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LeaseTrader.com Hopes to Help Drivers Find Better Leases: DailyFinance

Fri, 05 Aug 2011 14:07:40 GMT

LeaseTrader.com Hopes to Help Drivers Find Better Leases : DailyFinance

With the help of sites such as Cars.com, AutoTrader.com and eBay Motors (EBAY), car buyers have been able to comparison shop across states for several years. Now, LeaseTrader.com wants to offer the same transparency to drivers looking for a good deal on a Car Lease.

Sergio Stuberman, CEO and founder of LeaseTrader.com, says it can be difficult for drivers to get information on leasing terms, in some areas, so that they can find the best deal. In some states, "there are a few franchises that control the whole market, so consumers end up paying more for lack of strong competition," he says. "When you do call dealers in your area, none of them like to give you upfront information. They all ask you to come in."

Before launching its new service this week, LeaseTrader.com focused on matching car-lease shoppers with consumers who want to escape their leases. But adding dealers to the mix expands it from car-lease swaps into new leases.

Dealers pay a monthly fee to get their leases included on the site, so users don't get to see the entire marketplace of leases. The site has just 10 dealers participating so far, Stuberman says, adding that it's "aggressively pursuing more."

Still, the site gives users the opportunity to score better deals, and -- at minimum -- get more insight into pricing to help negotiate with their local dealers.
Cross-Border Deals

For example, consider a consumer who searches the site for a 36-month lease on a BMW 535i with $1,000 down and 10,000 miles. At Momentum BMW in Houston, the cost is $869 per month, compared to $636 per month at Orange County BMW in Harriman, N.Y. (When shoppers click "select," the dealer contacts them directly.)
If the dealer is out of the lessee's area, he or she would have to pay shipping costs -- which typically range from $500 to $700, depending on the location -- to get the car. But in many cases, including in the above example, the lessee could make up those costs in just a few months.

Christine Kick, business development manager at Orange County BMW, says the dealership frequently leases to out-of-state customers. "We just have to apply that particular state's taxes and register the car to their residence," she says. "We can do everything over the phone, although some customers choose to fly in, spend the weekend in New York City, and drive home."

Providing the ability to comparison shop for leased vehicles across states is a unique service, says Jesse Toprak, vice president of industry trends with TrueCar.com, a publisher of new-car transaction data. "You could potentially go around and gather the information on your own, but that's not really practical," he says.

Shocker: Car Buyers Want Higher MPGs, Don't Want To Pay For It

Wed, 27 Jul 2011 17:45:37 GMT

Shocker: Car Buyers Want Higher MPGs, Don't Want To Pay For It

Reading the news reports, it looks like the White House and automakers may be closing in on an agreement to raise corporate average fuel economy standards to 54.5 mpg.

Consumers are all in favor of raising gas mileage requirements for new cars, according to a new online poll of 1,100 U.S. drivers from LeaseTrader.com.

Fully 72 percent want to see higher fuel efficiency rules enacted.

But there's a little problem: They don't want it to cost much, if anything.

Which is, frankly, unrealistic.

Almost every auto industry analyst agrees that cars with fuel efficiency high enough to meet the proposed levels--whether it's an average of 62 mpg, 56 mpg, or the latest 54-mpg proposal--will cost more in real dollars than today's cars.

But only 34.5 percent of respondents approve of higher standards if vehicle prices will rise more than $2,000.

Luckily, that's likely to be on the high end of the real cost increases. Most analysts estimate the total tab at $1,000 to $2,000 (despite some highly alarmist doom-and-gloom projections from Detroit that few analysts take seriously).

By comparison, the average car sold in the U.S. today costs almost $30,000.

Earlier this year, the NHTSA projected that higher CAFE rules would increase vehicle costs from $770 to $3,500, depending on the level chosen. The agency said its models showed that if the highest 6-percent increase were selected, consumers would see a payback on the cost difference within four years.

Some other highlights from the poll:

70 percent feel automakers already have the technology to significantly improve the fuel standard technology
64 percent believe Hyundai could meet these fuel standards before the government deadline
47 percent believe the domestic carmakers can be profitable under these fuel standards

The new CAFE level seems likely to end up around 52 mpg on average. That translates to a window-sticker EPA rating of 42 mpg. That's less than today's2 011 Toyota Prius, which carries a combined EPA rating of 50 mpg, or the 2012 Honda Civic Hybrid, at 44 mpg.

Trucks will carry lower ratings, and have to increase at lower rates in the early years--which still ends up saving more gasoline, because miles per gallon is not a linear scale.

Automakers are eager to see a new set of standards settled for model years 2017-2025, which will let them invest in fuel efficiency technologies for new generations of cars.

And the White House is eager to see CAFE standards raised to reduce carbon emissions, further lower the amount of gasoline consumed, and save consumers money over the life of the car.

If the two parties can agree on new standards, the big question then becomes whether California's influential Air Resources Board will sign off on them. The state has the legal right to set its own, stiffer standards, though the global auto industry is devoutly hoping it won't do so.

Assuming California falls in line, the industry will have for the first time in many years a fixed set of standards it must meet for its next two to three generations of cars.

Then the fun will begin.

Driver Education ... A wise investment

Mon, 11 Jul 2011 15:39:18 GMT

Driver Education ... A wise investment

Stay Alive … Just Drive

During the course of my 40-plus years driving, I’ve been afforded the opportunity to participate in numerous driver education programs, some in classroom settings and many behind the wheel. Unfortunately the average driver can operate a motor vehicle in most states without any requirements for continuing education.

Nearly every state has adopted some form of a strategic highway safety plan. Unfortunately, not one state has included continuing driver education in their initiatives. Florida’s plan addresses four very broad areas: intersection crashes, aggressive driving, lane departure crashes, and vulnerable road users.

Drivers typically do not seek defensive driver training unless required by an employer, or motor vehicle operators 50+ who take a course to reduce insurance premiums. Consider the impact if all fifty states included continuing education in their safety plans. The results would produce safer roadways, reducing deaths and long term disabling injuries, along with lower insurance premiums.

Let’s face facts. Driving is the most dangerous activity we participate in on a daily basis. So why shouldn’t we be required to take a refresher course each time we renew our license? Why can you kill another person with a motor vehicle and only receive a fine and points on your license? Why do habitual offenders continue to terrorize our streets? It’s because we do not take driving seriously. No one leaves in the morning thinking they won’t be coming home in the evening. Sadly in America, 87 people a day don’t make it.

A recent study of 500 male and female drivers conducted by LeaseTrader.com provides some eye-opening results. The more experience people had behind the wheel, the worse their scores on the driving test. Drivers with more than 20 years experience scored nearly eighteen percent lower than younger drivers. Ten sample questions found on written exams across the U.S. were answered by the study’s participants. No one scored every question correctly, and just over three quarters answered four or more questions incorrectly. Yes, a failing grade.

Keeping in mind that no fatality is acceptable, three deaths involving young drivers stand out. Instantly the news media began reporting in each case how the roads, intersections, lack of a traffic signal, or other factors were responsible. Each death was 100% preventable and driver error was 100% responsible.

Let’s examine the facts. A young student from Florida Gulf Coast University on her way home, attempting to avoid a crash with stopped traffic, panics, over corrects, loses control, rolls over and is ejected. Speed too fast for conditions, possible driver distraction, combined with the failure to buckle, up all add up to this preventable death.

A motorcyclist traveling well above the posted speed limit encounters another driver who turns in front of him. Failure to yield, plus excessive speed, produces fatal results. Not the road or the intersection, but both drivers who directly contributed to this fatality.

On a rainy morning an 18-year old loses control of his vehicle, crosses the center line, colliding with a pick-up truck. Automatically it becomes the road’ fault. Overlooked is the fact a young inexperienced driver, travelling too fast for conditions, fails to maintain control. Sadly the most disturbing revelation, he was not wearing his seatbelt. A tragedy no parent or family should have to face. A tragedy that would have been avoided by simply driving smart.
Florida allows drivers to attend an approved course to eliminate points on their driving record or citation dismissal. Legislation now requires drivers involved in three crashes in three years to attend retraining, so we are taking a step in the right direction as Florida joins eight states that have mandatory driver re-education programs.

Considering the U.S. fatality rate (32,788 in 2010), hopefully more states will make required continuing driver education a part of their comprehensive effort to reduce traffic fatalities and injuries.

Fuel Prices Down, Mid-Size Truck and SUV Leases Up

Fri, 08 Jul 2011 13:52:13 GMT

Fuel Prices Down, Mid-Size Truck and SUV Leases Up

The demand for mid-size truck and SUV leases has rebounded with the drop in fuel prices according to LeaseTrader.com - a site for car shoppers who want to assume the lease of consumers who want to terminate their current lease. All figures are relative to same month of 2010 to the current year.

The Energy Department's Energy Information Administration says gas prices have dropped to a national average of about $3.50 per gallon - down more than 40 cents since early May. Fuel prices rose sharply in February and peaked at a national average of $3.97 a gallon in May. LeaseTrader.com says the demand for mid-size truck and SUV leases on its site has risen an average of 8.3 percent compared to pre-June demand.

"Throughout spring when gas prices rose sharply, the anticipated ascension of fuel-efficient vehicle demand came to fruition," said Sergio Stiberman, CEO and founder of LeaseTrader.com, "But interest in mid-size trucks and SUVs was more prevalent than in 2008 because of a stable economy. With gas prices easing off their highs, Car Lease shoppers have started to inquire about truck and SUVs feeling less financial pressure at the pump."

The Honda CRV and Mazda CX-9 were both down more than three percent with the CRV down 3.6 percent February through May but up 10.2 percent since June 1 and the CX-9 down 3.3 percent but rose to 7.6 percent in the same time period.
The Ford Edge and the new for 2011 Explorer were down more than two percent with the Edge down 2.3 percent and the Explorer down slightly less at 2.2 percent when gas prices rose earlier this year but have increased to 9.8 percent for the Edge and 7.5 percent for the Explorer since the beginning of June.

Nissan's Pathfinder and Toyota's Highlander were both down more than four percent: 4.2 percent and 4.6 percent respectively. Since the June 1 they have both increased with Pathfinder leases up 9.4 percent and Highlander up 8.1 percent. The popular Ford F-150 and Chevrolet Silverado were down 1.6 percent and 1.7 percent respectively during early year gas price spikes but have now increased to 6.3 percent and 5.8 percent respectively since gas prices have dipped and leveled out.

US fuel efficiency in new cars falls for 3rd month

Fri, 08 Jul 2011 13:39:18 GMT

US fuel efficiency in new cars falls for 3rd month

Fuel efficiency on new US cars sold in June down 1.4 pct

* TrueCar's industry average at 21.6 miles per gallon

* Lease deals for larger SUVs, trucks rise -- LeaseTrader

DETROIT, July 7 (Reuters) - Americans slowed their drive for fuel efficiency for a third month in June, with the average mileage of new car and trucks falling as gasoline prices receded.

The fuel efficiency in new cars and trucks sold in June in the U.S. market slipped 1.4 percent to 21.6 miles per gallon from 21.9 mpg the previous month, according to online car-buying research website TrueCar.com. It is now the lowest since December, when gas prices were about 60 cents a gallon cheaper.

"The big drop we've seen recently in gas prices brought back some of the consumers that wanted to buy the larger vehicles," TrueCar analyst Jesse Toprak said. "A portion of consumers is almost completely reactive to gas prices."

Another factor was the shortage of smaller cars due to the earthquake in Japan in March that resulted in parts shortages, he said. Prices rose on those vehicles, causing larger vehicles to look more attractive because the step-up in cost was not as large.

The TrueCar data suggests U.S. consumers have rekindled their desire for larger, less fuel-efficient vehicles as the pain at the pump declines. Toprak said that, while the average in July remains even with June, it will drop later in the fourth quarter as consumers buy more large pickup trucks, which they have done historically.

In practical terms, a small decline in fuel savings is not insignificant.

TrueCar estimates that a 1-mpg improvement on estimated sales of 13 million vehicles would reduce fuel consumption by 416 million gallons, or nearly 10 million barrels of oil. That is equivalent to only about a day's worth of gas consumption in the United States.

The U.S. industry average has slipped since rising to 22.3 mpg in March from 21.5 mpg in December 2010, according to the TrueCar data based on actual sales and the Environmental Protection Agency's mileage ratings.

Gas prices rose 22 percent from December to March, hitting $3.60 a gallon as tracked by the U.S. Energy Information Administration. Prices at the pump then hit almost $4.00 in May before declining to $3.58 on July 4.

The industry average saw a similar decline in 2008, the last time gas prices spiked to near $4.00 a gallon. TrueCar said the average rose to 21.2 mpg in May 2008 from 20 mpg in January that year, but steadily declined to finish the year right where it started.

LeaseTrader.com pointed out that lease deals for the mid-sized trucks and sport utility vehicles it tracks have rebounded an average of 8.3 percent since the end of May as gas prices fell.

For instance, Honda Motor Co Ltd's (7267.T) CR-V and Ford Motor Co's (F.N) Edge SUVs both have seen demand for leases rise about 10 percent in that time, LeaseTrader said. The Nissan Motor Co Ltd (7201.T) Pathfinder, Toyota Motor Corp (7203.T) Highlander, Mazda Motor Corp (7261.T) CX-9, Ford Explorer and F-150 and General Motors Co's (GM.N) Chevrolet Silverado have seen gains ranging from 5.8 percent to 9.4 percent.

"With gas prices easing off their highs, Car Lease shoppers have started to inquire about truck and SUVs, feeling less financial pressure at the pump," LeaseTrader Chief Executive Sergio Stiberman said.

While automakers have introduced more cars that offer 40 miles per gallon or better over the past year, the roll-out of new and improved technologies to boost fuel efficiency in the large cars and trucks Americans love has held back gains in TrueCar's industry fuel-efficiency average.

For instance, V6 engines made up more than half of the total in Ford's F-150 pickup trucks in the last two months -- the first time since 1985 that V6s were the preferred engines in the popular full-size truck.

Lease deals aim to stem defections

Tue, 28 Jun 2011 20:20:50 GMT

Lease deals aim to stem defections

Japan brands offer extensions, spiffs

Toyota, Honda and Nissan are counting on new lease programs to keep customers from straying because of the lack of selection of popular models in the aftermath of the March earthquake.

American Honda Motor Co. told dealers last week to offer to extend customers' leases by up to six months on most models. Honda also will offer $500 cash to lease customers who move into new leases.

Honda's campaign, marketed as the Honda Promise Program, also will give customers a rain check on current incentives if they commit to a model that is unavailable. Customers would be able to lock in existing incentives in July that can be used through October, as the vehicles become available.

"Most of the push is geared toward lease customers," said a Honda dealer who asked not to be named. "They do not want to lose them. They are too valuable and too hard to get back."

Toyota Motor Sales U.S.A. Inc. also has launched an effort to keep customers in existing leases, according to Bob Carter, Toyota Division general manager. Under the program, which has not been widely advertised, Toyota will extend leases by six months. Toyota also will give lease customers a $750 coupon to use when they turn in the vehicle and lease another Toyota.

Nissan North America is offering short-term low-priced lease deals on its best-selling model, the Altima sedan. It's advertising the car at $179 a month for a 24-month lease.

Mazda spokesman Jeremy Barnes said Mazda has no formal program to extend leases. But a company statement said Mazda Capital Services "will work with qualified customers to offer lease extensions if there is a delay" in vehicle availability.

"What's really driving this is the inventory situation," says John Sternal, vice president of marketing at LeaseTrader.com. The company arranges lease swaps for consumers.

"The Japanese imports have been rebuilding their inventories since the earthquake in March. But they've still got a lot of holes," Sternal says. "What they're doing with the lease extensions and shorter-term leases is a bridge strategy -- they want to hold onto those customers until 2012, when the inventories will be back in full."

Another key issue this summer is the tight supply of good used vehicles, says Alec Gutierrez, manager of vehicle valuation at Kelley Blue Book. "Fewer trade-ins are coming through, and manufacturers need those lease customers to keep supplying them with two- and three-year-old models," he says.

He estimated that used prices for fuel-efficient models are 20 percent higher this summer than they were at the beginning of the year.

[SOURCE: Automotive News ]

A Good Time to Trade in That Gently Used Car

Wed, 08 Jun 2011 14:35:28 GMT

A Good Time to Trade in That Gently Used Car

Used-Vehicle Prices Hit Record Highs; No New-Car Smell Necessary With Strong Demand for Fuel-Efficient Models

That three-year-old car sitting in the driveway may not seem so exciting anymore, but to some car dealers it could be gold.

Informed shoppers with well-maintained cars to trade in have an unusual opportunity to take advantage of what industry analysts say is a record peak in used-car prices. Resale and trade-in values for late-model vehicles in good condition have been rising all year as demand has outstripped supply, particularly for fuel-efficient models.

Among the forces driving up used-car values is a shortage of many popular Japanese models due to production slowdowns following the March earthquake. And the sales collapse during the 2008 and 2009 financial crisis means fewer two- and three-year-old cars are available.

The National Automobile Dealers Association last week raised values again on many small- and medium-size cars in its latest Used Car Guide, which is widely used by dealers when deciding what to offer for cars taken as trade-ins.

A one-year-old Honda Civic that NADA's Used Car Guide valued at $14,275 in May is now estimated to be worth $15,950. "Thesame car," says Jonathan Banks, NADA's executive auto analyst.

KBB.com, the Web home of the Kelley Blue Book used-vehicle-pricing franchise, says a three-year-old Toyota Prius is worth, on average, $17,750 as a trade-in, up $6,050 from the value of a three-year-old Prius a year ago.

The market isn't booming for all types of vehicles. Large sport utility vehicles, such as a Ford Expedition or Chevrolet Tahoe are down less than 1% from a year ago, according to NADA's guide. Still, they are up nearly 5% from the start of the year.

Late-model, mid-size luxury cars—a segment that includes the Mercedes E-Class and the BMW 5-series—are worth about 6% more on average than a year ago, according to NADA.

"We have seen extremely strong pricing," says Jeremy Meyer, national manager for Audi's U.S. certified pre-owned sales operation. And "consumers are willing to pay those higher prices," he says.

Manheim Consulting, an arm of the big Manheim auto-auction business, has for years published an index of used-vehicle values. In May, that index, using a scale with a baseline set at 100 for January 1995, was 127.8—a record high.

For consumers, this is now a game of arbitrage and information gathering. Prices for many new vehicles are up, but not as much as values for in-demand, late-model used cars.

"The best case scenario is that you have a trade-in that is somewhat gas efficient, and you are ready to trade for a larger vehicle," says Jesse Toprak of Truecar.com, an auto-shopping and data site.

For people who have a leased car that's close to the end of its term, now is the time to figure out whether that car is worth more than the residual value assigned in the lease contract.

For example, a 2008 BMW 3-series has an average residual value of about $17,450, but a trade-in value of close to $20,000, according to data compiled by Truecar.

NADA's Mr. Banks says anyone with a leased car that's due to be returned should investigate the car's market value—using the online NADA guide and shopping sites such as KBB.com, Edmunds.com, Cars.com or Ebay. Then be ready to bargain with the dealer to get a higher value than the one stipulated in the contract.

"Don't just hand over your keys," says Mr. Banks.

Realizing the extra value in a leased vehicle can be tricky, however. Selling a leased car to another individual could require buying it from the leasing company, then reselling it, and possibly paying sales tax.

Sergio Stiberman, chief executive of LeaseTrader.com, a site that enables the exchange of auto leases, says the easiest way is to use the difference between the purchase-option price written into the lease contract and the car's current market value as equity in a trade-in. The dealer can then work out the transaction with the leasing company and resell the car for a profit.

Dealers are stepping up efforts to snag high-quality used cars, while eyeing their inventories to make sure they don't get caught with too many vehicles at the top of the curve.

At Group One Automotive, a big Houston-based dealer chain, used-car managers are scouring Craigslist, and emailing past customers to find more of the cars that are selling best. But the company is keeping its used-car inventory at or below 30 days' supply.

"We have to have rational exuberance," says company spokesman Pete DeLongchamps.

Will used-car prices come back to earth? Most likely, though telling when is educated guess work, not science. Gasoline prices are edging down, which could cool demand for used hybrids and rejuvenate interest in second-hand SUVs.

Japanese car makers say they are ramping up production as they work out the problems getting critical parts from suppliers damaged by the earthquake. Once their factories are rolling, industry executives and analysts expect Toyota Motor Corp. and the other big Japanese brands will come out swinging with discount deals to get back the market share they've lost. The cheaper new cars get, the more likely used-car prices will moderate as well.

A longer-term factor in the current scarcity of late-model used cars is that so few cars were leased during the credit crisis and recession of 2008 and 2009. Higher sales in the past year will mean more supply for the used-vehicle market of a 2013 or 2014.

Car Sales Jumped in February, but Here Come Gas Prices Again

Wed, 02 Mar 2011 15:14:05 GMT

Car Sales Jumped in February, but Here Come Gas Prices Again

DETROIT — Sales of new vehicles in the United States increased 27 percent in February, automakers said Tuesday, even as violence in the Middle East and a surge in gasoline prices threatened to slow the industry’s postrecession recovery.

The automakers said that they were seeing some signs that fuel economy was becoming a higher priority for consumers again, but that gas prices were not affecting car shoppers as much as three years ago, when drivers were scrambling to get out of big trucks and sport utility vehicles. Sales rose 37 percent for pickups and 34 percent for S.U.V.’s from February 2010, while demand for small cars rose 24 percent, according to the Autodata Corporation.

General Motors led all automakers with a 46 percent increase, as sales of its full-size pickup trucks jumped 66 percent and its Buick and Cadillac brands each reported gains of at least 70 percent. Chrysler sold 82 percent more pickups, though its total sales were up just 13 percent.

“It took less than 90 days to go from wondering where we would get some sales to how we’re going to get enough cars,” said Sam Pilato, general manager of the Dimmitt Chevrolet dealership in Clearwater, Fla.

Toyota said sales rose 42 percent last month, when traffic at its dealerships was hurt by two big recalls. Nissan, Hyundai and Kia each set February records.

The Ford Motor Company, which benefited from Toyota’s troubles last February, said sales were up 10 percent; excluding Volvo, which Ford no longer owns, its sales were up 14 percent. Its midsize car, the Fusion, outsold the Honda Accord, a perennial leader in that hotly contested segment.

Ford said it planned to increase production by 9 percent in the second quarter, despite widespread projections that gasoline prices could hit $4 this summer. Nationwide, gas is averaging $3.375 a gallon after rising 20 cents in the last week and 27 cents from a month ago, according to the AAA motor club.

LeaseTrader.com, which helps people who want to get out of auto leases, said its analysis of the price run-up in 2008 suggested $4 was the psychological barrier that could cause consumers to change their buying behavior. But the automakers said they were confident sales would continue to rise, in part because many people put off buying a new vehicle during the recession and would need one soon.

“If gas prices rise slowly, as we expect them to, we don’t expect to see a big impact, but if there is a dramatic spike that could obviously have a big impact on industry volumes,” Don Johnson, G.M.’s vice president of United States sales operations, said in a conference call with analysts and reporters. “The last one, we had a lot of people that overreacted and went into vehicles that didn’t meet their needs.”

Since then, G.M., Ford and other automakers have vastly improved their lineups of small cars as well as the profit margins that those segments generate. Smaller cars are still less profitable than trucks and S.U.V.’s, but in the past the Detroit companies often sold those models at a loss simply to keep factories running.

G.M. last year introduced the Chevrolet Cruze, a compact sedan, while Ford rolled out the smaller Fiesta last summer and will introduce a redesigned version of its Focus compact car this month.

Still, if consumers looked to downsize again, many might continue to ignore Detroit’s offerings, said Jessica Caldwell, director of pricing and industry analysis at Edmunds.com, which provides car-buying information.

“The perception of most consumers is that they don’t have fuel-efficient cars,” Ms. Caldwell said. “There’s just not as much brand awareness for a new model like the Cruze as there is for something like a Civic or a Prius,” she said, referring to popular models from Honda and Toyota, respectively.

Ms. Caldwell and other analysts said cash rebates, low-interest financing and subsidized lease deals were allowing G.M. to gain market share more quickly than it would otherwise. G.M. and other automakers, particularly its Detroit-based rivals, used to rely heavily on such incentives to clear unpopular models from crowded lots, but have backed away from that strategy.

G.M. executives said that the company was not falling back on one of the bad habits that helped lead it into bankruptcy protection two years ago. They noted that dealer inventories were at the lowest level in many years and, excluding deliveries to car rental companies and other so-called fleet buyers, sales to individual consumers were up 70 percent in February, the highest year-over-year gain in company history.

“There is clearly a lot more going on here than a mere incentive move of a couple hundred dollars,” Mr. Johnson said. “Our disciplined approach to incentives has not changed.”

Mr. Pilato, the Florida dealership manager, said incentives were helping to make sales, but so were improved vehicles and banks that had become more willing to offer financing to customers with lower credit scores.

AmericanWay Magazine: Fly to a City, Buy a Car

Thu, 06 Jan 2011 21:11:40 GMT

AmericanWay Magazine: Fly to a City, Buy a Car

Ever considered combining your hunt for a new car with a trip? Surprisingly, an increasing number of Americans are doing just that. Thanks to the ease of online shopping, automotive tourism — in which customers search for vehicles outside their hometown, travel there and then drive their new car back home — is on the rise.
According to the online leasing website LeaseTrader.com, the number of customers taking over existing leases from someone in another region rose by 15 percent in 2010 alone. And of all lease transactions taking place today, roughly 38 percent of them occur between individuals in different regions (even between New York and California), with a whopping 54 percent traveling to pick up their vehicle (a jump from just 12 percent five years ago).

The major motivations here are price and customization: In addition to avoiding the down payment usually associated with buying or leasing a new car, customers can choose from a larger pool of vehicles for deals that fit their needs. If you’ll be looking for a new car in the near future, we suggest you head to one of these five cities, labeled top automotive-tourism destinations by Lease Trader.com:

LeaseTrader.com featured in AmericanWay

More lease owners regret their decision

Wed, 10 Nov 2010 19:36:31 GMT

More lease owners regret their decision

Leases make up for more then 20 percent of all new car purchases for the first time in more than a decade, according to Edmunds.com, which also says that more first-time leasers are making rookie mistakes. The top mistake is failing to take into consideration the true cost of ownership, which includes gas, maintenance and repair, insurance, even permits to park in the commuter lot or downtown.

The mistake many buyers make is to look at the cost of the down payment and monthly payment without researching first if the new car will cost higher insurance payments than the previous car. First-time car owners also usually forget to calculate insurance costs at all.

“Some people go into a dealership with the intention of financing a car with a certain monthly payment, but switch to a lease program at the last minute because they can get a better car for the same money,” says Edmunds editor Carroll Lachnit. Leases often look better at first glance because the down payment is less than with an outright purchase.

Car leasing website LeaseTrader says more people are experiencing remorse today because they fail to research the effect their new car will have on insurance premiums. LeaseTrader.com says the number of buyers who are bailing on their lease because of unanticipated higher costs will be 4.5 percent in 2010. That's more than double the number of lease bail-outs in 2009.

The bottom line is always the bottom line. Calculate all your costs before buying or leasing a vehicle.

Source: [ The Examiner ]