delayed by cash based businesses while invoicing can be deferred by non-cash operations.

2. Take advantage of a tax deduction by writing off old plant or stock before 30 June.

3. For year end expenses incurred but not yet actually paid by 30 June, claim an immediate deduction.

This includes employee salaries and wages earned but not paid by 30 June. In addition, staff bonuses also qualify for a tax deduction when it is a definite expense that the business has committed to.

Any maintenance and repairs are also tax deductible if billed and undertaken before the end of the tax year.

4. Instead of paying full income tax at 46.5%, split the income as company (30%) or lower taxed spouse (16.5% or 0%).

5. Physically write off the business’s bad debt before 30 June. This can only be done if you have proof that you have have genuinely attempted to recover the debt. Also, the debt has to have been shown as income before being written off.

6.Small Business Entity (SBE) concessions are available for businesses with a turnover of less that $2 million.

For example, prepaying expenses like interest, insurances, rent, subscriptions, rent and lease payments enables an immediate deduction.

7. Don’t get caught in the trap of spending money simply to qualify for tax deductions. Remember, you will only receive 30% back if you are a company held business.

8. Pay your employee superannuation contributions by 30 June in order to be eligible for the tax deduction of that financial year.


9. Before the end of the financial year, repay any interest and principal on any loans borrowed from your company. If you don’t, the entire loan amount will be taxed at the much higher marginal rates. This may include using company assets like vehicles for private use.

10. Finally, in the event of a tough financial year, you can vary the PAYG instalment for the last quarter of the financial year.

Ideas On Selling Investment Property

The goal of an investment property is to make money for the owner; so when it comes to selling that property, making a profit is going to be a top priority. In many ways, selling an investment property is similar to selling a home, where you hire an agent to market the property to potential buyers. However, investment properties operate under different tax rules than the home you live in, so you’ll need to be aware of this. Here are some factors to consider when thinking about whether to sell your investment property.

The Neighborhood Has Changed


If you purchased a good property when the market was down, you may have made a nice return, and it could be a good time to cash out. However, if the opposite has happened and the neighborhood is deteriorating, you might want to get out before property prices in the area fall too far.

The Property Needs Major Repairs

Whether it’s a crack in the foundation or a roof that needs to be replaced, if substantial repairs are needed and you don’t want to put the time, money and energy into it, it may be time to sell the property. However, you will need to disclose these issues to the buyer which may affect the property price.

The Property Is A Tax Liability

Owning property can actually raise your tax bracket, so that may be a good reason to sell, especially if you are no longer interested in being a landlord. Before selling, take note of the expiration of any potential tax abatements.

There Are Better Returns Elsewhere

When looking at your investment, you should consider all of your options. If you have had a property for a long time, it may have increased in value, which could be a good opportunity for conveyancing the property and diversifying the proceeds into other properties or investments, such as stocks and bonds.