Technorati Tags: buying vs leasing

Technorati Tags: buying vs leasing

Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

UK Leasing and Contract Hire » Blog Archive » Company Car Users …

Have you a clear car fleet policy Despite all the warning many Company car users are ignoring the advice of their fleet car managers and are being drawn to the little red flashing light on their Blackberry Smart Phones. …

Should I lease or buy a car?

Say a car is worth 30000, you lease half of the price which is guaranteed future value meaning the leasing company guarantees the car will be worth no less than 15k after 3 yrs. and you pay the other 15k in the lease. …

what is the policy regarding a lease payout when in an auto …

The insurance company cannot be expected to get into the leasing company's/manufacturer's business of “residual value” or the customer “buy out” price. They simply insured the car as they do with “owned” cars and their payout is simply …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

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End of lease- refinance or get into new car completely?

Lease is up on my 2004 Honda Civic. Good shape but high mileage. 95,000 right now and getting higher as we speak! I turn in at the end of April. Should I refinance the end “balloon payment” plus cost of repairs, drive it til thats paid off and then turn it in for a new car, or attempt at a dealership absorbing what I owe and roll it into a new note. Never done this before so I need help!

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You have come to the end of your auto lease and you enjoy you automobile enough you want to buy it. However, you must do some research in order to get a great deal.

To begin with, you should find out the cost of buying out your lease. Read the fine print of your contract and try to find the “purchase option price”.

The price is established by the leasing company and typically includes the residual value of the car at the end of the lease as well as a purchase-option fee ($300 to $500).

When you signed the contract, your monthly payments were calculated as the difference between the car’s price and its expected value at the end of the lease, and also a monthly financing fee.

This estimated price of the vehicle value at the end of the lease is called residual value. It is the loss in value of the car over the lease period. For instance, a car which costs $40,000 and a 50% residual percentage will have an estimated $20,000 value the end of the lease.

Once you know this, you must find out the actual value, also called market value, of your car. In other words, how much does your vehicle retail for in the market? To identify a good, reliable estimate you should carry out some pricing research.

Check the price of the car, with similar condition and mileage, with several dealers. Visit web sites, such as Cars.com, Edmunds.com as well as Kelly Blue Book for detailed pricing information. This will give you a reasonable estimate of your car’s retail value.

Now, you need to compare the two amounts. If the residual value is lower than the actual retail value, you have a winner. However, there is a good chance a vehicle coming off a lease is on the high side.

Do not lose hope though. Leasing companies are familiar with the fact that residual values on their cars are greater than their market value. Because of this, they always try to find fair offers. You can reduce the price of your leased car with some persuasive negotiating tactics.

Go to these web pages to learn more about Leasing versus Buying a Car as well as How to Get Out of a Car Lease.

Article Source:

http://EzineArticles.com/?expert=Alex_Fir

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Rent To Own Homes Explained
 by: Bob Pappas

If you desire to own your own home but are unable to secure conventional financing today, leasing a home with an option to buy may be your best option. A lease purchase can make your rent money work for you instead of making your landlord rich. Typically rent to own homes offer rent credits that reduce the final purchase price!

Here’s how it works:

A home is made available via a standard lease with one important addition. Included is an option to purchase that home at a specified price over a specified time period (usually one or two years). In order to acquire that option, the renter/buyer must pay a one time, NON REFUNDABLE, fee called the option consideration. The exact amount is negotiable, but it is usually ranges from 2.5 to 7% of the purchase price. A fair contract will credit the buyer 100% of that option consideration upon closing of the sale. Furthermore a negotiated percentage of all rent payments should be applied toward the purchase price of the home. Some typical terms and conditions one might expect to find in a contract follows:

In order to receive a rent credit of 50%, time is of the essence. You MUST pay your rent on or BEFORE the due date of your lease (typically the 1st of the month). This means it must be received by the lessor (landlord) on or before the due date. Any payment received after the due date will result in a 0% rent credit for that month, a late fee may apply and you will not be building any equity.

Maintenance is the responsibility of the Tenant Buyer. You are now renting to own and homeownership requires maintenance. This includes things like broken windows from stones or baseballs, clogged drains, peeling paint, broken appliances, burnt out bulbs, lawn work/snow removal, etc. If any major repairs are required to ensure habitability, the owner remains responsible.

You need to have Option Consideration. Option Consideration is typically 2.5% to 7% of the purchase price of the home. It is a non-refundable payment, of which 100% is credited toward the purchase price, which binds the lease purchase contract.

Here’s an example transaction:

We have a nice 3 bedroom, 1 bath single family home located in a near west suburb of Chicago in a great neighborhood with good schools and a strong community. It has been freshly painted, cleaned, and is ready to move in. The purchase price will be $215,000. Monthly rent payments will be $1,500 and you will receive a 50% rent credit ($750 per month). You need between 2.5% and 7% in up front Option Consideration. Let’s say your budget allows for $6,000 for Option Consideration. This equates to approximately 2.8% ($6,000/215,000). You will also need $1,500 for the first months rent for a total initial payment of $7,500.

Please note: Option consideration is not a security deposit. It is a non refundable payment toward the purchase price and is 100% credited toward reducing the price of the home.

Now suppose you paid all your monthly rent payments on or before the due date and you choose to buy the rent to own home at the end of the 12 month lease purchase contract. You will have $15,000 in equity before you even own the home! Here’s the math:

Lease Purchase Price – $215,000

Less: Option Consideration paid at lease signing – $6,000

Less: 50% rent credit of $750/m * 12 months – $9,000

Net Purchase Price after credits – $200,000

You started with $6,000 and by paying your rent on time; your equity position grew 150% (another $9,000) for a total of $15,000 with 12 months. Not a bad deal! Many people find it nearly impossible to save $9,000 in a year with all the costs of living constantly on the rise.

What’s the catch?

Now you may be thinking, “OK, what’s the catch? This sounds too good to be true.”

Answer, there is no catch.

There are many possible reasons a landlord/seller may want to enter into a rent to own agreement. Some reasons may be:

Needs to maintain ownership for at least one year for tax purposes.

Unable to get a fair price due to local conditions.

Tired of performing minor maintenance.

Furthermore, when one sells a home through a realty service, a commission of 5-7% is typically paid. In the example above, this can cost more than the rent credit. Since realtors are usually not involved with this type of transaction, there is no commission and the landlord can afford to pass along the savings to tenant/buyer in the form of rent credits.

Also, when the Tenant becomes the Tenant Buyer (via rent to own), there is an immediate sense of pride in ownership. Tenant Buyers add value to the community. They take care of their future property, make improvements, and feel good knowing their rent money is working for them (reducing the purchase price) rather than just making their Landlord rich.

There are also many advantages for the renter:

Build equity toward home ownership.

No bank or finance company involvement.

Poor credit history may not be an issue.

About The Author

Bob Pappas is an associate of JSC Rent To Own Homes, a unit of JSC Investments LLC. Bob acts as an investing third party in certain situations where either a renter would like to purchase a new house or the house he/she is currently renting, or a seller wishes to sell his/her property through a lease purchase agreement.

http://www.jscinvestments.com/

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When thinking about leasing a car, a lot of people ask themselves one question: should I lease, rent, or buy? Leasing, buying, and renting a car are all very different processes. Car leases and purchases are both methods of auto financing – with leasing, you’re paying to drive the vehicle for a certain amount of time (often two or three years), whereas buying entitles you to actually own the vehicle.

Cars leasing is advantageous to drivers that prefer new vehicles, are unsure of their long-term vehicle needs, and/or do not want to deal with the hassle of selling their cars later on. Alternatively, buying is perfect for drivers who are more concerned with long-term costs and needs. Renting a car is something different altogether. Unlike buying and leasing, whose costs are largely determined by set factors such as the vehicle’s market value and expected depreciation, rental expenses do not follow a definite formula. Thus, renting a car is generally not cost-effective, and is only recommended for short term use (less than one year – ideally just a couple of days).

If you’ve decided to lease new cars, you might think you’re done asking yourself questions, but here’s one more to consider: Do I want closed-end or open-end car lease deals? Open- and closed-end leases are the two primary types of car leasing deals. Closed-end leases are more financially beneficial to the lessee, while open-end leases protect the leasing company.

Before going any further, it’s important to remember one important concept of leasing a car: residual value. In car leases, a vehicle’s residual value represents its predicted worth at the end of the lease. A $20,000 car with a 50% residual percentage after 24 months, for example, would have a residual value of $10,000. In this case, the lessee would agree to pay the difference – $10,000 – plus the appropriate fees.

To predict a car’s residual value, car leasing companies look at the history of the vehicle’s make and model, in addition to factoring in the duration of the lease and the expected mileage. Therefore, the residual is an estimation – not a sure thing – meaning that at the end of the lease the vehicle could be worth more or less than anticipated.

Now, let’s discuss the difference between open- and closed-end leases. Closed-end car lease deals are also known as “walk-away” leases, because they allow the lessee to simply walk away at the end of the lease, regardless of the car’s actual value. The lessee will only have to pay for damages and/or extra mileage as stipulated in the contract. In an open-end lease, however, the lessee must cover the difference between the final worth and the forecasted residual.

Let’s consider the $20,000 New York lease mentioned above. Although the residual value after 24 months is $10,000, it’s possible that the car will be worth a lesser amount, such as $9,000. In this case, the vehicle’s worth will have decreased by $11,000, even though the initial lease was only set for $10,000. In a closed-end lease, the Brooklyn cars leasing company absorbs this cost, however open-end leases require the lessee to pay for the extra $1,000 of depreciation.

What about if the car is worth more than expected at the end of the lease? In closed-end car leasing deals, the lessee can choose to purchase the vehicle at the residual price (as long as the contract included an option to buy). So, if the car wound up worth $11,000, the lessee could buy the vehicle for $10,000, then sell it for $11,000 to profit.

Wheels to Lease of Brooklyn NY is one of the best quality car leasing companies. If you are looking to lease new cars or a new york lease, contact us for the best car lease deals.

Article Source:

http://EzineArticles.com/?expert=Mark_Etinger

Technorati Tags: buy lease car

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That’s all the news for today guys, so until next time, thanks for stopping by.

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Technorati Tags: buying vs leasing

How much is it to lease a 2009 bmw 328i sedan?

Around how much should i put down for the down payment?

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