12.18.07
Posted in General, Car Leasing, Buying versus Leasing, Financing, Auto lease at 8:29 pm by LeasingRus
Sure, approximately 80 percent of auto consumers either pay cash or finance their purchase with a loan, but you’re considering joining the other one-fifth of intrepid consumers willing to forgo ownership for a new set of wheels and the short-term benefits that leasing provides.
Maybe you’re self-employed and can write off your leasing payment as a business expense. Or maybe you’re trying to get into a luxury model for less upfront cash. Or maybe you demand the latest safety and technology innovations and don’t want to be saddled with a 60-month loan term. Or maybe you just like driving a new car every couple years.
“The question you have to ask yourself is, ‘Is there a special reason I need a new car every few years?’” says Art Spinella, president of CNW Marketing Research in Bandon, Ore. “For most consumers, the answer is no.”
But maybe you’re in the minority. Maybe your answer is yes.
It’s true that leasing has diminished in popularity as automakers have offered low-interest financing and cash-back offers to buyers. Leasing rates dropped from 29.2 percent of retail car sales in January 2001 to 23.2 percent in February 2006. Read the rest of this entry »
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10.06.06
Posted in General, General Leasing, Car Leasing, Financing, Auto lease at 6:13 pm by LeasingRus
Instead of buying a car, what if you could just rent one for regular use? Car rentals are popular in several countries, but this is about auto leasing — renting out cars on contracts that can last three years.
“Globally, it’s not very important for many customers to have a car registered in their name. In India, a car is still considered an asset though logically the value of the car goes down drastically as soon as it is out of the showroom,” says Rajiv K Vij, CEO, Hertz India, which started leasing cars in India about eight months ago.
Read the rest of this entry »
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08.02.06
Posted in General Leasing, Car Leasing, Buying versus Leasing, Financing, Auto lease swap, Car lease swap at 4:48 pm by LeasingRus
All auto leasing individuals should know that leasing a new car gives you a lower monthly payment than buying that car.
But buyer beware: Make sure you know about all the fees you might have to pay at the end of the lease, that’s if you opt to ride out to the end of your auto lease, or decide to auto lease swap.
Some consumers would be shocked at what they would have to pay if they turned in their auto lease to the dealer or leasing company early - known as auto lease termination. Even though you may have taken good car of the vehicle, returning a car lease early can be a costly experience. As outlined in all lease agreements, the disposition fee can be costly, and doesn’t cover any of the wear and tear you place on your vehicle throughout your lease term. The wear and tear fees alone can run past triple the amount of your disposition fee, and can be quite a sticker shock. This may include any dents, cracked windshields or dings, scratches, etc. So while you think the disposition fee on your auto lease was pricey, ensure you understand what the additional costs would be on the wear and tear.
Do your research a year or two before the end of the auto lease, as you may find an option to break your car lease through an auto lease swap; whereby finding another consumer to transfer the auto lease too and will assume the lease payments and contract.
Whlie auto leasing has its advantages over buying a car, ensure you understand fully the costs associated to the lease agreement upon returning the vehicle. FInd out what you’ll be charged for returning the auto lease early, and at the end of the lease when you terminate the auto lease. Find out the additional costs on wear and tear if you can, or what’s considered normal wear and tear on the vehicle.
Remember, before you opt to auto lease as your preferred form of financing that vehicle, ensure you understand the full scope of the pros and cons of leasing. Download the two ebooks available to consumers to help you make a better and informed descision. 1. 2006 Auto Leasing for Consumers and 2. Auto Lease Swap - How to Get Out of an Auto Lease Early
*Feel free to comment on our articles and posts.
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04.21.06
Posted in Car lease calculator, Financing at 3:20 pm by LeasingRus
How much will my car lease payments be? How do you calculate a car lease? There are a few things you need to consider when calculating the car lease and how much your payments will be. You need to know the car lease MSRP, the final negotiated price, down payment, trade-in value, and tax, length of lease term, car lease lending rate and the estimated value of the car at lease end. There are various online calculators for car lease that can help you, but you don’t need to be a mathematician to figure it out. There are only a few numbers you need to know to calculate your car lease payments. These numbers, as mentioned above, can be supplied by your car dealer or leasing company. Here’s the jist on figuring out your car lease payments - though you need to do your own calculation unless you have your own lease calculator.
- First, figure out the monthly depreciation of the vehicle. Subtract the residual value of the vehicle from the cap cost. Take the difference and divide it by the number of months you plan to lease the car. This calculates the monthly depreciation.
- Next figure out the monthly finance charge. Add the residual value and the cap cost, then multiply that by the money factor (dealers are not required to supply this number).
- Lastly, add the monthly depreciation and the monthly finance charge, and you have calculated your monthly car payment.
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