Car Leasing: What’s That?

Car leasing is a notable term when looking for a car, but there is no simple equation for the components of the process. There are many different types of leases available, so it is important to recognize the differences and similarities between each option. Here are the few different types of car leases:.

Open-End Leases

An Open-End lease is not common. It is used primarily by businesses or those who travel extremely frequently. Consumers should expect:

  • Higher payments per month,
  • Payment for depreciation if the car is under market value
  • If the car does not depreciate, consumers may not need to pay additional fees
  • Quicker depreciation due to excessive wear or mileage
  • No mileage restrictions

Closed-End Leases

This is the most common lease that consumers go for. At the end of the lease, they can “walk away.” It entails the usual:

  • Good credit allows for the chance of lower monthly payments
  • Agreeing to the fixed number of years lease contract states
  • Keeping up with the required maintenance of the car
  • Staying within predetermined mileage
  • The car will be returned to the dealer at the end of the lease.

“Option to Buy” Lease

This leasing option, particularly for new car leases, gives you the option to purchase the car at the end of the lease. This is enticing for those looking to purchase vehicles in the future. Here are tips to utilize towards the end of this lease:

  • When going over pricing, prices may be easily negotiable. This price should be listed in the contract before signing. Note if the negotiated price is higher or lower than the car’s market value.
  •  At the end of the lease, consumers can either pay cash to buy the car or finance the buyout price
    1. If one decides to finance, they should be sure to negotiate interest rates.

Single-Payment Lease

Single-Payment leases heavily rely on cash.

  • You can pay the entire sum of the lease when you sign this lease. This helps get rid of monthly payments and can possibly help eliminate most of the monthly interests.
    1. Paying a large amount of money immediately can help consumers get a better deal on the purchase price.
  • Finance rates will be lower
  • The chances of getting approved for this lease is better
  • With this lease, all the costs will be presented upfront, in the contract, so that purchasers can see all the fees and other costs.

Subvented Lease

Subvented leases are unique. These are available because automakers are striving to get their inventory moving, and this is offered by finance companies associated with a specific manufacturer. With this lease:

  •  It may only be available to those with great to excellent credit
  • If individuals qualify, it can save them a lot of money
  • Interest rates are lower
  • Estimated depreciation is lower, which can lead to lower monthly payments.

If you come across any leasing questions, feel free to visit our Swapalease.com FAQ’s page for more information.

The Most Stolen Cars of 2019

In the United States, According to the National Insurance Crime Bureau, there is 1 auto theft every 6.5 minutes. If you live in Albuquerque, New Mexico, that number is a lot higher. Motor vehicle theft connotes the criminal act of stealing or attempting to steal a motor vehicle. With auto theft remaining a prevalent issue in the United States for years, it is important to note which vehicles are most prone to theft and if you happen to be driving one of them.

  1. Honda Civic
  2. Honda Accord
  3. Full-size Ford Pickup
  4. Full-size Chevrolet Pickup
  5. Toyota Camry
  6. Nissan Altima
  7. Toyota Corolla
  8. Full-size GMC Pickup
  9. Full-size Dodge Pickup
  10. Jeep Cherokee

Notably, Ford Pickups have a reputation of easiness to break into. These trucks are highly wanted in the Black Market. Also, the Jeep Cherokee is the only SUV on the list, but it has been popular for decades for durability and longevity.

To help prevent auto theft, always be sure to care for your personal belongings and get in the habit of locking doors each time you exit the vehicle.  Auto-theft is unfortunately not on the decline, but hopefully, with care and effort, will be in the future.

Some other preventative measures you can take is to remove your keys from the vehicle when not in use, not leaving a spare key near your vehicle, closing the windows, parking in well lit areas, installing a tracking system and installing an audible alarm or anti-theft device.

Ford’s Contribution to Fighting COVID-19

In the middle of April, Ford and 3M announced an effort to manufacture PAPR, a form of protective equipment for individuals to be used by medical professionals. The collaboration was originally announced at the end of March.

The CDC’s National Institute for Occupational Safety and Health approved the work, and Ford and 3M officially started shipping their respiration equipment. Recently, Ford stated that it would take less than 40 days to produce and deliver gear. It is aiming to create more than 100,000 units.

PAPR stands for “powered air-purifying respirators.” It includes a face-shield and a hood to allow for maximum protection for health care workers. The device uses F-150’s fans, found in the vehicle’s seat cooling system, to supply air for up to eight hours. Ford is additionally producing reusable gowns, made from airbag equipment found in the vehicles. The company continues to produce transparent face shields.

David Claeys, president of two hospitals near Detroit relayed, “The need to protect our medical teams is heightened – Ford’s gown production could not come at a better time during this crisis. Our front line health care workers are working around the clock to treat COVID-19 patients and we need the necessary supplies to support them.”

The production was set to begin on May 6th, 2020. The production base is Ford’s Vreeland plant in Flat Rock, Michigan.

The Ford Director of Global Body Exterior and Interior Engineering, Marcy Fisher, said “By working collaboratively with 3M to quickly combine more than 100 years of Ford manufacturing and engineering expertise with personal protection equipment design and expertise, we’re getting much-needed technology into the hands of frontline medical workers to help when they need it most.”

Additionally, those interested in contributing to this effort may submit personal information at www.fordnewideas.com.

May’s Possible Reopening of the US Auto Industry

Auto-developments and major changes in auto technology have seemingly come to a halt in the past few months as workers and manufacturers struggle to balance safety and labor. However, recently, automakers have begun an upward trend toward reopening production. Developers are finding ways for temperature checks, gloves, and masks to attribute to a healthy work environment. Automakers aspire to support production while maintaining safety standards.

President of the United Auto Workers Local 862 in Kentucky, Todd Dunn, said “I think a lot of a lot of Americans are ready to get our country back on target,” he says. “But … we’ve got to be able to put in some levels of precaution that we didn’t have before.”

Much anxiety runs through processing plants, as when workers remain in such close quarters, a spread of coronavirus is likely. The largest reasons for a stall in auto production are Mexico and Detroit’s lockdowns. Mexico’s stay at home order is applicable until at least mid-May, and the Detroit auto industry claims it cannot reopen until Mexico does. This is because about 40% of the country’s auto parts that are imported come from Mexico.

Companies such as Ford Motor Co. and General Motors have halted production for months but may reopen by the end of May. This is dependent on the production of necessary parts from prime auto-part production centers like Mexico and Canada, in addition to the impending decisions of the United States on what to keep closed and what to open once again.

“We’re not going to just flip a switch and everything’s going to be back to normal,” Sean Suggs, the president of a Toyota Corolla building plant, says.

He continued, “There is no going back to the normal way. We simply can’t operate the way we operated before COVID-19.”

Companies like General Motors state ongoing communication with the federal government and note that a mass reopening will be probable only when the United States, Mexico, and other key components of production are capable of moving forward in a steady, health-conscious fashion. For now, the reopening has proved meticulous and slow.