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Archive for January, 2011

One of the main reasons why more and more businesses and individuals are choosing Car Leasing as a means of financing a new car or van is that they are fed up of the high depreciation rates that affect most vehicles nowadays. Most cars end up being worth between 30% and 50% of their purchase price after three years, with few exceptions, so this can represent a huge capital loss to the owner.

One of the benefits of Car Leasing is that it can be much more cost-effective, especially if you take advantage of a special deal or manufacturer’s offer, as the total cost of your rentals over the contract period is usually less than the amount that the vehicle has depreciated over that time.

However, there are many more benefits of leasing a car than the depreciation issue.

Here are the main Benefits of Leasing A Car
* Fixed monthly payments – easy budgeting of your motoring costs
* All Servicing & Maintenance costs and Roadside Rescue can be included
* Road Tax is usually included for the duration of your lease
* Flexible terms and mileage allowance to suit your needs
* A brand new car every 2 or 3 years, avoiding the costs of running an old vehicle
* Low initial outlay compared to purchasing a vehicle
* You can often afford to drive a better car than if you were buying a vehicle
* No worries about the depreciation risks associated with ownership
* Avoid the hassle of disposing of a used vehicle every time you change your car
* No need to trail around the dealers looking for the best part-exchange price
* Free delivery (and collection) of your new lease car to your home or office
* You are able to put your Personalised Registration Number on the lease car
* You can take your lease car abroad on holiday or business
* Simply hand the vehicle back at the end with no further commitment
* Flexibility to extend the lease at the end of the term for a further 6 or 12 months
* You may be able to purchase your lease car as one of your End Of Contract Options

Additional Car Leasing Benefits for businesses
* Up to 100% Tax Relief available on the lease rental payments
* VAT registered businesses can claim 50% of the VAT back on cars (100% on commercial vehicles)
* All the VAT can be reclaimed on the Maintenance element of your car lease
* Contract Hire vehicles will not appear on your balance sheet, improving your accounts
* Improve cashflow by taking advantage of the low initial outlay available
* Fleet Management and Accident Management Services can be part of your contract
* Reduced administrative costs, especially when leasing cars with Maintenance

With the current state of the economy, it is safe to say that most people have at least some amount of debt. Credit card debt is one of the most common forms of debt incurred by individuals and families. Sadly, credit card debt also carries some of the highest interest rates on the market. For individuals and families with debt from multiple credit cards, it may seem like a hopeless uphill battle. Fortunately, there are a couple of options available that allow people to consolidate credit card debt and lower their monthly payments.

Cash Out Refinancing

One such option for consolidating credit card debt is through money out refinancing your home. Cash out refinancing involves taking out a new mortgage for an amount higher than what you currently owe on your home. The difference in the two amounts will be remitted to you in the form of cash, which can be used to pay off your credit card debt.

You may also be able to obtain a lower interest rate than what you had previously had on your original mortgage.

Home Equity Loan

Another way to consolidate credit card debt is by taking out a home equity loan. A home equity loan involves the borrowing money by using your home as collateral. This loan is basically a second mortgage. This type of arrangement is useful for people who wish to borrow large amounts of money or who have bad credit. Requirements for acquiring for this type of loan aren’t as strict because the lender has a relatively good chance of getting the borrowed money back. If the borrower doesn’t pay, the lender simply places a lien on the home. In addition, when an individual’s home is on the line, he or she is likely to make every effort to pay the lender on time and in full.

Differences

There are several notable differences between money out refinancing and a home equity loan.
A home equity loan is a second loan taken out separate from the first mortgage, while cash out refinance replaces the first mortgage entirely. Also, the interest rate on cash out refinance is typically lower than the interest rate offered for a home equity loan. Finally, with cash out refinance, you will most likely have to pay closing costs that can amount to hundreds or even thousands of dollars, but no such closing costs are associated with home equity loans.

Choosing the Right Option

If you are looking to consolidate credit card debt, it can sometimes be difficult to decide whether to take out a home equity loan or do money out refinance. Choosing the right option depends a lot on your individual circumstances, as well as several external factors. If you have a lot of equity in your home or the rate you are being offered on cash out refinance is higher than your current rate, it may be better for you to consider a home equity loan instead. However, if you are being offered an interest rate that will substantially lower your monthly payment, cash out refinance is probably the better choice.