When you lease an automobile, you are paying for the depreciation from the final sale price to the residual value once your lease term is finished.

Let’s use a simple example, the final sale price of the car is $30,000 and the residual value after a 3-year lease will be $17,000. You will pay $13,000 plus interest during the 3-year lease term of your car lease deal.

The secret to negotiate the best car lease deal is to expose the “capitalized cost” or a.k.a. final sale price.

Aside from your money factor and residual value, the “capitalized cost” is one of the main variables of the auto lease that controls what your monthly payment will be and if you’ll get the best deal.

And this is the first mistake people make: not knowing that they still have to negotiate the final sale price when leasing an auto, just as if they were buying it. This mistake can cost thousands of dollars over the course of a typical 3-year lease.

Always compare models for good residual values on your car lease deal. Automotive Lease Guide (ALG) provides leasing residual values for all new automobiles and gives awards to specific models and manufacturers for residual value excellence. Typically, an auto will depreciate 30%-40% of the original sale price during the first 3 years of ownership.

Let’s do the simple math: 35% depreciation of a $30,000 vehicle = $10,500. As compared to 43% of $30,000 = $12,900. That’s a difference of $2,400 that you would pay during your lease term!

Among this year’s auto industry brand winners are Honda, Toyota and Nissan for excellence, and BMW, Lexus, and Acura for luxury.

Lastly, know how to translate an interest rate into a money factor for your car lease deal. Translating the interest rate on your auto loan into the money factor is easy: Money Factor multiplied by 2400 = Interest Rate.

To get the best lease deal you should pay the same interest on your lease as you would on your auto loan, so it makes sense to research this on your own to know if the quote you get from the dealer is reasonable.

You can find more information on how to get the best car lease deal or apply for an online auto loan quote to see what kind of interest rate you receive!

About the author:

Daniel DeHaven is the Editor in Chief of the BuyingAdvice Team. He understands the auto business. He’s been around it - all of his life. Daniel has been a consumer advocate voice for over 15 years. He has learned every trick and profit ploy car salespeople use… and mistakes buyers tend to make.

Copyright 2002-2005 BuyingAdvice.com, INC

Technorati Tags: automotive, autocare, auto care, car care, auto repair

You dont have to be a custom car affecianoda to appreciate the hot cars in movies such as 2Fast 2 Furious.  who wouldnt want to be behind the wheel of a suped up car, dragging that quarter mile of road? The adreneline rush is addictive.

Shows like MTV’s Pimp My Ride have enjoyed a solid fan base and its not surprising. Who doesnt enjoy checking out a car transformed into a monster ride that is the envy of all?

Before you rush out and get your 1984 Chevy Chevette pimped out, you should consider a few things first:

Insurance
Your new ride is going to attract a lot of eyes. Unfortunately, not all of them will be the eyes you want on your car. Car theft, accidents and old fashioned jealousy resulting in scratches to your paint job all increase when you pimp your ride. Make sure that you check with your insurance company, and phone around for rates. No sense spending $10 000, only to find out that you cant afford to drive your car off the driveway.

Who’s Touching Your Body
Just because they have a slick looking site with pictures of several hot cars, doesnt mean they did the work, or that you wont have to worry about your Lambo Doors falling off 6 months from now. Word of mouth is the best form of advertising for legit companies. If you find that people are talking about a certain local body shop, its worth your while to go and check them out. There is a reason why people are talking about them. 

Price isnt everything. Like with most things, you get what you pay for. Just because a certain custom shop can do the job for half of what everyone else is quoting, doesnt mean you should go there. Do they have a good reputation? How long have they been in business? How long have they been installing body kits or vertical doors for?

Think Before You Buy
Before you go ahead with that change to the body of your car, consider what impacts that may have on the overall performance of your vehicle. Will it impact fuel effeciency?

Its A Gas
If you’re complaining about the cost of gas right now, wait til you replace your engine with a more fuel efficient model that doenst take kindly to you filling up with the cheapest grade of fuel. Expect to pay a lot more for gas, and its not going to get any better until fuel cell technology finally becomes the norm. Consider a hybrid engine if it is available for your car. Remember, the cost of gas will continue to move higher, not lower.

Consider these tips before you go ahead to your local shop and have them complete an extreme makeover of your car. They will help you save money over the long haul.

Now you are ready to live life a quarter mile at a time.

ABOUT THE AUTHOR
Pimp My Ride - Those words instantly bring images of supped up sports cars, renovated classics, and some pimped up rides from some of the most imaginative people around.  Looking for some tips to pimp your ride? Look no further! You have found your home!

Technorati Tags: automotive, autocare, auto care, car care, auto repair

There are many things that you don’t want to see an automobile dealership do to you as a buyer, but there are some things that you should not do as well, if you don’t want to alienate the dealer.

Here is a list of “don’ts” that you should abide by if you are really looking to get a good new or used car deal.

Don’t try to pull one over on the dealer by lying about the condition of your trade in vehicle. It is just a lie that you can’t get away with, and could cause many cost increases later.

Don’t bother looking for a car that will require financing if you have had a recent bankruptcy because you will not get an auto loan approved anyway.

Don’t give the automobile dealership a deposit and then try to take it back for no reason because you should have researched the car before making the purchase. You can also lose money on the return.

Don’t bother lying about your debt load and credit rating because they will check it anyway.

Don’t offer any money for a car unless you already know the dealer cost because you are setting yourself up to get ripped off.
If you will follow the tips above when buying a new or used car, the rest of your negotiations will go much smoother.

One more thing you should not do that is not part of the negotiation with the salesperson, and that is, don’t forget the cost of automobile insurance. Many new car purchasers have been shocked with the cost of insurance for that perfect car. That high powered red Mustang convertable might seem cool for a 19 year old college student, until he (or his dad) has to pay the insurance bill.

More than one teenage driver has found themselves caught in the circular trap of needing a car to get to the job that they need to have to pay for the car and the auto insurance. I’m sure that teenagers are not the only ones that find themselves in this position as people try to keep up with their contemporaries.

The same holds true for a car’s gasoline consumption and maintenance costs. While SUV’s are a fad now, unless you really need such a vehicle, you will find that the gas and maintenance costs can be substantial.

When shopping for a used car, be sure to research the safety and maintenance records of different models. You can find this type of information in magazines such as Consumer Reports or insurance company publications.

So be sure that the car you buy is within your means, including the cost of insurance, gas and maintenance.

About the author:

George Dodge is the webmaster for 1st Choice Auto Parts that has been expanding to include all things related to automobiles, including, parts, accessories, apparal, books, posters, insurance, loans, and articles to name but a few. Additional articles can be found at Automotive Articles

Technorati Tags: automotive, autocare, auto care, car care, auto repair