Sunday, March 29, 2009

Great American cars at low price.

Present economy and low auto sale have brought the price down for some great American cars. The auto sale counts are such low that car manufacturers and dealer have decided to low down the price to get the things moving again. Now you can get some great cars at really amazing prices. This is the right time to buy a car if you are planning to get one.

We are aware of the present market status and fear to invest or hesitate to purchase a new thing even if we get it for an unexpected price. As our economy is in recession, we tend to save money and spend as less as we can, however, you won't get such offers when the market go up and our economy will get back to normal again. So in my opinion it's the best time to purchase a car if you plan to buy it later. You can go for a car loan and get it now.

As per the real-world pricing data by Vincentric for AOL Autos, many American trucks and cars prices are going down below dealer's wholesale price. This includes some top most and competitive cars.

Check out few cars and their prices:

Cadillac CTS

Sticker price:
$36,560 - $40,760

Wholesale price:
$34,366 - $38,314

Market price:
$30,607 - $34,500


Sticker price:
$28,550 - $36,810

Wholesale price:
$26,842 - $34,072

Market price:
$21,725 - $28,654

Pontiac G8

Sticker price:
$28,250 - $37,610

Wholesale price:
$26,979 - $35,918

Market price:
$24,028 - $33,060


Sticker price:
$31,890 - $40,490

Wholesale price:
$30,136 - $38,263

Market price:
$27,020 - $34,095

Sunday, March 22, 2009

Loan Modification: Get a new start and save your home

Loan modification is a revised agreement between the borrower and lender with new interest rates and terms. It's a great tool for borrowers to avoid foreclosure or bankruptcy. Banks or lenders agree for loan modification only if they believe that the borrower won't be able to repay the current loan with current terms and interest rates.

If you are able make regular payment now, but can't catch up with the past dues, you can negotiate with lender/banks for the past due amount including interest and principal. Once the lender agrees on this, you will get a new period of time to repay for the new amount.

Or if you are unable to pay with current interest rates, you can negotiate with lender to extend the time period. The loan amount can be modified to affordable level.

In few cases the banks or lender can consider reducing the loan amount that you currently owe and also can lower the interest rates. It's up to your negotiation and the lender to consider it.

Considering the present market status it is of sure to get the loan modified, as the banks and lender are aware of the financial crisis. They know that if they don't give a chance to borrower to repay the amount with their affordable level, they might not get their money at all.

A loan modification can change current mortgage and help you to get a fresh start to manage your financial status and save your home.

Sunday, March 15, 2009

Global job crisis.

Union activists protest against rising unemployment in Sao Jose dos Campos

We all know about the present situation of global economy and job crisis all over the world. Let’s check the job crisis percentage of major countries. After 1930 Depression, United States is facing the worst economic crisis. Here are few facts:
  • In 2008 2.6 million U.S. jobs were lost.
  • Since 1980, only 5 percent wages have increased, whereas 70 percent productivity has grown up.
  • Each worker is working extra hours or second job to maintain the financial condition. Also each family is sending more members to work.
  • In the last week that ended on March 7, record says initial jobless applications increased by 9,000 to 654,000.
Now let’s check what's going on in UK. It's noted that for each vacancy advertised in UK, there are 10 job seekers. In another area of south-east, for each job 60 workers are available. This week number on unemployment expected to go beyond 2 million. In central London, there are 4,275 vacancies against almost 71,000 unemployed. The most unemployed workers are in Isle of Wight. There are almost 3,152 people going after 52 advertisements.

Job loss at Cadbury UK

Let's check Canada's report. Canada lost more than expected or can say worse than expected 83,000 jobs in February. The jobless rate is almost 2 percent high than were it was in last year. Its now stands at 7.7 percent. In last four months, there are 295,000 jobs shed by economy. Prime Minister Stephen Harper expects the number of unemployment to rise further.

Friday, March 6, 2009

What we understand by recession?

We all know that our world economy is in recession, but do we really know what recession mean? and how it is counted. I'll try to define recession in the way what I understood.

In economics, recession is described as decline of country's gross domestic product for at least two months. Experts and professionals also believe so. But in my point of view the root of recession starts from previous quarters than just last two quarter’s decline. Let go through the economic cycle and check how economic conditions changes like weather.

The Economic Cycle:

When the economic growth is positive, number of employment is maximum and and almost all are making money. Since we are making money we tend to spend it, so demand for goods such as food, vehicle, electronic products are larger. At a point of time demand gets so high that supply can not keep up.

Now this high demand cause a rise in prices of goods. With the prices, salary's need to rise to keep up with the high prices of goods. Rise in salary causes companies to rise most of the items price. When the price of most item get high, consumers either stop buying or slow down considering the prices of goods are too high. The demand gets decreased and companies start cost cutting which leads to decrease the number of workers as they don't need to produce as much goods as before.

With decreasing demand the prices also get decreased which push the economy in recession.

Again companies will come up with various offers and low prices to increase their sale. Due to which demand goes up and the economic cycle goes on.

Graph of recession & the economy over time

In Unites States the official in charge of declaring recession is NBER (National Bureau of Economic Research). Definition of recession as per NBER is “significant decline in economic activity lasting more than a few months.

Check my latest finance post here.