Leasing Government Grants

DO YOUR HOMEWORK BEFORE BUYING OR LEASING A VEHICLE

If you're in the market for a new or used car this year, you can save money by doing your homework before buying or leasing. It will be helpful to consider the following before selecting and financing your next vehicle:

1. Determine how much you can afford and how much you will pay for the car. Cash is the least expensive, but two of every three car buyers must use credit. Evaluate terms offered by automotive finance companies and other lenders. Compare financing terms as well as car prices.

2. Make as large a down payment as you can afford and plan to repay the loan as soon as possible.

3. Select a car model within your budget that will meet your needs. Loading a car with options might double the original base price, so decide which options are essentials and which ones you can live without.

4. Buy during the late summer or early fall, just before the next year's models arrive.Dealers offer discounts on last year's inventory.

5. Compare various dealers' discounts on a particular car's list price. Don't be afraid to negotiate. Evaluate the manufacturers' warranties. Compare what they cover and what they don't.

6. Read your sales agreement before signing it. Make sure it is approved by the sales manager and that all oral promises made by the salesperson regarding special services or adjustments are included in the contract.

LEASING

Many consumers are considering leasing rather than purchasing a new or used car these days. If you're thinking about leasing your next car, here are four tips to keep in mind:

1. Shop and compare. As in any contract, the terms in lease agreements are negotiable. Check around for the best deal.

2. Know your driving style. Consider factors like how much you drive and how often you change cars.

3. Be aware of any costs involved if you end the lease early.

4. Remember that leasing a car is different from buying a car. When you buy, you're the owner. You pay for the car, you keep the car. When you lease, pay to drive a car owned by someone else. At the end of the lease, you give it back.

A carefully selected used car can provide as reliable transportation as a new one. Seek the expertise of a mechanic for checking out a used car.