Open-ended vs. Closed-ended Leases

Open-ended vs. Closed-ended Leases

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 may see a lease referred to an "open-ended" or "closed-ended", if you do it's likely to be in the fine print, legalese, or wherever the dealer/manufacturer/lessor has put some important but confusing details they hope you won't read.  Even worse, maybe the advertiser won't put it in the fine print but puts "open-ended lease" or "closed-ended lease" in big print next to some out of this world offer - how do you know whether it's a good deal or not? What's the Difference Between Open-ended and Closed-ended leases? In short, in an open-ended lease the lessee is the one on the hook if the actual value at the end of the lease is below the residual value set at lease inception, and in a closed-ended lease it is the lessor.  Usually, your contract will be a close-ended lease, but it’s still...
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Summer Car Buying Season is Here

Summer Car Buying Season is Here

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.**   It is once again the unofficial start of summer upon us: Memorial Day Weekend!  As we discussed in the article about holiday weekend shopping last year, holiday weekends tend to be a great time to buy a car for a variety of reasons.  Of course, if you're going to go car shopping over a holiday weekend you don't want to spend your extra day off at the dealership.  So get prepared in advance. Among the holiday weekends Memorial Day weekend is one of the best ones for car buyers for a couple of reasons: The model year traditionally starts in the fall, so dealers use the summer to clear inventory of the outgoing model year.  Memorial Day weekend is a great time to promote the clearance deals that will make room for the new models coming in from the factories. Memorial...
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Leasing a New Model

Leasing a New Model

by John KoehlerNo Comments
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.**   Autumn has arrived: the air is a little cooler (or should be), the sun sets earlier, the leaves change colors, and the auto manufacturers roll out the next model year's edition of their entire vehicle lineup.  If the vehicle is a mainstay in the brand's lineup, then it will have a major overhaul every 3-5 years, and otherwise not change much from one model year to the next.  But each manufacturer also likes to introduce 1 or 2 brand new models each year, to much fanfare, while more quietly retiring those models that don't seem to be as popular any more.  In either case - the overhauled (their lingo is often "redesigned"), or model or the brand new model, there's some things to keep in mind to make sure you get a great deal - whether you're buying or leasing. The...
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At The Dealership

At The Dealership

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...
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