Buy, Finance Or Lease: How Should I Pay For My New Car?

Whether your old car has given up the ghost or you just like “new car smell,” getting a new ride is a major financial decision.

For many people, used vehicles are a practical option (and are almost always the better financial option). Yet some buyers want a brand-new car, which offers the peace of mind offered by a warranty and no previous owner. Some drivers simply like driving a vehicle with all the latest bells and whistles. If you have settled on a new car, the next major decision is how you will pay for it. Before you start scheduling test drives, take some time to seriously consider whether you ought to buy or lease.

Buying

If you can afford to buy the car you want outright, with no financing, this may be the soundest financial option in the long run. You will not be responsible for any interest or finance charges, and will be able to avoid some of the disadvantages of both financing and leasing.

However, most people don’t have the cash savings necessary to buy the car they want out of pocket. This is why most vehicle owners end up financing their purchase one way or another. Even with financing, however, buying is the better deal versus leasing unless you know you plan to trade in your vehicle every few years. The longer you own a particular car, the more you save over leasing an equivalent vehicle. And, assuming you have a well-made car and do not run afoul of any major accidents, you may have years with no car payments at all once you pay it off.

In addition to the overall cost difference, buying means that you have the freedom to sell or trade in your car at any time. You also have the freedom to keep it as long as you like. This can create much more flexibility down the line than lessees can expect. If you sell a car you own outright, the cash value is yours to use any way you want.

Buying a car also frees you from worry about incidents that can trigger fees in a lease. For example, you can drive the car as many miles per year as you like; go ahead and take that spur-of-the-moment road trip. Wear and tear on the car, whether inside or out, only matters inasmuch as it might affect the car’s ultimate resale value and your own comfort. And if you want to customize your car in any way, the choice is yours.

While these advantages are substantial, purchasing a vehicle does come with downsides. Most dealerships require a higher down payment for a financed purchase than for a lease, in many cases 10 to 20 percent down. Monthly finance payments will also be higher than lease payments on an equivalent vehicle, because you are paying off the entire purchase price, plus interest and finance charges. If you know you are the type of person who will want a new car in a few years regardless of how well your old one runs, you may end up paying enough in finance charges that leasing is the more logical option for you.

If you own your vehicle, you also roll the dice on its potential resale value. Most drivers know that a car starts to depreciate the moment you drive it off the lot. How fast it depreciates, and how its condition fares over time, will become your problem if you plan to trade it in or sell it one day. You will also be responsible for maintaining that condition; after the warranty expires, repairs and upkeep will be entirely your responsibility.

Leasing

Many people think of leasing a car as equivalent to renting a home. While the two arrangements do have some aspects in common, leasing a car is a little bit different from renting real estate.

When you lease a car, you borrow the car’s entire value, less any down payment or trade-in value specified in your lease arrangement, just as you would if you were financing a purchase. As in a regular car loan, you will be charged interest. However, when you lease, you only pay back the depreciation, rather than the vehicle’s full cost. At the end of the lease, you return the car to make up the rest of the loaned amount. Some leases may give you an option to purchase – often known as “lease to own” arrangements – but your lease payments do not mean you have built any equity in the car. First you lease, then you buy, even if you arrange to buy at a discount.

One of the biggest reasons people lease rather than buy a car is because leases offer lower monthly payments for an equivalent vehicle most of the time. You are covering depreciation plus “rent charges,” or interest, rather than paying off the car’s full value. The down payment is usually lower too; sometimes a dealer will waive a down payment altogether for a lease, which seldom if ever happens when financing a purchase.

A lease also relieves a driver of the hassle of disposing of a car once he or she is done with it. As long as the vehicle is in good shape, at the end of the lease you hand over the keys and walk away. This also means depreciation is not your problem. The future resale value is set in the original lease agreement, so if the car turns out to be worth less than expected, it is the dealer’s problem, not yours.

Lease terms are usually such that the car’s factory warranty covers repairs for most or all of period in which you will lease the car. And for some people, the appeal of knowing they will have a new car every two or three years is so attractive that leasing makes sense when factoring in finance charges and interest on an equivalent purchase cycle.

The two major downsides of leasing are lack of equity and lack of flexibility. As with any property you rent rather than own, you do not have the benefit of knowing each monthly payment is building an increased interest in the property. This also means that a lease costs more than an equivalent loan in the long run, even if it is cheaper month-to-month, because you do not recover any portion of your payments in trade-in or resale value.

A lease is also a commitment for a set period of time. You cannot just sell a leased car if you find yourself in a cash flow crunch or return it if you no longer need it. If you do need to end the lease early, the early termination charges will often end up just as expensive as sticking to the contract. Breaking the lease may even cost more once you factor in early termination fees.

You also may find yourself responsible for an assortment of fees when you return your leased car. If you drive over the mileage limit, which is typically 12,000 or 15,000 miles per year, charges can add up quickly. The same is true if your car shows wear and tear beyond what the dealer considers “normal,” which is a major reason why drivers with young children or pets often find leasing impractical. Lessees will also want to be sure they are diligent about oil changes, tire rotation and other upkeep to avoid more than “normal” wear. And if you have made any modifications to your car, they must be reversible or you will be charged for residual damage.

Leasing a car typically involves more complex paperwork than does buying, even if you finance. Moreover, you will almost always need excellent credit to qualify to lease at all; buyers with bad credit have to shoulder higher interest rates but can typically still get a loan unless their credit is truly awful.

Unless you buy your new car outright, you will need to pay financing charges whether you buy or lease. But in general, finance charges are much higher for lessees than buyers, though in most states this difference is partially offset by a sales tax break on lease payments. Lessees may also need to pay lease initiation fees at the beginning of their lease or disposal fees at the end, expenses that buyers will not need to worry about.

Other Concerns

If the major sticking point for purchasing is the relatively higher monthly payment, you can consider opting for a longer term loan to bring the payment down. However, because cars depreciate over time, longer loan terms increase the chance of going “upside down” on the loan – that is, finding yourself in a situation where your vehicle is worth less than what you owe. Longer loan terms also often mean you will end up paying more interest over the course of the loan. Still, even with these concerns, a longer loan may offer advantages over leasing for many drivers.

Whether you buy or lease, you should always negotiate price with your car dealer. Some experts claim you will get a better deal if you negotiate as if you plan to buy the car, then say you plan to lease after you and the dealer settle on a price and trade-in value.

If you plan to finance a purchase, you should also beware of simply accepting the dealer’s finance offer without shopping around. Apply to more than one lender so you can compare options. Do not only consider the interest rate, but also the loan term and any other fees, such as a prepayment penalty.

Financing Options For Entrepreneurs In The Import Business

Entrepreneurs who want to break into the import business will face various hardships. Establishing their name and getting the trust and loyalty of new customers and suppliers are just two of the challenges they need to face and successfully overcome.

Getting sufficient funds or money to support the start and ongoing operations of their import business can also be hard as well. In the import business, you need to have the means to pay your supplier.

The good news is that there are various options entrepreneurs can consider when they are looking for ways to finance their import business. These options include:

Accounts receivable factoring. Under this financing option, your company’s accounts receivables would be sold to either an accounts receivable financing company, a commercial finance company, or a bank at a discount of 80 to 90 percent of their face value. In return, the factoring company would give you a check wherein a fee of two to three percent has already been deducted. You can then use this money for import financing. When you factor accounts receivables, it is now called an asset-based loan.

Purchase order financing. This financing solution is quite similar to factoring accounts receivable. Under this option, you would assign or sell your purchase orders to a bank or commercial finance company. This company will then take over all the processes that involve billing and collecting money from your customers. Once your products are delivered, your customers will pay the bank or commercial finance company. A portion of this payment will be allocated to the financing company and the remainder will be given to you. In general, purchase order financing costs more than traditional bank loans. However, if you are unsuccessful with getting a loan, this is an option you have to consider.

Inventory financing. Under this financing solution, you would use the current inventory of your present business to get a loan. This loan will enable you to buy the goods from suppliers abroad that your customers have been waiting for. With this option, you will be able to increase your inventory without adversely affecting your cash flow. Banks and financing companies offer three types of inventory financing: floor planning, blanket inventory lien, and field warehousing.

Finance – How To Beat The Auto Dealers

Finance. Pretty broad term. If you look up the word finance in the dictionary you will find the following definitions.

Noun

1. The science of the management of money and other assets. 2. The management of money, banking, investments, and credit. 3. finances Monetary resources; funds, especially those of a government or corporate body. 4. The supplying of funds or capital.

Verb

1. To provide or raise the funds or capital for: financed a new car. 2. To supply funds to: financing a daughter through law school. 3. To furnish credit to.

Certainly more than enough material to cover. An associate of mine in the early years of his career after graduating college with a finance degree spent a good number of years in this field. He certainly has a wealth of knowledge to share on a variety of financial topics. So in this first of a 3 part series he is going to enlighten you on the verb side of this equation. More specifically definition number 1. To provide or raise the funds or capital for. Like financing that brand new car of yours. He offers this observation and advice.

Financing anything can be a costly proposition especially if you don’t know what you’re doing. This is especially prevalent in one area especially, financing a new car.

Rather than bore you with a lot of information that you don’t need I am going to provide you with what information you DO need so that when going to finance that brand new luxury sedan it doesn’t end up costing you a fortune.

1. The first thing you have to do is determine your financial situation. How much can you afford to pay each month? Financing a car is a long term proposition. Most new car loans run for about 60 months, or 5 years. That’s 5 years of your life that you need to be prepared to meet a financial obligation or your car ends up repossessed So don’t finance a payment that is more than what you can afford each month.

2. Decide what car you want and what you’d be willing to accept. Maybe you want that new Lexus but at $1200 a month financing it’s just way beyond your means. Maybe that $500 a month Chrysler is more in your pocket book range. Sometimes we have to settle for what we can afford. Remember, a car is a means of transportation. You spend less time in your car than in your place of employment or your home. Maybe you just want to get something that will get you to where you want to go.

3. Do your homework. There are a boat load of car dealerships out there. Don’t just settle for the first one you see. Shop around. Compare prices of competing dealers. Many times if you bring an ad in from a dealer that is offering the car you want for less money you can get an even better deal from the second dealership. Don’t worry. Everybody does it.

4. Don’t settle for the rate the dealer gives you when financing your car. Ask him what the buy rate is from the finance company. If you think that rate is too high tell him you want him to try another finance company. If you’re still not happy with the rate then try your local bank. Many times you can get a better rate just by looking around.

5. Don’t let the dealer load you up with things you don’t need like a tow package, undercoating, rust proofing and a lot of other junk. This will just add to the price of the car and the amount being financed.

6. Put down as much as you can afford. This will lower the amount financed and therefore lower your monthly payments.

If you follow these simple 6 steps you will find that you end up leaving the dealership with a monthly payment you can live with.

Fashion Careers – Job List in the Fashion Industry

A career in the fashion industry sounds glamorous and lucrative. Have you consider getting into the fashion industry, but might think that you cannot manage it? There are so many different roles and positions that you can play in the fashion world. One does not necessarily be a fashion designer but still be able to have a very success career in the fashion industry.

Being able to make a living with things you like is always enjoyable. If you are a fashion fan and love to see beautiful clothing, accessories or sketches around you, you should consider starting a career in the fashion world. Below are some key roles in the fashion world where you can take part in – from design, production, marketing, to many more.

Designing
This is one of the most high profile jobs in the fashion industry. Designers are responsible for conceptualizing their ideas on trends and realizing them on their final products. Designers can be employed by companies which own a group of designers, or work for their own brand and production line, or, even as a freelancer providing designs for difference companies.

There are several types of fashion designers:

1. Apparel designers: Obviously these are clothing designers, ranging from lingerie, sports wear, casual wear to high fashion couture, for men, women and kids.
2. Footwear designers: They design footwear for men, women and kids from a style point of view, as well as from a foot-health’s perspective.
3. Accessory designers: Accessories has a broad definitely – from handbags, hat, eyewear to gloves, scarves and jewelry pieces.

Production
Production involves the sampling of garments and accessories until producing the final pieces that would deliver to shops and customers. This massive work involves a team of various professions:

1. Merchandiser: Merchandisers play a key role in the production process of a fashion product.They are responsible for buying raw materials for production, selecting fabric, textiles and trims. They have to make decisions based on pricing, quality and latest trend and innovation of raw materials.

2. Technical Designers: Technical designers are the one responsible for doing fittings during the whole sampling to production procedure. They might not be the one who designed the garment but are the experts in providing alternative to the garment to improve the fitting of garment.

3. Pattern Makers: Pattern is the basis for a garment to be sewed. Pattern makers produce and maintain patterns for garments that designers have sketched out. Pattern makers are key persons in realization of a garment.

4. Pattern Graders: The sizing of garment starts with the pattern grading. Pattern graders are experts in creating size specifications for different sizes. They are vital persons in for any fashion brands, as a consistent sizing across products can maintain customer loyalty and confidence.

5. Fitting Models: Ultimately garments and footwear are made for putting comfort and style together. Fitting is a crucial part in fashion industry and the most precise fitting is to use model as the body for fitting.

Many companies have their own dedicated models for fitting their lines, who has the exact sizing measurement the brand requires. Sometimes you would see ads looking for sampling models, from kids, men, women to plus size models.

6. Quality Control Specialists: Quality control is of top importance for any sort of products, and is no exception in fashion industry. Quality control specialists look at the quality of raw materials, like peeling, shrinking and color fading of textile and overall quality of a fashion item, for instance, the overall assembling of an accessory item.

7. Planners: Fashion planners coordinate closely with designers, merchandisers and buyers to decide the production plan for the coming seasons. They look at both production and marketing side while paying close attention to the latest fashion trend.

Marketing
Marketing is as important as making a perfect piece of fashion item. Whether it’s marketing in a wholesale or retail side, people in fashion marketing bears the mission of promoting the fashion item into this fast changing world.

1. Fashion Buyer/ Retail Merchandisers: Product merchandisers are the ones who buy ready-made products to be sold in a shop like department stores. These merchandisers conduct researches and analyze market trend, the relative customer wants and stocks. They bear huge responsibility in terms of profit making, since having the eye to buy the right product for sales can make a difference in revenue.

2. Showroom Sales Specialists: Some brands own their showrooms, displaying their collection for fashion buyers (wholesalers) to make their orders. Compared with retail sales, showroom sales specialists should know their seasonal returning customer better and be able provide detailed information on the selling collections.

3. Retail Store Manager/ Boutique Owners: Retail shop manager, sales and boutique owners are the first line personnel facing retail customers like you and me.

Other Fashion-related Professions
Besides in the field of designing, producing or marketing a fashion item, one might be attracted by other positions like as a writer of fashion magazine, online blogs and fashion event management etc. Below is a list highlighting the other possible jobs related to fashion industry:

1. Fashion Writers: Writers or freelance writers can write for magazines, online blogs or sites on reviews, trends and recommendations. Fashion writers can also develop into fashion magazine editors.

2. Personal Stylists:Some department stores provide personal styling services while some private customer would employ personal stylist giving them recommendations in personal styling.

3. Fashion event Management/ Public Relations: There are nameless fashion events which requires professional public relations and event management personnel to take care of. There are PR companies specialized in holding fashion related events.

Grasp the Opportunities!
Besides the above mentioned careers in the fashion industry, there are still many other opportunities like photographer, costume designer and catalog/ fashion show models, etc. One of the most reachable way to keep yourself updated with job opportunities and fashion trend is to be active in fashion forum and subscribe to fashion magazines.

How to Become a Successful Fashion Designer

If you are like me you live and breathe fashion. You are constantly inspired with so many new designs racing through your mind, so many you can’t seem to get them all down quick enough at the pace they arrive. You constantly dream of the day your fashions will be on the fashion runway with the lights beaming brightly overhead, the cameras flashing everywhere and the audience being completely mesmerized by your incredible designs. You can’t stop thinking of the day you will open a magazine or watch the Oscars and see a famous celebrity in one of your breathtaking designs. Your book shelf is stocked with fashion books and magazines, and you absolutely can’t resist visiting textile stores to view all the latest fabrics, decorative beads, rhinestones and trims.

It’s this ever present dream of being a successful fashion designer that has you work day and night on your designs in most cases for many years without pay and working a job to pay the pills which is brutal torture, when all you can think about is living and working in fashion.

Famous fashion designers come from all walks of life there is no one system to follow that will have you become the next famous fashion designer. Some have graduated from elite fashion schools and some have never attended fashion school. Some have undertaken a fashion internship with a fashion house and others have made their own designs in their basement. The only elements all these fashion designers have in common is they had an intense passion for fashion, were able to design fashions highly sought after and connected with someone who gave them the opportunity to break into the fashion industry. It is essential in becoming a successful fashion designer you get you and your designs out there as much as possible, as how will anyone know about your fashions if they can’t see them?

In getting your fashions out there here are a few things you can do:

1. We are not usually good at everything some of us are great at designing clothes but lack the sewing and pattern making skills. It is here you can partner with someone who shares your passion for fashion and has the skills you lack. It is in the bringing together of different skills you can create a real product that can be showcased.
2. In having a fashion line of 14 outfits you can apply to your local fashion week. In the USA: New York, Los Angeles and San Francisco all have fashion weeks. These fashion weeks attract many editors, journalists and local socialites who will see your fashions and potentially give you the exposure you need to get known.
3. Many city night clubs hold fashion shows, find out what night clubs hold fashion shows and contact them as to how you can be apart of an up and coming show.
4. Locate fashion boutiques that cater to the fashions you design, first make a trip to the stores to look around, if you can see your clothes fitting in well with the store, find out who the owner is and ask if they would be willing to have some of your fashions offered for sale in their store. You will be amazed at how many store owners are willing to work with you. I walked around San Francisco in the Nob Hill district and had my fashions placed after visiting and discussing my product with four boutiques. In having your fashions displayed you will receive valuable insights as to whether or not your designs are in demand and if you need to change your designs to increase sales. It will also give you free exposure to the public. When your fashions do sell you can present this to investors who are more than willing to invest in your line, when you prove the existence of a strong demand for your fashions.

If you are struggling to create your fashions due to the lack of capital, connections or all the skills required, you can visit: [http://www.cluehut.com] where it’s free to create a profile stating what you need and who you are hoping to connect with in achieving your fashion dream. You can also browse and connect with others who like you have created a profile offering opportunities where together you can become a great success in the fashion business.

Hot Hot Hot UK Fashion Trends

The Latest Fashion Trends

The latest cool trends in fashion to hits London high street fashion shops are taking shoppers by storm. London high street shops and boutiques are showcasing the new fashion styles that everyone will want to be seen in. Harvey Nichols in Knightsbridge, London has dedicated the entire fourth floor to the hottest fashion labels around. Trendsetting designers featured on Harvey Nichols’ fourth floor fashion haven include London designers like Peter Pilotto and Meadham Kirchhoff.

Current hot looks featuring designers such as Peter Pilotto are being dubbed as the label to watch in 2010. International cool fashion label on display at Harvey Nichols include Brian Reyes and Cacharel, under the talented creations of ex-Lanvin designer C├ędric Charlier. Graphic prints at Holly Fulton have made an impression on the UK fashion trends scene.

Chic, cool and stylish Rochas, Stella McCartney and Celine went with the eighties look for the latest trend fashion styles in 2010. Like spring fashion trends in 2010, winter cool fashion trends for 2010 are about making a brazen and bold statement. The traditional stilettos was suddenly passed over for the hot new and more trendy kitten heels. Low heels are the latest trend so give your high heels a miss in exchange for ladylike kitten heels and slingbacks for winter.

Winter Fashion Trends

In 2010, the eighties bodysuit made yet another comeback. The return of this sassy eighties look also saw the return of endless group-exercise activities. Biker shorts and bumbags were the big news for the nineties revival look in the spring. Donna Karan brought back the eighties bodysuit is a stunning fashion trendsetting way to mark 25 years in fashion. Festival chic style makes dressing up and staying cool a cinch for the London fashionistas this year.

Not to be out done by the ladies apparel, fifties-style knickers were revived by Dolce & Gabbana. All over London, fashion celebrated a reissuing of classic designs from the glamourous fashion days gone by. Sweet trends including delicious Liquorice Allsorts Designers took their inspiration from Bassett’s sweets.

Wearing gloves this winter is sexier than ever if you go elbow length. Speaking of length, taking your midi line just below the knees is the hot new trends for dress wear. When in doubt, go with lots and lots of buttons as they are back with a vengeance.

For those really in the fashion know, Net-a-porter celebrates 10 years in business. The iPhone phenomenon brought fashion to your finger tips with hot fashion apps. Making shopping on your hand held devise just a matter of pressing a few clicks. The handy fashion apps also means that you can get the latest in fashion trend news via daily tweets.

The Importance of Following Fashion Trends

If you’re into fashion, you’ll understand why the world celebrates Fashion Week like it was Christmas. You’ll understand why they trip over their own feet trying to get a front-row seat and ogling at the super models who stride down the runway in the latest seasons’ collections by the several of the world’s renowned fashion designers. Fashion trends are something fashionistas cannot live without. It is their lifeline to what is hip, cool, fresh and fierce.

Fashion tells us a lot about a person, the way they dress, the way they put their outfits together indicates the kind of person they are on a daily basis. Even people who profess not to care about how they look still tell a story about who they really are or what they strive to be. One cannot say that they don’t care about fashion but not look a certain way, whether it’s to their detriment or success.

Fashion is not just wearing clothing that protects us from the elements. Fashion trends tell us what to wear when we are down in the dumps and when we are high up in the clouds. Fashion trends inspire chemistry and can be the start of a very beautiful love affair, as well as the end of one.

If the only permanent thing in the world is change, then this is certainly manifested in the world of fashion where change occurs as fast as a blink of an eye. It can quite challenging and confusing to follow fashion trends but follow them is what people do and do well in most cases. Case in point would be the purported fashion icons who are able to whip up outfits from the most casual to the most glamorous at any given day of the week or at any time of the day for that matter. They can be having a bad day but you wouldn’t know by their perfectly put-together outfits and the smiles they flash at the paparazzi. Paris Hilton could have just broken up with her latest guy during the morning while wearing designer jeans and top and party that same night in a silvery wisp of a dress.

But just who exactly starts these fashion trends and why do people follow them? Musicians like rock stars, athletes, actors and actresses and even political figures have been credited to start fashion trends. When someone influential decides they want to tell the world that being Emo is cool, expect the rest of the world to embrace the Emo trend and to see the world from one eye. People follow fashion trends are what categorize us as individuals or groups, what makes us stand out or what defines us to the rest of society. Fashion trends are frippery that makes us look like the rest of the world.

Another reason why people follow fashion trends is because they want to participate in a never-ending popularity contest. Trends in high fashion or “haute couture” are always carefully scrutinized and if found wanting, you can be sure to see it everywhere you look – on the runways, on TV shows, in the movies and even on your next-door neighbor. The trends can have price tags that can feed an entire third-world country but people would still go ahead and get the look. It all boils down to the fact that we all want to be liked and loved and this is one surefire way to have just that.

Catching Up With Latest Fashion Trends

Fashion is an integral part of your life. It is something which you cannot ignore as it affects your personality. However, it is something which is ever changing and you need to change with it too. There are so many funky, beautiful as well as classic fashion trends that one can follow. The best way to keep updated about the latest fashion trends is by browsing various fashion magazines. Some of the popular names in this regards is Elle, Vogue, Cosmopolitan etc. These magazines are very helpful in giving a clear idea about what’s happening in the world of fashion. Also, fashion magazines reveal information about various stores selling the latest fashion clothing and accessories.

Another great way to keep updated about latest fashion trends is to watch various fashion shows. In these shows, designers display their latest fashion trends. Also, you can check various fashion websites and blogs that provide you with latest news about trends, materials and wears. Moreover, you can also take advice by fashion experts online. Following fashion is not only a necessity but also it’s a fun activity. After all, everyone wants to look good and impress people around.

You should never hesitate from wearing what you want to wear. Also, you should never copy the latest fashion trends blindly. It’s not that everything will look good on you and thus, you should try to figure out the outfits that make you look great. The outfit that you are wearing shall be comfortable. There is no point in wearing a dress which is uncomfortable or difficult to carry. The most important thing in fashion is how one is able to carry his or herself. Fashion accessories are also a great addition to your personality. You will find a host of such accessories for both men and women available in the market. Some of the current fashion trends include big chain bags, striking studs and big pendants. High heel shoes, zipper boots and boots having large buckles are also a hit among teenagers these days. Military style clothing and accessories are still extremely popular among masses.

Lastly, your clothes speak a lot about your personality. You have to understand that fashion is not only about looking good, but is much more than that. As there is gigantic range of choices available for you, just follow these simple tips and you will be always updated about the latest fashion trends.