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Leasing vs. Buying: What Does It Mean to Lease a Car

December 5th, 2018 Posted in Money Tips
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Vehicles make your life more functional as you don’t have to depend on public transportation to run errands or travel long-distance. Before you get a new car, ensure you consider your options and decide what option is best.

Leasing vs. Buying: What Does It Mean to Lease a Car - gear knob shifter imageSource: pixabay.com

Why Lease Payments are so Cheap

For brand new vehicles, leasing is always more affordable as compared to purchasing a car. Whether you are paying in cash or financing your vehicle purchase, you will pay more than you would if you chose to lease.

For every new vehicle, three main factors determine the difference in price when buying or leasing. Buyers pay for equity, depreciation as well as interest expense while leasers pay for depreciation and interest expense only.

Leasing a vehicle means that you gain access to it, but the car dealer retains ownership. Access to a leased vehicle is terminated when the leasing period is over. Car leasing is an affordable endeavour because the overall cost for leasing is much lower than the purchasing cost.

Residential Value

When a new vehicle is leased for the first time, it retains significant value once the lease period ends. This is called residual value, and it determines the lease rates of the vehicle. The higher the residual value, the lower the leasing rates. Knowing car leasing tips helps you settle for the best deal.

Ideally, you pay the car dealer the car’s depreciating value based on its current value and what value it will have retained at the end of the lease. Expensive vehicles have a more attractive leasing value as they have a higher residual value. Always consider your financial situation when deciding on buying or leasing a vehicle.

Leasing and Taxes

Even though when you lease a car you don’t get ownership, you are still responsible for sales taxes. Consider shopping around to get a car dealer who offers you the best leasing deal. Ensure you can afford the monthly payments to avoid financial stress.

Mileage

Leased vehicles have a mileage limit of 10,000-15,000 per year. If you exceed this mileage limit, you’ll be required to pay 25% per mileage. It is possible to negotiate for a cheaper or more expensive lease depending on the mileage you see yourself covering.

Don’t Lease Beyond the Car’s warranty

For brand new vehicles, it is always advisable to avoid leasing beyond the car’s warranty. Leasing beyond the car’s warranty will set you up for huge repair bills.

Conclusion 

Consider your financial situation when deciding whether to lease or purchase a car. Vehicles are huge investments, and they make life easier as you don’t have to depend on public transportation to move around. When you want to lease a car, shop around for the best deal because, at the end of the day, you don’t get the car’s ownership. http://credit-n.ru/kreditnye-karty-blog-single.html

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Getting the Car of Your Dreams at a Minimal Cost

June 29th, 2018 Posted in Money Tips
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Getting the Car of Your Dreams at a Minimal Cost - car image

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There are likely to be several times in your life that you will find yourself on the hunt for a new car. Perhaps you’re searching for your first vehicle. Maybe you already have a vehicle but are looking for something different or updated. You might have come to the end of a finance agreement and want something to replace your current vehicle when you trade it in. Whatever your reason, chances are that you’re going to want to keep the costs incurred through this process to a minimum. So, here are a few different things that you might want to do in order to get the car of your dreams for a minimal cost.

Use a Dealership

When purchasing a vehicle, you tend to have a few different options on your hands. Now, people tend to think the cheapest option when purchasing a vehicle is to opt for a second hand car from a private dealer. This tends to involve communicating directly with the car’s current owner. Now, cars sold in this manner do usually have a much lower price tag attached to them than a brand new vehicle will. But this doesn’t necessarily mean that it’s the cheapest option overall. First of all, private sellers aren’t always honest. They are much more likely to ignore flaws with the vehicle and only promote its positive aspects. You could find yourself taking a vehicle home that is actually a little worse for wear and may require a lot of work to be carried out on it in a month or two’s time. Instead, you should consider purchasing a car through a dealership. This means you have strong consumer rights, face to face customer service, allows you to see and test drive the car and also often allows you the option to part-exchange your current vehicle. A Mercedes Dealership will have a range of Mercedes like no other, with endless options of designs, colors, interiors and added extras. They will also have a legal responsibility to provide the car in perfect condition and you’re also likely to get some sort of warranty attached. This is safer and saves you costs in the long run!

Consider a Lower Engine Size

Most cars come with the option of different engine sizes. The larger the engine, the more fuel the vehicle is going to consume and the more it’s going to cost you to get from A to B in it. You are also likely to have to spend more money on road tax for a vehicle with a bigger engine. So, if possible, opt for the smaller engine size. This could save you a lot as time goes by!

These are just two different ways to minimise the costs involved in obtaining the car of your dreams. You may not stumble across the right vehicle straight away, so be prepared to dedicate a little time to searching the market and finding the best deal possible! http://credit-n.ru/electronica.html

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