Leases are also know the payment of the depreciation which means the monthly payment usually matches the depreciation on the asset. Let’s look at a real example; this calculation is taken on December 24, 2009 from www.Honda.ca.

A 2010 Civic DX-G automatic transmission’s M.S.R.P is $19,780 with FRI/PDI at $1,395, there are additional costs such as air condition tax of $100, making it to be $21,275 before G.S.T and P.S.T. On the road the price will be $24,040

Now, the above example will be a “cash purchase” scenario, without any manufacture’s incentive or dealer discounts, same scenario taken to a lease will cost you the consumer $285 per month before taxes, or $322 per month total. That is with 0 down payment for 48 month and lease rate of 3.9%. So how much would you have spent in 48 month? $322 x 48 = $15,456. The buy back value or “residual” value is $9,890 before taxes, or $11,175 after taxes. Adding together all the cost involved in this type of transaction, your total amount spent on the vehicle would be $26,631. Which is $2,591 higher than cash purchase option. That $2,591 would be the cost of your lease, assuming you have bought out the vehicle at the end of your lease. Not to mention if you didn’t purchase this vehicle it would cost even less.

Financing in this case would be $529 per month also for 48 month term with 0 down payment. $529 x 48 = $25,392 in total which makes it $1,352 higher than cash purchase option. The $1,395 would be your cost of finance over 48 month terms. However the things to consider would be the monthly payment of finance is 63% higher compare to the lease payment. And interesting enough if you take the different of the two payments 529 – 322 = 207 and multiply the difference over 48 months you get $9936. Hey that is awfully similar to your buy out amount right?

So in conclusion if you had the choice to “own” a vehicle via financing, but be careful with the word “own” not until you paid off the entire loan than you truly own the vehicle. But paying close to double the amount in monthly payments. Or you can “lease” a vehicle for a lot less, and a chance for you to return it at the end of your lease without hassle. You can pick the best option for yourself based on your current situation.

This article is brought to you by Ontario Credit Solutions, we specialize in the area of used vehicle financing, and used car sales in Whitby, Durham and Oshawa area for more information please visit us online at http://www.ontariocreditsolutions.com

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Ontario Credit Solutions

What is the minimum duration before I can see an increase in my credit score?

The minimum term when it comes to rebuilding one’s credit history usually takes 12 month, or one year. This is the typical timeline a lender will use to judge your improvement when it comes to paying. So it is crucial for you not to miss any bill payments during this period. It is always good to show initiative without collection agency’s interference. For example you are paying off small debts voluntarily versus ignoring collection phone calls after phone calls.

You shouldn’t seek out any additional loans during this period unless it is absolutely necessary. For example, if you are driving a vehicle that is been financed, don’t try to upgrade to a better vehicle within that time period. Stay with that car, and the monthly payment to show the lender you have creditability and stability. This in turn will improve your financial image and it is telling the banks you are financially matured to take on more responsibilities.

Increase your income! I understand this is easier said then done, but if you have the opportunity to increase your income through a part time job or additional hours. This will directly reflect on your purchase power, in the eyes of the lender the more income you have the more payments you can afford. After all the banks are in it to make a profit through the interest they are charging you, they just want to make sure their investment is secure and protected.

Thank you reading this article, it is brought to you by Auto Credit Financial Canada, to find more information on the topic, please visit us online at http://www.autocreditfinancial.ca

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Auto Credit Financial

Bad credit history usually means a longer wait period for many, this is important step for the banks or lenders to asses your risk factors. When your loan application is processed through the dealer, it is submitted automatically to all the sub-prime lenders at once. Perhaps some of them decided to turn your down, but others have not yet made up their mind. Don’t panic, let the application take its normal course and you soon should hear some encouraging news.

It is important for you not to seek credit during this time, nothing can be more damaging than you trying to submit another application through another dealer within a short period of time. There are things that may help your application, such as added insurances for your loan. By adding “loss of income” insurance, or “disability” insurance, it will protect the bank’s investment or loan. Therefore your application may look more favorable in the lender’s eyes. These add on insurances can cost on average 600-1500 in Canada, but it does offer protection in case you got laid off, or become disabled to pay back your loan. They are not always necessary especially you can proof to the bank your work stability, or have very good credit score. But in the case of bad credit car loan, it can help your application to obtain approval.

Thank for reading this article, it is brought to you by New Oshawa Motors, for more information please visit us online at http://www.newoshawamotors.com or http://ezinearticles.com/?Bad-Credit-Car-Loans-Tips&id=3433177