Thursday, September 6, 2007
Leasing a car is not only an attractive financial offer to the majority of auto-consumers, but also a lifestyle and favorite choice.
Leasing a car has four main benefits.
1. Keeping up with the latest trends. Lots of people want to drive the latest models every two to three years.
2. Leasing offers buying flexibility. It allows you to postpone the buying decision while using the car. At the end of your lease, you can buy the car or simply walk away.
3. Leasing reduces your preliminary cash expense because you do not have to pay the large down payment required for car ownership.
4. Just about every aspect of leasing is negotiable. If you know all the fees involved, you can lower your monthly payments.
When leasing a car, it is easier to choose the same company for your auto insurance. However, you may end up paying too much for your coverage and it is better to look elsewhere for lower rates.
When you lease, the car that you will drive belongs to the leasing company. They want to be sure that their investment is covered in the event the car gets damaged, totaled or stolen.
They usually want to get covered for the difference between what your auto-insurer pays and your unpaid leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and is typically included in the leasing contract.
If your leasing company is a finance division of an automaker, then your GAP insurance will be offered by the same lease company.
You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you can find the same coverage for a lower price?
Spend some time shopping by comparing quotes from different insurance companies. Demand discounts that you already qualify for and modify your coverage in view of that.
Go to these web pages to learn more about Leasing versus Buying a Car as well as How to Get Out of a Car Lease.
The Three Biggest Questions When Buying a Car
The biggest question in the car buying process is whether to buy new or used.
The second biggest question is what make and model to purchase.
The third most important question is where to get your financing.
#1 New or Used
The average new car costs more than double what the average used car does. (The Kelley Blue Book pegs the average new car price in 2005 at $26,100 and the average used car price at $13,000). It's not surprising, then, that used cars outsell new cars three-to-one.
New car loan rates are about the same as used car loan rates. The major difference between the two is the length of the loan. Most used car loans are for no more than 36 months whereas new car loans can be 60 or even 72 months long.
Remember to take depreciation into account. Depreciation is the difference between the Manufacturer's Suggested Retail Price when you bought the vehicle and what it's worth now. Some new cars lose as much as one-third of their value within a year. On most vehicles, depreciation settles down to about seven-to-ten percent per year after the first three years.
Which brings us to . . .
#2 Make and Model
One way to slow depreciation is to buy a make and model with a prestigious nameplate. Models that depreciate faster than most include: Jeep Grand Cherokee, Ford Explorer, Ford Taurus and Lincoln Continental. Cars that hold their resale value longer include the more expensive makes like Lexus, Mercedes-Benz and BMW.
To learn more about which makes and models offer the best value in today's market, you can research several auto review sites online. You can also use the Internet to check everything from the performance ratings to the safety records of the vehicles you're interested in.
Be sure to test drive any vehicle you are considering under varied road conditions. If the vehicle is used, ask to see all maintenance records and check its history on CarFax. And don't forget to have your mechanic give it a thorough inspection. If you are buying new, try to pay as close to the factory invoice price as possible. You can look up factory invoice pricing online.
#3 Car Financing
Many experts recommend getting your financing before you start car shopping. This puts you in a better bargaining position because the dealer knows money won't be an issue. (They also won't have the chance to run you through their finance department, which is a good thing for you!)
Of the 60 million new and used cars sold annually in the U.S., about 27.5 million are financed by subprime loans to buyers with less than perfect credit. If you have bad credit—a FICO score of 620 or lower—you will need one of these loans.
You will not qualify for the new car offers advertised on TV, like the "0 Down," "O Interest" or "Low APR" deals. However, you can still get a good deal on a bad credit car loan from Internet lenders like Auto Loans In Seconds. Their free online application process lets you know exactly how much you can borrow, and at what rate.
"Consumers should shop around for financing with the same vigor that they shop around for a car," says Jack Gillis, public affairs director for the Consumer Federation of America. "One or two percent can erode all the money you negotiate in a good price."
Be Part Of The Mazda Zoom Zoom Tour
Think Zoom Zoom. What first comes to your mind? Of course, Mazda.
Now, keep in mind that when you hear Zoom Zoom, you should remember that there is going to be another Zoom Zoom Live Tour from Mazda. This is according to an announcement given out by the Mazda North American Operations. And the company claims that it would be sending out the Live Tour all across the country once again.
According to the company, they would be sending out the Zoom Zoom Live Tour all across America so as to feed the insatiable hunger of the market for power as well as performance. And this grand event would be a very good way to do that for the tour would include plenty of vehicles that sport around the best parts like Mazda car parts Mazda3 as well as the best engine choices. Furthermore, the company is expecting to be in touch with 50,000 during the whole event. After all, it would not be surprising since the Zoom Zoom Live Tour is one of the much awaited events in the auto industry. Ten cities have been selected as the hosts of the said event.
The Mazda event for this year has already started just last 12th of August in the key city Washington, DC. The venue has had blazing Mazda vehicles all around and those event goers were able to experience the drive of their lives with the various Mazda vehicles included in the tour. And what is even grand is that they were able to use the vehicles through four different courses.
Last August 19th to the 20th, Boston was the stop. New York became the chosen city for August 26th to the 27th. Other cities where the Mazda Zoom Zoom Live Tour would be stopping include Miami (September 9-10), Houston (September 16 to 17), Dallas (September 23-24), Atlanta (September 30 to October 1), Chicago (October 7 to 8), San Francisco (October 21-22), and Los Angeles (October 28th to the 29th).
If you are interesting in catching the mentioned event, you need not worry about any fees for it is open and free to the public. You can even find more information at www.ZoomZoomLive.com.
