Although your initial cost would be cheap, you will realize later on when its time to dispose the vehicle that you can’t sell the car at a very good price. If your planning to get a lease on a car, one important aspect to consider is its residual value. Choosing a car with a high residual value would have its ups and downs, one advantage is that it comes with lower monthly payments.

Cars with a low residual value also have there advantages, most of the cars with low residual value are very inexpensive. If your also looking to purchase a used car, look for cars with very low residual value these brands would be a good bargain.Residual value percentages are based on the national True Market Value (TMV®) price, plus typical options and destination charge.

1. 2006 Kia Rio — 20.7%
2. 2006 Hyundai Accent — 23.0%
3. 2006 Kia Spectra — 24.0%
4. 2006 Dodge Stratus — 26.0%
5. 2006 Hyundai Elantra — 26.3%
6. 2006 Ford Taurus — 26.5%
7. 2006 Kia Optima — 27.4%
8. 2006 Suzuki Reno — 28.6%
9. 2006 Ford Crown Victoria — 28.7%
10. 2006 Suzuki Forenza — 29.2%

A person may opt to include a fully maintained lease offer in order for him to have peace of mind and financial security. The cost for the routine servicing and maintenance is incorporated in the monthly payments. It is important to know, in case you opt for maintaining the car yourself, that any replacements of parts in the car should only use manufacturers parts and not “aftermarket” parts. In case the repairs are not done properly, the lease company would charge you at the time the vehicle is returned to them.

In a maintained lease offer all the servicing, tires, brakes, and exhausts are covered with no additional cost. If ever you go beyond your mileage allowance the per mile penalty will also incorporate maintenance. In this way you would not have any unexpected cost over the duration of the lease. This type of package is very beneficial to users with a very high mileage usage, typically ranging from 20 – 30k per annum.

While low mileage users should also consider non-maintained contracts on their own financial merit. Due to the recent change in European Law about Block exemption, giving you the right to take your vehicle anywhere for servicing provided the servicing garages uses OEM parts and adheres to the manufacturers servicing schedules. This factor greatly affects the lower mileage user as dealership prices are higher compared to small or local garages.

Before deciding whether to include the maintenance in your lease offer, you should always evaluate the money saved if you opt to maintain the vehicle yourself, to the peace of mind you’ll have on a fully maintained contract. Users with a high mileage would find the maintained contract more interesting due to convenience, while users with low mileage would notice the benefit more on maintaining the car themselves and save some money in the process.

In deciding which to choose you must always consider your preference in a lot of advantages and disadvantages. It is often difficult to have everything that you want in a single package, it is best to choose the option which offers most of your choices.

The first that you must decide is whether ownership of the car is important to you or low up-front costs with no down payment. If you are a person who is sentimental about your car and are planning to keep it as a collection, then buying a car is probably your best option, but if having a new vehicle every two years without the risk of any major repairs is more important to you then you should probably go for leasing.

Factors to consider in buying a vehicle:

• You pay for the entire price of a vehicle, regardless of how often you use it.
• A down payment is usually paid when you purchase a vehicle
• Sales taxes
• Interest rates are determined by your loan company based on your credit history.
• First payment is due a month after you sign the contract
• You have the responsibility in selling or trading your vehicle at a depreciated resale value if you decide to sell it later on.

Factors to consider in leasing a vehicle

• You only pay a portion of the vehicle’s cost, which is the part that you use up or the duration in which you were driving it.
• Down payment is an option
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• Sales tax is on your monthly payments
• You pay a financial rate or money factor, which is similar to the interest on a loan.
• Pay fees such as a security deposit
• First payment is at the time you sign your contract for the month ahead
• At the end of the lease you have the option to return the vehicle or purchase it for its depreciated resale value.

These are the factors you should consider in order for you to decide which best fits your requirements.

Just like new car leasing, you also have to focus on the price as well as the initial market and estimated residual values of the second hand car. This is certainly a difficult task to estimate as there is no set price on used vehicles. In the case of residual percentages, it is pegged to the retail value that is current in the market.

What you have to do is take advantage various sources in order to arrive at the approximate value of the used car using different sources to get a rough concept of the value of the used car. Such source can be the local dealer, the online tools for car evaluation, just to name a few. You can also try getting an estimate by comparing the lease on your vehicle to that of a brand new one. When visiting the dealer, always bring a family mechinic when choosing the car, at least you can thoroughly inspect the condition of the car.

This will certainly provide you with a good view of the difference between brand new auto and used car leasing. Used car leasing is better over new car leasing when the residual value has little depreciation. You likewise have a good chance of getting a bargain on luxury cars that have higher values as used vehicles.

Car Lease Scam 1: The dealer offers to take your current car as a trade in, pay off your loan balance on that vehicle (no matter how much it is) and lease you a better car than the one you have for lower payments.

Although the dealer will pay off your old loan as agreed, he will then credit the value of the trade-in against the price of the new car then add on the rest of the loan balance you owed to the price of the new car you’re about to lease.  The payments won’t change for the reason that you’re leasing and not buying, so the amount will look lower than what you’d have expected, nevertheless the deal is far worse.

Car Lease Scam 2: The dealer offers to pay your remaining lease payments on your existing car lease in exchange for a new lease from them. 

Don’t ever assume that the car dealer is taking over the responsibility of car lease payments. What they’re really doing is just taking over the rest of the payments and when completed, will return the car to the company that originally leased it to you. Depending on the terms of your lease, if there’s any problem with the car, such as excess mileage, scratches and among others, the leasing company won’t send the bill to the dealer; they’ll send it to you. Additionally, if the dealer doesn’t pay the remaining payments, or doesn’t return the car, the leasing company will come after you, not the dealer. Lastly, the dealer won’t really be making those payments anyway, since they have found a way of adding the price of the remaining payments back into the total price of your new car.

Car Lease Scam 3: The dealer will try to convince you that all leased cars must have extended warranties, maintenance contracts, paint protection, rust proofing and window etching.

Gap insurance covers the gap between what you owe on a car and what it’s worth if you happened to total your car in a covered losses such as accident or theft. The types of losses covered and the extent of the coverage may vary according to the insurance company, so make sure that you clarify what’s covered before availing the gap insurance.

For car leasing, gap insurance is a must, especially for the no-down payment leased cars. As much as the car lease insurance is important this, however, does not cover a major gap that is in  every leased vehicle. The necessity of the gap can occur is you totaled your leased car in an accident. How it works? Read further below.

Your leasing insurance will cover the depreciated market value at the time of the collision.  Usually, the car lease payments are lower when compared to buying one. Since all new cars depreciate the most in first few years, the market value  of the leased vehicle is lower between what is still owed on the car lease contract.  But, you are still responsible for that difference in what the insurance company will pay and what is still owed on the lease… that amount or “gap” is what gap insurance covers.

• Carry your car lease insurance company’s comprehensive and collision coverage in order for the gap insurance to pay out.
• Check to see if your car lease down payment is covered in the gap insurance.
• Be aware of what your deductibles are on your car lease insurance, since gap insurance does not cover your car lease insurance deductible.
• Even if you car lease has already begun, you can still get a gap insurance
• Remember that gap insurance is only applicable if you have religiously conformed to the terms stated in car lease contract.
• Take note that until the gap insurance pays for you for the loss, you may have to continue making car lease payments.
• Gap insurance and wear and tear insurance are two different things

1. Go to your favorite car dealer and start the negotiation with a sales rep with the purchase price of the car then the monthly payment. Go and visit some reliable websites and find out about new car pricing and Manufacturer’s Suggested Retail Price, or MSRP. Find some information regarding capitalized cost and invoice price so that you’d be well equipped during the negotiation. To set your bracket for the lowest Capitalized Cost possible, upon negotiation keep the residual value high since it has a direct effect of lowering your monthly payment, money factor must equal the interest rate, and lastly choose the lease term that works to your benefit.
The internet is a poweful medium, it comes highly recommended that you take full advantage of it. Try emailing the online fleet manager of your favorite dealerships. Tell them about the car you are eying at, wait for their proposed quotes, and then compare their proposals against each other.   Pick the dealership you would like to proceed forward and start the negotiation. Generally, the price quote from the internet fleet manager are more competitive which should get us a better place to start the negotiation.
2. The Sunday paper usually presents several ads on car lease specials, so be sure to grab of a copy. Most of the deals are only valid for a short period of time and supplies are limited. However, if you present a copy of a lease ad to a competing dealer, they would most likely be forced to match the advertiser’s price.
3. Use websites and advertisements that claim to offer the best car lease programs. They ask car lease shoppers for personal information so they can provide further info of the lease deals.
4. Use websites which allow car shoppers to compare available car lease deals in terms of monthly payment, down payment, and lease length for their favorite vehicle. This saves time for the car shoppers who don’t want to deal with all the technical terms of car leasing negotiation and just want to proceed with the monthly payment that they feel the most comfortable with.

Many more luxury cars are leased each year compared with non luxury cars. This means that there is a lot of high quality inventory from which buyers of used luxury vehicles can choose. Because those who lease vehicles are required to pay dearly for any damage or extra miles they put on the car during the lease period, used luxury vehicles that were previously leased are a more likely to be in better condition than just any non-leased vehicle on a car lot.

Because of the higher quality of their construction, a used luxury car already requires fewer repairs over time than many non-luxury vehicles. Used luxury vehicles that are well taken car of by their previous driver require even fewer repairs. Finding a previously leased vehicle is a good way to stack the odds of this in your favor.

You’ve probably done some online research about the vehicle you intend to buy, but are you looking in the right places? A lot of the information available about autos is based on initial review when the vehicle was first introduced-before it was put through real world testing by real world people.

Buying used luxury cars gives you and advantage over the new car buyer because you don’t have to guess how a model will perform. You can access lots of actual performance data on any vehicle by searching in the right places. Before you buy, seek out customer reviews and recall reports for vehicles you’re considering. Choosing a used luxury car with minimal complaints and no major reported recalls can save you a great deal of money down the road.

Getting a great deal when buying used requires a different way of thinking than when buying new. When buying a new luxury auto, you may decide on the Lexus RX330 and then shop around at various auto dealerships for the best price. No matter where you go, you’ll get the same vehicle. One dealership may have free water while another has free coffee, but in the end, the car you buy will be identical.

On the other hand, not all used luxury vehicles are the same. Some have more mileage; some have been better cared for than others have, etc. Deciding where to purchase a used luxury vehicle based on price alone isn’t always the best idea. When buying used, it is the standards of the dealership that decide which used luxury vehicles will make it onto their lots and which don’t make the cut. It’s critical to look for a reputable dealership with high standards and even perhaps wait a few weeks for them to locate your ideal used car, rather than to find the cheapest Lexus RX330 online and buy it from a dealership that isn’t reputable.

So start dreaming! Do the math and you may find that buying a used luxury car is more cost effective than buying a new non-luxury car. On average, used luxury vehicles are selling today for about 50% of their new sticker value, down from 65% last year. If you’ve been waiting for the right time to get into a Lexus RX330, an Audi A4, or any type of luxury car, now is an ideal time to buy.

Some people dislike car leasing because of the idea that they are making monthly payments for years and having nothing to call their own at the end of the lease term. However, in certain cases, car leasing can be more practical and inexpensive as opposed to buying. Most people prefer car leasing since it allows them to drive a better car that they normally can’t afford to buy.

Below are some questions you’ll need to ask yourself before deciding as to whether car leasing or buying suits you best.

• Will you be using the car for business or personal purposes? Leasing typically will give you a larger tax deduction than the maximum depreciation deduction on a purchase.
• What will be the proposed monthly payment for a car lease vs. a loan? Is the dealer offering low interest financing? If you qualify for a zero percent or low rate loan, buying might be cheaper.
• Do you have cash for a down payment and/or the full purchase price? How much? Leases typically require low down payments; both loan and lease payments will be lower if you make a larger down payment.
• What rate of return could you earn on those assets? This is the opportunity cost of paying cash for your car. If the loan or lease interest rate is higher than your projected investment return, and if you have the cash available, buying outright might be preferable.
• What is your credit rating? You might think a poor credit rating would hurt you equally whether you lease or buy, but you’d be wrong. Because the lender assumes a greater risk for a lease than a loan, a poor credit rating might force you into a higher loan rate, but it might also mean you can’t qualify for a lease at all.
• What is your usual annual mileage? Car leases are typically calculated for a maximum of 10,000 or 15,000 miles per year. If you exceed the limit, you will have to pay an excess mileage charge, which might cancel out any financial advantage the lease may have. It is possible to build additional miles into the lease, but your monthly cost will be higher.
• How well do you maintain your vehicles? Lease agreements require you to adhere to service requirements. Also, if you return a leased vehicle in poor condition, you will be charged for an excess wear and tear.
• How long do you usually keep your cars? If you like to replace them every few years, a lease might be the better choice. If you keep your cars for several years until they fall apart, a purchase will be your best choice.
• What is the lease factor to calculate your lease payment? With a lease, you are paying for only the depreciation on your chosen vehicle. The residual value of the car is subtracted from the purchase price, and the difference is multiplied by an interest rate factor to arrive at the monthly lease payment. To determine whether the payment is more economical than a car loan, multiply the lease factor by 2400 and compare the result against a comparable auto loan to determine whether the rate is reasonable.

New couples won’t need to spend any money trying to get rid of their two-seater Honda Accord. Since car leasing has a usual term of two to three years, newly married couples can use this as their transition period to help them embrace parenthood better. Once the lease ends, they can easily start a new one and then drive out from the car dealer’s office in a family SUV. When the eldest is old enough to drive, the parents can first pick a sedan and three years later switch to a brand new convertible since for most teens fitting in is a big thing. In this day and age, with all the new gadgets and technology flashing in your TV screen, keeping your teens happy is not a small matter. Without the flexibility of car leasing, families with more than one teenager would potentially be buying a lot of cars, as well as trying to sell them or trade them in at the end of their useful lives (the cars of course, not your teens). Car leasing keeps your style conscious teens happy while keeping your budget intact.

All the reputable auto leasing companies are well aware of family dynamics, and they can help you figure out your best car leasing stratagem whatever the situation is. You may just be surprised at how convenient and affordable it can work out.

1. Shop around. For every dealer and manufacturer is a different car lease rate that can be negotiated to fit accommodate your needs.
2. Always read the fine print. Make sure to orient yourself ahead of time about all the hidden charges associated with your car lease, i.e, security deposit, registration fees, and lease-end services fees. A “Special” deal won’t be as special if from the low monthly payment of $199, you’d be paying twice the amount for the “partially declared” charges.
3. Lay down a closed-end lease. If at the end of the lease, the value of the car is less than the residual value, the lessor will owe the lessee the difference. However if the actual value is more, then the lessee has the option to buy the car for the fixed residual value or pay the lessor the difference instead.
4. Canvas for insurance rates for the kind of coverage required by the lessor. The car lease agreement may require higher liability limits and lower deductibles than you currently carry, and both will increase your insurance premium.
5. Choose cars to lease that tend to hold their value well. The sexiest cars are not always the best buys in the world of leasing.
6. Negotiate the price of the vehicle before moving to car lease negotiation. Before discussing the car lease details, make sure to have set the car’s selling price first hand. Doing so will prevent the vehicle’s selling price from influencing the lease negotiation.
7. Increase the mileage limit before you enter into the lease, if you feel that you’ll surely exceed it. Buying an additional mileage over the term of the lease is less expensive than paying for the excess at the end.
8. To avoid lease-end wear and tear charges, maintain the car well during the lease period. Make sure to regularly have the leased car tuned-up. Lessors will not think twice in charging the lessee for perceived poor treatment.
9. Remember that if a lessee decides to purchase the vehicle at the end of the lease, in the long run car leasing may end up being more expensive than a loan.

Car rental basically answers only short term or temporary auto needs such people who are currently in a business trip or those who are  in a holiday vacation.

Cars for rent are wholly owned by the rental company. The auto rental company, handles the maintenance and repair, and also carries the basic insurance. Customers, in turn, agree not to damage the car, to buy the gas, to purchase an additional insurance if necessary, and to return the car within the agreed time.

Car rental rates can vary widely since this can be based on a daily or weekly fee which can have an unlimited mileage or not (additional mileage is an additional cost).   Same cars are rented over and over again unlike car leasing wherein the car needs to be disposed.

Unlike car renting, car leasing is actually another form of financing. A car leasing company only gets involved once the customer decides that he wants to finance his next car via leasing. The car leasing company then buys the car from the car dealer at the price agreed (with the client) and then loans it back to the customer which in this case is the car.

Since the lease company has invested money in the vehicle, due interests will be paid by the lessee.  The leasing company also expects to be paid for the residual value of the car as the lessee makes use of it. When the lease ends, vehicles are returned to the company although the lessee has a purchase option at the end of the term.

• Leasing is a form of financing and renting is not.
• Lease terms begin at 24 months while renting can be a day or two.
• A customer’s credit report is important in order to acquire a lease while in renting it isn’t.
• Leasing appears on your credit report just like a loan and renting doesn’t. If there are any default in payments, this will appear in your credit score.
• In rental, your choice of vehicles is only available from the auto selection of the rent-a-car companies, while in leasing you can pick the car your heart desires.
• Ending the rental early is fairly easy by just returning the car. Ending a car lease, on the other hand can be pricey since there are several fees that a lessee must settle.
• Renting can come out more expensive than car leasing if the length of time is the same

At the very start of the lease, the lessee will have to pay a refundable security deposit which is typically equivalent to one monthly payment. The security deposit is paid as such to safeguard the car leasing company against non-payment and any incidental damage done to the car after the end of the lease. The lessee is also required to pay the acquisition fee, otherwise known as bank fee, this is an administrative fee charged by the car leasing company. This fee is not, usually, specified explicitly in the car lease contract but this is included in the Cap Cost when calculating for the monthly payments – so make sure to ask about it if you don’t see this mentioned.  There are other fees as well, such as fees for licenses, registration, title and any state or local taxes.

During the car lease, as a lessee, you are expected to honor your monthly dues; failure to do so will result in another fee in a form of late-payment charges. There are also financial obligations in the form of traffic tickets, emission and safety inspections and the ongoing maintenance costs. When the lessee at the mid-term of the lease feels he can’t deal it anymore and just wants to end the lease before the agreed term, he will then be charged with a “substantial” amount for early termination.

At the end of the lease, if you exceed the allowable mileage, expect to pay the “excess mileage charge” which can cost right about 10 to 20 a mile.  Incidental damages done to the car, and deemed to be beyond what’s identified as normal, will result in “excess tear-and-wear charges”. Finally, if you choose not to purchase the vehicle, then you have to pay a disposition fee.

However a high mileage user should not totally put off leasing completely because of the mileage restrictions. There are ways on how to maneuver a high mileage car leasing and this article will offer some tips.

1. Pulling some strings at the lease deal – If a car lessee intends to purchase the car at the end of the term, he can cunningly take out a low mileage car lease contract without worrying about the excess mileage charges accrued over the lease period. This way, the lessee can maximize his car usage while still paying monthly rentals over the period of the lease agreement.
2. Drive a Diesel – Diesels have vastly improved; now they are cleaner, quieter, and quicker. More importantly, diesel engines can give any driver a 30-40% more mileage than petrol cars. Diesels is really a great money-saver particularly for many short-run trips since the superior torque of diesels entails less gear changing. The price of diesels are about 30% cheaper than unleaded petrol which is certain to lessen the gas expenses. Just look beyond the lack in horsepower, higher initial cost and loud engine start during cold winter mornings; a diesel-engined car certainly suits a high mileage driver.
3. Lower Residual means lower purchase price – The main reason why in car leasing high mileage is such an issue is that it can inflict a bigger depreciation which in turn lowers the resale value of the car. There is an offset effect of low resale value  and that is a low purchase price. A favorable purchase price for the car can have such a positive effect on the deal that even high mileage drivers will benefit.
4. Turning it in Early – If at the mid of the car lease period, the lessee feels that he will certainly exceed his allowable mileage and doesn’t want to face the extra charges, he can always end the car lease term earlier or he can find someone to assume the lease for him (someone who is looking for a short-term car lease options). There are a lot of car dealers who specializes in car leasing assumptions.

To fully dissect what car leasing is, this article will discuss the common myths associated with car leasing that most people have fret over the past.

1. Buying is cheaper than leasing. Buying a new car has it’s advantages while opting to lease the car has its own set of vantage points. To buy a car or to lease a car depends primarily on the driver’s needs. There are at some point wherein buying can be a better option such as when the driver needs to drive more than the allotted 12,000 miles a year (in leasing – the gas mileage is limited).However if you loaned a car and then planned to trade it in before all of the loan is paid off, the value of the trade-in will unlikely cover the remaining balance of the loan.

   To help you decide, its good to lease when you’ll use the car for 2 to 3 years and annually consume less than 12,000 miles. However if you plan to keep the car longer than 3 years and know that you’d be consuming more gas mileage then buying can be the best thing.

2. It’s nearly impossible to negotiate a lease. As a matter of fact, leases are negotiable. But first you need a tour of the jargon so that you’d better understand the basics of negotiating a lease:

   Capitalized cost is basically the price of vehicle. You should haggle over this just as hard as you would if you were buying it.

   Money factor is also called lease factor or even a lease fee, this is the interest rate you are being charged. It is expressed as a multiplier that can be used to calculate your monthly payments. For example, 7.2% interest, when expressed as a money factor, is 0.0030. To convert a money factor to an interest rate, multiply it by 2,400. To convert an interest rate to a money factor, divide by 2,400. (Always use 2,400 regardless of the length of the loan.)

   The lower the number, the better. Car dealers are sometimes reluctant to share the money factor, so be persistent.

   Residual value. Finally, the residual value is the value of the vehicle at the end of the term. The higher the residual, the lower your monthly payments however it can manacle you.

    A more realistic residual value will make it easier to sell the lease, trade your vehicle mid lease or buy the vehicle at the end of the lease.

   Ask the dealer to show you several deals from various banks, focusing on the money factor and the residual value of the car lease.

3. Only businesses get a tax break. Tax laws allow businesses to deduct the monthly payments as an expense however individuals who used their leased car for business can deduct percentages of their lease payments, repair and insurance costs from their income taxes as well.
4. Turning in the leased car can dent a man’s wallet. In car leasing, once the driver exceeds the allotted gas mileage, he is charged a penalty fee for the excess around 18 to 21 cents per mile. However if you opt to buy a car, the car owner is also penalized for higher-than-average mileage when trading it in.

   To prevent from exceeding the allowed mileage, you can probably negotiate a higher limit in exchange for a higher monthly payment and still save money.

6. If you want out early, you’re stuck.You can actually terminate your car lease at an earlier date if you wish by transferring your existing car lease  to someone who can take it off your hands. There are a lot of websites online that match people who wants to get out of their lease early with those individuals seeking for short term car leases.

So you see leasing is not at all bad as others would purport it to be. If you, as a lessee, know what you want and negotiate smartly, car leasing can be a great deal.

]]> http://www.carleasingsecrets.com/car-leasing-myths/feed/ 0 http://www.carleasingsecrets.com/buying-your-leased-car/ http://www.carleasingsecrets.com/buying-your-leased-car/#comments Sun, 14 Dec 2008 15:08:44 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/12/buying-your-leased-car/ At the end of your lease, you might decide you want to buy your car and keep it. Below are several reasons that might influence the lessee’s decision to buy out the leased car.
• The buy-out price as agreed in the contract makes buying the car a great deal.
• You know the car’s mechanical history and you know how reliable the car is.
• You don’t want to embark on starting a new lease or shopping for a new car.
• You’ve exceeded the allowable mileage and want to avoid the penalty fees.
• There is excess depreciation (wear and tear) on the car and want to avoid extra fees.

The simplest way to buy your car is to check its residual value in the lease contract. If the present market value of the car is the same as the residual value, then this might be a good deal for you. 

Tips on Buying Out

Well the first step when you want to buy out your leased car is to contact the car leasing company and inform them that you want the buy-out amount of your lease vehicle. The buy-out is more or less different with the residual value since your security deposit is deducted.  If you want to buy-out your leased car even before the end of the term, the buy out amount will be for that date and not the end of the term.

Negotiating to lower down your buy-out amount is possible however you have to be dealing with the person who has authority to make a deal. Deliberate in your mind when on the negotiations you’d like to make, below are tips on how to arrived at your desired figure.

Assume that if the lease car is returned, the leasing company will have two options to dispose of the car:

1. Let a dealer put the car up for sale as a used car, or
2. Ship the car to an auction and accept the wholesale price.

If the car is shipped to an auction, the leasing company has to pay an auto transport company to move the vehicle, and accept whatever is bid for it.The amount will likely be below the residual value of the car which actually puts you in a good position to negotiate.

Call the car leasing company and make your offer. They will either give you their counter-offer or ignore you completely, nonetheless just leave your contact number and give them time to call back.

When you are finally negotiating with the car leasing company, don’t recount that you went over the allowable mileage or there is an excess wear and tear on the car. If they know this they might demand a higher price for it.

Allow several weeks to negotiate a buyout figure for your leased car however if the negotiations look it can take longer,  arrange for an extension of the lease.

At the end of the Day

Opting to buy your at the end of the lease is a win-win situation for you and the car leasing company. Just make sure that both you and the leasing company have reached a fair deal for the buyout and orient yourself with the other related fees before signing the deal.

]]> http://www.carleasingsecrets.com/buying-your-leased-car/feed/ 0 http://www.carleasingsecrets.com/short-term-car-leasing/ http://www.carleasingsecrets.com/short-term-car-leasing/#comments Sun, 07 Dec 2008 08:47:04 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/12/short-term-car-leasing/ There may be circumstances in life where you will need a vehicle for a certain period of time, and don’t want to get locked into a long-term payment. Depending on your situation, short-term car leasing may be the best and most affordable solution.

Long-term car rentals are often the proper step if you need to drive a vehicle for just a short period of time. Car rent term can quickly get expensive, even with long-term rental discounts. However, if you will only need the car for six months or less, then renting is probably your best option.

If you are looking to keep a vehicle for a longer period of time, let’s say 6-24 months, then short-term leasing should be something you should consider. Unfortunately, this is not usually possible if you are looking to lease a new car. Most new car leases are at least 24 months or longer, so going directly to the dealer for a new car lease will only be a choice if you can commit to something more permanent.

The best solution for a 6- to 24-month use is a short-term car lease. Short-term car lease actually lets you take over or assume a lease, on a used vehicle from another driver. You’ll take over the auto, the monthly payments, and the time that is left on the lease, which can usually be from a few months to 2-3 years.

Short-term leases are often great bargains. Unlike a new lease, you will not have to come up with any sort of down payment or additional fees; you will just take responsibility of the payments each month.You must familiarize yourself with the leasing contract and the condition of the car since, in most lease terms, if you exceed the allowable mileage, you are usually charged at the end of the term.

Assuming a lease, even for a short duration, does require completing and changing the existing lease contract through the leasing company. If you may need the vehicle relatively quick, like right now, make sure all the paperwork is complete before you take the vehicle, in order to avoid any trouble in the end.

The best place to find short-term car leasing is on the Internet. There are a handful of specialized companies that match buyers and leaseholders together, and help facilitate the transfer of the vehicle. By going through a third-party company, you will have to pay a small fee, but you will increase your chances of getting a good lease deal and having the transfer done properly.

Short-term leasing may be the most practical way to meet your driving needs, especially if your finances do not allow for a large down payment. If you are in a situation where you need to drive a vehicle for at least 6 up to 24 months tops, you will probably get a great deal going through a company that specializes in lease assumptions and transfers. You can find a lot of stuff online, and by doing some research, you should be able to find plenty of lease deals that will suit your needs.

]]> http://www.carleasingsecrets.com/short-term-car-leasing/feed/ 0 http://www.carleasingsecrets.com/getting-the-best-out-of-your-gas-mileage/ http://www.carleasingsecrets.com/getting-the-best-out-of-your-gas-mileage/#comments Sun, 30 Nov 2008 13:51:50 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/11/getting-the-best-out-of-your-gas-mileage/ Most lease contracts states the certain allowable number of miles for you to drive the car. Before jumping on that enticing car lease, it is advisable to have an approximate estimation of your car usage. You see, whenever you exceed the allowable mileage, you are usually charged for the excess when you return the car. To prevent this from happening, you have budget your allowable mileage in accordance with your car lease terms. This article will provide you tips on how to improve your gas mileage so that you in turn can get the best out of your car lease. 

Drive more efficiently. 

Aggressive driving (such as rapid acceleration, speeding and braking) only wastes your gas.  This can actually lower your gas mileage by 33 %  at highway speeds and by 5 % around town. Driving sensibly can also be safer for you and your passengers.

While each vehicle reaches its optimal fuel economy at a different speed (or range of speeds), gas mileage usually decreases rapidly at speeds above 60 mph.  So observe your speed limit, each 5 mph you drive over 60 mph is a $0.24 additional to your gas expenses.

Remove unnecessary items in your car that will only add non-essential excess weight that will actually  reduce your MPG by up to 2% if the weight is about 100 pounds. When traveling, don’t put every baggage on your roof rack since this will increase your aerodynamics drag and will will decrease your fuel economy by 5%.

Avoid excessive idling since this costs 0 miles per gallon. Also remember to use cruise control on the highway since this helps you maintain a constant speed and, usually, will save gas. When you use overdrive gearing, your car’s engine speed goes down. This not only saves you gas but it also reduces engine wear.

Always make sure that you regularly tune-up your car. Fixing a car that is noticeably out of shape  can improve its gas mileage by an average of 4 percent, though results will vary based on the kind of repair made and how well it is done. So make sure that you visit the mechanic regularly so that you’d avoid costly repairs and to maximize your car’s mileage.

When you have a certain allowable mileage in your car lease be sure to plan your trips.  Combine errands into one trip since this not only saves you gas but it will also save you time. Trip planning ensures that traveling is done when the engine is warmed-up and efficient. You can also commute every once in a while (car pool and ride-share programs), you not only cut your weekly fuel costs in half, it will also save wear on your car if you take turns driving with other commuters.

You can get the best out of your gas mileage from the start if you opt to lease a car that is fuel efficient. Selecting which vehicle you opt to car lease is the most important fuel economy decision you’ll make.

]]> http://www.carleasingsecrets.com/getting-the-best-out-of-your-gas-mileage/feed/ 0 http://www.carleasingsecrets.com/novated-car-lease/ http://www.carleasingsecrets.com/novated-car-lease/#comments Sat, 22 Nov 2008 02:30:27 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/11/novated-car-lease/ Novated Lease is a car finance option that allows your employer to pay for your behalf from your pre-tax income for the term of the lease or as long as you’re employed. More and more companies are making it a centerpiece of their attraction strategy today. Novated lease is not something new, in fact it has been around for over 15 years. However in the past, a novated lease was solely available to top executives in white-collar jobs. As more employers sought more ways to attract and retain people, novated car lease has worked its way down the corporate ladder and a lot of employers now offer salary packaging to all staff who can afford it.

What are the Steps Involved in a Novated Car Lease? 

1. You choose a car and organize a lease through a supplier or your employer may have their own car leasing company that they’d like to deal with.
2. After the Deed of Novation is signed for the term of the lease, this means your employer takes on the responsibility of making your lease payments.
3. Your employers makes the monthly car lease payments on your behalf through salary deduction.
4. When your lease term is up you can either pay the residual in order to own the car outright, trade in the vehicle or refinance the residual with another lease or loan.

Despite that your employer is making the monthly lease payments for you, the car lease is in your name. At the end of the day, you are solely responsible of the car lease, including if you change jobs and your new employer will not take over the lease payments.

 What are the Benefits of a Novated Lease?
1. One obvious benefit is the reduction of income taxes
2. A Novated car lease can also increase the your (employee) spending power
3. The opportunity to make money on the difference between the residual and the market value of the car
4. Compared to getting a fleet company car, a employee can choose the car he wants, control the maintenance and take the car with them if they switch employers. There are also no restrictions on personal use and the company is not stuck with an unwanted car.
]]> http://www.carleasingsecrets.com/novated-car-lease/feed/ 0 http://www.carleasingsecrets.com/car-leasing-and-the-environment/ http://www.carleasingsecrets.com/car-leasing-and-the-environment/#comments Fri, 14 Nov 2008 16:43:26 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/11/car-leasing-and-the-environment/ Did you know that CO2 emissions from cars are among the biggest contributors of the greenhouse effect?

According to J.D.Power, a market researcher, car buyers want to go green but not if it involves paying more. Even with the need and the desire to help the environment, many are hindered with the cost of going green and it’s quite apparent during this economically trying times.  Although there are a lot of environment friendly cars, these type of cars are not easily available for the majority of the populace since most of these hybrid cars belong in the elite group with an elite price. Whilst car leasing is a good route to take in reducing your CO2 emissions, only 11% is willing to take in the extra cost. According to the survey, only educated women would go for this kind of car; and why is that gentlemen?

Compared to car loans, car leasing are more affordable. Driving in expensive hybrid cars are an arm’s length away since you won’t be stuck paying the entire cost of the car. You can even sport a new green car every two to three years without having the burden of paying large loan amounts. Compared to the regular car that’s leased, car leasing an environment friendly car can, yes, still eat up a chunk of your budget. However if you have something to spare for the environment, give it to Mother Nature for the future of your children and mine.

When you do decide to venture into Car Leasing, you might also consider picking these models so as to help fight Global Warming and the ultimate degradation of our environment.

Environment Friendly Cars you might consider in Car Leasing :

Honda Civic GX

Toyota Prius

Honda Civic Hybrid

Smart Fortwo Convertible/Coupe

Toyota Yaris

Nissan Altima Hybrid

Toyota Corolla

Mini Cooper/ClubmanFord Focus

Toyota Camry Hybrid

Honda Civic

Honda Fit

]]> http://www.carleasingsecrets.com/car-leasing-and-the-environment/feed/ 0 http://www.carleasingsecrets.com/last-resort-can-be-best-lease-trading/ http://www.carleasingsecrets.com/last-resort-can-be-best-lease-trading/#comments Wed, 29 Oct 2008 03:06:09 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/10/last-resort-can-be-best-lease-trading/ Plans change and circumstances are shaped by them. This applies to any situation, whether you’re about to go off with the man of your dreams to the Caribbean or simply getting rid of your leased car, which you might realize soon are more like the same.

To strategize is the name of the game; that’s why they came up with the word street-smart in Webster. You need that cause you sure would have to pay a hefty sum for early termination fee, if not.

So what will you resort to? It’s called lease trading. What you’re doing is transferring the lease to a new lessee by finding one in an actual bidding site. Caution: it may take some time but rest assured you have a legitimate buyer; more importantly, you have more time searching for a new car.

In lease trading, the new legitimate lessee will assume the responsibilities that go with car maintenance and other fees imposed on the car at lease end. The new lessee can take advantage of not paying down payment while you, well, you are free from the lease!

So how should you go about lease trading? You have to look for a professional trading site like tradecarlease.com. They can manage all lease trades there. You only have to post your car lease and personal information on the site and they will store that in their database, showing them to potential lessees. However, you need to be informed that you’re on your own in the actual transaction. You would have to contact the person and manage the paperworks. So you should take time doing it.

For everything it is for, it’s all for the glory of freedom from an old car!

]]> http://www.carleasingsecrets.com/last-resort-can-be-best-lease-trading/feed/ 0 http://www.carleasingsecrets.com/most-asked-questions-in-yahooanswers/ http://www.carleasingsecrets.com/most-asked-questions-in-yahooanswers/#comments Fri, 24 Oct 2008 06:45:59 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/10/most-asked-questions-in-yahooanswers/ Whenever car enthusiasts, especially shoppers, are around, some questions continue to pop up about car leasing. Time-tested questions time and again are thrown at dealers and even YahooAnswers groups. Same old questions, same old answers. But then maybe it pays to repeat things, particularly if they’re as important as influencing them to believe in leasing as a good form of car ownership.

The following are the most significant questions and the hardest to answer, but they’re answered for you, nonetheless.

How can I get out of this lease even before the contract ends?

At times, things don’t work out the way we want. They drift into detours; then you find yourself not needing your car. This is true when your wife suddenly adopted two Asian kids from UN and the whole family won’t fit into your sedan. To make things easy, there are three options you have: find someone to assume the lease, sell the car yourself, or hand in the keys and walk away. The first option needs you to call the leasing company and ask if they would allow somebody else to “assume.” You might be needing $300 for fees. And be sure that the mileage does not go beyond what’s allowed. The second option will demand research from you. You need to check on the standard market price of your car. Even if you’re short by $1,000 or $2,000, you’re still better off with a new car. The third option is simply not a good choice. It will show as a “repo” on your credit record.

How can I buy out my leased car at the end of the contract?

When it happens to you, like to many, who went love struck with their leased cars for the comfort and familiarity and other times memories that go with it, the first thing to do is check its residual value. If, unfortunately, it’s higher than what you can afford, remember one thing: it’s negotiable. Next move is, call the leasing company.

How can I avoid extra expenses at lease end?

When you’re counting the days for Judgment Day, you secretly wish you’re not going to pay for your car’s after-life. To give you a clue, most leasing companies are bent on earning from returned leased cars. Good thing, there are maintenance tips that can help you with that: Get a car wash and have it detailed. Keep maintenance records as evidence. Have it serviced at regular intervals. Fix damages. Stay on regular mileage.

]]> http://www.carleasingsecrets.com/most-asked-questions-in-yahooanswers/feed/ 0 http://www.carleasingsecrets.com/how-to-negotiate-with-ease/ http://www.carleasingsecrets.com/how-to-negotiate-with-ease/#comments Wed, 15 Oct 2008 01:48:37 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/10/how-to-negotiate-with-ease/ When you face the dealer, be sure you know your trade-in value. Don’t stand there and act dumb. You are inviting hell to break loose.

Keep that dealer invoice price for the car you want in your pocket always. Let nobody tell you, you don’t know the trade.

Don’t pretend that you know how to calculate monthly payments unless you really know; negotiate for the price, not the monthly payments for your own peace.

Feel comfortable to walk out when the negotiations don’t work for you.

Let the dealer know that you know leasing and that you know what you are doing.

If the salesperson seems to be playing games with you, tell that person to stop. But restrain yourself from kicking his butt.

Don’t give the dealer any deposit during the negotiations.

You can always ask for another salesperson to negotiate with; if not, then walk away, right away!

Never give a dealer what you can afford for monthly payments. Give him an exact price instead.

Never agree to bring home a car for a night without settling a deal.

Make sure your well-being is intact during negotiations. When you feel tired, confused, or pressured during these times then you’re doomed.

When that dealer starts telling you that lease prices are not negotiable that means he is bluffing. Same as when he says that your source of invoice price is wrong.

Say no to extended warranties, add-on services, credit insurance, and other “miscellaneous fees.”

Always compare the dealer’s calculated monthly payment with your own, to make sure it’s accurate.

A slow day, like when it’s rainy or on a weekday, is a good day to negotiate. Always negotiate the price up from the dealer’s cost.

You are now a certified lease negotiator!

]]> http://www.carleasingsecrets.com/how-to-negotiate-with-ease/feed/ 0 http://www.carleasingsecrets.com/all-about-vehicle-history-reports/ http://www.carleasingsecrets.com/all-about-vehicle-history-reports/#comments Wed, 08 Oct 2008 05:28:32 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/10/all-about-vehicle-history-reports/ Used car buying and leasing have gained footing in the manufacturing industry. With its advent comes the popularity of a major source of information for this transaction:The Vehicle History Report.

Of course, like anything happening for the first time, questions swarm people’s minds about what on earth is a vehicle history report. To help you keep your peace of mind, here are some answers:

A vehicle history report is your greatest source of information from CarFax about the history of a used car you want to purchase or lease. It includes the car’s insurance and DMV records. It’s where you can see if your car had major accidents, flood damages, or simply if the car is a lemon.

There’s simply a need for you to avail of the vehicle history report to know if your car has no issues regarding title and test passes for safety and emissions. You can also track if the car had accident history, too much mileage or anything that can pass off as evidence for heavy usage, and other valuable information that may have an effect on its functioning later on.

You need the vehicle history report, whether you’re selling or buying the car. In selling, you have to know the vehicle history report of your car to know the marketable price for it, based on usage and its standard market price. Buying, on the other hand, requires you to know possible problems the car may have due to some factors like heavy usage, accident history, and others. CarFax also offers a title guarantee. If in case there are some discrepancies on the car’s report or the title itself, you can ask for a payout.

And hey, the good thing is, all vehicle history reports go back to late eighties. Its database is that huge. If ever you wanna check on a car older than that, try to run the VIN anyhow.

]]> http://www.carleasingsecrets.com/all-about-vehicle-history-reports/feed/ 0 http://www.carleasingsecrets.com/where-to-find-the-best-leases/ http://www.carleasingsecrets.com/where-to-find-the-best-leases/#comments Tue, 30 Sep 2008 02:46:13 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/09/where-to-find-the-best-leases/ Finding the best car lease is like open pit mining; half of your life (peace of mind) is at risk. Most car buyers ask the same question: Which is better: car buying or leasing? or Help! I can’t find a good car to lease! (Most of the time it’s in broken English. Check YahooAnswers.)

So to set things straight for all lessees and buyers at that, let me list down the sources you need to look into for that most sought-after yet elusive great car lease.

Prime but not primitive sources of leasing info are radio, newspaper, TV ads, and of course—the Net. Car manufacturers are fond of giving special leases for limited offer, not to mention subsidized or subvented leases. These companies usually offer these through discounting the price, boosting residual value, or by lowering interest rates. The thing is, you should work harder on your credit score; they only take in those that have 700+.

Next in line for the best car lease source are pricing or auto referral services in the Net. All you need to do is tell them the car you want and they can give a list of the best purchases or leases from the dealers who have agreed to your set price; the best part is, they will call you, not the head-splitting other way around. Another source, CarsDirect, when you like their offer lets you go to their dealership, sign the papers, and drive away, no sweat!

Top 3 among the sources is the nondealer lease sources. This simply means independent car lease companies. They may not be at par with car dealers’ promotional deals, but they can be good at hard-to-find, high-priced luxury cars. If this is not a guarantee that you will end up with your most-coveted car lease, then you might as well sue us for legwork.

]]> http://www.carleasingsecrets.com/where-to-find-the-best-leases/feed/ 0 http://www.carleasingsecrets.com/survival-tactics-in-ebay-jungle/ http://www.carleasingsecrets.com/survival-tactics-in-ebay-jungle/#comments Wed, 24 Sep 2008 01:28:39 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/09/survival-tactics-in-ebay-jungle/ You must be one of us whom after finding the right car model at maximum affordability just experience freezing fingers when about to press the Send button on the eBay site.

So what it is in eBay that scares off car buyers?

The element of non-visibility is only at an advantage for online chatters; but as for those who are serious customers online, this is not a resolved issue yet. Closing a deal online appears to be crossing your fingers that the non-existing person on the other side is true to his words. This has been touted as “honor system.” Without it, buying at eBay is not possible; the concept extends even to other items and services sold online.

It has been an online battle between sellers and buyers out there at eBay; without knowing the ins and outs of the maze, you might end with a bad deal and go home with half the car you want; our main armor against this is found on these nuggets of knowledge we compiled for you. Read on and be mindful.

Narrow the search by being definite in the car model you chose. You can save time in checking the eBay site by writing the exact model of the car on the search field.

Check feedback on the seller from other buyers; this is to check the credibility of the seller and to make sure he has experience in making online deals. Check also the auction’s description and ask for photos by email if necessary.

Be patient in observing the auctions before you jump into the bidding. Click on the “watch this item” for tracking sales and also “completed prices” for the final sale prices.

Develop good rapport with the seller; it enables you more flexible sales deals. The right seller to deal with is one who doesn’t set a minimum winning bid amount which is as much as a car’s retail value and one who allows you to cancel the deal after inspecting the car.

Even if banking is more on financing online purchases, interstate transactions are cash based.

Hire a mechanic and schedule for an inspection when you arrive in the scene. You can find inspection services in major metro markets with no-limit car warranty for the drive home.

Use Carfax for checking the vehicle history report and online pricing services for the most realistic retail and wholesale values of used cars.

Set a fixed price for a car and stick with it. Don’t engage in a bidding war. Include the travel and delivery costs when you have the car shipped after winning the auction.

When you are about to check your car on another state, buy a round-trip ticket. You can cut on the time spent when you decide to cancel the deal.

]]> http://www.carleasingsecrets.com/survival-tactics-in-ebay-jungle/feed/ 0 http://www.carleasingsecrets.com/car-leasing-option-commercial-hire-purchase/ http://www.carleasingsecrets.com/car-leasing-option-commercial-hire-purchase/#comments Mon, 08 Sep 2008 04:38:13 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/09/car-leasing-option-commercial-hire-purchase/ You must have heard of some acronyms posing as car financing options. However, it has remained a riddle, creating cobwebs of doubt, as to what comprise these car financing deals.

One of these acronyms is CHP short for Commercial Hire Purchase. It’s that option where customer hires the car from a financier, paying a fixed monthly repayment, over a certain period of time. In this set-up the customer gets to use the car but is not the righteous owner of the car, not until the end of the contract when the car’s total amount with residual values and interest charges have been paid full; then the customer can claim ownership of the car.

So let’s discuss the advantages you can get from a CHP, sometimes called HP. There are several of them:

• fixed interest rates
• flexible contract terms usually from 24 to 60 months or two to five years
• residual value (full or installment basis) that may be placed on contract
• fixed monthly repayments
• cash or trade-in may be used as deposit
• costs are known in advance
• tax deductions for cars used for business
• government sales taz is not added on the monthly rate or the residual amount
• customers can claim GST on the vehicle price
• finance allows low interest rates since finance is secured against the vehicle

Who can benefit the most of a Commercial Hire Purchase deal are partnerships, companies, sole traders whose GST is on accrual basis,and any individual, private or not, using the car for business.

Source: http://www.strattonfinance.com.au

]]> http://www.carleasingsecrets.com/car-leasing-option-commercial-hire-purchase/feed/ 0 http://www.carleasingsecrets.com/leasing-and-where-it-all-started/ http://www.carleasingsecrets.com/leasing-and-where-it-all-started/#comments Mon, 01 Sep 2008 07:57:41 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/09/leasing-and-where-it-all-started/ Leasing as a process and financial arrangement began as early as 2010 BC but modern leasing has started around 1950s, which first came with the creation of Investment Tax Credit in 1962 that spurred leasing that’s tax based. Following the strides of the early leases, a lot of equipment and other products sprouted to meet the growing demand of consumers. Many leasing companies got into leasing nontax products like vendor programs, limited partnerships, residual sharings, operating leases, and income funds.

Besides the aforementioned reasons for the meteoric rise of leasing, a lot of factors can be looked on as the force behind it. It has achieved its prestige and popularity in the recent twenty years due to the following factors:

Banking industry entered into the leasing realm, giving it more credibility from being the last alternative to any financial arrangement.

A new form, FASB 13, was produced by the accounting sector that would help in standardizing lease reporting in financial statements.

Rev Ruling 55-540 and Rev Proc 75-21, Internal Revenue Service issued guidelines, are implemented to help lessees and lessors to put a structure in leasing transactions.

People have been wondering why businesses have learned to trust leasing as a financial arrangement all through the passing years, when the economic terrain has been quite unreliable. The businesses have this to say for the reason:

In leasing there is relatively lower monthly payments and at times with lesser or no down payment involved.

Most companies have gained the mentality that at times owning an equipment is not a practical choice, that they don’t have to own the equipment to be able to use it. They have seen the economics in leasing more than loans.

The depreciation and interest on debts produce tax benefits for companies.

Some lessees can get off the record considerations and financial adjustments.

Leasing is controlled and guided by the Financial Accounting Standards Board (FASB), and the Internal Revenue Service (IRS) and the Uniform Commercial Code (UCC), which are trustworthy and notable institutions.

Source: http://www.executivecaliber.ws

]]> http://www.carleasingsecrets.com/leasing-and-where-it-all-started/feed/ 0 http://www.carleasingsecrets.com/car-leasing-guide-working-around-a-car-lease/ http://www.carleasingsecrets.com/car-leasing-guide-working-around-a-car-lease/#comments Tue, 26 Aug 2008 07:06:01 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/08/car-leasing-guide-working-around-a-car-lease/ The economic plunge has adverse effect on the car-buying populace, but there’s a way to go around this. When Chrysler declared that it has put an end to leasing, it created a domino effect on the other car-manufacturing companies; GM and Ford have expressed that they will be giving tighter restrictions for their leasing packages, and financial institutions like Wells Fargo and Chase Bank are headed to the same path.

Leasing as a financing type is appealing to the lessee and the leasing company and car manufacturer. For the car user, it is quite tempting to have a new car every two to three years. For the leasing company, it adds up to their earning that many car users are not quite informed about the leasing process. Car manufacturers used to love leasing since a lot of people tend to use their car models, even for luxury cars.

However, this time, forecasting the residual value of your car has proven to be a nightmare for these companies with the continuous increase in fuel. It is believed that usually leases can be paid off with 40% of the car’s value; right now, they cover only 28% of the car’s total value.

Many have raised concerns about whether leasing is on its last days. Leasing authorities believe that leasing has been around for some time already and has become a commoner in the competitive world of the car manufacturing industry. It is not going away for the reason of any economy downturn.

A car enthusiast who would like to lease should be able to equip one’s self by ensuring a strong credit background; leasing companies will be more scrutinizing this hard-up days. Other car companies will give you more reasons to buy rather than lease a car so you can take advantage of it.

Source: http://www.edmunds.com

]]> http://www.carleasingsecrets.com/car-leasing-guide-working-around-a-car-lease/feed/ 0 http://www.carleasingsecrets.com/more-myths-about-car-leasing/ http://www.carleasingsecrets.com/more-myths-about-car-leasing/#comments Thu, 21 Aug 2008 06:35:22 +0000 admin http://www.carleasingsecrets.com/blog2/blogs/2008/08/more-myths-about-car-leasing/ The leasing world has triumphs and defeats in its battle towards other forms of car ownership. But time and again, car leasing companies have to elbow in themselves in the crowd to assert the effectiveness of car leasing as an affordable and reliable form of car ownership.

We managed to come up with a set of the latest misconceptions that might be regarded as urban myths about leasing. It helps if you are well informed of what the majority thinks about car leasing in general.

The first myth is that leasing is always cheaper than buying a car. Relatively, leasing is quite cheaper since you only have to pay monthly for the depreciation value of the car as you use it through time. This is different when you decide to buy out the leased car at the end of the contract since if you’re going to sum up all the monthly payments and the buy-out price it will be much higher compared to a brand-new purchase.

Another myth is that the new disclosure laws give auto owners the full protection. Due to a lot of complaints about hidden fees in lease contracts, a law has been passed that requires dealers and leasing companies to accomplish a form of disclosure, providing lease details, most specifically the hidden charges for wear and tear, gap insurance, excess mileage, and others. However protective the law may appear, it should be known that the interest rates are not required to be disclosed by these dealerships. The fool-proof way of protecting yourself is to stick to a well-reputed licensed dealer.

The dealers can’t charge you after you returned your car at the lease’s end. This is entirely farcical since a lot of lessees have already complained about being charged for a dozen fixes right after they returned their car to the dealers after the lease. To make sure that you won’t fall on this trap, make sure to read the end of term conditions, to make sure what fees you need to take care of. It’s also a good idea to hire a third party to check on the overall condition of the car at the end of the car lease and come up with a vehicle report for the dealer to based on.

The fourth myth is that only rich people go into leasing than buying. This might be brought about by the fact that car leasing is for luxury cars only, which is not the case. The real thing about leasing is that what matters most is a good credit background and not the purchasing power of a prospective buyer. According to the book The Millionaire Next Door, by Thomas J. Stanley and William Danko, 80% of millionaires buy cars and not lease. Car buyers who are not really into the millionaire status are in fact more credible for a dealer for as long as he has a good credit background.

The last myth is that leasing has tax advantages than buying. The truth is that leasing has a friendlier way of calculating its taxes, making it easier to find out how much it’s going to cost you, hence, easier to accomplish payment or fix a deal for a certain cost.

Source: http://www.bankrate.com

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