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0 Finance Options on New cars; lease or buy?

Posted by on November 7, 2011 in Uncategorized - 1 Comment

When searching for a new car, 0 Finance Options on New cars can be a challenge to find. Finding 0 Finance Options on New cars is an entirely different issue that actually deciding on a good lease term, deciding on residual value, and determining whether you should opt for a buy, a lease or head over to a different dealership for a less aggresive deal than the 0 Finance Options on New cars deals that seem to go around a lot more often at the end of the year.

car-lease

car-lease

Lease

In America, the general rule is: Any Asain carmaker such as Toyota or Honda have excellent lease options as the residual value tends to be higher. When a company knows they can make a lot of money selling the car after you return it to the dealership, that is generally enough of an incentive for the dealers to offer 0 Finance Options on New cars; there is no need to make extra money on the actual financing. The banks know that the car will end up selling for more than the actual cost of giving 0 percent financing, and therefore they will lease you (assuming you have a really good credit score) the car with aggresive rates, and maybe even the famous 0 Finance Options on New cars rates.

If you do decide to lease, keep in mind:

• Body Damage

Damage to a vehicle can be very expensive to repair, and depengind on your insurance policy, you may end up paying for the smaller damage to the car from your own pocket. This can add up to be quite an expense. If you plan on leasing, know that you will end up “paying to return” the lease at the end; it can be as much as your insurance deductible. Note that some car companies such as Honda offer special deals with prepaid damage coverage, for example, a popular Honda deal is to offer $1500 of damage waiver. This is especially helpful when you return a car as there is always something the dealership will want fixed, such as a scratch in the exterior or something along those lines.

• Mechanical Damage

Although standard wear and tear is forgivable, improper maintenance and bad care on the internals of the car such as infrequent oil changes and forgetting to rotate the tires can lead to some expensive permanent damage that the car company may hold you liable to, depending on the contract you come up with when you lease a car with 0 Finance Options. The best way to avoid this issue is to be careful to maintain your car on a very strict schedule. Do not make the mistake of assuming that you will return the lease anyways, and therefore the long term maintenance of the car is not your concern.

If you are concerned with saving money, you will need to make sure you are very responsible with the car; maintain it as if you purchased it. You do not want the liability of covering a broken timing belt or replacing a fault transmission due to misuse.

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toyota-prius-body-damage_100177928_m

• Purchase

Although purchasing a car is a better idea in the long term as far as investment perspective is concerned, it can also be more expensive each monthly payment. This can be due to your financing options, or because like mentioned earlier, there is more incentive for dealers to lease certain new cars than to sell them. To reiterate, this can be due to excellent residual value and resale value; it can end up paying a lot more that charging money on interest. In a down economy, leases tend to be pushed more as used cars are sold more than new cars, creating the need for used car production in the economy. The way this happens is based on more cars leased than purchased.

Rule of thumb, your call will be worth roughly 35-40% of it’s initial value (retail) after 5 years. This means that you will be able to see a $30k for around 12k after you are done with the purchase. This has some value to it, but remember that you are paying a lot more than you are getting out of it at the end. Thus, we believe that leasing with the 0 Finance Options on New cars plans is a better option than buying.

Yosef Adelman on Google+

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1 Comment

  1. phype
    Posted February 10, 2012 at 9:57 am

    hi??

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