So you have decided to lease your car or may already have a leased car. You made sure you purchased the correct car lease insurance and your leasing insurance covers everything right? Unfortunately not.

Gap insurance covers the gap between what you owe on a car and what it’s worth if you happened to total your car in a covered losses such as accident or theft. The types of losses covered and the extent of the coverage may vary according to the insurance company, so make sure that you clarify what’s covered before availing the gap insurance.

For car leasing, gap insurance is a must, especially for the no-down payment leased cars. As much as the car lease insurance is important this, however, does not cover a major gap that is in  every leased vehicle. The necessity of the gap can occur is you totaled your leased car in an accident. How it works? Read further below.

Your leasing insurance will cover the depreciated market value at the time of the collision.  Usually, the car lease payments are lower when compared to buying one. Since all new cars depreciate the most in first few years, the market value  of the leased vehicle is lower between what is still owed on the car lease contract.  But, you are still responsible for that difference in what the insurance company will pay and what is still owed on the lease… that amount or “gap” is what gap insurance covers.

• Carry your car lease insurance company’s comprehensive and collision coverage in order for the gap insurance to pay out.
• Check to see if your car lease down payment is covered in the gap insurance.
• Be aware of what your deductibles are on your car lease insurance, since gap insurance does not cover your car lease insurance deductible.
• Even if you car lease has already begun, you can still get a gap insurance
• Remember that gap insurance is only applicable if you have religiously conformed to the terms stated in car lease contract.
• Take note that until the gap insurance pays for you for the loss, you may have to continue making car lease payments.
• Gap insurance and wear and tear insurance are two different things

For most of us, hunting for the best car lease deals is such a complicated and tedious work. It’s the right combination of sweat and good research. Generally there are several ways for hunting car lease specials and this article dishes out five (5) tips which have been proven to be quite effective.

1. Go to your favorite car dealer and start the negotiation with a sales rep with the purchase price of the car then the monthly payment. Go and visit some reliable websites and find out about new car pricing and Manufacturer’s Suggested Retail Price, or MSRP. Find some information regarding capitalized cost and invoice price so that you’d be well equipped during the negotiation. To set your bracket for the lowest Capitalized Cost possible, upon negotiation keep the residual value high since it has a direct effect of lowering your monthly payment, money factor must equal the interest rate, and lastly choose the lease term that works to your benefit.
The internet is a poweful medium, it comes highly recommended that you take full advantage of it. Try emailing the online fleet manager of your favorite dealerships. Tell them about the car you are eying at, wait for their proposed quotes, and then compare their proposals against each other.   Pick the dealership you would like to proceed forward and start the negotiation. Generally, the price quote from the internet fleet manager are more competitive which should get us a better place to start the negotiation.
2. The Sunday paper usually presents several ads on car lease specials, so be sure to grab of a copy. Most of the deals are only valid for a short period of time and supplies are limited. However, if you present a copy of a lease ad to a competing dealer, they would most likely be forced to match the advertiser’s price.
3. Use websites and advertisements that claim to offer the best car lease programs. They ask car lease shoppers for personal information so they can provide further info of the lease deals.
4. Use websites which allow car shoppers to compare available car lease deals in terms of monthly payment, down payment, and lease length for their favorite vehicle. This saves time for the car shoppers who don’t want to deal with all the technical terms of car leasing negotiation and just want to proceed with the monthly payment that they feel the most comfortable with.

In today’s marketplace, buying used luxury cars is a smarter choice than ever before. If you’ve acquired the perception somewhere along the way that you could never own a luxury car, perhaps it’s time to rethink your buying strategy and start dreaming again about that car you’ve always wanted. Not only have used luxury vehicles become relatively cheaper to buy, they can be much less expensive over the lifetime of ownership. In this article we’ll look at some ways to uncover the best deals on used luxury vehicles.

Many more luxury cars are leased each year compared with non luxury cars. This means that there is a lot of high quality inventory from which buyers of used luxury vehicles can choose. Because those who lease vehicles are required to pay dearly for any damage or extra miles they put on the car during the lease period, used luxury vehicles that were previously leased are a more likely to be in better condition than just any non-leased vehicle on a car lot.

Because of the higher quality of their construction, a used luxury car already requires fewer repairs over time than many non-luxury vehicles. Used luxury vehicles that are well taken car of by their previous driver require even fewer repairs. Finding a previously leased vehicle is a good way to stack the odds of this in your favor.

You’ve probably done some online research about the vehicle you intend to buy, but are you looking in the right places? A lot of the information available about autos is based on initial review when the vehicle was first introduced-before it was put through real world testing by real world people.

Buying used luxury cars gives you and advantage over the new car buyer because you don’t have to guess how a model will perform. You can access lots of actual performance data on any vehicle by searching in the right places. Before you buy, seek out customer reviews and recall reports for vehicles you’re considering. Choosing a used luxury car with minimal complaints and no major reported recalls can save you a great deal of money down the road.

Getting a great deal when buying used requires a different way of thinking than when buying new. When buying a new luxury auto, you may decide on the Lexus RX330 and then shop around at various auto dealerships for the best price. No matter where you go, you’ll get the same vehicle. One dealership may have free water while another has free coffee, but in the end, the car you buy will be identical.

On the other hand, not all used luxury vehicles are the same. Some have more mileage; some have been better cared for than others have, etc. Deciding where to purchase a used luxury vehicle based on price alone isn’t always the best idea. When buying used, it is the standards of the dealership that decide which used luxury vehicles will make it onto their lots and which don’t make the cut. It’s critical to look for a reputable dealership with high standards and even perhaps wait a few weeks for them to locate your ideal used car, rather than to find the cheapest Lexus RX330 online and buy it from a dealership that isn’t reputable.

So start dreaming! Do the math and you may find that buying a used luxury car is more cost effective than buying a new non-luxury car. On average, used luxury vehicles are selling today for about 50% of their new sticker value, down from 65% last year. If you’ve been waiting for the right time to get into a Lexus RX330, an Audi A4, or any type of luxury car, now is an ideal time to buy.

In this violent market cycle, many are concerned with how and where to invest their money. Other than the usual questions that falls on the money discussion table, two or more questions concern automobile purchases. Is buying better than car leasing?If buying makes more sense, is a loan better than cash?

Some people dislike car leasing because of the idea that they are making monthly payments for years and having nothing to call their own at the end of the lease term. However, in certain cases, car leasing can be more practical and inexpensive as opposed to buying. Most people prefer car leasing since it allows them to drive a better car that they normally can’t afford to buy.

Below are some questions you’ll need to ask yourself before deciding as to whether car leasing or buying suits you best.

• Will you be using the car for business or personal purposes? Leasing typically will give you a larger tax deduction than the maximum depreciation deduction on a purchase.
• What will be the proposed monthly payment for a car lease vs. a loan? Is the dealer offering low interest financing? If you qualify for a zero percent or low rate loan, buying might be cheaper.
• Do you have cash for a down payment and/or the full purchase price? How much? Leases typically require low down payments; both loan and lease payments will be lower if you make a larger down payment.
• What rate of return could you earn on those assets? This is the opportunity cost of paying cash for your car. If the loan or lease interest rate is higher than your projected investment return, and if you have the cash available, buying outright might be preferable.
• What is your credit rating? You might think a poor credit rating would hurt you equally whether you lease or buy, but you’d be wrong. Because the lender assumes a greater risk for a lease than a loan, a poor credit rating might force you into a higher loan rate, but it might also mean you can’t qualify for a lease at all.
• What is your usual annual mileage? Car leases are typically calculated for a maximum of 10,000 or 15,000 miles per year. If you exceed the limit, you will have to pay an excess mileage charge, which might cancel out any financial advantage the lease may have. It is possible to build additional miles into the lease, but your monthly cost will be higher.
• How well do you maintain your vehicles? Lease agreements require you to adhere to service requirements. Also, if you return a leased vehicle in poor condition, you will be charged for an excess wear and tear.
• How long do you usually keep your cars? If you like to replace them every few years, a lease might be the better choice. If you keep your cars for several years until they fall apart, a purchase will be your best choice.
• What is the lease factor to calculate your lease payment? With a lease, you are paying for only the depreciation on your chosen vehicle. The residual value of the car is subtracted from the purchase price, and the difference is multiplied by an interest rate factor to arrive at the monthly lease payment. To determine whether the payment is more economical than a car loan, multiply the lease factor by 2400 and compare the result against a comparable auto loan to determine whether the rate is reasonable.

These days, change comes as often as it gets especially for a family. Time seems to fleet for young couples as they first drive away to their honeymoon in a sports car and as they switch their two-seater car for a station wagon to accommodate the coming family member nine months later. A family’s essentials often change, including their auto needs, as different chapters of their lives unfold before them.  Different family situations require different approaches and through car leasing, varying solutions are within grasp even for a modest household. Car leasing offer flexible and sensible solutions to families just starting out or to those who have several members big enough to start their own soccer team.

New couples won’t need to spend any money trying to get rid of their two-seater Honda Accord. Since car leasing has a usual term of two to three years, newly married couples can use this as their transition period to help them embrace parenthood better. Once the lease ends, they can easily start a new one and then drive out from the car dealer’s office in a family SUV. When the eldest is old enough to drive, the parents can first pick a sedan and three years later switch to a brand new convertible since for most teens fitting in is a big thing. In this day and age, with all the new gadgets and technology flashing in your TV screen, keeping your teens happy is not a small matter. Without the flexibility of car leasing, families with more than one teenager would potentially be buying a lot of cars, as well as trying to sell them or trade them in at the end of their useful lives (the cars of course, not your teens). Car leasing keeps your style conscious teens happy while keeping your budget intact.

All the reputable auto leasing companies are well aware of family dynamics, and they can help you figure out your best car leasing stratagem whatever the situation is. You may just be surprised at how convenient and affordable it can work out.

Car leasing may sound clear-cut however there are details that lessees should pay attention to. Below is a quick checklist when opting to lease your next car.

1. Shop around. For every dealer and manufacturer is a different car lease rate that can be negotiated to fit accommodate your needs.
2. Always read the fine print. Make sure to orient yourself ahead of time about all the hidden charges associated with your car lease, i.e, security deposit, registration fees, and lease-end services fees. A “Special” deal won’t be as special if from the low monthly payment of $199, you’d be paying twice the amount for the “partially declared” charges.
3. Lay down a closed-end lease. If at the end of the lease, the value of the car is less than the residual value, the lessor will owe the lessee the difference. However if the actual value is more, then the lessee has the option to buy the car for the fixed residual value or pay the lessor the difference instead.
4. Canvas for insurance rates for the kind of coverage required by the lessor. The car lease agreement may require higher liability limits and lower deductibles than you currently carry, and both will increase your insurance premium.
5. Choose cars to lease that tend to hold their value well. The sexiest cars are not always the best buys in the world of leasing.
6. Negotiate the price of the vehicle before moving to car lease negotiation. Before discussing the car lease details, make sure to have set the car’s selling price first hand. Doing so will prevent the vehicle’s selling price from influencing the lease negotiation.
7. Increase the mileage limit before you enter into the lease, if you feel that you’ll surely exceed it. Buying an additional mileage over the term of the lease is less expensive than paying for the excess at the end.
8. To avoid lease-end wear and tear charges, maintain the car well during the lease period. Make sure to regularly have the leased car tuned-up. Lessors will not think twice in charging the lessee for perceived poor treatment.
9. Remember that if a lessee decides to purchase the vehicle at the end of the lease, in the long run car leasing may end up being more expensive than a loan.