Just like car loans, car lease requires a lessee to have a better credit rating since the lease provider is exposed to a much higher risk as opposed to car loans.  People with a bad credit history will frequently have frustrating experiences when closing the car lease deal, especially when times of credit is tight and the economy is stressed. Although some companies are desperate enough for business that they don’t mind the extra risk, generally, people with sub prime credit should expect to pay higher interest rates, be required to make higher down payments or make a security deposit.

If you expect to use the car for a relatively short period of time, let’s say for 12 months, you can opt to try Car Lease Takeover instead. Although the car lease company has to approve and check your credit history, the requirements are not as strict if you compare it to a new lease. Typically car lease takeovers offer a cash incentive with no down payment to make the deal attractive.

Should you get disapproved, here are a few of your options:

• Get a co-signor for your car lease, someone who will be responsible if you make a default on your payments
•  Borrow money or a car from family and friends
• Save cash for your “starter car” and trade it in once you have the money or credit rating to grant you that car lease

It shouldn’t be any surprise that car leasing is growing in popularity, given the current economic downturn. It would be impractical for anyone to spend a bulky amount to drive a brand new vehicle when in fact car leasing makes it possible for anyone to purchase a new car minus the depreciation.

Brand new cars depreciate at an alarming rate, some more than others, but nonetheless every single car that is purchased from a showroom will depreciate as soon as the owner turns the key and hit the road.

With a down payment you can have your very own brand new MINI Cooper S for as little as 167 US dollars per month. Here’s a detailed example: If you were to buy a brand new Alfa Romeo MiTo it would set you back around 8,000 US Dollars and after a year’s ownership and average mileage the car would depreciate by between 15-20 per cent.  You can lease the same brand new car for as low as 150 US dollars per month with no hassles of worrying about depreciation, plus you will receive all of the perks that come with car leasing.

When you choose car leasing you will receive servicing as part of the deal so you won’t have to worry about expensive garage fees if your car encounters difficulties. You’re also not tied to a long term contract since car leasing terms are good for 24 to 36 months. No large deposit, no financing worries, no servicing worries, no depreciation worries – these are some of the undeniable car leasing perks.

You wouldn’t invest in anything else that would depreciate so quickly would you, and you don’t have to ever again by indulging in a little bit of car leasing. It’s the quick, easy way to get behind the wheel of a brand new vehicle that you could not afford to buy outright and is the perfect way to turn heads down the High Street, to impress the ladies or simply to drive to work each morning with a bit of comfort and style.

Car leasing companies offer all different types of vehicle, ranging from economical commuter cars, to luxury saloons, to the latest sports coupes, to comfortable and practical family SUVs. You name it, they can source it – and to your requirements to. You choose the colour, the size of the engine, the transmission, the interior, everything as you would when purchasing a brand new car only you don’t throw your investment down the drain.

 It may be quite tempting to venture into leasing when your credit card stays unused and you’re itching to drive a new car. Knowing that car leasing offers low monthly payments and that car repairs are not an immediate concern, the best thing to do before going up to your nearest car dealer is to contemplate, first and foremost. Think first before allowing yourself to get tied up for two to three years of credit obligation.

When you’re buried neck-deep in debts, car leasing may sound too good to pass out, especially if the new 2009 Chevy is out in the market. Just think about it, you won’t be expending sizable amount- so car leasing is certainly a viable and easy option. Well, if that’s the only reason you’d go into car leasing – think again. Try to think ahead of your financial situation; once you start leasing  a car, at the end of the contract, you would have to lease another car or buy out your current leased car. This means you would be a slave to your car dealership for your monthly payments for another three to five years.

So if you have a hefty amount for savings, try to pay all your debt s first and instead settle for a used car. Car leasing is good for those who were able to save up for the rainy days and there’s still some income coming in from another source. With that being said, buying a used car may be a good option instead of leasing. Although the car is not totally bright and shiny, you’ll actually be owning the car and there won’t be monthly payments to haunt you for years to come. There are also good price packages for a used car also. However if you won’t see yourself using the same car after three years and you only have a measly bank account, used car leasing can be another option. It is still, in all essence, car leasing but at a much much lower price.

There are several auto financing option. Do a bit of research and find that one financing option that suits your immediate and near future needs. Otherwise, you can look for other alternative ways to increase your purchasing power.

 

While the global economy is taking a nosedive, the volume of car leasing transactions managed to stably increase. It is estimated that roughly 40% of all cars running in Canada have been acquired through car leasing. However as the US consumers continue to tighten their belts bracing for the forthcoming recession, sales on new cars have been direly affected yet during the last holiday season, a 13% growth on car lease takeover has been determined.

Why many people are considering car lease takeover deals instead of leasing a whole new car? It is probably due to the fact that its impractical at this point in time to spend a hefty amount on car purchases. Other than car leasing, there are several methods to finance your next car however most are quite expensive and unreasonable especially these days. Although car leasing is inexpensive when compared to car loan, car lease takeover is more practical and less costly. This is because down payments, administrative fees and tax impositions are waived.

Lease takeover deals are considered as unexpected lifeline of the car industry. The advantage and helpfulness of lease takeover transactions are more acknowledged and felt these days as car sales decline and car industry revenues plummet. Lease takeover transactions keep revenues flowing in to the car industry. Thus, even if new car sales plunge, revenue keeps on coming despite the economic downturn. Experts assert that as long as the economic crisis stays, more and more consumers will prefer to buy car leases and lease takeover deals.

The global economic downturn has paved the way for the rise of car lease takeover deals. As sales of new cars plummet, car lease and takeover transactions help keep revenue flowing into the ailing car industry.

The first question that a car dealer would ask is, “How much are you going to pay for the down payment?”. This question is crucial since this will have sweeping effects on your budget. The down payment you make affects more than the monthly payments you’ll make and can cost you several thousand of dollars if you don’t make the right decision. In this post we will be discussing the ideal down payments to be made both for car buying and car leasing so that you in turn can maximize your money.

Down Payment for Car Buying

A wise down payment when buying a car is at least 20%. Putting down 20% at the time of purchase has effectively paid the car’s depreciation for the year upfront and is ideally considered a wise move. This means that the car buyer is not paying more on the loan that what the car is actually worth.

Smart money managers, who make a 20-percent down payment, have more freedom to make a change in the car they drive. During the second year, when the car depreciates at a much slower rate, they would begin to build equity in their car. During a trade-in, they would actually get a positive credit toward the new car.

Down Payment for Car Leasing

The strategy for car leasing is a direct opposite of buying since there is no down payment required. In car leasing, the down-payment is called”cap cost reduction”, the higher amount you paid on your “cap cost reduction” the lower becomes the monthly payment. Although this seems to be a good option, it is not entirely recommendable and practical. Just imagine, if a buyer gets into a serious accident and the car is totaled in the first few months of the lease, the down payment then is completely lost.

So, in leasing a car, opt to make higher monthly payments than putting the money down on the car. You can go one step further and roll the “drive-off costs,” which would normally be paid upfront, into your monthly lease payment. Drive-off fees are the related fees required to drive your car off the lot: security deposit, acquisition fee, etc.

Remember that when you are organizing the financing nuts and bolts of your next car, look not only at the financial cost as well as your long-range financial picture. It is ideal that you maximize the power of your money and retain as many options as possible.

Business car lease, otherwise called “commercial car lease”,  is a leasing concept wherein cars are leased for business use or purposes. Generally, this is  a more convenient and inexpensive alternative than purchasing a car since businesses are offered a better way to manage their finances. Companies are not burdened with a large capital outlay and business car leasing offers a likely significant tax advantage at the same time.  In general, all expenses associated with a lease can be deducted, including up-front costs, monthly payments, insurance, maintenance, and repairs.

Most business car lease are “open end” wherein the residual value is set low. Monthly payments will be higher however the tax benefits are greater. The business lessee is responsible for the differential amount between the car’s residual value and the lease-end market value; although this is now minimized due to the low residual value from open-end type of car lease.

Make a mental note that if the leased car is used both for personal and business reasons, the tax benefits is only applicable to the business related expenses.