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Friday, December 20, 2019

Forgotten Tax Write-Offs: Don’t Miss Out on Money You Could Be Saving with Your New Work Truck



Buying a new truck has plenty of perks, but one of them is not taken advantage of nearly enough. If you use your truck for work purposes—and there is a wide range of what is considered a “work purpose”—you might be able to save a lot of money by way of tax write-offs.

The holiday season is the best time to purchase a new work truck. The savvy car-buyer knows that the end of year produces some pretty impressive deals, but this same buyer also knows that going for a new work truck has a hidden benefit as well—tax write-offs!

Why don’t more people write-off their work trucks? Confusion, most likely. Not so much in the process of making deductions, but confusion in what can be deducted and how to go about writing things off. Fortunately, the process of deducting your yearly taxes for mileage used is not difficult at all, just as long as you know what can be counted and where to file. At Liberty Buick GMC we are always looking out for our customers, even their taxes! So we did a little digging and have come up with a few key pieces of information for anyone looking to save a bit of cash come next tax season.
Let’s take a look at a few of the most common purposes for using a truck that can generate you some substantial financial returns.

Business Purposes
Though there is no compensation for driving from your home to your place of work, if you use your truck to drive from one job site to another, meet with clients, or even drive clients around, you are eligible for a write-off.

In order to deduct for business purposes, document your mileage on Schedule C if you are self-employed, and on Schedule F if you are a farmer—or, if you’re an employee, you can document as an unreimbursed business expense on Form 2106.

Medical Purposes
According to the IRS, driving to get medical attention for you or your dependents, as long as the drive is “primarily for, and essential to, medical care,” allows for a deduction that can be made on Schedule A of your tax form as part of your itemized medical expenses.

This is one deduction most people forget about or simply choose to ignore. But it’s easy to document, so why not?

Charitable Purposes
If you find yourself providing any type of service to a charitable organization, such as driving to perform volunteer work for a church, helping out with a charity, or volunteering at a local hospital, you can deduct driving expenses.

Simply document the deduction on Schedule A on your tax form as part of your charitable donations.

Making Deductions
Most people do not take advantage of work-truck write-offs because they don’t want to bother with the paperwork. But, after looking into the actual process of making deductions, there are only two options: use your actual expenses, or use a standard mileage rate.
If you want to deduct according to your actual expenses made, the following are what should be considered:
  • Parking fees and tolls
  • Vehicle loan interest
  • Vehicle registration fees
  • Personal property tax on the vehicle
  • Lease and rental expenses
  • Insurance
  • Fuel
  • Repairs—oil changes, tires, other routine maintenance

If you would rather use a simpler method, consider documenting according to the standard mileage rate. This rate varies depending on the year and reason(s) for driving your work truck, but you can get a significant amount of money back using this method.

The process is simple: take the number of miles you want to use as a write-off and multiply it by the applicable rate. Here are the rates for 2019:
  • Business Purposes=58 cents per mile.
  • Medical Purposes=20 cents per mile.
  • Charitable Services=14 cents per mile.
In addition to deducting for mileage, you can also deduct for parking fees and tolls under this option.

If you have a truck and you use it for any or all of the purposes listed above, definitely consider your deductions! It may not seem to be much in terms of savings at first, but it adds up quickly and can be done every year.

Thursday, November 21, 2019

Why the 2020 Buick Encore Will Be a Crowd-Pleaser This Black Friday


Black Friday season has arrived! Here at Liberty Buick GMC, we’ve got deals that are nothing short of amazing on a slew of brand-new models, including Buick’s flagship SUV—the 2020 Encore.

Buick and GMC marketing vice president, Phil Brook, said it best when he described the Buick Enclave as “everything [buyers] want in a premium crossover with its distinct styling, quality and driving dynamics.” It’s true. In a crowded midsize SUV class that includes the Enclave’s siblings—the Chevrolet Traverse and GMC Acadia—the Enclave is an attention-getter.

Since its design overhaul in 2018, however, the Buick Enclave has offered buyers much more than its sleek and subtle styling. The second-generation Enclave provides performance, comfort, safety, technology, and overall quality to rival any luxury crossover on the market. Yes, the three-row, seven-passenger Enclave makes for a superb family vehicle, but you don’t have to be toting around kids to appreciate its abundance of premium features.

The 2020 refresh of the Buick Enclave comes with several notable changes, such as significant tech upgrades and the new Touring Sport appearance package, among others. Simply put, it’s better than ever, and it just might be the perfect vehicle for you if you’re in the market for a got-it-all midsize SUV.

Let’s take a look at some of the most noteworthy qualities of the 2020 Buick Enclave and why you should consider making it your Black Friday purchase:

Just in for 2020
The newest Enclave receives a number of updates that set it apart from 2018 and 2019 models. First of all, there is some new technology. Buyers of the 2020 Enclave will get the next generation of Buick’s renowned infotainment system and an eight-inch IntelliLink touchscreen standard on all trim levels. Apple CarPlay, Android Auto, Wi-Fi hotspot, and six USB ports are still standard. Sirius XM/360L capability and navigation with traffic and weather alerts are still available as infotainment upgrades.

Coming standard on Premium and Avenir models are an HD Rear Vision Camera, HD Surround Vision, and a massage feature and four-way power-adjustable lumbar support for the front and passenger seats.

Also new for 2020 is the optional Sport Touring (ST) appearance package. This package is available on the Essence trim, and it features several exterior tweaks, such as a black mesh front grille, body-color grille surrounding, and 20-inch machined alloy wheels with contrasting graphite pockets. Overall, the ST package adds a little aggression and sportiness to the Enclave.

The 2020 Enclave Avenir has a body-color lower panel, which is sleeker than the black plastic panels on previous models. Also, three colors have been added to the list of Enclave exterior finishes. Avenir buyers can now get the Rich Garnet Metallic, while Champagne Gold Metallic and Dark Moon Blue Metallic are available for all trims.

Powertrain and Performance
The 2020 Buick Enclave is available in four trim levels: Preferred, Essence, Premium, and Avenir. All trims come standard with a 3.6-liter V6 engine that’s matched with a nine-speed transmission. Performance is not Buick’s primary goal for the Enclave, but the 310 hp and 266 lb-ft of torque produced by the engine are sufficient for passing moves and towing up to 5,000 pounds.

When it comes to the ride and handling, the 2020 Enclave is composed, comfortable and quiet. This is largely due to its responsive steering and brakes, as well as a suspension that provides a pleasant ride on smooth and rough terrain alike.


Interior
The 2020 Enclave’s cabin comes in impressive design. All and all, it looks simple yet sophisticated, and it’s unmistakably luxury. The wood-grain/metal trimmings, asymmetrical vents, and easy-to-access controls help in that regard. Also, the seats are really, really comfortable, and the Enclave’s cabin is among the top of the class in spaciousness. Plus, with a Pitch Slide seat in the second row and 60/40 folding seats in the third row, even more space opens up for cargo.


Safety

The National Highway Traffic Safety Administration (NHTSA) gave the 2020 Buick Enclave five out of five stars in crash-test ratings. It comes standard with a rearview mirror camera, and you can opt for automatic emergency braking with pedestrian detection, lane-keep assist with lane departure warning, adaptive cruise control, and automatic high-beam headlights.

There are plenty of incredible deals to be found at Liberty Buick GMC this Black Friday. If you’re looking for a midsize SUV that comfortably fits seven, looks distinguished inside and out, and has tons of features, the 2020 Buick Enclave could be the one for you. Be sure to come by our dealership to see the deals for yourself and take a test drive!

Monday, November 11, 2019

Black Friday Meets an Already-Cost-Effective 2020 GMC Terrain



The day after Thanksgiving is well known for attracting droves of American shoppers to retail stores. Considered to be the kickoff to the holiday season, Black Friday now spans over virtually all sectors of retail, and you can find deals on anything from electronics and toys to musical instruments and clothing. And with the prominence of online shopping, a single-day event has gradually turned into an entire weekend of sales that extend well into Cyber Monday.

However, retail isn’t the only industry that participates in Black Friday. Did you know that a significant number of shoppers look elsewhere for their deals in late November? Over the last decade or so, these heightened shopping trends have spilled over into the automotive market, with dealerships everywhere offering steep discounts on much—if not all—of their models.
This competition among manufacturers and dealerships creates a great opportunity for people who are in the market for a new vehicle. In fact, you can find some of the best car deals of the year throughout most of November.
Here at Liberty Buick GMC, we’re not holding back on the discounts and incentives this November. We’ve got deals going for tons of brand-new models, and we would love for you to come by and see for yourself. Actually, we’ve got one of the most cost-effective vehicles on the market in stock—the 2020 GMC Terrain. And with additional discounts available, you would be hard-pressed to find another vehicle that offers you this kind of bang for your buck.

What makes the 2020 GMC Terrain so cost-effective? We’ll discuss that here, along with many other characteristics of the one-of-a-kind SUV:

Overview of the 2020 GMC Terrain 
The 2020 GMC Terrain is in a crowded class of compact SUVs. Competition is fierce from popular models like the Honda CR-V, Mazda CX-5, Volkswagen Tiguan, and Toyota RAV4; yet, the Terrain holds its own and offers buyers several characteristics not found in other vehicles.
Some describe it as a more upscale version of its sibling—the Chevrolet Equinox. But the Terrain is more than that; it’s an SUV that sets itself apart from the rest of the class with everything from its standard safety features to its attractive design to its tech options. Oh, and its fuel efficiency, among other things, makes it one of the most cost-effective vehicles you can buy today.
The Terrain still comes in four different trims (SL, SLE, SLT, and Denali), but GMC has made some notable changes to the vehicle for 2020. Along with tweaking a few features here and there, the all-wheel-drive models are no longer available with a diesel engine. However, buyers can still opt for a diesel engine on the front-wheel-drive versions of the SLE and SLT trims. Most appealing, perhaps, are the changes to its standard safety features. In recent years, features such as automatic high-beam lights, automatic emergency braking, forward-collision alert, and lane-keep assistance were optional; now, they come stock.

Let’s get into some of the details of what makes the 2020 GMC Terrain so special:

A Distinct Exterior 
The Terrain is a great-looking vehicle. As far as shape and size go, it does share some similarities with the Equinox. However, the Terrain has a distinct design that won’t be mistaken for any other vehicle. It looks refined and unquestionably luxurious with a graceful blend of sharp and rounded character lines, C-shape LED lighting, and squared-off grille. Its overall appearance is attention-getting yet easy to the palate.
There are nine colors available for the 2020 Terrain:
  • Smokey Quartz Metallic
  • Graphite Gray Metallic
  • Ebony Twilight Metallic
  • Red Quartz Tintcoat
  • Summit White
  • Satin Steel Metallic
  • Blue Emerald Metallic
  • Quicksilver Metallic
  • White Frost Tricoat

Buyers who are looking for a more aggressive exterior should consider the Elevation Edition, which is available with the Graphite Gray Metallic, Ebony Twilight Metallic, Summit White, and Satin Steel Metallic colors. The Elevation Edition Terrain features a darkened grille, black roof rails and mirror caps, black exterior accents and trim badging, and 19” gloss-black aluminum wheels.

A Handsome and Functional Interior 
Like other GMC models, the 2020 Terrain has got it going on in the interior. It comfortably seats five (with impressive legroom in the back row), and there’s ample space for cargo; actually, it’s among the top of the class in terms of cargo space. Much of this is due to 60/40 split-folding rear seats and an optional fold-flat front seat. With the back seats up, there are 29.6 cubic feet of cargo space behind the back row, and that space grows to 63.3 cubic feet when you fold down the back seats. Fold down the front passenger seat, and you can fit objects as long as eight feet in the vehicle.
The interior of the 2020 Terrain also looks really good. The cabin is nothing less than what you would expect from a luxury vehicle, with high-quality design and materials throughout, especially in the SLT and Denali trims. All trims come standard with aluminum trim and a leather-wrapped steering wheel.
Whether you opt for cloth or leather upholstery, the seat cushioning is sufficient, and you can increase comfort with features like advanced heated seats (which allow you to heat both the bottom and back cushion or only the bottom cushion) and power-adjustable seats.

Lots of Standard Safety Features 
Though the 2020 Terrain comes wrapped in arresting style, one of its most impressive characteristics is how safe it is. It’s arguably as safe as any compact SUV on the market, and GMC added tons of standard safety features to the Terrain in 2020. General Motors calls the new package of active safety technology “Pro Safety,” and it comes on all four trims of the Terrain.
The Pro Safety suite includes automatic high-beam lights (IntelliBeam headlamps), automatic emergency braking, forward-collision alert, lane-keep assistance, lane departure warning, following distance indicator, and front pedestrian braking.

There are also plenty of other safety features buyers can add by opting for the Driver Alert package. These features include:

Lane Change Alert with Side Blind Zone Alert
The main purpose of this feature is to help you prevent side-swiping and other types of accidents. Whenever you’re about to change lanes—or are in the midst of changing lanes—lights on your side mirrors alert you if there’s a vehicle in or quickly approaching your blind spot.

Rear Cross-Traffic Alert
This comes into play when you are reversing your vehicle, especially in parking lots. If there’s a vehicle approaching your vicinity (left or right), you will see an indicator symbol on your rear vision camera screen. Rear cross-traffic is detected through radar sensors on the back of the Terrain.

Adaptive Cruise Control
This technology uses cameras to automatically adapt your vehicle’s cruise control speed to keep a safe distance between you and the vehicles ahead of you. In short, it makes cruise control even safer and more convenient.

Front and Rear Park Assist
This feature also uses radar sensors to help drivers in parking lots. When you’re driving at low speeds and trying to park, the feature will give you distance alerts to nearby vehicles and objects so that you can safely park.

Safety Alert Seat
The Safety Alert Seat is one of the cooler safety features offered on the 2020 Terrain. In essence, it allows you to replace crash avoidance beeps with vibration pulses on the bottom of the driver’s seat.

Teen Driver System 
This feature was created to help teenage drivers develop safe driving habits. When it’s set up, you can activate Teen Driver mode with your key fob. So, if you have a teen driver in your family, the vehicle will provide advice and feedback throughout the driving experience, and it will even produce a report card. Furthermore, you can control which vehicle features are available and which cannot be turned off during Teen Driver mode.
It’s also worth noting the conventional safety features that buyers will find on the new Terrain:
  • Driver, Passenger, Front Head, Rear Head, and Front Side Airbags
  • Electronic Stability Control
  • Traction Control
  • Anti-Lock Brake System
  • Daytime Running Lights

Top-Notch Crash Test Results 
The safety doesn't end with the features when it comes to the 2020 GMC Terrain, as it received top marks for almost every category. The National Highway Traffic Safety Administration (NHTSA) gave it a five-star overall rating (out of five), as well as five stars in the front and side crash tests. Its only imperfect score was four stars in the rollover test, but it was evaluated to have only an 18.5% rollover risk.
The Insurance Institute for Highway Safety (IIHS) has yet to evaluate the 2020 Terrain, but the 2019 model was given a “Good” (the highest rating) in all tests administered.

Great Fuel Efficiency
One of the main reasons why the 2020 GMC Terrain is such a cost-effective vehicle is that it gets great gas mileage. Buyers have a choice between two four-cylinder engines: a 1.5-liter good for 170 hp and 203 lb-ft of torque, and a 2.0-liter that produces 252 hp and 260 lb-ft of torque. Both of the engines are turbocharged and matched with a nine-speed automatic transmission.
The 1.5-liter engine provides 30 MPG highway, 26 MPG city, and 28 MPG combined, while the 2.0-liter gives you 28 MPG highway, 22 MPG city, and 24 MPG combined.

Trims and Prices 
As previously mentioned, the 2020 GMC Terrain is available in four trim levels: SL, SLE, SLT, and Denali. Let’s discuss some of the main features and prices involved with each one:

The SL
The SL is the Terrain’s base model, and it starts at $25,000 MSRP. For a base model, the Terrain SL comes with a lot of features. Safety-wise, it includes front pedestrian braking, forward-collision warning, and automatic emergency braking, all of which are new to this year’s model. It comes with many other safety features as well, such as a rear-view camera system, automatic high-beams, lane-keep assistance, lane departure warning, following distance indicator, and GMC’s Teen Driver system.
Technology-wise, the Terrain SL includes a six-speaker audio system, 7” touchscreen, Apple CarPlay and Android Auto, Bluetooth connectivity, WiFi hotspot, four USB ports, proximity keyless entry, and push-button start. Oh, and it throws in a leather-wrapped steering wheel for good measure.

The SLE
Going up to the Terrain SLE, the price starts at $28,400. There aren’t a lot of added standard features. However, this is where the buyers are eligible for a slew of upgrade packages, including upgrades to styling, seating, the infotainment system, and safety.

The SLT
The SLT comes in at $31,200 and has several notable standard features. First of all, leather seats and remote start come stock. Also standard is dual-zone automatic climate control, power-adjustable driver’s seat, and heated front seats. Buyers of the SLT will also get a bigger touchscreen, along with other infotainment upgrades, and satellite radio capability.

The Denali
Like other GMC models, the Denali is the most luxurious trim of the Terrain. Starting at $38,300, this trim comes stock with the 2.0-liter turbocharged engine, a heated steering wheel, powered front seats (both), and a hands-free liftgate.
This is also the trim that provides the most safety features, with additions like lane change alert with side blind zone alert, front and rear park assist, rear cross-traffic alert, and safety alert seat. Moreover, buyers of the Terrain Denali will get a seven-speaker Bose audio system, HD radio, and navigation.

If you’re looking for a great all-around SUV that makes sense economically, look no further than the 2020 GMC Terrain. And be sure to come by Liberty Buick GMC during our Black Friday sales event. We guarantee we’ll have the best deals you can find on all-new GMC models. We look forward to seeing you!

Friday, November 1, 2019

Liberty Buick-GMC: A Reason to Get Stuck in Charlotte Traffic



If you have to spend endless hours in Charlotte traffic, it might as well be in a luxury Buick—hey, you might end up finding the standstill bearable, maybe even an enjoyable escape from the grind.

It’s no secret the traffic in and around Charlotte is intensifying, but that doesn’t mean you have to suffer through it. Sure, nobody likes sitting in a line and watching stoplights going from green to red over and over again. Getting caught in continual traffic congestion is reason enough to move up in levels of comfort, aesthetic, and technology. At Liberty Buick-GMC, we have the next level of luxury you are looking for.

For instance, imagine driving down Independence Blvd. during five-o’clock traffic when you come to a complete stop with nothing but brake lights in your immediate future. The normal reaction is to be frustrated and a bit stressed, but not today. Today you are driving the 2020 Buick Enclave, which sports new and improved performance, a fresh new look, and high levels of luxury.

This luxurious SUV comes with Buick’s next generation of infotainment: an 8-inch diagonal touchscreen that offers connected navigation and Sirius XM with 360L (a system that combines satellite and streaming in order to offer more channels and content to all passengers), plus much more to keep you occupied while sitting in traffic.

Plus there’s the HD Rear Vision Camera and HD Surround Vision Systems to keep you alert at all times on the situation around you.

And for those extra congested times, the new Enclave has a four-way power lumbar seat adjuster that offers both driver and passenger back massages. Now, this is a reason to get stuck in traffic.

Traffic may be getting intense here in Charlotte, but at Liberty Buick-GMC we have found the best way to bypass it all: by joining it in with a luxury vehicle and enjoying every relaxing minute of it. Bring on the traffic!

Monday, October 21, 2019

Leasing vs. Buying a Car: Pros, Cons, and Tips for Getting Your Next Ride



Are you in the market for a new vehicle? Chances are you’ve heard about leasing a car, which has become the mainstream alternative to purchasing a car. 

Generally speaking, using a conventional car loan to buy a car means that you borrow from a lender and make monthly payments each month for a certain number of years. Most of each payment goes toward the principal as you build equity, while a remaining portion is reserved for interest. You technically own the car, and you can make any modifications to it that you wish. Once the principal is paid down and your equity is built, you own the car free and clear—meaning your debt to the lender is fulfilled.
When you lease a car, you basically pay the value that the car depreciates, which means your monthly payments are cheaper. However, you never own the car unless you agree to buy it at the end of the lease, which means there are restrictions and potential fees associated with driving the car.
Leasing is becoming increasingly popular among Americans, and in 2018, about 30% of consumers opted to lease a car rather than buy one. Just like renting or purchasing a home, there are advantages and disadvantages either way you go.

LEASING—PROS AND CONS
So, let’s start with the pros and cons involved with leasing a vehicle:

Pros of Leasing
When it comes to upfront costs, leasing a car is significantly less expensive. Since you’re not paying on any principal, the monthly payments are lower than if you were paying a lending company. You’re basically borrowing the car, and whatever value the car depreciates while you drive it is what you pay each month (in addition to finance charges).
Lower payments provide the opportunity to drive a newer, nicer vehicle, and driving newer vehicles usually means you will experience less car trouble. Also, since you’re always driving a newer vehicle, it’s likely you will qualify for free maintenance and oil changes under the manufacturer’s warranty.
There are also conveniences with leasing a car. For instance, you don’t have to concern yourself with the vehicle’s trade-in value, especially if you don’t plan on buying it from the dealer after the lease is through. And when the time comes, you don’t have to worry about selling the vehicle, which can be a laborious process. When the lease ends, you simply leave the vehicle with the dealer. Moreover, there may be tax benefits to leasing a car, particularly if you are self-employed or you own a business.

Cons of Leasing
You may see now why leasing is appealing to so many people. However, there are plenty of disadvantages that come with it as well.
In the long run, you will probably end up paying more if you lease a car instead of buying one. This is mainly because vehicles depreciate at such a fast rate. Therefore, if you keep leasing car after car, your monthly payments never end and you never own a car.
There are also restrictions and potential fees to consider when leasing. For example, lease contracts limit the number of miles you can put on the vehicle. Sure, you can go over that limit, but you will pay anywhere between 10 cents and 50 cents for every extra mile. And if you drive under your mileage limit, those miles don’t roll over.
Furthermore, you can’t really make any modifications to a vehicle you lease. Some dealers will agree to professional window tinting and maybe a few other exceptions. For the most part, however, you’re expected to return the vehicle stock. Technically, you can make modifications as long as you undo them before bringing the vehicle back. But if you decide to remove that emblem or badge, and it leaves a blemish when you put it back on, you could face some hefty fees.
Modifications aside, you have to return the vehicle in good condition. If the vehicle has excessive dings and scratches—anything beyond normal wear and tear—you can expect to pay additional fees. And those who decide to terminate their lease before the contract ends will face significant charges.

The Bottom Line 
Leasing a car is cheaper up front, which means you can drive a more expensive car than you could otherwise afford. Also, leasing often comes with free maintenance, and it’s a fairly straightforward process—you use the car and bring it back, without having to worry about selling it. However, leasing costs more money long-term, and there are a lot of restrictions and fees to consider.

BUYING — PROS AND CONS
By now you probably have a decent idea of some of the pros and cons involved with buying a car, but let’s expand on them a little bit:

Pros of Buying 
Over time, buying a car is a better investment because you’re paying to own the car. The longer you drive a vehicle after it’s paid off, the more value you get out of it. So, in the grand scheme of things, the least expensive way to drive a vehicle is to buy one and drive it until it quits.
Also, when you buy a vehicle, there are no additional fees or penalties to worry about. You can make modifications to the vehicle, and you can drive it as much as you want. Plus, you always have the option of selling the car, or you can even trade it in to lower the price of your next car.

Cons of Buying 
Though you’re working toward owning a car outright when you purchase it, you still have steeper monthly payments, since you’re paying both principal and interest. And in order to avoid owing more than the vehicle is worth (going upside down in the loan), your down payment will usually be significantly higher. Plus, a manufacturer warranty typically lasts about three years, and you are responsible for all repair and maintenance costs after that.
Additionally, the flexibility to trade-in or sell your vehicle whenever you want is nice. However, neither of these is an easy task. Each is often a long, drawn-out process that can be stressful if not overwhelming.

The Bottom Line
If you’re focused on the long-term, buying a car is your best option. Not only is it cheaper, but you won’t have to deal with the restrictions and penalties that come with leasing a car. Also, you have the flexibility to trade-in or sell your vehicle whenever you want. However, your monthly payments will be higher, you’ll have to pay for maintenance and repairs, and trading-in or selling the vehicle is often tedious.

WHY THE TIME OF YEAR MATTERS
If you’re considering leasing a vehicle, it’s important to understand that when you lease the car can make a difference in how much you pay. Similar to purchasing a car, there are specific times of the year when you can get good deals on a lease.
A lot of dealerships have targets and bonuses for making a certain number of sales by the end of each month and year. So, if you walk into a dealership at the end of the month, there’s a good chance that someone will lower the price to sell a lease in order to hit their target for the month. Your chances are even better if you go in for a lease as the year is coming to a close, because more employees are likely to be scrambling to hit a milestone so they can receive their year-end bonuses.
Another common time of year to get good deals is during model changes. Manufacturers often release their new models in late summer or early fall, and if you’re fine with driving last year’s model, you may be able to get a great lease deal when the newer models hit the market. This is primarily because dealerships are eager to make room for the new models, meaning they are more likely to offer lease incentives on the older ones.
Then there are the holiday sales, which you’ve probably seen advertised on TV. Particularly around Christmas, Memorial Day, Independence Day, and Labor Day, you can often score some deep discounts on a lease. However, be sure to look at the fine print, because these promotions often come with stipulations.
Finally, you can also get lucky if a dealership is experiencing slow business or is having trouble selling a specific model. In sum, try to shop for a lease at the end of the month or year, during a holiday promotion, or when business appears to be slow.

IF YOU DECIDE TO LEASE        
If leasing sounds like the right thing for your situation, make sure you understand how it works before you walk into the dealership.
To gauge your probability of being approved for a lease, check your credit score with one of three major credit bureaus (Experian, TransUnion, Equifax). If you want to be extra thorough, get a report from all three, and make sure any inconsistencies are sorted out. Some leasing companies will only approve customers with a 700 or higher. Even if you get approved with a lower credit score, however, your interest rates are likely to be higher.
Also, go through your budget to determine how much you can afford for monthly payments. Generally speaking, you never want your lease payment to exceed 15% of your monthly net pay. And you will also need to factor in costs like insurance and gas.

IF YOU DECIDE TO BUY            
As with leasing a car, you will need to determine your budget before buying a car. Follow the 15% rule for your car loan, and be sure to consider additional costs like insurance, gas, sales tax, vehicle registration, routine maintenance, and unexpected repairs. Determine a number for how much you can spend on a vehicle, and consider purchasing one that’s a little less expensive than that number.
Unless you know the exact model you want, research different vehicles to find a few that could meet your needs. Along with learning more information about models you’re interested in, you can look at MSRPs and see how much they’re going for at different dealerships. That way, you can estimate a fair price and set your limit on what you’re willing to spend when you’re negotiating with dealers.
Once you’ve done your research, call a dealership to set up a test drive. Research is important, but actually getting behind the wheel is often what convinces a buyer whether that particular vehicle is the one or not. After a test drive, you’ll be ready to talk prices, start the trade-in/sale process of your current vehicle, close the deal, and drive off in your new ride!
Leasing and buying a vehicle both have their pros and cons. If cheaper monthly payments and driving a new car every few years is the most important thing to you, then leasing is probably your best option. If you care more about making a long-term investment and having no monthly payments one day, then you’re likely better off to purchase a vehicle.
Just make sure you understand the differences between leasing and buying a car, and either way, come up with a plan before you walk into the dealership.

- Alex Watson