Articles

Car leasing is similar to renting, but is technically a loan, with significantly lower payments because part of the amount borrowed is re-paid by returning the car at the end of the lease. Lease-end “return value” (called residual value in leasing) is subtracted from the sale price of the vehicle at the beginning of a lease, and is based on expected number of miles to be driven and average wear (called depreciation in leasing). This significantly reduces … Read More

Understand Car Leasing the Easy Way Although our Lease Guide thoroughly explains car leasing, the explanation can sometimes get a bit complicated and difficult to understand. The fundamental concept can get lost in the details. Therefore, we offer here a simplified example to help explain the basic concept of leasing a car. It’s possibly a bit over-simplified and not quite realistic, but hopefully gets the message across. In our simple scenario,  a consumer, Alan, wants … Read More

Car Leasing: Recommended Reading For automotive consumers who are about to lease a car, we recommend the following articles on the LeaseGuide.com web site: Preparing to Lease a Car Car Lease Fees, Charges and Taxes Car Lease Contracts – How to Understand Them How to Negotiate a Car Lease Cheapest Cars to Lease in 2021 Lease Deal Calculator – 2021 Car Lease Payment Calculator – 2021 Car Lease Kit – 2021 Version

Car Loans – How Auto Loans Work How to borrow money for a car loan. Where to find the best rates and terms. Although this web site is primarily about car leasing, many of our readers tell us that they have decided that leasing is not right for them and that they will buy a car with a loan. They want to know if we have tips and advice that might help them. Hence, this … Read More

Does it make a difference what car you lease or buy? Choosing a new car is more than selecting price, style, and color If you’re not a “car person” you might easily assume that most car brands pretty much the same except for price and design details — that Ford is about the same as Chevrolet, which is the same as Toyota, the same as Honda, same as Hyundai, same as Audi, same as Chrysler, … Read More

Need a rental car? What are the options? Anyone needing the short-term use of a vehicle should consider a car rental. Longer-term needs might be better met with other options. For rental periods less than a week, large national rental companies such as Hertz, Avis, Budget, and Enterprise will usually serve best. These companies also are best if the vehicle is only needed one-way, since they have offices all over the U.S. If a vehicle is … Read More

Types of Car Warranties New-car warranty New-car warranties generally come in two parts: a general (“bumper to bumper”) warranty, and a “powertrain” warranty, which often covers a longer period of time than the general warranty. There may also be separate warranties for rust corrosion, emissions system, restraint system, tires, and battery. The Owner’s Manual for a new vehicle will spell out all of these coverages. General warranties are typically for 3 years or 36,000 miles, … Read More

Certified Used Cars. Worth the Money? What are certifed cars? What benefits do they offer? A few short years ago there were only a handful of used-car dealers who offered “certified cars” for sale. Now almost every major automobile manufacturer’s dealers offers certified pre-owned cars and sales are increasing every year. Why all the excitement? In short, it’s about reduced risk. Most used cars are sold “as is” and the buyer takes his chances. Certified … 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

Why Lease a Corvette? The Chevrolet Corvette has always been America’s sport car but relatively high prices keep them out of the hands of the average automotive consumer. With base prices from $55,500 to over $110,000, loan payments can be well over the $2000 a month mark. Affordability can be a real issue for those who would like to drive the “real American sports car.” Corvette is an ideal lease vehicle for a number of … Read More

How Much Credit is Required to Lease a Car? Do I need good credit to lease? Credit requirements for car leasing are a bit different than for buying with a loan. Some people believe that leasing requires less credit than buying with a loan — because they equate leasing with renting. However, this is not the case. Leasing and buying with a loan are different in terms of the risk to a finance company or … Read More

Credit Score – How Important is Your Credit Score? – How to Get Your Score Low credit scores and credit problems need your attention Many consumers today don’t understand the importance of personal credit scores and how it affects their everyday lives now and in the future. Some are not aware that credit scores exist, or that credit scores are readily available and accessible online. Your credit score can determine what you pay for auto … Read More

How to Find Car Invoice Prices to Get the Best Deals Car dealers buy wholesale and sell retail, the way most businesses work. They buy vehicles from the car manufacturer (all car dealers are independent businesses, not owned by a manufacturer) for a specific price (invoice price) and mark up that price (sticker price) when selling to customers. It’s the same way that JC Penney, Walmart, Amazon.com and most other companies work. However, there seems to … Read More

Dealer Wants Car Back – Wants More Money Can a dealer take my car back or demand more money? Is it legal? Yes. It happens every day. You buy or lease a car from a dealer. He calls you a few days or a couple of weeks later and wants his car back, or asks you to sign a new contract with higher payments. Is this a scam? Is it legal? Just the basics first … Read More

What You Should Know About What’s Happening to Car Buying and Leasing Costs Whether you lease or buy your next new car, there are some things you might want to be aware of — things that have changed significantly since you last purchased or are now changing that will affect what you pay for your next car. Average Prices for New Cars are Going Up The average price of a brand new car this year … Read More

Is Leasing an Electric Car a Good Idea? Many car companies sell all-electric vehicles (EVs). These relatively new types of vehicles are becoming increasingly popular as battery and charging technology improve mileage range and practicality. Deciding whether to lease or buy an EV is somewhat different than making that decision for a conventionally powered car. In fact, the argument in favor of leasing is stronger. Why is that? Electric car drivers tend to drive fewer miles … Read More

Estimate Lease Payment Amount When You Don’t Have All the Numbers Our popular Lease Calculator will calculate actual car lease payments accurately — to the penny —  as long as you know all the factors of a lease, such as net capitalized cost, including any added fees, cap cost reduction, money factor, residual value, term, and sales tax rate. But it’s not always possible to know all the figures if you’re simply in the shopping stages of … Read More

Is it possible to change or add to a car lease mileage allowance? It depends. If at the beginning of a lease, the answer is yes. If in the middle or end of a lease, the answer is no. At the time a lease is initiated, before the contract is signed, it is possible (with most lease companies) to “buy” extra miles if you feel you might them. For example, a normal lease offers 30,000 … 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

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