Archive for January, 2008
The best way to get a good car lease deal is to make sure that you know all the car leasing secrets that there are in the market. Of course, you might not become an instant expert when it comes to shopping around for a good car lease deal. But knowing a few of the facts will definitely help you get the best deal there is for you. Here are a few things that you should know:
What’s a car lease deal?
One of the first car leasing secrets to know is that there are two types of car lease deals. These are the closed-end and open-end lease deals. A closed-end lease is one where you can return a car at the end of a lease contract and then simply walk away, meaning that you don’t own the car at the end of the contract. This is actually the more popular choice for people who lease vehicles. Open-end lease is actually more for commercial business and can be a little more complicated. The market value of a car is determined with this kind of deal and then the residual vale of the car is pre-determined. This means that a person who goes for this deal will pay the difference which can be quite pricey.
How is a lease calculated?
You might be wondering if there is some kind of difficult formula that the dealers use when they calculate your monthlies. The car leasing secrets truth is that it’s as simple as your ABC’s. You just need to know all the figures that you need for a simple equation. First, get the depreciation value of a car by subtracting the residual value from the cap cost. You divide the difference by the number of months you plan to lease a car. Then for the monthly finance charge, add the residual value and the cap cost and then multiply that by the money factor that can be given to you by your dealer if you ask politely. The result is the monthly finance charge. Add the monthly depreciation and the monthly finance charge that that is your monthly car payment. This may vary across different vehicles.
What are the Advantages?
Two advantages to think about are lower monthly payments compared to a purchase. These payments can be up to 60% less than if you purchased a car on monthly terms. This means that you can drive a much nicer car if you lease it. Upfront costs are also lower, with some down payments starting at zero, depending on the car. Paying a larger down, however, does not always mean that this will lower your monthlies.
What are the Disadvantages?
The car leasing secrets that most dealers will not tell you about usually involve many different fees. This includes early termination fees if you want out of a contract before it ends; insurance costs that will require you to pay more than you are used to paying for insurance; car mileage fees since leases will only allow you a certain annual mileage limit; and so-called “wear and tear” fees that are used to fix up any damages done to the car during the lease. These fees can run up to a hefty price if you are not careful.
These are the basic car leasing secrets that you should know about before you get yourself into a lease contract. Understand them well and you should have no trouble with a lease at all. Depending on your preferences, you can get the best car lease deal with a little knowledge and negotiation.
When leasing a car, what a car leasing guide will not show you is how you are supposed to understand how much a car is actually worth. The problem with most people who enter a lease is that they are more concerned with the monthly payments, and this is the reason that many people end up experiencing really bad deals. Now here is a car leasing guide referring to how you should treat a lease.
A car lease is basically something that you are not paying full value for. You are actually spending for the projected loss of value. In other words, you are paying for the depreciated value of the car. The car will be in your use for a typical 2 to 3 years. Let’s say a $30,000 will lose half its value in 3 years. Now, whatever remains is what is known as the residual value. This leaves you with a smaller monthly payment because you are paying back half of a car’s value.
Now for the fees; let’s look at mileage. First is the lease acquisition fee which is almost always about $600. This is charged by the automaker or finance company that is underwriting your lease. These are not always stated in the contracts and therefore are a perfect opportunity for dealers to charge even more than that. Then there is the security fee which is one month’s lease payment, but this one is refunded eventually. Turning in the car at the end of a lease term will also mean that you experience even more fees. There is the lease disposal fee which is almost over $400. Then there is the charge per mile of all mileage you may have used in excess of the limit. Then there is what is known as "wear and tear" fees that will cover the small mechanical and cosmetic fixes that are needed. This car leasing guide doesn’t show all the fees that are involved, so make sure that you question your dealer intensely to understand what you are getting yourself into.
With the New Year comes all things new and great. This is particularly true when referring to the new serving from the people over at Audi, who just recently displayed one of many car lease specials headed in your direction. We are talking about the new Audi R8 V12 TDI. Spotted at the recent Detroit Motor Show, this has got to be one of the most extreme machines ever built by any manufacturer. It’s the worlds first Super Car that runs on diesel and do not be fooled; it’s rumored to be a lot faster than many petrol powered cars in its class.
The twin-turbo, 6 liter V12 monster belts out 439 horsepower and this is only one of the most thrilling developments. It can hit 0 to 62 miles per hour in 4.2 seconds, much faster than its gas powered sibling and this is the surprise because, remember, it does run on diesel. In fact, the diesel feature is what ultimately stole the show.
There are numerous benefits of this car running on diesel, the first being that there is a definite change in emission, a dramatic decrease to be more specific. The R8 sports a common-rail fuel injection, and a catalytic converter that injects AdBlue into the exhaust which decreases the emission of nitrous oxide. This is definitely a car from out of the future as it goes on to meet various emission rules that haven’t even been put into place in Europe and the Americas.
Looks are not something to be scoffed at either. This future of car lease specials looks even more aggressive than ever before, even more than the production version. Expect a deeper front bumper, side skirts with carefully placed notches or holes for cooling, a rooftop glass panel that gives you a panoramic view of everything above, and an NACA duct that literally feeds air to the engine. Inside, the R8 has a 3-armed steering wheel that houses the start-stop button and Drive Select switch that Audi is known for; now this switch is particularly important as it allows drivers to choose between 3 modes. These are Dynamic, Sport or Race modes which are used for the engine, transmission and magnetic dampers.
Unfortunately, the Audi R8 V12 TDI is not out in the market just yet and there have been no official announcements of when it will be available to the public. There are rumors that the car lease specials on this baby will most probably see the market in 2009. But before that, one can sit and dream about the marvel of a machine that it is. And did we mention that it runs on diesel?
It seems that most companies these days will give a best car lease deal at almost exactly the same price, regardless of whether or not you get an SUV or a mid-sized sedan. What you need to figure out is how you will use the vehicle for in the first place, keeping in mind the size of your family (if you have one), the kind of storage you anticipate for road travel, and just how often you will use this best car lease deal.
Well, you aren’t alone and this is actually a common dilemma. The simple fact is that men like cars and women love SUVs. Now, since fuel is a huge issue these days, you may actually want to rule out investing in an SUV first. Then look at all the sedan entries that are available to you. Got a huge family? Here is another solution: get a minivan. It will solve your storage problem and its sliding doors will help people get in and out of the vehicle quicker than a sedan. A minivan can hold just about the same as any mini-SUV but if you are really looking for some outdoor action, the latter may be your initial choice. Just make sure it doesn’t guzzle too much gas or else you won’t be using it as often as you’d like. As for the sedan, if you are single or just have a couple of kids, this may be the best car lease deal for you. Put simply, check your situation, weigh all your options, and your next best car lease deal decision should be a cinch.
If you don’t know the advantages of leasing or hiring over buying yet, this car leasing guide lists them down right here. Remember to weigh the advantages and disadvantages before getting into it, though. It’s a matter of preference when signing any leasing contracts. They can last you from anywhere between 3 and 5 years which is why a lot of thought has to be put into it.
– Lower Cost
– Conservation of capital
– Less or even no maintenance
– No disposal costs and therefore no problems
– Mileage limits which means you have to estimate annual usage
– Comprehensive insurance is required
– Not much of a choice when it comes down to car specifications
– Replacement vehicle plans must be made promptly
– Look out for the bargains; you won’t regret it
– Avoid adding extras when it comes to accessories