Businesses could be putting their sustainability goals at risk if they do not handle electric vehicles (EV) adoption carefully, warns Volkswagen Financial Services (VWFS) Fleet.

Fleet adoption of EVs is continuing at pace – with 67% of all battery electric car sales in 2022 purchased by fleets and businesses. Despite this, employers need to be wary of EV-only policies to reduce emissions before drivers are on board, as they could have the opposite effect.

Many drivers are still unsure of the new technology, as well as having concerns about range and charging anxiety.

David Watts, Fleet Product Manager for Electric Vehicles at VWFS Fleet commented: “Although the transition to EVs is a future inevitability, for many fleets, this is still a work in progress. If employers push EVs too quickly, without a clear and effective driver adoption strategy and policies in place it can have a number of unintended adverse sustainability consequences.

“Of course, the intention behind switching to an EV-only car policy is well-meaning. However, there will be drivers who don’t want an EV or who might feel it’s too difficult to live with. And if employees feel pushed into having an EV before they’re ready, and there’s a cash allowance alternative in place, there’s a chance they’ll opt out of the EV scheme and choose this instead.

“This is obviously concerning, as employers have less control over the vehicles employees choose under a cash allowance scheme, and the average vehicle selected will typically be significantly older and more polluting than those offered under company car schemes. A lot of that is down to cost.

“What this means is that while an EV-only car scheme on paper looks great for reducing a business’ Scope 1 (direct) emissions, employers are likely to actually see an increase in Scope 2 & 3 (indirect) emissions instead. The net result will actually likely see businesses worse off from a sustainability perspective than if they’d allowed people to access an ICE through the company car scheme in the first place.”

Incentivising vs. enforcing – the route to reduced emissions

Instead of pushing for EV-only company cars at this stage, David suggests there are a number of alternative strategies that employers can adopt to reduce all emissions (beyond just Scope 1) more effectively.

“Importantly, resolving this issue isn’t just about removing the cash allowance benefit, as this can have a number of adverse effects on employee engagement. Instead, employers should look at how they can add an element of control to the vehicles they allow to be driven for business purposes. For example, this may include tightening up the criteria of vehicles that employees can claim mileage on by introducing a maximum age and maximum emissions”, he said.

“Ultimately, though, getting EV adoption right is all about driver engagement. Employers need to be proactive about this by gathering feedback from employees, conducting surveys and educating drivers on EVs and the reality of living with them. They also need to openly communicate the benefits of EVs and take the time to carefully dispel the myths surrounding them”, he added.

David concluded: “Once you have driver buy-in, you can begin to increase EV uptake through company car schemes, without risking an increase in the uptake of cash allowance schemes,” concludes David. VWFS Fleet has a number of tools to help businesses and drivers make the switch to electric vehicles.”

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Jennifer has a background of over 15 years working in the financial services industry. Prior to joining Mainstreet, she worked 13 years for a wealth management firm helping to develop, create, and implement financial planning strategies for clients. Before that, she was a consultant and educator in the area of financial related employee benefits for SF bay area companies and their employees.

When it comes to mortgage financing, Fannie Mae and Freddie Mac are two prominent names that often come up. While both entities play a crucial role in the housing market, they differ in various aspects, including their policies on the use of stock options as an additional income source.

Freddie Mac’s Approach

Freddie Mac recognizes the value of stock options and allows the use of Restricted Stock (RS) or Restricted Stock Units (RSU) as another form of income. These stock options are often offered by employers in lieu of traditional bonuses or commissions. However, to consider this income source, Freddie Mac requires a two-year history of receipt.

Income Calculation

To calculate the income from RS or RSU given as performance-based vesting, Freddie Mac follows a specific formula. First, they multiply the 52-week average of the stock as of the application date by the total number of shares received over the past two years (pre-tax). Then, this amount is divided by 24 months to determine the monthly income.

Fannie Mae’s Approach

In contrast to Freddie Mac, Fannie Mae’s guidelines do not address the use of stock options as an income source. Fannie Mae does not consider RS or RSU as an option when calculating income for mortgage financing purposes. Therefore, individuals relying solely on stock options may face limitations when seeking mortgage approval through Fannie Mae.

Understanding the differences between Fannie Mae and Freddie Mac is crucial for individuals navigating the mortgage financing process. While Freddie Mac allows the use of RS and RSU as an additional income source, Fannie Mae does not consider stock options in their income calculations. It is important for borrowers to be aware of these distinctions and choose the financing option that aligns with their specific circumstances.

As a mortgage broker that deals directly with lenders that utilize Fannie Mae and Freddie Mac, we can structure loans that would fit a favorable option for our borrowers. Contact us for more information about how we calculate income.

Yes, buying a new car is stressful. Even more so if you’re a woman.

As if the process wasn’t intimidating enough. I get it, trust me. And that’s why you have to walk into that car dealer prepared and armed with the right knowledge. Keep reading, we’ve got the car buying checklist you need. You’ve got this, girl!

Related: Wonder how car dealers make their money?

Simple and to the Point

Aside from buying a home, buying a car is one of life’s major purchases. But let’s keep it simple and to the point, as we like it. Being equipped with the right information will make you a smarter and happier shopper.

Related: Yes, You Can Buy A Car At Costco, And Here’s How to Get the Best Deal

Yes, Ma’am. You Can Do This

This first step to buying a car is to realize that you don’t need anyone’s help to make this happen. You’ve probably been buying stuff all your life. You might even consider yourself an A+ shopper. Don’t make this different just because the thing you’re buying has four wheels and a motor.

I’ve planned my visit to a car dealership around a guy’s availability. As a single woman, I was afraid to go into a car dealership without “some guy who knew about cars” because everyone knows car salesmen take advantage of us poor damsels who don’t understand words like torque and suspension.

I’ve stood by and watched a car salesman only make eye contact with my coworker’s husband as the two of them had a conversation about what features needed to be the car I was buying with my money that I earned.

I’m not in that place any longer and you don’t want to be in that place. You can do this. Keep reading.

Plan Your Car Buying Before it Comes Urgent

Sometimes, life has a way of interfering with these plans but try to put yourself in the position where you are proactive in your car buying versus reactive.

We recently traded in our 2003 Hyundai Santa Fe for a new model. Our 2003 was a great car and it served us well for a lot of years. However, during the last five years of ownership, it began to have problems and the minor repairs to keep it on the road started to add up.

My husband and I agreed to make one last repair and start car shopping. Since we were not in a situation where we needed transportation, this eliminated the “gotta buy it now or else” mentality that had driven our first few car purchases as a couple.

Related: Why Your Car Shopping Should Be Done at an Auto Show

Check Your Credit Score

Even if you’re going into car buying with the “I don’t have good credit and I know I’m going to have to suck up some less-than-desirable financing terms,” still check your credit score especially if you’re going to use dealer financing. The “Oh gee, I’m not sure exactly what my credit score is…oh, is that 580 score bad?” line is going to make you look like you don’t know what you’re doing and you’re setting yourself up to get taken advantage of all around.

Even if it’s ugly, know that credit score and clear off any inaccuracies before you begin your car buying journey in earnest.

Determine your Budget

How much can you spend on a car? It’s best to have an overall dollar amount in mind as well as what ballpark you want your car payment to be each month.

When determining your car buying budget, have a range of spend in mind. This will give you more flexibility and buying power when you’re deciding what to buy.

Related: How to Negotiate a New Car Deal: 10 Ways to Tip the Odds in Your Favor

Go to an Auto Show

I personally think every female consumer needs to go to an auto show at least once every two to three years. If you do this, you’ll have an idea of what is out there, how much costs and what features are available on the new models. Plus, you can browse all the cars you want without the pressure of a car salesperson.

An auto show will give you the opportunity to look, touch, and sit in the cars. You can ask questions of the brand reps present on the show floor who are NOT trying to sell you a car. This is a great place to learn and the price of admission to an auto show pays for itself when it comes to the car buying know how you’ll gain.

Do. Your. Homework.

Research different models and see how they rack and stack with the features that are important to you. Do you need third-row seating? Is off-road capability important to you? Are you going to travel in this car? Is storage space something you need a lot of?

If you know you want a mid-size SUV, research mid-size SUVs across the different auto brands. What’s the big difference between the Hyundai Santa Fe and the Toyota Highlander? Pricing is going to be a big determining factor but compares the list of features across the brands. Get an idea of what’s available and what is a “gotta have it” for you.

Three Little Words: Vehicle History Report

If you are buying a used car, make sure you get (and read!) the vehicle history report. This is exactly what it sounds like. Think of it as a background check for your car.

The vehicle history report will give you information such as title history – how many times it has changed owners and whether it has been in any accidents. You can also get information on what the odometer reading should be and information on the car’s maintenance history. Your car dealership or lender should provide this. If not, you can order them on your own from sites like Carfax or AutoCheck.

Know What You Want

It’s OK to have an answer like “the car has to look good.” Obviously, there’s got to be more to the answer but it’s OK to want to love the way your car looks or even to have a car of a certain color. A car is something you use daily and you want to be happy when you look at it and not think something like “Ugh, that gawd awful brown” every time go get in your car to go to work.

Seasonal things or lifestyle things might factor in. A buyer living in Texas might place importance on a separate rear seat vent (because boy does it ever get hot here) and a buyer living up North might want heated seats Wnd mirrors.

Know what is important to you and know what models have those features. Yes, this level of research takes time but it will pay off in the end.

Get Financing Pre-approval

Having financing locked in will make you a more empowered car buyer. Talk to your bank, credit union or an auto finance company program Capital One. That said, don’t rule out dealer financing. Sometimes, they have better incentives than what your bank or credit union will offer.

Compare Car Ratings

Compare safety ratings and prices across different models. Compare things like maintenance costs and how much it costs to replace tires. Consumer Reports is a great tool.

But, don’t discount the super-scientific method of Facebook polling. Once you’ve decided what you’re interested in, ask your Facebook circle. You’ll get a ton of information and opinions to consider.

Know What You Want When You Walk Into a Dealership

Before you set one foot into a car dealership, know what you want and how much you want to pay. We went into a Hyundai dealership to buy a certain model – which we’d thoroughly researched and agreed on.

Then we saw the 2020 Iron Man Edition Kona. It was completely impractical for us in all ways. It didn’t have enough room and it had specialized custom paint that required hand washing. But, it was COOL and we love anything Marvel! It temporarily swayed us because of the cool factor. Fortunately, we stayed our course.

https://www.instagram.com/p/BxXGtChHYVs/

I’m not saying you can’t change your mind. But if you go into a car dealership not knowing what you want, you’re not going to make the best purchase. And, if you get distracted by something like “OMG I didn’t know I needed THAT but now that I’ve seen it, I NEED it” go back to square one. Leave the dealership and crunch the numbers and do the research. Then go back, armed with info.

Know the Value Your Trade-In

Again, this is going to require a little bit of research on your park. Knowing the Kelley Blue Book or NADA value of your car is a great starting point. Walk into the dealer with a solid idea of what you expect to get for your trade-in.

Also, consider selling your old car outright. If you think you can make a better deal for yourself by handling that part of the transaction independently of your new car purchase, why not? Just be sure to factor in any costs associated with being without a car for a short period of time. If you’re a two car household and you can suck it up for a couple of weeks and save a few hundred dollars, consider it.

Shut Up and Drive

Do a proper test drive. Don’t let the dealer dictate what you want in a test drive.

Want to test your prospective car’s limits on the highway? Do it. In town driving? Take your time.

The bottom line, this is your prospective new car. Don’t consider whether or not you’re wasting the car dealer rep’s time. Do your very best to simulate how you’re going to use your new car on a test drive.

Don’t Be Afraid to Walk Out

A car dealership isn’t doing you any favors by selling you a car or giving you a good deal on a car. A really great sales person might give the illusion that they’re doing you a solid or putting themselves into an undesirable position by giving you such a great deal and…well, that is their job.

There are other car dealerships and the deal and the car you’ve got your eye on isn’t the only game in town. If at any point in the negotiations or car buying process you think things aren’t swinging in your favor or in your best interest, don’t be afraid to leave and go somewhere else. Or to leave and think things over. Of course, the dealership is going to do everything in their power to convince you not to leave before committing to a purchase. Again, that is their job and only you are operating with your best interest in mind.

We had an advertised “Zero percent financing” turn into “Oh, but not for that model” once we were down to the final details of dealer financing. We have nearly perfect credit and we’d chosen that dealership because of their heavy advertisement of zero percent financing. We walked.

Consider Alternates to Car Dealerships

I’ve had many friends recommend Carmax, Carvana or buying a car through Costco. I don’t have personal experience with these car-buying venues. Consider checking these options out but, of course, do your research.

The Most Important Item on Your Car Buying Checklist: Never Forget Who’s in Charge

YOU are! It’s your money and your time. You’re not required to be on anyone else’s timetable except your own.

You get to not only ask the questions but you get to demand the answers. If you need to take a day or a week to consider whether this is the right purchase or the right way to proceed for you, don’t let anyone else pressure you into going at a different speed.

Remember, there are lots of cars out there. Take the time and find the one that is right for you.

Does Car Buying Still Stress You Out?

Think of car buying like any other big project. Be methodical about it and thoroughly follow all the steps in this car buying checklist. Taking the time to thoroughly research and consider all your options and not being in a hurry to make a purchase are big keys to your car buying success.

You got this!