Author Archives: Dolores Ray

Leasing vs Buying a Car

There are 2 choices when you want to get a new car or truck: You can lease, which leads to a lower monthly payment but often you are stuck in a perpetual cycle where you never stop paying for a car. Then you have the option to buy a car, which entails higher monthly payments…but you end up owning the vehicle in the end. Over the last few years, the car leasing market has skyrocketed. You have a lot more people leasing a vehicle rather than buying a vehicle.

The Altered Landscape

Luxury cars used to be the elephant in the room when it came to leases. As we move into the end of our current decade, we are seeing more compact cars, everyday sedans, and smaller SUVs finding their way into the new-car leasing market. One of the main reasons is very attractive finance rates. Remember, earlier I said the lower monthly costs can be attractive, so these lower rates are creating really great deals for consumers.

Car dealerships love to lease cars. This keeps the used car market steady with higher resale value, which means a slower depreciation, which translates into cheaper leases for that particular model. Ultimately, this benefits the consumers. Win-win.

Not only that, but when a customers returns their vehicle at the lease-end, the used car dealerships has a chance to place them into a new car, which is an immediate need of a consumer returning a lease. Another way in which a car’s resale value you can boosted lies within the mileage program of a lease. Changing the allowance to 10,000 miles per year instead of the usual 12,000 to 15,000 miles per year brings back vehicles with lower mileage, which boosts the resale value.

There is an increased trend in car leases of less than 36 months, which has it’s pros and cons. Pros: It looks very attractive to someone who doesn’t want to get locked up into a lengthy contract. At the same time, the average driver will exceed those 10,000 miles and end up paying more fees and penalties. It’s also becoming much more common for people who want to buy a vehicle to stretch the loan out for 7 or 8 years, helping them keep a reduced monthly payment.

The Difference between Loans and Leases

When you buy a car:

  • You own the vehicle and keep it as long as you want
  • Your upfront costs include the cash price or some sort of down payment, taxes, registration and miscellaneous fees
  • Loan payments are typically higher than lease
  • You can sell or trade your vehicle at anytime you decide you want something different
  • The vehicle will lose value, however it is yours to use as you like
  • You’re free to drive as many miles as you want
  • There isn’t a need to worry about wear and tear on a vehicle
  • You can customize or modify the vehicle as you wish

When you lease a car:

  • You don’t own the vehicle and must return it at the end of your lease period
  • They can include first month’s payment, a refundable security deposit, an acquisition fee, and other fees
  • Payments are usually lower than loan payments because you’re paying only for the car’s depreciation during the lease term
  •  Ending a lease early can lead to more fees
  • You return the vehicle and pay any end of lease costs
  • You have no equity in the vehicle
  • You’re limited by the number of miles you drive
  • You cannot customize or modify the car

So while you’re out there looking at cars for sale or cars to lease, you have a lot to think about. There are pros and cons to each tactic for consumers when buying or leasing a vehicle. You just have to make the determination on which way you financially prefer.

Check out this video I found below that discusses the topic of buying or leasing a vehicle:

Port Equipment: Rent vs Own

If you’re in the intermodal industry, and you are looking at reach stackers for sale , then you probably are asking yourself the question: “I wonder if I should just rent these used empty container handlers … they are expensive!”. Don’t worry, you’re not alone. If you break down the numbers, you will see renting will cost you less in the short-term, but if you’re going to need one of these heavy lifters you may just want to fork up the dough! (no pun intended even though you are looking at forklifts!) At the end of the day you will just need to do what is best for your business model and make a sound decision with your CFO.

Owning a home

Owning a home

Buying a house for yourself is going to cost you a lot of money. You may think that it can’t be that high, so let me introduce you to some of the costs you will have to pay while purchasing a house. Some are paid right at the start when the seller accepts your offer while some costs must be paid after the deal is done.

Earnest money is a check that ranges from 1% to 3% of the home’s purchasing price that you have to provide the seller along with your purchase offer. Down Payment is the money that you pay to the seller upfront, usually after closing the deal. It is the percentage of home’s purchase price, typically from 3.5% to 20%. You may also have to pay Property Tax to compensate the seller for the taxes paid between the closing date of the deal and the end of current tax period since property tax is paid by the owner upfront. There are some other type of costs involved as well like Home Appraisal, Home inspection cost, First year’s Homeowners Insurance cost, and other closing costs.

Then there are the recurring costs involved with homeownership like Loan Payments that must be made monthly, property tax, Homeowners insurance, private mortgage insurance and some other payments. You also have to pay for the utilities like water, gas, electricity etc. but that is common for rented apartments as well.

Own or Rent a Home: Which is Better?


Own or Rent a Home: Which is Better?

Owning a home is everyone’s dream. Some achieve it while some don’t. The cost associated with purchasing a home is very high nowadays, so most people tend to rent an apartment. People tend to save money and start families before they even think of buying a house for themselves. But they have money, they don’t hesitate to buy a home themselves. The home ownership rate has decreased in last few years because of reasons like elevated housing prices, and high student debts. Because of these reasons young people have to wait a long time before they save enough money to buy their dream home.

But we will not be discussing the reasons behind low ownership rates in this article. Instead, we will discuss what is best for the people to do: buy your own house or rent a home. We will see if you are at that stage in your life where you have enough savings to buy a home but cannot decide if it is the right decision. We will discuss the advantages and disadvantages of owning a home and renting a home both. So without further delay, let’s see what will be the best option for you.