tag:blogger.com,1999:blog-19021733801842529662024-03-13T09:35:32.616+07:00Smart Way To RichSome ways that can make you SUCCESS !!!Unknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1902173380184252966.post-84778689731013017462020-03-16T18:20:00.000+07:002020-03-16T18:20:39.511+07:00Dealer Leasing TricksToo often when it comes to auto-leasing, people get so dazzled by the<br />
myriad terms and the jargon thrown their way that they end-up paying<br />
through the nose, relying on a dealer’s “help” than their own informed<br />
decision.<br />
<br />
Here is a look at some of the tricks dealers use to pad their profits and<br />
leave the customers shelling hundreds of dollars more than the deal should<br />
be worth.<br />
<br />
Trick 1: Leasing always a better deal than buying<br />
<br />
Dealers use the lure of lower-monthly payments to entice customers to sign<br />
for long-term loans, with terms stretching for five years or more, making<br />
the payments even lower. There are two catches with such lengthy contracts:<br />
higher mileage, exceeding the prescribed limit, and hefty repair costs.<br />
With<br />
leases charging on average 10 to 20 cents a mile for any extra mile over<br />
the agreed amount in the contract, and warranties only covering three<br />
years, you leave yourself wide open for hefty charges for excessive<br />
mileage and wear and tear. <br />
<br />
Trick 2: Cheap 2-3% APR rate on your lease<br />
<br />
The dealer is not quoting the interest rate you would be paying on your<br />
lease; he’s rather giving you the lease money factor. Whilst similar to an<br />
interest rate and important in determining your monthly payment, a more<br />
accurate rate is calculated by multiplying the money factor by 24. For<br />
example a “cheap” 3% money factor is 24 X 0.003 = 7.2%. This gives you a<br />
better sense of what your annual interest rate on your lease contract is.<br />
<br />
Trick 3: Stress-free early lease termination<br />
<br />
Dealers know consumer driving needs change and they would like to have the<br />
option of getting out of a lease commitment sometime down the road, before<br />
their lease ends. Truth of the matter is, when you sign for a lease, you<br />
are effectively saddled with monthly payments for the remainder of the<br />
lease term and there is little-choice of getting out early. Lease contracts<br />
carry hefty financial penalties for either defaulting on monthly payments<br />
or terminating the lease earlier than the scheduled term.<br />
<br />
To avoid being on the receiving end of such tried-and-true tricks, educate<br />
yourself about leasing. Get down to the nitty-gritty and understand what<br />
the leasing terms used by dealers mean. Crunch the numbers along with him<br />
and understand how they arrived at the monthly payment figure. Don’t sign<br />
anything until you’ve understood all the terms and your numbers much those<br />
of the dealer. Do not let the dealer pressure you into signing; you are the<br />
one to determine whether the agreement is right for you.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1902173380184252966.post-36237970134148702792020-03-16T18:19:00.000+07:002020-03-16T18:19:26.550+07:00Buy or Lease?It’s the classic dilemma that faces every auto-consumer out there: Pay<br />
cash upfront or forego the ownership and pay monthly settlements instead?<br />
Buy or lease for a new set of wheels?<br />
<br />
As is the case with every other common dilemma, there is no slam-dunk<br />
answer. Each option has its own benefits and drawbacks, and it all depends<br />
on a set of financial and personal considerations.<br />
<br />
First, your finances. Affordability is clearly key, and you need to ask the<br />
question of how stable is your job and how healthy is your general<br />
financial situation. The short-term monthly-cost of leasing is<br />
significantly lower than the monthly payments when buying: you only pay for<br />
“the portion” of the vehicle’s cost that you use up during the time you <br />
drive it.<br />
If you have a lot of cash upfront, then you can opt to pay the down<br />
payment, sales taxes - in cash or rolled into a loan - and the interest<br />
rate determined by your loan company. Buying effectively gives you<br />
ownership of the car and that feeling of “free driving” that goes on<br />
providing transportation.<br />
If, say, you want to get into luxury models but can’t afford the upfront<br />
cash of purchasing the vehicle than you’re a good candidate for leasing.<br />
Unlike buying, it gives you the option of not having to fork out the down<br />
payment upfront, leaving you to pay a lower money factor that is generally<br />
similar to the interest rate on a financing loan. However, these benefits<br />
have a price: terminating a lease early or defaulting on your monthly lease<br />
payments will result in stiff financial penalties and can ruin your credit.<br />
You need to make sure you carve out the monthly lease payment in your<br />
budget for the foreseeable future, at least for the duration of the lease. <br />
<br />
Besides the financial aspect, making a buy or lease decision depends on<br />
your own particular lifestyle choices and preferences. Think about what the<br />
car means to you: are you the sort of person to bond with the car or would<br />
you rather have the excitement of something new? If you want to drive a<br />
car for more than fives years, negotiate carefully and buy the car you<br />
like. If, on the other hand, you don’t like the idea of ownership and<br />
prefer to drive a new car every two to three years then you should lease.<br />
Next, factor your transportation needs: How many miles do you drive a year?<br />
How properly do you maintain your cars? If you answer is: “I drive 40,000<br />
miles a year and I don’t really care much about my cars as I don’t mind<br />
dealing with repair bills”, then you’re probably better off buying. Leasing<br />
is based on the assumption of limited-mileage, usually no more than 12,000<br />
to 15,000 miles a year, and wear-and-tear considerations. Unless you can<br />
keep within the prescribed mileage limits and keep the car in a good<br />
condition at the end of your lease, you might incur hefty end-of-lease<br />
costs. <br />
<div>
<br /></div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1902173380184252966.post-20484645692946292772020-03-16T18:18:00.000+07:002020-03-16T18:18:34.320+07:00Buy a car at the end of your leaseYou’ve come to the end of your lease and you like you car enough you want
to keep it in the driveway. Just like buying a used car, there is some
research to be done to nail a good deal.
First, you need to know the cost of buying out your lease. Read the fine
print of your contract and look for the “purchase option price”. This
price is set by the leasing company and usually comprises the residual
value of the car at the end of the lease plus a purchase-option fee
ranging from $300 to $500. When you signed on the dotted line, your
monthly payments were calculated as the difference between the vehicle’s
sticker price and its estimated value at the end of the lease, plus a
monthly financing fee. This estimated price of the car value at the end
of the lease is what is termed in leasing jargon “residual value”. It is
the expected depreciation – or loss in value – of the vehicle over the
scheduled-lease period. For example, a car with a sticker price of
$40,000 and a 50% residual percentage will have an estimated $20,000
value at lease end.
Now that you know the cost of buying out your lease, you need to determine
the actual value, also termed “market value”, of your vehicle. So, how
much does your car retail for in the market? To pin down a good, solid
estimate you need to do some pricing research. Check the price of the
vehicle, with similar mileage and condition, with different dealers. Use
online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book
for detailed pricing information. Gleaning pricing information from various
sources should give you a fair estimate of your vehicle’s retail value.
All you have to do now is compare the two amounts. If the residual value is
lower than the actual retail value, than you’re into a winner.
Unfortunately, there is a good chance a car coming off a lease is a little
on the high side.
Don’t despair though. Leasing companies know as much that residual values
on their vehicles are greater than their market value and as such are
always on the look out for offers. You can knock down on the price of your
leased vehicle with some smooth negotiating tactics. Put forward a price
that is below your actual target and negotiate hard until you wind up near
that figure.
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1902173380184252966.post-71155448966390914052020-03-16T18:16:00.000+07:002020-03-16T18:16:24.975+07:00Auto Leasing ScamsCar-leasing has been lauded as a more attractive alternative to buying,<br />
offering in the process the flexibility to drive a new car for less. The<br />
reality, however, is that leasing is an option that is fraught with many<br />
pitfalls for the average customer. Leasing regulation does not require as<br />
much disclosure as buying a vehicle. This has given rise to many leasing<br />
scams that trick the customer into believing they are into a good deal<br />
when, in effect, all he is getting is a rough deal on the dealer’s terms.<br />
<br />
Here we look at some of these common scams and how to avoid them<br />
<br />
Artificially low interest rates:<br />
<br />
Some dealers quote a lower interest rate when in reality it’s much<br />
higher. They do this by either purposefully quoting the money factor as<br />
the interest rate or calculating the loan without amortizing some closing<br />
fees, like the security deposit, into the loan lease. Take the money<br />
factor for example: this is typically expressed as a four decimal digit,<br />
something like 0.004. Some dealers quote this as a 4% interest rate when<br />
in fact you need to multiply it by 24 to get a rough idea of the interest<br />
rate on your loan. In this example, the interest rate is a much higher 9.6%<br />
than the “quoted” rate of 4%.<br />
Make sure you crunch the numbers and understand the formula they use to<br />
calculate their interest rate. Look out for any fees not factored into the<br />
calculation. If you are not satisfied, do not enter into the lease<br />
agreement.<br />
<br />
Terminate your lease early for a low penalty<br />
<br />
This is an all-time leasing scam. You ask your dealer how much you will pay<br />
if you want to terminate your lease and he tells you: “You want to get out<br />
early? Sure thing, you only pay an early termination fee of $300”. What he<br />
is quoting is only the small administrative penalty of early termination,<br />
there is a much stiffer penalty called early termination fee and this runs<br />
into thousands of dollars.<br />
Do not confuse the early termination administrative penalty with the<br />
termination fee. Read the small print carefully and know exactly how much<br />
you will get charged should you terminate your lease before its scheduled<br />
end. <br />
<br />
Pay for an extended warranty you don’t need<br />
<br />
This is another shell game to inflate the dealer’s profit at your expense.<br />
The dealer slides an extended-warranty into the deal whilst it’s already<br />
factored into the monthly payments, or he tricks you into buying a 36-month<br />
warranty on a 24-month lease. <br />
You do not have to pay extra money for a warranty already built into your<br />
payments or for one that goes well beyond your lease term.<br />
They might slip an extended warranty in. Don’t be fooled, the warranty is<br />
already factored in.<br />
<br />
No security deposit<br />
<br />
Any dealer who advertises a $0 security deposit is not telling you the<br />
whole story. A security deposit is always factored in the lease under the<br />
provision for disposition fees. Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1902173380184252966.post-894261550883041832011-04-27T12:18:00.001+07:002020-03-16T18:17:23.560+07:00Benefits of leasingDespite aggressive low-interest financing, cash-back offers and other
purchasing incentives offered by leading auto-makers to buyers, leasing
numbers keep increasing steadily over the years. Leasing is not only an
attractive financial proposition to most auto-consumers, but also a
lifestyle and preference choice.
Benefit Number 1: Keeping up with the latest trends
Leasing is sometimes more of a personal and lifestyle choice than a
financial one. Many people are not comfortable with the idea of owning a
vehicle over a long period of time. They’d rather keep up with the latest
trends of the industry and drive the latest models every two to three
years.
Leasing a car gives you the convenience of having the latest technology
and safety innovation, such as an electronic stability system, DVD
entertainment systems and advanced stereo equipment. If you are willing to
forego ownership for the latest set of wheels, than leasing is your best
option.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the car. You don’t have to haggle with your
mechanic over repair expenses, deal with hefty maintenance bills or worry
about a depreciating asset. Provided you can keep the vehicle in good
condition and stay within the contracted mileage allowance, you’re
effectively getting a test drive for the length of your lease.
At the end of your lease, you can purchase the vehicle or simply turn in
the keys and walk away. No questions asked.
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. It reduces your initial cash
outlay as you do not have to pay the large down payment required for car
ownership. You only pay for the depreciation on the car - only the part you
will use during your lease, not the entire vehicle. This results in lower
monthly payments and frees even more cash. This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. If you are self-employed or use your car for your job,
then you can write off your leasing payment as a business expense.
Benefit Number 4: Negotiating Leverage
Although it may seem a little unorthodox in this industry, almost
everything about leasing is negotiable. If you know all the fees involved,
you can lower your monthly payments, negotiate the purchase price of the
vehicle at the end of the lease and contract additional miles on top of
your mileage limit. You can also do some shopping around and compare deals
from different auto-insurers to get the cheapest GAP insurance for your
lease. Unknownnoreply@blogger.com