November 2008 - CarLeasingSecrets

Archive for November, 2008

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.

Things to Note After the Deal

After the contract is signed, it is already legal and binding so a deal is a deal. If you’re unhappy with the lease there is no grace period wherein you can cancel the deal. This goes the same with purchasing a car. However if you believe that a mistake have been made, contact your dealer or car leasing company.

If you absolutely must terminate your lease, the later you can wait, the better. When you terminate your car lease too early, it will extremely be costly.

If you want to move during the term of your lease, many car lease contracts prohibits you from doing this. Most car lease contracts prohibits their vehicles out of the country, some even prohibit moving it out of the state. Always remember to read the fine print.

Keep your end of the bargain, failure to do is a violation of your car lease contract. Maintain your vehicle, keep the contract-specified amount of the insurance, and make your monthly payments promptly.  Purchase tags, registrations, and pay taxes as required by your local government. Don’t make modifications to your vehicle, or fail to repay any damages. Don’t use the vehicle for illegal purposes, drive while drunk, or let unlicensed drivers use it. Pay all fines and fees associated with the vehicle.

Be sure to watch your mileage that it does not exceed the limit. If you find that you’re driving too many miles, try to take action to bring it back in line. You can try swapping your car with someone else every once in a while. If you have a pending road trip, you can opt to rent a vehicle for this rather than drive your leased vehicle. If you can’t simply stay within your mileage units, just realize that it will cost you whether you’re leasing, buying, or renting.

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.

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

Countries Interested in Car Leasing

With the worldwide crisis, car enthusiasts are looking into car leasing to concord for their rather expensive interest. Even with the news that the US car leasing industry lags down due to the slowing economy, still other regions all over the world have developed an interest over car leasing with UK taking the first spot.

Car Leasing

 Pakistan has the second highest query rate for car leasing. With the popularity of car leasing at Pakistan, the direct impact is evident on it’s increasing inflation rate. With the car leasing, the middle class also have the chance to sport a new car ever two years.

 

 As you can see the US’s interest over car leasing is only 15%. According to the Tennessee Journalist “When Ted Russell Ford turned down Harrison Pang’s leasing request for a 2009 Ford Focus, evidence of the lagging economy on the most profitable business in this country became readily apparent.”

 

Since I was quite interested to see what are the popular queries on car leasing were. I took the liberty on finding out what are the rising topics on car leasing in Google.

  1. Car Leasing Offers
  2. Car Leasing Deals
  3. Cheapest Car Leasing
  4. Audi Car Leasing
  5. Vauxhall Car Leasing

Interesting. Especially for Car leasing companies. 😉

 

Legendary Lies to Every Car Leasing Deal

Naivete is left only to those who lack experience and who have not seen the worst. Needless to say, in car leasing the naive will have himself buried in neck-deep monthly payments and additional charges. No amount of questions asked can compensate for a discerning, critical mind in evaluating a car lease deal. This is so because of the multitude of car lease dealers who ply the road clandestinely at night, peddling their wares of questionable value.

These peddlers we call car lease dealers usually have the most inane concept of a business deal, a.k.a. car lease. For those who are not aware of their existence, let me introduce to you their language. Car dealers usually have the sweet tongue to sweet-talk you into thinking the car you’re leasing is an affordable eye-candy. Here are some of their pick-up lines: (Reminder: Don’t believe them.)

“You can lease your car with no rate, yes, zero rate!” This might cause a fiasco when the lessee learns that the interest rates are embedded in the skyscraper-high sales price.

“Our car leasing rate is not influenced by a financed rate.” The truth is, the greater the financed rate, the greater was the leasing rate added.

“In car leasing, the credit extension rate is mandatory.” It’s another way of milking me pure with honey, Mr. Car Lease Dealer. Simply refuse it.

“Oh, we only take car leasing from our partner bank.” Get lost! You have to change your car leasing company right away! This might be a cartel or a syndicate group you’re going to deal with.

“You pay easily for 84 months for the car lease.” If you’re into financing your car in this manner, the amount you’ll be paying is equivalent to buying two cars.

What Our customers are saying

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Cristoph Wiese
Athens, GA
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Albany, NY
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Missoula, MT