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
Before getting your own car, it pays to do some homework. Think about what you need, what the car will be used for, and your budget. Look in books and online and think about repair costs, safety tests, mileage etc.
All this research can save you some serious money and help you avoid being ripped off.
Once youve chosen the car you want, you have to decide how you are going to pay for it. You can pay the whole amount upfront or you can finance the purchase over time. If you do use financing, you should be aware that this increases the total cost of the car as you must pay for the car plus the credit.
Once you have decided on how much you can put down, you can look at the annual percentage rate (APR) of the loan and the length of the loan and see how much your monthly payments will be.
Generally speaking, the shorter the term of the loan, the higher the APR. If you are in your teens, cosigning with your parents will help you to get a better rate. You may also want to think about paying in cash for a less expensive car.
Dealer or Private Sale?
This is an important decision to make. If you buy from a dealer you will generally pay more. But you will benefit from knowing that if there is a problem you can return to the dealer to complain. Many dealers offer warranties and guarantee the quality of the car.
On the other hand, buying from an individual will offer less security as the car will generally be sold as is, which means you must bare the cost of any problems that later arise. You also cannot go back and complain to an individual if something they told you turns out to be untrue. That said, buying from an individual can often offer very good value.
First of all, they will not add a mark up on the price, which is what a dealer would do if he had bought it first. Also, if you bring along your own mechanic, or someone who knows about cars, you can have it checked out to make sure everything looks ok.
Before you buy the car, make sure you examine it with an inspection checklist. Get a good test drive over varied road conditions and be sure to get the cars maintenance record. It is also worth having the car inspected by a mechanic if you have serious concerns about it.
Finally, before you buy, make sure you are ready to meet all the associated costs of having the car. These include insurance, fuel, maintenance and repairs.
Tags: Annual Percentage Rate, Annual Percentage Rate Apr, Budget, Buy Car, Buying A Used Car, Buying Car, Car Credit, Car Dealer, Cars, Expensive Car, Homework, Inspection Checklist, Mechanic, Mileage, Own Car, Parents, Safety Tests, Serious Money, Upfront, WarrantiesRelated posts
If you are buying a used car, you probably want to save some money. This means that you need to prioritize what is most important to you in a car. This article will help you assess your needs and your wants, so that you can find a car that suits you perfectly.
Cost
Look at the cost of a car. There is no point in window shopping at fully-loaded $40,000 trucks if you will only be able to afford a $4,000 truck in the first place. When you are establishing your budget for your car, be sure to account for how much the insurance will likely be, how much gas you will be spending (although this figure does change, it is best to go in having at least an idea), and regular maintenance. To budget for maintenance, you will need estimate the costs of 4 oil changes a year, plus some extra money just in case. Used cars are, well, used: they arent new are generally not under warranty. If you want a warranty, consider buying a used car from the dealership, who can often offer warranties even on used vehicles.
Suitability
What kind of driving do you do? You probably dont need a four-wheel drive behemoth of an SUV if you do mostly city driving. Conversely, if you live on a gravel road, you might feel more comfortable driving in winter if you have something larger than a neon. For most drivers, the way that you drive a car will mean that you are open to many options. However, if this is a limiting factor, it is important to take into consideration.
If you are a commuter, then you will have to take other factors into consideration. You might not want to buy a car with a very high mileage, because you will be adding the miles to that odometer. You might want to find a car that has very comfortable seats to make your ride go better. Things that could be less important, like the stereo, become much more important when you spend a lot of time in your car each day.
Look
Some people would rather have a car that looks good or prestigious. Its okay to admit that you are one of those people. For instance, for $3,500 you might be able to buy a 6 year old Honda civic; this same money could also buy you a much older BMW. If you value appearances, dont lie to yourself when you are shopping. You want to get a car that you will love, and theres no point looking at Ford Focuses if the only thing that will spark your delight is a Ford Mustang.
Load
How many people do you normally travel with? What is the most number of people that you have taken in your current car at once? If you dont already have a car, estimate the number of people you will have with you on a regular basis. If you only drive around 7 people during the hockey tournament once a year, you can probably skip buying a minivan. However, if you normally drive three people around, it might be a pain to get a two door vehicle. For truck drivers, you will want to consider the amount of load that you generally put in the back of your truck to help you judge your purchase.
Your Loan
Not only do you want to get the right car, you want to get the right car loan. It is wiser to have your financing lined up before you go to a dealership. You can set up used car loans at any bank: but one often overlooked type of used car loan is to go to a credit union, where you can generally get lower interest than at a major bank. For more information on loans, (and we wont even try to sell you a loan!) visit www.theguideto-carloans.com.
In the End
You will be the one driving. Make the decisions based on your needs and what you feel is right. Though it is great to get lots of advice (and sometimes it helps to take someone savvy about mechanics along with you to check out the car), considering these facts will help make you capable of choosing the right car.
Tags: Assessing Your Needs, Behemoth, Budget Car, Buying A Used Car, Car Mileage, Extra Money, Four Wheel Drive, Gravel Road, High Mileage, Limiting Factor, Mileage, Neon, Odometer, Oil Changes, Suitability, Suits, Warranties, Warranty, Wheel, Window ShoppingRelated posts
Scouting for price-cuts is a smart habit. And buying used cars is no exception.
No wonder why many people are enticed to buy used cars. In fact, statistics show that the number of people who buy used cars is three times more than the number of people who buy new cars.
But then again, not all used cars are maintained equally by their previous owners. Hence, it is important for those who wish to purchase used cars to consider the different factors that might affect the performance and the condition of the car.
Here is a list of some tips that will help buyers in choosing their used cars.
1. Safety features should not be taken for granted.
Being old is not an excuse to justify the used cars lack of safety features. Every car, whether old or new should have safety features in order to prevent some possible accident while driving.
Every used car should still have its anti-lock brakes working properly and airbags that are still intact (for cars made after this requirement).
2. The mileage is important
This is because the amount of mileage reflects the way the car has been used by the previous owner. Moreover, the mileage will denote the used cars age.
Normally, an average driver will drive 12, 000 to 15, 000 miles in a year. In this way, the buyer will be able to estimate how old the car is.
3. Over-all check up is important
Before buying the car, the buyer should first conduct an over-all check up on the condition of the car, from its exterior parts up to the very detail of its interior portion.
Being old does not mean any signs of wear and tear will be an excused. Hence, people should be aware what they are paying for.
4. Test drive
There is no better way to know the condition of the car until it has been test-driven. Hence, a buyer should make all the effort to do a test drive first before he or she jumps into conclusion.
5. If possible, the over all service history of the car should be checked.
This will provide the buyer solid information regarding the true condition of the car. Here, the buyer can detect if the car has so many technical problems before, if it has been into an accident already, or if the owner was good enough to provide the proper maintenance for the car.
Knowing these things is extremely important to avoid possible risks in the future.
Boiled down, inspection is mportant especially if the transaction concerns money. Cheap is no substitute for being a smart buyer.
Tags: Airbags, Brakes, Buy Used Cars, Buying Cars, Buying Used Car, Buying Used Cars, Car Tips, Excuse, Habit, History Of The Car, Interior Portion, Mileage, New Cars, Safety Features, Service History, Smart Cars, Test Drive, Three Times, True Condition, Wear And TearRelated 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
For a woman buying a car alone, the experience falls somewhere south of having a root canal on the pleasure scale. Female car buyers often have to endure a subtle and sometimes not so subtle discrimination. They find themselves being shown cute cars. Salespeople discuss the choice of paint colors rather than the gas mileage. At worst, women are asked if they want to wait for their husbands to arrive before making the big decision. So, how does a woman purchasing a car on her own defend against this sort of behavior? Education. Learn what you need to know before you head to the showroom.
First, decide on the car you want. Consider what you are looking for in a vehicle size, style, and features. Use the websites of the major car manufacturers to build your dream car.
These programs will even given you the sticker price of your ideal vehicle. You can ignore this price during real negotiations, but you’ll have a idea of the general price range of the vehicle.
Still unsure about what you should buy? Look at car comparison websites such as Edmunds and NADA Guides that can help you compare cars side-by-side as well as offer reviews and guides for car buying.
Once you have found the perfect vehicle, its time to research the price. Using the internet, you can find out what the dealers invoice price is for your car. This is the price you want to work with, as it is the actual dealer cost.
In addition, check to see if there are any incentives available on the car. These can be incentives such as low-interest financing or cash back. There may also be incentives to the dealer from the manufacturer. That means that if the dealer sells a specific model, they receive a rebate. This means that a dealer can sell at or below invoice and still make a profit on the car.
Many websites will even give you information on actual selling prices of similar models in your area. By analyzing this information, you will be able to determine a reasonable sales price for the car you want.
Now that you have found your car and know how much you should reasonably pay, head out to the dealer. You can now negotiate effectively.
When you arrive, make it clear to the salesperson that you know exactly what you want and exactly how much you are willing to pay. In short, there should be very little negotiation. Make your offer and stand firm. You will likely get the usual, I have to check with my sales manager runaround.
If the dealer will not meet your price which you know is reasonable go to another dealer. In some cases, you can even get dealers to bid against each other. With a little homework beforehand and a little persistence at the dealership, you’ll have a better experience buying a car.
Tags: Addition Check, Behavior Education, Car Buyers, Car Buying Tips, Car Comparison, Car Manufacturers, Cute Cars, Dream Car, Edmunds, Gas Mileage, Incentives, Invoice Price, Mileage, Nada Guides, Paint Colors, Purchasing A Car, Root Canal, Salespeople, Sticker Price, Subtle DiscriminationRelated posts
Key Points to be Considered While Buying Cheap Used Cars
Everyone would like to get a cheap used car at a good condition, but before doing so there are many things to consider. First and foremost thing is to ensure that if the car can be used for long travels daily, all the members of the family, as the needs and requirements differ from person to person.
Once the used car selected satisfies the requirements, the search is further more narrowed down to the category of the car like the features, colors and brands. If the person is not very choosy, he will end up buying a cheap used car easily, but if he is choosy it may take time to get such a car. The safety and reliability features should not be overlooked at any cost as the safety of the person and the whole family is at stake. It is good to check the safety aspect in various ways and with varied collision situations before buying a cheap used car.
Once all the requirements of the person get fulfilled in choosing a cheap used car, the next important aspect to be seen if it is in a good working condition, this aspect is not checked it can cost more on maintenance and repairs. There are certain techniques to check the quality of the car. The used car can be checked with the help of the vehicles history or a personal inspection of vehicle to see if any of the parts are damaged, if it had been repainted, if it has any bend or corrosion, if the engine oil is in a good condition, if there is a blown gasket, wear and tear of all the tires etc. The important things the person buying a used car has to check one if the car he is purchasing has met with any kind of accidents or if the car is reported as stolen, all the details about the previous owner, if the mileage is rolled back or not etc.
Cheap used cars buying sources:
Cheap used cars in good condition can be purchased from car dealers who sell used cars or from government auctions or from police used car auctions etc. People who buy new cars dispose their old ones with the car dealers and these car dealers in turn sell the old used cars to people who are looking for cheap used cars. Before buying cars from the dealers it is good to research a little bit on the car values and offers so that the cars can be bought at a fairly cheaper price.
Some people buy cars using car loans and for some reasons do not make payments on the right time. The financial institutions repossess the cars for the money over due from persons, who got the loan. In such cases, the car may even be a brand new one. This can be utilized by the person who is looking for cheap and good used cars. Some may even opt for used police cars, as they may be in very good condition.
Tags: Accidents, Buying A Used Car, Car Auctions, Car Dealers, Cheap Used Cars, Corrosion, Engine Oil, Gasket, Government Auctions, Important Things, Many Things, Members Of The Family, Mileage, Person To Person, Personal Inspection, Reliability Features, Safety And Reliability, Safety Aspect, Stake, Wear And TearRelated posts
Some Tips On How To Obtain Cheap Student Car Insurance
Finding affordable car insurance for students can be something of a challenge. Insurance companies tend to classify students as higher risk along with teens and new drivers. And of course, most students need all the savings they can possibly get. Unfortunately, car insurance isnt cheap a typical student pays anywhere from $3,500 to $13,000 in insurance premiums in a year.
Obtaining a lower rate for your car insurance starts when you still in school you can often get a discount just by providing your most recent school report card. Most insurance companies consider students who have a grade B average, to be lower risk drivers. If your school or college offers a drivers education course, take the class and let your insurance company know.
If you have membership in any school or professional organizations, let your insurance company know. Some insurance companies offer significant discounts for membership of various alumni, fraternity and student associations; for example the Golden Key National Honor Society.
Let your insurance company know if you are also working while attending school. If you work close to your home and use your car primarily to go to and from your workplace, your insurance company will generally offer a discount. Students who live close to their school or college and generally dont drive much may be eligible for a low-mileage discount.
It is also less expensive to add a students name to an existing auto insurance policy, rather than take out a new one; although if the student is the primary driver or owns the car, they may be required to have a separate policy.
Please see our list of recommended insurance quote providers below to get free insurance quotes from many providers. These sites also offer pages and pages of free insurance information. Free quotes are available everywhere but these sites offer quotes from multiple companies. This way you are sure to get a look and the 3 to 5 cheapest possibilities and you can save more money.
Tags: Auto Insurance Policy, Drivers Education, Education Course, Fraternity, Free Insurance, Golden Key National Honor Society, Insurance Companies, Insurance Company, Insurance Premiums, Insurance Quote, Insurance Quotes, Key National Honor Society, Mileage, National Honor Society, Professional Organizations, Quotes From Multiple Companies, Risk Drivers, Student Associations, Student Car Insurance, Typical StudentRelated posts
Looking to buy a hybrid car? Are you scouring the web for which are the best hybrid cars, what are the facts about hybrid cars, and perhaps even what are hybrid cars for sale on eBay?
Just hold on a moment and slow down. Of course, a hybrid car is a popular choice right now. And you’re thinking that getting a hybrid vehicle is all about doing your bit about global warming and save money on fuel. It’s a feel-good, win-win situation isn’t it?
But is this true and is that all there is to it? Well, let’s just say that there are at least seven good reasons why you should not buy a hybrid car.
Do you need a hybrid car?
Have you thought about your purpose of using a car at all? Who, and how many passengers will be using the car? Driving in the city or in the country? Perhaps public transport, a bicycle or an electric scooter could fit your needs just as well.
Just because we’re all used to the comfort of our air-conditioned boxes on wheels does not necessarily mean we need to continue the habit, does it? You don’t really need a car, hybrid or other? Then the best thing you can do for the environment, and for your pocket, is not to buy one.
Would your hybrid hold its value?
OK, so you know that hybrid car prices are above average but are inevitably coming down with a rapidly increasing demand. You also know that any tax incentives that may apply now may not continue forever. What does that mean? It means that you will not be able to sell your car at a premium price later, even though resale value is good now. So if you buy a hybrid because you think it will hold its value, don’t count on that being true in five year’s time.
Getting your money back by saving on fuel?
This depends on your mileage and the model hybrid. Even in the best scenarios you will need five years before you recoup your purchase price. Don’t buy a hybrid for economic reasons only.
What are your alternatives?
Hybrid car technology is only one means of saving the environment and your money. Cars that drive on liquid petroleum gas (LPG) or natural liquid gas (NLG) do this too. Modern diesel vehicles run much cleaner than older models and biodiesel fuel is emerging rapidly as an alternative, not to mention ethanol blends.
So, if you cannot justify buying a hybrid car compared to what’s locally available to you in alternative fuels, don’t buy one.
Mechanical assistance?
Many mechanics are not yet trained in maintaining a hybrid vehicle. Could you get yours repaired and maintained locally?
Hybrids ain’t hybrids
The hybrid car range includes SUVs. How many people really need one? Buying a hybrid to roll over the off-road environment seems a little incongruous. Don’t buy one unless you absolutely cannot do without it for good reasons.
Saving the environment?
You are probably like most people who buy a hybrid car because they want to do their bit about global warming. Right? Good for you. Hybrid cars are part of the future. But…
You cannot buy a sustainable world. Selling cars, whatever fuel they use, involves vast quantities of energy and emissions in mining metals, transportation, production and distribution. Whereas it is better to drive a hybrid car than a gasoline-driven one, don’t expect to save the planet from global warming just by doing that.
It’s a change in thinking that’s needed, from seeing ourselves as independent consumers, to interdependent people who live in relationship to others and our environments. Once you and I know that we’ll act more wisely in choosing Earth-friendly technologies that we really need.
Cannot afford to buy a hybrid? So what? Reach out to someone else who needs you today or volunteer in your local environment protection group. That’s really putting your foot down in making a difference!
Tags: Best Hybrid Cars, Bicycle, Car Prices, Car Technology, Cars For Sale, Ebay, Economic Reasons, Electric Scooter, Global Warming, Habit, Hybrid Car, Hybrid Vehicle, Mileage, Premium Price, Public Transport, Resale Value, Saving The Environment, Scenarios, Tax Incentives, WheelsRelated posts
While it is possible to get a great deal and a bargain car at an auction, buying a used car this way isnt always the ideal way to buy a car, there are better ways.
If it is your first time of buying a used car or you know very little about cars, then buying from an auction isnt advisable. Perhaps the biggest problem with purchasing a car from an auction is the fact that that you have very little cover to fall back on if there should be any problem with the car. This is usually due to the auction house issuing a disclaimer, which many do, which states something such as sold as seen.
While many goods are covered by the Sale of Goods Act, some of the cleverer auction houses can get around this by altering the conditions of the sale by taking away the buyers rights under the Act.
If you do wish to purchase a car from an auction then it is advisable to visit an auction house several times before actually deciding to bid on a car. This way you can get used to the terminology used and the way auction houses work. It is also advisable to take someone with you who knows something about cars when you do decide to buy.
Most auction houses will hold preview days where you look at the car up for auction prior to bidding. This will give you a good chance to have a look at the vehicle.
You would be wise to consider having a vehicle data check done, which is a service that checks a vehicles history. It will show up really valuable things such as whether the car has been stolen, or the mileage tampered with etc.
Finally, it is essential that you know your spending limit. Dont ever be tempted to go over that limit no matter how good a deal something may seem.
Tags: Auction Bidding, Auction Car, Auction House, Auction Houses, Bargain, Bid, Buy A Car, Buying A Used Car, Car Auction, Car Buying, Cars, Checks, Good Chance, Ideal, Mileage, Preview Days, Purchasing A Car, Second Hand Car, Several Times, Tampered