05.12.06
Posted in Articles, Car Leasing at 1:29 pm by LeasingRus
The new vehicle leasing market is heating up as leasers offer more options and new-car sales decline due to rising interest rates.
Zero percent financing and large cash rebates were the bait that brought car shoppers into dealerships the last few years. Now, instead of cut-rate financing, cut-rate on car leases are the attraction.
The way auto leases work, consumers pay a monthly amount based on the difference between the car’s value when it’s new and the “residual” value at the end of the lease. Automakers have their own “captive” financing firms, and that’s where some of the deals can be found.
“Interest rates are climbing and it’s easier to provide a subsidized residual that lowers the payments,” says Tarry Shebesta, president of Lease Compare. “Obviously the captives are pushing their programs on certain cars that they were once offering zero percent financing on.”
Many automakers are scaling back sales incentives such as cash rebates and low-cost financing. In response, leasers of all types are offering flexible car leasing periods and bargain prices in order to move vehicles.
The effort to move cars off the dealer lot is making the options more attractive in a competitive rising-interest-rate market. Auto leasing provides what a traditional loan can’t, a higher-end car at a lower monthly cost.
Lease payments are lower than purchase payments because they’re based on the purchase price minus the residual value, the amount the car can sell for when it comes off a lease. It also allows consumers to avoid a long term investment on a depreciating item.
In a recent study by J.D. Power and Associates, the car-leasing market sat at a four-year high, with vehicle leases accounting for 21 percent of the new-vehicle retail transactions from December 2005 through February 2006.
“One of the big breaks is an increase on the luxury vehicle side. The tilt is now more on leasing than on loans,” says David Lo, manager, financial services, for J.D. Power and Associates.
Car Leasing offers abound
“The car market has taken a dip in the last 12 months. Dealers who were once selling 300 units a month are seeing their sales drop to around 75 units sold per month,” says Keli Hinnant, vehicle leasing supervisor at Navy Federal Credit Union.
Hinnant says that many captive leasers and their parent manufacturers are competing against credit unions and independent leasers to win leasing customers.
Consequently, Hinnant says that attractive interest rates offered by Navy Federal sometimes cannot beat what captive leasers are offering potential customers.
“The manufacturers have the luxury to play with the residual amount. We have to protect our assets. Dealerships are selling fewer cars — in the new car market — so they are trying to subsidize that by pushing financing at the dealer level.”
However, a captive lessor may not be able to provide other incentives like shorter leasing terms or tax breaks.
Elaine Litwer, legislative coordinator for the National Vehicle Retail Association and owner of EL Leasing Corp., says that credit unions and independent leasers often provide better terms and mileage options to customers than captive lessors.
“You will find that if a consumer doesn’t want to lease a car for the average 36 months, but rather wants 24 months or even 18 months, the leasers are providing those options. It’s not a cookie-cutter market anymore.”
Well, with consumers demanding lesser car leasing terms of 24-18 months, makes sense with the growing popularity of people seeking to take over another individuals lease part way through the full lease contract. The concept of get out of a car lease is to transfer a lease to another consumer who wants to take over the lease. It’s growing in popularity and provides some level of comfort and control for those stepping into a new lease contract - however not all dealerships or leasing companies will allow you to transfer your lease.
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05.06.06
Posted in Transfer a car lease, Car lease calculator at 4:53 pm by LeasingRus
Many consumers who’ve financed their vehicle through leasing that I’ve spoke to have eluded to the fact they’ve considered transferring their car lease. But why? Well, not for the fact that car leasing is a bad option, in fact it’s their preference of choice over buying with todays depreciating value of automobiles. Their main reason for wanting to transfer a car lease is due to personal or family obligations. I’ve heard people talk about transferring their lease because of wanting to save more money with considerating of purchasing a new home, or for a new baby is on the way, or simply financial obligations have popped up where the need for the money is needed. Then again, there are those people who simply want to upgrade to a newer model of vehicle part way through their lease.
Car Lease Transfer - Consider This First
Before considering to transfer a car lease, do the math first. Use one of the many online car leasing calculators to figure how much it will cost you if you transfer your car lease, or how much a new lease will be if you’re considering upgrading to a newer lease. To exit a car lease, or break a lease, its important for the consumer who’s taking over the lease to understand the benefits, and disadvantages of why they should take over a car lease. But before a consumer considers terminating a lease, they should understand any stipulations by the leasing company and if any penalties are required to be paid. Though to avoid any problems in the future from paying stiff penalties from exiting your auto lease early, ensure you consider all the options why you first negotiate the car lease.
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Posted in Articles at 12:22 pm by LeasingRus
A bid to combat the poor image of the car leasing industry is being launched by Altrincham-based All Car Leasing. (Ok - who even said auto leasing has a poor image? That’s news to us and the number of happy leasing consumers I’ve spoke with - ok, let’s hear more what they have to say)
The company aims to call on the national network of Chamber businesses to help develop a franchise system. In an industry not constrained by regulations, competition is fierce, and the growth of fly-by-night companies is affecting the standing of bona fide firms, says Matthew Cragg, who started All Car Leasing seven years ago.
The firm, which has a staff of seven, and a turnover of £600,000 a year, experienced exceptional organic growth in the early years. But one-man-band operators with limited overheads and financial support, combined with the internet have hit established firms, he says.
Well, see more on how the car hire boss aims to drive out rogues in car leasing.
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05.02.06
Posted in Buying versus Leasing at 6:48 pm by LeasingRus
We’ve heard it time and again and a common question consumers ponder when they get into the market to seek out a new ride. Should I lease a car or buy a car? What option is financially best for me? Well, remember, whether you lease a car or buy a car, there are options in the end to transfer your car lease, or sell your car. Transferring a car lease entails finding someone to trade a car lease too, or simply put, another way of how to get out of a car lease and transfer the lease to another consumer.
Buying a car then wanting to sell it - well, this is an option we’re all familiar with. However, the latter concept of getting out of a car lease is somewhat new and a popular alternative to those who lease a car. Here’s what you need to know before leasing or buying a car (Yahoo):
Car Shopping Checklist
Mileage Statement
- Has the mileage of your trade-in been entered?
- Are all the blanks filled out?
New Vehicle Mileage
- Is the mileage statement on the new car the same as on the odometer?
- Used Vehicle Mileage
- Power of Attorney
- Finance Contracts
Is the VIN number the same on the buyer’s order and finance contract?
- Is the figure for the amount you intend to finance the same on both?
- Are the finance charges the same as you agreed?
- Are there other charges to which you have agreed?
- Check the other fees normally associated with a new car purchase.
- Is the annual percentage rate as agreed?
- Do the amount and number of payments reflect the total number of months you have agreed to pay?
Warranty Agreements
- Have you read the warranty?
- Do you understand what is and what is not covered?
- Are the agreed exceptions in writing?
- Has the warranty been signed by management?
- Did you receive two sets of keys?
- Have you received the owner’s manual and maintenance record books?
- Has the dealership arranged for the license and registration?
- Do you have all registration records?
- Have your arranged for your insurance?
- Is your insurance form in the glove compartment?
So yes, there is quite a bit to think about before signing on the dotted line for your new lease or new purchase. Visit AutoTraderLeaseGuide.com’s education section on car leasing to get a full 101 to 401 overview of the things you need to know about leasing a car (and buying a car) before setting foot into the dealership. The more you know, the more power you have at getting the best deal and discovering which financing option - leasing a car versus buying is for you.
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Posted in Get out of a car lease at 6:28 pm by LeasingRus
TheSteet.com; Lose That Car Lease - You leased a car, and now you hate it. Or you can’t afford it. Or you just found the car of your dreams, but your current car lease runs for two more years. That’s the great disadvantage of leasing a car: You’re stuck.At least, you were stuck, until a few online companies came along to provide a marketplace to help people get out of their car leases - LeaseTrader, Swapalease and Auto Lease Busters.
These online marketplaces for car leases helping people get out of existing car leases and transfer a car lease. On the other side of the transaction, people looking for a shorter-term lease, with no down payment, can find good deals by taking over an existing lease.
These car leasing websites work in a similar model - and as Terry Savage put it, they ”work something like a dating service”. Those people looking to take over a car lease can search for free on either site. You can search in multiple ways, such as by model, dollar amount of the lease or geographic location. Once you’ve found a car lease and want to contact the seller of the lease (some sites charge a fee for this, while others do not).
That’s basically the concept if you’re seeking to get rid of your car lease and find others to take over the lease. A great online model that applies to many other businesses - bringing buyers and sellers together with similar needs.
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