Tag Archives: used
Vehicle Leasing
Some people find it difficult to commit to purchasing a vehicle; when the deal is final, the buyer is obligated to paying on the vehicle for the next 5 to 7 years depending on the terms of the loan. Vehicle leasing is the solution to this; you do not have to be locked into the purchase. Leasing is, in a way, renting something.
When you participate in vehicle leasing, you are borrowing the car for a said amount of time. A car lease is similar to a rent-to-own real-estate deal. You pay monthly on the car and after about 3 years, you have the option to buy the vehicle or a specific sale price. If you decide against purchasing the vehicle, you are not penalized. The dealer will take the car back, and either, sell the vehicle as a used car, or take it back to the auction. You are then free to purchase or lease another vehicle from that same dealership, or a different one.
There are many options available for people wishing to get a car lease. Not all are the same you have to choose the one that is right for you. There are some very great deals sometimes, for instance: lightly used cars, rental cars that have been sold, and fleet vehicle leasing. The price is substantially reduced because the car is used but most are still in tip top shape. In fleet leasing, a company that is upgrading the cars they purchase for mobile employees, sells the old, used cars at a serious bargain. These cars are very lightly used and typically are of very top end models.
Typically, a car lease such as a car lease in Sydney, offers a type called a novated lease wherein there is a great benefit of reduced tax for participants. This is done through a process called “salary packaging” a vehicle. Basically, the lender attaches the monthly leasing payment to the borrowers payroll. The borrower is then vehicle leasing through automatic deductions from their payroll. Also, this is done on a pre-tax basis, therefore reducing the amount of money the employee/borrower is required to pay taxes on. The novated lease is a great opportunity to save a lot of money!
Vehicle leasing is a smart choice for a customer who does not want to be stuck with a car that he/she no longer wants a couple of years down the road. It is great because the participant gets a new car every 2-3 years. This is a very attractive and popular choice for businessmen/businesswomen that travel for work. Some employers will actually pay for the leased vehicle, leaving the employee without payment obligations.
Another great feature about a car lease is that repairs are usually covered. Typical maintenance and light repairs are usually discounted substantially and sometimes no charge depending on the plans available.
Leases can be very convenient and many people worldwide lease, instead of purchase their vehicles. It is always good to weigh the options and get a clear picture of the vehicles total cost. Either way, you will be under contract for a certain amount of time. Therefore, it is best to find a deal you can afford and feel comfortable with paying.
New Car Loans With Bad Credit – What You Can Expect When Applying
If you have a credit score that is below 680 you will likely have a hard time getting a car loan from a traditional dealer such as your bank but this does not mean you cannot get financing. This article shares where to look for car financing and what to expect when your credit is poor.
Used or New Car Loans for Bad Credit
The economy is down and banks (and all types of traditional lenders) are not loaning as freely as they once where this means you must have a pretty good credit score in order to qualify for financing from you bank. This leaves you with two options, you can either go directly to a car dealership that advertises that they can get you financing or you can go online and find a company that caters to getting consumers car loans for bad credit.
If you go directly to a dealer down the street you want to keep in mind that they have a motive of making a profit. This can mean that they will work hard to get you a loan but it also means that they might play around with your interest rate to your disadvantage.
A little know secret used by car dealers is that it is legal for them to add on to the interest rate that they find for you. For instance, if they find you a lender willing to give you 9 percent interest they can legally tack on an additional 3 percent and pocket that money. Interest adds up fast and this can translate into $100 extra for you a month.
Your other option is to go online and get car financing. The advantage here is that they will compete for your business and this means you will be offered the lowest interest rate possible and often without a down payment requirement. Another advantage is you can apply without having to sit face to face with someone, which can be embarrassing if your credit is not clean.
Either way when your credit is poor you will end up paying a higher interest rate compared to those with good credit but shopping online will likely give you the best rate and you can always consider refinancing for a lower interest rate in a year.