The Risks Associated With Long-Term Car Loans

Long term auto loans – those 72 months or longer – are becoming increasingly popular, since they, according to a recent USA Today report, “seem more affordable”. In early March, a whopping 33.1% of all loans were long term.

Even though long term auto loans appear at the outset to be a better deal, these “leave buyers with higher overall costs for the car and more time owing more than it is worth.”

NBC News hinted that this statistic is actually a trend that can inflate to become a bubble that “sounds suspiciously familiar,” referencing the auto market before the 2008 economic recession.

Using a recent report from Standard & Poor, NBC News said that since the average new car is unaffordable for the average American family in 24 of the 25 largest U.S. metro areas, the number of loans packaged into securities with borrowers more than a month behind on their payments rose to its highest in three years.

A better low-risk option than a long-term auto loan – and that’s actually statistically cheaper in the long run – is to lease a vehicle instead. It’s evident that the market realizes it’s true, as leasing is currently setting new record highs in numbers.

And an even cheaper option than leasing a vehicle off a lot is to take over a lease on Swapalease.com. Since the vehicle is currently under contract, often you don’t have to pay a down payment or other taxes and fees. All you pay is a simple and low monthly payment.

For example, three hot commodity cars that are currently up for a takeover include:

  • 2014 Mercedes Benz C-Class $247 per month/27 months
  • 2012 Cadillac CTS $314 per month/19 months
  • 2014 BMW 5 Series $359 per month/36 months

Each of these carry little financial risk, compared to a long-term auto lease. In a lease environment you don’t have to worry about the long-term depreciation on the vehicle – something that hurts owners that eventually wish to sell or trade their vehicle. Plus, they will free you up from a long-term commitment. If you want a breath of fresh air or the newest technology, you can do so much quicker with a lease versus an auto loan.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

The Safest Cars To Lease

According to a recent Swapalease.com survey, safety ranks as one of the highest factors in wanting to get a new car. Because only with a lease can you consistently upgrade to the newest and safest technology in the most affordable way possible. If you purchase a vehicle, you’ll be in a long term agreement with a car that will, with time, no longer be the safest vehicle on the market.

What’s worse, if you lock yourself in a car for longer than five years you run the risk of encountering even more safety issues as cars undergo wear and tear over time.

A recent report found 24 of the safest 2013-2014 cars, from airbags to brakes. They include:

On Swapalease.com, you can find each of the models for an affordable price and a short-term agreement, all with no down payment requirements:

  • Ford Fusion $274 per month/27 months
  • Hyundai Elantra $179/36 months
  • Honda Accord $159/36 months
  • Nissan Altima $239/10 months
  • Volkswagen Passat $195/26 months

Not only can you get the safest cars on the market by simply paying a low monthly payment; by the time newer safety features arrive on the market, you’ll be available to upgrade into newer technology. People enjoy leasing an electric vehicle for this reason, and a growing number of drivers interested in an always-on warranty are taking advantage of leasing as well.

For more information on finding the best car lease deal on safe cars or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Several Misconceptions Of Car Leasing

If you’re new to car leasing, you could have several misconceptions about leasing a vehicle. Here’s a few of the biggest ones:

  • Leasing a new car costs more than purchasing it. With a leased car, you pay a down payment, along with low monthly payments until your lease is up. For example, a 2013 Honda Accord EX, costs $24,500. You can get it from the dealer at $334 per month. For the standard 36 month lease, that’s a total of $12,024. Even after insurance, a down payment and the monthly fees, it’s much cheaper than purchasing.
  • There’s equity in buying, but nothing at the end of the lease. Not the case. According to Best Buy Auto: “Leasing offers the potential for cash value at the end of its term as well: by keeping your equity out of the vehicle. The cash flow derived from no or a lower down payment and lower lease payments during the life of the lease, together with interest, can produce an amount roughly equal to the used vehicle’s value at the end of a conventional loan.”
  • Dealerships tack on additional expenses at the end of a lease.  If you abide by your contract, no extra fees are added on for excess mileage or wear/tear.
  • Only businesses get a tax break with a leased car. According to Kiplinger, Tax laws do allow businesses to “deduct monthly leasing payments as an expense. But individuals get a tax break, too.” In most states, you pay sales tax only on the monthly payments, not the vehicle price. For example, in a Nissan Altima, you’d owe taxes on about $8,264 in payments rather than the $21,403 vehicle price.
  • Once you sign a lease contract, you can’t get out of it. This is why online lease marketplaces like Swapalease.com exist. Swapalease.com allows you to take over someone else’s lease. Or if you want to get rid of your lease, you can give the responsibilities – and the contract – to someone else on the online marketplace.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Should You Lease Your First Car?

Your first car is exciting. No longer do you have to depend on others for transportation.

And it’s even more exciting if you get a deal that doesn’t empty your entire bank account.

But therein lies the issue: How can you get your first quality car for an affordable price?

It all depends upon your motive. If you’re looking to purchase a car, the price will be difficult to digest, particularly when you factor in the interest rate and down payment. And if you secure a long-term loan, now offered for 7-8 years, you’ll be paying for an eternity without any meaningful position of equity.

But if you’re looking for a short term, affordable option with flexibility, leasing is the right way to go.

Since you only use the car for a certain amount of months, you’re free to peruse the newest technology upgrades that other models will come out with. And if you find something that you don’t like about the car months after you agree to terms, you’re not locked in should you consider transferring the lease to someone else.

If you want your new car to be an affordable and reliable lease deal, take a look at Swapalease.com. The online leasing marketplace has thousands of vehicles that are currently in a lease agreement. You can shop for exactly the right car for you by taking over an existing lease and simply finishing out the remainder of the contract – almost like an extended test drive. More than often, when you take over a vehicle from Swapalease.com, you don’t have to pay the extra fees, down payments and taxes that dealerships require. You only pay a low, monthly payment.

A perfect idea to make your first car exciting.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

The Always-On Car Warranty

According to a recent Swapalease.com survey, safety ranks as one of the highest factors in wanting to get a new car. Because only with a lease can you consistently upgrade to the newest and safest technology. If you purchase a vehicle, you’ll be in a long-term agreement with a car that will, over time, compromise the integrity of important safety features due to wear and tear.

A recent report found twenty-four of the safest 2013-2014 cars, from airbags to brakes. They include:

Where does leasing fit into the conversation? With a lease you can get a different car every few years. This is important because recent Swapalease.com studies show that “always having a car under warranty” is one of the biggest reasons people look to change their vehicle. Gone are the days when drivers wanted to fix their own car, and with the sharp increase of vehicle recalls as of late, drivers are even more concerned about the safety of their vehicle. On Swapalease.com, you can find each of the above-mentioned models for a cheap price and a short term agreement:

  • Ford Fusion $274 per month/27 months
  • Hyundai Elantra $179/36 months
  • Honda Accord $159/36 months
  • Nissan Altima $239/10 months
  • Volkswagen Passat $195/26 months

Not only can you get the safest cars on the market by simply paying a cheap monthly payment; by the time newer safety features arrive on the market, you’ll be looking for a new car.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Should You Arrange Financing At The Dealership?

Financing your new lease or purchase at a dealership can be confusing. It can be difficult to understand in the moment, and you don’t want to agree to something that you don’t entirely understand.

Because of the hefty amount of verbiage involved with lease financing, let’s simply break it down piece by piece to understand it further. To start, if you don’t have cash to pay for a vehicle, financing for a lease is how you pay for the vehicle throughout the duration of the lease contract.

But should you finance your lease at the dealership, or should you arrange for an outside lender to finance your lease?

Pros of financing at the dealership is that it can be convenient, and sometimes quicker than doing it elsewhere. What’s more, dealers will often provide additional incentives if you go with their own finance arm – called a captive. However, cons include high pressure, and that loans are sometimes front loaded, meaning that payments are made up of more interest in the beginning of the loan than toward the end.

Before you arrive at the dealership, be prepared. Try to have a loan agreement already in mind. According to JD Power and Associates: “by doing so, the consumer has already determined what his or her credit rating is, has qualified for a loan at an acceptable interest rate, and knows what he or she can afford in terms of purchase price and a monthly payment. Having financing arranged in advance also encourages the dealer to come to the bargaining table with their best financing offer, saving both parties time and possible frustration.” This also includes searching for alternative financing options.

At the dealership, realize the correlation between the monthly payment and the interest rate. As mentioned in the cons, a car’s monthly payment can be low at the front end of the agreement, but it may have a higher interest rate. Also realize that the financial institution will give the dealer a small percentage of the interest charged for the loan, which means the dealer earns additional profit on the sale of the lease. Naturally, this means the salesman is also looking for a deal that benefits him as well.

With vehicles on Swapalease.com, many leases skip the confusion on the front end and only need a monthly payment.  Because the vehicles on the online marketplace are currently in lease, other fees such as down payments are not required. Only a cheap, short-term monthly payment.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

When’s The Best Time To Lease A Car?

In order to get the right deal for a leased car, everything must flow together at the right time: The down payment; the MSRP; the salesman’s pitch; your spouse’s opinion, etc. If one item or number is a little off, the entire deal can evaporate quickly. Ever been there?

Another factor to add to the list that can make or break a deal is timing.

When you lease a car, the majority of salesmen must answer for quotas by moving a specified amount of inventory and making a certain amount of revenue per month. So if you arrive at a dealership late in the month, odds are you’re more likely to cut a better deal. There’s been great debate around this issue, but it’s also been explored heavily by the experts.

Another pivotal time to peruse vehicles is during the end of the car’s model year, because at that point, salesmen are looking to get the new car models on the lot and will be looking to shed last year’s inventory – another great opportunity to get a cheap lease.

Yet another time to look at leases comes at the end of the calendar year because salesmen will be looking to meet their end-of-year quotas and will also want to get rid of the cars currently on the lot in order to make room for new models. Plus, holiday deals will play a role, as well. A great formula for a cheap lease deal.

However, if you don’t want to wait until the end of the year or the end of the month, and if you don’t want to play negotiation mind games with car salesmen, you can find cheap lease deals on Swapalease.com. With the online car leasing marketplace, you only have to pay a low monthly payment since you’re taking over an existing lease from someone else – the down payment and other fees have already been paid. And that’s 365 days a year.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

The New Math Of Leasing Is Like The Old Math

The Wall Street Journal reported last week that automobile makers are attempting to make “leasing a new car more appealing by lowering the cost of monthly payments, which in turn creates significant savings for consumers over the course of a typical three-year contract.”

Called the New Math of Car Leasing, the article goes on to mention that leasing has grown significantly in popularity because of the price, accounting for 26% of the car sales in 2013  (up 10% from 2003) and that 28% of the car sales for the first two months of 2014 are leases.

What it boils down to is something Swapalease.com has known for a while now. Car shoppers want an attractive payment, and they’re willing to make this commitment because, like a cell phone, they realize a car now comes with a fixed payment.

What does this mean? It means whether you lease or buy, odds are you’ll always have a monthly payment. People who lease are fine with this because they pay a low monthly payment, while drivers that buy are now financing very long terms, which means they’re making payments for many years. Either way, a monthly payment is happening so why not make the lowest payment possible via lease.

The main difference at Swapalease.com? No down payment and much shorter terms than what you’ll find at a dealership – two very attractive items to many car shoppers today. There’s no new math involved.

For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Tax Benefits For Business Car Leasing

The deadline for taxes – April 15 – is about a month away. And companies that have leased vehicles for their business needs – a popular move since many dealerships, banks and credit unions don’t offer financing to businesses – are seeing the benefits during recent number-crunching to meet that deadline.

With leased business vehicles, owners can deduct the expenses of the lease and the operating expenses based on the percentage of business use. For example, if your yearly lease payment is $4,200 ($350 per month) and your business use percentage is 80%, you can deduct a whopping $3,360 on your tax return for that year.

The IRS allows such in two ways:

Using the standard mileage rate. The former rate is said to be the preferred, easier method, especially if you do relatively little business driving. First, find out if you qualify. Then you can calculate the fixed and operating costs of your vehicle by multiplying the number of business miles traveled during the year by the business standard mileage rate. This rate is set annually by the IRS. For 2013, the rate was 56.5 cents per mile, and in 2014 that rate is 56 cents per mile.

Using the actual expenses method.  Your deductions are heavily dependent on the records you have in order to calculate those deductions, including gas, oil, tires, insurance, etc. Although this method is more thorough, you may qualify for a larger deduction.

Keep in mind that the tax you pay on the monthly payment is deductible as well.

Assuming a business lease on Swapalease.com will not only grant you these tax benefits, but will also leave necessary cash that would be spent on a purchase. Simply visit the online car lease marketplace and begin looking for a vehicle that fits your business needs.

For more information on car leasing for business purposes or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Car Lease Deals For Grads

Not only is graduation an enthralling day for the graduates; it’s also a lifetime highlight for family members. A graduation gift is a cultural norm, but graduates most likely won’t be coveting a gift that is typical. Entertainment systems, airline tickets, new phones – all great gift ideas, but not necessarily what your grad actually needs. Instead, your grad will be coveting something that can calm their anxiety regarding the unemployment rate among college graduates, which analysts say won’t be much lower from last year’s 50%.

US News surveyed 178 universities and found that nearly 48% of college students don’t have a vehicle on campus. Thus, when May approaches, a massive crop of graduates don’t have an easy way to commute to job interviews.  But a lease from Swapalease.com is a gift that not only is creative; it’s also useful and needed.

Five current deals that parents and other friends and family can take advantage of for their college grad include:

•    2013 Smart Fortwo $87/month for 16 months
•    2012 VW Golf $171/month for 19 Months
•    2014 Ford Focus $139/month 24
•    2012 Jeep Patriot $187/month for 12
•    2014 Hyundai Elantra $179/month for 36 months

Since the supply of Swapalease.com’s marketplace is produced by consumers, there are more endless options for car models, prices, and locations. And not only is the supply vast; the prices are much cheaper than many leases on the car lot. Since you can take over someone’s lease, this often results in only paying the monthly payment, not the down payment or other fees. The lease is also a short-term commitment, which opens up graduates to explore new vehicles with up to date technology and safety upgrades after the lease term is up.
These cheap lease deals are an investment into your graduate’s future, because it puts wheels underneath their aspirations. What could be a better gift than that?

For more information on finding the right car lease deal for your grad, or to learn more about how to take over someone’s car lease, call 866-SWAPNOW.