When you ask, “Should I lease a car?” you likely hear one of two words: "Do" or "Don't.’
That makes it difficult to decipher the pros and cons of leasing a vehicle. The answer to the question, like many financial decisions, depends on a host of individual details including price, terms, driving record, insurance history and more. Misinformation and even some long-held biases on the pros and cons of leasing add to the confusion. But leasing a car makes sense for many people. Are you among them? The best way to judge is to understand the pros and cons of leasing a car, how leasing a car works and what insider tips for leasing a car might help you get the best deal. Here are some of the particulars you might consider: What Is a Car Lease? You'll often hear car leasing likened to apartment leasing. There are plentiful similarities. When you lease a car or an apartment, you lease the property for a specific amount of time. You and the property owner have a mutual understanding that the assets will be returned in good condition. Yet there are significant differences between leasing a car and leasing property or even other equipment. Many car lease agreements last two to three years and often allow you to purchase the car at the end of the term. Car lease agreements limit the number of miles the vehicle can be driven annually, generally between 12,000 to 15,000 miles. Those that exceed the agreed upon mileage are often responsible for paying 10 to 25 cents per mile. You may be able to increase the number of miles you can drive without a per-mile penalty, but the cost can be steep.1 How to Lease a Car On the surface, it's easy to understand how leasing a car works. Review car dealership websites. Then call or visit the dealership. That's how you'll find lease specials and selections. One major difference between shopping for a traditional car loan and a lease is what you'd focus your energy on. With a traditional purchase, getting the lowest sale price is typically the goal, as that price, combined with the annual percentage rate (APR) of your loan’s interest as well as taxes on the vehicle, will be spread out over the course of a multi-year loan When leasing, your energy is better spent trying to determine the lowest possible payment, including all taxes and fees,2 since the term of the lease is typically shorter than a car loan term. Shop at different dealerships before you select a car to lease, just as you would if you bought a car. One tip: Don't forget to ask for all lease terms, from each dealership, in writing so that you can compare all fees, prices and terms. Why Do People Lease Cars? Some people choose to lease a car because it allows them to drive higher-end cars for a more affordable monthly payment. Plus, a two- to three-year car lease allows drivers to easily and frequently upgrade their rides. Of course, not everyone leases because they want luxury wheels. Lower down payments, warranties, and free routine maintenance are among the benefits lease customers often receive. Another bonus is that depreciation of the car is deducted from the total lease cost you pay. And some who end their lease find the car is more highly valued than predicted. That may entitle the lease owner to a payout or credit.3 An easy way to determine if you might be entitled to a payout or credit would be to evaluate your vehicle's value online and compare that value to your payoff amount. If your car is worth more than your payoff, you may want to discuss this issue with the dealership, to find out if you may be due some cash. Many dealerships also offer leases for used cars. Those are usually certified preowned (CPO) cars. Those cars are generally newer, have low mileage and were inspected and repaired or refurbished. What Are Some of the Downside of Car Leases? The obvious downside to leasing a car is that you don't own the car at the end of the lease. That means you don't have a trade-in if you decide to purchase a car. Those that routinely lease cars over many years may pay more money than they would if they had initially bought the car. Another thing to consider: You can break an auto lease, but it will likely cost you a hefty fee. Yes, you can sign a long-term lease, but that may negate the monetary benefits of leasing instead of buying a car. That’s because leasing typically costs you more than what you might have taken out in a long-term car loan. You’ll want to do the math to figure out if the numbers work in your favor to sign a long-term lease. Should I Buy My Leased Car? Just as you consider many factors when you lease a car, you need to analyze the costs and benefits of buying the car at the end of the lease. First, do you like the car? Do you enjoy driving it and does it suit your needs? That may seem like a funny question but consider your lifestyle. If you leased a small, compact car so you can easily maneuver through traffic, for example, and are moving to a rural area where you may need a vehicle that has sturdier road handling capabilities, you may find the compact car unsuitable for your new location. On the other hand, you may not want to drive a large SUV if you are moving to a congested urban area. Are you happy with the car's performance? Do you find gas mileage is reasonable? Is the car always in the shop for warranty work? Analyze how much the car's upkeep will cost you if you do buy it. If you decide the leased car is the one you want to buy, look at the residual value. How much is the car worth and how much would you pay to get out of your lease before it expires?4 There are various strategies to save money when buying your leased car, including financing through your bank or working directly with the lender (the creditor that owns the car). If you decide to buy the leased car, explore all options. As with most personal financial decisions, the pros and cons of leasing a car come down to a host of individual factors. Analyze your needs and budget and then shop to make sure you make the right decision for you.
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Your dashboard is filled with icons and alerts that can tell you when your vehicle needs attention. Some of these notifications are more serious than others, but it’s a good idea to know what they all mean.
But your dashboard isn’t the only way to tell if something is wrong. Sometimes you need to rely on your senses, which is why it’s also important to listen to the sounds your vehicle makes. Have you noticed any clunking, grinding or high-pitched squealing lately? Here’s what some of these odd noises might mean.
Ask Your Mechanic These warning noises may help you diagnose the problem, but this list is by no means comprehensive. If you hear something unusual, always ask a trusted mechanic as soon as possible. Ignoring a strange sound can mean more expensive repairs down the road. Have questions about your coverage? Reach out anytime. More than 40,000 Americans died on the roads in 2016, the most significant increase in deaths over a two-year period in more than 50 years.1 Whether someone you love has been known to text and drive, or you have found yourself distracted behind the wheel, these tips can help avoid dangerous activity on the road.
Taking your eyes off the road to search for an item can make you more likely to have an accident. Share these tips to help keep others safe. Because there are so many companies selling car insurance, sorting through all the choices to find the right policy for you and your family can be a challenging task. With each carrier claiming to offer the best value, it's easy to feel confused. At first glance, all of the policies may look the same, but there are important differences you may need to consider. Your goal should be to find one that includes all the benefits you need at a competitive price.
Follow these four steps for finding the best car insurance policy for you: 1. Determine the Level of Coverage You Need The cheapest policy may not be the one you need. Inexpensive plans may not provide collision coverage, which pays to fix your own car following an accident. They may not offer comprehensive coverage, which covers damage to your car not caused by auto accidents, such as natural disasters, theft or vandalism. The nonprofit Insurance Information Institute notes that all states except New Hampshire require property and bodily injury liability coverage.1 A policy that offers only the minimum amount of liability protection required by law may save you money, but it probably won't cover the legal claims that can stem from serious accidents involving property damage or injuries. Remember that not everyone's insurance needs are the same. For example, if you're leasing a car, you may need gap insurance. If the car is totaled, gap insurance covers the difference between the actual cash value of the vehicle and the outstanding balance on your lease. 2. Review the Financial Health of Car Insurers Everyone wants a good deal on their auto insurance policy, but low rates won't do you any good if the company you choose isn't around to pay its claims. Each ratings agency uses its own standards for evaluating insurance companies and their financial health. 3. Compare Several Car Insurance Quotes You can shop for insurance working directly with insurance agents. A report says getting multiple quotes is important because prices for the same level of coverage vary greatly.3 That happens because insurance prices are based on risk. Each carrier has its own formula for measuring the policyholder's risk for filing claims. Some insurers rely heavily on insurance scores to determine how likely policyholders are to file claims. Other companies may give more weight to the type of car you drive and how expensive it would be to repair following an accident. Where you live also can be a factor in determining what you pay for car insurance. If your ZIP code has a higher-than-average rate of car accidents, your insurance costs could be higher. 4. Ask About Discounts Many insurance companies offer discounts, notes. If you have a teen with good grades on your auto policy, he or she may qualify for a reduced insurance rate. Some insurers offer discounts to drivers who meet annual low-mileage thresholds or take driver education classes. If your car has an anti-theft device, that also could qualify you for a discount. Be sure to ask to request a list of all available discounts. It could make a big difference in how much you pay for your policy. Do you know how damaging potholes can be?
Unfortunately, this common road hazard can potentially send your vehicle to the repair shop. Here’s what to know if you ever find yourself dealing with pothole problems. Plus: Find out how you might be able to avoid them in the first place. What kind of damage can a bad pothole cause?
Thinking of filing a pothole damage claim? Your policy may cover pothole damage, but such a claim is likely to be considered a single-car accident, which means the fault gets assigned to you. Having an at-fault accident on your record could cause your rates to go up. Before you file a claim, check your deductible to see if the cost of repair will exceed your out-of-pocket amount. If not, there’s no benefit to filing a claim. Not sure what to do? Reach out to us for help weighing your options. How can you avoid pothole damage? Pothole season may be unavoidable, but that doesn’t mean potholes themselves can’t be avoided. Here are a few tips for preventing pothole damage:
Have questions about pothole damage claims or your policy in general? Reach out today. Send me a Home Insurance Quote Cape Cod Massachusetts -How to Get the Most Out of Your Car
Whether your car is brand new or getting up there in mileage, you probably want it to keep running smoothly for as long as possible. You already know that maintenance tasks, driving habits and more can all affect your vehicle’s overall health. But are you doing everything you can? Here are a few obvious and not-so-obvious ways you can give your car the attention it needs to keep you safe and comfortable for another few years of driving. 1. Stick to the right maintenance schedule. Regular maintenance, including basic oil changes and brake, fluid and filter checkups, can help keep your vehicle running strong. Your trusted mechanic and your owner’s manual can help you follow the recommended maintenance schedule. 2. Avoid short trips. Frequent, short drives may not give your engine a chance to reach optimal operating temperature and can be hard on your vehicle. When you can, group your errands and other short trips as much as possible. 3. Keep it clean. Help protect your car’s interior and exterior from wear and decay by cleaning both regularly. Remember, the tires and undercarriage should also be washed regularly to prevent corrosion and other issues. 4. Practice smart driving habits. Everyday careful driving can also go a long way toward prolonging the life of your car. Follow the speed limit, avoid sudden braking and acceleration, and of course, avoid distracted driving. 5. Stay observant. Use your senses to look out for anything out of the ordinary and be sure to follow up with your mechanic if you notice any strange sounds, smells or problems with your tires. Have questions about your vehicle coverage or anything else? Reach out anytime. The economic shifts resulting from the COVID-19 pandemic likely mean that your business has changed; it may have shrunk or grown substantially since the onset. This may mean changes in operations, staffing and transportation schedules, all of which may change again as social distancing restrictions ease and your business returns to a new normal. Whether you transport cargo or have employees driving regularly for work, some adjustments are likely as you respond to the crisis and adapt to new ways of doing business.
Engaged Employees One of the most important things you can do is to engage your employees in the process of restoring operations. Review employee standard operating procedures (SOP). As needed, update procedures, including your employee handbook. Provide training to employee groups on new SOP and include supervisors in the training. Reinforce any new SOP through ongoing supervisory communication and utilize existing corrective action programs to ensure compliance. Consider organizing a COVID response committee, which can help connect management and employees to gather feedback on coordinating both reopening and future concerns. Your Facility Before operations ramp up, make sure you review any instructions or requirements from state or local authorities that may be applicable to your business. If reopening, you may want to consider a thorough disinfection of your facility and any tools, vehicles or equipment that are used by your employees. Be sure to include desks, washrooms and break rooms. Product to be delivered may need to be sanitized as well. Consider establishing a program to continue an ongoing cleaning and disinfecting process. Consider a process for wellness checks and procedures for employees reporting or displaying signs of illness. Work with legal counsel to make sure you are complying with laws and regulations related to employees' health and privacy. Develop social distancing and personal protective equipment (PPE) policies, taking into consideration state and local public health guidance and overall employee safety. Consider limiting visitors to your facility. Driving and Transportation Just as it is important to disinfect your facility, be sure to clean and disinfect all vehicles. This includes cleaning between shifts and drivers. Make disinfecting supplies available to your drivers and vehicle maintenance staff, and stock these supplies in every vehicle. Your pool of drivers has likely changed since the onset of the COVID-19 pandemic. If commercial drivers were furloughed or laid off, review the hiring requirements from the Federal Motor Carrier Safety Administration (FMCSA) to determine if new applications or drug and alcohol testing are required. Many organizations are revisiting hiring decisions made during the COVID-19 pandemic to ensure new drivers meet company hiring standards. Carefully review staffing levels as your operational pace increases. While it may be tempting to try to do more with fewer drivers, over time, fatigued drivers can lead to increased motor vehicle crashes and workplace injuries. Customer or Delivery Sites Coordinate safe work practices with your customers before beginning deliveries. Ask about changes to delivery procedures or physical controls at locations where you make deliveries. Work with each customer and supplier to establish a new practice that can help limit contact between delivery employees and customers' employees. For example, delivery employees may need access to a safe waiting area or restrooms within a customer's facility. Also, there will likely be a shift to e-signatures over wet signatures for delivery confirmations. Make sure employees are trained in new delivery practices. Other Considerations Review routine activities, such as updates to licensing, certification renewals or medical screenings, that may not have been completed as normally required. Revisit any scheduled training or maintenance on vehicles or equipment that may have lapsed. With the ongoing COVID-19 pandemic, it is crucial to review and update policies for cleaning and disinfecting your facility, equipment and vehicles. It is recommended that you increase the frequency of cleaning and disinfecting high-touch surfaces, which may include door pushes, handles, touchpads, elevator buttons, faucets, sinks and electronic devices, as well as common areas, such as entryways, lobbies, hallways and restrooms. The Centers for Disease Control and Prevention (CDC) offers steps for properly cleaning and disinfecting facilities. If infected persons have been in your facility, the CDC provides additional considerations:
How to Clean and Disinfect Hard (Non-porous) Surfaces Non-porous surfaces should be cleaned using a detergent or soap and water prior to disinfection.
Porous Surfaces When cleaning and disinfecting soft (porous) surfaces like carpets, drapes and other woven fabrics, first clean these surfaces with soap and water or other suitable cleaners. Avoid shaking drapes to make sure you do not make the virus airborne. Then, if possible, launder these items following the manufacturer’s directions. When laundering items, use the warmest water setting appropriate for the items and dry completely. Otherwise, use EPA-registered disinfectants for SARS-CoV-2 for porous surfaces. Electronics Clean and disinfect electronics regularly, especially if they have been used by an infected person. Electronic devices may include cell phones, tablets, touchscreens, keyboards, remote controls and ATMs. Remember to focus on frequently touched surfaces. When cleaning and disinfecting electronics – both shared and personal – follow the manufacturer’s instructions on appropriate products to use. If there are no cleaning and disinfecting guidelines provided by the manufacturer, consider using disinfectant products such as wipes or sprays with at least 70 percent alcohol. Non-Emergency Vehicles Develop and consistently follow cleaning and disinfection procedures for vehicles, with a focus on commonly touched surfaces. Conduct these procedures at the beginning and end of each driver’s shift. Maintain adequate ventilation of the vehicle while cleaning and disinfecting. Refer to the sections on PPE and hand hygiene below.
Hand Hygiene Wash or sanitize hands immediately after cleaning and disinfecting, removing gloves or other PPE, or coming into contact with an infected person. To thoroughly wash hands, use soap and water for 20 seconds. When washing hands is not possible, and as long as hands are not visibly dirty, use an alcohol-based hand sanitizer made of at least 60 percent alcohol. Other key times to clean hands are after coughing, sneezing, blowing your nose or using the restroom; prior to preparing food or eating; or after public visits or interactions. Personal Protective Equipment (PPE) It is important to develop and implement procedures and policies that address the use of PPE.
What should you keep in your car? Are you taking a road trip this winter? Do you just need an excuse to get rid of all the random stuff that has accumulated in the trunk and backseat? Here’s a weekend project idea: Clear out anything you don’t need and stock your car with a few actually useful items instead. Whether you buy a premade emergency kit or gather a few things separately, here’s what to consider tossing into your trunk as a way to stay prepared and safe on the road. Flashlight or Headlamp A light source is great to have when you break down in the dark. With a headlamp, you can keep your hands free while changing a tire or checking under the hood. First-Aid and Comfort Supplies Band-Aids and other first-aid tools can be useful anytime, not just in an emergency. A blanket can protect you while on the ground working on your car. It can also provide warmth if your vehicle breaks down in cold weather. If you have kids, water and snacks will come in handy while waiting for a tow truck. Emergency Tools Stay safe on the side of the road with reflective triangles, flares, a fire extinguisher and a multipurpose tool like a pocket knife. Jumper Cables Keep working jumper cables in your trunk to help revive your own vehicle’s dead battery or someone else’s. Portable Phone Charger If your car battery dies, you won’t be able to charge your cell phone in your vehicle’s USB port or cigarette lighter. Keep a functioning portable charger just in case. Have questions about your coverage or anything else? Reach out and we’ll be happy to help. What did we do before we had backup cameras?
The driver-assist features found in newer cars and trucks often make driving safer, and most of us rely on them every day. But it’s worth remembering: Technology can’t always perform better than your own quick reflexes. Find out how to make the most of your vehicle’s safety features without letting them lull you into a false sense of security. Benefits and Limitations Here are a few features you may be familiar with (along with their limitations):
Regardless of how smart your car seems to be, don’t let go of these essential habits:
Common Distractions While texting may get the most attention, it’s not the only dangerous distraction on the road. Here are other behaviors to avoid:
Check Safety Ratings When car shopping, search for the year, make and model you’re interested in to review safety ratings. You can use the National Highway Traffic Safety Administration’s 5-Star Safety Ratings or the Insurance Institute for Highway Safety’s vehicle ratings. Have questions about your coverage? Reach out and we’ll be happy to help. . |
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