|
How often is your inventory updated?
We update our inventory on all of our sites on a daily basis.
I found a car I want. What do I do?
Each used and new car listed on Road2Autos.com and on Road2 make web sites have
a special form that enables you to contact the seller directly.
Is Road2Autos free?
Yes! Road2Autos is completely free with no obligation. We simply provide a way for
you to get information you need to buy your nextnew or used car.
How do loans and leases differ?
When you take out a loan, all of the money used to pay it off applies to your eventual
ownership of the vehicle. The initial down payment and principal on the loan cover
the total cost of the purchase. Lease payments, however, apply only to the use of
the vehicle. The total sum of payments covers the vehicle's depreciation over the
time you drive it and is usually less than the outright price of the vehicle.
When is ownership transferred?
When paid in full, a loan terminates and you assume ownership. Your bank sends you
the title that had been held while the loan maintained an outstanding balance. When
a lease period ends you forfeit the vehicle to the lessor, unless the lessor offers
to sell the vehicle afterwards. During the entire lease period the lessor maintains
ownership and simply allows you to use the car. Ownership is only transferred if
you chose to buy the vehicle after the lease terminates.
How are monthly lease rates determined?
In formulating a monthly payment structure, a lessor is primarily concerned with
the extent to which the vehicle will depreciate throughout the lease and the cost
of borrowing money to finance the car during that period.
Three key elements:
First, the adjusted capitalized cost is determined. This figure represents the real
purchase price after elements such as the down payment, incentive discount and trade-in
credit are deducted from the capitalized (actual) cost, while any fees or charges
are added.
Second, the residual value, or estimated value of the vehicle at the end of the
lease, is determined and then subtracted from the adjusted capitalized cost to yield
a depreciation figure. The residual value depends on the length of the agreement,
expected mileage and make/model of the vehicle.
Finally, a lessor assesses the money factor, a number that correlates with the cost
of borrowing money during the lease period.
While these terms may seem unfamiliar, the Federal Reserve Board requires dealers
to publicize all leases' down payment amounts, lengths, residual values and interest
rates. See your dealer for details.
What factors determine the purchase price at the end of a lease?
Most leases rely exclusively on the residual value in determining the end of term
purchase price. These closed-end deals require you to pay the fixed residual amount
regardless of the actual market price. Open-end leases work differently in that
the actual market value helps determine the purchase price. As a customer you are
responsible for any difference between the residual and actual value when buying
outright.
How are loan rates determined?
The size of monthly loan payments depends on the amount borrowed, the length of
the loan, the interest rate and other factors such as your credit history. Paying
more money initially lowers the principal of the loan, thus reducing individual
payments. At any period during the loan you may opt to pay off the principal in
its entirety, at which point the title of the vehicle is transferred to you. Down
payment amounts may range between 10 to 20% of the vehicle's total cost, although
some purchases require no down payment. A typical loan period is five years with
an annual percentage rate around 8%. Some manufacturers offer lower rates, but be
sure to investigate any associated conditions or clauses by seeing your dealer for
details.
Are loans available for used vehicles?
Yes, although they function somewhat differently from new car loans. A down payment
of 20% or more is often required and the interest rate can be a point or two higher.
Understandably, banks are more hesitant to loan money for used car purchases, as
they would rather own a newer car if the borrower defaults. However, the market
is full of good used vehicles, many of which are created by short term leasing.
Can extra fees and charges be financed?
Yes, registration, taxes, extended service plans and other supplemental charges
may be included in the financing plan.
Which option makes the most sense?
The answer to this question depends on how you plan to use the vehicle. If you like
the idea of driving a more expensive vehicle for a smaller monthly payment, leasing
is a great option. However, if eventually owning the car is important, financing
with a loan is the way to go.
What are the restrictions of driving a leased vehicle?
Annual mileage restrictions are a major limitation for customers who choose to lease.
Lessors want their vehicles returned in saleable low-mileage conditions, so they
place mileage caps on them. A typical yearly figure is between 12,000 and 15,000
miles. Beyond the established limit, fees accrue on a per-mileage basis. If most
of your driving is local, leasing may make sense. If you consistently tack on 500
or more miles a week, look into a loan.
Why lease?
Leasing ensures that you'll always drive a late-model vehicle, won't have to pay
for warranty-covered repairs and won't have to bother with re-selling at the end.
What are your rights and responsibilities?
When you lease a vehicle, you have the right to use it for an agreed-upon number
of months and miles, turn it in at lease-end, pay any end-of-lease fees and charges,
and "walk away", take advantage of any warranties, recalls, or other services that
apply to the vehicle.buy the vehicle if you have a purchase option.
You may be responsible for excess mileage charges when you return the vehicle. Your
lease agreement will tell you how many miles you can drive before you must pay for
extra miles and how much the per-mile charge will be. Excessive wear charges when
you return the vehicle. The standards for excessive wear, such as for body damage
or worn tires, are in your lease agreement. Substantial payments if you end the
lease early. The earlier you end the lease, the greater these charges are likely
to be.
|