Auto leasing moves up a gear

Canadian auto dealers are reporting their highest level of lease transactions since July, suggesting the possibility automakers are inching back into leasing after pulling back last summer.

Retailers surveyed said 22% of the deals they struck with customers on new cars during the first 11 days in January were leases, according to data released yesterday by J. D. Power & Associates.

Leases dropped down to 17% of Canadian transactions in November after representing more than 40% of the market for several years.

"It's possible we're seeing some loosening up of the [credit] situation, illustrated by a move back to lease," J. D. Power analyst Tom Libby said yesterday on a conference call discussing the Canadian auto market.

Automaker captive finance companies like Chrysler Financial are also slowly clawing back their share of the retail auto finance business in Canada, Mr. Libby said.

General Motors Corp. and Chrysler LLC pulled back on subsidized leasing in July after credit market pressures and declining residual values for trucks and SUVs in particular made car leasing less profitable for them.

The two automakers told their dealers to steer their customers to finance or cash transactions instead.

Chrysler has blamed its inability to secure lease funding in the capital markets as one reason for its double-digit sales decline in November and December.

"We need that lease funding available in the marketplace to allow consumers to be able to purchase vehicles," Reid Bigland, Chrysler Canada president, said in an interview.

The U. S. Treasury aimed yesterday to help Chrysler do just that, approving a US$1.5-billion loan to Chrysler Financial so it can extend new loans to car buyers. GMAC LLC, the auto lender tied to GM, became a bank holding company and won US$6-billion in support from Washington last month.

The Canadian government pledged similar help in December but has yet to say how it will do so.

J. D. Power is forecasting new vehicle sales of between 1.4 million and 1.6 million units in Canada this year. The annual sales rate in 2008's fourth quarter was 1.48 million units.

"Any recovery is likely to be quite slow," said J. D. Power economist Robert Schnorbus. "There is still lots of risk, lots of uncertainty.

nvanpraet@nationalpost.com

Source: Financial Post

Car Lease Takeover

Car lease takeover is basically assuming someone else's leased car under the same terms that were originally agreed upon. Assuming someone else's car lease is good if you will only need the car for a short period of time. Since a part of the lease period is already used up, car lease takeover or car lease assumption is usually good for about 1 to 2 years.

A takeover car lease seems to be a win-win situation both for the original lessee and the takeover lessee. The new lessee must make sure that he can handle the monthly payments since leasing companies will not grant a lease to anyone who has a bad credit. If the new lessee fails to meet payments, the company may (or will) hold the original lessee responsible.

When taking over a car lease, it is very important to check for wear and tear. You should take a mechanic at the dealers and must check the current condition of the car; each and every component. If you, as a takeover lessee, miss anything - you will be responsible for the repair and the maintenance. If there are excess in wear-and-tear, you can deposit a claim amount and the original lessee will get the amount refunded. Also, you should ask the original lessee the records (a.k.a receipts) of all the maintenance and repair works done to the car.

Mileage is always an issue in car leasing since a lessee is only given a limited annual mileage. Before assuming over the car lease, the new lessee must check how many miles are left and if it is good enough since an excess in mileage will mean an additional charge at the end of the term. In order to secure more protection, the takeover lessee must take an added insurance for the vehicle. Check whether gap insurance is in effect, as it would protect the vehicle from accidents and thefts.

BMW uses Internet Protocol underhood

There's a variety of flavors of in-car networking standards that corral the large number of embedded computers and nodes present in the modern automobile. BMW Research and Technology, an R&D division of BMW, has found Internet Protocol up to the tasks that the other standards currently perform. BMW engineers used a standard PC and connected it up to the expected gear -- ECUs, engine and chassis control systems, even a multimedia server for the entertainment system. The reasoning behind using IP versus the more specialized protocols is to anticipate future needs and requirements, as well as reducing costs. Costs drop because fewer specialized components are needed, and the new version of IPv6 is even better than the more than fine performance from IPv4. It's a little spooky to think that your fly-by-wire throttle could be trying to chat with the engine using the same technology that we use to send instant messages, but IP proved itself capable enough even for critical safety functions. The research is ongoing, but BMW's work bodes well for adding functionality and decreasing costs. Adding aftermarket goodies should be fairly painless and service shops will also have an easier time of it by going with a more universal language. Imagine surfing the web with iDrive, though. Blech.

Source: AutoBlog

Buying a Car Privately

Buying a car can be an exciting experience but try not to make a on the spot decision that you may regret later.

Check the car price

Make sure to look at various cars and visit several car dealerships to compare prices and quality. Check the newspapers, but bear in mind that nearly everyone advertises their car for more than its worth. The car price is often negotiable.

Have the car checked out mechanically

A roadworthy certificate or pink slip is no foolproof indicator of reliability. Make sure you get a thorough mechanical inspection. When you finally make an offer, make it conditional on a positive independent report from your local motoring association or mechanic.

Test drive the car

Even if the car is mechanically sound, you should make sure that it feels right for you before committing to it. Take it for a test drive. This is your chance to discover whether you really feel comfortable driving it.

Check for prior ownership

Make sure that the car is on clear title. This means that the person who says they own the car, actually owns the car. If the car has been stolen or is under finance, you might lose it along with your money to the previous owner or the previous finance company.

Has the car been used as security for a car loan?

You should have a revs check done to see if the car is being used as security for somebody elses car loan. There is nothing wrong with that but you need to make sure the finance company will be paid out.

Compare the numbers

Compare the vehicle identification number (VIN) and engine number in the car with the registration certificates numbers. A popular scam is to get legitimate identification papers from a vehicle that has been written off and attach them to a stolen vehicle. You could end up with the worthless title to a wreck and lose the new car you thought you were buying.

Other things to keep in mind when buying a car privately

• You have no right to a refund if you change your mind. There is no cooling off period
• You don't get a warranty so you will be unable to have the seller fix anything that may be wrong once you've driven away
• Always check the credentials of your seller. Don't be afraid at the very least to ask them for a license as proof of identity
• Make sure the car has a roadworthy certificate where this is necessary and allow for any additional repairs to the car in your budget
• Make your offer in writing. It only needs to be a note but it may help avoid disagreements later
• Make sure you get a receipt from a private seller

Source: http://www.1300carlease.com.au/

Vauxhall’s New Insigna Ecoflex

More and more economical and environment friendly autos are coming out in the market, last October 21 at the Paris Motor show, the all new Vauxhall Insignia Ecoflex was introduced. It has been designed to combine efficiency and low carbon emissions with a powerful engine capable of delivering a superb driving experience.

Compared to competitors’ cars with similar fuel consumption, it is clear why the Vauxhall Insignia ecoFLEX watchwords are economy without compromise. The Insignia ecoFLEX sprints from zero to 62mph in 9.5 seconds and reaches a top speed of up to 135mph. Ensuring excellent pulling power even at low rpm, the maximum torque of 350Nm is available from 1750rpm, and can be temporarily increased for 15 seconds to 380Nm via an ‘over boost’ function. It has a new 2.0 liter common-rail four cylinder engine that uses the latest clean-tech technology to maintain low carbon emissions over the engine's lifetime.

It's will be formally launched in 2009 and will be available in hatchback and saloon versions. it will surely be a popular choice for people looking to lease cars that are both economical and environment friendly.

Below is a video of the Vaxhaul Insigna.

Luxury Car Leasing

Luxury car leasing is an option for many - both for big time and small time companies. Companies today are constantly searching for new ways of limiting their expenses. It is a necessary adjustment to increased competition in most markets. Most of them are also on the hunt for new ways to reduce their tax payments as well as eliminating assets not associated with the core of their business. Such adjustments are always made and sometimes this helps other businesses flourish while others end up with serious challenges to cope with. Things like the above mentioned are the main reasons why leasing exists.

Luxury cars are costly. If you expect that the average salary of a recent engineering graduate can go from $40,000 to $50,000 per year, then you can understand the real dimension of the value of a luxury automobile. Yet, the fact that it is so expensive shouldn't be a reason why you can't purchase one. Actually, through car leasing you can drive around a brand new car even without the dreaded huge monthly payments.

In a luxury vehicle leasing you won't have to pay for the total value of the car. The monthly payments can be as low as half of what you pay on a typical loan since you are only paying for a pre-determined value of the vehicle. As soon as the lease is finished you can chose between paying the difference (the part of it's price that hasn't depreciated), or let the leasing company keep it.

It's like renting, only you get the first option to purchase the vehicle. One of the greatest advantage of car leasing is that you have the option to invest your unused money (or half of the money you saved because you opt to lease a car instead of buying it) and make it work for you for lets say 3 years (2 to 3 years is the normal lease term).

Always Read the Fine Print

It is advised that you always read the fine print when you enter into a contract. Sit down and read the entire car leasing contract very carefully and if there are parts that you're confused about don't hesitate to ask questions. Make things clear upfront. Here is an example; in the car leasing industry every leased vehicle comes with its' own insurance. Just so that you know, many leasing companies make their main profit from the insurance.

Car Lease Calculators

Most people who are interested in leasing a car end up searching the Internet for help. What they find varies from sites trying to sell your name to sites that will calculate your lease payment for you. While all look good on the surface, you need to watch out and make sure that the information given to you is not misleading.

Look for a site that is reputable and that has a contact info so that you could easily make an inquiry. As with the real world, when you are going to depend on information, especially information that you rely on for your next car lease, you want to make sure the person giving it to you has your best interest in mind.

The second thing to look for is a calculator where you can enter your figures directly, and you don't rely on estimates of a car value. Most calculators now a days will allow you to select the make and model of the car, but not actually put the MSRP as given to you by the dealer. They usually use a value of the car based on popular configurations. You need to make sure you have total control over the calculations from start to finish.

The third thing to look out for is a lease calculator that is located on a manufacturer or dealer website. Although they're not totally there to rip you off, they never allow you to enter the real MSRP or Cap Cost on your car, and will always lean on the high side, so that they can get as much from you as possible.

Using these tips can save you money every month you have your car lease. You can get a lot of information online so that you can get the best out of your car lease.