Land Development Values ​​- Rules of Thumb

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People who want to invest in land to either "develop" it (as that term is defined in the articles in this Land Development Values ​​series) or to build on it and sell a total package (eg, a new home on its lot) have to sift through many parcels because everyone wants to try to sell them a property! The process of identifying the parcels that are worth pursuing, therefore, is very time consuming, and land buyers need tools to enable them to quickly weed out the junk and identify those parcels that warrant further consideration. So buyers typically use rules of thumb and formulas for their preliminary screening.

These rules of thumb are designed to provide rough estimations relating to the yield of a site and different cost factors because these are the key aspects in calculating the "right" price that should pay for the land. By eliminating the price at which the numbers work, land buyers can see within minutes if the seller's asking price is realistic. If the land parcel is substantially overpriced, the buyers can simply discard the property and move on to better prospects.

Commercial Land Developments
Not surprisingly, the methodology for rough estimating site yield and improvement costs is not the same for both residential and non-residential land developments. For retail or office parcels, the yield is the amount of potential building space that can be built. This is usually a function of the number of parking spaces that will fit on the parcel and taking into account the overall development limits imposed by impervious coverage and green space requirements set by the zoning ordinance. One rule of thumb might be used to estimate the total amount of land area needed for each car that would be parked on the office property (eg, square feet for parking space plus drive aisle). Another would approximate the amount of land area taken up by sidewalks and walkways. A third rule of thumb may assume that the cost for vertical and horizontal improvements would be $ 100 / sq. ft. of office space.

Residential Land Developments
The rules of thumb applied to residential land developments would have been designed to estimate the number of building lots that the parcel could produce once the subdivision had been completed, and the cost for horizontal improvements. The value of each "raw" building lot would be calculated based on the projected sale value of the finished product (house on its lot) and the improvement costs.

One site yield rule of thumb might net out of the gross land area of ​​the parcel the amount of square feet that would have been wasted or could not be used for whatever reason and then would divide the result by the amount of the minimum lot size required by the zoning to come up with the number of lots. For example, the rule of thumb calculations might look like this for a 15 acre vacant parcel zoned for 20,000 sq. ft. lots:

Step 1: 43,560 sq. ft. x 15 acres = 653,400 sq. ft.
Step 2: 653,400 sq. ft. x 70% = 457,380 sq. ft.
Step 3: 457,380 sq. ft. divided by 20,000 sq. ft. = 22.87 building lots

The final result is always rounded down , so there would be roughly 22 building lots for this parcel. In the second step, 30% of the gross site area was diverted to account for wastage, square feet lost because of natural constraints (eg, slopes, floodplain, irregular shape) and land area that would have been taken up by new roads in the community .

Remember that rules of thumb can vary by geographic area. They are rough estimations so you should modify them as circumstances warrant and not just apply them blindly. If a substantial portion of the 15 acre parcel was in floodplain, it would not make any sense to deduct only 30% of the total gross site area. If you're not sure what rule of thumb to use, be conservative.

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Source by Nancy Chadwick

Writing & Business Letters Checker – Check Any Letter in a Click!

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If you look for an ideal writing, editing, and proofreading solution, you should try using this Writing & Business Letters Checker technology. For most of us, writing is one of the most important tools that enable us to achieve many of our personal, interpersonal, and business goals. Read the following review in order to learn more on how you can write better English.

Some background

The following solution is basically an automatic proofreading tool; This advanced Writing & Business Letters Checker enables you to improve your English writing by identifying any grammatical and / or spelling problem as you write. Sophisticated grammar processing tools rely on advanced algorithms and ever-growing databases. They first analyze, then compare, and finally correct your writing. Proofreading and grammar tools provide the following: suggesting corrections for common grammar and punctuation problems, spell checking, and text enrichment.

Important advantages

Do we really need it? Well, let's examine what is in it for us:

* Improving and enriching our speech, enabling us to speak correct and better English.
* Saves us time spent on grammar guides.
* Improving sentence construction with correct grammar and punctuation.

We could probably count other advantages that are not covered here, as this unique system is constantly moving forward, bringing us new improvements and ideas that help us on improving our English writing.

Summary

Thanks to this powerful Writing & Business Letters Checker we can easily handle one of the most complex areas of a language – that is 'Grammar'. Can we completely trust this technology to fix our writing in 100%? Probably not, but it certainly helps us on identifying basic writing problems before we do. In the next few years we can expect this advanced tool to further develop itself, for a single reason: writing is one of the most important tools that help us communicating with others.

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Source by Gil Lavitov

Remodeling Interior Doors and Kitchen Cabinets – Matching Styles

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Remodeling your interior doors and kitchen and bathroom cabinetry, utilizing matching styles, is one of the most effective and cost-efficient means of revitalizing the look of your home. Capitalizing on a contemporary European design, new wood cabinets can lighten and brighten your bathroom and kitchen, making the rooms feel modern and clean, while new wooden interior doors create a sense of solidity and timelessness.

Custom interior doors, designed to match your chosen new cabinetry in matching wood styles, create a united feel throughout your home, reflecting positively on your sense of design and tying-together the different rooms into a unified whole, creating a sense of unity and permanence. We have all been in homes that feel disjointed and unfinished; if only those owners knew what you know: that it is essential to have matching looks and appearance in your home wood doors and custom cabinets, and that such cohesiveness creates a sense of harmony and luxury.

Every home should reflect well upon the owner, representing their fashionable interior design concepts. While it might be tempting to completely remodel your home when you have new ideas, which is not a cost-effective decision, especially when it is less expensive to remodel and improve upon your already-established concepts. New cabinets in your kitchen lend themselves to practicality and efficiency. The same is true for bathroom cabinetry. And then, when you add in new interior doors, where the wood styles match and compliment the cabinets, you have created a revitalized living space for less than the cost of a complete remodel.

Quality is an essential component to an interior design concept: cheap materials are insubstantial, easily destroyed, lack durability, and create a sense of instability within a home; therefore, it is essential to select high quality, professional designed and crafted materials, which are durable and solid. Interior doors made of the highest quality wood, with no filler or honeycombing, are a sign of quality, designed to last for the lifetime of your home. Likewise, bathroom and kitchen cabinets, completed with wood doors and drawers, are built to the strongest modern cabinetry standards, designed to serve you and your family well over years of repeated usage.

Custom European awareness pervade the crafting of contemporary designs in building products ready for installation, including interior doors being prefinished and prehung, ready to take their place in your home. The same is true for European frameless cabinets, equipped with quality hardware, materials, and accessories, so you know that your new cabinets will fill your home with a modern feel.

Tired of your home’s lived-in appearance? Want to remodel but cannot afford a completely new interior? Need to create a sense of permanence and modernity? The purchase and installation of new, wooden interior doors, in addition to new matching bathroom and kitchen cabinets will create a feeling of completeness in your home, letting your guests know that your interior design extends through all details in all of the rooms, creating a peaceful and balanced contemporary atmosphere.

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Source by M. Applebaum

Difference Between General Contractor and Remodeling Contractor

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If you are thinking of improving your home with the help of home improvement service providers, you have to keep in mind that one professional may offer a different line of services than another. There are those companies that specialize in interior designing for commercial buildings and there are those that have full-service offers in handyman services.

While there is a wide array of services that you can consider for your humble abode, two kinds of professionals are highly demanded in the market these days because of the growing need of homeowners when it comes to home improvement needs. Right before you hire a service provider who is professional enough in updating and reviving the glow of your home, you have to take into consideration the difference between a professional service provider and a remodeling contractor.

A general contractor is one kind of professional that you can hire if there is a need for several specialists to take care of your home improvement needs. He is the person responsible in supervising the project and assuring that the tasks involved to complete the project are appropriate for the scheduled time.

Furthermore, he makes it a point that the entire project is suitable for the budget you have agreed upon. There are times when this kind of service provider will not be the one to do the work in improving your home. He takes care of the hiring of specialists or subcontractors who will be the point of contact in the necessary duties of the project.

Remodeling Contractor
This type of service provider is a team of professionals who specializes in renovating and remodeling different parts of a house. They are the ones who hire electricians, interior designers, handymen, architects, and any other pertinent specialists who can take good care of your home improvement needs.

There is a different between an entity that focuses on remodeling and one that is commonly referred to as a professional service provider. A remodeling contractor has the tendency to offer various services that a professional service provider does not usually offer to homeowners.

One good advantage of hiring this kind of contractor is the inclusive warranties that they offer to their client. If you are about to decide on which kind of contractor you want to work with in improving your house, it is always best to determine your needs so that you will be able to hire the most effective professionals for your project.

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Source by Fidelio Orosco

Methods of Generating New Ideas for Entrepreneurs

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Summary: Even with a wide variety of sources available, coming up with an idea as the basis for a new venture can still be a difficult problem. The entrepreneur can use several methods to help generate and test new ideas including focus groups, brainstorming and problem inventory analysis.

The following are some of the key methods to help generate end test new ideas:

1. Focus Groups – these are the groups of individuals providing information in a structural format. A moderator leads a group of people through an open, in-depth discussion rather than simply asking questions to solicit participant response. Such groups form comments in open-end in-depth discussions for a new product area that can result in market success. In addition to generating new ideas, the focus group is an excellent source for initially screening ideas and concept.

2. Brainstorming – it is a group method for obtaining new ideas and solutions. It is based on the fact that people can be stimulated to greater creativity by meeting with others and participating in organized group experiences. The characteristics of this method are keeping criticism away; free wheeling of idea, high quantity of ideas, combinations and improvements of ideas. Such type of session should be fun with no scope for domination and inhibition. Brainstorming has a greater probability of success when the effort focuses on specific product or market area.

3. Problem inventory analysis- it is a method for obtaining new ideas and solutions by focusing on problems. This analysis uses individuals in a manner that is analogous to focus groups to generate new product areas. However, instead of generating new ideas, the consumers are provided with a list of problems and then asked to have discussion over it and it quite results in an entirely new product idea.

The entrepreneur is not limited by only the three methods presented in this article. There are other creative problem solving methods and techniques that are also available.

Copyright 2005 Stephen Pierce

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Source by Stephen Pierce

Types of Innovation

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Creativity can be defined as problem identification and idea generation while innovation can be defined as idea selection, development and commercialization.

There are other useful definitions in this field, for example, creativity can be defined as constituting of a number of ideas, a number of diverse ideas and a number of novel ideas.

There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialization. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercializing those ideas will not be wasted.

Types of Innovation

Tidd et al (2005) argue that there are four types of innovation; consequently the innovator has four pathways to investigate when searching for good ideas:

a) Product Innovation – new products or improvements on products. The new Mini or the updated VX Beetle, new models of mobile phones and so on.

b) Process Innovation – where some part of the process is improved to bring benefit. Just in Time is a good example.

c) Positioning Innovation – Lucozade used to be a medicinal drink but the was repositioned as a sports drink.

d) Paradigm Innovation – where major shifts in thinking cause change. During the time of the expensive mainframe, Bill Gates and others aimed to provide a home computer for everyone.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with an Innovation Bible, Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http: // www .aging-creativity.com /

You can also receive a regular, free newsletter by entering your email address at this site.

Kal Bishop, MBA

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You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

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Source by Kal Bishop

Ladera Ranch Mello Roos Explained

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There is a lot of misunderstanding about Mello-Roos in Ladera Ranch. Simply stated, Mello-Roos is a special property tax assessment that is levied on Ladera Ranch (and other cities) real estate within a designated district. These Ladera Ranch Mello-Roos districts are created to raise money by the sale of bonds, for the purpose of financing infrastructure improvements for that community. This infrastructure improvements may include drainage systems, sewer treatment, water lines, new streets, new parks, upgraded electrical lines, etc.

The motivation for the creation of the Mello-Roos tax started back in 1978 with the passage of Proposal 13. Prop 13 limited local Governments ability to pay for capital facilities and services by increasing property taxes. In 1982, Senator Henry Mello and Assemblyman Mike Roos empowered the Community Facilities District (now called Mello-Roos) to enable local governments with an another means to raise needed funds, and the first Mello-Roos district was created in 1986. Below are some of the more common questions that are asked about Ladera Ranch Mello-Roos:

A.- What is the Total Tax Rate in Ladera Ranch including Mello Roos?

When homes were first built, the Ladera Ranch Mello-Roos fee plus Prop 13 base tax totaled about 2.0%. Prop 13 base property tax is approximately 1.1% of the purchase price and the Mello-Roos portion of the tax was approximately an additional 0.9%. One important distinction is that the Prop 13 Tax is based upon the sales price, so as your home appreciates and is sold, the new Buyer has to pay a higher property Tax. But, the Mello-Roos tax is not based upon the sale price and mostly lasts constant even after years of appreciation. Due to the strong appreciation that Ladera Ranch has experienced since the homes were first built, the Prop 13 tax adjusts upwards at bout 1.1% of the purchase price, while the Mello-Roos essentially stays fixed at approximately $ 2,000 / year. So today, the total property tax is around 1.5% for a $ 800,000 home.

B.- How does one estimate the Mello-Roos when buying a Ladera Ranch home?

During the escrow period, the Seller is required to acquire a report which will state in writing the exact amount of the Mello-Roos tax. Before you make an offer you can also estimate the Mello-Roos for it does vary somewhat from community to community and even much to lot .. You take the quoted Tax Assessor annual Tax amount, and subtract the 1.1% of the Prop 13 portion of the tax from this amount. The reminder is a reasonable estimate of your yearly Mello-Roos payment for that home.

C.- Can I deduct my Ladera Ranch Mello-Roos taxes from my Income Tax?

It is the opinion of some tax accountants that the Mello-Roos tax is not tax deductible. On the other hand, I know of home owners in Ladera Ranch who have deducted their Mello-Roos tax from their income taxes. It is best advised that you consult with your tax advisor and make your own decision on this topic.

D.- How and when do I pay the Ladera Ranch Mello-Roos Tax?

The Mello-Roos tax is included in your normal Prop 13 tax bill and this is billed to you twice per year on February 1st and November 1st.

E.- How long do the Ladera Ranch Mello-Roos tax last?

The Mello-Roos assessment is written for about 15 to 25 years dependent on the community facilities district. Many of the districts have the right to renew the Mello-Roos tax if needed, so it is prudent not to assume that this tax will disappear during your ownership

F.- How do I compare the value of a Home with Mello-Roos against a Home without?

As an example, let's say you are thinking about buying either a home in Ladera Ranch with yearly Mello-Roos payment of about $ 1,800, or possibly buying a home in Laguna Niguel with no Mello-Roos. To compare the values ​​of these two homes, take the $ 1,800 yearly Mello-Roos payment, dividend by 12 for the monthly payment of $ 150. A $ 150 per month payment is approximately equal to a $ 25,000 mortgage in today's interest rates. Therefore the home in Ladera Ranch is actually costing you about $ 25,000 more as compared to the home you're considering in Laguna Niguel. If the Ladera Ranch home is still more desirable to you at a comparative price $ 25,000 higher than the home in Laguna Niguel, then buy it, if not, buy the home in Laguna Niguel.

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Source by Vincent Bindi

NMLS CE Review of Kaplan and Proschools

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In previous years the states regulated the mortgage industry. In 2011 the Nationwide Mortgage Licensing System & Registry (NMLS) is in place under the federal government. A requirement to maintain a NMLS license is 8 hours per year of continuing education (CE).

Options for CE are classroom or an online course. I got an offer for a discount price of $ 99.95 from "Kaplan Real Estate Education" and determined to do that. Having done CE courses for insurance and mortgage licensing for the last five years with no problems, it seemed like a good option. The Kaplan NMLS CE course is divided into multiple sections. You view the material for a section and then take a take a 10 question quiz. You must get 100% on the quiz to move to the next section. If you get 90% or less you do it over until you get 100%. This is very irritating. Then when you finally get to the end of the eight hour course (more if you spend a lot of time on the quizzes) there is a 25 question final exam. Kaplan gives you two chances to get 75% or better on the exam. Some of the questions are worded in a different way from the material presented. Other questions ask for statistical historical information that has no educational value. OK, I am making excuses for flunking the exam twice! The first time in five years I have had any problem with a CE exam. When I called to complain the Kaplan supervisor said I should pay again, do another 8 hours of CE class, and then they would let me try their stupid test two more times …. with no certainty of getting a CE certificate. When I asked about a refund I was told that they do not give refunds.

A couple days later a representative called from Proschools to see if I wanted to do their CE course. The rep said they had a satisfaction guarantee. She also said that students rarely had a problem with the exam, and that they allowed allowed attempts if needed. Preschools offered a discount that made the cost around $ 100 and I decided to give it a try. The material seemed to be geared a little more towards useful information rather than arcane historical data. Proschools has a quiz after each section but there was usually only two to four questions. This made it much easier to get 100% on the quiz. The quiz offered a choice of a practice or "final" mode. You have to do the "final" quiz, even if you get 100% on the practice mode that has the same questions. It is best to skip the practice and go straight to the "final" quiz. You get multiple opportunities for the final quiz if needed. Then came the dreaded final exam. The government requires the course provider to require 70% or better to pass. (Why does Kaplan require 75%? So more people will flunk and have to repeat their course?) I was short on time and rushed through the exam in about five minutes. I got 24 of 25 correct for 96%. See, IR smart !!

From my experience this year I would suggest Proschools if you want an online course. Ask if they are offering any discounts and they will give you the code to use for that, if it is available. Of course the quality of the course is far more important than a small difference in the cost.

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Source by Glenn Lamb

The History of UK Equity Release Schemes

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Equity release is an increasingly attractive option for those seeking financial relief. However, this was not always the case, and it's interesting to note that these plans first became available in the UK in 1965. When first introduced, the main goal of these plans was to create an option for those who had invested in property but needed cash funds to cover certain expenses.

In the 1970s, the prices of houses in the UK soared, and this made it possible for financial institutions to offer clients and even wider range of options in terms of equity release plans. At first, the equity release market took off, and a large number of property owners signed these agreements. However, for those who opted for the "home income" plan, things did not pan out quite as they were hoped. This plan meant that the property owner would need to agree to buy an annuity as well as an interest only mortgage loan. It was marked in a way that it appeared to those who were seeking an additional monthly income to subsidize their pensions. They only needed to make monthly payments to cover the interest.

In the 1990s, however, interest rates spiked, and house prices dropped. This was disastrous for many, and this claimed in a ban on this particular plan. Not to mention the bad reputation equity release received as a result of numerous unhappy clients. This was, however, during the earlier stages of these plans and, since then, several factors have changed.

By the end of the 90s, the prices of houses were on the rise again, and interest rates were improving too. Financial experts came up with improved equity release plans with added protection policies in place to protect everyone concerned. Despite its earlier slump, equity release made a remarkable comeback and, today, previous records are being smashed with more and more pensioners choosing these options to solve their financial problems. As added reassurance, homeowners also have the help and protection of rules set out by the Equity Release Council (ERC) and all plans need to conform to specific criteria. One of the most important protective measures in effect is the "No Negative Equity Guarantee". This means that, no matter what, the amount payable upon the conclusion of the transaction will never be greater than the value of the home. In other words, your equity release plan will never result in debt since selling your property will cover the full amount at least.

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Source by Andrew Larkin

A Secret Credit Score Your Car Dealer Will not Tell You About

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You're ready to buy a new car.

You've done all your homework.

You know your three FICO credit scores.

You determine that your highest FICO credit score is from Equifax (also known as your BEACON score).

So, you find a car dealer who uses your highest score (which increases your opportunity to get approved at a good rate).

You get to the dealership and ignore all the salespeople by going directly to the finance director's office.

But as the finance director reviews your credit file in front of you … you can not help but think something is wrong.

Sure enough … the dealer says your Equifax / BEACON score is not high enough for their lowest interest rate.

How can this be? You just checked your FICO credit scores through http://www.myfico.com/12 a few hours ago. It's possible – although illegally – the information on your credit report has changed and that your scores have decreased since you last checked them. Remember, your credit scores are dynamic and will change whenever information on your credit reports changes.

Your credit reports can change several times each month as new information is added or updated by your lenders. But more than likely, your scores would not change in this situation (especially if there were only a few hours between when you checked your scores and when the dealership reviewed your credit reports).

So, if your credit reports did not change, why is the finance director staring at your scores with such a discouraging face?

Car Dealers Can Use "Different" FICO Scores Than The Ones You See

The car dealer is probably using what is known as the FICO Auto Industry Option score instead of a traditional FICO credit score. You see, car dealers not only get to select the credit reporting agency they receive FICO credit scores from … they also get to decide if they will use a traditional FICO credit score or a variation of a FICO score called an Auto Industry Option score .

What's the difference between these two types of scores?

Not a whole lot to most people … but there's enough variation to make the major of auto lenders use the Auto Industry Option score. The real difference between the two scores is that the Auto Industry Option score pays a lot more attention to how you handled previous auto credit.

– Have you made late payments on a current or previous auto loan or lease?
– Have you ever settled an auto loan or lease for less than you owed?
– Have you had a car repossessed?
– Have you had an auto account sent to collections?
– Did you include your car loan or lease in your bankruptcy?

Those actions will affect your Auto Industry Option score more than they'll affect your traditional FICO score. Bottom line, if you handled your previous auto credit perfectly, you should have a high FICO Auto Industry Option score – that's a good thing.

But what if you've had a few bumps in the auto credit road in the past? You guessed it … your Auto Industry Option score will be lower. You'll be perceived as a greater credit risk and the auto lender may either deny you or use your lower score to justify charging you a higher interest rate.

You see, auto lenders are different than other types of lenders. And I'm not talking about their slimy ways, leisure suits, short ties, manly hairy chests, or gold bling.

A lot of other lenders look at your whole credit picture to determine whether or not to give you a loan. But many auto lenders care about only one thing … how you handled your past AUTO credit. That's what a FICO Auto Industry Option Score gives car dealers – a way to pinpoint how you've handled what matters to them the most.

So, even if everything else on your credit reports went down the toilet after your bankruptcy, if you did not include your auto loan in your bankruptcy and never defaulted or missed a car payment, your Auto Industry scores will probably be better than your traditional FICO scores!

What a Former Auto Finance Director Revealed to Me

I recently spoke with a former finance director, and this is what she told me …

"So many people I had helped could not believe their scores were so high with the FICO Auto Industry Option score. auto score is that it really helps the auto lender concentrate on what is important – how the customer handles his / her auto loans.

By our dealership having the auto enhanced FICO, it helped 30% or more of our customers get better rates. "

I do not believe I'm going to say this, but I think I may actually have something good to say about car dealers! Well, some of them, anyway …

As you can see, the FICO auto scores can work in your favor, if they are used correctly.

OK, I just would not be able to live with myself if I only said good things about car dealers.

So, in the interest of fair and balanced reporting, here's how to protect yourself against slimy car dealers that can use your FICO Auto Industry Option
scores against you …

A Dirty Trick Car Dealers Can Play with Your FICO Scores

Let's imagine your Equifax / Beacon FICO score is 585. Not too good. With a score that low, if you do get approved for a car loan, you'll probably wind up with a high interest rate and high monthly payment.

So you go to a dealership and talk with the finance director and tell him your Equifax FICO score is 585. The finance director then reviews your FICO Auto Industry Option score. And, unknown to you, this score is actually higher than the Equifax / Beacon FICO score you dropped.

With this higher score, you'll get approved at a better rate … right?

Not necessarily!

Here's what unscrupulous car dealers can do. They will not tell you that your auto score is higher than your traditional score!

They figure they have a sucker sitting in front of them. So they'll try to get you funded at a higher rate based on the lower FICO score (thus making more profit for themselves).

How Some Car Dealers "Play the Spread" to Get You to Pay More

Now check this out …

It's possible that a car dealer has the ability to pull your traditional FICO scores AND your FICO auto scores. That means they'll have six scores on you. It's a guarantee that some of those scores are going to be higher than the others. So which ones will they use when trying to get you funded?

It depends.

Are you familiar with the term "spread"? It's how car dealers make money when they finance you. If they can quote you a higher interest rate than you deserve – then they stand to make a nice chunk of change from the bank that finances you.

The only way to make a killer "spread" is to make you think that you have lower scores.

So, what can you do?

Do not despair … I can help you.

How to Use Your FICO Scores to Your Advantage when Buying a Car

Fortunately, you do not have to fall for their dirty tricks. Now that you know all about FICO Auto Industry Option scores, you can protect yourself. Here's what I suggest …

1. When you first walk into the finance director's office, do not tell him what your FICO scores are. Wait until he reviews the scores himself. Then ask him what your scores are.

2. If the scores he reviewed are higher than the ones you have, do not say anything and just go by his scores.

3. However, if your scores are higher, then pull them out and show him. If he has a choice in the type of scores he can use, there's a possibility that he'll be able to use your highest score. And, it will let him know that he does not have a fool sitting in front of him. He can not take advantage of you!

How do you find out what your FICO Auto Industry Option scores are before you walk into a car dealership?

You can not.

Sorry. They're not for sale – at any price. Only lenders have access to them.

FICO would like to sell them … but there just is not enough demand. I mean seriously, up until you read this article, had you ever heard of the FICO Auto Industry Option score?

Exactly.

Remember, we were just given access to purchase all three of our traditional FICO credit scores on June 11, 2003 at 8:00 am (I actually got misty that day … what a geek I am.)

Only a very small percentage of the population even knows they have three FICO credit scores … let alone three Auto Industry Option scores.

So How Can You Use This Information to Help You Get Your Next New Car Financed at the Best Interest Rate

1. First, get your three credit reports. If you handled your previous auto credit well – your FICO Auto Industry Option scores will be higher than your traditional FICO scores. So expect more from the lender.

2. You can also ask the lender to show you their tier levels. Tiers are basically charts lenders use that have different interest rates based on your scores. You want to see which tier your fall in. To see an example of an auto lender's tier schedule, click here.

3. If they will not show you … at least have them break it down verbally for you. (Personally, I like to see it with my own eyes, as I never believe a word that comes out of most car dealers' mouths.)

4. If you've handled your auto credit poorly … then you should simply try to find an auto lender that uses just the traditional FICO credit scores. When you find a lender that uses a traditional FICO credit score, you'll have your best chance to get the lowest interest rate.

5. Start by calling dealerships and asking the finance director if they use a traditional FICO credit score to make their lending decision or if they use the FICO Auto Industry Option score.

These steps will get you headed in the right direction. This will not be easy, as a lot of car dealers use the FICO Auto Industry Option score.

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Source by Stephen Snyder