Youve come to the end of your lease and you like you car enough you want to keep it in the driveway. Just like buying a used car, there is some research to be done to nail a good deal.
First, you need to know the cost of buying out your lease. Read the fine print of your contract and look for the purchase option price. This price is set by the leasing company and usually comprises the residual value of the car at the end of the lease plus a purchase-option fee ranging from $300 to $500. When you signed on the dotted line, your monthly payments were calculated as the difference between the vehicles sticker price and its estimated value at the end of the lease, plus a monthly financing fee. This estimated price of the car value at the end of the lease is what is termed in leasing jargon residual value. It is the expected depreciation or loss in value of the vehicle over the scheduled-lease period. For example, a car with a sticker price of $40,000 and a 50% residual percentage will have an estimated $20,000 value at lease end.
Now that you know the cost of buying out your lease, you need to determine the actual value, also termed market value, of your vehicle. So, how much does your car retail for in the market? To pin down a good, solid estimate you need to do some pricing research. Check the price of the vehicle, with similar mileage and condition, with different dealers. Use online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book for detailed pricing information. Gleaning pricing information from various sources should give you a fair estimate of your vehicles retail value. All you have to do now is compare the two amounts. If the residual value is lower than the actual retail value, than youre into a winner. Unfortunately, there is a good chance a car coming off a lease is a little on the high side. Dont despair though. Leasing companies know as much that residual values on their vehicles are greater than their market value and as such are always on the look out for offers. You can knock down on the price of your leased vehicle with some smooth negotiating tactics. Put forward a price that is below your actual target and negotiate hard until you wind up near that figure.
Tags: Buying A Used Car, Car Value, Depreciation, Despair, Dotted Line, Edmunds, Good Chance, Jargon, Kelly Blue Book, Lease Period, Leasing Companies, Leasing Company, Mileage, Option Fee, Option Price, Purchase Option, Residual Value, Residual Values, Retail Value, Sticker PriceRelated posts
Todays car shopper is faced with many choices on how to buy a vehicle, but none offers more information and up-to-date information like the Internet. In years past, when you in were in the market for a car, you would go to the dealership empty-handed, test-drive the car and put together the deal based on what you thought the car was worth. Unfortunately, many times buyers ended up getting a raw deal, with the dealerships using their salesmanship and behind the scenes knowledge to turn the deal in their favor.
But now, things are different. The Web offers shoppers a tool which they can research, price and even take a virtual test drive of the car they want. They can e-mail or call, and have all the information at their fingertips at sites like Kelly Blue Book (www.kbb.com) and Edmunds (www.edmunds.com).
Possibly one of the best examples of a site dedicated to the car buyer is www.sandiegocardeals.com, run exclusively by the internet/fleet department of Kearny Mesa Toyota in San Diego. The site offers a complete virtual inventory of all new Toyota and Scion models as well as complete pre-owned inventory listings. But what really sets this site apart from the others is that they actually post retail and invoice prices so that the buyer can simply name my price, based on the research theyve done online prior to coming to the site.
This approach, of providing the buyer with as much information as possible, is a product of Kearny Mesa Toyotas realization that it is not status quo in the car business anymore.
We found that the buyer responds to being treated like an intelligent human being, said Melissa Amick, Internet/Fleet Director at the San Diego Toyota dealer. They have done the research, and they just love it when they talk to one of our Internet specialists and get a straightforward, honest answer.
Kearny Mesa Toyota has even taken it a step further buy training and authorizing their entire Internet department staff so that they can quote prices over the phone without having to check with management.
Tags: Amick, Buying A Car Online, Car Business, Car Buyer, Car Shopper, Edmunds, Fleet Director, Honest Answer, Internet Department, Internet Fleet Department, Internet Specialists, Inventory Listings, Invoice Prices, Kearny Mesa Toyota, Kelly Blue Book, Owned Inventory, Salesmanship, Toyota Dealer, Virtual Inventory, Virtual Test DriveRelated posts
If you planed to buy an used car, it is important not only to find the car you like but you may also need to take some precautions like checking the car history, taking a test drive, knowing its book value or taking an extended warranty.
Check the cars history
An essential factor when car browsing is to learn the cars history. This entails finding a reliable source as to whether the automobile has ever been flooded or involved in an automobile accident. Before agreeing to buy used cars, consumers may obtain a CarFax report at www.carfax.com or by requesting that their local dealer provide a copy. There is a minimal fee involved in acquiring the report, but the findings are invaluable. For instance, the number of owners and the title status are both included in a CarFax report.
Take a drive test
Generally, used cars buyers will be permitted to take a test drive and also may think about requesting permission to take the automobile to a trusted mechanic for an additional inspection. The best way to confirm that the automobile is in the condition as stated is to take it to a mechanic, who can properly inspect used cars and locate any underlying problems. Even if most used cars are exactly as stated, when auto safety and any amount of money is involved, there is no room for error in judgment.
Know the car value
Before buying any used car, it is important to be familiar with the value of the vehicle. One way to determine an accurate value is through the use of Kelly Blue Book (www.kbb.com) and their extensive pricing system. By entering specific information about an automobile, consumers will receive instant value estimates online. In order to get an accurate value, consumers must know the make and model of the automobile, current mileage, additional features and overall condition.
Ask for an extended warranty
It may also be possible to purchase an extended warranty when you buy an used car. Because the original warranty has already expired on most previously owned vehicles, this option is available for the consumer who wants to make sure their purchase is covered. It is important to realize that the warranty is not automatically included in the sticker. In fact, the consumer should ask the dealer specifically about purchasing an extended warranty. More often than not, an extended warranty can be added into the total cost and may even be included in the financing.
Tags: Accurate Value, Amount Of Money, Auto Safety, Automobile Accident, Buy Used Cars, Buying Used Cars, Car History, Car Value, Carfax Report, Cars History, Drive Test, Error In Judgment, Extended Warranty, Kelly Blue Book, Mechanic, Mileage, Minimal Fee, Test Drive, Value Consumers, WarrantyRelated posts
There are a lot of perks associated with car shopping online with eBay Motors, including the buyer being able to set the price. In addition, automobile insurance is more affordable on used cars and, with an auction, the buyer pays in full and there is no hassle of a monthly payment. If you do plan to shop for your next car on eBay Motors, take a moment to consider the following tips to help get you started on the road to car shopping success.
First and foremost, check with your car insurance company before deciding to purchase a specific car on eBay Motors or anywhere else. If the cost of car insurance is a major deciding factor, then you will want to be clear about the costs before you commit to purchasing. In addition, it may be helpful to know that SUVs carry a higher insurance cost than that of a car. With that being said, the cost of insurance will be less on a used car than if that same model were purchased new.
Request a CarFax report from the seller and, if they do not have one, request the VIN number so that you may obtain a copy directly. This report is something that every potential car owner needs to have. Why? Because it contains the number of previous owners that a particular car has had, information regarding whether or not the car has ever been involved in a flood or other accident and whether or not the title is clear. There is also more information detailing a cars history included, which is why no automobile should ever be purchased without a CarFax report.
Before deciding that your car of choice is the deal of a lifetime, take a moment to research its value according to Kelly Blue Book. This company is one of the most respected in the industry and instantly provides new or used car values directly from their website. After entering specific information relating to a car, individuals will receive an instant value assessment according to the information provided. This tool will help all potential car owners to find out whether or not a deal is too good to be true or just not too good at all.
Take a moment to consider the cars fuel mileage. With gasoline prices what they are, it is important to think about how many miles you will get from one gallon of gasoline. The more mileage you have per gallon, the less you will end up spending in gasoline. This is definitely something to think about!
When shopping for cars on eBay Motors, take special notice of the mileage. This is a good indication of how much life the car has left in it or whether you are buying a car that has seen its best days. A great number of cars on eBay Motors have very low mileage, but others are well over 100,000.
As a final thought to shopping for cars on eBay Motors, take a moment to make sure that the car you ultimately select is one that will best fit your lifestyle. If you have a large family, for instance, a compact car probably isnt the best choice. You will need additional space to make sure that everyone is comfortable and to make it ideal for long road trips. At the same time, a single person may be more than happy in a smaller car because of the simple fact that they use much less gasoline than an SUV or similar automobile. When shopping for cars, either new or used, its all about lifestyle and which one best fits yours.
Tags: Auction, Automobile Insurance, Car Buying Tips, Car Insurance Company, Car Owner, Car Owners, Car Shopping, Car Values, Carfax Report, Cars History, Deal Of A Lifetime, Ebay, Ebay Motors, Flood, Hassle, Insurance, Kelly Blue Book, New Car, Value Assessment, Vin Number