Leasing A Car As One Of The Best Automotive Vehicle Finance Choices

June 16th, 2010

Planning on buying a new car ? With all the changes in the world and international financing your next automobile purchase may well lead you back to the world of leasing. Financing may be increasingly difficult to get but not perhaps a lease on the car where you lease or rent the car , pay regular payments and the ownership of the car remains in the hands of some or some corporate or financial owner.

Still there are pitfalls and common mistakes to avoid. What cards to play and tactics should a new car owner employ even if they know from the get go that leasing a vehicle s their best option by far.

First of all it’s best not to announce when shopping for a car that leasing is your preference. Why not leave all options on the table. First of all, who knows, the standard car payment purchase plans may be offered to you. Next you are in a better negotiating position overall to get the best deal. It’s always best to keep your cards close to your chest . Be careful that family members, along for the ride and purchase, do not let out privileged information inadvertently . Industry consultant Winnipeg based William Simpson pointed out that the automotive industry sharp salespeople will always be on the lookout for “Radio Moscow”.

Do your homework first and foremost. As a buyer or lessee you have a right to know the capitalized or “cap” cost. There is no way to calculate your “APR” or “Annual Purchase Rate” without this magic number. Insist that the vital cap cost be given and divulged to you. If not – then in this day and age there are plenty of other automotive dealers to buy or lease a vehicle from.

It is an interesting fact that many leased vehicle buyers are more than happy with their vehicle even after the covered time period. The car started new. You know its history and maintenance schedule and routine and any accident history since you are the original owner and driver. It’s not as if you had even purchased a one year vehicle from a dealership – which was most likely a drive rental vehicle and most likely will not have such a clear and known record. You may well decide to extend your lease period. Ask upfront about any lease extension terms, rates and additional add on costs or fees. You may not want to lock yourself in at the beginning for a very long term lease – yet if you are happy with the vehicle – then by extending the lease period you may find it a very easy and nice way to reduce your monthly payments , while driving a known and reliable vehicle that you still enjoy.

Lastly examine and take into account any assumptions that you may currently have of your driving habits. Not only with a newer or more reliable vehicle may you drive more or motor vacations that you may not of considered in the past but also there may be additional drivers that come onto the scene who would of not of been included before. Spouses or kids with driver licenses may well add miles to the vehicle on a regular ongoing basis that may not of been included in your or the leasing agent’s quick calculations when the whole deal is set up. Mileage over a given threshold may invoke not unsubstantial costs, fees and penalties.

In the end in shopping for a new vehicle – be it purchased outright, be bought on payments or leased it is always best to do careful and thorough homework and never be afraid to ask questions. Purchasing a vehicle is always a case of buyer beware and purchaser err on the side of caution.

Comments ( 0 )

, , , , ,

Do Your Financial And Automotive Homework Before Buying Or Leasing Your Next Vehicle

June 15th, 2010

Is leasing a car, rather than purchasing a car on time payments a good thing or not. As with questions in life, it all depends on your financial and/ or automotive situation and as well who tells the story.

It is true that business can write off lease costs whereas that is not such an advantage to an individual car user. However this is not necessarily so. First it all depends on your situation and as well you’re negotiating skills. It is always better to be in an informed and prepared manner.

First of all leasing a car is downright attractive due to current low interest rates. Almost every month you will read in the popular news that the “Fed has cut interest rates again”. What this means to you is that in an overall sense that interest rates are less to you. This should mean lower leasing costs to you. If interest rates, in the banking industry and market are lower, so should be the interest rate basis in your lease negotiations and payments.

What are the advantages of leasing a vehicle? You will get a new vehicle to drive. When your leasing agreement term is over – then you hand the car in and walk away.

It may be debated that by leasing the car you will have no equity or asset accumulation left at this point in this automotive transaction. If you had bought the car, with payments, the car would be yours at some point, lock stock and barrel.

However major components and overall costs of running a car are maintenance costs. With a new vehicle – it is unlikely that you will incur these costs. First of all the car is new. Major repairs and costs are unlikely. In addition the car will come with a manufacturer’s warranty which should cover you for the majority if not all of the lease time period.

With modern, newer and especially smaller cars it seems that all repairs seem to be very expensive. After a certain point of time, use and mileage, it is not as if the car “nickel and dimes” you to death. Most of the innards of modern cars seem to be electronic in nature with advanced (read expensive and hard to fix) modules. There are few simple to repair mechanically based, non electronic component, cars. In addition for mechanics to work on cars now “everything is struggle’ “and as well spaces are tight and very hard to work within. In a summary the old “nickels and dimes” are now “five hundreds, thousands and several thousands”. With a leased car arrangement you may not own the car, with its equity. Neither do you have repair costs and heartaches. In addition you have a reliable vehicle to get you to work or to chauffer around your family.

There are several terms and factors to be knowledgeable about in your calculations and comparisons for auto purchase versus lease workup and lease negotiations.

First of all research the leasing tax rules in your jurisdictions. For example in your state you may well only pay sales taxes on monthly payments, not on the cost of the vehicle. It all depends on the negotiations of your payments- which involve the time frame and value of the car at the take back time end of lease.

Next what are the fees? For example the fee at the end of turn in, paperwork fees and fees for “excess miles”. Are these negotiatiable? In the case of the “excess mileage” and “excess mileage fees” are these carved in stone or can the allotment or rates charged be reduced? In the case of the “turn in” fee. If you offer to increase your monthly payment – often this fee will be reduced.

In order to best negotiate you will have to speak the same language and terms as the lease negotiator. Several terms to know, comprehend and understand are “Capitalized Cost”, “Money Factor” and “Residual Value”.

Simply put the cost of the leased vehicle is confusingly described as the “Capitalized Cost”. Just as you would haggle over the cost of buying a new car, you should not accept a stated price or manufacturers suggested retail price (M.S.R.P.) as the price paid.

Haggle and argue over the “Capitalized Cost” just as you would in any car or automotive deal.

Next in line in proper automotive leasing terms is the term “Money Factor”. “Money Factor “is the interest rate upon which the leasing calculations are based upon. The lower the number of the “Money Factor”, the better for you. As a rough guide and estimate multiply the “Money Factor” value by 2550 to get an estimate of the relevant interest rate.

Last in the line of leasing and leasing lingo is the term “Residual Value”. “Residual Value” is the amount that the car, S.U.V. or truck vehicle is said to be worth at the end of the lease period. Simply put, the more the vehicle is deemed to be worth, at this time period, the less will be your total amount due to be paid overall for your lease. Thus the higher the “Residual Value” at the end of your lease, the much lower will be your monthly lease payments.

In the end, your car purchase or lease decision will come down to two factors. Reliability of transportation and the total cash outlay from your personal pocketbook or wallet.

Comments ( 0 )

, , , , , , ,

Lamborghini Sports Cars – Automotive Legends Both in Styling and Vehicle Performance

June 14th, 2010

For the legendary Lamborghini sports car stable of fantastic ultra high performance and styled vehicles it all started with ordinary Fiat automobiles and tractors.

Mr. Lamborghini – fully named – Mr. Ferruccio Lamborghini got his start with Fiats and then went on to a large successful manufacturing concern that grew from a small manufacturing shop into a major producer of tractors. However at a certain point in every person’s life they search out to complete what their real passion is. In the case of Lamborghini was finely styled and crafted motor cars. At 60 years of age, an established manufacturer of agricultural tractors – Mr. Lamborghini – decided that he could a better job of building a high end, beautifully styled, performance racing automobiles than either of the two dominant Italian auto firms of that auto industry sector – Ferrari and Maserati.

The first product out of the door had a chassis that was multi-tubular; the engine was front mounted sporting a 3.5 liter 12 cylinder V-12 engine. The V-12 engine itself was fitted with six Weber carburetors and ran four overhead camshafts. It all clocked at 360 ultra smooth horsepower with the transmission drive being through five speed stick shift. Suspension involved a coil and wishbone independent suspension set up. In one word it was wow – both in terms of performance of the hop as well as the automotive styling.

Although the styling of those early Lamborghini models may be considered standard Italian sports car design – designs which have worked their way into the so called standard “sport scar designs “and “sport scar flair”, at the time it was new and innovative and for the most part if was twenty five years ahead of anything produced in the good old U.S.A. . The one American sports car which might be considered an exception to that point was the Chevrolet Corvette. For years to come nothing else really matched or was similar to the clean aerodynamic lines and styling of the early Lamborghini classic autos.

Even then Lamborghini had such innovative products the establishment and reputation of the Lamborghini product line was no easy road to hoe. Although the first cars were produced in 1963 it was not for two years later – at the Turin Motor Show that the car began to attract solid interest and for the reputation of the car and its studio to grow and begin to become accepted for what it should be.

The first real product of record for Lamborghini was what was marketed as Miura T 400 model automobile. Its first year of manufacture was the 1966 model year. The basic layout and design of the Miura T 400 was a mid-engined coupe with a slightly larger version of the overhead cam engine – the classic V-12 laid out transversely behind the two seats of the car. The rear wheels were then driven by this engine through” spurs gears”. Interestingly the gear boxes and rear axles were Lamborghini products all by themselves -so they shared a lineage that was unique and not the same as any other of the competitor’s models.

What was performance of this little cat? The V-12 engine could pour out a total of 385 barrel horsepower. Top speed of this little coupe was over 180 miles per hour. It could more than carry its weight with the local Italian contenders – even the famed Ferraris.

If the was one complaint from drivers or riders it was of noise levels in the car’s cockpit. It can be said that this was the price to be paid for success or in this case speed and performance. If you cannot stand the heat don’t stay in the kitchen. Certainly the buyers of Lamborghini fine motor cars who bought the product and established the revered name for its performance and advanced styling and forgo this small shortcoming or foible as the car as an assumed fact – even a luxury.

The next model in the Lamborghini stable was introduced approximately two years later. The entire life of the production run of the popular Miura model was nine years – with two cars being produced a week ( a production figure of only 100 or so cars a year). The name of this vehicle was the Espada. For the new Lamborghini model, the Espada, Lamborghini went back to a more standard front engine layout. Perhaps this was in response to concerns over noise levels in the cockpit of the Miura and the need to produce a more “standard” or “civilized “vehicle product. No one really knows what went on in the mind of the genius Ferruccio Lamborghini. However what was retained for sure were the Lamborghini basics – the four liter V-12 massive highly tuned engine with whizzy overhead cams and multiple choke carburetors all putting out massive automotive performance and handling.

In the end it can be said that the Lamborghini automotive and automotive styling and performance legends are more than unique and reek of power, thrust and acceleration.

Comments ( 0 )

, , , , , , , ,

The Truth About Automotive Vehicle Rust

June 12th, 2010

Rust rust rust . Live long enough and it will eat your vehicle alive leaving your car, truck , SUV or truck in one tangled ugly and perhaps unsafe in any roadworthy means . Rust is ugly and disfiguring to your automotive vehicle. What is rust and how it can it be prevented or at the worst dealt with ?

Scientifically “rust” is the oxidation process of metals. That means that the gas oxygen , which we need to live and breathe , that oxygen mixes with the metal of your treasured possession – that is your automotive vehicle , combines with that metal and creates , in the case of your vehicle , damaging rust. Rust development and growth is greatly helped along by moisture and a slight electrical current. Some areas of the United States and Canada are worse than others when it comes to rust and rust formation. Worse areas seem to be areas of high moisture , and a high concentration of salt on the roads or conversely areas of melting snow or rainfall that use a lot of ice to keep their roads free of ice and snow. Conversely very dry areas – such as Arizona , or very cold areas where it never warms up – like the North Pole or Manitoba may have as much as a prevalence or incidence of rust on their vehicles. However just try to start your car in the dead of a Canadian or North Pole winter.

If anything rust damage must be treated almost as a dentist treats tooth decay that is you get out all the damage you can , as quick as you can . Then you promptly fill damaged areas – be it the cavity in your mouth with a filling by the professional in this case the dentist. In the case of your vehicle the auto body automotive professional cuts out all the damaged corroded metal – the rust on your automotive vehicle – and then replaces or fills in the area with new , clean , rust free metal .

To do it properly , to remove the rust fully and completely takes time , energy and cost. It must be noted and more than emphasized that generally the rust that you see is the surface rust component only. Its like the iceberg that hit the Titanic – where only the smallest component of that giant iceberg that did in the giant ship the Titanic was above water. The majority was below the water surface , invisible , deadly and unseen yet doing its great damage . In the same way the largest , indeed almost all of the deadly rust is below the surface of the metal of your vehicle . Out of sight yet doing its great damage. Simply doing a cosmetic job and not removing the rust fully is shortsighted. That rust will return, grow and spread you can count on it fully. Think you can do a paint job over the rust and all your sins are covered – well you can but its simply a waste of time and your money. You are like the little boy simply “whistling Dixie in the dark”

In the end rust can be prevented on your vehicle to some degree through simple maintenance. Keeping your car dry , clean and repairing paint and metal damage spots promptly so that rust itself will not have as fast as chance to grow , spread and disfigure your automotive vehicle/

However once rust has taken hold on your car, truck , van or SUV there is only one sure , tried and true method of stopping rust – and its effect on the worth and depreciation of dollar value worth on your vehicle. That is a proper processional job of rust removal and repair at a professional auto body or mechanical shop or garage.

Comments ( 0 )

, , , ,