Frequently Asked Questions

Sites offer various resources in buying a car not just online but also offline. With an aim to provide buyers information on process of buying cars online, sites also offer articles with tips and tricks on buying a car. Another great resource is their frequently asked questions. Click on section. Chances are, question you are asking about buying a car is there.

Services

Sites offer web forms and other features that may help you with your decision. Sites like InvoiceDealers.com for example provides multiple price quotes from various dealers. Others have features you can use to compare specs of one car model to other. This is especially handy if you have not yet made your decision on which car to buy. Another great thing with websites, it can show how many are available and what color car is available in. Clearly, it eliminates all walking around scouting for a better deal.

Links

Websites often serve as a portal to another portal. Sites like AutobyByTel, for instance, can link you to their large network of car dealers all over US. This is actually one of original sites that have helped people when they were buying a car over Internet. Some sites also provide links to various service and information in buying a car.

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- Do you typically keep your vehicles in good condition and change vehicles every few years? If so, you may be right for leasing. Lease providers require you to keep their vehicle maintained and repaired, with no more than normal wear and tear. If you don't, you'll be charged at end of your lease.

- How is your credit rating? If you have a history of paying your bills on time and don't have excessive debt, you are a good lease candidate. Otherwise, you may be required to make a large down payment and pay higher finance charges or, worse, be refused opportunity to lease.

Shopping for a Lease

The most important element of a good lease deal is price of vehicle. Regardless of whether you buy or lease, you should always get best possible price first. When leasing, this price becomes capital cost, or "cap cost." Prior loan balances and fees may be added. Rebates, discounts, down payments, and trade-in credit are subtracted. The lower capital cost, lower your monthly payment. This is only element of a lease deal that a dealer directly controls.

The remaining elements of a lease — money factor, residual value, and related fees — are controlled by lease provider and are not negotiable.

Since a lease is simply another form of financing, interest charges apply. These interest charges are known as "money factor." Money factor is expressed as a very small number such as .00375, which is equivalent to 9% annual interest rate. Again, a small money factor results in lower monthly lease payments.

Residual value is an estimate of a vehicle's wholesale value at end of a lease term. The longer lease, smaller residual value. Your lease payment is primarily determined by difference between cap cost and residual value, which is amount that value of vehicle depreciates during lease. The higher residual value, lower lease cost.

Sales tax may also be included in your monthly payment, depending on state you live in.

You can easily calculate car lease payments, once you know key factors, using this Lease Calculator by LeaseGuide.com.

Leasing Fees

There may be certain fees associated with your lease. The fees that lease providers charge vary both in kind and amount. One of most common is an "acquisition fee", which is an administrative charge for work in initiating a lease. Another common fee is a disposition fee, usually charged at end of your lease when you return your vehicle.

You may also be charged at end of your lease for excessive mileage, damages, and unusual wear-and-tear.

At beginning of your lease, you will be asked to pay first month's payment, a security deposit, a down payment, if any, and applicable miscellaneous fees associated with licensing a vehicle in your state. You will also be asked to show proof of insurance.

Driving Your Leased Vehicle

Your vehicle must be driven and cared for according to terms specified in your lease contract. Generally, this means keeping vehicle in good condition, using it for lawful purposes, maintaining insurance, and allowing it to be driven only by licensed drivers.