Additional things to consider…

So you’ve fallen in love with a new car model and you want to look into being in one yourself. Here are a couple of things that we may forget when test driving a car.

tire-pixaThe spare tires are impartant. Most of the time we don’t know what kind of spare tires we have until we get a flat. Spacesaver spare tires are what many cars come with. Always investigate your new cars spare tire. The space saver is a bad tire, especially on SUVs. It would be fine if you only have a few miles to go on it. But it’s not safe if you have to go a long way. They are limited to how fast you can go. These small tires also don’t grip the road well.  Most people don’t realize they may have the option to get the full size spare tire. The dealer may be able to get you a spare tire for free. It’s not a bad idea to negotiate getting a full-size spare at the dealership when getting a car.

Another thing to look at when evaluating your car is how adequate the high beams are for night driving. It’s not as important if you night drive in the city, but if driving in the country a lot it’s best to have good high beams. To maximize your night vision on the road, the LCD display also needs to dim in a sufficient way. If it doesn’t dim at all, then that could be a problem in safe night driving as it is difficult to see. This is vital for driving at night in dark roads, not as important when driving around brightly lit areas.

How about the car’s upcoming product pipeline? It’s good to pay attention. You don’t want to get a great vehicle only to see the manufacturer upgrade it to the next thing a few weeks after you drive off in your car, which becomes relatively “obsolete.” Do your research and find out what’s going on with the series.

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What to Consider When Leasing

Leasing a car

car

 

People are pinched in their wallets and are looking to save some money where they can. With slow economic growth and cautious lending from banks, leasing is the fasting growing forms of vehicle finance.

There’s always a huge draw to owning a car. Yet leasing offers you the ability to pay for just the amount of depreciation of the car being used during a specific term, rather than paying for all the depreciation when it is purchased up front. In a nutshell, you own the decreased value of the car when you own it.

Is leasing the right option for you? The best reason to lease a car is so that you can turn your vehicle into an expense rather than into a depreciation asset. Until the car is paid off, there is no ownership. If you’re not thinking of keeping your car for longer than a few years, then you may find it’s easier to use it than “own” it. Eighty percent of the time people want to change their car after 3 years.


When it comes time to trade the car in, you just return the car and not have to pay the bank a settlement as if you were financing the car. You’re paying for the use of the car rather than buying it. With leasing, there’s a bit more work to do up front in considering the terms of the agreement. Look for the buying payment as well as the car that you want, and the kind of mileage anticipated, damage policy.

signsYou can still trade it in at anytime. There is open-ended and close-ended leasing. Leasing got its bad name from using open-ended. When the lease was up, customers would want to return the vehicle, and be hit with unexpected low value of the vehicle where the customer would have to pay a buyout just to return the vehicle. In a closed, the final dollar amount given is what your car is worth at the time. The customer needs to know the difference. Knowing that there is equity in the vehicle, the close-ended customers are likely to purchase the car at the end of the term.

Business owners who put a lot of annual miles find it a benefit to pay for the miles up front at a low fee. People need a lower monthly payment and if financing makes the monthly payment go higher because of the value of the car.

So, it really depends on how long you plan to keep the car and how many miles you plan to drive it each year. Gap insurance bought along with the lease agreement may raise the insurance price.

Make sure to negotiate the best lease as possible. Don’t settle for an agreement where the dealer want to toss in a lot of fees. Consider the MSRP of the vehicle, the selling price (which must be below the MSRP), the incentives and rebates before you start negotiating.  Put as little money down on the lease.

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