Be Wary of Long-Term Auto Loans

When buying a new vehicle, most consumers will take out a loan in order to make the car more affordable. Recently, however, consumers have been taking out longer loans to have lower monthly payments. The problem is that taking out a five- or six-year loan may not be the best option because it doesn’t necessarily mean that that vehicle is a financially feasible option.

A recent article in The Buffalo News mentioned how drivers are so concerned about lower monthly payments they are not taking the value of the car itself into consideration. Having low monthly payments is great for consumers but since cars are lasting longer, taking out a five- or six-year loan may mean that your finances can take a big hit when it comes to normal wear and tear on the car.

What’s more, the interest rate buyers pay on longer term loans is also something to take into consideration. Though lower monthly payments may seem more attractive, the amount of interest rate you end up paying on a longer-term loan is not always worth it. Consumers should follow the 20/4/10 rule. Put down at least 20%, take out a loan no longer than 4 years and keep monthly cost of the car under 10% of total gross income.

For those who choose not to purchase a car because they don’t want to be in the same vehicle for the term of their loan, offers drivers the chance to take over the remainder of a lease. With no down payment required, taking over a car lease is the short-commitment you’re looking for.

Because cars are lasting longer you might be stuck in your make and model for a few years but offers you the chance to drive a different, newer car every few months. For drivers looking to get out of their lease early, listing it on allows you to walk away with no hassle. So what are you waiting for?

Headquartered in Cincinnati, Ohio, is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. For more information about or how to exit your lease early, call 866-SWAPNOW or visit

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 exist. 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 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, 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 at 866-SWAPNOW.

5 Great Car Lease Deals In March

You’ve heard it before: the biggest perk of leasing is the extremely low monthly payment. So let’s put it to the test. Let’s see if there is truth behind the notion. The lowest monthly payments in March currently include:

  • Smart Car Pure Coupe – $99/month, $1,393 due at signing.
  • Nissan Versa Sedan – $129/month, $1,999 due at signing.
  • Chevy Cruze – $149/month, $1,629 due at signing.
  • Volkswagen Jetta – $149 per month for 36 months with $2,349 due at signing.
  • Kia Rio – $159/month, $1,999 due at signing.

Keep in mind you can always check out for great deals on new leases. Sometimes things can be too good to be true. But the notion that leasing does yield a low monthly payment is redefining the phrase, because it is both good and true.

Isn’t it often rude to bargain for a cheaper rate on a sale price? Not in this industry, since has even lower payments than these…low payments. Since thousands swap their leases with someone else on, down payment is zero, making the vehicles that much more appealing. Five attractive bargains from, based on their current monthly payment, are:

  • 2013 Audi A4 – $67/month for 17 months
  • 2013 Scion IQ – $87/month for 31 months
  • 2013 Smart – $114/month for 21 months
  • 2014 Chevy Equinox $199/month for 24 months
  • 2014 Hyundai Accent $169/month for 36 months

But not only is the monthly payment enticing. Don’t forget to factor in that the car will usually be covered by warranty throughout the duration of the lease, and that dealers are more than willing to make a lease agreement deals because it creates a high customer return rate. Plus, you have no long term commitment. If you decide you want an upgrade, it’s not a far-fetched idea.

And you can turn your far-fetched hope of scoring a low monthly payment into a reality, because the options are wide-open in leasing marketplaces like

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

Is A Lease Pull Ahead Program Right For You?

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, 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. 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.

“ 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 “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, 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 believes will be aggressive with lease pull ahead programs in 2014:











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