When it Comes to Car Leasing, Details Matter

by Carsurfer Admin on 2013/02/22 in Auto Leasing with Comments Off on When it Comes to Car Leasing, Details Matter

Congratulations! You have found the car of your dreams. That Audi A4 in scuba blue metallic is a real head turner, but it may also be beyond your ability to make monthly payments. And that is where car leasing comes in: by leasing your car instead of choosing a bank loan, your monthly payments will come in lower. Where the Audi A4 may have once been beyond your reach, you can now grab the keys, get behind the wheel and drive off.

Before you sign your lease agreement there are some matters to consider. Read on and we will discuss how to make car leasing a viable option for you.

1. Negotiate. As you would with any new car deal, you should negotiate the price of the Audi A4 or other vehicle that interests you. Once you settle on a price, then you will begin to discuss your financing options. You can also arrange financing independently, so keep this point in mind.

2. Open-end leasing. Not that common, but still offered is open-end leasing. Under this arrangement, the amount you owe at the end of the lease term requires you to make one final or balloon payment, representing the difference between the residual and market value of your car. In other words, you are required to purchase the vehicle at lease end, typically for an inflated price. This option is usually exercised by commercial lease customers, not public customers.

3. Closed-end leasing. Choose a closed-end car lease if you want to walk away from your vehicle at end of lease term. That does not mean that you may walk away without being assessed with additional charges. Excess wear and tear, and mileage overage costs may become a factor. You can also exercise the option to buy the vehicle, an especially attractive option if the residual value comes in lower than its published market value. That price is also negotiable, therefore you can offer to pay a different amount.

4. Your money. Whichever lease option you choose for your Audi, you will need to have money on hand to close the deal. Expect to pay a security deposit, your first and last month’s lease payment and perhaps an acquisition fee for processing your loan. You may have to pay sales tax and you are responsible registration, license tags and title fees. Some fees can be negotiated or even eliminated. Ask to have your documentation fee waived, typically a dealer charge that you do not need to pay.

5. Lease payments. You will be making monthly payments to the car leasing company throughout the lease term. Your payments are based on a number of factors included the car’s anticipated depreciation. Use a loan calculator to determine your monthly payments. Know your costs up front before signing your lease agreement. Make sure that the final agreement reflects the changes you negotiated.

Lease Considerations

Keep in mind that if you terminate your lease early, you will still be responsible for your payments. When leasing a car, you generally are not allowed to customize it and you are required to have sufficient insurance. The credit requirements for car leasing are typically tougher than regular financing, therefore make sure that your credit score is very good or excellent to obtain the best leasing terms for your Audi or other car possible.

Finally, consider a lease that is no longer than the car’s original warranty. Longer term leases or those that go beyond the car’s warranty can expose you to additional costs. Fortunately, a car like the Audi A4 comes with four-year or 50,000-mile limited warranty, offering the protection you need for the typical three-year car lease.

Author Information
Contract hire sales executive David Gillon, works for www.frontierleasing.co.uk. He is a car finance expert who regularly blogs about car leasing and the benefit of contract hire versus. buying a car for business or individuals.

The Tax Man and Your Car

by Carsurfer Admin on 2013/02/19 in Auto Taxes with Comments Off on The Tax Man and Your Car

Yes, it is true. In some states property taxes are assessed on passenger vehicles, an annual fee that sometimes takes newcomers by surprise. After all, you already paid a handsome sales tax on your 2011 Cadillac CTS V-Series, now this. But, just like the property taxes you pay on your home, the taxes you pay on your vehicle may be contested. Read and we will look at how you can reduce your annual tax bit.

State Laws

There is no simple answer that you can give to explain what goes on in one state versus another state. Property taxes are set at the local level, therefore your particular state spells everything out.

There are two types of property taxes out there: real property and personal property. Real property includes homes, land and other real estate. Personal property includes your passenger vehicle including minivans, sedan, SUV, pickup trucks and motorcycles. In some states personal property can include house trailers and boats, therefore your tax burden can come in higher.

Tax Rates

What you need to determine is how your state imposes its tax rate on vehicles, an amount that should drop year over year. For unlike real property that usually appreciates, cars and like conveyances usually lose value. The $62,000 you shelled out when your V-Series was new is far higher than its current worth which is no more than $39,000 today, reflecting two years of intense driving and 40,000 miles on the odometer. That estimate comes courtesy of Kelley Blue Book.

And it could be just that book value where you have a leg to stand on with your state. You need to check your tax bill when it arrives and compare the value the state has assessed with its actual value. Your position is stronger if your state assesses vehicles based on its "true value in money" or what it would fetch if sold on the market. With some cars, a $10,000 difference in value is possible, spelling a tax differential of $100 to $200 or more.

Fighting Back

If you notice a difference in values, how should you respond? First, check your tax bill and read it carefully. On the back or on the side there should be information about filing a tax challenge or a link to a website that spells out that information.

Second, follow your state’s precise procedure for filling a personal property tax appeal. Just like an appeal with real property, likely you have a narrow window to file one. Typically, that will be 30 and not more than 60 days after the tax notice has been sent out. If you miss the deadline, you may have to wait a full year to appeal.

Your Proof

Expect that as you build your case, you will have to show proof of your vehicle’s condition and mileage. This may mean having your mechanic sign an odometer statement, verifying that your vehicle has gone far more miles than what the state estimates. Your state, of course, is the final arbitrator for all tax matters, therefore understand what is required for where you live and follow those instructions precisely.

Author Information
Jenny Sampson is a professional blogger that enjoys providing consumers with personal finance advice. She writes for TitleMax.biz, a leading Title Loan company offering loans for people with bad credit.

Are There Any Ways to Save “Real” Money on Gas?

by Carsurfer Admin on 2013/02/14 in Saving Fuel with 1 Comment

Buying gas is an unfortunate reality that most of us are stuck with, and if we’re honest, there isn’t any “real” way around it aside from not owning a car and getting around on foot or by bicycle. There are actually a growing number of people who do that, though for most of us, living that way just isn’t plausible or doable because of the distance we have to drive for work, groceries or other life necessities.

The question then becomes: Are there any “real” ways to save money on the gas we buy?

Saving a substantial amount of money off your gas bill is difficult, if not impossible, without some severe lifestyle or scheduling changes. Things like working from home, a different work commute or even buying a new car are some of the few ways that you could really see a significant drop in your fuel expenses. Yet such events are rare and can’t be counted on for everyday savings.

At the same time, there are things we can do in the short term, that will save less on gas and tide us over to the day when we can set up our home office and forget about that 45 minute commute. 

What’s The Answer?

The answer to our question is a bit of a mixed bag:
Are there any real ways to save substantial money on the gas we buy?

In the long term: Yes. – You can save a substantial amount of money if you plan your life around shorter commutes and smaller more fuel efficient cars.

In the short term: Yes, but in smaller doses. – Saving substantial money on gas on a day to day basis isn’t possible; instead, it needs to be done in smaller amounts.  Over time your savings can add up, but there’s no quick fix or easy solution. 

What Can I aActually dDo?

When it comes down to what you can actually do that will make a difference, we’ve already discussed some of the long term options, which are pretty obvious to everyone. What I want to do is list a few things you can do in the short term that will help you use less gas and give you more money in your pocket without having to drastically alter your commute or your established lifestyle.

So this is a list of simple and practical habits you can get into that will help you use less gas.

1. Use interstates more often. – Interstate driving, though usually done at a higher speed, is much better for your car than city driving. If you’ve got the choice between taking the town roads and getting out on the highway, opt for the highway, where you’ll avoid the stop-and-go traffic that can cut your MPH down by 10 or more.

2. Drive less aggressively. – It sounds simple, but aggressive drivers use a lot more gas than those who maintain their composure on the road and keep a sensible pace. Speeding up and then slamming on the breaks is completely unnecessary and only serves to use more fuel than you would if you just maintained a more reasonable speed and pace.

Remember, just because the speed limit is 45 doesn’t mean you’ve got to get to 45 as soon as possible. Go with the flow of traffic and plan your breaking and accelerating ahead of time. I would say that slow and steady wins the race, but you’re not racing, so just take it easy and save yourself some money.

3. Less radio and air conditioning. – Anything turned on in your car uses power, so if the temperature is such that you can get along without adjusting it, or if you can go without the radio, turn them off and it’ll help you get better mileage.

4. Check your tire pressure. – Low tired pressure can kill your mileage and if you don’t have a newer car with an indicator light that comes on when the pressure is low, it can be tough to remember when they need filled. Try and keep up with it as best you can. You can get a small pressure gauge at any auto parts store for a few dollars. Use that to check every month or so whether or not you need air. If you do, most gas stations provide a station where you can fill your tire up for free.

5. Clean out your car. – Any extra pounds you carry in your car will affect your mileage and cause your vehicle to use more power. If you’ve got a lot of extra baggage that you’ve put off cleaning out, get it moved into your house and avoid using your car as a storage unit. I’ve you’ve been carrying around a lot in your car, than removing all of it might actually cause a significant increase in your MPH thereby saving you some nice chunk of change.

Make sure to avoid keeping stuff in the trunk longer than you have to, and try to make a habit of cleaning your car out on a weekly basis. Even if you only save a few cents, think of leaving that stuff in your car as the equivalent of throwing a handful of change out your window every 50 miles or so.

Author Information
Jason Benton is a personal shopping assistant who loves hunting down a good bargain. Jason enjoys sharing his tips on shopping websites. Visit http://www.cheapsally.com for saving on essential items.

12 Ways to Prevent Auto Theft

by Carsurfer Admin on 2013/01/25 in Auto Security with Comments Off on 12 Ways to Prevent Auto Theft

According to the FBI, a car is stolen every 23 seconds in the United States. In the city of Los Angeles, about 30,000 cars are ripped off each year, accounting for approximately one-quarter of all property crimes. You can avoid becoming part of the statistical carnage by employing both commonsense and forward-thinking anti-theft strategies. Read on and we will look at 12 ways that you can keep your car out of the hands of thieves.

1. Just lock it. Always lock your car. Turn your car off, remove the keys and lock the doors. Activate the alarm system if you have one.

2. Park in public, well-lit areas. Certainly, your car can get stolen in broad daylight. But, why make it easy on thieves by parking it in a dark, obscure place that invites a theft? The more local movement, the less likely thieves will feel comfortable about taking your car.

3. Employ driveway sense. A trick of thieves is to pull up in a tow truck and hitch your car for a quick getaway. You can thwart crooks by backing your rear-wheel-drive car into your driveway and positioning your front-wheel-drive face in. Engage your parking brake too.

4. Turn on your alarm. If you have an alarm system, turn it on when you are parked. Use it or risk losing it…your car, that is.

5. Install a hood lock. Thieves can quickly disengage your alarm by popping the hood and disconnecting the battery. You can thwart this attempt by installing a separate dead bolt hood lock.

6. Know your vehicle’s popularity. Just because your car is old does not mean that it any less attractive to thieves. The 1994 Honda Accord and the 1998 Honda Civic are the two top most stolen cars in the country reports the National Insurance Crime Bureau. Older versions of Ford’s F-150 truck and the Toyota Camry are also popular targets for their parts.

7. Use vehicle tracking. Buy a new car and there is a greater likelihood that it will come equipped with a vehicle tracking device. GM’s OnStar is one such system and its current packages include "stolen vehicle slowdown" for easier law enforcement apprehension.

8. Take your belongings with you. Okay, maybe thieves don’t want your car. But, those Christmas packages or other goodies you have left in your car are certainly appealing. A smashed window and a quick grab and snatch is all that it takes to rip off your belongings, so take these prized possessions with you.

9. Your hidden keys. How smart of you to hide a key underneath your car! After all, this is a practice that thieves would never consider. Unfortunately, to steal a car, thieves may feel underneath your bumpers, your wheel wells and other exposed area to find a key. Don’t make it easy for them — never hide a key!

10. Stow your title. In your glove box is your car’s registration and insurance papers. What shouldn’t be found is your title. Making your title available to thieves is an invitation to disaster — your vehicle can be stolen and quickly retitled as an unsuspecting party buys your car.

11. Disable your car. If you will be away from your car for extended time such as catching a flight and parking it at the airport, thieves will be on the lookout for your vehicle. Make it difficult for them to jump in and start your car by disabling it, removing the ignition fuse or coil wire. You may not be able to get these items through airport security, so stash them in the trunk underneath your spare tire.

12. VIN etching and engraving. You can thwart thieves by having your vehicle identification number or VIN etched to your car windows in plain sight. Also consider engraving important parts with your VIN, to make it less likely that thieves will want to disassemble your car for the value of its separate parts.

Theft Prevention Tips

There are other ways you can make it more difficult for thieves to steal your car. You can install a steering wheel lock, a kill switch and a floorboard lock, the latter making it impossible for thieves to use your accelerator. Consider installing multiple devices if you plan to leave your car unattended for a stretch of time or if you live or are visiting a car theft prone area.

Author Information
Keith Winters is a professional blogger that enjoys providing consumers with automotive advice. He writes for Butty Buddy, a leading manufacturer of motorcycle seats.

The Insider Checklist for Buying a New Car: What Everyone Needs to Know

by Carsurfer Admin on 2013/01/21 in Auto Buying Tips with 2 Comments

Its seems like once people know you have worked on cars for decades you are their “go-to” for all car questions—which I love. One of the most common questions I get comes when a person is considering buying a used car for the first time. We constantly hear horror stories and if you’re unfamiliar of what to look for in a quality vehicle you might feel like you’re jumping into this process blind, it can be scary. Here’s an ultimate checklist for the prospective used-car buyer to help you distinguish a great deal vs. a problem waiting to happen.

Making a Budget

Before you get to the car lot it’s important to establish a budget. Buying a car can be a process in itself and it is easy to waste time looking at cars you can’t afford. Think about need vs. want and be realistic with what you can afford. Don’t strain your personal life by trying to stretch your money thin. A lot of companies offer special options like DriveTime buy here pay here financing options. If you’re looking into financing, avoid long-term loans you should be able to pay off a car loan in three years. Consider fuel and maintenance costs.

Looking for a Car

Look for brands and models known for consistency and reliability. Although luxury vehicles are known for their usability, maintaining one can be expensive. What are you using your car for? Is it mostly used for commute to work? Are you an Outdoorsman who takes vehicles into rugged terrain? Ideally you will find a car that’s well-maintained, 3- to 5-years-old and void of any major mechanical problems or a history of collisions. Typically you do not want to exceed 12 to 15 years when purchasing a used automobile. Low mileage is important, but a car cannot be judged on low-mileage alone, be sure to obtain the car history when comparing vehicles.

A cars interior condition usually says a lot about the previous life it lived. Rust anywhere on a vehicle is a bad. Looking for the cheapest car does not translate to being the best deal, you’re looking for the best mechanical condition for the most reasonable price. Try to avoid first-year models, as they usually have more glitches. Go online and see what people are saying about models you’re interested in.

Cost of Insurance

Insurance cost will vary significantly depending on the vehicle history, make, model, year etc. Get an insurance quote before you purchase a car.

Dealing With the Dealer

Going to a dealership prepared is going to make a huge difference in the way you feel at the lot, and the outcome of your buy. A dealer’s goal is to make a sale as high as possible. First check and make sure the vehicle your interested in is still available. A lot of times dealers will keep a car that’s already sold online to get people into their lot.

  • Confirm the price, color and mileage an make sure the car has all the basics: air conditioner, radio, automatic vs. manual, cruise control, working windows ABS etc. Make sure all of these work when you get there.
  • Take the car for a test drive, see how the breaks work, if the AC is cold, if you hear and odd sounds or feel any noticeable bumps in the ride.
  • A car may smoke when it’s cold or the engine may be noisy or the transmission may engage with a delay.
  • Ask about extra charges and fees and ask about what kind of warranty they have available.
  • Ask for the vehicle history and VIN number to check accidents or major repairs for yourself.
  • The price is almost always negotiable; make an offer on the total price to let them know you are a real buyer. Total price is important because often dealers will try to tack on extra fees after you’ve negotiated a price.
  • Be ready to walk away from a deal if you are feeling you’re feeling to pressured.
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