Whether to Fix or Replace You might have a lot of memories attached to that 1999 Ford Ranger sitting in your driveway, but is it really worth keeping around? Has it seen one too many cross-country trips? Do you find yourself paying for repairs once every two or three months? Is it in need of repairs at this very moment? Like it or not, it may be time to replace that old “nostalgia-mobile” with something … Read More

What Are the 10 Most Misunderstood Things About New-Car Buying and Leasing? Over the years, we’ve seen and heard practically all of the things that are most often misunderstood about car buying and leasing. Let’s identify them and address them here. Car companies such as Ford or Honda own and operate their own dealerships Not true. All new-car dealers are independent businesses, authorized and franchised, but not owned or operated by big car manufacturers. In fact, … Read More

Car insurance is never cheap but rates vary so much between providers that one will always be cheaper than the others for a particular individual, for a particular car, in a particular location.  But which one? It’s a question that is not easy to answer. Why are rates so different? You might have a friend or relative in another state who tells you that State Farm, or USAA, has the best rates. But because insurance companies and … Read More

Auto Insurance – Which Cars are Cheapest to Insure? Selecting the right vehicle can save you money on auto insurance Auto insurance companies set premium rates based largely on statistical data that shows how frequently claims have been paid over a 3 year period for each car make/model. The assumption is that if a particular model has had a high rate of insurance losses in the past, it will continue to have losses and claims … Read More

Does It Matter Where You Buy Car Insurance? Who sells auto insurance? You can buy car insurance in different ways, from a variety of sources, depending on the insurance company. Does it make a difference how or where you buy? It might. Let’s take a look. There are essentially four ways to purchase auto insurance. They are: From a company agent (employed representative) of an insurance provider From an independent agent (not employed by an insurance … Read More

Can I trade my current car to lease a new car? Certainly. Trading a car works the same whether you buy or lease your next car. However, the effect of a trade on a lease deal is a bit different than with a purchase deal. Let’s see how. Trading has a more significant effect when leasing your next car As you probably know, when you trade a vehicle to a dealer, the value of that … Read More

High Mileage Leases – Buy Additional Miles What are the pros and cons of buying extra miles for a car lease? Many people would like to lease but know that they will exceed the standard mileage limit, which is usually 12,000 miles per year. They know they need a high-mileage lease but don’t want to pay the end-of-lease penalties. If that is the case, does leasing make sense? If so, how do extended mileage leases … Read More

Who leases cars? Why do they lease? Three types of people who lease cars, and their reasons for leasing instead of buying There are three primary reasons for leasing a car, and three types of people who do it. 1. People who have plenty of cash to buy a car but want to preserve it for other purposes These are generally well-to-do people who are finance-savvy and money smart. They prefer not to tie up … Read More

We see it almost every day. Someone who is not quite fully knowledgeable about car leasing gives advice to someone else even less knowledgeable. It’s kind of a version of the blind leading the blind. One of the most common nuggets of misinformation that continues to proliferate is that “leasing is simply long-term renting.” To a degree, pointing out that leasing and renting are similar is not entirely incorrect. However, it often leads to incorrect … Read More

Car accidents are always traumatic, even minor ones. However, if you are involved in an accident and don’t have insurance, it can be a disaster. All states in the U.S. have financial responsibility laws that, in most states, requires a minimum level of liability insurance that helps pay for damages and injuries in at-fault accidents and can protect car owners from legal suits. Note that we emphasize the word “helps.” Most state car insurance laws are … Read More

Is car leasing some kind of scam or fraud? Short answer — no. For the most part, new-car dealers are not scammers or fraudsters but, in their zeal to move cars, they often are guilty of some fairly unethical practices that leasing consumers should be aware of and keep a watch out for. First, we should point out that leasing is a common financial practice that has been around since the birth of this country. … Read More

Is It Better to Lease a Ferrari, Or Buy?   Ferrari is a an ideal lease vehicle due to the fact that lease-end residual values are relatively high compared to the MSRP sticker price. Combined with even a modest price discount and average finance rate (money factor), lease payments are relatively low for vehicles in this price range. Enthusiasts of these cars drive relatively few miles and like to trade every couple of years, which … Read More

Does Car Leasing Still Make Sense When Compared to Low-Payment Long-Term Loans? When considering whether to lease or buy a new car, cost comparison is a primary and important factor. In these articles, we often discuss the fact that leasing produces significantly lower monthly payments than buying with a loan, but we usually compare a typical 36 month lease with a 36 month loan for the same vehicle. This analysis shows that lease payments and … Read More

Is it possible to cancel a car lease deal after signing? There is no clear answer to that question because it depends on when you want to cancel and under what circumstances. Let’s look at some of the possible scenarios under which you might want to get out of your car lease deal: 1. You just signed but have not taken possession of your car. In most states, if you have not taken possession of … Read More

Advantages and disadvantages of car leasing Car leasing provides worthwhile benefits to many people looking for a new car. Although leasing offers lower costs than buying with a loan, which is the primary attraction, it is not right for everyone, especially those who drive an unusually high amount of miles. Leasing is designed to provide the greatest benefits to those who drive an average number of miles, take good care of their cars, like having … Read More

Monthly Payments –  Not Best Way to Negotiate a Car Lease Many automotive consumers who decide to lease do so only because the payments are more affordable than purchase loan payments. In fact, dealers often encourage the comparison of leasing versus buying on this basis. But it doesn’t necessarily mean leasing is a better deal. However, getting a great car lease deal is more than comparing lease payments and loan payments. What’s a payment buyer? Automobile buyers and … Read More

Is it possible to buy a car with no credit or bad credit? Yes, in most cases it’s possible. There are several options that may be available to you. Buy with cash Although this is the most obvious answer to the question of buying a car without credit, it’s one that is often overlooked. Many people who might otherwise not be able to qualify for a car loan might have sources of cash that they … Read More