(Posted on Aug 13, 2018 at 05:26AM by Patrick Wensink)
Hey Patrick,
I have my eye on a pre-owned Nissan Leaf, and I’m trying to decide how to finance it. What is the difference between pre-computed versus simple interest loans?
-Ariel
Hi Ariel,
That’s an awesome choice for a car. I can see why you are so eager to get rolling (pun intended!). These two types sound confusing but are actually perfect for customizing schedules depending on whether or not you aim to pay it off early.
A pre-computed loan means that each deposit made for the life of the note is calculated out exactly. So, if you have a five-year plan it will always be that amount every month. However, this type of borrowing is not ideal if the aim is to pay off the car in less time, because you will not save on interest.
If you are aiming to fluctuate regular deposits and maybe complete the note early, a simple loan is the way to go. This method of lending re-calculates the interest based on the outstanding debt on a daily basis. It will save money if you are able to contribute extra each month.
Hopefully, you know which is right. Let me know if you have more questions.Â
(Posted on Aug 13, 2018 at 04:55AM by Patrick Wensink)
Hello Patrick,
I’m all set to buy a new Nissan Maxima, but financing is making my head spin. Can you explain the difference between secured and unsecured auto loans?
-Scott
Hi Scott,
Thanks for reaching out for such an important decision. I have good news for you: the difference is pretty basic. It essentially boils down to what happens if you fail to pay.
First, let’s discuss a secured loan. What this means is that the lender needs collateral in order to fund the purchase. Usually, there is a lien put on the vehicle being purchased, but sometimes another car or a house can be used instead. Regardless, the borrower will get that item repossessed if they cannot adhere to the schedule.
An unsecured one, on the other hand, does not require any assets be put up against the value of the money lent. If payments are not made, legal action is the only way for the lender to recoup their loss. This type tends to have a higher cost and interest rate, due to the added risk on the bank’s side.
As long as the bills get paid on time, it comes down to what is the best fit.
Let me know if there are any more problems I can research for you!
(Posted on Aug 10, 2018 at 04:46PM by Patrick Wensink)
Hi Patrick,
I am so mad at myself! I was drinking coffee in my new Nissan Altima and hit a pothole. Now I have a stain on my beautiful leather seats. Are they ruined?
-Darlene
Hi Darlene,
I am sure you must feel awful, but have no fear! Keeping things spotless is much easier than you would guess. A lot of this has to do with the fact that cowhide for cars is designed to take a beating.
First, choose a cleaning solution specifically for interiors like this. Most auto stores will offer a wide selection. The most important part is that you should also buy a leather and upholstery scrub brush. These are made with gentle bristles that won’t damage the material.
Follow the dilution directions on the bottle.
Find a portion of the seat to test everything on before tackling the big stain. I like to use the front end of the passenger side, which is usually out of sight.
Once you are certain this is the right combo, simply scrub out the coffee according to instructions and dry.
Everything should look as if it’s never seen a drip of java.