I’ll take you by the hand and show you the in's and outs of leasing, helping you decide which is better for you, taking the rebate or the special interest rates.  Bad credit or good credit, first time buyers, military, you name it and you can find it here.

If you want to keep your car until the wheels fall off, you’ll find tips to get the most out of your current car, everything from improving mileage, customizing, accessories and extended warranties.  Should you take your car to the dealer for service or can you do some things yourself.  What about the quick oil change centers?

Accidents and body shops; what should you do if you have a fender bender, your decision can cost or save you thousands and you will find the answers here, plus a whole lot more,

I'll show you everything you need to know.

  

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How does leasing really work?

    Leasing your next car may be the right thing for you or it may be the worst mistake of your life, causing you to despise all car dealers who suggest it. 

Leasing may be right for you if:

You normally trade your car before it’s paid off.

Are stable in your job and home and are not planning on changing your normal commute and annual mileage.

Realize that cars are among the worst “investments” you can make.

Have good credit.

Are concerned about the future resale value of the vehicle you’re getting, i.e. “a large SUV in the face of rising gas prices”.

Most of us know someone who has had a bad experience with a lease and they go out of their way to tell everyone what a rip off it is; truth is they probably didn’t ask enough questions or didn’t know what they were doing.

Don’t sign anything you don’t understand!!  This goes for any contract you’re being asked to sign.

Leasing 101

    Leasing is best related to renting an apartment; you are paying a monthly usage fee that covers the depreciation of the car over a period of time e.g. 3 years.  During the term of the lease you are expected to perform any required maintenance, any damage due to accidents is to be repaired professionally and to use the car “normally”.  Excessive wear and tear will be billed to you at turn in; just like an apartment you can’t tear out the walls and throw wild parties every night without being penalized.

Lower you monthly payment.  Because you are only paying the depreciation of the car and not trying to pay it completely off your payments are generally lower on a lease vs. purchase.  Never enter into a lease solely based on the payment; or any other financing for that matter it’s a sure way to get taken.  The sale prices on leases are negotiable just like purchases so don’t be a “payment buyer” or they’ll get you.

Lease terms you need to know.  The residual value is the amount you can buy the car for at the end of the lease term; it is a percentage of the car’s MSRP and is part of what determines the payment.  You should always calculate your own lease before signing and the residual is one of the figures you will need to do this.  Gross capitalized cost is the loan grand total before any down payment and the net or adjusted capitalized cost is your loan amount after any down payment or trade equity.  The money factor is used to calculate the rent charge and is usually a decimal such as .00312; a simple way to roughly derive an interest rate from the money factor is to multiply it by 2400 i.e. (.00312 x 2400 = 7.49).  Leases are not calculated the same as a retail loan so be sure to use a “lease calculator” to be sure nothing extra is finding its way into your deal.

“But I drive a lot of miles”.  Leases vary from lender to lender but most will offer annual mileage limits from 7500 up to 30,000…yes 30,000 miles per year!!  Most lease companies limit the total mileage to 100,000 over the course of a lease so the term has to be short enough that you won’t exceed that.  Often times, especially when looking at highline cars, the residual value on a high mileage lease is much better than what you could hope to sell the same car for if you owned it.  The bottom line here is to do your own comparison; luxury cars will depreciate a lot when talking about “high miles” and a lease can limit your loss.

Never, ever lease from a bank.  Personally I will only do a “factory sponsored” lease and here’s why.  The factory has a vested interest in your satisfaction with the lease program, if you get smacked at the end with a bunch of bogus charges, wear and tear fees etc., you will be less likely to get another one; banks on the other hand have nothing to lose and tend to be much more strict in accessing damages at lease termination.  The rates for “factory” leases are often enhanced to help lower payments and when it comes to interest, less is better.

Make your lease term match your warranty.  As a rule, you never want to lease beyond a cars’ factory warranty; you want the car during the “best part of its life”.  Think about it, the only additional expenses you’ll have are your maintenance costs.  If you need a longer term to keep the payment affordable, then you’re probably looking at too much car!!