Pros, Cons, and Reasons for Leasing versus Purchasing a Car

Consumers looking to have a vehicle must know about the leasing and buying features. Leasing is an alternative to buying that must be considered. Leasing has become very popular as reports indicate that over half of all luxury cars are leased. Getting a car on a lease costs less since consumers usually only pay for the car's estimated depreciation over the course of the lease period instead of the car's total value. However, there is no car ownership involved since leasing only allows customers to use the vehicle. Here is a list of pros, cons, and reasons for leasing and purchasing of vehicles.
Pros of Leasing

1. Lower costs. Leasers are only charged for the car's depreciation instead of the full value. Leasing provides lower monthly payments in comparison with a purchase finance options.
   
2. Low or no down payment. Leasing requires lower or even no down payments. It is a viable option for consumers that do not have enough cash to purchase a vehicle.
   
3. Simple turn over. There is no selling hassle after the lease term is over. Consumers only need to turn the car in and lease a new car if desired.

Cons of Leasing

1. No equity. Consumers that lease cars get no equity value from the money spent to use the car. The car will never be owned, unless the lease contract allows for a purchase opt-in after the lease term is over.
   
2. Extra insurance costs. Lease insurance doesn't usually include full coverage on stolen or totaled cars. Extra insurance, called gap coverage, can be purchased to cover for these events at higher prices.
   
3. No flexibility. Lease car companies charge big fines to consumers who want to withdraw early from a lease term. Depending on the lease contract, fees can cover up to six months of lease payments.
   
4. Extra charges. Miles are a major factor to consider on lease vehicles. Most lease contracts allow up to 15,000 miles per year at no extra charge. Heavy car users would incur charges of 15 cents per extra mile. This can amount to hundreds of dollars more per year for heavy drivers.

Reasons to Buy a Car

1. Consumers should buy a car for the long-term ownership benefit, which would eventually require no monthly payments. The main aspect to consider would be the final amount spent versus the car's yearly or mileage depreciation.
   
2. Car buyers can drive their cars without any mileage restrictions. Drive without having to check on the odometer on a constant basis like lease drivers.
   
3. Car owners can customize their rides as they see fit. Add any features or details to the car as preferred.

There are many factors to consider on whether to lease or buy a car like available money, usage, and resale value. Check all options to know which one fits your finances and tastes. Experts suggest leasing as an option to financially capable consumers that like to drive new cars every couple of years that otherwise could not afford this alternative.

This article is provided courtesy of Auto Loan Experts, a consumer finance website providing information and tools on auto loans for people with bad credit.

Avoid Costly Retirement Surprises

Retirement planning to estimate resources and individual needs is necessary to avoid surprises. It is an important preparation for the way of life after retirement. Saving and investing are the keys to avoid retirement downfalls. Various tools must be used to save for retirement like 401k, IRA, bonds, securities, mutual funds, and stocks. Prepare to retire in a healthy, happy, exciting and fulfilling way by following the steps listed here.

1. Follow several investment plans. Diversify financial saving accounts to have enough retirement money. Invest in multiple venues to lower risks and secure a better life at older age. Future retirees must not only plan for how their leisure time will be spent like going on vacation or visiting golf clubs, but on the overall lifestyle expenses. All planning should be for at least 20 years of retirement life, but prepare to cover more years. For example, save emergency money to account for unexpected medical conditions.
   
2. Prepare for rising health care costs. Health care coverage is one of the main challenges for retirees. Research done by the Fidelity Investments Company says that a 65 year old couple spends $400,000 in average of their own money by the age of 92, not counting costs for long term medical conditions. Furthermore, Medicare costs are higher than what retirees originally considered. For instance, traditional Part A of Medicare provides inpatient care in hospitals, hospice, skilled nursing access, and home health care free. However, premium charges apply for Part B and Part D of Medicare that cover outpatient services and medications respectively. To avoid paying these added charges, a private Medigap (Medicare Supplemental Health Insurance) coverage is available for approximately $6500 a year. Health care takes a big chunk out of retirement savings.
   
3. Know about Social Security taxes. Approximately 85% of all Social Security benefits are taxable to couples with income of $32,000 or higher. Although taxes are paid throughout working years to provide funds to the Social Security, taxes apply on its benefits too. Moreover, taxes also apply to preretirement savings accounts. For example, money that is taken out of a 401K or traditional IRA plans are taxable at the person’s highest tax rate up to 35%. Retirement savings options that can be accessed tax free is a Roth IRA.

Research and strategy are needed to live a comfortable life during retirement. Many saving plans are available that should be followed at the earliest possible age. Think about where you picture yourself in the future and how to get there. Avoid further surprises during retirement, by using the official U.S. Social Security Administration’s website which provides estimates and calculators on various topics to assist Americans reach the most comfortable retirement life possible.

This article is provided courtesy of Credit Season UK, a consumer finance website providing information and resources on payday loans and other personal credit services.

Tips to Calculate Rate

One of the most common and well-known algebraic equations is calculating distance, time or rate, and if you are one of the many persons worldwide that dread algebra, it can be one of the scariest things to encounter on an examination paper or in your daily activities. Calculating distance, time and rate is one of the simplest algebraic problems however, once you know the formula for working it out. First you should know that all three are related and you cannot find one without information about the other two, so you cannot separate them. With that said, let's look at how you go about solving each problem.

Required Tools

• Calculator

Required Materials

• Pen
• Paper

Instructions

1. The first thing to learn and remember is the basic formula which is that:
2. Distance = Rate x Time
3. Once you know the basic formula then just grab your calculator, punch in the figures and write everything down so you don't forget the answers. If you need to find the distance between two points, you need to know how fast the vehicle will travel between each point (rate) and how long it will take to get from point A to point B traveling at that rate (time). So for example:
4. A car travels at 80mph and drives for 3 hours. Calculate the distance the car traveled.
5. Remember the formula:
   Distance = Rate x Time
   So Distance = 80mph (rate) x 3 hours (time)
   Distance = 240 miles.
6. To calculate rate or time the formula has to be rearranged a bit; to determine how long it will take to get from point A to point B (time) the formula is:
7. Time = Distance/Rate
8. So if you are given the distance (let's say 220 miles) and you know the speed the vehicle will be traveling at (50mph) then you can find how long it will take to travel the given distance at a given rate.
9. Time = Distance/Rate
   So Time = 220miles/50mph
   Time = 4.4 hours
10. The last one is Rate which follows the same pattern as Time, meaning that you divide to calculate both Time and Rate. So if you know the distance between Point A and B (let's use 220 miles again) and you know the vehicle will get to its destination in 4.4 hours, then it is easy to calculate the rate the vehicle will be traveling at to travel that distance in that number of hours:
11. Rate = Distance/Time
    Rate = 220 miles/4.4 hours
    Rate = 50mph

Tips and Warnings

• To make things easier, remember that when calculating Distance you multiply the other two, to calculate Rate or Time the formula is reversed and you divide instead of multiply.
• Always start the formula with Distance to prevent confusion. For instance:
  Distance = Rate x Time
  Rate = Distance/Time
  Time = Distance/Rate
• If you are taking an exam, write down the formula for calculating each thing before you begin the exam so you have something to refer to if you forget the formula.

For more information on performing calculations, read How to Use a Calculator.

3 Methods for Saving Money in this Economy

In today’s economy, not too many people aren't looking to save money. No matter the size of your family, a few extra dollars a week can really make a difference. Here are some tips that should put a few extra dollars in your pocket each week!

1. Children, Clothes and Shoes
When you have children, no matter how many you have, one of the biggest expenses is clothes and shoes. Who doesn’t spend a small fortune on outfitting your kids? It helps when you have younger siblings to pass clothes down to. but there are also some other great ways to save. A great place to start is to start shopping at your local thrift store or consingment shop. These places usually have really good deals on the expensive designer clothes all the kids want. You can usually find wonderful outfits for a fraction of the cost, for the whole family. Another trick fis to always look for coupons. Even when planning a trip to your favorite outlet mall, check for coupons. Most outlets have coupons that will allow you to save even more on discounts already offered. Printable coupons all over the internet take advantage of these for all of your purchases. When shopping for shoes, things can become a little more difficult. If you are lucky enough that your children's feet have stopped growing, take full advantage of end of the season sales, and stock up. If you're looking to buy special shoes or sneakers for sports, plan ahead. These do go on sale, you just need to look ahead a couple months and watch the sales flyers.

2. Credit Cards
You can save major money on your credit cards if you're careful. Call all your credit card company's and get them to lower your finance rates. Let them know you can transfer the balance to another card with a cheaper rate, and chances are they will find a way to match that rate. Next, the big thing to remember with credit cards is always pay more than the the minimum payment. If you are only paying the minimum on a card, all you end up doing is paying the finance charges. Of course the best thing to do is don't use them! Pay cash when possible and you will save a fortune in finance charges.

3. Monthly Bills

The one expense everyone thinks they're stuck with is the monthly bills on things you must have - heat, water, gas, electric, and so on. Make sure you have the best rates on all of these monthly bills. You can shop around, even if you don't know how yet. Sometimes, you can save money by just changing companies. Here again, if a company is offering a lower rate, call your company. In a lot of cases, they will match it. Furthermore, you can always cut back on what you are using in utilities. Make sure you always turn things off, and cut back on the length of showers. Just these little things can add up over time. If you can take your monthly expenses and cut back just ten dollars a week, do this with three or four bills, you just saved a hundred dollars a month.

Of course, this really is just the tip of the iceberg. Do lots of research, there are literally a million resources online for helping to save money. A couple of cents here and there can add up to hundreds in a year's time. If you put a lot of these into effect, you will be amazed how quickly they can add up, and put money back into your pockets.

Melissa Jenkins likes to write about finance, economics & saving money at www.grouphealthinsurance.org.

When to Use Retail Credit Cards

Retail credit cards offer many advantages to customers based on the company that they belong. However, these cards have higher interest rates than non-retailer cards, but provide many benefits with no downside if the balance is cleared on a monthly basis. All retail cards are subject to credit approval and the applicant must meet all conditions. Here is a list of some of the largest stores with their credit card rewards.
Best Buy
The Best Buy retail card has various options targeted for rewards with smart financing. For example, it allows for customers that make a one time purchase of at least $499.00 to pay back in full during the next following 18 months without interest. In addition, if the customer spends $299 at one purchase, there is a six-month period to make a full payment without interest. Meanwhile, purchases under $299 get a no interest grace period of 3 months if paid in full. Best Buy also has a reward zone program where you accumulate points with purchases. This reward program provides 1 point for every dollar that is spent on financial offers and two reward points for every spent dollar on any store purchase without a finance promotion.
Amazon
Amazon’s Visa card provides customers with a $30 off instant gift card for first time users with 1,500 bonus points included. Customers get reward points on all purchases like one point for every other dollar spent, two points for every dollar purchase at eligible locations, and three points per dollar spent on their site. Exchange reward points to pay for full or partial purchases since one hundred points are equal to one US dollar. Furthermore, redeem points for gift cars, cash backs, and travel to name a few. This card is accepted everywhere that Visa is accepted with no annual fees and is great for regular Amazon customers.
Wal-Mart
Wal-Mart has two retail cards available called the Wal-Mart Discover and Wal-Mart credit card. Customers get $20 back on first card acquisitions of $100 or higher at their site. Although, the purchase must be done on the day that the account was opened to receive the $20 rebate. A Wal-Mart Discover card has more perks than the in-store card since it provides up to one percent cash back on purchases. Both cards have no annual fees, no fraud liability, cash advances for purchases, and 5 cents per gallon savings at some of Wal-Mart’s Gas National gas stations.

This article is provided courtesy of Bad Credit Loans Direct, a consumer finance website providing information and resources on personal loans with bad credit and other personal credit services.

Boris Johnson has Big Plans for London Business

London Mayor Boris Johnson is set to enter his second term at 10 Downing Street – and he’s made it clear that economy and employment are among his top priorities. The newly re-elected London Mayor announced his new team along with his intentions to boost jobs in London and encourage strong economic growth in the coming years.
Boris Johnson stated that the issues of London jobs and growth are “at the heart” of his role as Mayor; the city is still feeling the effects of the global recession, and Mayor Johnson is eager to drive the economy forwards and offer Londoners a financial future with greater security.
Boris Johnson has announced the following MPs as key members in his senior team:
Kit Malthouse – Deputy Mayor for Business and Enterprise
Mr Malthouse formerly served as Boris Johnson’s Deputy Mayor for Policing, and will now take up the reins in the Business and Enterprise department. Boris Johnson describes Malthouse as someone with “an outstanding business pedigree” and a knack for getting results even in the most trying economic conditions. The Mayor believes Kit Malthouse will play a key role in realising the vision to create jobs and apprenticeships in the hundreds of thousands.
Richard Blakeway – Deputy Mayor for Housing, Land and Property
Richard Blakeway will be Boris Johnson’s right hand in the property department, heading up Homes for London (which will be replacing the London Housing Board). Blakeway will be leading the development of London’s Mayoral housing strategies and policies.
Munira Mirza – Deputy Mayor for Education and Culture
Munira Mirza has a great deal of experience in working for cultural organisations and charities; this makes her ideal for her position on Boris Johnson’s Mayoral team. In addition to serving at the Deputy Mayor for Education and Culture, Ms Mirza is also a member of Arts Council England, Royal College of Music Council and London Regional Council.
Sir Edward Lister – Deputy Mayor for Planning
Sir Edward was originally appointed Chief of Staff and Deputy Mayor of Planning by Boris Johnson in 2011, and will continue in this crucial role throughout 2012.
During his second term, Mayor Boris Johnson plans to boost job employment and create 250 000 new apprenticeships in support of small business; he also plans to invest £250 000 million in London’s high streets. In light of the recent Presidential election in France, Boris Johnson is also encouraging French businesses to relocate to the UK to avoid President Hollande’s tax rates – and international business analysts will be watching developments with interest.
Nicky Warner is a skilled, passionate writer with a keen interest in London news. Whether it’s the latest developments in serviced offices Manchester or breaking economic news in Marylebone, Nicky’s got all the details!