Car leasing is growing by leaps and bounds, and it’s understandable why. The costs of original cars, trucks, and SUV’s have grown steadily over the past several years. Therefore, it’s more economical to lease a new vehicle instead of buying one. Especially since vehicles have a shorter estimated life span than they used to have. I can remember when you could buy a brand new car or truck and drive it with the odometer reading well over a hundred thousand miles. It’s estimated the new vehicles that are being manufactured today will last about six years.
Leasing, or renting a vehicle for a long period of time, is an affordable way for many Americans to drive a brand new car, truck, or SUV. Leasing terms are always written in months, and they usually run from twenty-four months to forty-eight months.
If you want to change vehicles every two years or so, it can be a relatively easy business move to turn your current car, truck, or SUV back into the dealership. As long as you have met your contractual obligations, you can drive out the same day with another imprint new leased vehicle.
Basically, when you lease a car, truck, or SUV, you’re responsible for gasoline, oil changes, lube jobs, tires, and all other maintenance and upkeep. You also have to pay for license plate renewals, insurance, and the rest of the costs associated with driving a vehicle.
This type of transportation arrangement is especially good for people who drive their vehicles for business purposes. There are tax breaks they can take advantage of.
However, there are disadvantages of leasing a vehicle instead of buying a new one. For example,
the terms of a vehicle lease agreement can restrict your use of the vehicle. There is most always a mileage limit. You’re allowed to drive the leased vehicle for a certain number of miles every
calendar year. Exceed that amount, and you’ll be charged for the excess miles.
On the other hand, when you consume a brand new vehicle, the lending institution loans you the money and places a lien on your title. You then make payments on the loan until it’s completely paid off. You’re responsible for all of the costs associated with driving a vehicle, of course, honest like in a leasing contract. But, you can drive your car, truck, or SUV as many miles as you choose to every year.
Once the loan is paid off, the bank or credit union removes the lien, and the vehicle is completely yours, free and clear. You can then keep it, sell it, trade it off, give it away, or do whatever you want with it. Your loan payments have turned into equity in your vehicle. But, lease a vehicle, and, at the end of the lease, you will calm owe money. You can turn the vehicle back into the dealership, or, you can pick it, but the trace is often pretty hefty.
As you can tell, there are both pros and cons to leasing or buying a new vehicle. The final decision will depend on your financial status and your personal situation. Myself, I’ve never leased a vehicle because I like to outright own my cars. Plus, I’ve heard more horror stories about leasing than I’ve heard praises. A friend of mine leased a 2000 Ford Explorer. By the time it was four years old, it was falling apart, and it needed expensive repairs. But, her lease wasn’t up yet. So, my friend decided to terminate her existing lease and rent a novel Ford Explorer instead of paying for the repairs. She ended up “buying” her old lease out and paid “Early Termination Penalties.” The whole deal cost her several thousand dollars. Between the passe lease and her new lease, she ended up with high vehicle payments that she couldn’t afford to make.
In conclusion, don’t just lease the first vehicle you see. Compare vehicle makes, terms, and rates first before you make a final decision. Then, when you’re ready to construct the commitment, read the entire contract. Earn sure that you understand it before you ticket on the dotted line.
Filed under Automotive Business Insurance by on Feb 27th, 2011. Comment. 
Globalization has, admittedly, altered the way people live and work. Being closely associated to the globalization of markets and production, globalization signifies the integration of technology, communication networks, economic values and culture. National markets integrate into one single marketplace that bears the characteristics of a global market. National firms seek for optimum world locations to accomplish optimum productivity and produce global products. Trade barriers are lowered, facilitating the free flow of goods, services and capital between countries. Specialization of production becomes possible without imposing trade restrictions and governmental intervention. Capital market is liberated and foreign direct investment creates new job opportunities.
However, globalization has also its negative effects, which are mostly related to employment.
One of the most prominent examples is the U.S. automobile industry. Since the 1970s, the U.S. automobile industry was represented by the Big Three original equipment manufacturers (OEMs), namely General Motors Corporation, Ford Motor Company, and Chrysler Corporation. In the 1980s, the Big Three began to face fierce competition from a growing number of foreign competitors. This gradually led to a loss of market fragment to even 70%, huge volume decline, and intense price competition. Moreover, car production remained stable and operating margins were significantly squeezed. The industry dynamics requested a solution that would lower labor costs. Besides transitioning from Midwestern higher-labor states to Southern lower-labor states, the U.S. automobile suppliers sought for lower-labor cost countries abroad.
In the name of globalization, unskilled workers in the States have suffered a huge attack from foreign competition and have seen their wage rate going down overnight. The outsourcing of production to lower-cost countries in Latin America, Eastern Europe, and Asia has greatly affected low-skill, blue collar manufacturing jobs in the Western world. Challengers of globalization claim that, by moving production processes to lower cost countries, wage rates of unskilled workers at home are being attach at stake.
At the same time, there is a remarkable global movement that encourages the hiring of temporary skilled workers, especially in countries that face skill shortages. Until these countries are able to develop their own pool of skilled workers, they have to import labor force from abroad, thus greatly affecting the wage rate of skilled workers at home. The only “positive” aspect is the temporary nature of these transfers and the increased mobility of these skilled workers in several countries abroad.
Besides, the lowering of trade barriers, opening of new global markets, and advanced information and communication technologies had a profound effect on the U.S. job market. Nearly 2.6 million workers have lost their jobs in 2008 due to business closures and layoffs, raising unemployment rate to a record high of 7.2%. This was mainly the result of the decision of numerous organizations to shift their operations to foreign countries with lower labor costs.
In conclusion, in today’s competitive business environment, there is microscopic doubt that careers are no longer driven by upward moves that can lead to higher income, and/or status. Globalization has brought about technological advancements that have reduced the demand for new workers. Besides, on the grounds of specialization, employees are required to accomplish specific tasks based on their expertise. When their specific tasks are over, the organization depends on their skills to accomplish other significant tasks, which, however, do not guarantee permanent employment. People may do several temporary jobs and get paid much less than their skills and expertise. Moreover, they are deprived from health insurance and pension benefits; if they don’t lose their jobs at all.
Sources:
http://www.turnaround.org/Publications/Articles.aspx? objectID=6932
http://money.cnn.com/2009/01/09/news/economy/jobs_december/
Filed under Automotive Business Insurance by on Feb 22nd, 2011. Comment.
