Do You Know the Difference Between Leasing and Buying?

When you’re in the market for a new car or truck one of the first decisions you face is whether to buy or lease.  While buying or leasing each have their own advantages, there are important differences you should consider before going to the showroom.   

There isn’t a right answer to the question of which is better: buying or leasing.   The decision to buy or to lease depends on your individual circumstances now and in the future.  It’s important to consider your own driving needs and requirements.  For example, how many miles will you drive annually?   Do you tend to be hard on your vehicles?  Do you tend to keep your vehicles until they can’t be driven anymore, or are you a “I need a new vehicle every few years” type? 

The bottom line is that it’s important to do your homework and understand the key differences between buying and leasing, so you can apply your knowledge to your personal situation.   To help get you started, AWARE reminds you of the major ways buying and leasing differ. 

Ask Patty.com Partners with AWARE on Auto Financing Initiative

Washington ,DC ---- October 15, 2007 ---- Ask Patty.com has partnered with AWARE (Americans Well-informed on Automobile Retailing Economics) to educate consumers about the auto financing process and offer tips and resources to help consumers make financing choices that match their needs and circumstances.

 Ask Patty.com, which is now an AWARE education ally, gives the auto finance education organization a unique opportunity to have its materials and information featured on AskPatty.com’s Web site and blog on regular basis.

“One of the most frequently asked questions women have for our panel of 50 expert women on AskPatty is how to negotiate for the best deal on auto financing,” said Jody DeVere, President of AskPatty.com, Inc."By working with AWARE we are able to tap into their excellent resources to help answer those questions, help women understand the terminology and provide tools to become completely prepared before they go to the dealership to buy or lease a vehicle."

There’s FINANCING, And Then There’s SPECIAL FINANCING

Special financing? Whatever is that? Well, it is how it sounds. Special financing is financing set up for individuals with ‘special’ credit. Special financing means higher interest rates, pre-set prices by the banks on vehicles, fees paid by the dealer, and sometimes required down payments.

That’s what special financing means to the banks and the dealership. But what does it mean to the consumer? In the industry, time and time again, special financing is explained as a way to re-build one’s credit through the purchase of an auto loan. There was a day and time, a long time ago, when the words "special" and " financing" didn’t have any significance when paired together. 

Now, however, times have changed and so have the way banks and financial institutions treat credit challenged individuals. A special finance customer may be faced with choosing between a limited selection of vehicles that fit the criteria set by the bank. Certain criteria may include how many miles the vehicle can have, how much the monthly payment can be, and even which vehicles you could choose based on how much the dealer had to pay for them.

That’s what special financing means to the banks and the dealership. But what does it mean to the consumer? In the industry, time and time again, special financing is explained as a way to re-build one’s credit through the purchase of an auto loan. There was a day and time, a long time ago, when the words "special" and " financing" didn’t have any significance when paired together. 

Now, however, times have changed and so have the way banks and financial institutions treat credit challenged individuals. A special finance customer may be faced with choosing between a limited selection of vehicles that fit the criteria set by the bank. Certain criteria may include how many miles the vehicle can have, how much the monthly payment can be, and even which vehicles you could choose based on how much the dealer had to pay for them.

Women and Auto Financing

Women in America finance a variety of purchases, including vehicles. According to a survey by AWARE,
(www.autofinancing101.org), more than a quarter of women (27%) have financed a vehicle in the past three years. These women are most likely to have financed their recent vehicle purchase at the dealership – much more likely, in fact, than men (34% vs. 27%). And 64% of women plan to finance their next vehicle purchase, compared to only 56% of men.

Most women (81%) are aware that consumers have many options available to them to obtain vehicle financing. And 83% of women appreciate dealer financing as convenient. Three quarters (75%) recognize that it offers access to financing to those who might otherwise be unable to purchase a vehicle. More than six in ten women (61%) prefer dealer financing because it offers competitive rates.

Knowledge is Key When Financing a Car

I did a tele-seminar this week for a group of women and they asked so many questions about car loans, credit scores and how to qualify for the best loan I thought I would pass on these great tips from Aware.

Taking Steps to Boost Your Credit Score

According to a consumer survey conducted for Americans Well-informed on Automobile Retailing Economics (AWARE), 80 percent of consumers know their credit history affects the rate at which they can finance an automobile.   

While this is good news, according to a report released last month by the Consumer Federation of America (CFA) in partnership with Washington Mutual (WaMu), consumers mistakenly believe that factors other than how you’ve handled previous credit affects your credit score. 

For example, according to the CFA and WaMu survey, 74 percent of consumers incorrectly believe that scores are influenced by income; 41 percent believe age affects credit scores; and 19 percent even cited ethnicity as factor that affects a credit score.

Got the Car Loan Blues?

AskPatty.com, Inc. has announced the launch of the  AskPatty.com  Auto Finance Center, a new service that assists women in financing their next purchase for a new or used car, in partnership with myAutoloan.com. Women can speed up the dealership auto financing process with this new service and have the opportunity to receive up to 4 online loan approvals prior to stepping foot into the dealership.  The AskPatty.com Auto Finance Center application and loan offer process is easy, fast and secure, while simplifying the auto financing process.        Applicants can apply for New Car Loans, Used car Loans, Auto Refinancing, Private Party car loans and Lease Buyout’s on the AskPatty.com Auto Finance Center. Loan Amount Calculator

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Tips on How To Refinance Your Used Car Loan

Save Money With Used Car Refinance

When interest rates go down, you might think about refinancing your home loan. Did you know you can also refinance your used car loan. Refinancing your used car loan can save you money.

Used Car Loan Refinance: How Much Can it Save?

Some car lenders have finance rates as high as 18%. By simply refinancing your high interest rate used car loan, you can save thousands of dollars over the life of your loan. When you refinance your used car loan, you save in the long run and potentially lower your monthly by hundreds of dollars.

By simply taking a few minutes to fill out our online used car loan refinance form, you can potentially save yourself thousands of dollars. The AskPatty finance center for women will take your refinance application, and provide you with up to four used car loan refinance offers. You get to pick the lowest rate available.

10 Great Tips on how to Navigate Through the Car Loan Maze

Maqueda "Maq" Hooks, Maq as known by friends and co-workers, is a recent graduate of Jones International University. Her knowledge comes mainly from a mother’s love of knowledge, research and school as well as a father who has worked in automotive industry for over 30 yrs.

Maq offers 10 great tips on how to navigate through the car loan maze.

1.    It’s easy to persuade yourself to spend more than you planned once you get to the dealership, so plan ahead. Make a budget with all your income and expenses and consider what monthly installments you will be able to afford and are willing to pay. According to this information you’ll be able to select which payment schedule best suits your needs when you get loan quotes from each of the lenders. Set a reasonable price limit ahead of time and stick to it. (All of your car-related expenses, including gasoline, should cost a maximum of 20 percent of your monthly net income.)

How High Was Your Auto Loan Quote?

Did you apply for an auto loan and get a quote that was higher than you expected? Your high auto loan quote might be because you paid some bills late or just let your credit score slip. You may be frustrated with the auto loan quote because you know you have the income to make your payments and just need another chance.  Getting updated auto loan quote information is easier than you think.  Instead of applying four separate times for a quote, using financing sites like myAutoloan.com actually do all the work for you and with only one application.

Shopping Online for an Auto Loan Quote

In today's competitive environment lenders are looking for new loans. You can get auto loan quotes both online and offline. Remember, just because you apply, there is no obligation to accept the auto loan quote after you are approved. Lenders base their auto loan quotes based on many different criteria. Some lenders only consider making loans to those with perfect or near perfect credit. Some lenders focus on the "middle market" or those customers that have a few late payments. Other lenders focus on customers that have had or still have impaired credit. So, no matter what your credit circumstances are, chances are very good that you can find an auto loan quote that is right for you.

Car Dealer Financing 101 - Glossary of Terms

One of the most overwhelming tasks of buying that new dream car is arranging the car loan or auto financing. Knowing the vocabulary and terms will help you make the right decision on the best loan that  is exactly right for your needs.

AskPatty can help speed the process with our new online car loan service.

Get pre-qualifed for your new or used car loan now, right here on AskPatty!

Go here to apply for up to four loans and get pre-approved in minutes!

This great glossary of terms comes from AWARE and will help you communicate better when you get to the finance office at the dealership:

Auto Loan Financing Glossary of Terms:

Amount Financed
The dollar amount of the credit that is provided to the buyer.

Agreed-Upon Selling  Price
The dollar amount the buyer agrees to pay the dealer for the  vehicle

Amount Financed
The dollar amount of the credit that is provided to the buyer.

AskPatty.com Partners With myAutoloan.com to provide Women Online Auto Finance options and convenience

AskPatty.com, Inc. has announced the launch of the  AskPatty.com  Auto Finance Center, a new service that assists women in financing their next purchase for a new or used car, in partnership with myAutoloan.com.  Women can speed up the dealership auto financing process with this new service and have the opportunity to receive up to 4 online loan approvals prior to stepping foot into the dealership.  The AskPatty.com Auto Finance Center application and loan offer process is easy, fast and secure, while simplifying the auto financing process.

Applicants can apply for New Car Loans, Used car Loans, Auto Refinancing, Private Party car loans and Lease Buyout’s on the AskPatty.com Auto Finance Center located at http://www.askpatty.com.

Where Can I Blab About My Car? CarBlabber on AskPatty.com!

Is your car sexy? What does your car mean to you? Do you love or hate your car? Is your car a fashion statement or a pile of junk? Ask Patty has just launched our new beta version social network for women to blog about their cars. That’s right. We want you to tell us all about your car and any car you’ve ever owned. You can tell us all the good, bad, and the ugly – we want to hear it all on CarBlabber.

And we are launching our CarBlabber Beta version of this ultra special, incredibly fun social network during the BlogHer conference in Chicago for all you lovely and talented blogging women. Register now to become a member of this unique social network about YOUR cars.

So what can you do at CarBlabber?
    *Create a personal car profile
    *Write car reviews of any car you’ve ever owned or driven or heck, even seen!
    * Connect with other women who love or hate the same cars as you
    *Read reviews of cars written by women JUST like you before you buy your next car
    *Join car clubs online and find other car friends!
    *Create your own social network by founding a car club of your very own
    *Rate your cars and comment on others reviews

Basically it’s about sharing and connecting in ways you can’t do anywhere else. Learn from other women like you what turns them on and turns them off about their cars. And share your own story.

Oh, and did we forget to mention that we will be giving away some goodies to some of you women who create profiles and reviews? Hmmm, well stay tuned to see what rewards you just might earn (check out the picture to the left). And trust us, they’re GOOD.

Go to: www.askpatty.com/carblabber and register now! 
(It’s 100% free) … go on, do it now…we you know you want to blab about your car!

When It Comes To Auto Loans, How Much Do You Put Down?

Provided by AOL Autos
We all know that a new car loses a significant amount of its value when you drive it off the lot. That's where the down payment -- the amount of cash you bring to the purchase -- comes in.

The down payment can demonstrate to a lender that you're willing to make an investment in the deal, and perhaps gain a more favorable interest rate. It also helps take some of the shock out of the instant depreciation so you're not "upside down'' on your loan for years and years.

Upside down
What's it mean to be "upside down?'' You learned in an earlier chapter that it's the industry term for a car owner who owes more on a vehicle than it's worth. Almost every new car -- and most used-cars -- transactions involve a period of being upside down on the loan. After all, if you put 10 or even 20 percent down on a car and it depreciates 25 percent in the first three months, you're upside down, at least for awhile.

But where it gets worrisome is when the owner remains upside down three and even four years into a loan. You've also seen earlier how some folks make matters worse by rolling the old car's remaining debt into a new loan. They're forced to pay interest and make payments on a car they don't even own anymore. And tacking the extra debt on their new auto loan puts them upside down all over again.

What Everyone Ought to Know About Financing A Vehicle

Financing a vehicle is a scary thing. We’ve all been through it at one time or another, or at least have looked into it. Before you head to your next dealership, here’s a little financing quiz for you.

For how many months should you finance your next vehicle?
a) 36 Months
b) 48 Months
c) 60 Months
d) 72 Months

What’s your answer? If you picked any of them, you’d be wrong. At least according to Women’s Wall Street. According to their recent article, “Self Worth vs. Net Worth,” if you didn’t pay cash for the car you just bought, you likely can’t afford it at all. Here’s the skinny: The longer the term of your loan, the more likely it is you will owe more on the vehicle than what it is worth at any one time.

We all know the second you drive that car off the lot that the value plummets. Well, if you have only paid six months on a loan (remember, it was financed at full value, not at what the value was when you drove it home that same day), and that car gets stolen… then where are you financially? You are now “upside down” in that loan because you owe more than what that car is worth.

According to that same article at Women’s Wall Street, if you plan to keep that car until the payments are completely paid off, then alright, keep going. Finance your pretty little heart out! But if you swap out cars as often as the protagonist in their example story, Georgia (who buys a new BMW X5 only one year after buying her previous car), then you will find yourself in a heap of trouble one day.

Spend Your Tax Refund on One of Your Biggest Investments: Maintaining Present Vehicle May Be Key to Long-Term Financial Happiness

Reprinted from CarCare.org
How will you spend your tax refund? Flat-screen TV? IPod? Clothes? The Car Care Council has a better idea for your money: spend it on your second biggest investment, your car.

"Whether it's an oil change, replacing brakes or new belts and hoses, that periodic repair bill is a drop in the bucket compared to monthly payments on a new car," said Rich White, executive director of the Car Care Council. "The bottom line is that a properly maintained vehicle is safer, more dependable, more fuel efficient, less polluting and more valuable. The smartest way to get a solid return on investment is to keep your car through what we call the 'Cinderella Era'. It's that period of time after the payoff when your car is still in great shape and needs only modest repairs."

The Car Care Council estimates that more than $62 billion in vehicle maintenance and repair is not performed every year, evidence that there is considerably more that consumers should be doing to protect their automotive investment.

"We advise our clients that if they want a 10-percent increase on their investments every year they need to cut down on their expenses," said Terry Mulcahy, vice president of investments for R.W. Baird in Mequon, Wis. "A new automobile is for most people their second biggest investment next to a home, so a great way to save money and increase financial assets is to hang onto their current vehicle rather than buy a new one every few years. Budgeting for and doing preventative maintenance on your car is one of the best ways to cut your costs and keep your car."

Reprinted from CarCare.org

Lease Versus Purchase?

Hello Ladies,

Many of us our leery of leasing vehicles because you are pretty much “renting” a vehicle that you will most likely never own. Believe me, I was too. That is, until I read this article by Jeff Morrill of Planet Subaru. We printed it on our July 2006 issue of AutoSuccess and it gave me a new outlook on leasing my next vehicle. I thought everyone would appreciate the informative advantages of leasing your next car. It also describes the objections to a lease and the ways to overcome them. Please check it out and let me know if you have any questions.

Download click_here_for_article_text.pdf

Make it a great day!

Warm Regards,

Susan

How to finance a car, find insurance, or a dealer!

Next to a home, an auto is one of the biggest purchases most of us will  ever  make.  Women need to be armed with an arsenal of information before  making  purchase decisions. When is it better to lease, purchase? 

Karen Payton

VP, On Wheels Inc.