| Is leasing a car, rather than purchasing a car on | | | | family. |
| time payments a good thing or not. As with | | | | There are several terms and factors to be |
| questions in life, it all depends on your financial and | | | | knowledgeable about in your calculations and |
| or automotive situation and as well who tells the | | | | comparisons for auto purchase versus lease |
| story. | | | | workup and lease negotiations. |
| It is true that business can write off lease costs | | | | First of all research the leasing tax rules in your |
| whereas that is not such an advantage to an | | | | jurisdictions. For example in your state you may |
| individual car user. However this is not necessarily | | | | well only pay sales taxes on monthly payments, |
| so. First it all depends on your situation and as well | | | | not on the cost of the vehicle. It all depends on |
| you're negotiating skills. It is always better to be in | | | | the negotiations of your payments- which involve |
| an informed and prepared manner. | | | | the time frame and value of the car at the take |
| First of all leasing a car is downright attractive due | | | | back time end of lease. |
| to current low interest rates. Almost every | | | | Next what are the fees? For example the fee at |
| month you will read in the popular news that the | | | | the end of turn in, paperwork fees and fees for |
| "Fed has cut interest rates again". What this | | | | "excess miles". Are these negotiatiable? In the |
| means to you is that in an overall sense that | | | | case of the "excess mileage" and "excess mileage |
| interest rates are less to you. This should mean | | | | fees" are these carved in stone or can the |
| lower leasing costs to you. If interest rates, in the | | | | allotment or rates charged be reduced? In the |
| banking industry and market are lower, so should | | | | case of the "turn in" fee. If you offer to increase |
| be the interest rate basis in your lease | | | | your monthly payment - often this fee will be |
| negotiations and payments. | | | | reduced. |
| What are the advantages of leasing a vehicle? | | | | In order to best negotiate you will have to speak |
| You will get a new vehicle to drive. When your | | | | the same language and terms as the lease |
| leasing agreement term is over - then you hand | | | | negotiator. Several terms to know, comprehend |
| the car in and walk away. | | | | and understand are "Capitalized Cost", "Money |
| It may be debated that by leasing the car you will | | | | Factor" and "Residual Value". |
| have no equity or asset accumulation left at this | | | | Simply put the cost of the leased vehicle is |
| point in this automotive transaction. If you had | | | | confusingly described as the "Capitalized Cost". |
| bought the car, with payments, the car would be | | | | Just as you would haggle over the cost of buying |
| yours at some point, lock stock and barrel. | | | | a new car, you should not accept a stated price |
| However major components and overall costs of | | | | or manufacturers suggested retail price (M.S.R.P.) |
| running a car are maintenance costs. With a new | | | | as the price paid. |
| vehicle - it is unlikely that you will incur these | | | | Haggle and argue over the "Capitalized Cost" just |
| costs. First of all the car is new. Major repairs and | | | | as you would in any car or automotive deal. |
| costs are unlikely. In addition the car will come | | | | Next in line in proper automotive leasing terms is |
| with a manufacturer's warranty which should | | | | the term "Money Factor". "Money Factor "is the |
| cover you for the majority if not all of the lease | | | | interest rate upon which the leasing calculations |
| time period. | | | | are based upon. The lower the number of the |
| With modern, newer and especially smaller cars it | | | | "Money Factor", the better for you. As a rough |
| seems that all repairs seem to be very | | | | guide and estimate multiply the "Money Factor" |
| expensive. After a certain point of time, use and | | | | value by 2550 to get an estimate of the relevant |
| mileage, it is not as if the car "nickel and dimes" | | | | interest rate. |
| you to death. Most of the innards of modern cars | | | | Last in the line of leasing and leasing lingo is the |
| seem to be electronic in nature with advanced | | | | term "Residual Value". "Residual Value" is the |
| (read expensive and hard to fix) modules. There | | | | amount that the car, S.U.V. or truck vehicle is said |
| are few simple to repair mechanically based, non | | | | to be worth at the end of the lease period. |
| electronic component, cars. In addition for | | | | Simply put, the more the vehicle is deemed to be |
| mechanics to work on cars now "everything is | | | | worth, at this time period, the less will be your |
| struggle' "and as well spaces are tight and very | | | | total amount due to be paid overall for your lease. |
| hard to work within. In a summary the old "nickels | | | | Thus the higher the "Residual Value" at the end of |
| and dimes" are now "five hundreds, thousands | | | | your lease, the much lower will be your monthly |
| and several thousands". With a leased car | | | | lease payments. |
| arrangement you may not own the car, with its | | | | In the end, your car purchase or lease decision will |
| equity. Neither do you have repair costs and | | | | come down to two factors. Reliability of |
| heartaches. In addition you have a reliable vehicle | | | | transportation and the total cash outlay from |
| to get you to work or to chauffer around your | | | | your personal pocketbook or wallet. |