Many car companies offer special lease deals on selected models and styles each month. Some are very affordable at less than $200 a month.
This month, we list over 50 leases for $199 or less. The list gets larger every month as car manufacturers increasingly work to attract new customers by offering low monthly car costs.
These are usually genuinely good deals that are worth considering as long as you like the models and styles being promoted. The deals usually only last for one month, require a down payment, and have a specific mileage allowance — usually 1000 miles per month, average. Be aware that these deals may vary by region of the country.
Most lease deals are for 24 or 36 month terms. At the end of the lease you can simply return the car, or you can purchase it for the guaranteed purchase price stated in your lease contract. In some cases, you may have equity in the car (it’s worth more than the purchase price) such that it makes sense to buy it and sell it for a profit, or use it as a trade-in for another new vehicle.
Here are the cheapest car lease deals being offered at this time:
Continue reading Cheapest Car Leases – $199 or Less in 2017
Buying a car for the first time can be an overwhelming experience.
There’s so much to know and how to know what’s important.
With this article, we’ll take some of the mystery away from the car buying process.
We’ll focus on the car itself in this article because we’ve already covered topics such as new versus used, financing, loans, best first cars, and more. Many new car buyers don’t completely understand how things like engine power, miles per gallon, safety equipment, and reliability factor into making decisions about what to buy. Incredibly, some novice buyers put more importance on color as a decision factor than almost everything else.
When buying a car, the old adage that “you get what you pay for” usually applies. A less expensive car will more than likely have lower engine power, fewer safety features, and lower reliability than cars that cost more. But how important are those things?
Continue reading Your First Car – What’s Important?
One of the best ways to get the best prices on new cars is to take advantage of monthly sales incentives such as rebates, bonus discounts, and special leases sponsored by car manufacturers through dealers (see Best Car Deals for details).
These special deals are almost always good deals, much better than customers could negotiate for themselves.
However, the catch is that those incentives are only good on selected vehicle models and styles, and only for a limited time. If the particular brand, model, and style that you want is not one of those with incentives offers this month, you are back to square one — negotiating for deals the old fashion way.
A new company has come along that changes all that, and may change how we buy cars in the future.
TrueCar answers the question, “What should I pay for my car?” Even if you are a shrewd negotiator, you have to know your target price — a reasonable offer based on real information. You also would benefit by knowing what other people are paying for the same car, same model, same style that you want. With that knowledge, you will know the price you should be aiming at.
Continue reading Best Prices on New Cars – The Best Way
What is the car trade-in process? Do I lose money by trading?
Here is how a car trade works.
Car dealers buy your old car from you and give you credit toward the price of a new car. The trade-in credit is like a down payment and reduces the price of your new car, making your monthly payments smaller.
The dealer then puts your old car on his used-car lot to sell, or he sends it to a dealer car auction where another dealer will buy it to put on his own used-car lot.
Contrary to some belief, dealers don’t simply “trade” or swap one car for another. It’s two separate transactions rolled into one contract.
Dealers make a lot of profit on selling used cars they’ve taken as trade-in. They pay the trading customer a low wholesale price, and sell the car for a higher retail price. That’s how they make their money and stay in business. Continue reading How Does a Car Trade-In Work?
How much down payment do I need for my car loan?
Until recent times, it was standard for car dealers and finance companies to require at least 20% down payment on the purchase of a car. It was for a good reason.
Because cars depreciate in value from the moment they are driven off a dealer’s lot, a down payment helps offset that rapid decrease in value, which may keep the loan from becoming “upside down.” It also protects the loan company or bank because, if they have to repossess the vehicle, they have a smaller risk of losing money. It also protects the car buyer from financial loss if the car is stolen or totaled and the insurance money isn’t sufficient to cover the loan.
Things are different now
Auto manufacturers and dealers are now very competitive and business must be fought for. They are willing to take risks that were unheard of just a few years ago. In many cases, down payment requirements have been reduced or eliminated altogether, primarily for customers with good credit. Continue reading Do I Need a Down Payment on a Car?
What to Pay for a Car — What’s a Good Price?
Here’s how to determine a fair price for brand new cars (see below for used-car pricing).
What to Pay For a New Car
All new cars have a window sticker that displays the manufacturer’s suggested retail price (MSRP). It may also include destination charges, dealer-installed option prices, and other miscellaneous charges. The total of these charges is the price you would pay for that vehicle, less sales tax, without any discounts or rebates.
All these charges but destination charge can be negotiated. Manaufacturers charge dealers this fee for vehicle delivery, and dealers simply pass it along to customers without markup. It cannot be eliminated from the cost of a car.
Price can be negotiated for most vehicles. Unless the vehicle is a hot seller and in short demand, it’s usually possible to get dealers to discount the MSRP. But, how much? What’s the best price I can expect?
Here’s your strategy for negotiating price. Continue reading How Much Should I Pay for a Car?
Your First Car – Making Your Decision
Most of us get our first car as teenagers. It’s the car we’ll always remember.
Let’s take a look at some of the important questions you’ll want to consider when deciding about what you’ll buy as your first car, how you’ll pay for it, and how to go about the purchase.
How much can you spend?
If cost is not important and you can choose practically any car you want, we’ll get to you later. However, most teens have restrictions on how much they can spend. It might be that your parents are buying and have set a price limit, or that you have your own budget and a limited income.
Since most teens start driving before they become of legal age to sign a car loan contract, it’s typical to pay cash for their first car. The cash can come from savings, gifts from relatives, or a loan from parents — or a combination. Usually, it’s not enough money for a brand new car, but possibly sufficient for a good used car.
The amount of money you have to spend on your first car will directly affect your choices. Lots of money, lots of choices. Little money, fewer choices. In general, the more money you spend, the better the car — better condition, better mileage, better performance, better safety, and better reliability.
Continue reading Deciding on Your First Car
Should I keep my old car and fix it up, or buy a new car?
Expressed another way, the question is this: Is it smarter, more practical, and more economical for me to keep and fix my old car than to buy another car, new or used?
This is always a tough one to answer. Generally, it’s going to be better to fix up an old car than buy a new car every five years or so.
However, the real answer depends on your particular circumstances. Here are some tips that will help you make a decision
How old is your vehicle?
Older, high-mileage vehicles are more likely than newer vehicles to have problems. There are exceptions, of course. Older vehicles also tend to have more serious problems, such as engine and transmission failures, that are expensive to repair.
Continue reading Fix My Old Car or Buy A New Car?
Better to Buy Pre-Owned Car, or New Car?
First time car buyers have a choice of buying a brand new car, or buying a used car. Which is better?
There are advantages and disadvantages to either choice. Most people would rather have a brand new car with its new-car smell and latest style, but there are reasons that a new car might not be the best choice. Let’s take a look at the pros and cons of buying new and buying used.
Advantages of Buying New Car
- You get a brand new car with new-car feel and smell
- You get the latest style and technology
- You get the latest safety equipment
- You get a full manufacturer’s warranty
- You get Lemon Law protection
- You get lowest loan interest rates, if you qualify
- You get the option to lease
- You may get special manufacturer-sponsored pricing and financing Continue reading Your First Car – New or Used?
First-time car buyers are often unaware of everything that’s involved in the process. It’s not surprising because it’s not simple and not like buying anything else that we normally buy, even a house.
We’ll explain it all in this quick guide to buying a car. Further details can be found in the various articles posted on this web site.
1. Decide on a Car
Choosing a car for the first time can be a bewildering experience because there so many choices — old cars with lots of miles on them, newer cars with better safety and tech equipment, small cars, compact cars, sedans, coupes, large cars and SUVs, sports cars , fast cars, fuel-efficient cars — not to mention all the different makes, models, and styles that are available.
Decide what kind of car you want or need and what’s important to you. Do you want good looks, safety, good gas mileage or high performance, automatic or manual transmission, 2-wheel drive or 4-wheel (for winter weather), sporty 2-door coupe or 4-door sedan or convertible, passenger car or roomy SUV or minivan? Do you want good reliability and dependability, and low insurance cost? What is is your budget and how much can you afford, either as a cash purchase or as monthly loan payments?
Continue reading Quick Guide to Buying a Car
New Car, First Car
If you’ve decided that your first car will be a brand new car, there are things you need to know about the buying and financing process that makes it different from buying a used car.
New cars – only from dealers
All new cars must be purchased from state-licensed and manufacturer-authorized new-car dealers. It’s the law. It’s the only way you can buy a new car.
If a car has never been titled or registered, it’s considered to be a new car. Even if you initiate your purchase through an Internet car buying service, or through a buying service at warehouse stores such as Sam’s Club, the car actually comes from a local new-car dealer. Continue reading How to Buy a New Car
Even many experienced car buyers don’t know about the “secret” factory-to-dealer rebates given to dealers by car manufacturers.
Car companies often select certain models and styles for these rebates, and the selection can change from month to month.
Dealers can use factory-to-dealer cash (sometimes called “marketing support”) in almost any way they choose but most pass it along to customers in the form of price discounts. Some dealers might advertise the low prices (not the rebates themselves) or simply offer a discount to customers during the buying process. He may choose to give all or just some of the total rebate.
Most customers are not aware of which vehicles have factory-to-dealer rebates, or the amounts. Therefore, it is difficult to factor in those discounts in the negotiating process. However, our sister web site, Best Car Deals, provides such information. Some of these rebates are very large and represent a significant discount off of sticker price. This is particularly true for last year’s leftover models that dealers must sell in order to make room for this year’s incoming models.
If a dealer gets a factory rebate on a particular model and gives it to customers as a price discount, he still makes his usual profit on that car, even though customers may be getting a great deal. Smart customers will expect the dealer to contribute some of his usual profit as an additional discount — which makes an even better deal. In many cases, customers can buy a car for less than dealer invoice price, which is only possible if the car manufacturer is helping with the deal.
In summary, factory-to-dealer rebates can be a large factor in making new cars — especially first cars — more affordable. Look for vehicles with the largest factory-to-dealer rebates.
You can get free price quotes for any vehicle at Edmunds.com. The prices you get will contain any current price discounts and manufacturer incentives that are available.
As this is being written, this year, 2011, has become the best time to buy a new car in years. And 2012 looks to be even better.
In normal years, we would tell you that the best time to buy a car is when sales are slow at the end of the month, end or the year, or during vacation season. We would tell you that you might still have to negotiate your prices because dealers aren’t just going to give you a good deal because they like you.
BUT……..things are much different now. Sales have been slow for over a year and are still slow right now. As a result, we are now seeing some of the biggest and best car incentives on new cars that we’ve seen in years. Nearly every car manufacturer is now offering a combination of large factory-to-customer rebates, low-interest loan deals, 0% APR loans (even on long 72 month loans), special lease deals, free maintenance, and “secret” factory-to-dealer rebates that dealers usually give to customers.
Why has 2011 become such a good time to buy a car? Continue reading Good Time to Buy Car for Best Deals
Car manufacturers use incentives to make their new cars more affordable during limited-time promotions.
The most common incentive is a direct to customer rebate, although there can also be other incentives such as low-interest loans, 0% APR loans, special car lease deals, and “hidden” factory-to-dealer cash.
Incentive programs vary from month to month depending on which models and styles manufacturers feel need sales “help”. Slow selling models or last-year’s leftover vehicles typically get the best rebates and incentives. However, it not ususual for a brand new model to get good rebates or other incentives.
A rebate is a credit that you receive when you buy a new car during the promotional period. It shows up on your paperwork the same as a down payment, although the money comes from the manufacturer’s pocket, not the dealer’s, and is like a gift to you that reduces the amount you pay for your car.
However, a rebate is not a price discount. It doesn’t change the selling price of the car (although it changes what you pay). Rebates and discounts are NOT the same, although both reduce the amount you pay for a car. Let’s explain. Continue reading Rebates for Cheap New Cars
There’s one kind of car buying customer that sales people just love. They are “payment buyers.”
A car salesperson’s job is to sell cars — and make maximum profit for his dealership. The way to make maximum profit is by selling at the highest possible prices and including as many “add-on” extra items or services as possible.
Some customers are an easy sale but are difficult to make a big profit from. Others are easy on both counts. The latter of these two types are the kind of customers that car salespeople love.
A salesperson’s dream customer is one who has done little or no research about cars they might be interested in, understands almost nothing about the car buying process, knows little about car pricing, has few negotiating skills, but most of all, wants to negotiate monthly payments, and only monthly payments. These customers are called “payment buyers.”
Continue reading Are You a Car Salesman’s Dream Customer?
The best selling cars are those that car buyers like best and buy most often. Given that most of those buyers do at least some research before they make a decision, they choose their cars wisely and make informed decisions. If other buyers don’t want to do the research and make their decisions based on what other buyers are choosing, that’s okay. They still end up getting great cars.
Although we will be talking about best-selling new cars here, the same cars are generally the best-selling used cars as well. Furthermore, we won’t talk about trucks, but suffice it to say that the Ford F150 pickup has been the best-selling vehicle of any type for years.
Before we present our list, let’s take a moment to discuss why some cars are super-popular and others not so much.
Generally, the best-selling cars are those that have the best combination of all the things that buyers are looking for — the optimal “package.” Smart buyers want good value, a reasonable price, quality construction, high reliability, good performance, a comfortable drive, adequate space for passengers and cargo, good styling, good fuel economy, modern features, an excellent safety rating, and maybe some luxury features. They also want a car that is reasonably inexpensive to insure, maintain, and repair.
Continue reading Hottest Cars – What Cars are Best Sellers?
According to questions I see posted on Yahoo Answers, there are a huge number of first car buyers out there who have somehow found exactly the WRONG way to buy a car. They then look for help AFTER they realize their mistake. It’s nearly always too late by that time.
Here’s how NOT to buy a car:
Leave a deposit with a seller or dealer for a car you are not absolutely sure you’re going to buy. The problem is that you may not be able to get your deposit back if you change your mind, unless there is a clear written document that states that you’ll get your deposit refunded and under what conditions. In the worst case scenario, the seller sells the car to someone else AND keeps your deposit. Don’t leave deposits unless you absolutely must.
Buy a used car without having it inspected by a professional mechanic before the purchase. Used cars are sold “as-is” which means you can’t get your money back if you find the car has problems later. There are no “right-of-return” or used-car lemon laws to protect you, even if you feel the seller or dealer committed fraud. You can’t rely on a seller’s statement that a car “runs fine” or “has no problems.” A mechanic’s inspection will cost $75-$125 but can prevent you from making a multi-thousand dollar mistake.
Continue reading How to Really Screw Up a Car Purchase
Many people know they need/want a new car but struggle with what car to buy. There are so many choices.
How does a person go about deciding what car is best for them?
There are actually a number of different approaches that be taken in making a decision.
One way is to simply do detailed research. This can take a lot of time and work depending how much you can narrow down your possible choice before you start. For example if you already know you want a Nissan, it’s just a matter of researching the various Nissan models, styles, options, specifications, and prices to find the one that best fits your needs. One of the best ways to do it is to visit the car company website. In this example, it would be www.nissanusa.com.
Another way is to start with a popular make and model as a first consideration — such as a Honda Accord or Toyota Camry — and decide what you don’t like or what you want different about those vehicles. Then research other makes and models for those characteristics. This is the approach we suggest in our article, What Car Should I Buy?
Continue reading What Car to Buy?
When buying a car, everyone knows you don’t pay the asking price or sticker price. Right?
The process of buying a car in the United States is unusual in that it’s one of the very few times when we actually negotiate or “haggle” over prices. We don’t do it when buying a refrigerator at Sears, or a TV at BestBuy, or a watermelon at the supermarket. With cars, it’s more like haggling over an old lamp at a garage sale or, if we lived in the Middle East, getting a price on a donkey.
Although buyer-seller negotiating is common in many other countries, most people in the U.S. find it uncomfortable and awkward. Since we don’t do it very often, we’re not very skilled at it. Many people hate it.
Negotiating New-Car Prices
All new cars have standard manufacturer-suggested-retail-prices (MSRP) — retail prices — “sticker” prices that are exactly the same for the same car, same model, same equipment everywhere in the U.S.. Including the word “suggested” suggests that the prices are not necessarily the prices we have to pay. And dealers encourage us to expect less-than-sticker prices by their ads and TV commercials — “We beat anyone’s prices,” or “Less than invoice prices,” or “Lowest prices in town.”
Continue reading Negotiate Car Price
Everyone buying a new car wants to get a bargain and a great deal. So where can those deals be found?
Although we’ll be primarily discussing brand new cars here, we can make some comments on used cars, if that’s the direction you think you want to go.
Used Car Deals
Finding a great deal on a used car is a bit more tricky than finding a new-car deal. That’s because used cars are, well, used. No two are alike. Even used cars of the same year, same brand, same model, and same equipment can have different mileage, different problems, may have been driven and maintained differently, may have been wrecked (or not), and may have very different prices for these and other assorted reasons. When you find a used car at a bargain price, it might be for a good reason — or the buyer may simply be desperate — or it could be a common scam, especially if bought online. Therefore, it takes much more care when buying used.
Continue reading Where Are the Best Car Deals?