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Kathy Crupi Finance Manager Phone: 763-513-4711 kathycr@lupient.com | What determines my APR rate? What are the benefits of leasing versus purchasing a vehicle from Jim Lupient Infiniti of Golden Valley? What is the benefit of financing my vehicle with Jim Lupient Infiniti of Golden Valley versus using my home equity line of credit? How much money is required as a down payment in order to finance a vehicle from Jim Lupient Infiniti of Golden Valley? Will I incur any penalties if I pay it off early? At the end of my lease, is it better to purchase my vehicle from Jim Lupient Infiniti of Golden Valley or to buy/lease a new vehicle? What restrictions are there for leasing a vehicle from Jim Lupient Infiniti of Golden Valley? Will I incur penalties if I don’t keep the vehicle to the end of the term or accrue too many miles? What are the benefits of financing a vehicle with Jim Lupient Infiniti of Golden Valley versus paying cash? How do I protect myself from being “upside–down” on my vehicle in case of an accident or if I want to trade out early? How does shopping at many dealers to get a good price and interest rate affect my credit score? | ||||||
What determines my APR rate?The APR rate is determined by many variables. Generally, the newer the vehicle, the lower the rate will be because there is less risk to the banks on taking on the contract. If a vehicle has higher miles, there is a greater chance of mechanical breakdowns, and this becomes a greater risk to the bank because some customers choose not to pay the loan if the cost of fixing the vehicle is too great. Also, the amount you are financing can affect the rate. If a larger amount is financed, it becomes more cost effective for the banks to take on the loan. The biggest factor on the rate is your own personal credit history and your beacon (credit) score. If you have late payments, judgments, bankruptcies, etcetera, this can greatly affect your credit score, and the lower credit score will cause your interest rate to increase. What are the benefits of leasing versus purchasing a vehicle from Jim Lupient Infiniti of Golden Valley?There are numerous benefits to leasing a vehicle versus purchasing a vehicle. If you drive average (15,000/yr) or below, leasing can be a great way to drive the vehicle you want at a significantly lower payment. You don’t have to worry about your vehicle depreciating, because you can turn it in and walk away from it after all of the payments have been made. Also, you have the first opportunity to purchase the vehicle at the end of the lease. Plus, the day you lease the vehicle, you will know what you can buy it for at the end of the lease. If you are driving far beyond the allowed miles, you can buy out the lease for whatever the buyout is, and you will not have to pay a penalty for the miles. There is no haggling or uncertainty about the price. If you own a business, you can lease the vehicle and write off the payments as an expense, which benefits many for tax purposes. Also, you can terminate a lease at any time; however, there may be some penalties involved with this so check with the leasing company before pursuing this option. Many people are able to do an “assumption” with the leasing company, which means they find someone who would like to take over the payments on the lease, and the leasing company will qualify them for the lease; and they assume the remaining payments so you are no longer responsible for them. Another benefit to leasing is that most leases have GAP coverage included. If the vehicle is ever totaled while it is being leased—and your insurance company only pays off the value of the vehicle at the time, but you own more—the GAP coverage will cover the remainder of the balance and you do not have to pay the balance. What is the benefit of financing my vehicle with Jim Lupient Infiniti of Golden Valley versus using my home equity line of credit?Financing guarantees a fixed rate, whereas the home equity lines of credit can be a variable rate, which can fluctuate the payments. It may be more beneficial to keep that line of credit open so you can use your home equity line of credit for what it should be used for – upgrading your house. Whether you choose to add on or remodel, that line of credit will be there for you in the future and not be tied up with a vehicle purchase. How much money is required as a down payment in order to finance a vehicle from Jim Lupient Infiniti of Golden Valley? Will I incur any penalties if I pay it off early?This can vary with every different contract. There are many times when banks will not ask for any money down, if you have very good credit. There are times when they will ask for money because they have a situation where the value of the vehicle may not be very high. Other times they want some type of cash commitment from the customer, which is usually around 10% down. There are no penalties for paying off any installment contract early. Most contracts are now simple interest and there are no penalties for paying off early. At the end of my lease, is it better to purchase my vehicle from Jim Lupient Infiniti of Golden Valley or to buy/lease a new vehicle?This will depend on what the determined cash value at the end of the lease will be versus what your residual value (lease end value) is. If NADA values are very close to the residual value, and you feel that the residual value is a good purchase price for that vehicle, it may be a good purchase option for you. If the residual value is overstated, it would probably be in your best interest to either lease a different vehicle or purchase a new or used vehicle that would better fit your needs. What restrictions are there for leasing a vehicle from Jim Lupient Infiniti of Golden Valley? Will I incur penalties if I don’t keep the vehicle to the end of the term or accrue too many miles?Leasing has a few restrictions. One is that you must adjust the times on the lease to match your driving habits. If you drive over the allowable miles, there are significant penalties you must pay. Also, when leasing the vehicle, you usually cannot modify the vehicle without letting the leasing company know first. They do not allow certain modifications on the vehicle and prefer the vehicle to look pretty close to what it did when you first leased it. You cannot turn the vehicle in with any significant damage on it. If you are in any accident, or if there is any major damage to the vehicle (body or glass damage), you must have it repaired prior to turning it in or you will be billed for the damages by the leasing company. If you decide you do not want to keep the vehicle until the end of the lease, the leasing company will bill you for the remaining unpaid payments even though you do not have the vehicle anymore. They may also have a termination fee, which you would be responsible for. If you are over on the allowed miles, you would also have to pay a penalty of between $.15-.20 per mile plus tax. What are the benefits of financing a vehicle with Jim Lupient Infiniti of Golden Valley versus paying cash?There are many benefits to financing versus paying cash for a vehicle. Leasing frees up your money so that you may use it in other ways that may benefit you, such as medical bills, upgrades to your home or tuition. Financing a vehicle and making the payments on time also increases your credit rating. How do I protect myself from being “upside-down” on my vehicle in case of an accident or if I want to trade out early?There are a couple of ways to protect yourself. One is to finance for a very short period of time and put a significant amount of cash down on the contract so that you are in a great equity position. The other way is to purchase GAP coverage on your retail installment contract so that if you were to get in to an accident, it would protect you from this pitfall, and you would not be responsible for any balance owed if the insurance company does not pay off your balance. How does shopping at many dealers to get a good price and interest rate affect my credit score?Many people don’t realize that shopping at many dealerships can have its downfalls also. Every time you fill out a credit application with a dealership, you are giving them the authorization to run your credit and submit your application to as many banks as they want to get you approved. Numerous inquiries into your credit can actually be harmful by bringing your credit score down dramatically. It is good to shop around—but be careful — you may get more than you bargained for. | |||||||
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