Month: July 2017

Common Knowledge About Your Car

Automotive

Most people do not know much about their car. They do not want to trouble themselves with that,they think it is not important at all or simply think that pushing the pedals and turning the steering wheel is enough trouble already. But in situations (like an arm-chair conversation about cars) people find themselves sticking out like a sore thumb.

That is the more harmless part. The lack of car-knowledge could be potentially troublesome.What happens in case of a needed car repair and you do not know squat about your car or even what to repair?

What happens when you want to sell your car and do not know the basics? The chances of a proper sale is seriously reduced.

So for people who want to know more here is some useful things you should know about your car:

1. Car manufacturer

2. Model and type

3. Type of engine (petrol or diesel)

4. Engine configuration (“V” or in-line)

5. Type of transmission (manual or automatic and number of gears)

6. The correct type of engine fuel you use

7. The vintage of your car (the manufacturing year)

8. The correct mileage or kilometers on your car

9. Engine size (in cubic inches or centimeters)

10. Basic orientation under the hood (in case of repair)

Seems overwhelming? It is not at all. You can squeeze all of this into one sentence and it will take only a few minutes to learn this. Who knows, maybe it can get you more interested in cars and perhaps, one day, do some car repair yourself.

So, if your a car driver, this is some knowledge you have to have. Not having it is like sitting at the table not knowing the purpose of the fork and spoon.

Source by Sibin S. S.

Car Insurance – Keeping the Premium Low

Cars

Car insurance in the city is almost always a must, if you want to make sure you have protection against pricey repairs for damage caused by an auto collision. Areas of high traffic often produce many more car accidents then more remote locations. Shopping around for NJ car insurance that will not drain your bank account is easy to do. There are many ways to keep the monthly payments low as well. The following list describes various types of discounts available.

Multi Car Discount

If you have multiple cars on the same policy, the first one is full price and each car added on after this one gets a discounted rate. This is an excellent type of discount when there are many cars to be insured. Sometimes, this is the only way a large family is able to afford insurance for all cars within the household.

Driver Courses

New drivers that have taken Drivers Education will get a discount on car insurance. Another way to receive discounts is by taking a Driver Safety Course or a Defensive Drivers Course. Both of these need to be approved by the Department of Motor Vehicles in New Jersey for them to qualify for discounts on insurance in NJ. These courses can also help to repair bad driving records caused by various traffic violations.

Car Safety Features

Many new cars have excellent safety features such as air bags, automatic safety belts, anti-lock breaks, and anti-theft devices fitted to the car. Insurance companies view these features as being worthy of a discount, since they can easily prevent more damage from occurring. For instance, if there is a collision that was enough enough to set off the airbags, then it must have been a fairly serious accident. If the airbags had not been in place, the insurance company would probably have been shelling out a lot more money in medical payments to the driver of this vehicle. Therefore, these discounts are sort of like a 'thank you' from the insurance company for purchasing a car that can extremely efficiently save them money as well.

Finding NJ car insurance that does not cost an arm and a leg is possible. As you can see from the information above, most car insurance agencies try to provide at least some form of discount for their policy holders. With all the discounts available for the safety features found on newer cars, it's more beneficial to buy a new model and get rid of that old clunker you've been insuring.

Source by Ted Kripps

Which Tax Records Should I Keep?

Cars

Concerned as to the amount of time you should keep your personal income tax records? Sometimes, taxpayers need to present these documents when the government reviews or audits a filed return or is trying to levy or collect tax. Also, these documents are required by creditors, homeowners associations, other concerned parties that have requisites to determine before giving someone the right to use money or extending credit to obtain property and for any other transactions that these documents are deemed necessary.

Retain your income tax records indefinitely. The accompanying records, income documents and deduction source information that are supporting financial evidences, should be kept usually for six years. Generally, the time limit for the IRS to assess tax for a given tax year is three years after the tax return was due or filed whichever is later, except for cases of fraud or a substantial understatement of income.

The IRS goes back more than three years when they determine more than 25% of gross income is not declared on a return, they consider this a substantial understatement of income, and the period for collection can be extended to six years. Also, IRS has no time limits and they can collect tax at any time when no return has been filed for a tax year. That is why it is necessary to keep your records for circumstances like these.

Hanging on to tax returns forever and other important source documents for six years should be sufficient. No one really knows when the IRS will try to go back to previous years and try to collect tax. When tax returns are filed electronically, make sure to obtain a hard copy paper version of the return from the accountant who prepared/filed your return.

Property records need to be retained until the property is sold. The tax effects of the dealings that take place this year may be affected by the purchases in the past. These purchase documents should be held on to until the property is sold. The following are some common examples:

Home was purchased in 1976 for $50,000. Additional $15,000 was incurred for renovations in 1993 and the home is sold this year for $200,000. To calculate the gain on the transaction, the cost information needs to be available. (e.g. purchase price plus renovations). In the event the IRS questions the return, the purchase and cost documents would need to be presented to the IRS. In this example, retain the records for six years after the tax return was due or filed whichever is later.

Some taxpayers have gains that qualify for primary home sale exclusion, which allows certain homeowners to exclude up to $500,000 of gain from the sale of a home. Even if this benefit applies to you, records relating to the home purchase and improvements should still be retained. The benefit may not be available in the future and it is impossible to know how much the house will be worth in the future.

There could be cases where new property will take the cost of the old property. In this case, the old property records should be kept until six years after the new property is sold. Let’s say, a business car was purchased in 2010 and is now a trade in for a new business vehicle in 2015. When the new business vehicle is sold, any gain or loss is based in part, on the purchase records from the trade in vehicle. Thus, the records should be kept for six years after the tax return was due or filed whichever is later.

Longer record retention periods also apply to investments in shares of ownership in a small business, mutual funds, stocks, etc. In cases of these typical investments, when dividends are reinvested, every dividend reinvestment is a purchase. Thus from the year the investment is sold, the records should be kept for six years after the tax return was due or filed whichever is later.

In case of damaged and stolen properties, calculating the casualty and theft loss deduction is determined, in part, by the cost of the property that was damaged or stolen. Having the records that support the cost of these properties is important in order to support your basis. Thus, from the year of the loss, the records should be kept for six years after the tax return was due or filed whichever is later.

For married persons wherein separation or divorce becomes a potential, you should make sure that you have access to any tax documents relating to you that are being kept by your spouse. Better yet, make copies of these tax documents as access to these documents may become difficult later on. Both spouses are liable for joint returns.

Storing Record Electronically – This may also be practical and easier. The necessary period to keep electronic versions is the same for paper versions. Always back up your electronic tax records.

Damage or Loss of records – Consider keeping your most important documents in a safety deposit box. Also consider maintaining important records in a central convenient location.

Sometimes, records which are lost or damaged can be reconstructed. For example, the CPA Firm can provide copies of these damaged documents as they are required by law to keep copies of tax returns for a period of three years. We recommend maintaining copies of the returns and source documents electronically.

Furthermore, other people/businesses, who have helped you with purchase or sale of property, keep records. For example, you purchased mutual funds from a mutual fund company; the company can help reconstruct the costs of the mutual funds.

Anyhow, it is still the safest course of action to keep copies of the documents yourself in the safest place possible as you can never be sure whether third parties have actually kept records of the documents you need. This article is an example for purposes of illustration only and is intended as a general resource, not a recommendation. We hope this article was helpful.

Source by Peter D. Rudolph

The KWP2000 Protocol in Automotive Diagnostic Applications

Automotive

The KWP2000 protocol has become a de facto standard in automotive diagnostic applications. It is standardized as ISO 14230-3. KWP2000 describes the implementation of various diagnostic services you can accethrough the protocol. You can run KWP2000 on several transport layers such as K-line (serial) or CAN.

Transport Protocol

As KWP2000 uses messages of variable byte lengths, a transport protocol is necessary on layers with only a well defined (short) message length, such as CAN. The transport protocol splits a long KWP2000 message into pieces that can be transferred over the network and reassembles those pieces to recover the original message.

KWP2000 runs on CAN on various transport protocols such as ISO TP (ISO 15765-2), TP 1.6, TP 2. 0 (Volkswagen), and SAE J1939-21. For KWP2000, the Automotive Diagnostic Command Set supports only the ISO TP (standardized in ISO 15765-2) and manufacturer-specific VW TP 2.0 transport protocols.

Diagnostic Services

The diagnostic services available in KWP2000 are grouped in functional units and identified by a one-byte code (ServiceId). The standard does not define all codes; for some codes, the standard refers to other SAE or ISO standards, and some are reserved for manufacturer-specific extensions. The Automotive Diagnostic Command Set supports the following services:

• Diagnostic Management

• Data Transmission

• Stored Data Transmission (Diagnostic Trouble Codes)

• Input/Output Control

• Remote Activation of Routine

Upload/Download and Extended services are not part of the Automotive Diagnostic Command Set.

Diagnostic Service Format

Diagnostic services have a common message format. Each service defines a Request Message, Positive Response Message, and Negative Response Message. The Request Message has the ServiceId as first byte, plus additional service-defined parameters. The Positive Response Message has an echo of the ServiceId with bit 6 set as first byte, plus the service-defined response parameters.

The Negative Response Message is usually a three-byte message: it has the Negative Response ServiceId as first byte, an echo of the original ServiceId as second byte, and a ResponseCode as third byte. The only exception to this format is the negative response to an EscapeCode service; here, the third byte is an echo of the user-defined service code, and the fourth byte is the ResponseCode. The KWP2000 standard partly defines the ResponseCodes, but there is room left for manufacturer-specific extensions. For some of the ResponseCodes, KWP2000 defines an error handling procedure. Because both positive and negative responses have an echo of the requested service, you can always assign the responses to their corresponding request.

Connect/Disconnect

KWP2000 expects a diagnostic session to be started with StartDiagnosticSession and terminated with StopDiagnosticSession. However, StartDiagnosticSession has a DiagnosticMode parameter that determines the diagnostic session type. Depending on this type, the ECU may or may not support other diagnostic services, or operate in a restricted mode where not all ECU functions are available. The DiagnosticMode parameter values are manufacturer specific and not defined in the standard. For a diagnostic session to remain active, it must execute the TesterPresent service periodically if no other service is executed. If the TesterPresent service is missing for a certain period of time, the diagnostic session is terminated, and the ECU returns to normal operation mode.

GetSeed/Unlock

A GetSeed/Unlock mechanism may protect some diagnostic services. However, the applicable services are left to the manufacturer and not defined by the standard.You can execute the GetSeed/Unlock mechanism through the SecurityAccess service. This defines several levels of security, but the manufacturer assigns these levels to certain services.

Read/Write Memory

Use the Read/WriteMemoryByAddress services to upload/download data to certain memory addresses on an ECU. The address is a three-byte quantity in KWP2000 and a five-byte quantity (four-byte address and one-byte extension) in the calibration protocols. The Upload/Download functional unit services are highly manufacturer specific and not well defined in the standard, so they are not a good way to provide a general upload/download mechanism.

Measurements

Use the ReadDataByLocal/CommonIdentifier services to access ECU data in a way similar to a DAQ list. A Local/CommonIdentifier describes a list of ECU quantities that are then transferred from the ECU to the tester. The transfer can be either single value or periodic, with a slow, medium, or fast transfer rate. The transfer rates are manufacturer specific; you can use the SetDataRates service to set them, but this setting is manufacturer specific. The Automotive Diagnostic Command Set supports single-point measurements.

Diagnostic Trouble Codes

A major diagnostic feature is the readout of Diagnostic Trouble Codes (DTCs). KWP2000 defines several services that access DTCs based on their group or status.

Input/Output Control

KWP2000 defines services to modify internal or external ECU signals. One example is redirecting ECU sensor inputs to stimulated signals. The control parameters of these commands are manufacturer specific and not defined in the standard.

Remote Activation of a Routine

These services are similar to the ActionService and DiagService functions of CCP. You can invoke an ECU internal routine identified by a Local/CommonIdentifier or a memory address. Contrary to the CCP case, execution of this routine can be asynchronous; that is, there are separate Start, Stop, and RequestResult services. The control parameters of these commands are manufacturer specific and not defined in the standard.

External References

For more information about the KWP2000 Standard, refer to the ISO 14230-3 standard.

Source by Amos Huang

Mazda Revs Up A Groundbreaking Miata

Cars

A new dimension is explored by Mazda Motors Corporation by adding the Power Retractable Hard Top (PRHT) to its new Roadster lineup. This was done without pulling the driving comforts of the previous Roadster including its "Jinba Ittai" dynamic performance. The next level of refinement introduced by Mazda was launched to the automotive market this month.

It can be recalled that the Roadster has already won more than 30 globally-acclaimed awards. This has paved way for its international recognition. With this added spice called Power Retractable Hard Top, the lineup can now give higher comfort for both the conventional Roadster driving and the open-top sports car pleasure. Said new feature is made up of a light-weight material which has a one-touch electric control. The roof can also be folded away into the rear part of the seats and inside the wheelbase.

The root of Mazda MX-5 Miata was born to universal acclaim. It was recognized in the Guinness Book of World Records as the best-selling two-seat convertible sports car. The very first Miata featured an easy-to-operate folding top. It can be folded in seconds by simply unzipping the plastic rear window, releasing the 2 windshield header latches and pushing the top back. The next generation of Miata introduced a simpler process. In this lineup, no unzipping was required to fold its top.

In the freshest generation of Miata, new hard top is incorporated to enjoy the mighty rays of the sun on the cockpit area. PRHT functions like a magic trick, one push of the button and it will disappear from sight. The convertible design of PRHT consist of 3 major parts – the front section, middle section and the rear window. Said parts complete Miata to yield suave operation.

Mazda Miata parts are designed to achieve the sophistication that the customers are expecting. In addition, Miata's trunk provides a 5.3 cubic feet capacity, center locking handle and minor suspension adjustments to sustain the design of PRHT.

Miata MX-5 comes with 2 new exterior colors – the Stormy Blue Mica and Highland Green Mica. These colors have replaced Winning Blue Metallic and Nordic Green Mica.

Source by Margaret Adams

The Advantages of Smart Car Keys

Automotive

Pretty much all new cars nowadays are equipped with smart key technology, which has made putting a key into your car’s door to unlock it or into the ignition switch to start your car’s engine obsolete. Now you have a transmitter fob, which relies on radio frequencies to unlock a car’s doors and start its engine. At the beginning, when intelligent car keys were first introduced, they were mostly used in luxury cars, since it was an expensive technology, and it didn’t make sense to implement it in less expensive cars. Some of the most popular and advanced smart key systems include Mercedes-Benz’s Keyless Go integrated into SmartKeys, Toyota’s Smart Key System, Lincoln’s Intelligent Access System, and BMW’s Comfort Access.

Vehicles that come with such technology are equipped with computerized systems, and can identify the driver as they are approaching the car. The system uses several microchips and sensors that transmit information to the smart key, which opens the car’s doors thanks to a radio transponder chip that is installed in the key. This is a so called Passive Keyless Entry System, which doesn’t even require you to take your key out of your pocket or your bag and pushing a button to unlock the doors. Once you’ve entered your car, you can start the engine by pressing the engine start button.

These are perhaps the most significant advantages of intelligent over traditional car keys. In addition to being very convenient, they make your car difficult to steal. This is because thieves can’t unlock and start a car that has smart key features using the traditional method, that involves cutting some wires, then stripping and connecting them. The computer system in the car requires that the correct code from the smart key is transmitted, and if it doesn’t receive it, it won’t get the car going, no matter which and how many wires are cut and connected.

As far as the downsides are concerned, it’s worth noting that there are some added costs that come with owning a car with a smart key technology. If you happen to lose your smart key, it may cost you over $100 to replace it, whereas replacing a traditional key only costs $10 – $15. Plus, you can’t buy a new intelligent key wherever you want, since it’s a technology that is trademarked by your car’s manufacturer, and you can only get one at an authorized dealership, which means you’ll probably waste a lot of time and go through quite a hassle while trying to find a replacement key.

Furthermore, if you forget to turn off the engine before you leave the car, and leave the car in your garage, carbon monoxide will be released and it will get inside your house, which can result in fatal consequences.

To sum up, smart keys can definitely make your car rides more comfortable, but you have to keep an eye on them and try not to lose them, since you will have to pay a lot of money to replace them.

Source by Jordan Perch

What You Should Know About The Acura RSX

Automotive

What should you consider about the Acura RSX before you buy one? Any time I buy any new car I always make sure I have done my homework on it first. So if you think the Acura RSX may be the car for you, you should probably do what I do and make sure you know as much about the car as you can find out before you hit the lots. Here is a little bit about what I found regarding the Acura RSX, but do your own research as well so that you know everything about the car the it important to you before you go out and make that purchase. Your best bet, though, is to check out the S type of the Acura RSX.

The Acura RSX is a high performance coupe in the S type. It features a 210 hp 2-liter engine, 6-speed close-ratio manual transmission, modified suspension and brakes, quick-ratio variable rack & pinion steering, upgraded tires, leather interior. Air conditioning and 7-speaker Bose sound system come standard when you buy it new.

Visual inspection of the car reveals that it is best-suited to smaller people. Up front, however, is what counts and there you will probably find the most comfort. The seats of the Acura RSX S Type are fantastic, not racer-tight but with more than suitable grip. The steering wheel is well placed, small, and wrapped with leather. The gear lever falls right to hand and has obviously been placed with care. Also, everything looks great, with typical Acura ergonomics. One drawback would be that the numbers on many of the instruments in the Acura RSX are too small and the indicators on the air controls are not very easy to read. The round air and heat vents are controlled with little clamshell-shaped doors that allow them to almost vanish when closed. Seats and mirrors are heated, while the “set-and-forget” climate control maintains a very nice temperature.

The Acura RSX is casual elegant, but with just a little faux titanium and chrome to dress things up. The sunroof is standard and c

In addition, as you look over more information on the Acura RSX, you will find that there is even more to it. It is a safe car with many standard air bag and brake features that add to the practical appeal. As you look into cars, and if you believe that such a sedan at a these prices may be for you, then you owe it to yourself to give the Acura RSX a chance. Do your research and visit an Acura dealer to take a test drive and see that everything you have read about this sports sedan is true and may just be why the Acura RSX is the right car for you to consider for your next new car purchase.

Source by Christopher Luck

Cheap Auto Insurance Policy With the Good Ones

Cars

There are many things to think about when buying automobile insurance other than price alone. You need to carefully consider all the insurance coverage options, which will play a large role in the cost of your premiums.

It may sound a bit confusing, but getting the cheapest policy may, in reality, cost you serious money down the road. Why you might ask? Getting the state minimum coverage may leave you naked so to speak. In the event you get into an automobile collision, the amount of coverage you need to cover the accident might be considerably more than your policy limits.

Even worse, you could get sued and have your wages garnished. If you hurt another person in an accident you caused and could not pay for all their medical bills, you likely will.

Get the best Car Insurance for Your Needs

Let’s stick with the cheapest type of insurance plan, basic liability insurance. If you get the state minimums, you can get monthly rates as low as $30. The problem is, your car could be worth $15,000 or more. If you get into a collision, guess what, your plan would not pay for repairs to your vehicle. If it is completely totaled, that means you have just lost $15K, which is a lot of money.

Now that low-cost liability policy just cost you thousands. Simple public liability and property damage should only be used under certain circumstances. For example, if you have a vehicle that is worth less than $3,000 and you do not drive it much, maybe you can take this risk. Also, if you are a college student with an old ride not worth much, you can take the risk and stay within your budget. However, if you have an expensive car and assets to protect, you are going to need to buy added protection.

The other thing to consider with these cheaper policies is legal liability. The United States is a very litigious country. There are literally tens of thousands of injury attorneys looking for new cases. This means if you get into a vehicular incident that you were deemed to be responsible for, a limited policy can come back to bite you. Let’s say you only have protection of $50,000 in medical damages. You check your cell phone while driving, run a red light and T-bone a nice lady in a used Honda. She goes to the hospital for two weeks and racks up $250,000 in hospital expenses.

Her lawyer will immediately sue you for the balance of these costs, which in this example is $200,000. You can go to court and fight this, but it will cost you thousands to hire an attorney. The judge in this example might award the victim the $200,000 plus legal fees, which would more than likely devastate you. There might be a payment schedule of $2,000 a month taken out of your paycheck for ten years. So your money saving $39 a month policy in the long run just cost you a fortune.

The most important thing to think about when you buy auto ins is the protection of your assets. If you make more than $60,000 per year, get a policy that has up to $500,000 in accident coverage. In the event you do get into a serious collision, you will be properly covered and not get financially crushed. You might pay $130 per month and even more for a higher limit plan, but in the long run, it is the smart move to make.

You can take advantage of good driver or senior citizen discounts and save 5% or more. Another great tip is to raise your deductible up to $1,000 or higher. This way you can buy an enhanced ins plan at a lower rate. Just remember to set aside the $1k in the unfortunate event you get into a crash and need to file a quick claim.

Buy Auto Insurance Direct and Save Big

Now that you have selected the type of insurance you want, it is time to shop around for the best rates.

Source by Mike Heuer

Bull Market Flashback to 1982

Cars

On August 19, 1986, I landed at the JFK airport, and my dad's old college classmate, James, picked me up. After a few days of staying with him and his family, he dropped me off at college in Montclair, New Jersey.

Coming to the United States was a new beginning for me. Going to college was like diving into a whole new world, where I had to figure out something new each and every day. It forced me to work out how things worked bit by bit.

And so many things that are so obvious today … were so hard to figure out on my own back then. For example, I did not know how to dress for cold weather, and, as a result, I was cold almost all the time in the winter.

What's going on in the stock market reminds me of that time, because today most people are completely baffled. Without you have experience and knowledge of how markets work, you're going to make all the wrong decisions.

And you could end up missing out on something that could absolutely change your life in 2017 …

This critical thing is a bull market in stocks.

And I'm not just talking about a major new bull market in stocks that is going to propel the Dow Jones Industrial Average to 50,000 … and then beyond.

I believe that when this bull market ends, the Dow could easily be 100,000.

I know that many of you think that this looks crazy. However, think back to 1982, which was the beginning of the last major bull market in stocks. People were pessimistic about the future of our country.

One easy way to measure the negative mood of that time period is to look at one of the most popular magazines back then: Time .

The September 6, 1982 issue of Time featured the new bull market that was just beginning.

Inside the issue were doubts that are similar to the ones that people have today about the stock market:

No one predicted it. No one can explain it. No one dreamed that it could keep going day after day after day. But last week Wall Street continued on one of the most unbelievable stock-trading binges in financial history … The frenzy has broken records, and then broken them again … Is this a suckers' rally or the beginning of a sustained bull market ? Why has the momentum been so strong when the prospects for economic recovery are so uncertain?

Now, when you go back to 1982, you'll find two incredible similarities to 2017.

First, there was an incredible technology – the personal computer was just beginning to emerge as an intense economic force in our economy.

Second, you had the coming of age of the baby-boomer generation, the oldest of what had just turned 34.

And today, we have the same two things going on.

First, we have this incredible technological development – the Internet of Things is beginning to revolutionize how our world works in everything from our roads to cars to our health and every part of our lives.

Second, we have the coming of age of the millennial generation – the largest generation in US history at 92 million strong.

An Astonishing Bull Market Rally

The Dow Jones Industrial Average soared from 770 in August 1982 up to 11,750 in January 2000 – a gain of 1,426%.

In other words, if you put $ 10,000 into the Dow index at the beginning of this bull market and simply held, you've $ 14.2 million by its end. Incredible, phenomenal, astonishing gains purely through buying at the beginning of the bull market!

Now, I understand that many of you might be skeptical of what I've just told you.

However, I've spent a decade researching bull and bear markets through history. And this combination of a major technological change and a new generation coming of age is as close as you are going to get to a sure thing in terms of a formula for predicting a major new bull market. And it's one that I'm staking my credibility and reputation on.

You could also buy a focused exchange-traded fund (ETF), such as the SPDR Dow Jones Industrial Average ETF (NYSE: DIA) , to benefit from this major new bull market.

However, if you want to make life-changing gains that can give you financial freedom, you have to find single stocks with the potential to go up 300%, 500%, 1,000% or even more. This is the focus of a new service my publisher is launching early next year. Keep checking back here if you are the type of investor who wants these kinds of gains.

These kinds of gains may seem unimaginable today, but just remember that in the last major bull market we had incredible winners such as Home Depot that went from $ 0.15 a share to $ 52 – a gain of 34,567%. There are going to be astonishing winners just like Home Depot coming in the years ahead.

Source by Paul Mampilly

How to Write a Quick & Easy Car Repo Letter

Automotive

On your own letterhead paper write or print out a notice which includes the name, address, and phone number of the defaulted client. Explain that you have attempted to contact them to no avail. Notify that they must contact you in order to come to a resolution to their outstanding payments.

List the vehicle that is in question along with its VIN number.

Give a final date that all past due payments are due by (labeled “last date for payment”) and the amount due to catch payments up (labeled “amount now due”). Explain that:

“If you pay the amount now due by the last date for payment you may continue with the contract as though you were not in default. If you do not pay by that date, we may exercise our rights under law, including involuntary repossession of the vehicle in which we hold a security interest.”

Remember that as time passes until the due date you assign more payments due may accumulate. Include in the letter that by the due date these payments will also be due and list each payment by amount and normal scheduled due date, i.e. “date due_______ Amount _______”

After listing these payments that will accumulate by the final due date explain that:

“In order to fully cure your account, and in order to prevent the exercise of our legal rights under the law, the payment or payments listed above must ALSO be paid in full on or before the last due date for payments”

Inform that even if the account is caught up you still have the right to take action in the event that payments fall behind again within a designated amount of time:

“If you are late again within the next____weeks in making your payments, we may exercise our rights, including repossession, without sending you another notice like this one.”

Explain your rights to collect further monies owed under the lien contract:

“The rights we may exercise under the law include repossession of the motor vehicle securing this debt. If the motor vehicle is repossessed, either voluntarily or involuntarily, it may be sold and you may owe the difference between the net proceeds from the sale and the remaining balance due under the contract.”

Ask the client to contact you right away if they have any questions.

Close the letter with:

“If we do not hear from you within___days, we will have no choice but to put out a REPOSSESSION ORDER on the vehicle.”

Sign it and have it notarized.

Mail the letter certified with delivery confirmation and return address requested. This way you have 2 ways of confirming and proving that they did receive the notice in case legal questions arise after the repossession.

You also obtain any forwarding address if the client has moved so that you can more easily locate the vehicle. The return address requested will send the letter back to you if they have moved instead of being forwarded to them.

If payment has not been made and you are ready to repossess the vehicle you need to write or type a REPOSSESSION ORDER. This will state the following:

Repossess Order

Purchaser:

[Name]

[Address]

[Phone number]

Default of contract

[vehicle year, make, model, VIN]

Net Payoff Balance: [Total bottom line balance owed]

Repo fee: [$ amount of the repo fee you charge]

Storage fee: [$ amount of the storage fee you charge]

Damage: [$ amount of any damage known to be done to the vehicle] You may also write TBD or To Be Determined here

Total: Add up all of these amounts and enter the total here

The named buyer is in default of installment loan contract and payment is under uniform and commercial state and local codes covering installment contract.

We agree to indemnify and save [your name/business name] harmless from and against all claims damages, losses, and actions resulting from or arising out of our efforts, except as may be caused by negligence or unauthorized acts by our agents representing us.

Dealer Authorizing Repossession

[your name/business name, address, and phone number here]

Notarize at the bottom

-Make a copy of the order for your records and give the order to your repossession agent (the person performing the actual vehicle acquisition).

Note that –

* If you follow these steps you will have done a legal repossession.

* Many people do not send a notification letter because many times a client will attempt to hide the vehicle once they have received a letter like this, especially if they have no intentions of paying.

* Most people are unaware of their rights when it comes to a vehicle repossession so they usually don’t report someone who has not followed proper procedure, however, If you do not send the certified letter notifying them of their default and giving them opportunity to make payment they have grounds to report you to the state’s DMV Dealer Services and the state’s Attorney General which can result in you being fined as well as taken to court for violating repossession laws.

* Keep in mind that some states do not allow a repossession to take place on private property if the repossession agent is asked to leave (some states require him/her to leave and for you to obtain a court order).

* Some states have no restrictions on public property.

* Some states forbid repossession to take place at a client’s place of employment.

* Be sure to check specific repossession laws pertaining to your state.

Source by Jennifer LeMay