I think BMW has taken an interesting approach with the M235i, allowing it to be a sports car or a luxury coupe, depending on which options are fitted. For me, I think about what the M235i could be with the enthusist options fitted, and some basic modifications done — a 450hp (370rwhp) sports car that will show an Audi R8 what a set of taillights look like.

2015 BMW M235i Reviewed (10/10)
Posted: July 11, 2014 | Author: Nicholas Walker | Filed under: CAR REVIEWS, Sports and Executive Cars | Tags: BMW, Everyday Cars, German Cars, Luxury Cars, Performance Cars, Sports Cars |2 Comments

2015 BMW M235i

Back in the 1980s, the BMW 3 Series really put BMW on the map. It drove like a sports car, but was a practical and economical for everyday use. Generation after generation, the 3 Series built up its reputation, but now it has grown in proportion so much that it isn’t really the same sort of car that it originally was. This is where the 2 Series comes into the equation, as a car that is much more the flavor of the first few generations of the 3 Series. If you want a new BMW that is more like the E30, E36, or E46 generation 3 Series, then the 2 Series may be the answer for you. Let’s have a look at the M235i, the top dog of the current 2 Series lineup.

The 2 Series is not the first BMW to undercut the 3 Series. The 2 Series comes to us as the direct replacement for the previous-gen 1 Series. BMW re-branded it as a 2 Series because a smaller, front-wheel drive model will be taking the 1 Series nameplate in the near future. I know this is all very confusing, and very trivial, but welcome to the auto industry where the bean counters have to find a way to make their superfluous jobs matter.

The BMW M235i is a fantastic sports car of the modern variety. What I mean by that is that it utilizes the best aspects of modern automotive technology, but that it also may leave some old-school driving purists wanting for more.

BMW M235i tail lights BMW M235i Wheels

One of the best illustrations of what I mean is the M235i’s steering. It has electronically assisted power steering, which reacts quickly and accurately to inputs, but is also pretty muted in terms of road feel. To most drivers it will feel very “sporty,” but driving purists will complain that they can’t feel what the front wheels are doing. Really, though, the M235i is a road car, not a race car, and the electronic-assisted steering solves the expensive problems that previous-gen BMWs had with power steering pump failure. In my opinion, it’s a case if cost-benefit analysis, and I think most buyers would be willing to forgo feeling every nuance of the road surface in exchange for not having to deal with the thousand-dollar repair bills at the dealer.

As for the driving experience overall, the M235i is quite quick, stops great, and goes through corners like a true Bimmer should. Its single-turbo 3.0L inline 6 engine gives you quite a nasty kick up the rump when you stand on the accelerator, and it has quite a nice noise, despite much of it coming through the speakers. As usual, BMW’s official horsepower claim, 320hp in this case, feels a bit conservative when you’re actually behind the wheel. Real-world chassis dyno tests show around 300 rwhp on 91 octane with the automatic transmission, so that means the M235i’s engine is actually producing more in the neighborhood of 360-380hp. It’s about as fast as the Alpina B7 I drove last year, which had over 500hp, but also another 1500lbs to haul around. The M235i is a solid performer, surely right up there with a Porsche Cayman S or 911 Carrera.

For buyers wanting even more performance, the M235i is a great platform for aftermarket modifications and tuning. It’s single-turbo N55 engine has a lot of room left in it, and 430-450bhp (~370whp) is possible with just basic intake, exhaust, and tuning mods.

BMW M235i Side View

The M235i’s chassis felt sublime through corners. It turns in eagerly, and stays very neutral as you push on. Oversteer is easy to provoke, being rear wheel drive, but the car I drove was a bit neutered by its lack of a limited slip differential (LSD). With an LSD, the driving dynamics if the M235i would’ve been complete, and you can have one fitted on your M235i as a dealer installed option for around $2,800. Sure, it’s kind of expensive, but if you plan on pushing the car’s handling limits, then it’s money well spent.

The other issue I had with my test car was its lack of a manual gearbox. Yes, the ZF 8 speed is about as good as an automatic transmission can get, but it still neuters much of the driving experience as far as I’m concerned. Having said that, the paddle shifters do work nicely, and they do exactly what you want when you want. For people who don’t know how to drive a stick, the auto still provides a lot of fun, but if you know how to drive manual, then there is really no other option. This is a sports car, so you “should” be rowing your own gears.

BMW has made a really fun car here, one that is capable of pleasing all types of drivers depending on which options are fitted. Being a purist myself, the manual gearbox and LSD would be mandatory for me, but I know that much of BMW’s clientele will enjoy casually driving the car with the automatic and the open differential. The M235i’s wide appeal is important to BMW’s bottom line, and as long as us enthusiasts can have the proper driver’s version we want, then there’s no reason to complain.

BMW M235i Headlights BMW M235i Rear BMW M235i Badge 2015 BMW M235i Coupe

One of the biggest improvements BMW has made with the 2 Series over the old 1 Series is the styling. The old 135i was too adorable looking, and all you wanted to do was pinch its little cheeks all day! Being cute is fine for a Mini Cooper or a Mazda Miata, but the 135i was a pretty serious performance car. At least for me, as a guy, I don’t was to roll up in my fast car and have people go, “aww look how cute it is!” The 2 Series looks much better for the sort of car that it is. The styling has grown up, but it still looks fun and sporty, especially with the M-Sport body kit on the M235i.

In addition to its sporting driving dynamics, the M235i is also a very well rounded, practical package. It only comes as a two-door at this point, but it seats four people comfortably and has a pretty decent trunk in the back. Also, benefitting from its modern technology, the M235i is among an increasing number of 300+hp sports cars that are capable of topping the 30MPG mark. The original BMW 3 Series was a very “Have your cake and eat it too” sort of car, and the M235i continues to build upon that approach.

BMW M235i Interior BMW M235i Adaptive Sport Seats BMW M235i Paddle Shifters BMW M235i Trunk

So I haven’t had many negative things to say about the M235i, and that’s because it is the very essence of what a modern BMW should be. Even Consumer Reports loves it, and they hate most fun cars with a passion.

It should come as no surprise that I’d recommend an M235i to anyone who wants a sporty car in the +/- $50,000 price range. It is definitely the best driving BMW south if an M3, and is probably the best of all of BMW’s 35i models. I honestly wouldn’t even consider a 435i with the M235i around for less money.

$50,000 isn’t insanely cheap, but it’s also not that expensive for a car like this either. Pricing starts around $43,000 and maxes out around $57,000. The enthusiast-focused M235i that I would get, with the manual gearbox, LSD, and a few options, comes in right around $52,000, but if you just want the basic car with a manual and an LSD, you can be out the door for around $47,000.

When you consider that the BMW M235i is a sports car that will run with the Porsche Cayman S ($64,000) and even the 911 Carrera ($84,000), the Bimmer is nothing short of a total bargain. In fact, you can’t even buy a bare-bones Cayman S for the price of a fully loaded M235i.

BMW M235i Exhaust BMW M235i Coupe front view

As for other competitors, the new Ford Mustang lineup could pose an interesting challenge to the M235i because supposedly it’s going to be more of a sports car than a muscle car this time around. We’ll have to see how it fares when we try the new Mustang out later on.

Buyers wanting a fast luxury car, but not necessarily a purist’s sports car, will also consider the Mercedes CLA45 AMG and the Audi S3. Both the Merc and the Audi offer potent all wheel drive performance, and both have four doors to the Bimmer’s two doors. Pricing for the Mercedes starts at around $47,000, and the Audi’s pricing has yet to be officially announced, but is expected to be in the low $40,000’s, much closer to the BMW’s starting price. I haven’t driven the S3 or CLA45 AMG yet, so I can’t tell you which I prefer, however, I can tell you that you cannot go wrong buying an M235i because it is well worth the money.

BMW M235i Rear View

So BMW’s traditional formula seems alive and well in the modern age of the automobile. Old-school driving purists will still prefer the feel of late-model BMWs, but for most buyers, the M235i will be fantastic.

I think BMW has taken an interesting approach with the M235i, allowing it to be a sports car or a luxury coupe, depending on which options are fitted. For me, I think about what the M235i could be with the enthusist options fitted, and some basic modifications done — a 450hp (370rwhp) sports car that will show an Audi R8 what a set of taillights look like.

The M235i may not be a full-on M-car (wait for the M2 for that), but it is certainly a fantastic BMW sports car in the proper sense. I’d say it’s the best BMW model you can buy for $50 grand, and it’s also a contender for the best sports car you can by for $50 grand. Sometimes BMW makes me wonder what they are thinking (cough, X4, cough), but the M235i is BMW at their best.

2014 may go down in history as the year of the recall

 

. Many automakers, from General Motors to Nissan, have issued recalls covering large groups of vehicles. This morning, Toyota became the latest automaker to issue a massive recall with the announcement that a total of 6.39 million vehicles around the world are marred by a serious defect. Of those vehicles effected, 1.772 million are located in the U.S.
The recall related to the largest number U.S. vehicles (1.3 million) deals with the driver side airbag module. The module is connected with a spiral electrical cable assembly that can purportedly become damaged when the steering wheel is engaged in a turn. If the assembly is damaged, the air bag warning lamp will illuminate and the driver’s airbag may not deploy in the event of a accident.
The vehicles involved in this recall include:

• 2009-2010 Corolla
• 2009-2010 Matrix
• 2008-2010 Highlander
• 2009-2010 Tacoma 
• 2006-2008 RAV4 
• 2006-2010 Yaris

Toyota is currently working on an improved spiral cable that will be sent out to dealers for replacement. Once the company has the replacement cable ready, it will distribute letters notifying affected owners.
The smaller recall touches 472,500 vehicles and pertains to the seat rails for the front seats. On the driver’s seat (and passenger’s seat of three-door hatchback models), the locking mechanism has been found to contain a faulty spring. The springs have the potential to break and cause the seat not to lock into position correctly, thus increasing the chance of sustaining an injury during crash.
The vehicles involved in this recall include:

• 2006-2010 Yaris hatchback
• 2007-2010 Yaris sedan
• 2008-2010 Scion xD

Much like the recall above, Toyota is currently working on a new seat track assembly that will be sent to dealers for replacement. The company will notify owners once the assembly is ready to go.
If you have any questions related to these recalls, you can contact Toyota’s Customer Experience at 1-800-331-4331 or visiting www.toyota.com/recall. for all recalls http://www.safercar.gov/

Would you love to buy the vehicle you always wanted at the absolute lowest price possible?

Posted on April 5, 2014 | Edit

Wouldn’t you love to buy the vehicle you always wanted at the absolute lowest price possible? How about at dealer wholesale prices? These are the same New or pre-owned vehicles that end up at your local Lexus, Mercedes, Porsche, BMW, Acura, Infinity, Cadillac and Carmax dealerships… ONLY THOUSANDS OF DOLLARS LESS!, Today ! You have an Easier Way ! With Ur Auto Advisor You know before you Arrive at the Dealer They have the exact vehicle you want , At the Exact price you want to pay ! You will know Exactly what your Interest Rate will be and what If any Finance Products are needed. In and out in approximately 1 Hour ! We have over 30 years experience Assisting our Clients by providing Unbiased Advice and Guidance Acquiring your Specific Vehicle at the Lowest Price. New or Used , We are committed to providing our clients with an Easier, Professional and Enjoyable Buying or Leasing Experience. Contact us at 954-934-7075 , https://www.facebook.com/urautoadvisor to learn more about how we can help – We be happy to hear from you! ***Congratulations!*** Frank Toomey Another Ur Auto Advisor Happy Client on his purchase 2011 Hyundai Sante Fe With 44,120 miles / 10 yr / 100,000 mile drive train warranty and remainder of 5 yr 60,000 bumper to bumper warranty. Used pre-owned Certified Sticker listed at @$23,999 I Paid 16,297.00 Saving over $7000 dollars with Ur Auto Advisor. I had been looking for months and David at Ur Auto Advisor found my Dream vehicle in 24 Hrs Thank very much without your services I would have never received this great deal or the drama free experience Thank you. David

Wouldn’t you love to buy the vehicle you always wanted at the absolute lowest price possible?

Wouldn’t you love to buy the vehicle you always wanted at the absolute lowest price possible? How about at dealer wholesale prices? These are the same New or pre-owned vehicles that end up at your local Lexus, Mercedes, Porsche, BMW, Acura, Infinity, Cadillac and Carmax dealerships… ONLY THOUSANDS OF DOLLARS LESS!, Today ! You have an Easier Way ! With Ur Auto Advisor You know before you Arrive at the Dealer They have the exact vehicle you want , At the Exact price you want to pay ! You will know Exactly what your Interest Rate will be and what If any Finance Products are needed. In and out in approximately 1 Hour ! We have over 30 years experience Assisting our Clients by providing Unbiased Advice and Guidance Acquiring your Specific Vehicle at the Lowest Price. New or Used , We are committed to providing our clients with an Easier, Professional and Enjoyable Buying or Leasing Experience. Contact us at 954-934-7075 , https://www.facebook.com/urautoadvisor to learn more about how we can help – We be happy to hear from you! ***Congratulations!*** Frank Toomey Another Ur Auto Advisor Happy Client on his purchase 2011 Hyundai Sante Fe With 44,120 miles / 10 yr / 100,000 mile drive train warranty and remainder of 5 yr 60,000 bumper to bumper warranty. Used pre-owned Certified Sticker listed at @$23,999 I Paid 16,297.00 Saving over $7000 dollars with Ur Auto Advisor. I had been looking for months and David at Ur Auto Advisor found my Dream vehicle in 24 Hrs Thank very much without your services I would have never received this great deal or the drama free experience Thank you. David

Buying a Used Car Beware ! Check That Vehicle for Recalls

Buying a Used Car Beware ! Check That Vehicle for Recalls #nightline #2006chevycobalt Several Deaths Due to Ignition Issues ! http://www-odi.nhtsa.dot.gov/owners/SearchSafetyIssues http://www.gmclaimslawyer.com/  http://www.motortrend.com/cars/2006/chevrolet/cobalt/recalls/  Recall Date FEB 10, 2014 Component ELECTRICAL SYSTEM:IGNITION:SWITCH Model Affected Cobalt Potential Units Affected 2190934   

TEN CARS PEOPLE WONT BUY

auto dealer inventories are at five-year highs. The most important effect of this for consumers is that dealers and car companies will soon open up another aggressive round of discounts and attractive financing to move the poorest selling vehicles off the lots.    Inventories, probably larger due to poor weather, are actually big enough that the car companies even have deals on their best selling vehicles. General Motors Co. (NYSE: GM) has seen poor sales of its flagship Chevy Silverado pickup, and the discounts it has been forced to offer are extraordinary to the point where the media has battered Chevy’s sales prospects. Ford Motor Co. (NYSE: F) has been discounting its flagship F-150 pickup, the top-selling vehicle in the U.S. based on unit volume.  The brands that are in real trouble are those which have models with average inventories (also known as “days to turn”) which stretch more than 100 days. Car companies usually have 60-day inventories across all models. Inventories of hot- selling cars can have average as little as 20 days.  The 10 models automakers have the most troubling clearing have average inventories which range from 106 days for the Ford Flex to an extraordinary 148 days for the Fiat 500. Not surprisingly, the 10 cars on this list have incentives which range as high as $6,508 for the Cadillac ATS. It is notable that the Fiat 500 has done so badly. Fiat now owns Chrysler, and the Italian company hope to leverage its new beach head in the U.S> to bring in one of its most popular cars in Europe. Clearly, that has not worked  Based on Truecar data for average days on lot calculated on February 14, these are the “days to turn” and “average incentive:”     Make     Model     Feb ’14 Average Days to Turn     Feb ’14 Average Incentive 1.  Fiat     500     148     $1,907  2.   Buick     Verano     143     $3,178   3. Chevy     Sonic     138     $1,577   4.   Cadillac     ATS     137     $6,508    5.   Volkswagen     GTI/Rabbit/Golf     137     $1,963    6.   Dodge     Dart     124     $2,210    7.   Hyundai     Genesis     119     $3,145    8.  Chrysler     300 – Series     114     $4,942    9.   Chevy     Tahoe     107     $7,377  10.     Ford     Flex     106     $4,502 

How Do Car Dealers Make Money?

 

 

 

 

 

 

Car dealerships love to tell their customers what a great deal they’re getting. If sales managers, finance officers and service advisors were to be believed, there’s no way the business would be able to survive. So how do car dealers make money? There are a lot of time-tested techniques (and often new tricks) to ensure the sales manager doesn’t literally lose his shirt. Make no mistake: each little nook and cranny of a Car Dealership is a potential profit center.

Many consumers assume that new car sales answer the question, how do car dealers make money? It’s an easy mistake: all those shiny new vehicles lined up, twinkling like jewels on velvet, each with a price tag ranging from reasonable to absurd. That’s got to be a moneymaking magic formula, right? But how do car dealers make money from the sale of new cars It’s not as straightforward as it seems. It’s now such common knowledge that car buyers should aim to buy a car for invoice price (the dealer’s cost of obtaining the car from the manufacturer) that sales managers simply expect it, which doesn’t leave the dealership much profit.  But new cars are usually gussied up with optional packages and services, each with a separate add-on fee. These fees are almost always negotiable, but not everyone knows that – if the buyer is unaware, or simply relents under the salesperson’s pressure, it’s profit for the dealer.

 

Dealer cash and dealer holdbacks are both cash bonuses provided to the dealer by the manufacturer, but they serve different functions. Most manufacturers work dealer holdbacks into the sale of each car: it’s usually 2 or 3 percent of the invoice price or MSRP that the dealer pays up front when the car is purchased, and then is given back to the dealer in the form of a quarterly rebate after the car’s sold. Dealer cash is an incentive intended to boost the sale of slow-selling cars, supposed to be secret but usually found online. These incentives also help explain how car dealers do make money from new cars when profit margins are otherwise tight.

 

How do car dealers make money on Used Cars? First, they hope that buyers are so distracted by negotiating on the new car that they forget to negotiate on the value of the trade-in. Dealerships pay wholesale price on trade-ins but sell for retail, a practice which, depending on the car and the current market conditions, can sometimes allow for thousands of dollars in profit. That means that there can be a lot of room to negotiate. Experts advise car buyers to treat the new car purchase and trade-in sale as two completely separate transactions, no matter how much the dealership attempts to muddle the process. Confusing the buyer is a key strategy in how car dealers do make money, and that trade-in will become someone else’s new pre-owned car.

 

Selling trade-ins on the used lot means big profits for dealerships, often netting more cash than the sale of new cars. The typical profit on the sale price of a new car is less than $1000 (after the dealership’s costs are subtracted from the sale price) but dealerships often count on several thousand dollars of profit from the sale of a trade-in.  So how do car dealers make money this way? From a customer’s perspective, used cars are trickier to buy than new cars. New cars come on a level playing field, with its entire brief past spelled out on the window sticker and every detail available with a few minutes of online research. But supply and demand for used cars (which determines their market value) is much more difficult to track, and there are many more variables (such as service history and accident history), which are generally undocumented (often unreliably, if at all). And there’s no sticker to declare what a dealer paid for a used car, so the sales manager has the upper hand in negotiations while the buyer fumbles with guesswork to find a financial comfort zone. It requires a lot more effort to get a good deal on a used car. And after a price is settled upon, and the salesperson has assured the customer it’s the perfect purchase… well, why not be sure this perfect pre-owned car will stay perfect with the help of an expensive extended warranty or service contract?

 

Which leads to the finance and insurance office, another important factor in how car dealers do make money. According to the National Automobile Dealers Association (NADA), more than a quarter of the profit from each sale (new or used) was thanks to the financial wizardry of the F&I office. A favorite trick is to secure an interest rate for a customer, and say only higher rates were available. The lower rate is purchased from the credit lender, the higher rate is sold to the customer, and the markup is profit. Unlike, say, a credit union, a dealership has no incentive or obligation to find a customer the best interest rate. It is not currently illegal for dealerships to obscure loan rates (through misdirection or outright dishonesty). How else do car dealers make money? By not quite telling the whole truth.

 

In addition to insurance and warranties, products such as paint protection and interior fabric sealants might be offered in the financing office, if they haven’t been added to the car already. Despite fancy names, they are mass market, brand name products. How do car dealers make money? They mark up these services like mad, sometimes at a few hundred percent profit, and try to convince the buyer that the results can’t be matched at home.

 

How do car dealers make money on repairs when service departments are constantly performing warranty work and the overhead in the service bay is high? Well, service departments aren’t always dishonest, but the service advisor, who appears to empathize when describing costly repairs, is working on commission. Parts are replaced and routine services are performed early, and the hourly rate is padded. Service is so profitable that a desperate sales manager will be gracious on a rare loss-leader new car sale (in which the dealership doesn’t make any profit) in hopes that the buyer will come back for repairs and maintenance. In 2008, the NADA deduced that service departments and parts sales account for about 55 percent of a dealer’s total profits, on average.

 

And the waiting area – where customers sit as their sales documents are drawn up or their cars are repaired – is often adjacent to the parts and accessories department, which is decorated with lifestyle merchandise like sweatshirts, bath towels, baby onesies, desktop paperweights, and other accoutrements intended to increase brand loyalty – at a profit.  This boutique-like atmosphere looks wholesome, but it, too, is a factor in how car dealers do make money. They hope the feel-good vibe of New Cars will extend to a desire to outfit the whole family. How does a car dealer make money? Think about it, and enjoy that golf umbrella. Want to Save Thousands ? http://wwwurautoadvisor1.dudaone.com/ check this link !

How to Inspect the Car Your Buying Before And After the Sale

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A thorough car inspection is an absolute must if you are planning to buy a car.  Never purchase a car without vehicle inspection including the exterior, interior, and taking it on a test drive.  One option is to take the car to a reputable mechanic for a professional used car inspection but you can also do a preliminary car inspection yourself. The following tips are for used car inspections, but can still be useful for new car inspections, as well.

 

Car Inspection: Exterior

1)     Examine the paint and body.  Is the paint faded or worn?  Also, look for scratches, chips, cracking, dings, and rust.  Do not forget to look at the roof during the vehicle inspection.  Are there any dents or other obvious body damage or defects?  Make sure any trim and/or molding on the car is secure and not coming loose.  Look for faded or cracked rubber, especially when doing a used car inspection.

2)     During the car inspection, look at the windshield and all the windows for cracks, holes, and scratches.  Do the same for the side mirrors, and also check that they are securely in place and adjust properly.  Make sure the plastic covers over the headlights (running lights and high beams), brake lights, turn signals, and parking lights aren’t faded, cracked, or broken- and are all working properly. Remember when doing a used car inspection that fogged headlights are a common problem and that they can be replaced.

3)     Check the condition of the tires.  Look for damage, like deep scratches/scrapes, creases, or other abnormalities during the vehicle inspection.  Make sure the tread for all tires are also in good condition.

4)     Check all the doors, trunk, and hood on the car. Inspection that they all open and close securely and that all the seals are in good condition (not faded, cracked, ripped, or torn) is not just to see how good they look but how safe they perform. Also, make sure inside the trunk is in good condition.  Is the upholstery in good condition?  Are there any rips, stains, holes (in the upholstery or through the frame), or other signs of damage?

5)     A layman’s car inspection will always include a general check of the overall condition of the engine.  It should have a fairly clean appearance, and the belts should be in good condition (not faded or cracked). Look for signs of leaks, such as splatter marks or engine surface fluid build-ups in the case of a used car.  Inspection of the levels and the cleanliness of all the fluids (oil, transmission, coolant, etc.) is a good idea.  For example, when you check the dipstick during a car inspection, the oil level should be almost full and not completely black in color. 

Car Inspection: Interior

1)     Look at every inch of the upholstery (including the floor mats and under them) for stains, rips, burns, fading, and wear.  Make sure the ceiling headliner is tight and securely attached, with no signs of sagging or movement- try to pick and pull on it. Don’t be shy! You might buy this car that you are doing a car inspection on.

2)     Make sure all the seats and belts function properly.  Sit in every seat, make sure they are all comfortable, or, even better, bring the family and let them help you.  If there are removable seats, make sure you able to take them out and re-install them without problems during the car inspection.  You don’t want to find out after purchase that they don’t work because you forgot to check during the car inspection.

3)     Look for signs of flood damage when doing a used car inspection.  This is very important, because it is not uncommon for vehicles to be taken from disaster affected areas to be sold elsewhere.  Look for water lines on the body of the vehicle, in the trunk, or on the interior upholstery.  Also, look for mildew and/or moisture.  If you find any signs of flood damage, do not buy the car.

4)     Check that all the electrical equipment and components in the car are working properly.  Test the radio, other dashboard features, dome and rear view mirror lights, electrical outlets (cigarette lighter receptacles), power windows, sun/moon roof, etc.

5)     Test all the other, non-electrical, components and features in the vehicle, like windows rollers, sun visors, center and/or passenger consoles, manual roof windows, seat adjusters, etc.
  

Car Inspection: Test Drive

1)     With the hood open, start the engine and make sure it starts right away.  Listen for any unusual noises, like rattling, knocks, pings, backfires, etc.  Next, inspect the engine while it is running.  Keep listening for unusual noises as you look for obvious mechanical problems.  Are the belts running smoothly or do you see any signs of leaks around the hoses, radiator, or engine seams?

2)     Before you leave on your test drive, turn off the ignition.  Wait a few minutes and restart the engine.  You want to make sure that the car restarts right away.

3)     You should spend a minimum of 20 minutes on your test drive during a used car inspection and even more if possible.  Divide your time between city (stop and go) and highway driving.  Reputable sellers will not have a problem with this, so do not consider buying any car that you are unable to test drive on the highway.  Since you already tested the radio, do not turn it on for the test drive.  You’ll want to be able hear the engine and other vehicle noises for a real car inspection. Listen for possible problems, without distraction.  As you are driving (safely), make sure you really test the vehicle’s acceleration, brakes, cornering ability, etc.  In fact, try to find a safe location where you have plenty of space where you can accelerate quickly and brake hard to test the car’s stopping power.

4)     If possible, try to get on the highway for the beginning of your test drive.  That way you can make sure the car still runs smoothly and the engine doesn’t run hot after highway driving.  Also, once the engine warms up, test the heater to make sure it blows hot air.  Then, test the air conditioning to make sure it works, as well.  Leave the air conditioning on longer to see if the engine temperature is affected.

5)     When you get back from your test drive during you car inspection, let the engine idle for at least five minutes, again, to test the engine’s temperature.  Take that time to ask the salesperson any questions you might have.  When you turn off the ignition, wait a few seconds and start it again.  If you want, repeat once or twice more, waiting longer between restarts.

6)     After your test drive, take a few minutes to re-inspect the engine, and the rest of the vehicle.  If you are interested in buying the car, make sure you ask thesalesperson for a vehicle history report, like AutoCheck- or obtain your own report if dealing with a private seller.  Again, any reputable sellers will not have a problem with this as part of a car inspection.  Sometimes, major damages from accidents or flooding are very well hidden by previous owners, so do not buy a car without one.  Also, it is a really good idea to have a mechanic do a car inspection on the vehicle for signs of major repairs that were performed “off the books”.  If you have a regular mechanic or repair shop, you might get a vehicle inspection for free. Hopefully, you don’t have to remind them of your loyalty.

7)     You should now have a very good idea of the vehicle’s condition and your interest in buying it from doing a proper car inspection.  You should also have an idea if the car is priced fairly, or if you need to negotiate on the price.  Use your knowledge and assert your confidence to get the car you want for the price you want.  

Find one you like ! Let us do all the work ! You save time,money and Drama and you pay only after we get your Dream Vehicle at the Lowest Price ! We cover all aspects of the purchase,locating, price,Interest rate, invoice for New, Carfax for Used. New or Used No One Will get you a better Drama Free Experience ! Email urautoadvisor@gmail.com with your desired vehicle Info options, ,zip code,miles,colors and within 24 Hrs we send you 2 vehicles to pick from ! The Best Part Is You Pay Nothing Until You Pick Up Your Vehicle ! That,s Our Guarantee ! We Look Forward To Hearing From You. David Faver/ Your Automotive Solutions Specialist !

Find one you like ! Let us do all the work ! You save time,money and Drama and you pay only after we get your Dream Vehicle at the Lowest Price ! We cover all aspects of the purchase,locating, price,Interest rate, invoice for New, Carfax for Used. New or Used No One Will get you a better Drama Free Experience ! Email urautoadvisor@gmail.com with your desired vehicle Info options, ,zip code,miles,colors and within 24 Hrs we send you 2 vehicles to pick from ! The Best Part Is You Pay Nothing Until You Pick Up Your Vehicle ! That,s Our Guarantee ! We Look Forward To Hearing From You. David Faver/

Buying vs. leasing basics

Last updated: February 2014

 

 

 

If you are deciding whether to pay for a new car or just get a loaner, check out some of the major differences between buying and leasing. To calculate the financial difference between a loan and lease deal, see our calculators and worksheets.

In general it makes financial sense for most to buy a vehicle especially if you drive a lot of miles and have kids that may dirty or damage the interior.

 

	Buying	Leasing
Ownership	You own the vehicle and get to keep it as long as you want it.	You don’t own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.
Up-front costs	They include the cash price or a down payment, taxes, registration and other fees.	They typically include the first month’s payment, a refundable security deposit, a down payment, taxes, registration and other fees.
Monthly payments	Loan payments are usually higher than lease payments because you’re paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.	Lease payments are almost always lower than loan payments because you’re paying only for the vehicle’s depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.
Early termination	You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.	If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.
Vehicle return	You’ll have to deal with selling or trading in your car when you decide you want a different one.	You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.
Future value	The vehicle will depreciate but its cash value is yours to use as you like.	On the plus side, its future value doesn’t affect you financially. On the negative side, you don’t have any equity in the vehicle.
Mileage	You’re free to drive as many miles as you want. (But higher mileage lowers the vehicle’s trade-in or resale value.)	Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. (You can negotiate a higher mileage limit.) You’ll have to pay charges for exceeding your limits.
Excessive wear and tear	You don’t have to worry about wear and tear, but it could lower the vehicle’s trade-in or resale value.	Most leases hold you responsible. You’ll have to pay extra charges for exceeding what is considered normal wear and tear.
End of term	At the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next vehicle.	At the end of the lease (typically two to four years), you’ll have to finance the purchase of the car or lease or buy another.
Customizing	The vehicle is yours to modify or customize as you like.	Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage, you’ll have to pay to have it fixed.

Understanding leasing

To decide whether or not to lease your new car, it’s important to understand how the financial mechanics of leasing compare with a loan. In some ways, leasing is just like taking out a loan. When you lease, you borrow the entire value of the car (minus any trade-in or down payment). For example, when you drive away in a $36,000 leased vehicle, you’re immediately tying up the entire $36,000 that the finance company gave the dealership, the same as if you had bought the car with a loan. And just as with a loan, you’ll be charged monthly interest on that amount, minus what­ever you pay back along the way.

And it’s the amount you pay back that’s the biggest difference between a lease and a loan.

With a loan, your payments are based on the entire cost of the vehicle. For a 36-month loan on that $36,000 car, for example, the principal por­tion of the payment averages $1,000 a month. But with a lease, you pay back only the vehicle’s decline in value—the depreciation—while you’re using it.

Since that $36,000 vehicle might depreciate about $18,000 over that same 36 months, the principal portion of the monthly lease payment would be based on $500, about half as much as for the loan. Of course, at the end of the lease, you have to return the car (unless you come up with the remaining $18,000 of the residual value to buy it).

Note that in both cases, the net principal you pay back is $18,000.

 

Add finance charges

In addition to the principal portion of the payment, there are also finance charges, the interest rate to borrow money. These are much higher for a lease because you’re paying back the cost of a leased car more slowly, $500 a month compared to $1,000 with a loan. That leaves a greater unpaid balance that’s subject to that finance charge month after month.

Put another way, in exchange for those lower monthly payments that come with a lease, you pay significantly higher finance charges compared to an equivalent loan, about $1,435 more for that $36,000 car. That additional cost would be partly offset by the sales tax break lessees get in most states. Also, lessees can invest the extra amount that otherwise would go toward a monthly loan payment.

Taken together, those benefits might offset the higher lease finance charges. But even then, lessees often have to contend with various fees and other extra costs, including lease initiation and disposal fees, which can add hundreds more to the total cost.

All these additional costs are multiplied if you keep leasing whenever your old lease runs out, although some may be waived through lease-loyalty programs

Vanishing leases?

All this has been further complicated by the decisions of some manufacturers and independent finance companies to elim­inate or curtail their lease offers.

The companies are reacting to high gas prices, which have undercut the resale values of many SUVs and other gas guzzlers. This means that those vehicles returned from expiring leases are worth much less than the finance companies anticipated when the leases were first created. Put another way, the depreciation lessees were charged in their monthly pay­ments didn’t cover the actual decrease in vehicle value, a good thing for the lessees but bad for the leasing companies, which now must sell those used vehicles at a loss.

The finance companies don’t want to get caught in that trap again. Companies that continue to lease will want to make sure the vehicles are properly valued, which in some cases will result in larger depreciation estimates, especially for gas guzzlers. And the higher the depreciation, the higher the monthly lease payments, which in turn narrows the difference between monthly lease payments and loan payments, which aren’t affected by depreciation rates.

Does it make sense to lease?

The financial workings of leasing are so confusing that people don’t realize that leasing invariably costs more than an equivalent loan. And even if they did, the extra cost is difficult to calculate. Still, many people can’t afford the higher payments of a typical loan, at least not without putting a substantial amount down. If payments are an issue, consider buying a lower-cost vehicle or a reliable used car.

Opting for a longer-term loan of, for example, six years, could result in roughly the same low monthly payments as a three-year lease. But longer loans make it easier to get “upside down” on your loan, where you owe more than the vehicle is worth. So, if you decide to get rid of the car early on or if it’s destroyed or stolen—the trade-in, resale, or insurance value likely will be less than you still owe on the loan. Indeed, if you want to drive a new car every cou­ple of years, taking out a long-term loan but trading in early will leave you hav­ing paid so much in finance charges compared to principal, that you might as well have leased. If you can’t pay off the difference on an upside-down loan, you can often roll the amount you still owe into the new loan. You end up financing both the new car and the remainder of your old car.

If you decide on a long-term loan, hold on to the vehicle until it’s paid off. If low monthly payments and the opportunity to drive a new vehicle every few years with little hassle are worth the extra cost, consider leasing. Be sure, however, that you can live with all the limitations on mileage, wear and tear, vehicle modifications, and the like. Finally, keep in mind that you should be able to afford the lease for the entire period, since the early termin­ation penalties can be costly.