A lease consigns you to always making payments...
At the end of most leases, the contract entitles you to buy the vehicle at a set price. If you choose not to you can just walk away. Had you purchased the car you would still be paying 1 to 2 more years and would be in a position to having to sell the vehicle or trading it in at a price that may not meet your expectations. Generally most consumers stay in a late model vehicle until warranties run out or we just grow tired of the car we are in. In a leased vehicle your finance period is much shorter and you options to change to either upgrade, downgrade or stay in a similar vehicle that is brand new again much sooner than in a traditional finance.
There are additional expenses at lease end…
If all requirements concerning vehicle condition and mileage are fulfilled, there is no further obligation at lease end. You may simply turn it in and walk away, purchase the vehicle or lease another new vehicle. Every lender is different and it is important to read about the lease termination requirements for each lender.
Wednesday, May 23, 2007
Thursday, May 17, 2007
'08 CTS the other half of the bookend.
The introduction of the redesigned '07 Escalade has redefined Cadillac's position in the luxury SUV market. The '08 CTS will do the same in the entry level luxury sedan market. This revolutionary automobile will be available in the fall of this year and will dominate this market segment. In Cadillac's bookend strategy of the large SUV market and the luxury sedan market, the CTS will be a phenomenal automobile and the buzz has already started. The ’08 CTS is a superb combination or performance, design and luxury. Take a look on the Cadillac site http://www.cadillac.com or the blog conversations about the car http://cadillac.gmblogs.com/.
Photos of the car on worldcarfans website; http://www.worldcarfans.com/photos.cfm/photoID/3070109.001/country/acf/cadillac/2008-cadillac-cts
Photos of the car on worldcarfans website; http://www.worldcarfans.com/photos.cfm/photoID/3070109.001/country/acf/cadillac/2008-cadillac-cts
Tuesday, May 8, 2007
More misconceptions about leasing.
In spite of surging popularity, numerous misconceptions about vehicle leasing remain:
MISCONCEPTION#1: Leasing a new car costs far more than buying it.
When you finance your car with a loan, you gradually build equity as you pay it off. The value of the vehicle may be considered equity only if the total amount you have paid on the loan, including your down payment, is less than its current market value.
E.g. $30,000 vehicle = $32,800 after tax, tags and fees with $2800 down financing $30,000 @ 7% for 60 months is $594 per month. So after 3 years you have paid $24,184. What the vehicle is worth has many factors but on average we will estimate 50% value = $15,000. The remaining payoff is $14256. By more than half way through the term of the loan you are in an equity position (possibly based on current market conditions on the vehicle). Depending on the type of vehicle the lease payment would have been half of the finance payment for 3 years and the end value is guaranteed in writing. $297 for 36 months with half the down payment =$12,092 paid out vs. $24,184 for the same car.
Today most drivers are ready to trade their vehicles long before paying them off. This makes the idea of building equity a false hope. Lease agreements guarantee the value of your car at the end regardless of market conditions. If it does happen to be worth more exercise your purchase option, sell or trade the car and keep the equity. If not simply turn the car in and pocket your savings. The value of the money saved from less or no down payment and lower lease payments during the life of the lease could actually be greater than the vehicles market value at the end of a conventional loan.
More to follow…
MISCONCEPTION#1: Leasing a new car costs far more than buying it.
When you finance your car with a loan, you gradually build equity as you pay it off. The value of the vehicle may be considered equity only if the total amount you have paid on the loan, including your down payment, is less than its current market value.
E.g. $30,000 vehicle = $32,800 after tax, tags and fees with $2800 down financing $30,000 @ 7% for 60 months is $594 per month. So after 3 years you have paid $24,184. What the vehicle is worth has many factors but on average we will estimate 50% value = $15,000. The remaining payoff is $14256. By more than half way through the term of the loan you are in an equity position (possibly based on current market conditions on the vehicle). Depending on the type of vehicle the lease payment would have been half of the finance payment for 3 years and the end value is guaranteed in writing. $297 for 36 months with half the down payment =$12,092 paid out vs. $24,184 for the same car.
Today most drivers are ready to trade their vehicles long before paying them off. This makes the idea of building equity a false hope. Lease agreements guarantee the value of your car at the end regardless of market conditions. If it does happen to be worth more exercise your purchase option, sell or trade the car and keep the equity. If not simply turn the car in and pocket your savings. The value of the money saved from less or no down payment and lower lease payments during the life of the lease could actually be greater than the vehicles market value at the end of a conventional loan.
More to follow…
Wednesday, May 2, 2007
What cleaner or wax can I use on my car?
I get asked this question a lot and generally there is no absolute answer but here a few tips. The biggest mistake that owners make is going into a car wash that allows brushes or material to hit the surface of the car. Sand, grit and road grime are enemies of paint and particularly dark paints, which scratch, swirl and leave visible marks on the paint surfaces that can dull your finish. A great product is zaino wax finishes. I do not endorse many products but this is one of the best I've seen and used. They are on the expensive side but do the job very well. Check out their website.
http://www.zainostore.com
Everyone loves show cars. They're gorgeous! And, some of the special effects are nothing short of breathtaking. There's no reason you should have to wait for a car show to admire cars. Zaino engineers unique products for car enthusiasts, who believe that expense is secondary to results. Research and development in advanced molecular-chemistry has resulted in Show Car Polish™ products that offer the wettest-looking, clearest, deepest, and longest lasting finish in the industry. Best of all, Zaino Show Car Polish™ creates an award-winning finish without the use of abrasives or harmful silicones. If you want your car to look its best for many years to come, these products include the most powerful sun-block available in a paint protection system: UV-40. This polish is literally sunscreen for your car.
http://www.zainostore.com
Everyone loves show cars. They're gorgeous! And, some of the special effects are nothing short of breathtaking. There's no reason you should have to wait for a car show to admire cars. Zaino engineers unique products for car enthusiasts, who believe that expense is secondary to results. Research and development in advanced molecular-chemistry has resulted in Show Car Polish™ products that offer the wettest-looking, clearest, deepest, and longest lasting finish in the industry. Best of all, Zaino Show Car Polish™ creates an award-winning finish without the use of abrasives or harmful silicones. If you want your car to look its best for many years to come, these products include the most powerful sun-block available in a paint protection system: UV-40. This polish is literally sunscreen for your car.
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