Terms Of Purchae (page 2)

If you plan to make a straight "cash" purchase, how do you plan on paying the cash?

• Will it be through a home equity line of credit?
• Are you securing the cash through your own bank or credit union?
• Do you have a vehicle for trade that you hoped would offset the price of your new vehicle?
• Maybe you just have the money! (congratulations)

X Factor: Dealer/Manufacturer incentives sometimes make it better to finance a vehicle than to pay cash for it. An AutoXcite representative would be happy to discuss the X factor of your purchase with you.

Will you do a lease or Balloon Payment Loan?

Either of these means of finance may be more advantageous to your situations.

• Some employers offer to pay all or a portion of your monthly payments, so leasing may be a better option than financing.
• Perhaps you tend to trade out of a car every 12-24 months, so again leasing may seem more practical.

• You are certain that you are buying the car at the end of the loan arrangement, so the Balloon Payment Loan may work out best.

X Factor: Vehicles are almost guaranteed to lose value. You should know what your vehicle will be worth when it comes time to be accountable for the residual value (at time of trade-in or end of lease term).

Leasing and Balloon Loans usually offer a lower monthly payment, which is usually a very attractive to anyone considering financing an auto purchase.

However, you should be aware of all the potential fees that may be applicable to your agreement due at signing and the completion of whatever loan arrangements made.

For Example:

• What are the penalties for going over the annual mileage allowance (10k, 12k, 15k a year)?
• Is a security deposit required or can it be waived at no penalty?
• What "Dealer Fees" specifically apply?
• What is the residual buy out at the end of Lease or Balloon Payment Loan?
• What money factor is applicable to your leasing?

There are always some little details to review regarding these types of loans. These same little details are often overlooked, as the monthly payments are usually the primary motivation for the purchase.

X Factor: Monthly Payment drives purchasing power...there are reasons to keep your monthly budget to yourself during the purchase process.

After you establish the "How" you are buying, you should also find out "Why" you need the new vehicle.