27 Jan How Selling Your Structured Settlement Can Help You Pay for a New Car
A structured settlement is essentially an annuity awarded to an individual, usually from the result of a legal case. A civil lawsuit, on the job injury, or some other type of insurance claim are some common sources for these settlements. Regardless of where the money came from, a structured settlement can be very lucrative. In fact, the average structured settlement payout is about $324,000.
What can you buy with the funds from a structured settlement?
Over $6 million is paid each year to fund new structured settlements, and even if yours is worth much less than average, it should still leave you with enough money to invest in one of life’s greatest assets: a new car.
How much does a vehicle cost?
On average, U.S. households are strapped with approximately $26,530 worth of car loan debt. That’s not surprising, however, considering the estimated average transaction for a new car or truck in April of 2015 sold in the U.S. was about $33,560, according to Kelley Blue Book data.
Even buying used, a long-time strategy of the thrifty, doesn’t hold the same value it once did. According to a report from automotive site Edmunds.com, the average price for a used car in 2014 was a record $16,800.
So why sell your annuity payments to get a car?
If you don’t have the cash up front, you’ll have to settle for an inefficient payment plan that will likely see you pay out much more for the car than it’s even worth. According to Experian Automotive’s new State of the Automotive Finance Market, the average monthly payment for a new vehicle in the Second Quarter of 2015 was $483.
Selling long-term payments for immediate cash is a great way to maximize the dollars you have available and raise your standard of living. Keep in mind that while some will tout the security of an annuity, 92% of claimants that sell their structured settlements are satisfied with their decision.