If you are considering whether to buy or perhaps lease your next car and which would afford you the best deal, most consumer experts agree that from a purely financial aspect you will be better off in buying your next car.
Of course paying cash in full is the best possible scenario since with this option you would avoid any type of finance charge. But for the vast majority of us and for the scope of this article well take a look those purchases or leases that involve financing.
In the short term leasing may look attractive to you because monthly lease payments will more than likely be less than the monthly payments of a purchase agreement. Why? Because with a lease you are essentially only paying for the part of the car you are going to use. Its kind of like splitting the cost of a pizza with someone. You are only paying for the pieces that you are going to eat. In car terminology the part that is left over in a lease is called the residual value of the car. The higher the residual value of the car the less of the car you will use during the lease so you payments for the part that you do use (the lease) will be lower.
Typically lease durations are 24, 36, or 48 months. Do not sign up for a lease beyond 48 months. Actually anything beyond 36 months is pushing the value of the lease. Dont let the car salesman get you into a longer lease just because they make your monthly payments look more attractive. Remember time costs you money and the cars residual value will plummet and you loose all the advantages of leasing and still be left with nothing in the end.
For some drivers the car buying decision isnt based purely on bottom line numbers. And this is fine. Its strictly personal. Leasing does afford you the ability to always be driving a new car. A car that is within a few years of the latest body style and technology. A car that is always under the factory warranty. For the person that has accepted the fact that they enjoy being in a newer car and that car payments is just another monthly expense, then why not get the most car for the money? Then leasing could be a good alternative.
If this is your personal preference the other two questions you must answer are how many miles a year do I drive and how hard on cars am I? The mileage question can really come back to haunt you if you are not careful. People who are in new cars and thus enjoy driving them and showing them off more will have a tendency to drive them more. Be very careful with you mileage. Going over your allotted mileage on your lease could end up costing anywhere from 15 to 30 cents per mile beyond the lease mileage allowance and this can get painful in a hurry. In most leases you can purchase additional mileage up front at the time of the lease but keep in mind if at the end of your lease you havent used all of your miles, you dont get that money refunded back to you.
I mentioned a bit earlier you need to consider how well you treat your cars. Only you will know this and you need to be honest with this one. Dont think that you can turn your lease car in at the end of the lease with the car in sub par condition. If you do, you may be assessed reconditioning fees that could become rather hefty.
In summary, from a purely financial perspective buying your next new car is the best over the long haul. But, car with car ownership, so much personal preference, and personal priorities come into play. If you think leases look attractive, be absolutely certain about your mileage you will drive. Take good care of the car. And finally check with your insurance agent first to make sure that you dont give back the money you save in monthly payments to your insurance company.
Tags: Body Style, Bottom Line, Buying Versus Leasing A Car, Car Buying, Car Payments, Car Salesman, Factory Warranty, Finance Charge, Financial Aspect, Lease Payments, Leases, Leasing A Car, Line Numbers, New Car, Personal Leasing, Pizza, Purchase Agreement, Residual Value, Short Term Leasing, Time CostsRelated posts
Replacing a vehicle can be a long, tedious process. With so many possibilities available to you, it can often seem overwhelming to pick one that will stay with you for years and years.
For every dealership you visit, youll receive many offers. Some will be a better deal than others. During the whole search you should always remember that price isnt the only thing to consider. You want to know the entire history of the vehicle youre thinking about buying. Its a good idea to make sure you do plenty of research.
Your first step should be to narrow down your search to the top 5 cars you would like to drive. Once you have done that task, gather as much information as you can regarding each vehicle.
Learn about the warranties for every car. Learn what is covered in the warranties. Take in to consideration the price of the car once you drive it away. Its a good idea to obtain your information from the manufacturers instead of the dealers.
If you listen to the dealerships for information, youll probably end up dealing with misinformation. You wont know until its too late. Some dealers are just interested in their bottom line, and might bend the truth in order to make a sale.
Next you should narrow your choices to the top 2 cars on your list, by using all the information you have obtained. Now that you have 2 cars to choose from, you can go deeper in your search.
Log onto the internet and google your car. Look for reviews and stories about the cars you are considering. Look for anything that might alter your decision. After you compare all of this, THEN you should take cost into consideration..
If the price looks good on your first choice, you should end your car search right there and consider it a successful mission. Now all you have to do is go and buy your ideal car, and take it on a cruise to familiarize yourself with it.
Tags: Bottom Line, Buy Car, Car Reviews, Car Search, Choices, Cruise, First Choice, Google, Ideal, Misinformation, New Car, Possibilities, Search Log, Successful Mission, Top Cars, Truth, WarrantiesRelated posts
There is no secret that auto insurance prices are on the rise and have been that way for a good many years. There is something that makes us all cringe in response to paying for something that we may very well never use and at great expense to us. So we are all in search of the cheap auto insurance. This can be a game that takes a good long time to play but in the end it should be well worth it. Of course this is not something that will happen over night and there is several matters that go into the whole thing. Auto insurance is tricky business and the companies not only want to protect you, but also their bottom line in the end. So if you are in search of the cheap auto insurance then you should follow a few general rules.
The best way to get cheap auto insurance is to be a good driver. That is really a common fact that many people over look these days. Insurance companies reward those drivers that have had no accidents, and no tickets. Of course this may be easier said than done to be honest considering even accidents that are not your fault look bad on your record. The tickets thing is what really matters most. Just one ticket for speeding can raise your auto insurance rates by over thirty percent a year. So you can see that it is best to obey the traffic laws at all costs no matter what. This will give you the very best cheap auto insurance with most companies.
There is the matter of shopping around for cheap auto insurance as well. The one mistake that people often make is to think that the company they have been with since they were young is giving them the best rate. This is the farthest thing from the truth in all actuality. You will find that with the vast array of auto insurance companies that sprinkle the country side that the prices will vary greatly. Many times you can save hundreds of dollars in premiums by going with another company.
Finally, cheap auto insurance is given to those that have easily insurable cars. This is no secret, but you should have a car that has a good safety rating with the insurance companies in order to maintain the best rates on the insurance. The auto insurance companies do not like those little sports cars that move at top speeds as they can be the ingredient for disaster and much expense.
Tags: Accidents, Actuality, Array, Auto Insurance Companies, Auto Insurance Rates, Bottom Line, Cars, Cheap Auto Insurance, Cheap Insurance, Company Insurance, Cringe, Insurance, Insurance Business, Insurance Prices, Long Time, Mistake, Premiums, Shopping, Traffic Laws, Tricky BusinessRelated posts
Looking for the cheapest car through buying used cars is a smart practice. However, when the buyer is truly saving and is on a tight budget, buying a used car should not be immediately decided upon and should take a lot of deliberation. This is to avoid throwing away your hard-earned money.
Therefore, for people who already know something about buying used cars but wish to know when not to buy them, here are some pointers that may help people in their decision-making:
1. Buyers should be wary of buying used cars from owners that do not have complete and pertinent documents.
This could mean a lot of negative things and the buyer is the only one who will be at the losing end. Documents are crucial especially if the car is second hand. It is the only solid guarantee that a buyer can get hold of when buying used cars.
If this is the case, then, the buyer might as well not pursue the deal.
2. Buyers should consider their budget
If the reason why the buyer is opting to purchase a used car is the budget, then it should be the same reason why the buyer should be careful and meticulous in choosing a used car.
Hence, if the car needs a lot of maintenance, repairs, and other modifications, it is best not to buy that used car.
3. If the buyer is not comfortable after test-driving the car, then, it is best not to buy it.
There are instances wherein some people tend to opt for used cars because of the model of the car being sold. It is their dream car and there is no other way they can purchase them but to buy them second hand.
However, if the buyer was not comfortable with the car after test-driving it, then, it would be better not to pursue the deal, even if it means the world to the buyer to have that car.
The bottom line is that buying used cars should never be the sole alternative to people who cannot afford to buy new ones. This means that people should value the process of choosing a used car like what they would do when they buy a new car.
After all, it is their money that will be put to risk that is why it is extremely important to consider all the factors in order to have the best buy ever.
Tags: Bottom Line, Budget Car, Buy Car, Buying A Used Car, Buying Cars, Buying Used Car, Buying Used Cars, Car Buying, Car Maintenance, Deliberation, Dream Car, Guarantee, Hard Earned Money, Instances, Maintenance Repairs, New Car, Pertinent Documents, Pointers, Smart Practice, Tight Budget