Pierre Money Mart Blog

Small is in vogue and automakers are responding with a tantalizing selection of economy cars for 2009.

Our three favorites — the Honda Fit, Nissan Versa S and Scion xD — are chic five-door hatchbacks that are fun and affordable to drive.

Buy one, and you’ll be shocked at how little they have in common with the boring, low-rent econoboxes you remember from just a few years ago.

Honda Fit

Finding a Fit in your favorite color may be a challenge. Demand is that outsized for this sophisticated and intelligently packaged hatchback.

It’s fun and practical, with fuel economy better than just about anything this side of those pricey hybrids, plus a jackpot of standard features, all housed in an enlarged interior and exterior that makes the all-new 2009 Fit even better than the wildly popular first-generation model.

Plus, it’s got “Honda” written all over it in quality, reliability and respectability.

All of our favorites come with four-cylinder engines. Though the Fit’s 117-horsepower, 1.5-liter engine is the smallest of the bunch, it gets the best mileage — an estimated 28 miles per gallon in the city and 35 m.p.g. on the highway.

The Fit remains small and nimble, but the ‘09 is a little longer and roomier, with more rear legroom and cargo space behind the backseats.

The brakes prudently and responsibly feature an antilock system (ABS) that allows you to steer around trouble even as you lay into the brake pedal with all your might. We just wish all of our favorites would put disc brakes on all four wheels instead of opting for cheaper drum brakes on the rear.

Though the 2009 Fit’s safety ratings haven’t been determined, earlier models had five-star ratings all around. The new design includes side-impact air bags for front occupants and head-protection curtain air bags all around.

Standard Fit features include air-conditioning; power windows and door locks; a 160-watt AM/FM/CD audio system with a USB port to jack in an iPod or other personal electronic device; revised, more-comfortable front seats, and improvements to the Fit’s already nifty 60/40 split-folding, rear-seat design that quickly allows you to configure the cargo area in one of four ways.

The significant new addition to the Fit lineup is a navigation system for Fit Sport models. You can’t get stability control, a critical safety-enhancement, without buying the navigation system.

Unfortunately, that and a five-speed automatic transmission push the price for a top-of-the-line Fit to $19,340, including the $670 destination charge. We think that’s too much for a budget-sensitive car like this.

The regular Fit Sport with automatic transmission is a more reasonable $17,580. But most of the same wonderfulness is available in the base model that costs $15,420 with an automatic transmission.

That’s what we’d buy.

Nissan Versa S

Nissan Versa Starting at just $13,685 including destination, the Versa S underscores Nissan’s reputation for delivering a lot of car for the money — in this case, the lowest price of our three favorites.

But don’t be deceived. The Versa offers just about everything the others do, plus a few things they don’t, such as the added flexibility of a six-speed manual transmission.

For 2009, antilock brakes remain a $250 option we never would omit, and cruise control at $200 is a must for long-haul drivers. But aside from that, the Versa S earns full marks as a class competitor, making it our bargain recommendation.

In addition to being a standout for price, the Versa stands head and shoulders above the competition in terms of headroom and legroom. Rear-seat legroom is nothing shy of a blessing for adults, thanks to the 102.4-inch wheelbase (versus 96.5 for the Honda Fit and 96.9 for the Scion xD). And when you’re not hauling people, you can pack 50 cubic feet of cargo into the back. That’s roomy.

Even though it looks sporty in a European, hot hatchback kind of way, the Versa isn’t really a performance vehicle. The ride is pleasantly comfortable, but carving up corners and braking on a dime are not its strengths.

Working with the six-speed manual, the 1.8-liter, 122-h.p. four-cylinder performs as you’d expect from a commuter car — think solid performance with no outstanding virtues or vices, including its fuel-economy (26 m.p.g. city/31 highway).

For those really looking to squeeze the m.p.g. sponge, you can pay an extra $1,000 for the continuously variable automatic transmission and boost your fuel economy to 27 m.p.g. city and 33 m.p.g. highway.

Even if you spend the $1,000 to get the four-speed automatic transmission, the Versa S comes with plenty of comfort and convenience — air-conditioning, an AM/FM/CD sound system and 60/40-split, fold-down rear seat are all standard.

If safety is your primary concern, the Versa will impress with front-seat-mounted, side-impact and curtain-type air bags protecting both rows of outboard occupants from flying glass and debris in the case of a side-impact collision or rollover.

Unlike the Honda Fit, the Versa offers appealing options, including a rear roof spoiler ($250) and cruise control ($200), as well as some bundled appearance and features packages that you may want to invest in with the money you save buying a Versa in the first place.

Scion xD

Toyota Scion xD The xD was all-new last year as a replacement for the xA hatchback and rolls into ‘09 with no changes other than a marginal $100 price increase (and a $50 hike for destination, a profit-bumping ploy you’ll see this year throughout the auto industry).

The xD is markedly larger and plumper than the old xA, but it’s much more finished feeling, too.

Scion’s pitch to younger buyers is the ability to accessorize, and the list of add-ons for all its models is as long as your arm. A cursory list of xD add-ons includes a navigation system that incorporates a thumping upgrade of the stereo, XM or Sirius satellite radio and a bunch of cosmetic options that we wouldn’t buy but that can make the car feel more customized, if that’s important to you.

While unconventional, the Scion’s neo-box exterior tries a little too hard to be hip. Thankfully, the interior tells a different story. The xD’s insides are downright attractive, with sport front seats and a terrific 160-watt, six-speaker AM/FM/CD stereo with iPod/MP3 playback capability.

As a performance beast, the xD holds its own. A 128-h.p., 1.8-liter four-cylinder engine is nicely matched to the five-speed manual transmission. The combo gets 27 m.p.g. in the city and 33 m.p.g. on the highway. A four-speed automatic transmission adds a reasonable $800 to the cost and subtracts just 1 m.p.g. from the mileage ratings.

The Scion’s 16-inch wheels and tires also give it a comfortable confidence at higher speeds that the Honda and Nissan can’t quite match.

Safety equipment is as good as it gets in this class. Scion is the only one of our favorites to provide standard antilock brakes and offer a traction and stability control system as an option ($650).

Given the fine driving environment and the generous list of safety and convenience features, the xD is a great choice if you’re looking for a lot of standard equipment.

The starting price of $15,320 ($16,120 with the automatic transmission) buys a lot of fuel-efficient car, and about the only option or accessory we’d deem vital is the stability-control system, which would make the xD an entertaining, useful and safe runabout for around $16,000.

With person-to-person auto loans one simply buys from a private party instead of a dealership or a car company. There are many people under the impression that buying a used car directly from an owner will get them a much better deal than they would from a car dealership. This is especially true in cases where the car owner and the car history are well known to the buyer. It eliminates the possibility of hidden surprises springing up along the way. On the whole, these auto loans have a lot in common with other methods of buying cars. However there are also certain differences that can be important concerning private auto loans.Higher rates as compared to buying a new car: When it comes to any used car, the rates for person-to-person or private auto loans invariably prove to be more than those for a new car. To take an example, rates for private party sale auto loans from online auto loans lender will usually be higher by about two points compared to what is charged for traditional new auto loans and about one and a half points higher than the interest rate being charged for used car loans for vehicles purchased from dealers. Another difference is that this type of loan is based more on you than the collateral or the car. Due to this rates fluctuate according to your credit history and other aspects concerning your loan application.

Loan term may be less than that of a new car. The standard duration for financing a new car can be up to seventy-two months. In the case of private auto loans, it may not be possible to finance a vehicle for the same duration. Usually lenders are ready to finance private auto loans for at most forty-eight months, though there may be exceptions when they have been known to finance for periods longer than that. However, it is important that auto loans finance is done for as short a period of time as you can possibly afford. This is to ensure that you don’t end up in a situation where you owe more on the car than its value (upside down car loan) and to minimize the amount of interest you are required to pay.

With many lenders a down payment may not be required for person-to-person auto loans. Despite not being required, it is better to put money down. Doing this will reduce your chances of being upside down in your car loan in the future. Taxes, title and registration have to be paid separately when you purchase a new car from a dealership. The dealer normally combines taxes, title and registration fees into the loan amount. For private auto loans, the lender will not allow you to finance the fees and will require you to pay for them out of your pocket.

On purchasing a new vehicle, the title is put in your name almost immediately. When it comes to person-to-person or private auto loans, it could take longer. The owner of the car you are buying from may still owe money on the car and it could take a week or longer for completing the payoff process. His lender needs to receive the payoff amount before he transfers the title to the car owner and then it can be turned over to you. The duration of this process is mainly based on the location of the lender. In case of the local bank, this process should not take more than a few days. However if the lender happens to be in another state, it could take much longer for the transfer to be done.

To briefly sum it up, private auto loans make a good option if you are a creditworthy borrower. However id your credit happens to be less than perfect, it may be better to turn to your local dealership as the best source for an auto loan.

Your credit score is what lenders use to assess their risk in loaning you money. Your credit score is based on the information in your credit report, so first analyze your credit report and look for errors that could be effecting your score. Improving your score can help you get approved for lines of credit easier with lower interest rates, thereby saving you money.

Once you know your score, follow these easy tips to improve your rating:

1. Pay your bills on time consistently. Late and missed payments, especially accounts that have been sent to collections, have major impacts on your score.
2. Keep balances low on all of your credit cards. Maxing out your credit cards will lower your score, possibly by as much as 70 points.
3. Avoid opening or closing a lot of new credit cards at once. It may seem like a quick fix, however a significant amount of new credit will harm your score, and closed accounts can still have an impact.
4. Use the credit you have wisely. Manage your current accounts, by making payments on time and being aware of balances and limits, to prove to lenders you are responsible with your credit.
5. Moving debt around (e.g. consolidating the debt on your cards) without paying any of it off can lower your score. Keep your debt where it is and focus on paying it off.
6. Check your credit report often to spot errors quickly and track progress.
7. Avoid credit repair agencies that promise an instant fix. Rebuilding your credit takes time, and any agency that guarantees instant credit repair is only looking to exploit people in need.

With ever increasing consumer debt more of us are finding ourselves robbing Peter to pay Paul each month.

We go through our bills and find that the money just won’t stretch far enough to cover all of the bills and expenses. It’s hard to decide who you should pay when you have one bill that is stamped with “Final Notice” and you are behind on several of your other bills.

If you don’t pay the credit cards you know that you are going to start getting those harassing phone calls. If you don’t pay the house payment you are looking at foreclosure. If you don’t pay the utilities they will shut them off. How do you decide?

When you get to this point it’s time to get down to basic survival and work from there.

I have actually talked to people that stated their credit cards were up to date but their mortgage was two months behind. This is one of the biggest mistakes we can make when we don’t have the money to pay everything.

Another mistake I see on a regular basis is that some people pay their bills at the expense of their food budget.

If you have the money to pay some of your bills you have to start with groceries first and necessary health items. You can try to save as much as possible on your food but that money has to be set aside before anything else.

The next bill you must pay is your mortgage or rent. While credit cards companies will drag out their collection process, mortgage companies and landlords will start the process of foreclosure or eviction within just a couple of months.

Your next priority is your utilities. In many cases utility companies will turn off your utilities if the bill isn’t paid within a few days of receiving the bill.

Once you are sure you have enough to eat and a roof over your head you can start thinking about your other bills. The secured loans, like your car payment, should come before your unsecured loans, like your credit cards.

The reason for this is simple. Creditors that have secured property will sue or repossess much quicker than the credit card companies.

If you find yourself in this situation it is a sign that you need to do something drastic and fast. By not paying all of your bills each month they are going to add up quickly and you are going to accumulate a lot of late fees.

The best place to start is to find out exactly where you stand and what is causing the problem. This is as simple as listing your income on one side of a piece of paper and your bills on the other. Total each and subtract your bills from your income.

Whether you use my budget system or another it is very important that you start one as soon as possible. For those of you that believe a budget is to restrictive, just the opposite is true. The only way you can get what you want and know you can afford it is to have a budget in place.

It is important that you pay all of your bills on time each month. When you don’t have the money to pay everything it is vital to your survival that you pay the most important bills first.

If your family’s looking for a safe, reliable and reasonably priced car for a college driver get better grades when they do their homework.

Automotive sites such as www.pierremoneymart.com contain useful tools and information to help you figure out exactly what type of car is right for your student. Even before considering make and model, the first step is often deciding whether a new, used or Certified Pre-Owned (CPO) car is best for your budget.

Certified Pre-Owned cars seem ideal for the student driver-offering the experience of buying a new car for a used car price and still getting a warranty on the car. Most (CPO) cars even get a better financing rate.
CPO cars are used, but are often selected for their nearly new condition. They go through rigorous inspection to become certified-to gain the “seal of approval”-by the original manufacturer, which often provides a warranty.

To some, CPO cars mean being able to buy a luxury brand for less, while others look at it as peace of mind. You can request the list used during inspection and know what repairs or maintenance work was done. Even better, many CPO programs offer roadside assistance.

After you’ve compiled all your research on the type of car you want, you can save time and energy by shopping for your car by make and model on a classified Web site such as PierreFord.com.  If you’re on a tight budget, as many college students are, you can easily search for and compare similar cars in your price range.

Just like at school, do your homework, compile the research and then make an educated decision. Applying that to buying a car will put you a step ahead of the class, and closer to finding your perfect car for your family.

Credit Report Options

What is a Credit Score?

A credit score is a numeric representation of your creditworthiness. Numerical weights are placed on different aspects of your credit report, and a mathematical formula is used to arrive at a final score. Credit scores are one of the primary tools a creditor uses when determining whether to lend money to you and at what interest rate.

Consumers everywhere are routinely accessing their credit reports as part of their overall financial management. Some keep track of open lines of credit, credit limits, and rates, while others review credit reports to safeguard against identity fraud. In any case, the growing demand for credit reports has resulted in more report options for you.

Some of the credit score options provided by the service companies are:

• Single Credit Report :consumers can request one free credit report from each of the three credit reporting agencies every 12 months. Each agency could have different information, so you may want to stagger your requests from each agency during a 12-month period.
• 3-in-1 Credit Report : A single report showing side-by-side information from all three credit bureaus.
• Report, Score, and Debt Analysis: A single report, credit score and debt analysis.
• ID Fraud Watch: Immediate notification of report changes, weekly e-mail fraud alerts, quarterly access to credit report, and ID theft insurance. Also includes your credit score and debt analysis.