The new car smell can be tempting enough for many people to want a new car, but if you don’t have the money to buy one with cash and are hell-bent on having a brand new set of wheels, there is always the option of financing or leasing.
Both have their pros and cons, but in this article, we share some things you should know about .
What Type Of Car Do You Seek?
You have seen the ads: “For only $199 a month you can drive a brand new Honda Civic.” While it’s possible to lease a car for that much, what you’re usually getting is a bare-bones vehicle. Feature-laden vehicles with upgraded interiors, air conditioning, and other creature comforts, command a higher real rate.
Selling Price & Residual Value
Don’t rush to the conclusion, however, that seeing rock bottom prices on TV means the dealer practices bait-and-switch — know that such routines are illegal. Every dealer quickly sells out their bare-bone units, but does any one really want a bare-bones car? Your lease payment will almost certainly be more than what you saw on TV but it will be on your desired vehicle.
Ever wonder how the dealership decides on the monthly lease price? They set certain residual values for every car model leased, which is included in the rate. This residual value is what the dealer estimates a car will be worth at a certain mileage and condition when the lease expires. A high residual value lowers the monthly cost that you will pay, and high-quality cars generally have higher residual value than others.
The Money Factor
Deep into each car lease is another financial factor — an interest rate changer called the “money factor.” These are changes to the annual percentage rates. Unlike the annual percentage rate (APR) of a finance contract, dealers write out the money factor in five decimals. They vary from car to car and reflect the “deal” the car dealer offers you.
As an example, when car dealers try to clean out some extra inventory, they will frequently adjust the money factor so your effective APR is less than usual and thus more appealing.
Don’t Forget The Extra Fees
With leasing, there are usually more fees that aren’t stated as such in many lease agreements, fees that are under the guise of “terms and conditions,” fees that you should know about. For example, as a leased car owner, you must incur the expense of repairing any damage that occurs and do it immediately, carrying out any required routine maintenance, and keeping the car mileage under a given threshold before the lease ends.
You must also cover the sales tax. Some car dealerships collect tax based on the leased vehicle’s full purchase price, not the depreciated cost a lessee actually pays. This can be a chunk of money you pay upfront. Do not hesitate to ask the team at this trusted about any of these costs!
Did you know that approximately lease their cars, and that this figure is much higher for owners of luxury vehicles? In fact, a full half of customers driving high end model from the likes of Mercedes, BMW and Audi lease.
Leasing is a popular method for buying a car but the finances are not as straightforward compared to an actual purchase. We hope that this article has cleared up things bit!
Tips To Shop Auto Tires That Last At Great Prices
You can save a lot of money on new tires. All you have to do is look.
If you own an automobile, you will probably know the significance of timely tire replacement. Tire tread gets worn down with usage, making replacing them a safety essential over a certain period of time.
Drivers, therefore, need to take a proactive approach to tire replacement rather than wait until it is too late. Sure, having to shell out a good amount of money for a quality set from reputed brands such as Canadian Tire can be a bit discouraging, but you should not settle for anything but the best, seeing as your vehicle’s safety greatly depends on tire quality.
If you are looking to buy durable tires at great prices, here are some tips that can help.
1. Know what you want
Before you start looking for great deals on the best brands, it helps to have some requirements. Start by determining the , which can probably be found in your car’s owners’ manual.
Do some research online and even consider talking to an expert for better guidance. Learn the tire lingo, as well, so that you have a proper understanding of terms like all-season tires and high-performance tires.
2. Understand that age matters
You may want to save money by buying used tires, but age matters. Before you decide to settle for used tires that you got a good deal on, make sure to ask the seller about their age.
Manufacturers recommend the replacement of tires every six years, irrespective of the condition, so ensure that the ones you are buying do not already need replacement.
3. Look for coupons and promotions
If you know the right place to buy, you can surely find a steal of a deal on quality tires.
Check online to find coupons and promo codes to economize your purchase. If you are prudent enough, you may even find and other giant retail companies that sell a wide range of automotive products.
In fact, finding such promotions and deals doesn’t require much work. A few clicks will do the trick.
4. Shop at the right time
Another good idea to buy tires that last at a great price is to shop at the right time. Of course, you will need a replacement at a specific time, but it also helps to watch out for promotions and offers during the and peak tire sales.
You may even find better deals if you want replacement of all four of your tires because manufacturers often come up with offers like “Buy three, get one free”.
5. Find a deal that covers related services
When you want tire replacement for your vehicle, you will need some related services like an installation as well. Why not look for discounts on tires and installation services as a package deal?
A little hustling when shopping can get you quality products without spending a fortune. But as enticing as promo codes and coupons can be, don’t forget to prioritize high-quality tires.
After all, tire quality determines the safety and performance of your vehicle, and neither should not be compromised at any cost.
How To Choose A Car For Your Teenager In 4 Easy Steps
Learn how to get your teen driver ready to own a car and drive safely.
It might seem like just yesterday they were toddling around in footie pajamas, begging you for one more bedtime story, or refusing to eat anything but chicken nuggets and carrot sticks. Now your child is taller than you, loves Korean food — the spicier the better — and just passed his driver’s test!
Before you know it, he’ll be heading off to college, but for the time being, you’re looking forward to having someone else in the family who can run errands and pick up your youngest from gymnastics class.
Buying a car for your newly minted driver makes a lot of sense. Before you head to the dealership or start browsing Craigslist for beaters, take a look at these tips we’ve compiled to help keep teens safe behind the wheel and teach them responsibility.
Make Sure They Have the Safest Ride Possible
Safety is likely to be your number-one concern, even if it ranks close to last on your teenager’s wishlist. Experts recommend that you get a car with as many safety features as your budget will allow.
Look for features like electronic stability control, blind-stop warning systems, automatic emergency braking, forward collisions warning, backup cameras, and limited acceleration.
In general, the larger a vehicle, the more protection it will provide for passengers, so steer clear of tiny little coupe-style sports cars.
There are some exceptions to this rule, however. Bottom line? Do your research and come up with a list of 10-20 possible makes and models that will .
There are several different ways to approach the financial aspect of a first car for your teenager; It will depend on your family’s finances, whether or not your child has a part-time job, and whether the car will be theirs exclusively or simply a second household car that they’ll be using often.
You might want to make your teen’s first car a gift, but stipulate that she pay for insurance, gas, routine maintenance, and minor repairs. Or you could ask her to pitch in for the auto’s cost, and split the other expenses as well.
Whatever approach you choose, make sure you set a budget before you begin car shopping.
Most parents in this situation can find something suitable by searching for . Another option is investing in new wheels for yourself, then bequeathing your older, but still safe and functional car to your child.
Set Some Ground Rules
Teenage drivers are notoriously dangerous on the road, so allowing your offspring to get behind the wheel is nerve wracking, to be sure.
But you can ease your worries by establishing for driving and the consequences for not following them. A few basic requirements should include:
- No texting or cell phone use while driving
- No drinking or drug use and driving
- Mandatory seat belt use for everyone in the car
- Compliance with all speed limits and traffic laws
Some parents do not let their teenagers drive after dark. Others disallow friends or even younger siblings as passengers, as peers can be very distracting to a new driver.
Consider stipulating that your teenager only drives with an adult in the car, or by herself, for the first six to 12 months after getting her license.
There are devices that you can use to monitor your new driver, but use them as a last resort. It’s better to get buy-in from your teen because of practical safety reasons — texting and driving can be fatal, speeding can lead to accidents or tickets — than because they’re being monitored.
Teach Them Necessary Car Maintenance
Teach your teen driver how to perform basic maintenance on a vehicle. Filling the tank with gas, refilling fluids, checking (and possibly changing) the oil, jump-starting the battery, putting air in the tires, and replacing a flat are all skills that any driver should have.
Additional lessons can cover how to drive in snowy or icy conditions, what to do if you start skidding or hydroplaning, de-icing car locks, and other climate-related skills.
Make sure that their trunk is stocked up with first-aid and emergency repair kits, as well as emergency provisions, warm blankets, a scraper and snow brush, extra windshield wiper fluid, and so on.
Lastly, Let Them Go
We know how hard it can be to watch your baby drive off into the sunset and leave you behind. Of course, you’ll be there to help if they should miscalculate and run out of gas, back into a street sign, or get involved in a fender bender.
But once you have passed on all of your knowledge and parented to the best of your ability, the wise thing to do is to stand back and let them go.
Have you ever given your child a car? What was the first car you ever drove? Let us know your thoughts by leaving a comment below!
6 Signs That Your Car Needs Servicing
Prevention is better than cure, so spare yourself big costs and a major headache by taking care of your car.
Just like how our body sends signals that something’s not right before we get sick, our cars drop hints before a major problem occurs.
Unfortunately, many car owners turn a deaf ear and a blind eye to any jarring noise or broken wire that might suggest a break down is imminent.
Yes, ignoring the warning signs that your car gives off will mean having to face any sudden inconvenience to your regular routine, along with possibly being slapped with costly repairs.
As the old saying goes, prevention is better than cure, so take your car for servicing when something seems wrong so that you don’t have to deal with the cost and headache of something actually breaking.
Here are six signs to pay attention to the next time your car starts acting weird.
1. Warning Lights on Your Dashboard
As cars become more futuristic and complex, being able to directly identify the root problems behind the numerous potential issues that can occur has become more difficult. Fortunately, that is why dashboard has symbols and flashes connected to every major system in your car.
For instance, whenever an engine symbol is flashing, it usually means that something may not be right with that part of the car.
A flashing ‘check engine’ light is one of the most obvious signs that any person who cares about his or her car shouldn’t ignore.
You may look up your car manual to see what the symbol depicts. If the light keeps flashing, then make sure to take your car to a service center as soon as possible.
2. Unresponsive or Sensitive Brakes
Cars these days are fitted with the most advanced braking system on the market, be it automatic braking system, collision avoidance system or . This is why you experience a quick and smooth response whenever applying the brakes.
But if you experience any resistance, any strange noise or even increased sensitivity, then it may indicate an issue. , disks, and fluids often get strained while driving; therefore, their wear could lead to problems.
Since brakes are the most important safety system of your vehicle, you shouldn’t take any signs of trouble lightly. It’s imperative that you take your car to a workshop or for servicing when you detect issues with the brakes.
3. Unusual Emissions, Sounds or Vibrations
If you find anything uncommon like too much emission coming out from your car or strange vibrations and sounds, don’t just pass it off as normal. The excessive emissions may be signaling oil leakage, blockages, or build-ups.
While some vibrations may be simply due to a loose piece of plastic stuck between the tyre and the rim, persistent vibrations could signal something much more troublesome. Ditto for any sounds produced by your car — if they sound unusual or unpleasant, don’t ignore them.
Dealing with any of these problems early can save you costly repairs later.
Stalling and cutting are often the direct result of shifting into the wrong gear. However, if you’re positive that you’ve got the gear right yet this problem happens frequently, then take your car to the service station.
The issue might be signaling some sort of failure in your engine, such as faulty spark plugs or clogged fuel filters.
Your engine and transmission are the most expensive parts of your car, so don’t let the situation escalate. Get it sorted pronto!
5. Grinding Gears
Your car’s expensive gearbox undergoes wear and tear everyday, so it requires considerable attention. It needs fluids for replenishment, along with general maintenance, to help ensure smooth gearing and a pleasant driving experience.
If you’re experiencing a grinding noise when changing gears or there is a leakage of transmission fluid, act on them. Getting them resolved early on can save you from shelling out a boatload of money later.
6. Ignition Problem
A quiet and smooth ignition is what one would expect from a healthy and well-functioning car. However, if you face any whirring sounds or stutters when you start your car, then know that things need to be checked.
It could signal a dying battery or some fault in the motor. Whatever the cause, a visit to the service station is needed.
Buy Car Insurance To Keep Your Car Covered
Along with being proactive in taking care of your car, also buy the right policy for your vehicle. Since every vehicle is vulnerable to the risk of damage and loss, having a comprehensive policy will cover you for such kind of losses and expenses.
A comprehensive motor insurance policy will compensate you for any third-party liability that may arise, ensuring it doesn’t cause a dent in your pocket. It will also cover you against expenses occurring due to damage or loss to the car or any injury or death sustained by the owner-driver.
For further coverage, you may even buy add on benefits that include roadside assistance, no claim bonus and zero depreciation cover.
Take care of your beloved car by getting it serviced on time and keeping it insured.