The biggest question most people have when they are are looking for a new car is whether to lease or purchase the car. Both approaches have distinct advantages and disadvantages, and it's worth taking the time to understand the differences before making a decision.

Many people believe that purchasing the car is better than leasing the car because then they actually own the car. This is actually only true if you buy the car in cash. If you are financing the car, the title is actually held by whoever is administrating your loan. Once you successfully pay off the loan, then you truly own the car. Owning a car has the advantage that it's really yours and you can do whatever you want with it. It also has the downsides of needing to deal with all the maintenance and any problems that may come up along the way.

When you purchase a new car, it tends to depreciate very quickly for a first few years that you own it. This means that if you were to try to resell your car a few weeks after buying it new, it's now a used car and already worth thousands of dollars less than you paid for it. The cost of owning your car includes of course the gas and maintenance, but also the value it loses as you drive it. The amount you paid for your car less the amount that you eventually sell it for is the total cost of owning your car.

Leasing a car is different. Typically you agree to a lease which is several years long. You make an upfront payment in the lease and then make a lease payment every several months. There are probably mileage restrictions on the lease so if you drive more than a certain amount, you may need to pay an additional fee. When the lease expires, you have a couple of options. One, you can return the car. You don't have any debt associated with the car, but you also don't have any equity in the car. You can also choose to negotiate to purchase the car.


Jim Tonkins writes about a patio chaise lounge on http://patiochaiselounge.net.

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SAVING MONEY WHEN BUYING A CAR

It is very easy to spend more money than you should when buying any make or model of new or used car. We have outlined some general tips and information that will help you save when buying a pre-owned vehicle.
-- Buying a car makes more sense than leasing one. Think about it, when your lease is done, you don't own anything. On the contrary, at the conclusion of your car loan, you own the vehicle you just financed.
-- Try going to a dealership to buy a car during bad weather. Because of the poor weather, business will be slow, making it more likely that you will get a good deal on your purchase.
-- If you are going to utilize financing for your vehicle purchase, make sure you get a copy of your credit report before you apply. This will help ensure that the reported information is accurate and up-to-date, getting the most optimal interest rates and loan terms possible. If there is erroneous information listed, you will need to remove and/or dispute them.
-- Avoid becoming upside-down on your car loan by leaving a deposit of no less than 20% and by utilizing financing for no more than four years. Being up-side-down means you will owe more for your car than it is worth.
-- If you are going to trading-in an old vehicle, make sure you know the value of the car before entering the dealership. Otherwise, you won't know if you are being offered much less than the car is worth.
-- Shop around for the best deal possible. Once you get a quote from one dealer, go a few others. Be patient. Letting the dealers know that you have been in touch with multiple dealerships will likely result in you being offered better car price quotes.
-- Do some research to see if your regional incentives are available in your area for the vehicle that you are buying.
-- Never buy on impulse!
-- When negotiating, make sure you negotiate financing terms, final price and the trade-in value separately. Otherwise, it is likely that the dealer will look to combine these transactions together.
-- If you are at all uncomfortable with any aspect of your transaction, whether it be the way you are being treated, the terms you are being offered, the sale price, etc. be prepared to walk out of the dealership and bring your business elsewhere.
-- Obtain a pre-approval for an auto loan prior to your car shopping. This will allow you to try and receive better interest rates for dealer direct financing.
-- Instead of trading-in your vehicle, try and sell it privately. Selling it privately will get you more money than if you trade it in.
-- Save money on car loan interest by making two loan payment every month.
-- Purchasing a used car that is 1 or 2 years old will save you money while getting you a vehicle with many of the same features of a new car that is the same model.
-- Try and buy a car that is coming off a lease. These types of cars are sold as certified pre-owned vehicles and come with great warranty coverage.

Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can apply for a bad credit auto loan for any make or model of new or used car.

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