What did you say?!? Car leasing jargon explained

Posted by Barry | car stuff | Tuesday 3 January 2006 12:09 pm

In order to get a good leasing deal, you need to understand leasing jargon.
Read through this leasing glossary to get an overview of the basics:

Acquisition fee: A fee charged by a leasing company to begin a lease. Not
all leasing companies charge an acquisition fee but if charge it starts at
about $300 and is seldom negotiable.

Capitalised cost: The total selling price of the leased vehicle This also
accounts for taxes, title, license fees, acquisition fee and any optional
insurance and warranty items you elect to fold into the lease and pay
overtime rather  than upfront.

Depreciation fee:
Forms part of the monthly lease payment charge and accounts for the loss
in the value of the car at the end of the lease. The vehicle’s list price
minus the expected residual value at lease end is divided by the number of
months in the lease to give the depreciation fee. Suppose you decide to
lease a vehicle with a retail price of $23,500. The leasing company
estimates that after a three year lease, the vehicle will be worth 35% of
its original retail value, or $8,225. The difference, $15,275, divided by
the number of months in the lease, 36 months, gives us the depreciation fee
($424)

GAP insurance: Pays off the lease balanced if the vehicle is wrecked, stolen
or totalled.

Inception fees: any fees that are due at the beginning of a lease. These
typically include a security deposit, acquisition fee, first monthly
payment, taxes and title fees.

Mileage allowance: The maximum number of miles a leased vehicle can be
driven a year without incurring an excess mileage penalty. A typical
mileage allowance is 12,000 to 15,000 miles a year, although this is
negotiable with your leasing company.

Mileage charges a penalty that you incur if you exceed your mileage
allowance on a leased vehicle. Typical mileage charges are 10 to 20 cents
per excess mile.

Money-factor: A fractional number, such as 0.00043, used in calculating your
monthly lease payments. You can get a rough estimate of the annual
percentage rate on your lease by multiplying the money factor by 2,400. If
a dealer quotes a money factor such as 3.4 than you can get the equivalent
APR, 8.16, if you multiply by 2.4.

Residual value: Residual value is the amount of money the leasing company
says your leased vehicle will be worth when your lease ends. Higher
residual values lead to lower monthly payments but higher lease-end
purchase cost if you decide to keep the vehicle.

Security deposits: an up-front amount that your leasing company required at
the beginning of a lease to safeguard against non-payment. This is
generally refundable at the end of your lease.

Termination or Disposition fee: The amount you have to pay the leasing
company at the end of your lease if you decide not to purchase the vehicle.

Wear-and-tear charges: Extra charges you have to pay at the end of your
lease for any wear and use the leasing company considers above normal

New Year, New Cars: Sports Car for the Year 2006

Posted by Barry | car stuff | Monday 2 January 2006 2:31 pm

Car enthusiasts never run out of the need for greater speed, performance, as well as appearance of sports cars. Even if cars improve year after year, these people just cannot stop asking for more. Nevertheless, car manufacturers do not run out of ideas to improve their cars just to keep the ‘big boys’ satisfied.

Here are some of the sports car models that have been launched, or will be launched this year. 

-Ferrari 599 GTB

The car’s engine boasts of power derived from its V12 engine with 6 liter capacity. To top this feature is the full aluminum chassis and body construction of the car.

Ferrari 599 GTB’s performance can be compared to the Enzo supercar. At 7600 rpm, both cars can produce 620 bph (minimum). 

Other features include ABS breaking system and a rear wheel type of driveline. 

The car is expected to be available to the public by the last week of February 2006.     

-Audi S6

The car combines elegance, performance, and power. 

The car promises maximum performance from its V-configuration engine. The ten-cylinder engine produces 420 bph at 6800 rpm while displacing 5.6 liters.

Audi S6’s new engine made it possible to compare the car’s performance to a Gran Turismo. The car uses the FSI direct injection technology, allowing the car to utilize power flow.         

The car also comes with all wheel type of driveline and ABS braking system.

The car will be launched by spring of 2006. 

-Mazda Miata 2006

The car brand still speaks for itself as an affordable sports car. Nevertheless, the price did not compromise the features of the car. The designers altered the car a bit, but maintained the qualities that Miata is known for: Miata being skinny, squat and short.

The car boasts of precise control in corners. The agility of the car is outstanding! And paired with the compact form of the car, the possibilities are endless!

Mazda Miata 2006 comes with a 2.0- liter engine, with four valves each cylinder. The engine promises to deliver a minimum of 174 horsepower.

The designers improved the exhaust through the means of precise tuning. They also added approximately an inch in the rotor to improve the braking system.

The car also has the following specifications: rear wheel type of driveline, and anti-lock braking system enhanced with EBS.

With all the new cars available for 2006 with their new features, the ‘big boys’New Year, New Cars: Sports Car for the Year 2006
 
Car enthusiasts never run out of the need for greater speed, performance, as well as appearance of sports cars. Even if cars improve year after year, these people just cannot stop asking for more. Nevertheless, car manufacturers do not run out of ideas to improve their cars just to keep the big boys satisfied.

Here are some of the sports car models that have been launched, or will be launched this year. 

-Ferrari 599 GTB

The car’s engine boasts of power derived from its V12 engine with 6 liter capacity. To top this feature is the full aluminum chassis and body construction of the car.

Ferrari 599 GTB’s performance can be compared to the Enzo supercar. At 7600 rpm, both cars can produce 620 bph (minimum). 

Other features include ABS breaking system and a rear wheel type of driveline. 

The car is expected to be available to the public by the last week of February 2006.     

-Audi S6

The car combines elegance, performance, and power. 

The car promises maximum performance from its V-configuration engine. The ten-cylinder engine produces 420 bph at 6800 rpm while displacing 5.6 liters.

Audi S6’s new engine made it possible to compare the car’s performance to a Gran Turismo. The car uses the FSI direct injection technology, allowing the car to utilize power flow.         

The car also comes with all wheel type of driveline and ABS braking system.

The car will be launched by spring of 2006. 

-Mazda Miata 2006

The car brand still speaks of itself as an affordable sports car. Nevertheless, the price did not compromise the features of the said car. The designers altered the car a bit, but maintained the qualities that Miata is known for: Miata being skinny, squat and short.

The car boasts of precise control in corners. The agility of the car is outstanding! And paired with the compact form of the car, the possibilities are endless!

Mazda Miata 2006 comes with a 2.0- liter engine, with four valves each cylinder. The engine promises to deliver a minimum 174 horsepower.  

The designers improved the exhaust through the means of precise tuning. They also added approximately an inch in the rotor to improve the braking system.

The car also has the following specifications: rear wheel type of driveline, and anti-lock braking system enhanced with EBS.

With all the new cars available for 2006 with their new features, the big boys will have to be satisfied for a while.