SELL ANNUITY PAYMENT - Want settlement cash now?

Want settlement cash now? Not so fast!

During the recession, many people were searching for cash and liquidity to stay afloat. Even as the economy improves, there are those who have a need for money and will turn to some unusual places to get it.
Selling annuities, structured settlements, scheduled lottery payoffs or other ongoing payments for cash became more popular during the recession. But for those still feeling a cash crunch, this tactic is seen as a potential option.

Unless the financial predicaments are dire, most financial advisers recommend against cashing in annuities or structured settlements. Selling off an annuity can trigger surrender charges as high as 10 percent, and those who sell before age 59 1/2 can also face federal taxes and penalties. Structured settlements are attractive because they generally provide tax-free income for life.
Yet, sometimes cashing in is the only option. That $500 monthly payment from an old accident may have helped with medical bills early on, but if the beneficiary lost his job and fell behind on some bills or had to make significant costly repairs to his home, a lump-sum payout of $50,000 may seem quite enticing.

Downsides of cashing in your settlement

• Selling off an annuity can cost surrender charges of up to 10 percent.
• Selling before age 59 1/2 can trigger federal taxes and penalties.

Americans have a great deal of money tied up in structured settlements and annuities, with a little less than $6 billion worth of new structured settlements written each year, according to the National Structured Settlements Trade Association. At the end of 2013, there were also 34.8 million individual deferred annuity contracts in place exceeding $2.58 trillion, according to LIMRA Secure Retirement Institute, a nonprofit research trade association for the financial services industry.

It's my money, and I want it now!

J.G. Wentworth is one of the world's largest buyers of structured-settlement payments and annuities. It handled more than $2 billion in payment transfers between 1994 and 2009.
In 2009, then-chief marketing officer Ken Murray said that the company had seen a steady increase in customer inquiries following the economic downturn. Despite what was happening in the economy, there were always people looking to sell annuities, structured settlements and lottery winnings, Murray said. Due to the nature of the business, buyers of payments usually see customers when they are in some sort of financial predicament.
"Historically, the common denominator is people who need cash, but there are some new reasons we are hearing more frequently than others as a result of the recession. It might be the fact that they lost their job or their mortgage payments have increased," said Murray.

 

2

HOW TO DONATE A CAR IN CALIFORNIA

FAQ’s

We get lots of questions from people wanting to know how to donate a car, truck, van, RV or other vehicle to charity. And since the more you know, the easier it will be for you to make the right decisions. So here at Harold’s Car Donations for Charity, we try to answer every question about donating a car or other vehicle to charity.

If you don’t find the answer you’re looking for, the please call us at: 1-800-310-5274. Or simply fill out the contact form at the bottom of the page.

Q. Are there any costs for me to donate my car?
A. Never! We pay for towing.
Q. Can I donate my car even if it’s not running or has been crashed?
A. Absolutely! We get top dollar for non-runners and wrecks.
Q. How is your company better than your competition?
A. Based on over 25 years of car repair experience, each car is evaluated to determine where it will be sent in order to produce the maximum amount of profit. Some cars get fully detailed to maximize visual appeal at auction. This always generates more interest and interested bidders, which drives the price higher. As long as it is determined that it is cost-effective, some cars are repaired in order to increase the selling price. Both detailing and repairing raise the buying price, which brings more money to the charity, and gives you a higher tax write off! This is in 100% accordance with IRS laws.
Q. I lost my title, do I need to get a new one?
A. No. We can usually accept your car by having you sign some DMV application forms. Occasionally we need to take an additional step, but this is a simple process.
Q. My car will not pass a smog check, can I donate it?
A. Never a problem! You can donate a car that will not pass a smog check.
Q. I still owe money on my vehicle, can I donate it?
A. Unfortunately, no. The lender keeps the title until the vehicle has been paid off.
Q. I have heard of people donating a car and having trouble later, how is this avoided?
A. A “Notice of Transfer and Release of Liability“ form gets filed with the DMV as soon as the car, truck, van, etc. is picked up. The best way to file this on through the DMV website. This gives you a legal document which releases you from any further liability for the car.
Q. How do I get a tax deduction for a car donation?
A. On cars that sell for more than $500.00, an IRS form called a “Form 1098-C” gets mailed to you within 30 days of the sale. You include the 1098-C with your federal tax return to get your tax deduction. On cars that sold for less than $500.00, a thank you letter is provided.
Q. How long does it take to pick up my car?
A. Usually we pick up the next day, however we are often able to pick up that same day.
Q. How do we know you are a legitimate company?
A. We are bonded and registered with the California Attorney General’s Office as a Commercial Fundraiser (click to view registration). You can also check us out at the Better Business Bureau
You can also visit the State of California Department of Justice Office of the Attorney General to search the “Registry of Charitable Trusts” and search for Harold’s Car Donation Service…You’ll find us there.
Q. How long has your company been doing this?
A. We have been helping charities with car donations since 1997.
Q. Is there any paperwork I have to do?
A. No, with the exception of the Transfer and Release of Liability form which a donor is required by law to file. But we will also help you with this to ensure it gets done. It’s really quite easy.
Q. Where are you licensed to operate?
A. We can handle charities throughout the entire state of California. However if a California charity has a car donated that is located in another state we can still handle it from end to end. We are signed up with hundreds of auctions coast to coast, including Hawaii.
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1

DONATE CARS IN MA - Donate a Car For Charity in Massachusetts

Donate a Car For Charity in Massachusetts

 

We help over 30 MA charities by managing their car donation programs for residents of Massachusetts in around Boston, and statewide. Before you select the charity for your Massachusetts car donation please read through our car donation FAQ to learn how our program works and why we are the best choice for car donations in Massachusetts.
The MA State government notes: “Donating a car is a way to support a charitable organization while still reaping an economic benefit through a tax deduction.”
Below we have listed the charities that you can support through car donations in Massachusetts. These are eligible §501(c)(3) organizations, public charities which the Internal Revenue Service has determined to be tax-exempt.
Once you are ready (or if you’re ready now!), simply note a charity from the list below (or click to find out more information on donation recipients) and then donate your car using our convenient online car donation form or call us toll-free at (866) 392-4483 to donate over the phone.

 

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DONATE CAR FOR TAX CREDIT

Tax benefits of donating a vehicle

But some people who give away an old auto might find their tax break smaller than they expected. And a few donors, thanks to the intricacies of vehicle gift guidelines, might be able to boost their deduction amounts.
Giving away a clunker to a charity was once straightforward. You could claim the old car's fair market value, that is, the amount a willing buyer would pay a willing seller for the product. Typically, you'd refer to auto valuation services, such as the Kelley Blue Book, to get an idea of the donated car's value, give it to your favorite nonprofit and then drive off with a tax break equal to that valuation amount. No more.
Because some taxpayers got greedy, claiming much more than their old autos were worth, lawmakers tightened the rules on how much you can write off for a vehicle donation. Now the precise tax break depends on the donor's claimed value of the gift and how the charity uses the vehicle.
"This puts taxpayers in the unusual situation of not knowing the size of their deduction when they make the donation," says Bob D. Scharin, senior tax analyst from the Tax & Accounting business of Thomson Reuters.

$500 limit

In most instances, a taxpayer must take into account a $500 threshold on vehicular gifts. This value amount applies to autos, boats and even airplanes. When the donated vehicle's value (based on credible fair market value analyses) exceeds that amount, claiming the deduction gets more complicated.
This valuation ceiling comes into play when a charity sells a donated vehicle. In this case, just how much a taxpayer can deduct depends on the amount the sale nets.
For example, you donate your old station wagon that's worth $1,000. Under the old rules, that would be the amount you could deduct. But now, if the charity turns around and sells your donation for $800, your deduction is limited to the lower sales price.

The charity must give you substantiation of the Internal Revenue Service-allowed donation amount within 30 days of when you turn your car over to the charity or, if the group sells the auto, within 30 days of the vehicle's sale.
If you haven't heard from the charity, give it a call and ask that it send, or resend, you the donation specifics. Plus, you now must include a copy of the acknowledgment, IRS Form 1098-C or an IRS acceptable substitute form that is sent to you and copied to the agency, with your tax return. Previously, such documentation was generally only kept by the taxpayer in case the IRS questioned a claimed deduction.

 

1

DONATE CAR TO CHARITY CALIFORNIA

Car Donation

The car donation process is simple. All you need to do is call the charity and someone will come and pick up your vehicle, or tell you where to bring it. However, with so many charities to choose from and so many people trying to scam the innocent, picking the right organization is not always easy.
On this page you'll find some general tips you can use when you are trying to decide where and how to donate your vehicle.

First Steps to Take When Donating a Car

Before you donate your car to charity, the IRS advises that you:

• Research the charity or organization you plan to donate to.
• See if you will receive a tax benefit for your donation. (The charity/organization you donate to must be qualified. 501(c)(3) organizations are common types that make you eligible for a tax deduction.)
• Look up the value of your car (however, you can only deduct the actual amount the charity sells your car for).
• Ask if you, as a donor, have any other responsibilities in the process.

In addition, you may want to consider:

• How your car will be used and where it will go.
• If the money from the sale of your car will be used locally or outside of your community.
• Which programs or services within the charity will receive funding from the sale.
• What the efficiency rating of the charity is. (A lower rating means more of your donation goes toward administrative costs, not to the programs and services you want to support.)

For more information on this and tax-related matters, read the IRS's A Donor's Guide to Vehicle Donations.

Finding a Charity

The choice is yours, but before donating your car, confirm that your charity of choice is recognized by the IRS. Otherwise, your deduction will be rejected. If in doubt, check the IRS's Cumulative List of Organizations which lists qualified charities. Religious organizations aren't listed, though they do qualify. You can also contact the Better Business Bureau (BBB) in your area or the BBB Wise Giving Alliance.
If you're still undecided, Forbes ranks America's 200 largest charities and, in some cases, discloses their financial details. Keep in mind, however, that not every charity listed here accepts car donations.
Additionally, you can search for charities and tax-exempt organizations on the IRS website.

Tax Write-Offs

The IRS has clamped down on how much you can write off on donated cars. No longer can you submit a vehicle's full value or "blue book" value for your tax deduction. Now, instead, you can only claim the amount for which it is sold or the fair market value.

Motor Vehicle Department Donation Procedures

Just as if you were selling your car as a private party, when you donate your car to charity, you'll need to satisfy some requirements with your state's motor vehicle division. Some common processes you'll likely need to complete include:

• Completing a title transfer.
• Canceling your registration.
• Completing a notice of transfer/release of liability form.

The exact steps you'll need to take will vary from state to state. Check with your state's DMV office for specific requirements and details.
NOTE: In addition to DMV requirements, you'll also need to cancel your car insurance policy.
Notice of Transfer/Release of Liability
Be sure to visit our guide about Title Transfers to learn how to transfer the title over. You may also need to complete a notice of transfer or release of liability form.

Canceling Your License Plates and Registration

The laws for this vary by state. Some states require surrendering the vehicle's license plates to the DMV. Others require submitting a sold notice, and there are a few states that require no formal notification at all.

1

Buying a car in the UAE? Where to start

Go back to the basics

Buying a car isn’t as complicated as it may seem, especially if you have an idea of what you want and what to look for in a car while making a choice. Let’s start with the basics. First, you will need to answer these questions:

1. Why do you need a car? Determine what the most important aspects of a car are to you. Are you interested in practicality and comfort? Are you more interested in handling and performance? Does car design appeal to you more? What about car brand?
2. What details should you pay attention to in a car? Once you have decided what you want to get out of a car, it’s time to start looking at the relevant details.
3. What’s your budget? You have to be realistic with your financial capabilities as this should give you a hint about the car make and model that you will go after
4. Do you prefer new cars or would you consider buying a used car? Each has its pros and cos and your decision could affect your budget so think about it carefully.

[Compare car deals in the UAE and book a test drive]

Consider car features

Once you’ve addressed these key points, the experience of buying a car can get a whole lot simpler.  The next step is to look at car features based on your needs:

• Car type: When choosing a car many people tend to define its size and match that to how it can address their daily needs. For example, if you have a large family, you may consider a bigger car whereas if you plan to be the sole user of the vehicle, a smaller car may be a more appropriate choice and so on. Some of the different car types you can consider based on your needs include sedans, coupes, convertibles, wagons, Special Utility Vehicles (SUVs) or 4 X 4s, pickups and hatchbacks.
• Safety
• Performance
• Handling
• Options and special features such as comfort and space
• Car design
• Brand or car make

You may want the car that you choose to satisfy a number of the functions above. For example, you might decide that performance of a car and its design are equally important to you. Just remember to think about all of the features related to the aspects of the car you want when making your selection.

Where to buy your car

Having gone through the thought process of choosing a car, you now need to look for it in the market. And to do so here are the factors to bear in mind:

1. If it’s a new car head to the nearest dealership of the car brand you are interested in to book a test drive.
2. If it’s a used car you’re after, there are several resources available in the UAE including:
   1. Second hand approved dealership departments: This can be a safer option as you will be buying from a company rather than from an individual and the process can involve less hassle to you. But be aware that car prices at second hand dealerships could be considerably higher compared to other used car outlets.
   2. Online classifieds and local forums: You can find several options for the same car type and brand here
   3. Classified magazines and newspaper listing
   4. Your local car market: this includes Al Aweer Market in Dubai and Abu Shaghara Market in Sharjah)

Remember: If you are buying a used car, make sure that you inspect it thoroughly at independent service centers or car dealerships before making your purchase.
[Related: How to get the best deal on a secondhand car]

Financing and insuring your car

Next, you’ll need to decide how to finance the car. You could purchase it entirely in cash or you may choose to obtain a car loan or personal finance. If you decide to take out a car loan, make sure that you have a down payment prepared as you will be required to pay up a minimum of 20% of the car’s value with the bank financing the rest. Just bear in mind that if you decide to resell your car before the end of your car loan tenor, you will be required to pay off the loan in full. This is because your car will be mortgaged to the bank and you will only be able to transfer the ownership of the vehicle to the buyer once the car has been released from the bank.
[Compare car loans in the UAE]
[Related: Got a loan on you car? How to sell it | Buying a car: Cash or loan?]
Personal loans are another option to finance your car. But something to bear in mind is that interest rates on personal loans can be considerably higher than those on car loans. Compare the various finance options and decide which one is best for you based on your financial situation.
[Compare personal loans in the UAE]
Once you have obtained the necessary funding, you’ll need to insure your car. Some of the factors that could impact the price of your insurance quote are your age and how long you have been driving as well as the value and year of your car’s manufacture. For a full list of the car insurance policy covers you can get in the UAE, read our guide to car insurance.

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Personal loans vs Loan on Credit Card

Have you ever thought about taking out a loan on your credit card but were unsure how this differs to a personal loan? We take a look at situations in which a loan on a card could be the appropriate option for you and delve into the details of this product to help simplify your decision.

Applying for a personal loan can require more time and paperwork

The process of applying for a personal loan in the UAE can sometimes be daunting. When all of the paperwork is done and dusted, you then find yourself pretty much committed for the long haul and bound to make monthly payments of a fixed amount. The terms and rules can often be inflexible and overpaying could result in penalty charges.
[Related: Need an extension on your loan? Here’s how | Remember the full cost of a personal loan – not just the rate]

Loan-on-card can be a good option for quicker financing

The lengthy process involved in obtaining a personal loan is one of main reasons why some bank customers opt to take a loan on card (LOC). It’s a lot less paperwork as the customer is generally preapproved by the bank in the first place. Also, it’s an ideal option if you are looking for immediate funds that you would be able to pay back in the short term (at a lower interest rate than a typical credit card). Additionally, depending on your issuing bank, you may be able to get a lower arrangement fee on a LOC as compared to that typically charged on a personal loan.
Be ware though, that interest rates on LOC are typically far higher than those on personal loans. So although LOC can be easier and quicker to obtain, it does come at a much higher cost to the customer.
[Compare personal loans in the UAE]

How do I qualify for a loan-on-card?

To be eligible for a LOC, the customer must demonstrate a good credit history with the bank. As with any loan, the requirements can vary according to the loan amount and interest rate on offer. This bank may typically require that you do not already have outstanding debts or loans that need to be paid off.
It’s important to note that the above mentioned details are only general guidelines. Each bank will have their own underwriting criteria, terms, conditions and varying interest rates, so it would be wise to shop around before deciding on a line of credit.
[Related: How can you save on comparing credit cards? #CompareToSave]

Should I apply for a LOC?

For those who are unable to qualify for a personal loan, the LOC could be the next best option, provided that they are able to re-pay the amount within a shorter time frame. Just make sure you don’t bite off more that you can chew “If a bank is declining to lend, I would have to question whether the (customer) would be wise to borrow at all,” says Keren Bobker, Senior Associate at Holborne Assets – a company that provides financial advice to individuals. “I have seen adverts for non-bank loans but people should be wary of less regulated borrowing that will usually be at very high interest rates.”

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Why shopping around for a car loan pays off

Fancy a new or secondhand motor? Then be savvy about how you finance it, because this is a big purchase and the car loan you decide on now will determine how much you pay for months or years to come.
To put it simply, if you want a AED 100,000 car and you take out a three-year car loan of AED 80,000 at a flat rate of 2.99 percent, you will pay AED 2,422 a month, with total interest of AED 7,176.
Take the same car loan at a rate of 4.5 percent and it will set you back AED 2,522. That may only be AED 100 or so more a month, but over three years it’s an extra AED 3,624! Now that’s something to think about.

Loans and downpayments

But it’s not as simple as going for the cheapest rate. The cheapest rate may require a minimum salary that you can’t meet, or demand you transfer your salary to the bank offering the car loan. For example HSBC currently has an offer of a flat rate 2.49 percent for a new car loan; however you must transfer your salary to them and have a minimum salary of AED 7,500 a month.
The other thing to consider is whether or not you have the funds to pay for the deposit. Under UAE Central Bank rules, anyone buying a car must put down 20 percent of the value of the car. This means that, if you’re buying a car for AED 100,000, you need a deposit of AED 20,000 – another reason to get the best car loan deal in place.
However, there is the option of a lease agreement which requires zero percent downpayment; for example, ADIB currently has a Car Ijarah product needing zero percent downpayment – which can be a plus if you don’t have the immediate funds for downpayment.

Fees, rates and homework

Some loans may also charge an arrangement fee – typically one percent – while others do not, or have a fixed fee of AED 500. Car loans with lower rates may also come with fixed repayment periods, which may cost you more than a loan with a higher rate that you can pay back over a shorter period.
And make sure that, when you compare car loans in the UAE, you consider whether they are at a flat or reducing rate, as comparing reducing rates with flat rates can be extremely misleading. We always list both rates, one being an estimate and one the actual quoted rate by the bank.  [Read more: The difference between reducing and flat rates]
Put simply, you must do your homework and compare different car loans in the UAE before you make your choice. Add up all the costs incurred by taking the loan – not only the rate but the arrangement fee, minimum salary, early settlement fee etc.

Steps to buying

But let’s backtrack a little here…

1. The first thing you should do is decide what your budget is –  that means how much you can realistically afford from your monthly budget.
2. Step two is picking a car to fit that budget
3. Step three is finding the finance deal.

Don’t forget, some banks only lend to reputable companies, so you may be asked to stump up a higher deposit – as much as a third of the value of the car – if they are unfamiliar with your employer.
And remember, when you walk into your nearest dealership to choose a car, you will be directed to a row of desks where busy salesman are waiting to market their finance deal. Don’t be distracted by the shiny new motor in front of you and then agree to sign on the dotted line with the first dealer in the line.
Make sure you do your homework to ensure you have indeed secured the best car loan and that it fits within your budget. It may delay you getting your hands on your dream car, but you will be grateful in the long run.

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Guide to car loans

Take your time choosing a car loan and do your research – it’s a big purchase and the car loan you decide on will determine how much you pay for months or years to come. And it’s not as simple as just picking the cheapest rate – which may mean transferring your salary to that bank or earning a certain minimum salary. [Related: Why shopping around for a car loan pays off]
Firstly, decide how much you want to borrow for your car and the length of the loan period before you begin your search. Then remember to watch out fees, such as early settlement and upfront fees – both typically one percent – and note you will get a better profit rate and loan amount if your salary transfers into the bank.
[Compare Car Finance in the UAE | Compare Car Finance in Saudi Arabia]
Finally, look out for any added extras such as free car insurance with the loan, extended warranties or free traffic registration.

What should you know when comparing car loans?

1. New or used

Once you decide whether you are buying a brand-new car from the showroom or a secondhand car, you probably will need to finance the car. You can filter your search results on Souqalmal.com to only look for financing for new or secondhand vehicles.
[Related: Should I buy new or secondhand? | Buying a new car in Dubai]

2. Down payment

Make sure you can afford the down payment, it’s a requirement by law and varies based on these factors:

• Are you buying new or used?
• Are you going to transfer your salary to the bank that will be providing you the car loan? (i.e will your salary be deposited from your employer to the bank in question?)
• Is it an Islamic product? An Ijarah, which is an Islamic car finance product does not require any downpayment to be made as it is considered as a lease to you and transferred to your ownership at the end of the term.

3. Minimum salary requirement

There is always a minimum salary criteria set by banks on new or used car loans – make sure you meet the requirement for any loan you’re interested in.

4. Arrangement fee

Arrangement fees or upfront fees are what a bank would typically charge you at the beginning of the loan as a processing cost – that is, after you have accepted the car loan. You will have the option to roll the fee into your principal car loan amount or pay it upfront.

5. Early settlement fee

If you take a car loan for five years and then decide to pay if off earlier, most banks will charge a fee to settle the loan, typically around one percent or more. Sometimes, they have offers for no early settlement fees – but check carefully whether this is applicable for cases where you refinance with another bank as well as if you settle the loan fully in cash.

6. Flat vs reducing rates

There are two ways of calculation of the rate on the car loans that you see advertised by providers – as a reducing rate or as a flat rate – so make sure you ask the bank what type of rate is being quoted. A reducing rate means it is the percentage you pay on your outstanding balance of your car loan whereas a flat is the percentage of you pay on the principal amount of your car loan throughout the term. So a loan at a reducing rate of eight percent is exactly the same as a loan at a flat rate of 4.41 percent (the general rule is you divide reducing by 1.813 to get the equivalent flat rate). So be careful when you compare rates, as one bank may be advertising a reducing rate loan and the other a flat rate loan. If you want more details about how these are calculated, you can read our guide to reducing vs flat rate.

7. Salary transfer

While transferring your salary to a bank to get a car loan is not necessary for all loans,it might mean you get a better rate. The bank will consider a customer with a salary transfer less risky and therefore will generally offer them a lower rate.

8. Islamic or conventional?

If you are looking to finance your car with an Islamic product, you need to search for only products that are sharia-compliant. Make sure you ask your bank whether they offer Islamic financing.
You may not even be sure if you definitely want a car loan or car finance. If so it’s worth reading Buying a car: Cash or loan?
Many people have Islamic car finance without realizing it – but what is the difference between Islamic and conventional vehicle finance and how does that affect the consumer? Find out in our guide to Islamic car finance.
Like all loans, make sure you do your homework and compare all the Islamic car finance available.

9. Self-employed

In the UAE the self-employed – including professionals such as doctors – can find it harder to get a car loan as they do not have a fixed income per month. There are still car loans available for the self-employed but they may have higher rates or lower ceiling limits or tenures so do shop around.

2

Emirates Money Loan Against Car

Great For

• Repayment tenure of 48 months.
• High finance amount.

   

   

  

  The Basics

  AED 0

  Minimum Annual Revenue ?

  Reducing Reducing/Flat

  7.7%

  Flat Rate
  (est. equivalent) ?

  14%

  Reducing Rate
  (As Advertised) ?

  1% Arrangement Fee

  AED 250,000 Max Finance Amount

  5%

  Early Settlement Fee

  No Salary Transfer

  ---

  Main Benefits

  Repayment tenure of 48 months, high finance amount.

  Overview of features

  • There is no minimum annual sales turnover requirement for this finance. The finance amount will depend on the age and value of the car as decided by the bank.
  • The reducing rate of this finance is 14% and the equivalent flat rate is 7.7%. The calculation used is a division of the reducing rate by 1.814 and this is indicative only
  • The interest rate starts at 14% per annum based on a reducing balance. It will vary depending on customer profile.
  • The processing fee is 1% of the total finance amount.
  • The maximum amount of finance offered is AED 250,000.
  • The early settlement fee is 5% of outstanding principle.
  • It is not a requirement to transfer your income to the bank to be eligible for this finance.

   

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