Tuesday, August 11, 2009

Car Leasing

Many people wonder if car leasing is right for them. Before you make a decision about leasing or buying cars, you should know something about leasing cars and how the process works.

Leasing cars means that you are going to pay the amount the cars depreciate during the time you are in control of them. When you are leasing cars, you do not own them, and when you turn them back in, you will have, in theory, paid for the value that you used. The difference between the value of the vehicles when they were new and the value at the end of the car-leasing contract is called depreciation, and depreciation determines how much leasing cars will cost you.

What is unique about leasing cars is that different cars have different rates of depreciation, which means they are have different leasing costs. American cars, for instance, tend to have a higher rate of depreciation than cars of European and Japanese makes. This means that if you are going to lease a car, you might want to look for a foreign-made model if you want to save some money.

If you are considering leasing cars, whether it is for your business or for your personal use, you will generally be able to drive a much newer car for a much lower monthly cost. This is a great option if owning the vehicle at the end of the process is not important for you. Leasing cars is a great option as well for those people who want to have newer, more reliable vehicles at all times. When the lease is up, you simply turn the car back in and shop around for a new car to lease! That is the beauty of car leasing!

Advantages of Leasing Cars
Leasing cars for my business offered me the tax advantage of not paying the hundreds of dollars in taxes a purchase would require. What's more, I can deduct a portion of the lease installments as a business expense. Plus, The monthly payments are 30-50% less than a loan for the same fleet.

Most lease agreements coincide with the manufacturer warranty so I don't have to worry about costly mechanical repairs because nearly everything is covered. Another advantage of leasing cards is that I can return a vehicle after using it for a few years and pick up a newer model. I won't lose equity in the vehicle and I'll never owe more than it's worth thanks to the included gap insurance.

Disadvantages of Leasing Cars
The main disadvantage of leasing cars for my business is the mileage limit. If I exceed the allowed mileage during my lease period I'll be penalized up to $.39 per mile. I will also be charged for any damage or changes made to the leased vehicles.

Before making any final decision, you should do what I did, weigh the cost of a loan and the long-term benefit of asset ownership against the cost of lease payments and tax and maintenance savings. Only then will you know whether it's better to buy or to start leasing cars for your business.

How to Find Cheap Car Insurance

With the rising costs of fuel and just about every other good or service we purchase, many of us are looking for cheap car insurance. When it comes to cheap car insurance most of us are clueless as to how to go about getting a low cost car insurance policy. There are many factors that influence your car insurance costs drastically.

For example, did you know that the type of car you drive will influence the cheap car insurance you're looking for? Or did you know that using anti theft devices will help reduce your over all car insurance costs? A good driving record will allow you to get cheap car insurance?

The deductible is the amount you pay first out of any claim for an accident. The car insurance policy's cost is directly related to your deductible. A lot of people, especially those with a good driving record, who have had their insurance policy for a long time, have never considered varying their deductible. If you have a clean driving record and are prepared for the risk of paying a larger amount in the event of a claim you can save money by increasing your deductible.

Many times you can get cheap car insurance by combining policies with you existing insurance company. For example if you have a home owners insurance policy contact them and ask for discounts for switching your car insurance to them. If you don't own a home perhaps you have renters insurance or life insurance, contact these companies about the savings you could get by switching your car insurance over to them. Most insurance companies are very accommodating to these requests.

It also pays to shop online for your cheap car insurance; many of the big companies offer a comparison of their coverage versus other companies. As you are requesting cheap car insurance quote online be sure to be completely truthful in answering the questionnaire. Additionally, you should know when you get your online quote you will need to follow up with actual paper work.

Whatever your motivation, with a little work you too can find the cheap car insurance you're looking for.

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