Financial Advice from Arlington - the ins and outs of leasing
Everything you need to know about negotiating and leasing
Irish Central Community News is pleased to continue with our bi-weekly financial column.
You negotiate the best deal and agree to the purchase. The best deal is usually the auto dealers purchase price from the factory known as tissue in the automobile industry. Most dealers today will show you their tissue and sell you the vehicle for it. How do they make their money if they do that? The auto manufacture that sold them the vehicle has what is known as a dealer hold back. This is usually 3% of the auto dealers vehicle cost. When they sell the vehicle this is released back to the dealer. Most auto dealers are happy to work for the dealer hold back.
Is not as straightforward as finance. Firstly the vehicle is not owned by you and as a result the title is kept by the leasing company and the registration by you. You can negotiate a purchase price on a lease the same way you do with a financed vehicle. Also the payments are tax deductible if you are a business owner or you’re self-employed.
How do I know if I’m getting a good deal or not? I don’t see a purchase price on the application.
Instead I see what seems to be a whole new language with terms such as;
· Capitalized Cost:
This is the price that you have negotiated to purchase the vehicle for.
· Capitalized Cost Reduction:
If you decide to trade in an existing vehicle or put money down.
· Adjusted Capitalized Cost:
Is the net of the purchase less the trade or money down.
· Acquisition Fee:
Is a charge similar to an application fee, not all companies charge this.
Is what the leasing companies charge for the vehicles decline in value over the lease term. This is the main factor in arriving at your monthly payment.
What the vehicle is worth at the end of the lease term. This is arrived at by taking the capitalized cost, less the depreciation which equals the residual. Most leasing companies will sell you the vehicle at the end of the lease for this number.
· Excess Mileage:
Most leasing companies offer 10, 12 or 15 thousand miles. If you go over the agreed mileage you will be charged .20c per mile thereafter. Make sure that the allocated mileage is sufficient for you needs. It usually equates to about .08c per mile having it included the payment verses being charged at the end of the lease. It can be very easy to have done an extra 30,000 miles over a four year lease. At .20c per mile you will owe the leasing company an extra $6,000, ouch.
· Gap Insurance:
In the event of an accident your insurance carrier pays out the value of the vehicle. However you may owe the leasing company at that time the value of the vehicle along with unpaid lease payments. This difference is referred to as Guaranteed Asset Protection or GAP Insurance. Check with your insurance carrier and/or your leasing company that you’re covered.
- Irish university suspends Legion of Mary...
- Notre Dame sues federal government again...
- 4,000 Irish social welfare letters encourage...
- Top ten worst ever Irish Christmas gifts,...
- Unionists regret US envoy Haass’ call for...
- Nelson Mandela showed us all what could be...
- Pope Francis calls capitalism “new tyranny”...
- Irish radio presenter suspended after anti-Isra
- Address by Nelson Mandela to Joint Houses...
- Married priests could well be Pope Francis'...
What would be so horrible about flying both the British and Irish flags side by side in government buildings in Northern Ireland. Didn't the Good FriIreland’s leaders mourn the death of South African hero Nelson Mandela (VIDEO)
A Mandela type of human has never or will ever be found the equal of this extraordinary being in the breath of Irish history. A people who can't do an4,000 Irish social welfare letters encourage young people to emigrate
a failed statelet and a failed people - roy keane to asst sums it upMarried priests could well be Pope Francis' legacy, says Irish theologian
The Bible however, condemns homosexuality. the men abandoned the natural function of the woman and burned in their desire toward one another, men with