February 21, 2018

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Are Auto Loans Through A Car Dealer A Good Idea?

Auto Loans Versus Auto Leases

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Top Consumer Reviews Articles provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Auto Loans Versus Auto Leases

Auto industry statistics indicate that 80 percent of auto buyers either pay cash for their purchase, or finance it with a loan issued either through the dealer or a private financial institution. However, there is a small percentage of people who do not prefer to buy a vehicle, but rather prefer the option of leasing.

If you are in the market for a new automobile, you may be wondering whether owning or leasing is the best option for you. The choice depends on a number of factors.

Some of the reasons why people prefer buying over leasing include:

  • Leasing hidden costs. First and foremost, leases eventually must be returned, and lessees can find themselves paying out of the nose for hidden costs they weren’t expecting. One such cost is mileage. Most leases come with a pre-determined mileage limit. Lessees who exceed the mileage limit for the term of their lease will end up reimbursing the auto dealer the current mileage rate per mile for every mile beyond the lease’s limit. Most three-year leases provide a 36,000 mile limit. For the average driver, 12,000 miles per year may not be enough, particularly if you travel for your job.
  • Maintenance. Another benefit to buying versus leasing is that even while leasing, you are responsible for the maintenance of the vehicle. While most leases come with warranties that will cover the cost of most major repairs, those leases do not extend to routine car care such as replacement tires/tire rotations, oil changes or other fluid replacement. Essentially, the lessee will be paying to maintain a car that he will be returning for someone else to enjoy later.

Some of the reasons why people prefer leases over ownership include:

  • Lower monthly payments. Because the vehicle is technically being “borrowed” for an agreed-upon period of time, rather than being purchased outright, monthly payments tend to be lower on leases. The payments also are lower because the lessee is only paying for the depreciation of the vehicle’s worth, rather than the value of the entire vehicle. However, at the end of the lease term, the lessee doesn’t own anything.
  • Driving the latest model. Some people always want to be seen in the latest model car. They’re willing to put up with a constant monthly lease payment so that they can trade their car in every 2 or 3 years for a newer version. While people who choose to own a car look forward to not having a car payment, these individuals are comfortable with budgeting for lease payments forever.

No matter which option you choose, make sure you fully understand the benefits and drawbacks to each of them before signing on the dotted line.

Car-loan rates expected to rise

Washington - Concern about potential inflation in the U.S. economy has sparked concern that auto-loan interest rates could spike at a time when domestic car sales have already been sluggish. The Federal Reserve raised the interest rate that banks charge ...

Published:  Tue, 20 Feb 2018 16:08:00 GMT

The Bus Not Taken: How Easy Auto Loans Reinforced Car Dependence and Killed Transit Ridership

In Southern California, traffic is the centerpiece of daily life. According to my friend in Los Angeles, her 14-mile commute takes up to three hours of her day; to get to her work by 9 AM, she leaves by 7:30. I live in Santa Barbara, a much smaller town ...

Published:  Tue, 20 Feb 2018 04:08:00 GMT

Woman sentenced to prison for car loan and money order scams

NEW HAVEN, Conn. (AP) - A Connecticut woman has been sentenced to more than three years in prison for taking part in two fraud schemes. U.S. Attorney John Durham said Tuesday that 40-year-old Rachael Alexander, of Stratford, will serve 41 months in prison.

Published:  Tue, 20 Feb 2018 12:19:00 GMT

Police want Sh253m for car loans and mortgage for staff

The National Police Service Commission wants Sh253.9 million for gratuity, car loans, mortgage scheme and leasing of vehicles factored into the next financial year, even as its term ends in September. CEO Joseph Onyango yesterday told the National Assembly ...

Published:  Tue, 20 Feb 2018 17:40:00 GMT

CarMax Auto Finance renews commitment for student scholarships

The CarMax Auto Finance Analytics Scholarship, established in 2014, provides two-year scholarships for students in business and statistics. The merit-based scholarship has served 36 undergraduate and graduate students with financial support. Each academic ...

Published:  Tue, 20 Feb 2018 10:28:00 GMT

CBL Refutes "˜Misleading' US$300K Car Loan Report

The Central Bank of Liberia (CBL) has described as unfounded and misleading reports published by a local daily that alleged that the CBL gave US$300,000 to each of its governors as car loans. A press statement signed Cyrus Wleh Badio, CBL head of ...

Published:  Mon, 19 Feb 2018 18:26:00 GMT

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