Monthly Archives: January 2014

Is Sign And Drive The Right Car Deal For You?

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Sign and Drive. We’ve all seen the television commercials for Volkswagen and other dealers marketing this opportunity. But what does it honestly mean? The conceptual idea sounds practical when you first hear it, but there’s more than signing the dotted line and driving away in the sunset with the car of your dreams. In the end, is this the right car deal for you and your wallet?

What Exactly Does Sign and Drive Mean? Sign and drive is a car leasing option offered by lenders to potential buyers. The concept behind a ‘Sign and Drive’ option is: you find the car you want to lease, go through the normal car leasing process, but in the end there isn’t a down payment. Buyers can become very disillusioned by this option.

What You Should Know. If you believe you can walk into your neighborhood dealership and sign and drive the vehicle of your choice, you may want to think twice. This kind of opportunity isn’t open to anyone and there are several stipulations hiding behind the name. The majority of people may not even qualify for the opportunity. Sign and drive deals require impressive credit scores. For those who get a chance to sign the paper, you will see under the fine print that usually not everyone qualifies. Typically, buyers must qualify for the offer and finance the vehicle through a certain financial institution.

Credit is analyzed differently in a car lease scenario, and once you pass the initial credit approval process your credit is analyzed a second time to determine what payment you qualify for.

Another facet to take notice of is your monthly payments. With no down payment in a ‘Sign and Drive’, the overall price of the vehicle will be made up in the amount your monthly payments turn out to be, compared to the price they’d be if you placed a down payment. For example, let’s say you pay $300 on a monthly sign and drive lease, but with a $2,000 down payment on a normal lease, your monthly payments may come out closer to $240.

Lastly, will the manufacturer behind Sign and Drive deals allow you to transfer your lease if your automotive needs change in the middle of your term? Always check with the manufacturer ahead of time to ensure you can complete a full lease transfer.

In conclusion, simply do your homework. Most advertisements on vehicles tend to be to go to be true. Read the fine print and don’t sign on the dotted line unless you’re well aware of the stipulations behind the deal.

For more information on sign and drive lease programs or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

Car Leasing Versus Car Buying

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So you’re in the market for a new vehicle, but not sure whether you should buy a car or lease a car. It’s difficult to determine which route best suites you financially and individually. Leasing has once again become very popular, with nearly 30% of all new-car sales being sold as car lease deals. This number might actually be higher if more people were familiar with the ins and outs of car leasing.

Several different elements factor into the decision between leasing versus buying a car. To many car shoppers, it seems more appealing to lease. Some of the main reasons to lease are:

  • The extent of a car lease is short, which means you can get in and out of vehicle within two or three years.
  • Monthly lease payments are typically lower than loan payments.
  • If a problem arises with the vehicle, you just bring the car into the dealership for maintenance.

The majority of car shoppers are aware of the buying process, baring certain circumstances. Start by determining which vehicle you’re interested in purchasing and do your homework and research on not only the car, but your financial situation as well. Negotiate with more than one dealer until one offers you a price within your range. Finally, choose whether you’re going to work with a credit union or financing through the dealer or another third party. Some of the main reasons to buy are:

  • At the end of the loan, you fully own the title of the vehicle.
  • There are no caps or restrictions on the amount of miles that can be driven on the vehicle.
  • Once you’ve paid off the loan completely, you can continue driving the car with no monthly payments.

Before going out and leasing or buying a new car, do your research. Know what you can afford and be aware of your financial situation. Do you like to have a different car every few years? Can you make monthly payments for a newly purchased car? Do you drive extended distances every so often? Evaluate your circumstances to determine which option best fits you.

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

Is A Lease Pull Ahead Program Right For You?

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2013 was dubbed the Year Of The Car Lease, which means 2014 might be known for the Year Of The Car Lease Pull Ahead. What is a lease “pull ahead” program and how might it impact you as a driver?

Scot Hall, Executive Vice President of Swapalease.com, offers the following insight.

Car lease pull ahead programs are used by manufacturers and dealers to entice leasing drivers into turning in their leases early in order to “re-lease” another vehicle. It’s a forgiveness opportunity on what’s remaining on the contract, usually offered to lessees with fewer than five months remaining on the contract.

Manufacturers such as BMW, Ford and Lincoln utilized lease pull ahead programs in 2013, and several other manufacturers, such as GM, may be planning aggressive pull ahead programs for car lease finance strategies in 2014. These programs are beneficial to the industry as they help turn new inventory and elevate brand retention among consumers. Swapalease.com believes there will be roughly 20% more lease pull ahead program options in 2014, particularly as a result of an expected three million leases scheduled for return in the coming year.

“Swapalease.com is an advocate of lease pull ahead programs, and the company’s ‘lease transfer’ marketplace pioneered the flexible lease contract option nearly fifteen years ago,” said Scot Hall, Executive Vice President of Swapalease.com. “Today, thousands of lease drivers use the service as a way to escape their current contract in order to immediately turn around and shop for a different vehicle that meets their new automotive needs.”

Should consumers take advantage of a lease pull ahead program? There are three primary reasons why drivers might want to consider:

You’re ready for a new car now. You have four months remaining on your lease but you’d like to shop for a different car immediately. You’ve enjoyed the time you spent with your current car, but you started getting the itch to shop around and would love to make a switch before one more day passes.

You want to stay with the same brand. Some people fall in love with a certain brand and stay within that brand’s family, car after car. You might be one of these people. If so, a lease pull ahead program would benefit you because manufacturers love repeat business. If you take advantage of a lease pull ahead program, it’s a win-win situation, particularly since car makers can make an attractive offer to pull you into a new car lease.

You want to stick with leasing. Whether your current car was your first lease or your sixth lease, if you love to have a different car every few years then a lease pull ahead program allows you to maintain this lifestyle at an even quicker pace. Best of all, you can make a switch without breaking your contract.

Of course, if you have more than six months remaining on your lease you most likely won’t qualify for a pull ahead program. However, Swapalease.com offers similar car lease transfer benefits and allows people to escape their contract by transferring it over to a third party, all without harm to your credit.

Here are the top ten manufacturers Swapalease.com believes will be aggressive with lease pull ahead programs in 2014:

Buick

Chevrolet

BMW

Mercedes-Benz

Ford

Audi

Volkswagen

Infiniti

Toyota

Honda

For more information on lease pull ahead programs or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.

How To Improve Your Credit Score When Car Lease Shopping

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How To Improve Your Credit Score When Car Lease Shopping

The difficult part about your credit score isn’t necessarily maintaining the score itself; it’s bringing it back up when it drops. Unfortunately, this is something that many people have fallen victim to. We all know the importance of having a solid credit score: qualifying for a new vehicle lease, low interest rates on loans and credit cards or even the ability to improve your chances at landing the right job.

Following these tips could help increase your score and improve your chances for a successful car lease assumption.

Review Your Credit For Inaccuracies. Sometimes errors can take place on your credit report. Check your recent history for any possible errors in the reporting. If you find any, work with your credit bureau for a resolution.

Pay Off Collection Accounts. These accounts that haven’t been paid are sent off to collections and immediately affect your credit score. These accounts become a priority once you can pay them off; the sooner they are paid off, the better.

Pay Off Past Due Accounts. Paying accounts on time, such as bills, have the most impact on you credit score. Almost half of your credit score is created by your payments and payment schedule. The later the payment hasn’t been fulfilled, the greater affect it has on your credit score.

Good Faith Adjustments. Let’s say you usually make your payments on time, but there were a few payments that ended up being late. Or there was a financial occurrence that deemed one of your payments to become late, yet has been handled with. You can reach out and contact the creditor asking a courtesy adjustment.

Debt-To-Credit Improvement. Debt-to-credit ratio is how much you owe versus how much credit you have available. There are a few ways to fix this problem. You could transfer debt to a personal installment loan, pay the revolving debt first or move around credit card balances. One of the most common remedies is simply asking for a credit increase.

Use An Older Card. Longer credit histories with favorable payment schedules are always viewed as a positive. Try to identify one of your older lines of credit and make on-time payments for new purchases.

When you apply for a car lease transfer, the bank holding the car lease must review and approve you as the incoming lessee. Following these steps will go a long way toward repairing your credit so you can qualify for the right car lease.

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