Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.

Let’s take a look at some tips, pros, and cons when it comes to making this decision.

First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, you’ll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars won’t have all of those superfluous dealer ‘add-ons’ stuck on the window either that will just never do.

In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades you’d like to have on the used car that you couldn’t otherwise afford going with the new.

Yet, with all of this, buying a used car isn’t for everyone. Finding a used vehicle that fits one’s entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.

Not so many years ago, reliability was a major concern when purchasing a used car… and rightfully so. Today however, reliability problems are a fraction of what they used to be. Today’s vehicles, when properly maintained will easily go for 100,000 miles and it’s not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.

Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.

As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty you’ll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that aren’t covered by any manufacturer’s warranty anyway; items such as brakes, tires, alignment, batteries, etc.

Of course nobody can guarantee that you won’t encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.

When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle you’ll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car you’re looking at. Be sure to crunch the numbers for both sides.

With used cars, insurance can save you some money as well because you’ll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.

And finally, (the latest) safety features could be a concern if you’re looking at used car (particularly if you’re going back a few model years).

All in all, if the touch, feel, and smell of a new car, isn’t a top priority for you, I think you’ll find that a well thought out used car purchase you can get more car and features and still be within your budget.

Auto leasing and the marketing thereof have been somewhat under the radar the past few years due to very low interest rates offered up by lending institutions. For most, the allure of leasing a car has been the advantage of lower monthly payments. With the low financing rates, this advantage has been shifted to traditional financing.

The world of car leasing has a long history of being somewhat less than straightforward. Even now one can find some pretty good deals out there, but the financial process around leasing a car can still be more than a bit confusing. And it’s this confusion that can leave you with a less than warm and fuzzy feeling after your leasing transaction is all said and done.

So, in an effort to avoid or mitigate the confusion when it comes to auto leasing, let’s take a look at some basics.

In auto leasing you are only paying for (in the form of monthly payments) the portion of the car that you use over the life of the lease (the part you use is how much the car depreciates). As part of your monthly payments, you’ll also be paying sales tax and finance charges.

Yes, finance or interest charges. In car leasing vernacular this is known as the ‘money factor’.

What determines how much of the car you will use is the car’s residual value. The residual value is a predetermined number as to what the market value of the car will be at the end of the lease.

For example – if a $20,000 car has a residual value of $11,000 at the end of your 36 month lease – this means that you will have used $9,000 of this car; so your monthly payments will be based on $9,000 over 36 months. As you can see, the better a car holds its residual value or the higher that value is… the more favorable your monthly payments will be.

More often than not the money that you will need to come up with up front is your first monthly payment and a security deposit. Of course, you are more than welcome to put more money down (cap cost reduction) just like when purchasing a car; if you want to lower your monthly payments even more.

The cap cost or capitalization cost is another name for the price of the car you’re looking at. And, just like purchasing, you can and should negotiate the price or in this case the cap cost of the car. In fact, I wouldn’t even disclose the fact that you’re considering leasing until you’ve negotiated and agreed on an actual selling price of the car you’re looking at.

As you see, doing your homework is every bit just as important as and probably more so than when you are actually purchasing the car. Negotiating and leasing a car based solely on achieving a monthly payment is probably the number one reason consumers get stuck paying too much.

Cap cost reduction is almost always negotiable. If a dealer tells you that it is not or unwilling to do so… they are plenty of other vehicles and dealers that offer and will.

We touched on the ‘money factor’ which is the leasing equivalent of the interest rate. Are you getting the best possible ‘money factor’? Just like the purchasing side, the dealer can add points to a money factor just like they can to an interest rate in order to maximize their profit. This is why it is extremely important for you to know your credit score and at what interest rate you qualify for before you even set foot in a dealership or you could really get … well … made love to.

Many factory warranties on vehicles run for 36 months. This is a good reason not to be looking at leasing a car for longer than the factory warranty. In addition, once you get out past 36 months on a car lease, you rapidly start losing the advantage of the residual value since most depreciation occurs early on.

Lastly… well, maybe not lastly when it comes to leasing but lastly within the scope of this article; if you have good credit, or perhaps have been a good or repeat customer, ask the dealer to waive the security deposit and/or the acquisition fee. First of all, they won’t if you don’t ask; and secondly this is certainly a fair request as part of the negotiating process. Worst case they say no. Best case… you save some more of your hard earned money.

So you are in the market for a great used car. You want one that will start every time you turn the key. You want one that will get you where you want to go safely and economically. You want one that will look good and be fun to drive. You can have all of these things in a car, and you can have them more easily if you remember these 5 things when you are car shopping.

The first thing to remember is that our car will almost always depreciate. It will get older and parts will wear out. It will get scratched, dented, dirty, and it may rust. The longer we own the car, the less valuable it becomes. That’s the bad news. The good news is that it’s okay for our car to depreciate, if it provides good service to us. The decrease in value should balance with the good use we receive from our car.

The second thing to be very clear on is that people get emotional about their cars. Its part of the human condition to get attached our car, because our car is really just an extension of us, of our ability to go where we want, and of how we look and feel when we do that. We identify with the way our car looks to us, and the way we feel about that. These emotional influences can distract us from facts that are screaming at us when we go to buy the car. It is hard to not become emotionally involved, but we can be aware of these influences when we get close to buying a car, and that can save us from making expensive mistakes.

This leads us to the third point which is that we need to be extra smart when buying a car. To buy our car well we need to be smarter than the average person is about buying a used car. This is not that hard to do! Making a good buy can lessen the financial hit we take from depreciation, save us money on the purchase itself, and potentially save us thousands of dollars in the years following our purchase.

The fourth thing to remember when buying a used car is that cars are complicated things! Some are built better than others, and some have been maintained much better than others. We want a well built, well maintained car. You may not know all the questions to ask, or all the things to look for when buying a used car, but you can ask someone who does. Having a mechanic check out a car for you before you hand over all your cash can reduce the risk that complexity brings.

The fifth and final point to remember is that cars are much easier to buy than to sell. In fact, it is quite easy to buy several of them in one day! Anyone can do it. Selling them is much more difficult. My point is this: Don’t be in too much of a hurry to buy a used car. If you can’t find one you really like the first time you look, don’t be discouraged. The ideal car for you will come along if you look systematically for it. Taking your time to find a good one will pay off in the long run.

The Nissan Murano offers the roominess and practicality of a sport utility with the handling, power and smoothness of a sporty sedan. Murano comes well equipped and its luxurious ambience gives it the feel of a luxury SUV.

The Murano was recently honored with the Automotive Lease Guide’s 5-Star Depreciation Rating, the highest rating in its category. This award recognizes vehicles predicted to retain the highest percentage of their original price based upon anticipated depreciation, current market conditions and prices, including incentives.

Nissan Murano is also the Winner of Strategic Vision’s 2005 Total Quality Award in Best Medium Crossovers. Its V-6 power, all-wheel drive, and advanced technology helped Murano reach the peak of new car ownership satisfaction for Medium Crossover vehicles, while cutting-edge design helped Murano look good doing it. The Murano also won the Vincentric’s Best Value in America awards for over $28,000 segment and under $28,000 too.

The 2006 Nissan Murano is available in three models: S ($27,450), SL ($29,000), and SE AWD ($31,550). The S and SL come standard with front-wheel drive (2WD); all-wheel drive (AWD) adds about $1,600 more. The SE comes with all-wheel drive as standard equipment. All models are powered by the 3.5-liter V6 mated to a continuously variable transmission (CVT) that Nissan calls the Xtronic. All Murano models come with features above the class standard.

Safety features include dual-stage frontal air bags with seat belt sensors, front-seat side-impact airbags, full-cabin curtain style head-protection airbags, and active front head restraints. Rollover sensors for the airbag system activate the airbags in the event of a pending rollover.

Murano comes standard with four-wheel vented disc brakes with ABS, Brake Assist and electronic brake-force distribution. Option safety equipment: Vehicle Dynamic Control, which helps the driver correct skids, a Traction Control System, and a tire-pressure monitoring are all part of the Dynamic Control Package, which can be added to models with the Premium package.

For the best deals on Nissan models, new and pre-owned contact your favorite Nissan Dealer, Bob Howard Nissan, Oklahoma City, OK. [PRWEB]

tagTRAX: nissan murano | continuously variable transmission | traction control system | airbags | models

Vincentric’s Best Value in America™ awards were announced today, with hybrid vehicles leading the way. The Toyota Prius, along with the hybrid versions of the Ford Escape, the Honda Civic, and the Toyota Highlander each won the Best Value in America™ award in their segment. In addition, Vincentric assigned Excellent Value ratings to the Mercury Mariner hybrid, the Lexus RX400h hybrid, and the Honda Insight.

To determine Vincentric’s Best Value in America™, Vincentric analyzed over 1,800 different vehicle configurations and computed the cost to own and operate each vehicle. Eight different cost factors were calculated to determine overall Cost of Ownership: depreciation, fuel, insurance, opportunity cost, financing, maintenance, taxes and state fees, and repairs.

Using a statistical model, the company identified the Best Value in Americaâ„¢ by measuring which vehicles have a lower than expected ownership cost given their market segment and price. The strong value of hybrids was clear when both a hybrid and non-hybrid version of the same vehicle were compared to other vehicles in the same segments. In those instances, the hybrid version had ownership costs that averaged 16.2% lower than a similarly priced competitor, while the non-hybrid version had ownership costs 7.9% lower.

“Hybrids benefited from three main factors”, stated David Wurster, President of Vincentric. “First was their strong fuel economy ratings, resulting in lower fuel costs for these vehicles. Second was their strong residual values due to high demand, resulting in lower depreciation costs. And third was the federal tax credit that went into effect this year. This combination of factors creates extremely strong value for consumers.”

Including the Prius and Highlander hybrid, Toyota had eleven Best Value in Americaâ„¢ awards, with Honda also faring well with six winners. [PRWEB]

tagTRAX: hybrid vehicles | hybrid version | highlander hybrid | toyota prius | lexus rx400h