Loans

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  • Best Luxury Cars for the Buck

    Having something break on a nearly new car could lead you to love it more. Lexus IS 250 owners can attest to that. Lexus' dealerships offer some of the industry's best perks (in-showroom cappuccino machines, among them) and the brand's service department is known to work overtime for customers. Lexus is just one of several luxury brands offering over-the-top dealership service that separates their vehicles from the rest - and instills buyer loyalty and satisfaction.


  • Hybrid lease payments may rise soon

    Hybrids are attractive vehicles in this era of $3-plus gasoline. Even though the revised method for calculating federal fuel economy has knocked down the estimated mileage on all cars, especially some hybrids, gas-electric hybrids still are the most fuel-efficient vehicles available. But do they make long-term economic sense? Most savvy buyers know that hybrids cost at least $2,500 more than comparable gas-only vehicles, which means it would take years to recoup the added cost. Many buyers are willing to make that commitment.


  • Skip the 20% Down Payment

    Conventional wisdom holds that it's best to buy a home by paying 20% of its price up front. That spares the buyer the expense of private mortgage insurance (PMI), and provides lower monthly payments to boot. Now that the subprime lending crisis has erupted, hurting profits in investment firm Bear Stearns, homebuilders like Pulte Homes, and lenders such as Citigroup, Freddie Mac, and Countrywide , the responsible 20% down payment seems even harder to argue with.


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  • Payday lending adds to Cleveland foreclosure woes

    At the East Side Organizing Project in Cleveland, six home owners recently went in for group foreclosure counseling. When asked if any had taken out payday loans, four hands shot up. A payday loan is a small-dollar, short-term loan with fees that can add up to interest rates of almost 400 percent. They're generally taken out when the borrower is caught short on cash and promises to pay the balance back next payday. If it sounds like legal loan-sharking, it's not. "Loan sharks are actually cheaper," said Bill Faith, a leader of the Ohio Coalition for Responsible Lending.


  • Things to Never Say to a Dealer

    The dealership experience can be extremely stressful, but it doesn't have to be. You could know everything there is to know about the cars you're considering, but that's only a fraction of the buying process. If you want that seductive new sedan at a good price, you're probably going to need to know what to say - and more importantly, what not to say. Some people loathe the whole car-buying experience simply because they anticipate getting conned. A few hundred dollars isn't a big deal on the price of a luxury car, but it's the idea of smart shopping and that sense of getting a good deal that's especially important. For luxury car buyers - notoriously labeled the shrewd shoppers - a good deal is icing on the cake.


  • The Lease Switch

    With home foreclosure rates rising and economic volatility the norm, it's easy to understand why more people might want to get out from under a $400-per-month car lease that stretches on for two or three years more. Companies such as LeaseTrader.com and Swapalease.com offer such services, connecting people who want to get out of a lease with those eager to get a deal on a short-term arrangement, but consumers should proceed carefully before paying hundreds of dollars for a lease transfer. The idea of escaping a lease is gaining in popularity. LeaseTrader.com says it expects to handle 35,000 transactions this year, up from about 20,000 in 2006.


  • Hype Alert: The Real "Best New Car Warranty"

    Chrysler recently instituted a "lifetime" - yes, your lifetime - powertrain warranty for its Chrysler, Dodge and Jeep vehicles. If you're shopping for a car and comparing warranty coverage, "lifetime" sounds tough to beat. But when you break down the numbers in light of how long most people own their cars, most warranties, including Chrysler's, end up being pretty much the same as their competitors. The exception are Hyundai and its Korean sister-brand Kia. Hyundai made a splash in 1999 when it introduced a 10-year, 100,000 mile powertrain warranty. Of all the major non-luxury car brands out there, Hyundai and Kia are still the only ones with a warranty package that's materially better than the rest.


  • 10 Ways to Outwit a Car Dealer

    "Sticks and stones may break my bones, but words will never hurt me." That's all well and good on the playground, but it's a different story in a car showroom. That's because auto dealers have their own colorful slang that says something about how the car business operates; some pitfalls to watch out for; and, in some cases, how some of the more cynical dealerships see the customer. Many car dealer terms can be applied to customers. Quite a few, like "Minnie the Moocher" are not compliments. (In the Cab Calloway song, Minnie the Moocher dreams she has $1 million in nickels and dimes, which she counts a million times.) A "mooch" is a customer who wants everything, without paying for anything. Not something the dealer likes to see.


  • When a $38,000 Car Costs $44,000

    With high gasoline prices drawing so much attention lately, the often harsher overall cost of auto financing is being ignored by consumers who are stretching loans on new cars to as long as nine years. Low monthly payments and no-money-down deals have long been used to shore up car sales in a slumping market. But auto buyers who opt for longer loan terms are more likely to wind up owing more on their car loans than their cars are worth. Car dealers and banks say people in this position have negative equity, but the popular expression is that they are "upside down." Last year, about 29% of car buyers who traded in a vehicle to buy a new one owed more on their car loans than their cars were worth, compared with 20% five years earlier.


  • How to Not Get Stuck With a Clunker

    Recent used models -- those that are less than five years old -- can be a real value because you get a nearly-new car still in fine working order for a fraction of the new-car price. And you'll pay less for collision insurance and taxes too. The trade-off, of course, is that you don't know if a pre-owned car has any hidden problems that will come back to bite you in the wallet down the road. Finding a used car isn't tough -- they're in plentiful supply these days at dealers and from private parties. You can search for cars from both at Autotrader.com and Cars.com, and find a wealth of information; from how many miles the car has on it to how it's equipped. Still, buying used often feels like a gamble. How do you know you're getting a good deal? How do you avoid ending up with a lemon?


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