Buying Versus Leasing A Car
by: Jeff Neilan
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 we?ll 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. It?s 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. Don?t 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 car?s 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 isn?t based purely on bottom line numbers. And this is fine. It?s 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 haven?t used all of your miles, you don?t 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. Don?t 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 don?t give back the money you save in monthly payments to your insurance company.
About The Author
Jeff Neilan worked for many years in the automotive industry as a salesman, finance manager, new and used car manager, and general sales manager. With Jeff's working knowledge of car dealerships, car sales, and financing you'll find his articles on getting your best car deal insightful and rewarding when purchasing your next car. Please visit http://www.acarbuyersguide.com for more of Jeff's articles.
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What Your Car Audio Can Teach You About Marketing
What Your Car Audio Can Teach You About Marketing
by: Mike Street
Stand next to any road, and every so often a young person will go by with the latest rap CD blaring. If it happens to be a cold day, he (it is always a he) may have the windows up. Then, all you will hear is the thud of the overworked bass speaker in the back. After he turns 30, the young driver probably won?t even be able to hear that, if he continues this unwarranted assault on his ears.
That big bass bin can?t handle the vocal sounds, and the front speakers would melt if they had all those thumps going through them. So the car audio separates out the various frequencies using filters, sending only the bass to the big bins in the back, and only the higher and more delicate sounds to the little speakers at the front. Both, and especially the bass, are then amplified so they are audible in the next county.
Marketers have borrowed the same terminology as a way of looking...
What Your Car Audio Can Teach You About Marketing
Car rental > What Your Car Audio Can Teach You About Marketing
Tactical Driving Tips
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The winter and driving shopping season is right around the corner.
We need to remember that in the winter, with snow and freezing
conditions, our driving tactics need to change. Accidents will
occur on the snow and ice that wouldn't on dry pavement. This
article will cover the important things to remember and how to
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The most important thing that everyone needs to remember is
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You need to drive slower which will give you more time to slow
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yourself more time by starting to slow down earlier than usual.
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Slow down everywhere...
Tactical Driving Tips
Car rental > Tactical Driving Tips
Buying Versus Leasing A Car
Buying Versus Leasing A Car
by: Jeff Neilan
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 we?ll 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. It?s 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...
Buying Versus Leasing A Car
Car rental > Buying Versus Leasing A Car
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Are you thinking of buying a car but hesitant to approach your local car dealer because you are not sure about the processes of buying a car as well as wary of possible dealership scams? Do you feel that your knowledge about cars and getting great deals is not good enough and you want to learn more about this matter? Then reading these tips will enhance your understanding about dealership scams.
The car dealer and his trade
To have a proper understanding of car dealership scams, you must first have an idea of the car dealers themselves and how they go about their trade selling cars. First of all, the car dealer will not give you a price quotation as much as he possibly can. This is because the tendency of the buyer would be to go to another dealer and the other one will probably offer a lower price thus, the first dealer loses the buyer to the second dealer. To increase their chances of getting...
Dealership Scams Out There
Car rental > Dealership Scams Out There
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Car accidents that cause injuries have happened virtually since automobiles were invented.
The first recorded accidental injury occurred in 1869.
An Irish woman named Mary Ward was thrown out of the steam-powered carriage she was riding in when it hit an especially deep rut in the road.
She was immediately crushed by one of the wheels, her injuries causing an instantaneous death.
Her cousin had actually been the inventor of this new type of vehicle, in a cruel example of irony.
Over the last 25 years or so, car accident injuries resulting in deaths have declined an impressive 50% worldwide.
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Car Accident Injuries ? Causes and Preventive Measures
Car rental > Car Accident Injuries ? Causes and Preventive Measures
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So let?s get straight to the point. Is your website breaking the law? Well, in October 2004 we reached the deadline of the Disability Discrimination Act (DDA), 1995 in which the DDA ordered service providers to make "reasonable adjustments" to the physical features of their premises to ensure the services they provide are accessible to people with disabilities.
The 175 page code of practice for the DDA published...
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Car rental > Is Your Website Breaking The Law?
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If you invest in real estate, you need cash to buy houses. Even if you have a full bank account and great credit, you?ll eventually run short on funds - or short on time to obtain a loan - for the next deal. Private lending is the answer. It is a bottomless pool of readily accessible funds: whether you have great credit or poor; whether you have cash reserves or not.
?Private...
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Car rental > No Money Down Real Estate - Fund All Your Deals With Private Lending!!