Quick Cash Auto Blog

With the rising cost of gasoline, consumers have been adamant that lawmakers do something to correct this crisis. Well, it appears that the government has decided to take action with the preponderance of radio spots that criticize the Obama administration and their plans for fuel economy.

These ads were controversial to begin with, but as negotiations have been ongoing, most of the major players worried that they would only hinder this process rather than get their point across. The automakers actually had voted to cancel them, but less than 24 hours later, the messages were running on the radio.

This happened Thursday after a midnight oil burning session on Wednesday that had planned to relegate these ads to the scrap heap in Michigan and other states that have direct ties to the auto industry. However, the Alliance of Automobile Manufacturers decided to reverse their decision and go ahead with the campaign after much deliberation.

Source on the inside have indicated that this was not a unanimous decision to get rid of this campaign as several representatives of the auto companies as well as the Alliance board itself were not all notified of this decision. This lead to some heated internal debates the following day with a new vote called for to continue going forward.

The ads were running on Thursday in a few of the target markets and will be maintained throughout the following week according to spokeswoman Gloria Bergquist who confirmed this decision, but would not provide any further details to reporters.

She indicated that the ads are up and running and will continue to do so in the foreseeable future according to a statement released late Thursday evening. Bergquist also further speculated that the group didn’t expect to receive this amount of coverage on this issue. The upshot is that the Obama administration is targeting a fuel economy figure of 56 miles per gallon for the entire car fleet. This figure is expected to be reached by the year 2025, which means that automakers can expect to achieve a 5% increase in their fuel economy each year from 2017 to 2025.

This figure has been vehemently opposed by the major car manufacturers who have created the radio campaign to try and curry consumer favor against the plan. They point out the still precarious recovery of the industry along with consumer confidence as major roadblocks to the proposed changes.

Don’t just look at the monthly lease payment amount when considering a lease. Several factors go into lease payment calculations, some of which you can modify to suit your driving habits. You can choose different lease provisions, such as mileage allowance, term and down payment amount. Manufacturers and dealers use a best-case scenario to advertise a low monthly payment amount, which might not work for all lessees.

Go to the manufacturer’s website to review current lease offers. Aside from the monthly payment amount, determine if the down payment and mileage allowance works for you. If not, contact a dealership to find out which options are available for the lease. You can usually adjust the advertised mileage allowance between 10,000 and 20,000 per year, although choosing a mileage allowance over 15,000 miles per year usually results in a monthly payment similar to a traditional finance. A term of 36 or 39 months yields the best payment because of expected depreciation, while a 24 month lease results in a higher monthly payment. You can, however, choose a 48 or 60 month option.

Offering a down payment toward a lease decreases the monthly payment amount by about $30 per month for every $1,000 you put down. If you want to modify an advertised down payment amount, use this calculation to gauge your new monthly payment and to decide whether it’s affordable. A down payment, aside from your first lease payment, is not required at lease signing. Your monthly payment amount will obviously increase when you lower the down payment from the advertised amount.

If you’re not happy with the lease options presently available to you, check back for new manufacturer offers each month. Most manufacturers release new lease offers every 30 to 45 days. If you find a lease you want to pursue, check the expiration date of the offer. Check individual dealer websites for additional savings. Some dealers offer discounts beyond the manufacturer’s offers. For example, you might find that a dealer doesn’t require a down payment like the manufacturer’s website suggests. These offers are exclusive to individual dealers and are accomplished by discounting the total cost of the car.

Gap insurance pays off your car loan if your vehicle is declared a loss by your insurance company and your full-coverage insurance payout doesn’t satisfy the loan’s balance. Examples of a loss include damages that exceed the vehicle’s value or theft. Most leasing companies require the purchase of a gap insurance policy as a term of leasing and auto loan providers may require the insurance as a term of loan approval.

Full-coverage insurance pays for your vehicle’s market value if it’s totaled or stolen without consideration of your loan balance. Your auto loan provider or leasing company is listed as your insurance policy’s loss-payee, meaning your insurance payoff goes to your bank or credit union. If you owe more than your car’s market value, you’re responsible for the remaining loan balance after the insurance payment, which is the benefit of gap insurance. You won’t have to continue making payments for a vehicle you no longer own. If you owe less than the car’s market value, your auto loan provider will return the excess payment to you.

You can purchase gap insurance for a one-time fee at the beginning of a loan or lease, even if the purchase isn’t required. Prices vary; some states cap the fee for gap insurance sales, meaning providers can’t charge more than a specific price throughout the state, and others allow dealers or lenders to charge as much they want. You can purchase gap insurance from your insurance company, lender, bank, dealer or from a third party provider. You can choose to pay cash for the policy or add it to your lease or finance account.

Purchase gap insurance if you owe more toward your loan balance than your vehicle’s actual value. While an accident or loss isn’t a sure thing, you’ll be paying loan payments without a vehicle if you don’t have gap insurance. Until you satisfy your old loan, you might find it’s difficult to obtain another car loan approval until your current loan is paid in full. Unless you provide a sizable down payment to increase your vehicle’s equity, purchasing the insurance can save you thousands of dollars if you need to use it.

It’s expensive to terminate a lease contract. Expect to pay a penalty fee that exceeds $1,000 and any payments due for the rest of your contract term. If you’ve exceeded your mileage or wear-and-tear allowance, you’ll pay additional fees separate from termination costs. Avoid termination or lease penalty fees by selling your lease, trading it to a dealer or transferring it to another person.

At any time during your lease contract, you can purchase your leased car from the leasing bank, sell it to another person or trade it to a dealership as long as you satisfy the lease’s purchase price. To determine if this option is worthwhile, call your leasing bank to obtain your lease buyout amount. Compare this amount to your vehicle’s current private sale or trade value. Check Galves or the NADA Guides website to determine your car’s trade and private sale value. If your lease buyout price and the vehicle’s value are in line with one another, trade your car or sell it.

If your lease purchase price is more than your vehicle’s value, compare the costs of selling the car to terminating the lease. You’ll have to provide payment for the remaining balance due to the bank if your sales price isn’t enough. Even If you owe $1,000 to the leasing bank after finding a buyer, providing the amount might cost less than lease termination charges. If trading your car to a dealer, you can transfer the negative equity into a new car loan and your dealership will satisfy the entire buyout amount.

If trading or selling your leased vehicle proves too expensive, consider transferring the lease to another person, known as lease assumption. Call your bank to confirm it allows lease transfers. Some buyers don’t want to sign a long term lease contract or provide a down payment, so taking over someone else’s lease is an ideal transaction. Your bank might charge a fee of around $500 to complete the transfer, although the cost is much less than paying termination fees or paying down negative equity. You can transfer the fee to the new lessee.

If all avenues fail, check with your leasing bank to determine if it offers an early lease-end option. Leasing banks often allow early lease terminations without penalty if the person leases a same-make vehicle through the bank again. Manufacturer and lender programs change monthly, so check back often if the option isn’t immediately available.