Net Branch Debt Settlement Opportunity

Ific Bank 1St Mutual Fund Ipo Lottery Result 2010

The draw of the lottery for the IFIC Bank 1st Mutual Fund initial public offering (IPO) will be held on March 09, 2010 (10:30 AM)

Next at the Bangabandhu International Conference Centre at the Sher-e-Bangla Nagar in Dhaka, President of the DSE Rakibur Rahman confirmed Wednesday. The trading of the GP shares on the bourses is expected to begin by November 15 next.

The Scheule for IFIC Bank First Mutual Fund Lottery:

Date:March 09, 2010

Time: (10:30 AM)

Venue: Bangabandhu International Conference Centre

You can Get this result by Click Here

IIFIC Bank 1st Mutual Fund
SIZE OF THE FUND:Tk.1,200,000,000 divided into 120,000,000 units at par value of Tk. 10 each
SPONSOR'S CONTRIBUTION: 25,000,000 Units of Tk. 10 each at par for Tk. 250,000,000
PRE IPO PLACEMENT: 55,000,000 Units of Tk. 10 each at par for Tk. 550,000,000
PUBLIC OFFER : 40,000,000 Units of Tk. 10 each at par for Tk. 400,000,000
RESERVED FOR MUTUAL FUNDS: 4,000,000 Units of Tk. 10 each at par for Tk. 40,000,000
NON RESIDENT BANGLADESHIS: 4,000,000 Units of Tk. 10 each at par for Tk. 40,000,000
RESIDENT BANGLADESHIS: 32,000,000 Units of Tk. 10 each at par for Tk. 320,000,000
This Offer Document sets forth concisely the information
about the fund that a prospective investor ought to know
before investing. This Offer Document should be read
before making an application for the Units and should
be retained for future reference.
The particulars of the fund have been prepared in
accordance with  as amended till date and filed with
Securities and Exchange Commission of Bangladesh.
The Issue/Fund shall be placed in "A" category.
The Fund shall apply for listing with both the Stock
Exchanges.
SPONSOR :
IFIC Bank Limited
TRUSTEE:
Investment Corporation of Bangladesh (ICB)
CUSTODIAN:
Investment Corporation of Bangladesh (ICB)
ASSET MANAGEMENT COMPANY:
RACE Management PCL
Subscription
Subscription opens:February 7,2010
Subscription closes: February 11,2010
For Non-Resident Bangladeshis
subscription closes on February 20,2010
Date of Publication of Prospectus:January 11,2010
IFIC BANK 1ST MUTUAL FUND
Highlights
1. Name: IFIC Bank 1st Mutual Fund
2. Size of the Fund: Tk. 1,200,000,000 divided into 120,000,000 units at par value of Tk. 10.00
each. In future the fund size will not be changed.
3. Face Value: Tk. 10.00 per unit.
4. Nature: Closed-end Mutual Fund with a tenure of 10 years.
5. Objective: The objective of the Fund is to provide attractive dividend to the unit holders by investing the
proceeds in the various instruments in the Bangladeshi Capital Market and Money Market.
6. Target Group: Individuals, institutions, non-resident Bangladeshis (NRB), mutual funds and collective
investment schemes are eligible to apply for investment in the Fund.
7. Dividend: Minimum 70% income of the Fund will be distributed as dividend in Bangladeshi Taka only at the
end of each accounting year. The Fund shall create a dividend equalization reserve fund to
ensure consistency in dividend.
8. Mode of Distribution: The dividend will be distributed within 30 days from the date of declaration.
9. Transferability: Units are transferable. The transfer will be made by the CDBL under electronic settlement
process.
10. Encashment: The Fund will be listed with DSE and CSE. So investment in this Fund will easily be encashable.
11. Tax Benefit: Income will be tax free up to certain level, which is permitted as per Finance Act. Investment in
the Fund would qualify for investment tax credit under section 44(2) of the Income Tax Ordinance
1984.
12. Report & Accounts: Every unit holder is entitled to receive annual report together with the yearly and half-yearly
statements of accounts as and when published.
IFIC BANK 1ST MUTUAL FUND
Risk Factors
Investing in the IFIC Bank 1st Mutual Fund (hereinafter the Fund) involves certain considerations in addition to the risks normally
associated with making investments in securities. There can be no assurance that the Fund will achieve its investment objectives.
The value of the Fund may go down as well as up and there can be no assurance that on redemption, or otherwise, investors will
receive the amount originally invested. Accordingly, the Fund is only suitable for investment by investors who understand the
risks involved and who are willing and able to withstand the loss of their investments. In particular, prospective investors should
consider the following risks:
1. In General: There is no assurance that the Fund will meet its investment objective; investors could lose money by
investing in the Fund. As with all mutual funds, an investment in the Fund is not insured or guaranteed by the
Government of Bangladesh or any other government agency.
2. Market Price Risk: Stock prices and Mutual Fund prices generally fluctuate because of the interplay of the various
market forces that may affect a single issuer, industry, or market as a whole. The Fund may lose its value or experience
a substantial loss on its investments due to such market volatility.
3. NAV Risk: Stock market trends show that prices of many listed securities move in unpredictable directions, which may
affect the value of the Fund's portfolio of listed securities. Depending on its exposure to such securities, the net asset
value of units issued under this Fund can go up or down depending on various factors and forces affecting the capital
markets. Moreover, there is no guarantee that the market price of unit of the Fund will fully reflect their underlying net
asset values.
4. Issuer Risk: In addition to market and price risk, value of an individual security can, in addition, be subject to factors
unique or specific to the issuer, including but not limited to management malfeasance, lack of accounting transparency,
management performance, management decision to take on financial leverage. Such risk can develop in an
unpredictable fashion and can only be partially mitigated, and sometimes not at all, through research or due diligence.
To the degree that the Fund is exposed to a security whose value declines due to issuer risk, the Fund's value may be
impaired.
5. Legal Risk: The Honorable High Court, in its verdict on November 8th, allowed mutual funds to expand their capital
base by issuing bonus and rights shares or pay dividends through cash or bonus shares, without curbing the regulator's
absolute power to determine which funds would be eligible to do so. However, although the case has been resolved by
the High Court, the Securities and Exchange Commission still has the provision to appeal against the verdict with the
Appellate Division of the Supreme Court and by exercising that option, the issue of dividends in any form may remain
pending once again.
6. Asset Allocation Risk: Due to a very thin secondary debt market in Bangladesh, it would be difficult for the Fund
Manager to swap between asset classes, if and when required. In addition, limited availability of money market
instruments in the market implies that there are only few opportunities for short term or temporary investments for
the Fund.
7. Lack of Diversification Risk: Due to small number of listed securities in both the stock exchanges, it may be difficult to
invest the Fund's assets in a widely diversified portfolio.
8. Liquidation Risk: Market conditions and investment allocation may impact on the ability to sell securities during periods
of market volatility. The Fund may not be able to sell securities or instruments at the appropriate price and/or time.
9. Dividend Risk: If the companies wherein the Fund will be invested fail to pay expected dividend, it may affect the
overall returns of the Fund.
10. Investment Strategy Risk: The Fund is subject to management strategy risk because it is an actively managed
investment portfolio.The AMC will apply investment techniques and risk analyses in making investment decisions for
the Fund, but there can be no guarantee that these techniques and analyses will produce the desired results.
11. Socio-Political & Natural Disaster Risk: Uncertainties resulting from political and social instability may affect the value
of the Fund's Assets. In addition, adverse natural climatic condition may hamper the performance of the Fund.
IFIC BANK 1ST MUTUAL FUND
1. PRELIMINARY
1.1. PUBLICATION OF PROSPECTUS FOR PUBLIC OFFERING:
RACE Management PCL has received Registration Certificate from the Securities and Exchange Commission (SEC) under the
consistency in dividend.
5) The Asset Management Company shall dispatch the dividend warrants at the expense of the Fund, within 30 days of the
declaration of the dividend and shall submit a statement within next 7 (seven) days to the Commission, the Trustee and the
Custodian.
6) Before record of ownership by the CDBL, a transferee shall not possess the right to any dividend declared by the Fund.
Total NAV
-------------------------------
No. of units outstanding
IFIC BANK 1ST MUTUAL FUND
4. RISK CONSIDERATIONS
4.1. RISK FACTORS:
Investing in the IFIC Bank 1st Mutual Fund (hereinafter the Fund) involves certain considerations in addition to the risks normally
associated with making investments in securities. There can be no assurance that the Fund will achieve its investment
objectives. The value of the Fund may go down as well as up and there can be no assurance that on redemption, or otherwise,
investors will receive the amount originally invested. Accordingly, the Fund is only suitable for investment by investors who
understand the risks involved and who are willing and able to withstand the loss of their investments. In particular, prospective
investors should consider the following risks:
1. In General: There is no assurance that the Fund will meet its investment objective; investors could lose money by
investing in the Fund. As with all mutual funds, an investment in the Fund is not insured or guaranteed by the
Government of Bangladesh or any other government agency.
2. Market Price Risk: Stock prices and Mutual Fund prices generally fluctuate because of the interplay of the various
market forces that may affect a single issuer, industry, or market as a whole. The Fund may lose its value or experience
a substantial loss on its investments due to such market volatility.
3. NAV Risk: Stock market trends show that prices of many listed securities move in unpredictable directions, which may
affect the value of the Fund's securities of listed securities. Depending on its exposure to such securities, the net asset
value of units issued under this Fund can go up or down depending on various factors and forces affecting the capital
markets. Moreover, there is no guarantee that the market price of unit of the Fund will fully reflect their underlying net
asset values.
4. Issuer Risk: In addition to market and price risk, value of an individual security can, in addition, be subject to factors
unique or specific to the issuer, including but not limited to management malfeasance, lack of accounting transparency,
management performance, management decision to take on financial leverage. Such risk can develop in an
unpredictable fashion and can only be partially mitigated, and sometimes not at all, through research or due diligence.
To the degree that the Fund is exposed to a security whose value declines due to issuer risk, the Fund's value may be
impaired.
5. Legal Risk: The Honorable High Court, in its verdict on November 8th, allowed mutual funds to expand their capital
base by issuing bonus and rights shares or pay dividends through cash or bonus shares, without curbing the regulator's
absolute power to determine which funds would be eligible to do so. However, although the case has been resolved by
the High Court, the Securities and Exchange Commission still has the provision to appeal against the verdict with the
Appellate Division of the Supreme Court and by exercising that option, the issue of dividends in any form may remain
pending once again.
6. Asset Allocation Risk: Due to a very thin secondary debt market in Bangladesh, it would be difficult for the Fund
Manager to swap between asset classes, if and when required. In addition, limited availability of money market
instruments in the market implies that there are only few opportunities for short term or temporary investments for
the Fund.
7. Lack of Diversification Risk: Due to small number of listed securities in both the stock exchanges, it may be difficult to
invest the Fund's assets in a widely diversified portfolio.
8. Liquidation Risk: Market conditions and investment allocation may impact on the ability to sell securities during periods
of market volatility. The Fund may not be able to sell securities or instruments at the appropriate price and/or time.
9. Dividend Risk: If the companies wherein the Fund will be invested fail to pay expected dividend, it may affect the
overall returns of the Fund.
10. Investment Strategy Risk: The Fund is subject to management strategy risk because it is an actively managed
investment portfolio. The AMC will apply investment techniques and risk analyses in making investment decisions for
the Fund, but there can be no guarantee that these techniques and analyses will produce the desired results.
11. Socio-Political & Natural Disaster Risk: Uncertainties resulting from political and social instability may affect the value
of the Fund's Assets. In addition, adverse natural climatic condition may hamper the performance of the Fund.
IFIC BANK 1ST MUTUAL FUND
4.2. EXPECTED MARKET PERFORMANCE OF THE FUND:
1) It is expected that demand for the IFIC Bank 1st Mutual Fund units will always rule over supply.
2) Brand name of IFIC Bank Limited and Trustee, ICB's track record in the successful marketing of several mutual funds in the
past may motivate investors to invest in this Fund.
3) World class investment management team of the RACE Management PCL as a new-generation Asset Management Company
(AMC) would attract investors to invest in this Fund.
4.3. WHO SHOULD INVEST AND HOW MUCH TO INVEST:
1) Individuals who do not have tolerance of bearing risk and know nothing about the functioning of the capital market need
not apply for the units of the Fund.
2) Individuals who are looking for long-term capital growth and consistent dividend payment and are comfortable with the
risks associated with equity investments should consider investing in the Fund.
3) An individual should also consider investing in the Fund if he/she can accept some variability of returns, have a moderate
tolerance for risk and are planning to invest in the Fund over the medium to long-term.
4) Considering other factors like the investment opportunities available in the market, return expectation, income level and
consumption pattern, one may put only a portion of his/her total portfolio into the Fund.
IFIC BANK 1ST MUTUAL FUND
5. FORMATION, MANAGEMENT AND ADMINISTRATION
5.1. SPONSOR OF THE FUND:
IFIC Bank Limited is a first-generation private commercial bank with 82 (eighty two) branches across various regions in
Bangladesh. With its stock listed on both Dhaka and Chittagong Stock Exchanges, IFIC Bank Ltd. offers a full range of commercial
banking products and services to corporate, middle-market and retail segments. Being one of the oldest private commercial
banks, IFIC Bank has unique insights into the dynamics in the corporate and financial sector. The Bank strongly believes that the
stock market in Bangladesh is entering a secular growth phase and is becoming an attractive destination for both savings and
investment capital in Bangladesh. As a result, IFIC is increasing its presence in the Bangladeshi stock market and has recently
started stock trading and brokerage services for its clients.
IFIC Bank is the first first-generation bank to sponsor a mutual fund, believing that IFIC Bank 1st Mutual Fund will play a positive
role in developing the Bangladeshi Mutual Fund industry. With that in mind, IFIC Bank has appointed RACE Management PCL as
the Fund Manager. RACE Management is a next-generation asset management company has successfully launched the EBL First
Mutual Fund, the first-ever bank sponsored mutual fund in Bangladesh.
5.2. TRUSTEE & CUSTODIAN OF THE FUND:
In order to ensure maximum trust and confidence of the investors, supervisory bodies and potential investors in the fund, the
Investment Corporation of Bangladesh (ICB) will act as the Trustee and Custodian of the Fund.
The Investment Corporation of Bangladesh (ICB) was established on 01 October 1976, under "The Investment Corporation of
Bangladesh" Ordinance, 1976 (No. XL of 1976) to encourage and broaden the base of investment, develop the capital market,
mobilize savings, promote and establish subsidiaries for business development and provide for matters ancillary thereto. Over
the years, the activities of ICB have grown manifold, particularly in Merchant Banking, Mutual Funds operations and stock
brokerage activities. ICB is the biggest investment bank and the harbinger of mutual fund industry in the country. Out of
country's 17 (seventeen) closed-end mutual funds, ICB and its subsidiary manage 13 (thirteen) mutual funds.
As of August 2009, ICB has acted as Trustee to the 11 debenture issuances involving Tk. 155.95 crores, issues of 8 bond issuances
involving Tk. 817 crores. ICB also performed the responsibilities of trustee and custodian to 9 closed-end mutual funds of Tk. 475
crores and 2 open-end mutual funds with initial capital of Tk. 40 crores.
5.3. ASSET MANAGER OF THE FUND:
RACE Management PCL (hereinafter RACE) will act as the Asset Manager of the Fund. RACE is a second-generation asset
management company, receiving its Asset Management license in September 2008 after fulfilling rigorous due diligence
requirements of the SEC. RACE Management has already established a successful track record by launching the first-ever
commercial bank sponsored mutual fund, EBL First Mutual Fund and is the only second generation asset management company
to have a mutual fund under management in Bangladesh.
The RACE Team: With about 30 professionals, RACE has one of the largest asset management teams in Bangladesh which
includes (1) senior Bangladeshi investment professionals with world-class training and over a decade of experience in
investment management and research in some of the worlds' most developed capital markets; (2) Senior Bangladeshi
professionals from the local banking and financial services industry with strong operational experience and an extensive contact
base among the local business community; (3) a cadre of young professionals who have gained unique insights into the local
capital markets through the application of sophisticated investment techniques and on-the-ground research.
The investment management operation of RACE is managed by a team of investment professionals and is guided by an
Investment Committee. The Investment Committee reviews the Fund portfolio selection process to ensure compliance with the
objectives set out in the Trust Deed. In addition, the RACE Investment Committee pays special regard to guidelines regarding
restriction on investments/investment limits as prescribed from time to time; these restrictions relate to single company/group
investments, investments in associate companies, investments in unrated debt instruments etc. In addition, the RACE
Investment Committee also reviews the portfolio periodically to assess liquidity positions and evaluate the risk parameters and
will, from time to time, rebalance the portfolio.
IFIC BANK 1ST MUTUAL FUND
RACE Approach to Fund Management: Highly Process-Driven Investment Approach
A flexible yet disciplined investment process is the hallmark of a professional investment management fund. Incorporating the
intellectual capital and collective experience of the RACE's senior investment professionals, RACE has developed a 7-step
investment process:
Step 1: Universe Selection. The first step of the investment process begins with identifying the universe of stocks. These
stocks are then classified in four categories based on RACE's proprietary selection methodology.
Step 2: Focus List. The universe of stock is then narrowed down to build a prospective focus list. This step is usually done in
phases. The first phase involves narrowing down the list through RACE's proprietary filtering process. The second phase
involves narrowing the list further through the fundamental research inputs.
Step 3: "Top Down" Analysis involves analysis of macroeconomic trends, analysis on broad market indices, analysis of fund
flow trend to formulate sector biases and sector allocations.
Step 4: "Bottoms Up" Company Analysis. This step involves a combination of individual security analysis based on multiple
parameters, including valuation, qualitative analysis to identify business trends, competitive outlook and corporate
management. These analyses are supplemented by company visits and information exchange with management.
Step 5: Portfolio Construction. The next step is to create an optimum portfolio with the goal of maximizing returns and
minimizing risk.
Step 6: Risk Management. This step applies the pre-determined position limits to the portfolio, limiting sector exposure and
individual stock exposure. Maintaining lower volatility is also an important concern; to this end, beta adjustment and other
sophisticated risk analysis is used.
Step 7: Trade Execution: RACE uses a combination of quantitative strategies and market information to maximize its trade
executions. To this end, RACE has selected a panel of brokers to execute its trades in an efficient and confidential manner.
5.4. AUDITORS:
The Trustee, ICB has appointed Hoda Vasi Chowdhury & Co. Chartered Accountants as the Auditor of the Fund for the first year.
It is one of the reputed and oldest audit firms of the country and is associated with world-renowned Deloitte Touche Tohmatsu.
The Trustee will continue to appoint the Fund Auditor throughout the tenure of the Fund.
5.5. LIMITATION OF EXPENSES:
1) The initial issue expenses in respect of the Fund shall not exceed 5% of the Fund to be raised, the details of which are
provided in this Prospectus.
2) The total expenses charged to the Fund except the amortization of initial issue expenses including transactions cost in the
form of stock brokerage against buy and sell of securities forming a part of acquisition or disposal cost of such securities,
transaction fees payable to the Custodian against acquisition or disposal of securities, CDBL Charges, listing fees payable to
the stock exchanges, the annual registration fees payable to the Commission, audit fees, cost for publication of reports and
periodicals, bank charge, etc., shall not exceed 4% of the weekly average net assets outstanding during any accounting year
or as may be determined by the Rules.
IFIC BANK 1ST MUTUAL FUND
5.6. FEES AND EXPENSES:
The Fund will pay the fees of Asset Management Company, the Trustee and the Custodian together with any other fees,
commissions and expenses as may arise from time to time. The Fund will bear its own costs and expenses incurred/accrued in
connection with its formation, promotion, registration, public offering, listing together with certain other costs and expenses
incurred in its operation, including without limitation, expenses of legal and consulting services, auditing, other professional fees
and expenses, brokerage, share/debenture registration expenses, guarantee or underwriting commission and fees due to the
SEC. The Fund will also bear all other incidental expenses including printing, publication and stationery relating to its smooth and
fair operation.
RACE has estimated the normal annual operating expenses of the Fund will not exceed 4% of the average NAV of the Fund.
However, there may be variation in the actual operating expenses of the Fund. Major expenses of the Fund are detailed as
follows:
1) Issue and Formation Expenses: Issue and formation expenses are estimated to be not over 5% of the total Fund size. The
expenses will be amortized within 10 (ten) years on a straight-line method. The estimated expenses for the issue and
formation of the Fund are presented below:
1. Banker to the issue fee/Collection Charge : 0.60 percent
2. Formation Fee Payable to AMC : 1.00 percent
3. Printing & Publication : 0.60 percent
3. Legal Expenses (Listing Fees, registration Fees etc.) : 1.20 percent
4. Other expenses : 0.80 percent
Total : 4.20 percent
2) Management Fee: As per িসিকউির

About the Author

I am a service Man Of Stock market

Car Dealerships

Introduction

Car dealerships are just as important as the car themselves. You may know a lot about the car you intend to purchase and you should also know about the car dealerships to. Here are some tips that will help as you are buying a car.

Article1-obtaining car loans

Before one can be able to buy a car, they actually need to have a source of finance. There are several ways which this can be done and one of them is through the use of car loans. Auto loans come in various shapes and sizes and one of them is through the use of auto refinance loans. There are plenty of Companies that offer this service so it is up to the car buyer to make sure that he gets the best deal. The best deal in this instance is the one that will allow him or her to able to pay a low interest rate. (Dauglaus, 2007)

Most car buyers actually think that it is only possible to get a good refinance when they have good credit. But these days there are alternatives that allow one to be able get some good deals at despite cases of sub prime loans with high interest. Car dealerships these days have become so expensive. It is therefore appropriate to find some other alternative in the market that allows one to save up; these are car refinances.

When one is given several offers, they should first check for some issues to make sure that all the aspects necessary are dealt with before hand. First of all, one should know what the value o the vehicle they would like to purchase. This should then be followed by checking for the offer in writing. Besides that, a potential car owner should make sure that the value of the car to be bought will have a higher value than what he will owe the auto lenders. Payment should be done in due time and on top of that one should make sure that they have been holding their loan for a period of twelve months. The potential buyer should make sure that he or she monitors their credit rating such that they get reports for every year they have been paying.

Interest rates are also an important thing to watch out for. One should make sure that they choose a refinance loan that offers interest rates that at least one percent less than what they have been offered by their car lenders. (Dauglaus, 2007)

It is quite easy to get a refinance loan. Most companies have their websites in the internet and one can be signed up at the touch of a button. One should approach these Companies with caution though because it is so easy to seal a deal. It can be finished even after just fifteen minutes.

Article2- car dealership tactics

This article talk about all the basic things one needs to know about car dealerships before they purchase a car. First of all, one should note that there is a lot of information out there about car dealerships. But most people normally get their information from advertisement on the net. But what they normally overlook is that you can be able to get fantastic deals at web blogs.

As you are looking for a car dealership, you should go directly to where they are. You can start with three car dealerships. Then asses the way those people give you information and whether they have good services. Little attention should be paid to price at this point because you are not buying yet, you are simply looking for a good car dealership. (Hoffman, 2007)

When you have found an appropriate car dealership, then it is necessary to state your case before hand. There is no need to waste hours and hours of precious time trying to settle on a price which you already know.  You should move out as soon as you realize that the car dealership’s offer is not going to change.

Car purchasers should take advantage of rebates. This is because they offer exceptional prices that may lie anywhere between five hundred to three thousand dollars below their invoice price. This normally occurs when the car to be purchased has stayed for very long in the store room and the car dealers simply want to get rid of it. But it should be noted that not all car dealerships can go below their invoice prices because sometimes these may be the only way that those dealerships have to make profits. (Hoffman, 2007)

Article 3- What to do when negotiating with car dealers

It is advisable to finance the car elsewhere rather than getting it from the dealership. As one shops for finance, it is crucial to find good rates. On top of that, buyers should beware that salesmen at car dealerships will try to get you to buy as many things on offer as possible; from financial services to car spare parts. One should only buy what is absolutely necessary since these people are simply trying to do their job. (Lorio, 2007)

It is advisable that if one is going to purchase a new car, then they should first sell their previous car on their own. This is because they might be counting on profits gained from the old one to set off expenses for the new car. Yet the deal might not go well.

Buyers should also beware that there are some car dealers that take advantage of their position as the first party to access a given car when I has been released for sale by the manufacturers. These car dealers get some parts of the car and sell them separately for very high prices yet those parts are supposed to be part of the entire car package. One car part that most dealers take advantage is the car alarm. This is what most car dealerships might tell you; we sell the car alarm to you as part of the entire car finance and all you will have to pay is say fifteen dollars a month. What they are not telling you is the fact that you will end up paying a total of one thousand two hundred instead of about three hundred dollars at an electronics store. I you are to tell the car dealers about this, they will probably try to discourage you from pursuing that line because they claim that installing foreign parts not designed for the car would damage others. They will also tell you that the part has a warranty that falls under the one offered for the car. This is just a gimmick to make more cash from you so do not fall prey to this. (Lorio, 2007)

A car dealership should only offer cars that are in tip top shape. Make sure that you only buy cars whose mechanical conditions are flawless. This is because in case the car breakdowns, then the good deal which you worked so hard to get has no meaning.

Article 4-governement car auctions

The article talks about how to purchase a used car. I know you can probably ask why would l go for a used car. Well, there are plenty of reasons why this is a suitable alternative. First of all, you get great bargains; it is not uncommon to find cars that may cost as low as one thousand dollars when you would purchase them at a local car dealership for ten or twenty times that price.

It’s advisable to consider government auctions as a suitable alternative to purchase a used car. You might ask yourself where those cars in the auctions come from. Well, most vehicles are the ones that have been captured by branches of the government like the DEA or the Federal Bureau of Investigation. These auctions charge a small fee like say thirty dollars; these are peanuts compared to the savings you will get from such a deal. On top of that it is possible to find that most of these auctions display vehicles that are in almost new status. However buying any item from auctions is always a risk because you are basically swimming into unknown waters. They normally tell you that you are purchasing items in the as- is state. That is, you may not get a chance to see it all the fine details for yourself before the purchase. But chances are most of the vehicles will be in quiet good condition. Here’s something you did not know; most used car dealerships normally come to these types of auction to get bargains. It is not uncommon to find a car dealership that bought a certain car for a reasonable price and then find them selling it at say five times more than what they bought it for. (Aguirre, 2007)

If you are probably asking where these government auctions can be found, well the internet is a God send. All you have to do is visit websites such as http://realtimeauction.com/ which is a government car auction website. Besides that, there are numerous advertisements normally placed on radio, television and other forms of media. They usually give details about where the car auctions will be, time, types of vehicles sold there. One should take their time to select the exact make of car they would.

There are also other options for finding used vehicles. One of the most obvious places to look for is EBay or other sources like Crag lists. When you decide to settle for EBay, then you may not get the exact car you like at an instant. It is therefore necessary to take your time and keep checking until you finally get what you need. (Aguirre, 2007)

There are certain things that need to be examined when purchasing a used car whether it is obtained from government auctions or simply from any type of dealership. One should start with the vehicle’s body work. Never choose car that has too much repair done on it. This will normally ooze out through the paint job done. Through the paint on the body, you can still see what kind repair work has been done. If it is quite visible then this is a big no- no. Otherwise such vehicles simply tend to fall apart after you have bought them.

If you are not very familiar with vehicles, it is advisable to bring a friend who knows lot about mechanics. Here’s what you should look out for. First, the general appearance, then make sure that there is no oil leaking out of the car. There should be no leaking gaskets either. Also, make sure that the car does not make any funny noises as this is normally a sign that there is something that has gone wrong somewhere. On top of that make sure that there are no weird smells either. Nothing should go unchecked. If anything is where it should not be, or you are just not sure about it, then the best thing is to simply let go.

After checking out the exterior, it is quite advisable to get inside the car. Make sure that all the systems inside are in perfect condition. These include the air conditioner, radio; electronics and any other system necessary to get the car working properly. Avoid cars that have been poorly maintained by their previous owners. Make sure that they are not torn or that they do not have a dashboard that is just aching for attention and repairs. On top of that, it is also necessary to smell it. Avoid cars that have quire smells even if it was a smoker’s vehicle. It is also possible to find that some vehicles have been damaged by water. These are all cars to stay away from because they will only complicate your motoring experience. (Aguirre, 2007)

If the car is being bought from a private arrangement rather than a government auction, then make sure that you obtain all the necessary receipt work that put down the repair work previously done to the car. This will go a long way to show how rugged the car has been or what kind of condition it is in. If the repairs were too many, then it is an indication that the car will damage you financially. Also make sure that you ask as many questions as possible. This is because most owners selling their cars actually have good intentions. They would like it if they sold their car to someone who did not seem reckless or to someone who was bound to take good care of vehicle. Besides, it is your right, if that car is going to be part of life for a while, you might as well know as much about it as you can.

Article 5- avoiding car dealership scams

When getting yourself a new car, it is crucial to remember that there are plenty of people out there who are not as legitimate as you are. So you should exercise discretion and caution. Cases have been reported of car dealerships that involved themselves in scams. The thing is, car dealerships scams are so easy to do and do not involve a great deal of wit. You might be asking yourself what is all the fuss about. Are these scams really worth all the fuss? Well, reports have been found in the papers and other news sources about car dealers that have committed title fraud, where title fraud is failure to adequately transfer ownership of property from one party to another without the knowledge of the buyer. In the year 2006, there were cases of title fraud committed by car dealerships. One such example is a dealer in Mitsubishi vehicles located in Escondido California. This owner was found guilty of title fraud and was given a punishment of spending a day in jail, paying forty thousand worth of restitution and would be kept on probation for a period of three years. There was also another case of someone who had been accused ten times for this kind of fraud and was investigated and found guilty. (Serge, 2007)

Title fraud has become a common phenomenon because some car dealerships may be getting desperate. Maybe they had mismanaged their funds and did not have any sort of cash flow to fall back on. This means that the car dealer did not have a means to pay his employees and settle all other expenses. He therefore opts for a scam as an easy target for money. Other car dealerships just want to get what they do not deserve; they are greedy and will look for money any away they can.

Here’s how to make sure that one does not fall into the trap of car dealership scams. Taking an example of a car to be traded in to the car dealership for the purchase of another, let’s say the car to be traded in has been in use for the past two years and that the car dealership will give me a total of fourteen thousand dollars for the car. Maybe the past car payments are still not complete after the bank asked me to make installments of four hundred dollars every month for the next ten months. The car dealership will clear any accrued payments to the bank and still get their remaining ten thousand. A good car dealership will settle the remaining credit owed to the bank within a period of about three to five days. However, when dealing with a fraudster, they will not complete those payments owed to the back because they want to use the money for themselves. According to the bank, the car owners are the ones who asked for the loan and they will still be the ones held responsible for clearing the debt of four thousand. Such car dealerships will tarnish your credit record and will deny you chances from accessing another loan from them. Most car dealers doing this sort of thing normally keep lying to the car seller and to the bank that they will clear payments very soon but that doesn’t happen and time simply keeps on accumulating. (Serge, 2007)

Article 6-how to discourage car dealership fraud

Here’s another classic case that could be a potential loss for you as you purchase your vehicle. There are some car dealerships that contract mainly with floor plan lenders. These are lenders who will give the car dealership a number of cars to stock up their premises. Then the car dealerships will pay up interests and then finish off the whole amount after selling a car. This normally occurs because the car dealership may not want to owe too much in terms of inventory. If they had about 100 cars and each of those cars is about twenty thousand dollars, then they would have to pay a total of two million in stock. So to go around this, car dealerships look for a floor plan. They are supposed to pay of the floor plan lenders as soon as a customer purchases a car. But when one comes across some car dealerships who intend on committing a scam then they keep delaying payments made to these car dealerships.

Taking an example of someone who may be purchasing a car that costs about twenty thousand dollars, if it happens that this person is using auto finance from a bank then there is a window of opportunity for the fraudsters. Let’s say that the car dealership requires a down payment of three thousand dollars and the remaining is settled by the bank. You as the person making the car purchase may think that you are getting a good settlement for your payment but that may not be the case when dealing with crooks. What these people may do is that they may refuse to transfer ownership to you. They delay registering you and fail to notify their floor plan lender about the purchase. What normally happens is that the bank that was supposed to finance the purchase will send its money to you. But this will be used for other purposes. (Lorio, 2007)

There are a number of problems that could arise from this. First of all, if one falls into an accident, while using the car and it happens that they get seriously injured, and then insurance can become a very difficult issue to deal with. First of all, insurance Companies cannot offer compensation for a car that is registered. This is because the floor lenders still believe that their car has not been purchased and it is still in their name. The driver of the vehicle will be forced to pay for damages from his own finances. As if that is not enough, one might be forced to pay their own medical expenses and this may total up to around one hundred and fifty thousand dollars. Let’s not forget the fact that you will have tarnished your credit record with the bank.

There are a number of things that can be done in order to avoid such an awkward situation. First of all, one can make sure that they find out if the car dealership they are buying from has a floor plan dealer and who they are. After completing the down payment and all the necessary paperwork, it is advisable to call the floor plan lender and tell them about the transaction. It is also necessary to make sure that one gives them all the relevant details needed in transfer of ownership like one’s address, name etc. These are all essential details in making sure that the floor plan lender will expect payment from the car dealership after a period of three to five days. The car dealer will be discouraged from trying anything funny because their lenders already know. One should also call the given bank that lent them the money for financing the car purchase and should similarly give them all their details. One should also write letters to these latter two parties so that they can have evidence in case any questions arise.

Article 7-what to consider before making a car purchase

There are number of payments that have to be cleared before a certain purchase can be made. First of all, one has to make sure that they have a title for their car purchase. This means that the car dealership transfers the name of the vehicle from them to you. One also has to pay fees for getting a license. These fees depend on what state one stays in and what laws govern these payments. On top of that, one also has top clear with the dealership concerning the issue of paying up document preparation fees and also paying up notary fees. It should be noted that all these fees are stipulated within the laws. However charges differ from car dealer to another so it is up to the buyer to make sure that they get a good offer. (Law Guru, 2007)

In formation concerning these payments can be found from a license bureau within ones location. These are the ones that will be able to clarify on the limits that are allowed within that location. It should be noted that the car dealerships are the only ones with the legal mandate to complete all the requirements so one should make sure that no other third parties comes in.

Article 8- Can a car dealership refund car parts

There are times when one has purchased second hand car, and not long after using the vehicle, they experience some problems with it. For example if you bought a car around two weeks ago and its tires got worn out such that you cannot use them anymore, then one should not assume that they can get the car dealership to do something about it. The thing is the purchase of a used car is a risk on its own. So it is essential for one to make sure that all the parts are in perfect condition otherwise it will be up to that given person to finance the payments of purchasing the new tire or any other repairs that may come with the tire. However, one may sometimes get lucky and find a car dealership that will take responsibility especially if the vehicle in question has flaws that were made a short while after purchase. (Bellows, 2006)

Article 9 - which option is better trade- in’s or auto finances

If one has an old car that they purchased through auto finance and they would like a new car, it is a better idea to wait until one has finished paying of all the amounts owed to the given Company. Most people would rather trade in their old vehicle and then the rest of his payment owed to the bank will be left to the car dealership. This choice is not a very wise decision because of the following reasons. First of all, it leaves a lot of room for all sorts of scams and cons. This is normally because some car dealers may not notify all due parties about the transactions made. Secondly, selling the car yourself will always get you a better deal. This is because you will only settle for what is comfortable with you. When you are seller, you are at a better standing than when you are a buyer as the case would be for someone who is doing a trade in. Besides that, it is always better to deal with one loan before jumping into another when the other one is still left accrued. (Lorio, 2007)

Article 10-how to negotiate

The first thing you need to do before you go to a car lot is do loads and loads of research. Make sure that you find out everything about the car you want to purchase. This means that you should know the model you want, the color and most important the price you will pay for it. Remember that it is not a rough idea of the price but the exact price you will pay for it. If undecided, check out all the prices on offer at websites, car magazines and the like. Make sure that you know exactly what other additional payments car dealerships charge. These include taxes, inventories etc. Do not wait until you are at the car dealership with your check in hand before you find out the prices of these offers. (Saleman, 2007)

On top of that, it is crucial that you understand the psychology of a car salesman. Make sure that they do not have an undue advantage over you. This normally occurs when any of the following things occur. First of all, most customers make the biggest blunders when they feel that they are need to make the purchase as soon as possible. Choose a day in the week when few people are buying cars like say on a Tuesday. Saturdays are definite no because the salesroom will be packed and there will be no salesman to attend to you. This means that you will run out of patience when they finally get to you and you will be too tired to bargain. It is also crucial to make sure that you go over all the nifty gritty details with the salesmen at the car dealership. Most people may simply want to get- it-over with and this could be the point at which the car dealership takes advantage of you. Most car dealerships claim that the highest sales made are the ones where someone felt like they had a sense of urgency. (Saleman, 2007)

There are some things that you should do to create an impression within the first ten minutes of your encounter with the salesman at the car dealership. First of all, you should already know everything about the car you are looking for that is its features what kind of engine it has and many other futures. But let the salesman do his job. If you act too eager, he may be tempted to think you read desperate and may inflate prices. But also do not look awed by the car. This will normally be revealed by uttering words like ‘oh my god’. It is essential to remain calm because the work of a salesman is to read his customer and place him in a category. Ask some questions about the vehicle and other models but stick to what you came for. The problem with trying out other models is that you may not know their price ranges, charges for extra installations, fuel consumption rates etc. These may spell doom for you in the end because you will purchase something you had not planned for. Next, go for a test drive and, make sure that you check on all the details of the car. After the test drive, you may want to start talking about payments; this may be through a trade-in (a bad idea) or other auto payments. The first ten minutes will go along way in making sure that you are on the right track to purchasing your dream car. (Saleman, 2007)

Conclusion

Buying a car is an investment. This is something that should not be done abruptly or on impulse. Make sure that you do your homework thoroughly and this will place you at an advantage when you go to the dealership. It is important to ensure that al the aspects are counterchecked; from the form of auto finance charges by the dealership, makes or models available and all other necessary items. This will ensure a good deal. (Lorio, 2007)

Reference

Dauglaus Hondo (2007): Getting a good loan for your car; retrieved from http://www.modernautoloans.com accessed on 8th February 2008

Gary Hoffman (2007): Car dealership Tactics; retrieved from http://autos.aol.com

accessed on 8th February 2008

David Bellows (2006): Confessions of sales man, a journal on cars for 2006 (2nd March)

Luis Aguirre (2007): Government Car Auctions; retrieved from http://EzineArticles.com/?expert=Luis_Aguirr accessed on 8th February 2008

Richard Serge (2007): A car dealership scam to avoid; retrieved from http://EzineArticles.com/?expert=Richard_Serg accessed on 8th February 2008

Law Guru (2007): Bill of Sale Car; retrieved from http://www.lawguru.co accessed on 8th February 2008

Tony Lorio (2007): Inside Car Buying Tips; retrieved from http://www.insidercarsecrets.com accessed on 8th February 2008

Tony Lorio (2007): Some information about car dealership fees; retrieved from http://www.car-loan-quotecom accessed on 8th February 2008

Lawrence Saleman (2007): How to save money at a car dealership from an ex-salesman; retrieved from http://www.salberg.org accessed on 8th February 2008

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