May 2009 - CarLeasingSecrets

Archive for May, 2009

Picking a Fuel Efficient Cars

When picking a car to lease, a lot of factors may affect your decision. The price of a car and its performance are a few of the aspects you would take into consideration. Although an inexpensive car is very attractive, it usually has some trade offs for the low price value of the car.

In some instances cheaper doesn’t always equate to savings. Investing in a fuel efficient car may cost you more in your initial investment, you’ll realize you saved a lot if you look at the long term benefits. You save a lot in your gas cost and still get a good performance out of your vehicle.

Although their are vehicles which are cheaper and have a good gas mileage, these vehicle sacrifice some features found on other vehicles to compensate for the low price. At the end of the day it still boils down to the needs of each and every person. A person might opt for an expensive fast fuel efficient car or a cheaper slow fuel efficient car.

If fuel efficiency is important to you in picking a car then here are a list of the best fuel efficient vehicles and the best fuel efficient sports cars.

Best Fuel Efficient Vehicles
  1. 2008 Toyota Prius
  2. 2008 Honda Civic Hybrid
  3. 2008 Smart Fortwo
  4. 2008 Nissan Altima Hybrid
  5. 2008 Toyota Camry Hybrid
  6. 2009 Volkswagen Jetta TDI
  7. 2009 Ford Escape Hybrid
  8. 2008 Toyota Yaris
  9. 2008 MINI Cooper/Clubman
  10. 2008 Honda Fit
Best Fuel Efficient Sports Car
  1. Nissan Altima Coupe
  2. Audi TT Coupe
  3. Audi A4 Cabriolet
  4. Pontiac G6 Coupe
  5. Honda Accord Coupe
  6. Volkswagen Eos
  7. Chrysler Sebring Convertible
  8. Mitsubishi Eclipse
  9. Pontiac Solstice
  10. Saturn Sky

Cars with Worst Residual Values

There are a lot of factors to consider when shopping for a new car. In the current state of the economy today, people always try to get the most out of their money. When choosing a car you should always look at the bigger picture if you want to maximize your money. Buying a very cheap brand new car might not always be the best option if you look at it in the long run.

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%

How Car leasing works

The concept of car leasing is basically you paying for the depreciation of the car during the period you were driving it. Depreciation is the difference of between a vehicle’s original value and it’s value at the end of the lease. Different makes and models of vehicles have different depreciation rates. Vehicles having the lowest depreciation rates usually have the best lease deals.

Capitalized Cost is the price agreed upon by you and the dealer, this is also known as the lease price. The  capitalized cost may include certain fees, such as an acquisition fee

The Residual Value of the car is its depreciated value after the end of the lease term.The higher the residual value the lower is your lease payments.

Money Factor is the interest you pay to the lease company for the money they spent to buy the car from the dealer so that they could lease it to you. Money factor is sometimes called lease factor, lease rate, or simply factor.

Lease term is the length of time a car is leased, which is usually expressed in number of months. A good way to maximize your lease is to choose a l lease term that’s not longer than the coverage warranty that comes with your vehicle. In that way you’re covered for the entire duration of the lease.

There are a number of important things to consider and remember while getting a car lease. The issue of maintenance of the car is one aspect which should be understood carefully before acquiring a car lease. You should remember that you are responsible of all maintenance and repairs on your leased car and not the leased company.

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.

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