Auto Finance - How to Finance a Vehicle

Auto manufacturers go to great lengths through their website and through the individual dealerships to stress the benefits of leasing a vehicle, and in particular trying to make individuals aware that leasing a vehicle is of benefit to private individuals, and is not simply some type of corporate expense or add-on.

It might be helpful to consider the idea of leasing any vehicle as similar to that of renting one, or hiring one. Most people are familiar with car hire and car rental processes, and in some ways leasing a vehicle is quite similar except it is on a long-term basis.

The costs involved can be fairly similar to that of purchasing a vehicle outright, the real benefit being that the individual is effectively buying a new car in a way that would be impossible if they were to purchase it outright.

When leasing a car, the main decision at the end of the day is simply a numbers one, as to whether it makes more sense financially than to buy one on finance or credit. To understand this it is worth examining in detail the costs involved when deciding to lease a vehicle.

Firstly check out the main manufacturers website for the country where you live. Companies periodically offers special deals on specific cars, and often offers specific deals on leasing specific cars that may be relevant for where you live.

Once that is done then it is important to understand the principles involved in the costs of leasing a vehicle. There will be a down payment required for the car, and a fixed monthly payment for the specified period of time of the lease, this is likely to be between 24 and 60 months.

In addition to a down payment, there are likely to be what are known as dealers fees which can cover a number of costs payable at the outset of the lease.

These can be quite considerable, and should be clarified and specified by the dealer at the outset of the process. There should be considerable room for negotiation with a number of these dealers fees, as they supposedly relate to costs the dealer has incurred, the majority of which can sometimes be quite inflated.

The lease should also specify what happens at the end of the lease. There will be a number of costs involved in terms of making sure that the vehicle is in a reasonable condition and does not need any major work either structurally or mechanically. There should be an allowance for wear and tear provision over the period of the lease and this should be specified in its terms and conditions.

There should also be provision for what happens when the lease ends, either by way of trading the vehicle in or agreeing an extension of the lease or agreeing a new lease on another vehicle. Whilst all these will be determined at the end of the lease, specifically in terms of costs, the dealership should be able to give you an idea of what sort of sums are likely to be involved given their experience and history on offering vehicle leases to other customers.

Once the individual has a real idea of the costs involved, they should be in a realistic position to assess the value and benefit of leasing a vehicle as against buying one outright or buying a used one at a lower cost.

Auto Finance - Benefits of Leasing

Auto manufacturers go to great lengths through their website and through the individual dealerships to stress the benefits of leasing a vehicle, and in particular trying to make individuals aware that leasing a vehicle is of benefit to private individuals, and is not simply some type of corporate expense or add-on.

It might be helpful to consider the idea of leasing any vehicle as similar to that of renting one, or hiring one. Most people are familiar with car hire and car rental processes, and in some ways leasing a vehicle is quite similar except it is on a long-term basis.

The costs involved can be fairly similar to that of purchasing a vehicle outright, the real benefit being that the individual is effectively buying a new car in a way that would be impossible if they were to purchase it outright.

When leasing a car, the main decision at the end of the day is simply a numbers one, as to whether it makes more sense financially than to buy one on finance or credit. To understand this it is worth examining in detail the costs involved when deciding to lease a vehicle.

Firstly check out the main manufacturers website for the country where you live. Companies periodically offers special deals on specific cars, and often offers specific deals on leasing specific cars that may be relevant for where you live.

Once that is done then it is important to understand the principles involved in the costs of leasing a vehicle. There will be a down payment required for the car, and a fixed monthly payment for the specified period of time of the lease, this is likely to be between 24 and 60 months.

In addition to a down payment, there are likely to be what are known as dealers fees which can cover a number of costs payable at the outset of the lease.

These can be quite considerable, and should be clarified and specified by the dealer at the outset of the process. There should be considerable room for negotiation with a number of these dealers fees, as they supposedly relate to costs the dealer has incurred, the majority of which can sometimes be quite inflated.

The lease should also specify what happens at the end of the lease. There will be a number of costs involved in terms of making sure that the vehicle is in a reasonable condition and does not need any major work either structurally or mechanically. There should be an allowance for wear and tear provision over the period of the lease and this should be specified in its terms and conditions.

There should also be provision for what happens when the lease ends, either by way of trading the vehicle in or agreeing an extension of the lease or agreeing a new lease on another vehicle. Whilst all these will be determined at the end of the lease, specifically in terms of costs, the dealership should be able to give you an idea of what sort of sums are likely to be involved given their experience and history on offering vehicle leases to other customers.

Once the individual has a real idea of the costs involved, they should be in a realistic position to assess the value and benefit of leasing a vehicle as against buying one outright or buying a used one at a lower cost.

New Innovations in Traffic Safety

Traffic safety has improved by leaps and bounds just in the last few years. Here are some of the newest innovations you may be seeing on a road near you quite soon:

Traffic Circles

While traffic circles have long been a staple of European cities, they haven't been as prevalent in the United States. Now, traffic circles are popping up in many cities and towns where intersections have become too busy and traffic too difficult to manage. Traffic circles are proven to reduce the amount of crashes when compared to traditional intersections. The use of traffic circles completely eliminates many common crashes, including head-on crashes and t-bone crashes, as well as crashes from behind. This is because the traffic flows in a circle, so the only possible crash is due to sideswiping. They are also good for keeping traffic flowing instead of stopping and starting. Look for traffic circles to become more ubiquitous in years to come.

LED Flashers

LED's have been used in many applications for traffic safety purposes. There are new applications which are becoming more common though. With the issue of wrong way drivers, flashing LED signs have proven to be far more effective than just a simple wrong way sign which contains no lights or flashing. By incorporating flashing lights with or around the sign, this dramatically increases the number of wrong way drivers who will notice the sign and be able to turn around before entering the highway. Studies have shown that lights help greatly, but flashing lights take the visibility to another level, saving lives in the process.

Glowing Deer Antlers

For states where deer collisions are a common issue, some animal organizations have begun painting the antlers of deer with a glow in the dark paint. The glowing nature of the paint makes the deer far more visible at night and easier to avoid without causing an accident.

Super-sized Road Flares

Another new innovation in traffic safety is the super sized road flare which features LED technology. These flares feature several different flashing light patterns and are smoke and flame-free. They are also self charging and can last up to 10 hours on one charge. In addition, they are crush-proof, corrosion resistant and waterproof.

Mobile Alert System

There are now sound alarm systems available which can be used with cones, barricades and barrels. The system blasts a 125dB sound when vehicle impact is detected, which allows both drivers and road workers to move away from the area.

3 Reasons You Can Trust Used Car Dealers

When you are in the market for a pre-owned vehicle, you may not know who to turn to. Private sellers may not be selling you a reliable auto, and you have no warranty to protect you if your ride breaks down. The best way to buy a new-to-you vehicle is to trust used car dealers. Find out three reasons you totally can.

Reputation

Nobody will go to a sleazy dealership known for selling lemons, and used car dealers understand this. This is why they are super dedicated to only having the best pre-owned rides on their lots. They want to have a stellar reputation so they can maintain a great customer status in their area. With many companies competing for customers in this market, you can be sure that most of these companies are going to work hard to sell only quality vehicles that have a clear owner history. This is not something that you can be sure about when purchasing an auto from a private seller.

Great Selection

Not only can these types of companies be trusted with a great reputation, used car dealers can be relied upon to have a large selection of affordable pre-owned vehicles for you to choose from. Whether you have a limited amount of cash on hand or a budget in mind for making monthly auto payments, friendly associates can be trusted to work with your preferences and financial allowances to help you get a ride that you can enjoy for years to come. Not only do these companies have a great selection of automobiles to select from, many of these autos come with warranties, so if your purchase doesn't operate the way it should, you can have peace of mind knowing that repairs can be made quickly without any issues.

Financing and Legalities

The best thing that you can trust used car dealers with is your money. When you purchase a vehicle from this kind of establishment, there are many legal forms you have to sign that protect you, as the buyer, and them, as they seller, as well. You will get a payment plan (if applicable) and an interest rate, as well as a date that your final payment is due. You will receive the title to the vehicle as soon as it is paid off. When you purchase a vehicle from a private seller, you don't know if the title is clean and clear, and have less protection when it comes to making payments.

When you think about buying an automobile that has been owned by someone else, consider how used car dealers can be trusted to help you get a ride you can love. From a great selection of many quality automobiles to helping you with payments and financing, these companies can be relied on to help you from the beginning of your purchase to the end. As you undergo your shopping experience, keep these kinds of companies in mind, so you can have a comfortable buying experience.

Tips for Handling Car Dealers

Choosing car dealers is an involved process. For many of us, it takes months of planning and research. According to Dealerfresh, nearly half of us spend between one and three months shopping before making a purchase, and 83% of us conduct online research before settling on where to buy a vehicle. With all this preparation, it's possible to come out of the deal with exactly what we want. But spending time on the process can be extremely frustrating. Buyers report that their top concern when buying a vehicle is dealing with the sales staff. If you're worried, here are a few tips on how to handle common situations.

Clever Wordplay

Car dealers hire people who are good at making convincing pitches; that is, after all, what makes a good salesperson. For example, instead of greeting you with "Can I help you today?" the salesperson might present a leading question, like "What kind of car are you looking to buy today?" This makes it more difficult for you to answer with "I'm just browsing." No matter how you answer the leading question, the doors are open for them to guide you around the lot. So much for a peaceful look.

Although this forwardness does make some people feel uncomfortable, don't resort to hostility. Remember that while they're trying to help, they're also doing a job. First, be polite but firm. Tell them that you want to browse first, but that you'll find them when you are ready. Second, prepare questions to ask the salesperson, so you can feel comfortable talking about your options. If, after following this advice, you still feel uncomfortable, then it's time to trust your instincts and walk away.

Pricing Strategies and Tactics

If you're looking to trade-in a vehicle, someone from the dealership is going to look it over and appraise it. During the examination, they will be looking for any obvious signs of wear, neglect, or damage to point out to you. They do this so that, when they make their opening offer, they can name the lowest price possible. Remember, there's nothing wrong with immediately counter-offering-as long as you have a reasonable idea of what your car is worth to them. Take it to a disinterested party for an appraisal and check the blue book value. However, remember that, as middle men, car dealers will never pay as much as an independent buyer.

Car dealers almost always advertise in terms of monthly payments instead of the total price. If you see that a vehicle is priced for $27,059, it may deter you from coming in. However, seeing that "you can drive home right now" for $229/month might sound more appealing. So be sure to set a budget before shopping and stick to it.

Always show up prepared. Car dealers have their agenda (to sell you on something) and you have yours (to buy something). They do not want you to walk away. Negotiating is rather simple when you walk into the situation with a game plan at the ready. Just remember, look out for clever wordplay, do not be afraid to say no, and set a firm budget before shopping.

Good luck!

5 Insane Driving Laws From Around the World

These laws, however, are nothing compared to the bemusing road laws that can be found around the world. While we might see a lot of our laws of the road unnecessary, most of these seem downright pointless!

Russia Does Not Like Dirty Cars

For reasons that are only obvious to those inside the Kremlin, Russia have a law that states if you car is considered dirty by officials, you can be fined around 2000 rubles (£85) on the spot. Russian citizens have stated that they think this is just a way to gauge more money in fines from unsuspecting motorists. In any case, if you haven't given your bonnet a good wax and shine in a while, it is probably best to stay away from Russia.

You Are Banned From Driving On Certain Weekdays in Manila

In what seems like one of the most arbitrary rules in road law history, the capital city of the Philippines bans drivers from using their vehicles depending on the last letters of their licence plates. This is apparently in response to the terrible driving conditions across the city, where red lights are just a suggestion to stop and lanes are there to be changed as much and as fast as possible.

Don't Honk Your Horn near Sandwiches in Arkansas

Inexplicably, it is illegal to honk your horn near a shop that sells sandwiches or cold drinks after 9 pm in Arkansas. When researching this law, I couldn't find one explanation of why it was brought in and why no one pointed out how stupid it is. Thinking about this leaves the mind reeling with so many questions; why is it so specific about the temperature of drinks? What does car horns have to do with food? Was this a serious problem in Arkansas that needed to be stamped out?!

Drunks Can Only Sit in the Back in Macedonia

Driving while under the influence of alcohol is a pretty sensible law; you lose a lot of your sense of judgement while drunk and turn into an overconfident idiot. Less sensible, however, is the decision to make sitting in the front seat passenger seat of a car while intoxicated illegal. While it could be argued that being driving even close to the wheel of a car is dangerous, I don't think this is the case. Instead, this was probably invented by someone who likes a bit to drink and then to have a lie down in the back seat of a car while being chauffeured around.

In New Jersey You Cannot Pump Your Own Gas

Filling up your tank with petrol is by no means a difficult task, so it is difficult to fully understand the purpose of a petrol attendant. Surely, most people of perfectly capable of doing this themselves? New Jersey doesn't think so, as there is actually a law that requires every petrol station to employ an attendant to pump your gas. Some argue that this is a way of forcing job creation within the economy, but opponent of this argue that the money spent on this should be spent on more purposeful jobs, such as city beautification.

Three Things To Consider With Car Financing

Buying an automobile is the biggest purchase, other than a house, that most people ever make. Due to the high cost of automobiles, most people need a loan to complete the transaction. Here are three things that buyers should consider before they sign any car financing papers.

Other Loan Options

Many people will go to an auto dealership, pick out the model in their price range, and begin negotiating with a salesman. What people do not realize is that dealerships are limited in the deals they can offer by their own banks. While many salesmen would love to offer every customer zero percent financing for six years, they just can't. In order to save money and increase their power during negotiations, buyers need to secure outside car financing before they ever walk onto the dealership. This can commonly be achieved through your bank or local credit union. In some cases, you might be able to obtain a better rate from your own institution.

Consider Leasing

If you purchase a new vehicle every few years, it is possible that leasing an automobile might be a better option for you. Monthly leasing rates are generally lower than purchase rates. Furthermore, you generally get to drive a more expensive model than you would be able to buy outright. On the downside, when your lease term ends, you do not own the vehicle. Also, if you drive long distances, your lease might penalize you for going over the yearly mileage allotment. Whichever choice is better for you, it is good to consider leasing as a potential car financing option.

New Versus Used

When purchasing a sedan, truck, or SUV, one of the first choices people have to make is whether to buy new or used. New models offer the latest technology, a warranty, and will often have attractive loan terms available through the dealership. Used vehicles can offer much of the performance and reliability of new autos, for a lower initial cost. The average cost of a new model is roughly $30,000, while a used auto will run about $15,000. If the purchase will use up most or all of your disposable income, a new vehicle's warranty will ensure you are not faced with any unexpected repairs. On the other hand, if you can set aside some of the money a used auto will save you, the car financing payments will be lower, and you can deal with any fixes needed. Finally, the average driver of a new vehicle will own it for about six years, while the average driver of a used vehicle will own it for a little less than four years.