So you are in the market for a nice set of wheels, but with the current state of the economy and the meager amount of money available to you in your bank account you won't have anywhere near enough to even make a down payment on a new car - and with your credit rating you know that you'll never ever qualify for a loan, so it looks like a used car could be your only option. You need something that will not only get you from point A to point B, but something that will be reliable and economical as far as fuel consumption and repairs are concerned. So the question is - what do you look for in a used car to make sure that you are getting the right car for you?
First you need to decide what type of vehicle is best for your situation, if you've got four kids that you need to cart around to school, violin lessons and soccer practice, than a two seat sports car or a pick up truck may not be the best car for you or if you'll be using your vehicle for heavy hauling than a Ford Escort or VW Bug are probably out of the question - simply selecting what type of car you need will drastically narrow down the field before you even begin looking. If a car won't properly suit your purpose, even if it's a great deal, it's not the right car for you.
Once you've narrowed down the field to the appropriate type of car you can begin to look at other aspects that will have a large bearing on how well a car suits you. You probably have a good idea at this point what type of car you're 'attracted' to, so it would be a good move to do some research on the makes and models that most interest you. A quick search on the internet will give you a good idea of how long certain cars last and what the most common problems associated with them happens to be. Of course these findings are based on a general overview of the individual models so none of this information should be taken as Gospel, but these facts and reviews should at least give you a good idea as to the reliability of the cars that you are considering.
When you go to see a car even if you aren't a 'car person', look for obvious things both at first sight and during your test drive. Something that you can pick up on very quickly is the car's mileage. If you are planning on driving your 'new' used car for several years you probably want to steer clear of autos that have close to two hundred thousand miles on them. Some cars last many more miles than others, but few last very well past the one hundred and fifty to two hundred thousand mile range. Look for rust, dents and dings and keep all of your senses open as you drive the car - look, listen to and feel how the car drives. Pay attention to any unusual sounds or rumbling as though could be signs of current or impending problems that you'll have to deal with.
Once you've found a car that you feel might be right for you, don't just rely on what you've seen - take the car to a reliable mechanic for an inspection. It doesn't hurt to make sure that the mechanic is either one that you have personal experience with or that is an impartial third party - you don't necessarily want to trust a mechanic that has a close relationship with the seller because you may not learn the full truth about the car. A good mechanic will see things that you won't - they will be able to tell you of any problems that need to be attended to immediately as well as any problems that are looming on the horizon. Having a qualified mechanics eyes take a close inspection of the used car you are considering will be the only true way to tell if you are getting a good deal on a car that will last.
When you want to lease a car you must learn how your monthly installments are calculated for your leased car. One of the factors that affect your installments is the residual value. In car leasing, residual value means the expected value of the car at the end of the contract hire period. This is also known as the resale value. When you lease a new car, the EMI calculations will use dealer's retail price and the residual value of the car or the expected value of the car at the end of your lease period. Your EMI is calculated on the difference between the above two values. If the residual value of your vehicle is high, then your EMI would be less.
Many people, even those who lease cars regularly are not aware that the residual value is not something fixed like the dealer price for a given vehicle. There are various factors that affect or determine the residual value of the car. Factors such as the lease period, average annual miles driven, car make, car model, expected future demand and supply, expected variation in fuel prices, inflation rate and economic situations etc., go into the calculation of the residual value. The residual value of the same make and model can vary from dealer to dealer. So when you are shopping for your car lease you must find a car leasing company that offers the highest residual value for the car that you would like to lease.
If the residual value is calculated by financial institutions that are owned by leading car companies such as Ford or BMW, then they are capable of offering higher residual values than other companies. A lease company often sets the residual value of a particular car based on the market trends and also based on their own position in the market. It is always set to the advantage of the leasing company either in terms of being competitive in the market or in terms of getting higher EMI. In the former situation, the customer also benefits because of the higher residual value whereas in the latter situation it is only the vehicle leasing company that benefits. As a customer who is leasing car what you should know is that the residual value has nothing to do with your price negotiation; the residual value lies outside the negotiable price. What this means is that the car leasing company cannot reduce the residual value because of the better pricing that they have offered you. So before getting onto any price negotiation you must find out the residual value of the vehicle so that the dealer does not adjust it to his advantage later. The residual value will basically be a percentage of the MSRP or Manufacturer's Suggested Retail Price taking into consideration various factors those are listed above.
Visit Leasingoptions.co.uk to get best car lease deals. As UK's most reliable car leasing companies they offer the best residual values for the cars that you lease from them.
Both Amy Nutt & Jodie21 Mather21 are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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