Leasing VS Buying Part 1

When you are hunting for a new car, one of the biggest questions you may have is whether you should buy or lease the car. There is no one answer to this question that will suit everyone. Everyone's situation is different, and the decesion of whether to buy or lease a vehicle depends on your individual situation and preferences.

Buying and leasing a car as two ways of financing an automobile. You can lease a brand new car or a used one, depending on what you are wanting. A lease finances the use of a car while a loan finances the purchasing of a car. Both methods are good ones, and there are benefits and disadvantages to both of them.

While you need to consider the financial differences, you should also consider what is important to you. Do you want a new vehicle every two or three years? Would you rather have higher monthly payments but have some ownership in your car? Do you actually want to own your car or do you want to trade up? These are important considerations.

Buying and leasing are very different things. When you buy a car you will pay for the car's entire cost, no matter how many miles you may drive. You usually make a down payment and also pay sales tax which you can sometimes roll into your loan. You also pay an interest rate which is determined by your loan company and is based on your credit. Your first payment is made right after your sign your contract. Later on, you can sell or trade your car for the depreciated resale value.

When you lease a car, you only pay a portion of the cost. You are paying for the time you use the car. This is not the same as renting. You don't have to make a down payment when you lease but you will pay sales tax on the monthly payments, at least in most states. You also have to consider the money factor, which is a financial rate similar to the interest rate that a loan has. You might have to pay fees and a security deposit that you wouldn't have to pay if you were buying. Your first payment is made when you sign the contract for the month ahead. When the lease is finished, you can buy the car for the depreciated resale value or return it for another car.

Tomorrow we'll take a look at how lease and loan payments are different and we'll finish out the rest of the week talking about GAP coverage, benefits of leasing and buying, and other useful information.

Let Manly Automotive Group help you in your new and previously owned vehicle choices today stop by our website today and drive away knowing that you made the right choice with us! Manly Auto http://www.manlyauto.com can also can be found on Twitter https://twitter.com/ManlyAuto and Facebook http://www.facebook.com/pages/Santa-Rosa-CA/Manly-Auto-Group/103413126362572?v=wall&__a=3& stop on over and visit us!

It Makes Sense to Maintain that New Automobile

So you have made the decision it is time to purchase that new model automobile, you’ve picked out the color and found the price range you’ve been looking for. You’ve got your down payment and you’ve gone over the financing options as well as what your budget can handle as far as the payment along with any insurance costs changes.

But one thing you may not have figured on when you’ve made the choice to purchase this new automobile is what the actual expenses will be to maintain and keep your vehicle in good running condition. People normally do not put this part in the equation of their finances when it comes to their decision to purchase a specific model. In a recent Consumer Reports estimate over the next five years, you will spend four percent of the total cost of your vehicle on such things as repair and maintenance on keeping your vehicle in good condition. Sure, right now it doesn’t seem like a lot but it will seem so when you have to deal with a large repair such as a blown transmission.

Another recent study shows that an average American household will spend a minimum of almost $5500.00 on gas and automobile expenses. If you stop to think about this it adds up to almost being like a second car payment.

This American average includes all different makes and models. This also depends on what make and model automobile that you have chosen to purchase. For example if you purchase a brand new Honda Accord over a British sports car of course that maintenance cost will be much lower. Remembering to purchase a warranty from the beginning and this will help you out early on when a repair is in order.

In today’s economy, many people are hanging on to their autos much longer and keeping them in better condition then they were in the past. Also today’s autos are built to be much more dependable, it is not unusual to see a car go past the 100,000 miles on the odometer. With people doing the basic routine maintenance although at times this can be expense it will be spread out over many years.

With a person taking good care of their automobile they will prevent expensive repairs and any serious problems as the miles accumulate on their vehicle. Just by changing the oil or rotating the tires will save a person thousands of dollars down the road. Always make sure to check your owner’s manual as to the recommended maintenance schedule for you vehicle and you will have that auto for many years to come.

Let Manly Automotive Group help you in your new and previously owned vehicle choices today stop by our website today and drive away knowing that you made the right choice with us! Manly Auto can also can be found on Twitter https://twitter.com/ManlyAuto  and Facebook http://www.facebook.com/pages/Santa-Rosa-CA/Manly-Auto-Group/103413126362572? v=wall&__a=3& ; stop on over and visit us!

Tips for Buying a Pre-Owned Vehicle

If you are thinking of purchasing a pre-owned vehicle it just might have some worth while advantages for you then choosing to purchase that brand new vehicle. You will more then likely be saving some significant about of money when you one that is pre-owned however, you also take some risks that you wouldn’t be taking when making a new car purchase.

Here are some tips for you to consider before choosing that vehicle - 

Most pre-owned vehicles will include the remainder of any of the original manufacturer warranty, as well as an extended warranty. They might differ from manufacturer to manufacturer. As an example one manufacturer might offer a 12 month 12,000 miles warranty with bumper to bumper coverage and another might offer a 5 year 100,000 mile power train warranty for its certified used vehicle. Those that are well maintained and in very good condition will be reflected in the price and it may be a bit higher than those that are not certified pre-owned.

When shopping for that pre-owned vehicle always think twice before purchasing one that is not certified pre-owned. If you purchase a pre-owned vehicle that is certified you will want to try to get some of the remainder of the manufacturer’s original warranty so that you can still take proper performance care of that vehicle. Newer vehicles usually have some years left on the basic warranty as well as they may even have some left on their power train warranty.

Always ask for the Car’s maintenance record information when you are purchasing a used vehicle. Check for any problems that may have shown up in the past. If someone is offering you a used vehicle and does not offer you the maintenance record, is more then likely means that there is something wrong with it or is just in really bad condition and you should think twice before you buy. Always have a mechanic check any vehicle that does not come with the maintenance record.

When you are looking at a pre-owned vehicle you should always have a third party mechanic inspect the car. The mechanic you choose will advise you of any issues or possible problems with the vehicle that you need to know about.  Also if that person trying to sell you the vehicle won’t allow a third party mechanic inspection then walk away.

Also something that not many people do is to do a little research on the VIN which is known as the Vehicle Identification number to obtain the vehicle’s history. Other’s may have it on the inside driver’s door jam or on the engine bay. You should then take that VIN to a reliable source such as Carfax to get a complete history on the vehicle. They will be able to tell you of any accidents, what maintenance was performed and who owned it prior to you.

Sometimes there is a bit more to purchasing a used vehicle then there is with a new one; however with a bit of research you will have peace of mind before signing on the dotted line.

Let Manly Automotive Group help you in your new and previously owned vehicle choices today stop by our website today and drive away knowing that you made the right choice with us! http://www.manlyauto.com/  We also can be found on Twitter https://twitter.com/ManlyAuto and Facebook http://www.facebook.com/profile.php?id=100001445954579&v=wall stop on over and visit us! 

CarMax Used Cars Incentive Program Launched

Auto retailer CarMax Inc. on Wednesday urged Congress to include used-car buyers in its proposed "cash for clunkers" legislation aimed at jump-starting the auto industry.

Congress is developing legislation that would provide vouchers to consumers who trade in their gas guzzlers and buy more fuel-efficient vehicles. Modeled after successful programs in Europe, the bills before both chambers of Congress are designed to get more gas-sipping cars on the road and boost auto sales, which dropped more than 40 percent among the Big Three carmakers in March.

While used-car buyers are eligible for vouchers under some versions of the proposal, other versions exclude them.

"More people will be able to participate in the program, more jobs will be saved, and more fuel-efficient vehicles will end up on the road by including used vehicles," Tom Folliard, the company's chief executive, said in a news release.

CarMax said its inventory currently includes more than 12,500 vehicles with more than 24 miles per gallon on the highway, which meets the fuel efficiency targets in the some of the legislative proposals.

Congressional leaders have signaled support for some type of car scrappage program and lawmakers are trying to develop a compromise that could win approval in both chambers.

With General Motors Corp. and Chrysler LLC surviving on billions in government aid and few takers at car dealerships, lawmakers have been trying to develop incentives to help the auto industry and respond to environmental groups that want better fuel efficiency in the vehicle fleet.

Analysts have estimated it could boost car sales by 750,000 to 1 million vehicles a year.

But in a recent note Credit Suisse analyst Gary Balter said while he doesn't see a recovery in car sales, either new or used, in the foreseeable future, the proposed legislation could eat into CarMax's sales.

In the Senate, Sens. Dianne Feinstein, D-Calif., Susan Collins, R-Maine, and Schumer want to give consumers a voucher for $2,500 to $4,500 to buy a new vehicle with better fuel efficiency. The older vehicle eligible for scrapping would need to get less than 18 miles per gallon.

The Senate version, which would apply to automobiles built around the globe, would also provide vouchers of up to $3,000 for used vehicles or credits of up to $3,000 for transit fares.

In the House, Rep. Betty Sutton, D-Ohio, wants to give car shoppers $3,000 to $5,000 when they turn in a vehicle for something more efficient. The program would be limited to cars built in North America and require the new car to get at least 27 miles per gallon.