The basic difference between leasing a car and buying it is that the former pays for the period the car is used, whereas the latter pays for the entire cost of the car. Thus, if you lease a car, you only have to pay for the period that you are going to use the car. After the period is over, you can turn the car in and lease another one. But when you buy a car, you own it.

Suppose a car costs $20,000 and you lease it for two years. If the value of the car after this period, taking depreciation into account, were estimated to be $12,750, then you would have to pay only the value that you have used up. This would be $11,250. This amount can be paid in monthly installments. Many provinces add a sales tax to the monthly installments. However, in an outright purchase, you pay the entire cost of the car or take a loan to pay for it. To repay the loan, there are monthly installments calculated on the entire value of the car, which would be $20,000 according to the above example. So the installments on the loan would be significantly higher than those on a lease.

It all depends on the discretion of the buyer whether a lease or an outright purchase is more convenient. Leasing a car does not mean owning the car; it is more like renting a car for the particular period. A leased car is the dealer’s property, and you are paying for the usage. You are required to take good care of the car. Dealers charge a deposit when you lease. If your records of car maintenance are not satisfactory when you turn the car in, you stand to lose the refundable deposit. Lease dealers also set a limit on the mileage of the car per year– something like 12,000 to 15,000 miles. If you exceed this limit, then you have to pay 0.10 cents or more per excess mile. Thus, leasing does not work well for people who travel a great deal. It is understandable that an accident would terminate the lease on the car, and you would be obliged to buy it and finish paying for the lease. Making the lease period coincide with the warranty period of the car so that all major repairs are covered can easily prevent this.

When you buy an automobile, you are totally responsible for it after the warranty period is over. Loan payments also include depreciation charges because you are using the car. The remainder of the payment adds up to the value of the car, termed as equity. When you buy a car, you also pay a sales tax upfront, making it more expensive than the price quoted. There are also delivery charges. The advantage is you own the car.

Leasing entails some problems. For instance, the estimated depreciated value of the car is always less than what its market price would be. Imagine a car that costs $20,000, and its estimated value after two years depreciation is $12,750. In reality, the price would be higher after two years, say about $14,250. You stand to lose the remainder or $1500, even if you trade your car in or re-lease. Also, when you lease a car, it is wise to take out guaranteed auto insurance (GAP). This insurance protects you in case of theft or an accident during your lease period.

The dilemma of leasing or buying a car is ongoing. It actually depends on the person. People who do not wish to own a car, drive carefully, want lesser payments and have a penchant for changing cars every two or three years may prefer a lease. But, if you have an inclination to own your vehicle and don’t mind paying a higher price, then you should purchase it outright.

By: Jimmy Sturo

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Car accessories are truly a hot topic amongst car owners. Car enthusiasts want their vehicle to be the best looking, the loudest or the sportiest. Car accessories are about enhancing the looks of your vehicle or a great way to add functionality, practicality and value. Car accessories are produced by different manufacturers and come in various styles and colours that will give your car an exclusive look. It is easy to mix and match various vehicle accessories so you vehicle is unique in every way.

The Car

Vehicles are not just a way of transport anymore. Vehicles have become a means to state or reflect their owner’s individuality or to shout to the whole world their position in society. It’s not just about getting from A to B anymore. Having a vehicle is about travelling in style and comfort whilst maintaining your image. Car accessories and automotive accessories are about enhancing the look of your vehicle whilst making your vehicle more about you. Aftermarket vehicle accessories are usually bought for the outside of the vehicle, but don’t forget the inside. You can upgrade to items like your clutch pedals, stereo, accelerator pedals, brake pedals, steering wheel and seats to name but a few. Personalization of your vehicle is easily obtained with vehicle accessories and doesn’t need to cost a fortune.

Car Accessories

Accessories are add-ons to your vehicle that can enhance the look or the luxury of your vehicle. Accessories are indeed a great addition to any automobile, but before you buy any accessories, you must first make sure that the item is made from top quality materials and by a trusted manufacturer. Accessories that come automatically when obtaining a vehicle may sometimes be free of charge or discounted at a very reasonable price. Accessories come in different styles, colours, finishes, sizes and materials. The selection of accessories seems unlimited and the internet is perfect for comparing vehicle accessory manufacturers and prices.

Car Parts

Car accessory manufacturers offer a large range of items including euro lights, air suspension and performance brake upgrades. Just about everything you could ever want for your vehicle. Well known manufacturers do not cut corners on quality and only supply reliable and solid performance auto parts for your vehicle. By aquiring accessories through trusted dealers you are ensuring yourself that you are going to get parts that will fit nicely with your vehicle and compliment the desired look that you are trying to achieve.

Apart from choosing car accessories to give your vehicle that individuallook to compliment your distinctive character, vehicle accessories are chosen to enhance the performance of your vehicle. Whether the automobile is in new or used condition, resilient and attractive car accessories are necessary to continually improve, maintain, and distinguish the look of any vehicle. Custom vehicle accessories are one part of vehicle customization that can prove an easy start to the world of custom cars. Many vehicle accessories are low enough in cost so that they are not out of reach of the average vehicle enthusiast.

By: Nigel M

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Seized car auctions may be something new to car buyers especially for first-timers. Very often, we hear of people going to the car showrooms to view the latest car models or even know someone who is going to the used car dealer to buy a second-hand car. Other than heading to the car showrooms and second hand garages, you may not know that seized car auctions are real gems when it comes to buying a used car or near-new condition car at a huge discount. Here are some facts about such auctions for all potential car buyers especially those who are looking for used vehicles.

Did you know that there are literally thousands of cars that go into the surplus inventory of the government and banks?

Since many vehicles are seized or repossessed by government and banks everyday, the monstrous expenses to find a storage space for these cars are huge and maintenance costs can escalate quickly. So in a bid to bring the costs down, government agencies and banks are ready to auction them off at seized auto auctions for as much as 90% off the retail price you see at car showrooms. The next time you see your neighbour driving a Mercedes convertible, it may not mean that he or she is rich. The car may have come from such an auction.

Government agencies such as Internal Revenue Service (IRS), U.S. Marshals Service (USMS), U.S. Customs Service, Small Business Administration, U.S. Department Of Defense, U.S. Bankruptcy Court, U.S. Department Of The Treasury, Department of Agriculture (USDA), Department of Energy (DOE) and many others could be the ones who took these cars in.

Since the anti-mob laws in the States are forcefully enforced, the constant raids on drug dealers and other mob activities have seen many posh luxury cars seized by the government. They are not interested to make any profit out of it but rather to quickly sell them away lest the costs of maintaining them becomes a liability to the government coffers. This is where you get top class, and sometimes near new condition cars on sale at ridiculously low prices in seized car auctions.

At seized vehicle auctions, there are also repossessed cars taken by IRS from people who default on tax payments, and also others who fail to pay up their installments to banks and financial institutions on time. You can find a lot of models like Mitsubishi, Toyota, Ford, GM, Nissan, Honda, Chrysler, Lexus and other brands.

In fact, it is quite likely that there are many cars going for anything from $200 onwards. The eagerness of the government and banks to quickly sell off the seized or repossessed vehicles is an advantage and opportunity for all interested car buyers to drive home a quality vehicle for a deep discount.

Anyone keen on driving home your dream car for a price as low as 80 to 90% off the retail price can check out where to locate these seized car auctions at my blog.

By: Davion Wong

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Driving a car can be one of the most rewarding experiences in life when you are a teenager. As you get older, driving becomes a little bit less of a thrill but many of us still enjoy the occasional road trip. No matter what the reason for you getting behind the wheel, it is going to require that you have car insurance. Looking for and buying your car insurance online can save you a lot of time and money.

Make sure that you have the right coverage on your auto policy. There really is such a thing as too much insurance and conversely you can have too little. Many people think that if you have car insurance, everything is covered. This is not the case so you need to select the options for your policy carefully.

The first thing you need to do is find out what your state of residence requires of you as a driver. Every state has their own set of rules that involves car insurance. Typically, you must carry the minimum amounts of coverage as specified by the Department of Insurance of each state. Physical liability coverage is one of these requirements.

It covers the other party if there is a car accident and you are found at fault for causing the accident. It will pay for the other people to get their medical bills taken care of immediately as well as long term. Typically the required coverage is twenty five thousand dollars per person for a maximum of fifty to one hundred thousand per accident.

You will also need property liability coverage. This pays for the other persons car to be fixed or replaced in the accident you are responsible for. It also covers any damage to their property at home if you run into their house or yard.

Uninsured and under insured coverage is a wise option to take even if your state does not dictate that you have it. If you are in an accident and the other driver who is responsible does not have any or adequate insurance, this portion of the policy ensures that you do not have to pay everything in full, out of pocket for your medical bills and getting your car fixed.

There are many other riders to policies that you can purchase. Research car insurance online and select the best plan for your needs. Do not forget to make sure that the deductible amount you select for your plan is an amount that you can afford if you have to pay it.

By: Ted Kripps

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