Financing > Buying Versus Leasing A Car

Buying Versus Leasing A Car

by: Jeff Neilan

If you are considering whether to buy or perhaps lease your next car and which would afford you the best deal, most consumer experts agree that from a purely financial aspect you will be better off in buying your next car.

Of course paying cash in full is the best possible scenario since with this option you would avoid any type of finance charge. But for the vast majority of us and for the scope of this article we?ll take a look those purchases or leases that involve financing.

In the short term leasing may look attractive to you because monthly lease payments will more than likely be less than the monthly payments of a purchase agreement. Why? Because with a lease you are essentially only paying for the part of the car you are going to use. It?s kind of like splitting the cost of a pizza with someone. You are only paying for the pieces that you are going to eat. In car terminology the part that is left over in a lease is called the residual value of the car. The higher the residual value of the car the less of the car you will use during the lease so you payments for the part that you do use (the lease) will be lower.

Typically lease durations are 24, 36, or 48 months. Do not sign up for a lease beyond 48 months. Actually anything beyond 36 months is pushing the value of the lease. Don?t let the car salesman get you into a longer lease just because they make your monthly payments look more attractive. Remember time costs you money and the car?s residual value will plummet and you loose all the advantages of leasing and still be left with nothing in the end.

For some drivers the car buying decision isn?t based purely on bottom line numbers. And this is fine. It?s strictly personal. Leasing does afford you the ability to always be driving a new car. A car that is within a few years of the latest body style and technology. A car that is always under the factory warranty. For the person that has accepted the fact that they enjoy being in a newer car and that car payments is just another monthly expense, then why not get the most car for the money? Then leasing could be a good alternative.

If this is your personal preference the other two questions you must answer are how many miles a year do I drive and how hard on cars am I? The mileage question can really come back to haunt you if you are not careful. People who are in new cars and thus enjoy driving them and showing them off more will have a tendency to drive them more. Be very careful with you mileage. Going over your allotted mileage on your lease could end up costing anywhere from 15 to 30 cents per mile beyond the lease mileage allowance and this can get painful in a hurry. In most leases you can purchase additional mileage up front at the time of the lease but keep in mind if at the end of your lease you haven?t used all of your miles, you don?t get that money refunded back to you.

I mentioned a bit earlier you need to consider how well you treat your cars. Only you will know this and you need to be honest with this one. Don?t think that you can turn your lease car in at the end of the lease with the car in sub par condition. If you do, you may be assessed reconditioning fees that could become rather hefty.

In summary, from a purely financial perspective buying your next new car is the best over the long haul. But, car with car ownership, so much personal preference, and personal priorities come into play. If you think leases look attractive, be absolutely certain about your mileage you will drive. Take good care of the car. And finally check with your insurance agent first to make sure that you don?t give back the money you save in monthly payments to your insurance company.

About The Author

Jeff Neilan worked for many years in the automotive industry as a salesman, finance manager, new and used car manager, and general sales manager. With Jeff's working knowledge of car dealerships, car sales, and financing you'll find his articles on getting your best car deal insightful and rewarding when purchasing your next car.

Please visit http://www.acarbuyersguide.com for more of Jeff's articles.

Home Equity Loan Comparison - Access Your Home's Equity Through A Second Mortgage Or Equity Loan

by: Carrie Reeder

You can access your home equity without the cost of refinancing with two financing options. A second mortgage will give you a lump sum check with a fixed or adjustable rate. A home equity line lets you tap into your equity when you want to. Both options allow you to write off interest on your taxes and avoid high financing costs.

Benefits Of A Second Mortgage

A second mortgage allows you to borrow up to 90% of your home?s value. The lender, which doesn?t have to be your primary mortgage lender, writes you one check. You can choose to pay off credit cards or make a major purchase.

Fees are none to minimal with a second mortgage. Rates are usually fixed and last 15 or more years. A 15 year loan lets you pay off the debt quicker, saving you cash on extended interest payments.

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Home Equity Loan Comparison - Access Your Home's Equity Through A Second Mortgage Or Equity Loan

Financing > Home Equity Loan Comparison - Access Your Home's Equity Through A Second Mortgage Or Equity Loan

Financing With A Home Equity Loan

Financing With A Home Equity Loan

by: Joseph Kenny

If you have good credit, a homeowner, your mortgage is paid on time every month and you are thinking about borrowing money, the home equity route may be the way to go. What this allows is suppose your home is worth substantially more than your current mortgage, for example, your mortgage is for ?100,000 but your home is worth ?200,000, you will have an equity of ?100,000 in the value of your home that you can borrow against.

A home equity loan can be used for many purposes:

-Paying off other debts;

-Taking a holiday;

-Paying for university;

The loan is secured over your home, and therefore, the interest rate will generally be lower than for other types of credit that may be available. This makes them a good option for paying off higher interest debts, so long as you don?t rack them up again, or taking on a larger project such as a house extension. It is often a good...

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What is Bad Credit UK?

by: John Mussi

Bad credit UK is a term that many people don't fully understand. After all, credit itself can sometimes be difficult to understand? adding the description of ?bad? to it can make it that much more confusing.

But bad credit UK doesn't have to cause unnecessary problems? you just need to learn what it is and how to deal with it so that you can correct it and turn your bad credit UK around.

What is credit?

Credit, or more specifically your credit rating, is a numerical score that's determined based upon the reports of banks and other lenders who you have had a loan, account, credit line, or other form of financing with in the past.

Positive reports increase your credit rating (resulting in good credit), whereas negative reports reduce your credit rating (resulting in bad credit UK). Of course, one or two negative reports won't cause you to have bad credit UK ? it takes time and specific actions...

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Where to Look for Business Financing

Where to Look for Business Financing

by: John Mussi

Starting a new business can be difficult? in addition to creating a business plan that will outline what your business intent is and finding the contacts and locations that you'll need, finding the money that is needed to get a business off of the ground can sometimes seem impossible.

If you're not exactly sure how to get the money that you need, you'll find several suggestions below.

From information about traditional bank loans to finding investors, you're sure to find something that helps you to get on the right track toward the money that you need.

Bank Loans

The first stop for many potential business owners is their local bank. Many banks offer loans for startup businesses, though the process for applying for a business loan from a bank tends to be a bit more in-depth? after all, they want to make sure that your business plan is solid and that they'll get their money...

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Car Insurance For Lady Drivers

by: Joseph Kenny

Car insurance companies prefer lady drivers to their gentlemen counterparts because they are considered as much less risky drivers. It is not that the accident rates of ladies are low. They face as many accidents as males do. However, the damage caused by them is not as much in most of the cases. So, their claims after the accident are also less. That is why on an average women?s car insurance premiums tend to be...

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Should You Consider Home Refinance, or Not?

by: Jay Moncliff

Home refinance seems to be the craze these days with interest rates at all time lows. However, you need to do some home refinance research before you will know if it is for you or not. In general, if you bought a home when interest rates were significantly higher, have great credit, little debt, and always pay your bills on time then you should probably at least consider home refinance. Although, if...

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Preventing Water Damage in the Basement

by: Leo Nov

A wet basement can quickly develop into a complete disaster. Many maintenance systems are installed in the basement. These systems generate moisture leading to potential water related problems. A periodic inspection will provide accurate indications for a water problem somewhere else in your home and can help preventing a much bigger damage.

Heating and Air Conditioning System

HVAC systems must be...

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Financing > Preventing Water Damage in the Basement