auto leasing – Page 2

The More Things Change…

November 6, 2017May 21, 2023 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** The "Internet Revolution" is now about 20 years in the making, dating back to the 1990's and overcoming a major hiccup in the dot-com crash in 2000. However, it picked up again as people recognized that the answer to everything humankind had accomplished until then wasn't equally suited to a stand-alone digital process. Similarly, while more and more businesses are striking a better balance of how connected tools can facilitate, not replace, an existing process, it's important to recognize that the internet changes almost everything. Since the second largest line item in many family's budget (after housing) is the money spent on vehicles, it's important to keep in mind what is (and what isn't) changing, since any lease agreement includes some bit of future forecasting. While the lessor needs to do most of this forecasting in order to set the...

Avoid Tricks, Make the Deal a Treat

October 31, 2017August 25, 2019 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** The auto buying experience has come along way; although it is still way behind other retail transactions of any size, and also slower and less convenient than other sizable transactions - in a lot of places the process of buying real estate, with a mortgage, still takes less time than a trip to the dealership where you show up knowing the vehicle you want and are paying cash. The most amazing thing is that while there's been substantial improvement in much of the process, the reputation of car dealers/car salespeople is still among the lowest of any profession in the United States, as well as similar nations like Canada, the United Kingdom, and Australia.* It is baffling that people would be willing to do business with people they think are going to trick them. However, the results never seem to change:...

Understanding Online Lease Ads

July 26, 2017August 25, 2019 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** Do you have any idea what the easiest part of leasing is? The answer, to the detriment of the unprepared consumer, is advertising the lease deal! Think about the lease deals you've seen advertised before - on TV, in newspapers or other print, or even on billboards: all of them focus on just three numbers (in this order): The monthly payment The number of months The amount due at signing / down payment amount The advertisers then breeze through the other legally required details as quickly, or in as small of font, as their lawyers will let them. Comparatively, advertising a vehicle for purchase either needs to focus on the full purchase price, which is tens of thousands of dollars, or try futilely to advertise a single monthly payment for consumers with thousands of unique credit and down payment situations. So...

At The Dealership

July 19, 2017March 10, 2020 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** You’re at the dealership surrounded by shiny, new vehicles. Your eyes are dazzled by brilliant colors, glittering rims, and your senses are completely overwhelmed with the rush of that new car smell. You’ve done the research and know you want to lease a new car. You look up and the smiling car salesman is walking toward you. He shakes your hand and asks how he can help you. You mention the car you’ve had your eye on, and together you glide across the showroom floor. Here it is, your dream car, and you’re ready to slip into the driver’s seat and take her for a spin. The dealer takes your driver’s license, grabs the keys, and you make your way to the lot. Your fingers grip the steering wheel; its a perfect fit in your palms. The sun is shining, and...

Leasing vs. The Most Powerful Force in the Universe – II

June 29, 2017June 22, 2020 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** In part 1 of this series we set the stage for why leasing is better than borrowing because the rent charge is simple interest while the finance charge on the loan is compound interest. Now, let's look at three cases: Great credit (3% APR), Good Credit (6% APR), and borderline Fair Credit (12% APR). Obviously these are simply a single point within what are three good size ranges, but this example is best because we're doubling the APR each time. Here's the deal, and we'll compare both financing and leasing: Now, let's look at the impact of the 3%, 6%, and 12% APR (and equivalent money factor) on the actual monthly payment, the finance/rent charge, and the equity position after 36 months: Notes about the table: The bolded figures represent the better deal for the consumer for the given credit profile. The "Net Payments...

Leasing vs. The Most Powerful Force in the Universe

June 23, 2017June 22, 2020 by John Koehler Comment Closed

**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** Albert Einstein reportedly said compound interest is the most powerful force in the universe. Of course, the earliest known written report of this statement was about 30 years after he died, so he wasn't in position to confirm or dispute saying it. But given the genius of the statement, we hope Mr. Einstein would appreciate it being attributed to him. To understand why Einstein, or any genius, may utter this statement it may help to review the difference between compound interest and simple interest. Simple interest is where the interest that accrues doesn't get added to the principal to determine the next period's interest accrual. Basic example: the bank offers a deal where you deposit $1,000 on January 2nd and must come back each week and collect $1. The principal never increases about $1,000, but at the end of the year you...

Leasing an “Old” New Car

June 15, 2017June 22, 2020 by John Koehler Comment Closed

Is is Worth Leasing an "Old" New Car? **This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** As we reach mid-June there are still more 2016 vehicles listed as new cars for sale than there are 2018 vehicles listed for sale. Overall, there are about 103,000 new 2016 vehicles listed for sale nationwide, which is about 4% of the total new car inventory currently listed for sale*. All of these cars will eventually be sold, it's just a matter of when and at what price. Lease Wizard doesn’t recommend for or against considering these vehicles for lease (or purchase) versus more conventional new cars – those with a 2017 or 2018 model year, but instead here are some things to consider that can help you make an informed choice: At some point in each year a manufacturer usually cuts off incentive support for these “old” new cars – the ones with...