Articles

Car lease fees and taxes in New Jersey, like in many other states, can vary depending on several factors, including the value of the leased vehicle, your location within the state, and any local taxes or fees imposed by your municipality. Here are some common fees and taxes you may encounter when leasing a car in New Jersey: Sales Tax: New Jersey imposes a 6.625% sales tax on the total purchase price of a leased … Read More

Car price is important in both buying and leasing In order to understand what price you might expect to pay for your next car, you must first understand how new car pricing really works. As you know, pricing is very important whether you lease or buy. Different customers can pay widely different prices — for the same car, at the same dealer, on the same day — depending on each customer’s knowledge of how car … Read More

If you are over your lease mileage allowance when you return your car, you may incur additional charges and fees from the leasing company. It’s important to understand how excess mileage is typically handled in lease agreements and what to expect in such a situation: 1. **Excess Mileage Charges**: Most lease agreements specify a maximum mileage allowance for the lease term, such as 12,000, 15,000, or 18,000 miles per year. If you exceed this mileage … Read More

Consequences of a Car Repossession Unfortunately, there are times when you might find that you can no longer make your monthly payments on your leased vehicle. In that case your choices are: 1) voluntarily return the vehicle (voluntary repossession) or 2) wait for the vehicle to be picked up (involuntary repossession). In either case, the amount you still owe on your lease will be calculated by the lease company according to the terms written in … Read More

Is leasing a car worth it? We see this question being asked frequently but aren’t sure exactly what the asker means. Is leasing worth what? What is IT? Is leasing worth DOING? We think what is being asked is whether the option of leasing a car is worth considering versus the option of buying with a loan — the familiar lease-versus-buy question — and whether the benefits of leasing are worth whatever disadvantages it might have. It’s a … Read More

How Does Negative Equity Affect a Car Lease? What is negative equity anyway? Negative equity exists when a car loan or lease’s outstanding balance is greater than the current value of the car. It’s sometimes called being “upside down” or “under water.” Negative equity can affect a car lease in several ways. If you are looking to lease a new car and you have an existing loan on a current vehicle that you plan to trade, having … 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

A Simple Way to Determine if a Lease Deal is Good or Bad We often get the question, “What is the 1% rule or method of quickly evaluating a car lease deal?” To determine if a car lease payment is a good deal, it’s best to examine each of the major components – cap cost, residual, and money factor – separately. However, in many cases you may not have this detailed information and must do … 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

The decision between leasing and buying a new car depends on your individual financial situation, preferences, and specific needs. Both options have their advantages and drawbacks, so it’s essential to consider your circumstances and priorities when making a choice. Here’s a breakdown of the pros and cons of leasing and buying a new car to help you decide which might be better for you: Leasing a New Car: Pros: Lower Monthly Payments: Lease payments are … Read More

Understand who profits from leasing There are four parties who potentially benefit — make money — from car leasing: Car dealers Car manufacturers Car finance companies Customers 1. Car Dealers Make Money with Leasing There are a number of ways that car dealers make a profit from leasing. First, like with any other method of payment, dealers buy vehicles from their manufacturer for a wholesale price (“dealer invoice price”) and sell at a retail price … 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

The Reason Car Leasing is Not Well Understood Leasing is a very popular alternative to buying a car with a loan, but even those who do it often don’t understand it. Others avoid it because they have misconceptions or feel it’s some kind of dealer trick that will get them in trouble. The basic reason that leasing is often misunderstood boils down to one factor — it’s more complicated and different than other types of common financial … Read More

Why You Shouldn’t Lease Your Next Car Car leasing is a very popular way to drive a car but it can be a really bad idea for many people. Unfortunately, it’s impossible to easily remedy the situation once a mistake is realized. If you have considered leasing your next car, the following are reasons it would be a bad decision for you: Your only reason for leasing is for the low payments Low monthly payments … Read More

Is it possible to lease a car with zero money down?  Lease with no down payment, and no cash up front Yes, it is very possible to lease a car with little or no up-front down payment cash — zero dollars down. In fact most car leases, even those advertised with a “required” down payment, are also available with $0 down, possibly depending on credit requirements (see explanation below). This is one of the benefits … Read More

Is it possible to lease a car with no cash down and no monthly payments? Yes — in the right situation. Let’s explain. Most car leases require a cash down payment, including first month’s payment. They also require that you make payments each month for the term (length months) of the lease. The sum of all those payments is the total amount paid for the lease. It is possible to pre-pay the total, in cash, to avoid monthly … Read More