February 2009 - CarLeasingSecrets

Archive for February, 2009

Finding the Best Car Lease Deals

For most of us, hunting for the best car lease deals is such a complicated and tedious work. It’s the right combination of sweat and good research. Generally there are several ways for hunting car lease specials and this article dishes out five (5) tips which have been proven to be quite effective.

  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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Getting a Good Deal on Used Luxury Car Leasing

In today’s marketplace, buying used luxury cars is a smarter choice than ever before. If you’ve acquired the perception somewhere along the way that you could never own a luxury car, perhaps it’s time to rethink your buying strategy and start dreaming again about that car you’ve always wanted. Not only have used luxury vehicles become relatively cheaper to buy, they can be much less expensive over the lifetime of ownership. In this article we’ll look at some ways to uncover the best deals on used luxury vehicles.

Look for lease returns:

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.

Dig deeper into online research:

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.

Choose your dealership, and then choose your car:

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.

 It may be quite tempting to venture into leasing when your credit card stays unused and you’re itching to drive a new car. Knowing that car leasing offers low monthly payments and that car repairs are not an immediate concern, the best thing to do before going up to your nearest car dealer is to contemplate, first and foremost. Think first before allowing yourself to get tied up for two to three years of credit obligation.

When you’re buried neck-deep in debts, car leasing may sound too good to pass out, especially if the new 2009 Chevy is out in the market. Just think about it, you won’t be expending sizable amount- so car leasing is certainly a viable and easy option. Well, if that’s the only reason you’d go into car leasing – think again. Try to think ahead of your financial situation; once you start leasing  a car, at the end of the contract, you would have to lease another car or buy out your current leased car. This means you would be a slave to your car dealership for your monthly payments for another three to five years.

So if you have a hefty amount for savings, try to pay all your debt s first and instead settle for a used car. Car leasing is good for those who were able to save up for the rainy days and there’s still some income coming in from another source. With that being said, buying a used car may be a good option instead of leasing. Although the car is not totally bright and shiny, you’ll actually be owning the car and there won’t be monthly payments to haunt you for years to come. There are also good price packages for a used car also. However if you won’t see yourself using the same car after three years and you only have a measly bank account, used car leasing can be another option. It is still, in all essence, car leasing but at a much much lower price.

There are several auto financing option. Do a bit of research and find that one financing option that suits your immediate and near future needs. Otherwise, you can look for other alternative ways to increase your purchasing power.

 

Taking over a Car Lease during a Downturn

While the global economy is taking a nosedive, the volume of car leasing transactions managed to stably increase. It is estimated that roughly 40% of all cars running in Canada have been acquired through car leasing. However as the US consumers continue to tighten their belts bracing for the forthcoming recession, sales on new cars have been direly affected yet during the last holiday season, a 13% growth on car lease takeover has been determined.

Why many people are considering car lease takeover deals instead of leasing a whole new car? It is probably due to the fact that its impractical at this point in time to spend a hefty amount on car purchases. Other than car leasing, there are several methods to finance your next car however most are quite expensive and unreasonable especially these days. Although car leasing is inexpensive when compared to car loan, car lease takeover is more practical and less costly. This is because down payments, administrative fees and tax impositions are waived.

Lease takeover deals are considered as unexpected lifeline of the car industry. The advantage and helpfulness of lease takeover transactions are more acknowledged and felt these days as car sales decline and car industry revenues plummet. Lease takeover transactions keep revenues flowing in to the car industry. Thus, even if new car sales plunge, revenue keeps on coming despite the economic downturn. Experts assert that as long as the economic crisis stays, more and more consumers will prefer to buy car leases and lease takeover deals.

The global economic downturn has paved the way for the rise of car lease takeover deals. As sales of new cars plummet, car lease and takeover transactions help keep revenue flowing into the ailing car industry.

To Lease or Buy? That is the Question.

In this violent market cycle, many are concerned with how and where to invest their money. Other than the usual questions that falls on the money discussion table, two or more questions concern automobile purchases. Is buying better than car leasing?If buying makes more sense, is a loan better than cash?

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.

What Our customers are saying

The lease rate I got by calling the dealer was $67 higher than the rate I got from Car Leasing Secrets. It’s all about the local competition. So happy with my Benz!
 
Cristoph Wiese
Athens, GA
This is probably the easiest way to get quotes and compare them. I got one from each dealer in my city. One of them was surprisingly low. The quotes are free. No worries there.
Kristen Fletcher
Albany, NY
What a great way to shop around! I wanted a Corolla. There’s only one Toyota dealership in my city but I got a quote for a Honda Civic and decided to go with that one because I got such a good offer.
Mark Dolan
Missoula, MT